Transcat Reports 180% Increase In Net Income On 13% Growth In Net Revenue For The Second Quarter Of Fiscal 2011
Transcat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a leading distributor of professional grade handheld test and measurement instruments and accredited provider of calibration, repair and weighing system services, today reported financial results for its fiscal 2011 second quarter ended September 25, 2010. Reported results include those of United Scale & Engineering Corporation (“United”), a Wisconsin-based supplier and servicer of industrial scales and weighing systems, which the Company acquired on January 27, 2010.
Net revenue in the second quarter of fiscal 2011 was $20.9 million, an increase of 13.1%, or $2.4 million compared with net revenue of $18.5 million in the second quarter of fiscal 2010. The United acquisition contributed $0.9 million to net revenue for the second quarter of fiscal 2011. Service segment net revenue, which represented 35.6% of total net revenue, increased 14.1% to $7.4 million in the second quarter of fiscal 2011, compared with $6.5 million in the prior year second quarter. Product segment net sales, representing the Company’s distribution business, were $13.5 million for the second quarter of fiscal 2011, an increase of $1.5 million, or 12.5%, compared with $12.0 million in the same period of the prior fiscal year.
Net income was $0.5 million, or $0.07 per diluted share, in the second quarter of fiscal 2011, up 180.3%, or $0.3 million, from net income of $0.2 million, or $0.02 per diluted share, in the same period of the prior fiscal year.
Charles P. Hadeed, President, CEO and COO of Transcat, commented, “We believe our improving business trend is a direct reflection of not just a moderately improving economy, but more our ability to build our calibration business while expanding our customer base and deepening our customer relationships in our products distribution business. With $20.9 million in total net revenue we have achieved four consecutive quarters of record-breaking revenue. Additionally, the measurable leverage in our business was apparent as 8.3% organic net revenue growth was the driver of the 250 basis point expansion of our operating margin.”
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