Transcat Q1 2023 Earnings Report
Key Takeaways
Transcat reported a strong start to fiscal year 2023, with a 14.4% increase in consolidated revenue to $54.7 million. Service segment revenue grew by 23%, and the distribution segment increased by 2.7%. The company's adjusted EBITDA rose by 20% to $7.3 million.
Service segment revenue increased by 23% due to strong demand in regulated end markets and recent acquisitions.
Organic revenue growth was 9%, driven by new client-based lab implementations.
Distribution segment revenue increased by 2.7% despite supply chain constraints, with backlog reaching a record $9.0 million.
Adjusted EBITDA increased by 20% to $7.3 million, driven by strong performance in both operating segments.
Transcat
Transcat
Transcat Revenue by Segment
Forward Guidance
Transcat expects organic Service revenue growth in the high-single digit range and gross margin improvement to continue. The company expects its income tax rate to range between 22% and 24% in fiscal 2023.