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Transcat Inc. (TRNS-3.27%) has submitted its 10-Q filing for the quarterly period ended December 28, 2024.
The filing reports a total revenue of $66.8 million, marking a 2.4% increase compared to the same period in the previous year. This increase is attributed primarily to acquisitions, contributing $3.7 million in revenue, while organic revenue saw a decrease of 3.9%.
Service revenue accounted for 62.3% of total revenue, showing a marginal increase of 0.1% from the previous year, driven by acquisitions. In contrast, distribution revenue increased by 6.5%, supported by acquisitions and enhanced rental revenue.
Gross profit for the quarter was $19.7 million, a decrease of 6.0% from the previous year. The gross margin declined by 260 basis points to 29.5%, influenced by reduced organic revenue and lower margins from certain service channels.
Operating expenses rose to $17.6 million, up by 5.6% from the previous year, due to acquisition-related costs and investments in technology. Operating income was reported at $2.1 million, a 51.1% decrease from the previous year.
Net income for the quarter was $2.4 million, down from $3.3 million in the previous year, primarily due to lower operating income.
Cash provided by operating activities totaled $28.4 million for the nine months ended December 28, 2024, compared to $26.9 million in the previous year. The increase was driven by changes in net working capital.
Investing activities included $86.1 million used for acquisitions, while financing activities saw a net increase in debt of $39.5 million.
Transcat's leverage ratio was 0.97 as of December 28, 2024, with $39.5 million outstanding under its revolving credit facility. The company was in compliance with all loan covenants during the period.
Transcat anticipates mid-to-low single-digit organic revenue growth for fiscal year 2025, with expectations of returning to historic growth levels in fiscal year 2026.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Transcat Inc. quarterly 10-Q report dated February 5, 2025. To report an error, please email earnings@qz.com.