Transcat Reports Nearly 16% Revenue Growth for Fiscal 2020 First Quarter

23 Jul by Vitaliy Dadalyan

Transcat Reports Nearly 16% Revenue Growth for Fiscal 2020 First Quarter

  • Consolidated revenue grew 15.7% to a first quarter record of $42.4 million, driven by double-digit organic growth
  • Transcat continued to take market share in regulated markets with Service segment organic revenue growth of 11.9%
  • Achieved net income of $1.7 million, or $0.23 per diluted share
  • Acquired calibration automation software company last week to accelerate operational excellence initiatives

 

ROCHESTER, N.Y.–(BUSINESS WIRE)–Transcat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a leading provider of accredited calibration, repair, inspection and laboratory instrument services and value-added distributor of professional grade handheld test, measurement and control instrumentation, today reported financial results for its first quarter ended June 29, 2019 (the “first quarter”) of fiscal year 2020, which ends March 28, 2020 (“fiscal 2020”). Results include the previously-reported acquisitions of Angel’s Instrumentation, Inc (“Angel’s”), effective as of August 31, 2018 and Gauge Repair Service (“GRS”), effective April 1, 2019.

“Our first quarter double-digit organic growth validates the successful execution of our growth strategy. We believe our investment in growth is gaining us greater market share although also constricting margin expansion as we continue to hire new technicians who need mentoring and training to achieve full productivity levels. Our operational excellence initiatives, combined with automation initiatives provided by our acquisition last week of Infinite Integral Solutions Inc. (“IIS”), are expected to help offset this impact. We believe in our plan and are intent upon improving our margin profile, but believe that expanding our market position is paramount,” commented Lee D. Rudow, President and CEO.

Mr. Rudow added, “Our acquisition of IIS is a unique opportunity to own technology that is expected to advance our Service segment efficiencies and aid productivity improvement throughout our lab network by automating a number of calibration disciplines.”

First Quarter Fiscal 2020 Review (Results are compared with the first quarter of the fiscal year ended March 30, 2019 (“fiscal 2019”))

($ in thousands)

 

 

 

 

Change

FY20 Q1

 

FY19 Q1

 

$’s

 

%

Service Revenue

$

22,398

 

 

$

19,325

 

 

$

3,073

 

 

15.9

%

Distribution Sales

 

19,997

 

 

 

17,333

 

 

 

2,664

 

 

15.4

%

Revenue

$

42,395

 

 

$

36,658

 

 

$

5,737

 

 

15.7

%

Gross Profit

$

10,052

 

 

$

9,113

 

 

$

939

 

 

10.3

%

Gross Margin

 

23.7

%

 

 

24.9

%

 

 

 

 

 

 

 

 

 

 

 

Operating Income

$

1,958

 

 

$

2,025

 

 

$

(67

)

 

(3.3

%)

Operating Margin

 

4.6

%

 

 

5.5

%

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

1,718

 

 

$

1,428

 

 

$

290

 

 

20.3

%

Net Margin

 

4.1

%

 

 

3.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

$

3,942

 

 

$

3,842

 

 

$

100

 

 

2.6

%

Adjusted EBITDA* Margin

 

9.3

%

 

 

10.5

%

 

 

 

 

*See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the Adjusted EBITDA Reconciliation table.

Transcat achieved record first quarter fiscal 2020 revenue of $42.4 million, up 15.7%. Excluding acquired revenue, organic revenue growth was 13.1%. Gross margin reflected continued investments to support the strong Service revenue growth and product mix changes within Distribution. As a percentage of revenue, consolidated operating expenses were 19.1%, down 20 basis points. Included in operating expenses was a $0.2 million loss on the sale of a Company-owned building in Montana that was no longer needed for operations. The Company owns no other real estate. Net income grew 20.3% and fully diluted earnings per share increased to $0.23 from $0.19. The growth in net income was aided by the discrete income tax accounting required for share-based awards that were greater than expected, largely from pre-tax income being lower than anticipated, and the stock option exercise by a Company officer in conjunction with his departure in the first quarter.

Service segment shows significant revenue growth

Represents the accredited calibration, repair, inspection and laboratory instrument services business (53% of total revenue for the first quarter of fiscal 2020).

($ in thousands)

 

 

 

 

Change

FY20 Q1

 

FY19 Q1

 

$’s

 

%

 

 

 

 

 

 

 

 

Service Segment Revenue

$

22,398

 

 

$

19,325

 

 

$

3,073

 

 

15.9

%

Gross Profit

$

5,372

 

 

$

4,919

 

 

$

453

 

 

9.2

%

Gross Margin

 

24.0

%

 

 

25.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

$

738

 

 

$

1,068

 

 

$

(330

)

 

(30.9

%)

Operating Margin

 

3.3

%

 

 

5.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

$

2,147

 

 

$

2,390

 

 

$

(243

)

 

(10.2

%)

Adjusted EBITDA* Margin

 

9.6

%

 

 

12.4

%

 

 

 

 

*See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the Adjusted EBITDA Reconciliation table.

Service revenue increased 15.9% to $22.4 million, inclusive of acquired revenue from Angel’s. Organic Service revenue growth was 11.9% in the first quarter, reflecting new business from the highly-regulated life sciences market and growth in other regulated sectors. On a trailing twelve-month basis, Service segment revenue was $87.1 million, up 11.3% when compared with the trailing twelve-month period ending with the prior-fiscal year first quarter.

While improvements are being made, the segment gross margin was still impacted by strong revenue growth, largely from the need to continue to recruit, on-board and develop new hires into fully-productive technicians. Productivity initiatives associated with process improvement and automation are expected to help combat these margin pressures over time.

Distribution segment shows improved sales and operating margin

Represents the sale and rental of new and used professional grade handheld test, measurement and control instrumentation (47% of total revenue for the first quarter of fiscal 2020).

($ in thousands)

 

 

 

 

Change

FY20 Q1

 

FY19 Q1

 

$’s

 

%

Distribution Segment Sales

$

19,997

 

 

$

17,333

 

 

$

2,664

 

15.4

%

Gross Profit

$

4,680

 

 

$

4,194

 

 

$

486

 

11.6

%

Gross Margin

 

23.4

%

 

 

24.2

%

 

 

 

 

 

 

 

 

 

 

Operating Income

$

1,220

 

 

$

957

 

 

$

263

 

27.5

%

Operating Margin

 

6.1

%

 

 

5.5

%

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

$

1,795

 

 

$

1,452

 

 

$

343

 

23.6

%

Adjusted EBITDA* Margin

 

9.0

%

 

 

8.4

%

 

 

 

 

*See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the Adjusted EBITDA Reconciliation table.

Distribution sales increased 15.4% to $20.0 million, and were driven by solid demand in all channels, especially in the alternative energy sector and equipment rental business, which grew 34.4% to $1.2 million.

Strong Balance Sheet to Support Growth Strategy

At June 29, 2019, the Company had total debt of $22.4 million, with $21.7 million available for borrowing under its secured revolving credit facility. The Company’s leverage ratio, as defined in its credit agreement, was 1.22 at June 29, 2019, compared with 1.12 at fiscal 2019 year-end.

Capital expenditures were $1.4 million for the first quarter of fiscal 2020, with investments focused on customer-driven expansion of Service segment capabilities and the Company’s rental business.

Outlook

Mr. Rudow concluded, “All signs point to continued strength on the Service revenue front as our pipelines for new business and acquisitions remain robust. We still expect our operational excellence initiatives to benefit gross and operating margins during this fiscal year, and certainly more so over the long term.

“While we saw strong Distribution sales growth in the first quarter, a good portion was from the alternative energy sector and sales of used equipment, both of which can vary quarter-to-quarter.”

Transcat slightly adjusted its expected income tax rate for full year fiscal 2020 down to 21% to 22% from the previously provided range of 22% to 23%.

The Company’s expected capital expenditure plan for fiscal 2020 remains in the $7.8 million to $8.2 million range. Capital investments are expected to be primarily focused on technology infrastructure to drive operational excellence and organic growth opportunities within both operating segments, and for rental pool assets.

Webcast and Conference Call

Transcat will host a conference call and webcast on Wednesday, July 24, 2019 at 11:00 a.m. ET. Management will review the financial and operating results for the first quarter, as well as the Company’s strategy and outlook. A question and answer session will follow the formal discussion. The review will be accompanied by a slide presentation, which will be available at www.transcat.com/investor-relations. The conference call can be accessed by calling (201) 689-8471. Alternatively, the webcast can be monitored at www.transcat.com/investor-relations.

A telephonic replay will be available from 2:00 p.m. ET on the day of the call until Wednesday, July 31, 2019. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13691912, or access the webcast replay at www.transcat.com/investor-relations, where a transcript will be posted once available.

NOTE 1 – Non-GAAP Financial Measures

In addition to reporting net income, a U.S. generally accepted accounting principle (“GAAP”) measure, we present Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, non-cash stock-based compensation expense, and non-cash loss on sale of building), which is a non-GAAP measure. The Company’s management believes Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the performance of its core operations from period to period by removing the impact of the capital structure (interest), tangible and intangible asset base (depreciation and amortization), taxes, and stock-based compensation expense, which is not always commensurate with the reporting period in which it is included. As such, the Company uses Adjusted EBITDA as a measure of performance when evaluating its business segments and as a basis for planning and forecasting. Adjusted EBITDA is not a measure of financial performance under GAAP and is not calculated through the application of GAAP. As such, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. Adjusted EBITDA, as presented, may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. See the attached Adjusted EBITDA Reconciliation table on page 9.

ABOUT TRANSCAT

Transcat, Inc. is a leading provider of accredited calibration, repair, inspection and laboratory instrument services. The Company is focused on providing best-in-class services and products to highly regulated industries, including life science, aerospace and defense, pharmaceutical, medical device manufacturing and biotechnology. Transcat provides permanent and periodic on-site services, mobile calibration services and in-house services through 21 Calibration Service Centers strategically located across the United States, Puerto Rico and Canada. The breadth and depth of measurement parameters addressed by Transcat’s ISO/IEC 17025 scopes of accreditation are believed to be the best in the industry.

Transcat also operates as a leading value-added distributor that markets, sells and rents new and used national and proprietary brand instruments to customers primarily in North America. The Company believes its combined Service and Distribution segment offerings, experience, technical expertise and integrity create a unique and compelling value proposition for its customers.

Transcat’s growth strategy is to leverage the complementary nature of its two operating segments, its comprehensive service capabilities, strong brand, enhanced e-commerce capabilities and leading distribution platform to drive organic sales growth. The Company will also look to expand its addressable calibration market through acquisitions and capability investments to further realize its inherent leverage of its business model.

More information about Transcat can be found at: Transcat.com.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact and thus are subject to risks, uncertainties and assumptions. Forward-looking statements are identified by words such as “expects,” “estimates,” “projects,” “anticipates,” “believes,” “could,” and other similar words. All statements addressing operating performance, events or developments that Transcat, Inc. expects or anticipates will occur in the future, including but not limited to statements relating to anticipated revenue, profit margins, the commercialization of software products, sales operations, capital expenditures, cash flows, operating income, growth strategy, segment growth, potential acquisitions, integration of acquired businesses, market position, customer preferences, outlook and changes in market conditions in the industries in which Transcat operates are forward-looking statements. Forward-looking statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Transcat’s Annual Report and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should any of the Company’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company’s forward-looking statements. Except as required by law, the Company disclaims any obligation to update, correct or publicly announce any revisions to any of the forward-looking statements contained in this news release.

FINANCIAL TABLES FOLLOW.

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts)

 

(Unaudited)

First Quarter Ended

 

 

 

June 29,

 

 

June 30,

 

 

 

 

2019

 

 

 

 

2018

Service Revenue

$

22,398

 

$

19,325

Distribution Sales

 

19,997

 

 

17,333

Total Revenue

 

42,395

 

 

36,658

 

Cost of Service Revenue

 

17,026

 

 

14,406

Cost of Distribution Sales

 

15,317

 

 

13,139

Total Cost of Revenue

 

32,343

 

 

27,545

 

Gross Profit

 

10,052

 

 

9,113

 

Selling, Marketing and Warehouse Expenses

 

4,472

 

 

4,032

General and Administrative Expenses

 

3,622

 

 

3,056

Total Operating Expenses

 

8,094

 

 

7,088

 

Operating Income

 

1,958

 

 

2,025

 

Interest and Other Expense, net

 

285

 

 

225

 

Income Before Income Taxes

 

1,673

 

 

1,800

Provision for /Benefit from Income Taxes

 

(45

)

 

372

 

Net Income

$

1,718

 

$

1,428

 

Basic Earnings Per Share

$

0.24

 

$

0.20

Average Shares Outstanding

 

7,257

 

 

7,177

 

Diluted Earnings Per Share

$

0.23

 

$

0.19

Average Shares Outstanding

 

7,491

 

 

7,438

 

TRANSCAT, INC.

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

 

(Unaudited)

 

 

(Audited)

 

 

 

 

June 29,

 

 

March 30,

 

 

 

 

 

2019

 

 

 

 

2019

 

ASSETS

Current Assets:

Cash

$

621

 

$

788

 

Accounts Receivable, less allowance for doubtful accounts of $364

and $338 as of June 29, 2019 and March 30, 2019, respectively

 

26,688

 

 

27,469

 

Other Receivables

 

1,364

 

 

1,116

 

Inventory, net

 

15,937

 

 

14,304

 

Prepaid Expenses and Other Current Assets

 

1,650

 

 

1,329

 

Total Current Assets

 

46,260

 

 

45,006

 

Property and Equipment, net

 

19,113

 

 

19,653

 

Goodwill

 

34,958

 

 

34,545

 

Intangible Assets, net

 

4,787

 

 

5,233

 

Right To Use Asset, net

 

7,808

 

 

 

Other Assets

 

737

 

 

793

 

Total Assets

$

113,663

 

$

105,230

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current Liabilities:

Accounts Payable

$

13,187

 

$

14,572

 

Accrued Compensation and Other Liabilities

 

6,784

 

 

5,450

 

Income Taxes Payable

 

125

 

 

228

 

Current Portion of Long-Term Debt

 

1,919

 

 

1,899

 

Total Current Liabilities

 

22,015

 

 

22,149

 

Long-Term Debt

 

20,439

 

 

19,103

 

Deferred Tax Liability

 

2,462

 

 

2,450

 

Lease Liability

 

6,226

 

 

 

Other Liabilities

 

1,818

 

 

1,898

 

Total Liabilities

 

52,960

 

 

45,600

 

 

Shareholders’ Equity:

 

Common Stock, par value $0.50 per share, 30,000,000 shares authorized;

7,303,664 and 7,210,882 shares issued and outstanding

as of June 29, 2019 and March 30, 2019, respectively

 

3,652

 

 

3,605

 

Capital in Excess of Par Value

 

16,404

 

 

16,467

 

Accumulated Other Comprehensive Loss

 

(482

)

 

(611

)

Retained Earnings

 

41,129

 

 

40,169

 

Total Shareholders’ Equity

 

60,703

 

 

59,630

 

Total Liabilities and Shareholders’ Equity

$

113,663

 

$

105,230

 

 

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

 

(Unaudited)

For the First Quarter Ended

 

 

 

 

June 29,

 

June 30,

 

 

 

 

 

2019

 

 

 

2018

 

Cash Flows from Operating Activities:

Net Income

$

1,718

 

$

1,428

 

Adjustments to Reconcile Net Income to Net Cash Provided

by Operating Activities:

Loss on Sale of Property and Equipment

 

238

 

 

29

 

Deferred Income Taxes

 

12

 

 

(5

)

Depreciation and Amortization

 

1,622

 

 

1,567

 

Provision for Accounts Receivable and Inventory Reserves

 

102

 

 

39

 

Stock-Based Compensation Expense

 

203

 

 

268

 

Changes in Assets and Liabilities:

Accounts Receivable and Other Receivables

 

562

 

 

2,937

 

Inventory

 

(1,497

)

 

(614

)

Prepaid Expenses and Other Assets

 

(278

)

 

4

 

Accounts Payable

 

(1,385

)

 

(1,300

)

Accrued Compensation and Other Liabilities

 

(314

)

 

(1,470

)

Income Taxes Payable

 

(109

)

 

179

 

Net Cash Provided by Operating Activities

 

874

 

 

 

3,062

 

 

Cash Flows from Investing Activities:

Purchase of Property and Equipment

 

(1,446

)

 

(1,918

)

Proceeds from Sale of Property and Equipment

 

184

 

 

 

Net Cash Used in Investing Activities

 

(1,262

)

 

 

(1,918

)

 

Cash Flows from Financing Activities:

Proceeds from (Repayment of) Revolving Credit Facility, net

 

1,823

 

 

(770

)

Repayments of Term Loan

 

(467

)

 

(536

)

Issuance of Common Stock

 

369

 

 

66

 

Repurchase of Common Stock

 

(1,346

)

 

(143

)

Net Cash Provided by/(Used in) Financing Activities

 

379

 

 

 

(1,383

)

 

Effect of Exchange Rate Changes on Cash

 

(158

)

 

 

148

 

 

Net Decrease in Cash

 

(167

)

 

(91

)

Cash at Beginning of Period

 

788

 

 

 

577

 

Cash at End of Period

$

621

 

 

$

486

 

TRANSCAT, INC.

Adjusted EBITDA Reconciliation Table

(In thousands)

(Unaudited)

 

 

Fiscal 2020

 

Q1

Q2

Q3

Q4

YTD

Net Income

$

1,718

 

$

1,718

 

+ Interest Expense

 

244

 

 

244

 

+ Other Expense / (Income)

 

41

 

 

41

 

+ Tax Provision

 

(45

)

 

 

 

 

(45

)

Operating Income

$

1,958

 

 

 

 

$

1,958

 

+ Depreciation & Amortization

 

1,622

 

 

 

 

 

1,622

 

+ Other (Expense) / Income

 

159

 

 

159

 

+ Noncash Stock Compensation

 

203

 

 

 

 

 

203

 

Adjusted EBITDA

$

3,942

 

 

 

 

$

3,942

 

 

Segment Breakdown

 

Service Operating Income

$

738

 

$

738

 

+ Depreciation & Amortization

 

1,220

 

 

1,220

 

+ Other (Expense) / Income

 

77

 

 

77

 

+ Noncash Stock Compensation

 

112

 

 

 

 

 

112

 

Service Adjusted EBITDA

$

2,147

 

 

 

 

$

2,147

 

 

Distribution Operating Income

$

1,220

 

$

1,220

 

+ Depreciation & Amortization

 

401

 

 

401

 

+ Other (Expense) / Income

 

83

 

 

83

 

+ Noncash Stock Compensation

 

91

 

 

 

 

 

91

 

Distribution Adjusted EBITDA

$

1,795

 

 

 

 

$

1,795

 

 

 

Fiscal 2019

 

Q1

Q2

Q3

Q4

YTD

Net Income

$

1,428

 

$

1,488

 

$

1,569

 

$

2,660

 

$

7,145

 

+ Interest Expense

 

206

 

 

197

 

 

250

 

 

250

 

 

903

 

+ Other Expense / (Income)

 

19

 

 

(2

)

 

45

 

 

29

 

 

91

 

+ Tax Provision

 

372

 

 

493

 

 

530

 

 

695

 

 

2,090

 

Operating Income

$

2,025

 

$

2,176

 

$

2,394

 

$

3,634

 

$

10,229

 

+ Depreciation & Amortization

 

1,567

 

 

1,500

 

 

1,666

 

 

1,628

 

 

6,361

 

+ Other (Expense) / Income

 

(19

)

 

2

 

 

(45

)

 

(29

)

 

(91

)

+ Noncash Stock Compensation

 

269

 

 

337

 

 

363

 

 

358

 

 

1,327

 

Adjusted EBITDA

$

3,842

 

$

4,015

 

$

4,378

 

$

5,591

 

$

17,826

 

 

Segment Breakdown

 

Service Operating Income

$

1,068

 

$

1,125

 

$

578

 

$

2,431

 

$

5,202

 

+ Depreciation & Amortization

 

1,189

 

 

1,116

 

 

1,248

 

 

1,201

 

 

4,754

 

+ Other (Expense) / Income

 

(13

)

 

(1

)

 

(35

)

 

(20

)

 

(69

)

+ Noncash Stock Compensation

 

146

 

 

174

 

 

190

 

 

192

 

 

702

 

Service Adjusted EBITDA

$

2,390

 

$

2,414

 

$

1,981

 

$

3,804

 

$

10,589

 

 

Distribution Operating Income

$

957

 

$

1,051

 

$

1,816

 

$

1,203

 

$

5,027

 

+ Depreciation & Amortization

 

378

 

 

384

 

 

418

 

 

427

 

 

1,607

 

+ Other (Expense) / Income

 

(6

)

 

3

 

 

(10

)

 

(9

)

 

(22

)

+ Noncash Stock Compensation

 

123

 

 

163

 

 

173

 

 

166

 

 

625

 

Distribution Adjusted EBITDA

$

1,452

 

$

1,601

 

$

2,397

 

$

1,787

 

$

7,237

 

TRANSCAT, INC.

Additional Information – Business Segment Data

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

Change

SERVICE

FY 2020 Q1

 

FY 2019 Q1

 

$’s

 

%

 

 

 

 

 

 

 

 

Service Revenue

$

22,398

 

 

$

19,325

 

 

$

3,073

 

 

15.9

%

Cost of Service Revenue

 

17,026

 

 

 

14,406

 

 

 

2,620

 

 

18.2

%

Gross Profit

$

5,372

 

 

$

4,919

 

 

$

453

 

 

9.2

%

Gross Margin

 

24.0

%

 

 

25.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

2,386

 

 

$

2,100

 

 

$

286

 

 

13.6

%

General and Administrative Expenses

 

2,248

 

 

 

1,751

 

 

 

497

 

 

28.4

%

Operating Income

$

738

 

 

$

1,068

 

 

$

(330

)

 

(30.9

%)

% of Revenue

 

3.3

%

 

 

5.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

DISTRIBUTION

FY 2020 Q1

 

FY 2019 Q1

 

$’s

 

%

Distribution Sales

$

19,997

 

 

$

17,333

 

 

$

2,664

 

 

15.4

%

Cost of Distribution Sales

 

15,317

 

 

 

13,139

 

 

 

2,178

 

 

16.6

%

Gross Profit

$

4,680

 

 

$

4,194

 

 

$

486

 

 

11.6

%

Gross Margin

 

23.4

%

 

 

24.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

2,086

 

 

$

1,932

 

 

$

154

 

 

8.0

%

General and Administrative Expenses

 

1,374

 

 

 

1,305

 

 

 

69

 

 

5.3

%

Operating Income

$

1,220

 

 

$

957

 

 

$

263

 

 

27.5

%

% of Sales

 

6.1

%

 

 

5.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

TOTAL

FY 2020 Q1

 

FY 2019 Q1

 

$’s

 

%

 

 

 

 

 

 

 

 

Total Revenue

$

42,395

 

 

$

36,658

 

 

$

5,737

 

 

15.7

%

Total Cost of Revenue

 

32,343

 

 

 

27,545

 

 

 

4,798

 

 

17.4

%

Gross Profit

$

10,052

 

 

$

9,113

 

 

$

939

 

 

10.3

%

Gross Margin

 

23.7

%

 

 

24.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

4,472

 

 

$

4,032

 

 

$

440

 

 

10.9

%

General and Administrative Expenses

 

3,622

 

 

 

3,056

 

 

 

566

 

 

18.5

%

Operating Income

$

1,958

 

 

$

2,025

 

 

$

(67

)

 

(3.3

%)

% of Revenue

 

4.6

%

 

 

5.5

%

 

 

 

 

 

Contacts

Michael J. Tschiderer, Chief Financial Officer

Phone: (585) 563-5766

Email: [email protected]

Deborah K. Pawlowski, Investor Relations

Phone: (716) 843-3908

Email: [email protected]

This article published with permission from Business Wire