Transcat Posts Higher Revenues, Net Income
Net income increased to $1 million, or 13 cents a diluted share, up from $900,000, or 12 cents a diluted share, a year ago. The increase was driven by higher operating profits in Transcat’s product segment, officials said.
Transcat logged net revenue of $28.5 million, up from $23.9 million in the third quarter fiscal 2011. Product net sales rose 17 percent to $19.4 million, while service net sales increased 24 percent to $9.1 million.
The Ogden-based service provider and distributor of calibration and measurement instruments announced its results Monday afternoon after the market closed. The company’s stock was up 1% midday Tuesday at $11.31.
“Our growth strategy was clearly demonstrated in this quarter,” says President and CEO Charles Hadeed. “Winning new business, leveraging existing relationships and strategic acquisitions all contributed to both top-line growth and a significant increase in operating income.”
Transcat’s gross profit was $6.8 million, up from $6.1 million.
Total operating expenses in the third quarter rose 11.3% to $5.1 million. The increase reflected higher employee compensation and acquisition-related expenses. Though the company said lower marketing costs related to direct mail campaigns helped offset the increases.
For the first nine months of fiscal 2012, Transcat’s net revenue increased to $79.2 million, up 21.1%. Net income was $2.1 million, or 27 cents a diluted share, up from $1.7 million, or 23 cents a diluted share during the prior fiscal year.
“Our strong balance sheet keeps us well positioned to broaden our capabilities and expand our market reach,” Hadeed says. “We will continue to explore opportunities that fit our business model and recognize that successful integration of those strategic acquisitions into our existing business remains an integral driver of our growth.”