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Transcat Inc.’s fiscal third-quarter profit was flat with a year ago, even as the company logged a 4.1 percent increase in revenues.
Transcat posted net income of $788,000, or 11 cents a diluted share, in the quarter ending Dec. 28, compared with $782,000, or 10 cents a diluted share, a year ago.
Shares of Transcat Inc. stock (Nasdaq: TRNS) were trading Tuesday at 3 p.m. at $8.23 a share, down from Monday’s close of $8.37. The company reported its third-quarter results after the market closed Monday.
The company reported higher expenses and income taxes, which affected gross profits.
Operating income for the third quarter was $1.3 million, an increase of 9.9 percent from
$1.2 million in the third quarter of fiscal 2013.
The calibration inspection and test equipment provider’s revenues grew to $30.5 million in the fiscal third quarter from $29.3 million a year ago.
Revenue from its service segment made up 38 percent of total revenues. Service revenues were $11.5 million up from $9.9 million in the third-quarter 2012—a 16.5 percent increase. Distribution sales, which made up 62 percent of total revenues, dropped by 2.3 percent. The dip in distribution sales was because of the currently challenged wind energy environment, company officials said.
"Year-to-date, we have executed well against our strategy to maintain and grow our distribution (segment) market share,” said Lee Rudow, CEO and president, in a statement. “We have achieved modest growth in a very competitive environment and a soft wind energy market while maintaining our year-over-year gross margin.”
The total reflects the company’s acquisition of Cal-Matrix Metrology Inc. which was officially acquired on January 25, 2013.
As of Dec. 28, the company had $9.4 million in remaining availability under its $20 million secured revolving credit facility and $200,000 in cash. At the end of 2013, the company reported 132 local employees, up from 127 in 2012.
Transcat purchased and retired 700,000 shares of its common stock in the quarter.
“We continue to expect our service business to grow at a double-digit rate and to realize the inherent leverage in our business model as operating income grows at a faster rate than our revenue,” Rudow said. “The distribution segment has actually done quite well through the year. All things considered, and as we have stated in the past, we intend to defend our market share.”
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