Transcat Inc (TRNS) 2025 Q1 法說會逐字稿

Greetings, and welcome to Transcat Inc first-quarter FY2025 financial results conference call. (Operator Instructions)

您好，歡迎參加 Transcat Inc 2025 財年第一季財務業績電話會議。 （操作員說明）

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Tom Barbato, Chief Financial Officer. Thank you, Mr. Barbato. You may begin.

提醒一下，本次會議正在錄製中。現在我很高興向您介紹主持人，財務長湯姆·巴巴托先生。謝謝你，巴巴托先生。你可以開始了。

Thank you, operator, and good morning, everyone. We appreciate your time and your interest in Transcat. With me here on the call today is our President and CEO, Lee Rudow, and our Chief Operating Officer, Mike West. We will begin the call with some prepared remarks, and then we will open up the call for questions.

謝謝接線員，大家早安。感謝您抽出寶貴的時間以及您對 Transcat 的興趣。今天與我一起參加電話會議的是我們的總裁兼執行長 Lee Rudow 和我們的營運長 Mike West。我們將以一些準備好的發言開始電話會議，然後開始提問。

Our earnings release crossed the wire after markets closed yesterday, both the earnings release in the slides that will be referenced during our prepared remarks can be found on our website, transcat.com, in the Investor Relations section.

我們的收益發布是在昨天市場收盤後發布的，在我們準備好的講話中將引用的幻燈片中的收益發布可以在我們的網站 transcat.com 的投資者關係部分找到。

If you would, please refer to slide number 2. As you are aware, we may make forward-looking statements during the formal presentation and Q&A portion of this teleconference. These statements apply to future events, which are subject to risks and uncertainties, as well as other factors that could cause the actual results to differ materially from where we are today.

如果您願意，請參閱投影片 2。這些陳述適用於未來事件，這些事件受到風險和不確定性以及其他可能導致實際結果與我們今天的情況有重大差異的因素的影響。

These factors are outlined in the news release as well as the documents filed by the company with the SEC. You can find those on our website where we regularly post information about the company as well as on the SEC's website at sec.gov.

這些因素在新聞稿以及公司向 SEC 提交的文件中進行了概述。您可以在我們定期發佈公司資訊的網站以及 SEC 網站 sec.gov 上找到這些資訊。

We undertake no obligation to publicly update or correct any of the forward-looking statements contained in this call, whether as a result of new information, future events or otherwise, except as required by law. Please review our forward-looking statements in conjunction with these precautionary factors.

我們沒有義務公開更新或更正本次電話會議中包含的任何前瞻性陳述，無論是由於新資訊、未來事件或其他原因，除非法律要求。請結合這些預防因素來檢視我們的前瞻性陳述。

Additionally, during today's call, we will discuss certain non-GAAP measures, which we believe will be useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We've provided reconciliations of non-GAAP to compared GAAP measures in the tables accompanying the earnings release. With that, I'll turn the call over to Lee.

此外，在今天的電話會議中，我們將討論某些非公認會計準則衡量標準，我們相信這些衡量標準將有助於評估我們的績效。您不應孤立地考慮此附加資訊的呈現，也不應將其視為根據 GAAP 準備的結果的替代品。我們在收益發布隨附的表格中提供了非公認會計原則與公認會計原則比較指標的調節表。說完，我就把電話轉給李。

Thank you, Tom. Good morning, everyone. Thank you for joining us on the call today. Transcat delivered strong performance across our entire portfolio in the first quarter of fiscal 2025 as we continue to demonstrate our ability to effectively execute our strategy and to drive differentiation throughout our business platform.

謝謝你，湯姆。大家早安。感謝您今天加入我們的電話會議。 Transcat 在 2025 財年第一季在我們的整個產品組合中取得了強勁的業績，我們繼續證明我們有能力有效執行我們的策略並推動整個業務平台的差異化。

Consolidated revenue was up 10% to $66.7 million, driven by continued demand for our services as well as strong rental performance. Consolidated gross margin expanded 310 basis points to 34%, and was driven by significant margin expansion in both our service and distribution segments.

由於對我們服務的持續需求以及強勁的租賃業績，綜合收入增長了 10%，達到 6,670 萬美元。綜合毛利率成長了 310 個基點，達到 34%，這得益於我們的服務和分銷部門的利潤率大幅成長。

Adjusted EBITDA in the quarter grew 20% from prior year to $10.2 million. Service continued to perform at a high level and recorded its 61st straight quarter of year-over-year revenue growth as more than 15 straight years.

本季調整後 EBITDA 較上年同期成長 20%，達到 1,020 萬美元。服務繼續保持高水平，並連續 61 個季度收入同比增長，連續 15 年以上。

In the first quarter of fiscal 2025, service revenue grew 10% overall and 6.4% organically. We continue to focus recurring revenue streams with highly regulated industries that include life science and aerospace and defense, and internally, we rally around the theme of get bigger and get better.

2025 財年第一季度，服務收入整體成長 10%，有機成長 6.4%。我們繼續關註生命科學、航空航太和國防等受到嚴格監管的行業的經常性收入流，在內部，我們圍繞著「做大做強」的主題團結起來。

To that point, service gross margins in the first quarter grew 150 basis points versus prior year to 34%. Our consistent service gross margin improvement over time reflects our ability to drive continuous process improvement throughout our operation.

至此，第一季服務毛利率較上年同期成長 150 個基點，達到 34%。隨著時間的推移，我們的服務毛利率持續改善反映了我們在整個營運過程中推動持續流程改善的能力。

Specific drivers of service gross margin improvement include increased productivity through higher levels of automation and technical training, as well as system and software enhancements. As we talked about in the past, the constant driver of service margin gain is the inherent leverage in the operating model as service revenue grows.

服務毛利率提高的具體驅動因素包括透過更高水準的自動化和技術培訓以及系統和軟體增強來提高生產力。正如我們過去談到的，隨著服務收入的成長，服務利潤率成長的持續驅動因素是營運模式中的固有槓桿。

Turning to distribution and rentals, gross margins expanded 620 basis points from prior year driven primarily by the higher margin rental business, which now includes both Axiom, which we acquired in August, almost one year ago, and Becnel acquired this past April at the start of our first quarter.

談到分銷和租賃，毛利率比上年增長了620 個基點，主要是由於租賃業務利潤率較高，其中包括Axiom（我們在大約一年前的8 月收購的）和Becnel 在今年4 月開始收購的公司我們第一季的情況。

The integration with Axiom has been excellent. And on the Becnel front, we're off to a strong start, making early, meaningful progress. In fact, in the first quarter, since the acquisition of Becnel, we can already point to several synergistic service opportunities that we've encountered from the Becnel customers.

與 Axiom 的整合非常出色。在貝克內爾方面，我們有了一個良好的開端，並取得了早期的、有意義的進展。事實上，自從收購 Becnel 以來的第一季度，我們已經可以指出我們從 Becnel 客戶那裡遇到的幾個協同服務機會。

While this was anticipated to occur at some point, the strong early start is great news. Becnel is a very well-run company that has cultivated a loyal customer base, most of which are heavy users of instrumentation and calibration services. In addition to its rental platform, Becnel offers a very profitable growing operator-based service model that we anticipate will contribute to service margin expansion over time.

雖然這預計會在某個時候發生，但強勁的早期啟動是個好消息。 Becnel是一家經營非常良好的公司，培養了忠實的客戶群，其中大多數是儀器和校準服務的重度使用者。除了租賃平台之外，Becnel 還提供利潤豐厚、不斷增長的基於運營商的服務模式，我們預計隨著時間的推移，該模式將有助於擴大服務利潤。

Overall, we're pleased with our strong start across the business in fiscal 2025, the 10% growth we generated in consolidated revenue, a 310 basis point expansion in consolidated gross margin and a 20% growth in adjusted EBITDA.

總體而言，我們對 2025 財年整個業務的強勁開局感到滿意，合併收入增長了 10%，合併毛利率增長了 310 個基點，調整後 EBITDA 增長了 20%。

It's all a testament to the strength of Transcat, our brand, and the uniqueness of our value proposition. Transcat continues to be recognized and rewarded for the delivery of our risk mitigating services across high cost of failure manufacturing environments.

這一切都證明了 Transcat 的實力、我們的品牌以及我們價值主張的獨特性。 Transcat 因在高成本故障製造環境中提供風險緩解服務而繼續獲得認可和獎勵。

Customer retention has been and continues to be a hallmark of Transcat, and a major contributor of our consistent top line performance over time. Lastly, the first quarter fiscal 2025 also benefited from the expansion of addressable markets, which contributed significantly to both revenue and margin growth.

客戶保留一直是並將繼續成為 Transcat 的標誌，也是我們長期穩定的營收表現的主要貢獻者。最後，2025 財年第一季也受益於潛在市場的擴張，這對收入和利潤成長做出了重大貢獻。

We ended the quarter with a strong balance sheet, and we are well positioned to execute our growth initiatives, including the acquisition of companies that enhance our geographic footprint, expand our current capabilities, expertise and markets. With that, I'll turn things over to Tom to provide additional detail on the first quarter financials.

我們在本季結束時擁有強勁的資產負債表，我們有能力執行我們的成長計劃，包括收購能夠增強我們的地理足跡、擴大我們當前的能力、專業知識和市場的公司。這樣，我將把事情轉交給湯姆，以提供有關第一季財務狀況的更多詳細資訊。

Thanks, Lee. I'll start on slide 4 of the earnings deck posted on our website, which provides detail regarding our revenue on a consolidated basis, and by segment for the first quarter of fiscal 2025.

謝謝，李。我將從我們網站上發布的收益報告的第 4 張投影片開始，其中提供了有關我們 2025 財年第一季按部門合併收入的詳細資訊。

First quarter consolidated revenue of $66.7 million was up 10% versus prior year, as both segments experienced consistent demand. Looking at it by segment, service revenue growth remained solid at 10%, 6.4% of the growth coming organically and the remainder from acquisition. Turning to distribution, revenue of $22.9 million grew 11% as we continue to see strong performance in the higher-margin rental business.

第一季綜合營收為 6,670 萬美元，比去年同期成長 10%，因為這兩個細分市場的需求一致。以細分市場來看，服務收入成長保持在 10% 的穩定水平，其中 6.4% 的成長來自有機成長，其餘則來自收購。說到分銷，收入 2,290 萬美元成長了 11%，因為我們繼續看到利潤率較高的租賃業務表現強勁。

Turning to slide 5, our consolidated gross profit for the first quarter of $22.7 million, was up 21% from the prior year, and our gross margin expanded 310 basis points to 34%. As Lee mentioned, we are very pleased with our year-over-year service gross margin expansion of 150 basis points. The service margin increase further demonstrates the inherent leverage in our service model and our ability to drive higher levels of automation and technician productivity.

轉向投影片 5，我們第一季的綜合毛利為 2,270 萬美元，比上年增長 21%，毛利率擴大了 310 個基點，達到 34%。正如 Lee 所提到的，我們對服務毛利率年增 150 個基點感到非常高興。服務利潤的增加進一步證明了我們服務模式的固有槓桿作用以及我們推動更高水準的自動化和技術人員生產力的能力。

Distribution segment gross margin of 33.9%, was up 620 basis points driven by strong rental performance. Turning to slide 6, Q1 net income of $4.4 million increased 49% from prior year, and our diluted earnings per share came in at $0.48, up $0.10 per share.

受強勁租金表現推動，分銷部門毛利率上升 620 個基點，達 33.9%。轉向投影片 6，第一季淨利為 440 萬美元，比去年同期成長 49%，稀釋後每股收益為 0.48 美元，每股成長 0.10 美元。

Net income growth was driven by strong Q1 performance and the reduction of interest expense as the majority of our debt was paid down in Q3 of last year, leveraging the proceeds from our secondary offering. We report adjusted diluted earnings per share as well to normalize for the impact of upfront and ongoing acquisition-related costs.

淨利潤成長是由第一季的強勁業績和利息支出的減少推動的，因為我們的大部分債務在去年第三季度得到了償還，利用了我們二次發行的收益。我們也報告了調整後的稀釋每股收益，以使前期和持續收購相關成本的影響正常化。

Q1 adjusted diluted earnings per share was $0.68, up from $0.52 per share in the prior year. A reconciliation of diluted earnings per share to adjusted diluted earnings per share can be found in the supplemental section of this presentation.

第一季調整後稀釋每股收益為 0.68 美元，高於去年同期的每股 0.52 美元。稀釋每股收益與調整後稀釋每股收益的調節表可在本簡報的補充部分中找到。

Flipping to slide 7, where we show our adjusted EBITDA and adjusted EBITDA margin. We use adjusted EBITDA, which is non-GAAP, to gauge the performance of our business because we believe it is the best measure of our operating performance and ability to generate cash.

翻到投影片 7，我們在其中顯示了調整後的 EBITDA 和調整後的 EBITDA 利潤率。我們使用調整後的 EBITDA（非公認會計原則）來衡量我們的業務績效，因為我們相信這是衡量我們的經營績效和現金產生能力的最佳衡量標準。

As we continue to execute our acquisition strategy, this metric becomes even more important to highlight as it does adjust for onetime deal-related transaction costs, as well as increased levels of noncash expense that will hit our income statement from acquisition purchase accounting.

隨著我們繼續執行我們的收購策略，這項指標變得更加重要，因為它確實調整了一次性交易相關的交易成本，以及非現金費用水準的增加，這些費用將影響我們收購會計的損益表。

With that in mind, first quarter consolidated adjusted EBITDA of $10.2 million, was up 20% from the same quarter in the prior year, and adjusted EBITDA margin expanded 130 basis points. Both segments had double-digit adjusted EBITDA growth compared to last year.

考慮到這一點，第一季綜合調整後 EBITDA 為 1,020 萬美元，比上年同期成長 20%，調整後 EBITDA 利潤率擴大了 130 個基點。與去年相比，這兩個部門的調整後 EBITDA 均達到兩位數成長。

As always, a reconciliation of adjusted EBITDA to operating income and net income can be found in the supplemental section of this presentation.

與往常一樣，調整後的 EBITDA 與營業收入和淨利潤的調節表可以在本簡報的補充部分中找到。

Moving to slide 8, operating cash flow improved from last year to $8.9 million for the quarter. Q1 capital expenditures were $900,000 higher than prior year and continued to be centered around Service segment capabilities, rental pool assets, technology and future growth projects. The spend was in line with expectations.

轉向幻燈片 8，本季營運現金流較去年有所改善，達到 890 萬美元。第一季資本支出比上年增加 90 萬美元，並繼續以服務部門能力、租賃池資產、技術和未來成長項目為中心。支出符合預期。

Slide 9 highlights our strong balance sheet. At quarter end, we had total net cash of $19.1 million, with a leverage ratio of 0.1x. We had $80 million available from our credit facility. As previously announced, we acquired Becnel Rental tools for $50 million just after the end of the first fiscal year, paid in a combination of $32.5 million company stock, and $17.5 million in cash. Lastly, we expect to file our Form 10-Q on August 1. With that, I'll turn it back to you, Lee.

投影片 9 凸顯了我們強勁的資產負債表。截至季末，我們的淨現金總額為 1,910 萬美元，槓桿率為 0.1 倍。我們的信貸額度中有 8000 萬美元可用。如同先前所宣布的，我們在第一個財年結束後以 5,000 萬美元收購了 Becnel Rental 工具，支付方式包括 3,250 萬美元的公司股票和 1,750 萬美元的現金。最後，我們預計在 8 月 1 日提交 10-Q 表格。

Thank you, Tom. Transcat has successfully delivered on the expectations we have set and communicated over a very long period of time. Expectations include consistent organic service revenue growth, gross margin expansion and in recent year's solid free cash flow.

謝謝你，湯姆。 Transcat 成功地實現了我們長期以來設定和溝通的期望。預期包括持續的有機服務收入成長、毛利率擴張以及近年來穩定的自由現金流。

We've also expanded our addressable markets and strengthened our industry-leading value proposition through a significant number of accretive acquisitions in our core and adjacent markets.

我們也透過在核心和鄰近市場進行大量增值收購，擴大了我們的潛在市場，並加強了我們行業領先的價值主張。

And as always, effective and timely integration represents the key differentiator, and has set Transcat apart. Throughout the remainder of 2025 and beyond, we are confident this will continue.

一如既往，有效且及時的整合是關鍵的差異化因素，並使 Transcat 脫穎而出。在 2025 年剩餘時間及以後，我們有信心這種情況將持續下去。

Fiscal 2025, we expect organic service growth in the high single-digit to low double-digit range when normalized for the extra week in fiscal 2024, and we expect gross margin expansion throughout our portfolio of businesses and business channels.

到 2025 財年，我們預計，當 2024 財年額外一周正常化時，有機服務增長將在高個位數到低兩位數範圍內，並且我們預計整個業務組合和業務渠道的毛利率都會擴大。

We have a robust and diverse acquisition pipeline that will enable opportunities to both expand our core services and addressable markets and ultimately increase the trajectory of the business. Of course, the ultimate focus will continue to be on generating sustainable long-term value for our shareholders.

我們擁有強大且多樣化的收購管道，這將為擴大我們的核心服務和潛在市場提供機會，並最終提高業務發展軌跡。當然，最終的重點將繼續是為我們的股東創造可持續的長期價值。

As we look ahead, we remain excited about the direction Transcat is headed, and our ability to execute what we believe is a differentiated and defendable strategic plan.

展望未來，我們仍然對 Transcat 的發展方向以及我們執行我們認為的差異化且可靠的策略計劃的能力感到興奮。

And with that, operator, we can open the line for questions.

接線員，這樣我們就可以開通提問線路了。

(Operator Instructions)

（操作員說明）

Greg Palm, Craig-Hallum Capital Group.

帕爾姆（Greg Palm），克雷格-哈勒姆資本集團。

Hey all, good morning and thanks for taking the questions here. I wanted to maybe dig into the segment-related results a little bit to start things off. So on services, the organic growth number was a little bit light of kind of your full year guide, certainly, what we're accustomed to over the past couple of years.

大家好，早安，感謝您在這裡提出問題。我想也許深入研究一下與細分相關的結果來開始工作。因此，在服務方面，有機成長數字與全年指南相比有點輕，當然，這是我們過去幾年所習慣的。

So just can you dig into that a little bit? Was it timing? It suggests that if you're going to get to high single digits, low double digits, it obviously accelerates from this level for the remainder of the year, so just a little bit more color there would be helpful to start.

那你能深入研究一下嗎？是時機嗎？它表明，如果你要達到高個位數、低兩位數，那麼在今年剩餘時間內，它顯然會從這個水平加速，所以稍微多一點顏色就會有幫助。

Sure, Greg. This is Lee. I'll take that. No, I wouldn't read into the 6.4% organic growth too deeply. Service remains strong in terms of demand. The demand remains strong. There's going to be fluctuations in this business. We've always talked about that, fluctuations that aren't necessarily reflective of our expectations, particularly long term.

當然，格雷格。這是李。我會接受的。不，我不會太深入地解讀 6.4% 的有機成長。服務需求依然強勁。需求依然強勁。這項業務將會出現波動。我們一直在談論這一點，波動不一定反映我們的預期，尤其是長期預期。

So we didn't change our guidance, because we still think that the pipeline and the demand is there, and we would expect to be in that range for the fiscal year. So no, it's not something we think about too much as we look at 90-day increments of time. We've never really looked at the business that way. And so no, I'm not concerned.

因此，我們沒有改變我們的指導，因為我們仍然認為管道和需求是存在的，我們預計本財年將處於這個範圍內。所以不，當我們考慮 90 天的時間增量時，我們並沒有考慮太多。我們從未真正以這種方式看待業務。所以不，我不擔心。

Yes. Any end markets within that segment that jumped out either from a positive standpoint, or maybe a little bit weaker than expected, at least for the quarter?

是的。該細分市場中的任何終端市場要么從積極的角度來看，要么比預期稍弱，至少在本季度是如此？

So I think everything is pretty consistent with our expectations. We see, when you look at the business that was generated, the growth and the pipeline, it's pretty much in line with the highly regulated industries that we serve. So you've got aerospace and defense in a big way, producing and same with life sciences, so I think that's consistent with the past, and that's what we expect.

所以我認為一切都非常符合我們的期望。我們看到，當你看看所產生的業務、成長和管道時，它與我們所服務的高度監管的行業非常一致。因此，航空航太和國防領域得到了很大的發展，生產和生命科學也一樣，所以我認為這與過去是一致的，這就是我們所期望的。

Yes. Okay. Good. And then shifting gears to distribution, by our math, I think organic growth was negative, and certainly, the reported growth was driven by acquisitions-related contribution. Can you just give us a little bit more sense on what's happening in distribution? And for rental specifically, how much is that at this point in terms of overall mix? Are you willing to give us kind of a ballpark number?

是的。好的。好的。然後轉向分銷，根據我們的數學計算，我認為有機成長是負的，當然，報告的成長是由收購相關的貢獻所推動的。您能否讓我們對發行方面發生的情況有更多了解？具體來說，就租金而言，目前的整體組合是多少？您願意給我們一個大概的數字嗎？

So generally speaking, we have guided towards this, and we look at distribution a little bit differently, obviously, than we did years ago. We have invested in our strategy to grow the rental business. We've done that organically and through acquisition. You do see acquired revenue, but you also see on the rental side, organic growth, which has been pretty impressive.

所以總的來說，我們已經朝著這個方向進行了指導，而且我們對分佈的看法顯然與幾年前有所不同。我們投資了發展租賃業務的策略。我們透過收購有機地做到了這一點。你確實看到了獲得的收入，但你也看到了租賃方面的有機成長，這是相當令人印象深刻的。

So we like where we are in distribution for that reason. Margins are up, profits are up. We did expect that core distribution over time may decrease and the mix may change and a percentage of the business is going to increase towards rentals. We like that. That's strategic for us, and we'll keep that going.

因此，我們喜歡我們目前的分銷狀況。利潤提高了，利潤也提高了。我們確實預計，隨著時間的推移，核心分佈可能會減少，組合可能會發生變化，並且租金業務的比例將會增加。我們喜歡這樣。這對我們來說具有戰略意義，我們將繼續這樣做。

We have low margin and what we used to call reseller business in the core distribution channel, and it's just not something that we spend a lot of time thinking about or investing in, and we expect that number to tweak its way down over time, but to be supplemented and substituted for the higher margin, higher growth rental business. We're going to continue down that path. We like it.

我們的利潤率很低，我們過去在核心分銷管道中稱之為經銷商業務，這並不是我們花大量時間思考或投資的事情，我們預計這個數字會隨著時間的推移而下降，但是來補充和取代利潤率更高、成長速度更快的租賃業務。我們將繼續沿著這條路走下去。我們喜歡它。

Is it fair to say that you're maybe walking away from some of that business on purpose, that low-margin business? Or is it just more of a, hey, we're not really putting any resources focused on it. So it may just sort of doing the longer time.

可以公平地說，您可能有意放棄某些業務，即低利潤業務嗎？或者只是更多的是，嘿，我們並沒有真正投入任何資源來關注它。所以它可能只是做更長的時間。

Yes, I think the latter. We're not going to walk away from business. We never walk away from our customers when they have needs, but we're certainly not allocating additional incremental resources to low margin, let's say, for example, like I just pointed out, resale business or channels that aren't as profitable.

是的，我認為是後者。我們不會放棄生意。當客戶有需求時，我們永遠不會離開他們，但我們當然不會將額外的增量資源分配給低利潤，例如，就像我剛才指出的那樣，轉售業務或利潤不那麼高的管道。

We're allocating resources towards a high-margin rental business. And we don't lose much in terms of that ever important connection. In fact, we don't lose anything, in my opinion, and the connection between services, on the rental business, same customers, and we always going to get that crack in that door so that we can walk through and try to gain service business. So that -- nothing has changed in that respect, Greg.

我們正在將資源分配給高利潤的租賃業務。就這種重要的連結而言，我們並沒有失去太多。事實上，在我看來，我們並沒有失去任何東西，以及服務之間的聯繫，在租賃業務上，相同的客戶，我們總是會在那扇門上找到裂縫，這樣我們就可以穿過並嘗試獲得服務商業。所以——在這方面沒有任何改變，格雷格。

Understood. Okay. I will leave it there. Thanks for the time.

明白了。好的。我會把它留在那裡。謝謝你的時間。

Ted Jackson, Northland Securities.

特德傑克遜，北國證券。

Thanks very much. Good morning. So I'm going to just jump over and to -- let's talk about services gross margins because I mean it's a clear bright spot for Transcat and something you should be proud of and I know you are.

非常感謝。早安.所以我要跳過去——讓我們談談服務毛利率，因為我的意思是，這對 Transcat 來說是一個明顯的亮點，也是你應該感到自豪的事情，我知道你也是如此。

Can you maybe flesh out what's driving a lot of the margin improvement. I mean, in the press release, you talked about productivity improvements and you talked about automation, and maybe put some meat on the bones with regards to some of the projects and programs that you are using to drive that margin improvement? And things in terms of projects and programs in the future that will continue to drive it going forward. And then I think I have a follow-up after that. Thanks.

您能否具體說明一下是什麼推動了利潤率的大幅提升？我的意思是，在新聞稿中，您談到了生產力的提高，談到了自動化，也許還對您用來推動利潤率提高的一些項目和計劃進行了一些補充？未來的項目和計劃將繼續推動它向前發展。然後我想在那之後我會有後續行動。謝謝。

Yes. This is Lee. I'll take a stab at this, and Tom can make sure I don't miss anything, because there are a lot of things in play here, and I'll try to capture and highlight some of the big ones.

是的。這是李。我會嘗試一下，湯姆可以確保我不會錯過任何事情，因為這裡有很多事情在發生，我會嘗試捕捉並突出顯示一些重要的事情。

Automation is important. We launched this initiative, I want to say, maybe three, four years ago, at least that feels about right. For the first couple of years, people had asked how far along are you? I'd say, well, we're in the first inning, second inning. I think today, I would characterize that as we're in the fourth inning.

自動化很重要。我想說，也許是三、四年前，我們發起了這個倡議，至少感覺是對的。在最初的幾年裡，人們問你現在進展到什麼程度了？我想說，好吧，我們現在處於第一局、第二局。我想今天，我會描述這一點，因為我們正處於第四局。

We used to have automation in terms of percentage of our calibration. We don't get into a lot of detail around that, but mid low single digits. And now it's in the 20% plus range. And so there's a lot of automation that has taken place, and it's arduous, and it's difficult. There's a lot of programming. But once you get it done, you can capitalize on it over a long period of time. And that's kind of what we're doing.

我們曾經在校準百分比方面實現自動化。我們不會詳細討論這一點，但中低個位數。現在已經在 20% 以上的範圍內了。因此，已經發生了大量的自動化，這是艱鉅的、困難的。有很多程式設計。但一旦完成，你就可以在很長一段時間內利用它。這就是我們正在做的事情。

So there's still runway there that's significant, and we're steady progress. We're pleased with it. And you always want it to be faster than it is, but it's making a dent in the initiative and we're increasing margin. It's an inflection point in this business, right? So that operating leverage.

因此，那裡仍然有重要的跑道，而且我們正在穩步取得進展。我們對此很滿意。你總是希望它比實際更快，但它削弱了主動性，而我們正在增加利潤。這是這個行業的轉捩點，對嗎？從而實現營運槓桿。

And as you get organic revenue growth, over time, aside from a step-function investment here or there, that's going to improve your margins. So that's definitely playing a role. And we've done a lot of work. We have a new Chief Operating Officer, and we've really dug into the labs and trying to make them more efficient, improve processes, and we've really made some gains in terms of how we get products through our lab, onto the bench, off the bench, build quicker, better turnaround times.

當你獲得有機收入成長時，隨著時間的推移，除了這裡或那裡的階梯功能投資之外，這將提高你的利潤。所以這肯定發揮了作用。我們已經做了很多工作。我們有一位新的首席營運官，我們確實深入研究了實驗室，並努力提高它們的效率，改進流程，並且在如何將產品通過實驗室帶到工作台上方面，我們確實取得了一些進展，替補，建置更快，週轉時間更好。

These are all things that eventually lead their way to margin and also lead their way to strong organic growth because you have a higher level of customer satisfaction with better turnaround times. These are all the things we're working on. And I think they all contribute. Tom, maybe --

所有這些最終都會帶來利潤，也會帶來強勁的有機成長，因為您可以透過更好的周轉時間獲得更高水準的客戶滿意度。這些都是我們正在做的事情。我認為他們都做出了貢獻。湯姆，也許——

The other thing I would just add, right, is that, when we talk about productivity and automation and the benefit that we see in margins, there's also another benefit that we get, right, as it puts less dependency on additional resources to get the incremental work done, which I don't want to lose sight of, right, because technicians are our most important asset, and being able to do more work with the same number of people is extremely valuable. So I just want to make that point as well.

我要補充的另一件事是，當我們談論生產力和自動化以及我們在利潤中看到的好處時，我們還獲得了另一個好處，對吧，因為它減少了對額外資源的依賴來獲得完成的增量工作，我不想忽視這一點，對吧，因為技術人員是我們最重要的資產，能夠用相同數量的人完成更多的工作是極其有價值的。所以我也想強調這一點。

Well, that's good because you know Tom, that's a great segue into my next question, and that has to go with labor and your labor needs. And I think you might have gotten into it a bit. But as Transcat continues to get big, it clearly means that you need more technicians.

嗯，這很好，因為你認識湯姆，這是我下一個問題的一個很好的延續，這必須與勞動力和你的勞動力需求一致。我想你可能已經有點投入了。但隨著 Transcat 不斷壯大，這顯然意味著您需要更多的技術人員。

I mean there's always been an issue in terms of your ability to get in that kind of labor, and that's why you started your training program, so you could develop your own talent, grow your own wood, if you would.

我的意思是，你從事這種勞動的能力一直存在問題，這就是你開始培訓計劃的原因，這樣你就可以發展自己的才能，種植自己的木材，如果你願意的話。

Like where is that in terms of an issue for Transcat, maybe an update with regards to some of your training programs, and the technicians that you put through it? And maybe -- I don't mean maybe you kind of answered it already, but where do you see that in terms of your needs and choke points going forward?

就像 Transcat 的問題在哪裡，也許是關於您的一些培訓計劃以及您接受培訓的技術人員的更新？也許——我並不是說也許你已經回答了這個問題，但從你的需求和未來的瓶頸來看，你在哪裡看到了這個問題？

So Ted, I've been in this business for coming up about 40 years. Labor, technical labor has always been an issue. It always will be an issue. And you're right, that's why we started Transcat University. That's why we decided we have to train our own technicians. And if and when we do, and we are doing it, it will be a differentiator.

Ted，我從事這個行業已經大約 40 年了。勞動力、技術勞動力一直是個問題。這永遠都會是個問題。你是對的，這就是我們創辦 Transcat 大學的原因。這就是為什麼我們決定必須培訓我們自己的技術人員。如果我們這樣做，而我們正在這樣做，這將是一個與眾不同的因素。

Because we'll have labor when and where we need it. Now that's not always the case. It's not as easy as I make it sound. But we're -- we try to position ourselves better than the competition so that we can compete better and we can win more and we can win the jobs that we want. So always a challenge, no question.

因為我們會在需要的時間和地點提供勞力。但現在情況並非總是如此。這並不像我聽起來那麼容易。但我們努力讓自己比競爭對手更好地定位，這樣我們就能更好地競爭，贏得更多，贏得我們想要的工作。毫無疑問，這始終是個挑戰。

But in there also lies the opportunity, right? So if you can overcome it, and you can get this kind of training program going and I expect that program to get better and better over time, more efficient, more effective over time. still relatively new, but I like the returns. We like the returns, and I see that is continuing. Now there are other ways, too.

但其中也蘊藏著機會，對嗎？因此，如果你能克服它，你就能讓這種訓練計畫繼續下去，我希望隨著時間的推移，這個計畫會變得越來越好，越來越有效率，越來越有效。仍然相對較新，但我喜歡回報。我們喜歡回報，而且我認為這種情況正在持續下去。現在還有其他方法。

We talk about, as Tom mentioned, the more automation you do, the more you go kind of from tech to operator. I mean one day, there will be more robotics, which takes you from operator to robots. I mean, there's all kind of things that you can do longer term.

正如湯姆所提到的，我們談論的自動化程度越高，從技術到操作員的轉變就越多。我的意思是有一天，將會有更多的機器人技術，它將把你從操作員變成機器人。我的意思是，有很多事情是你可以長期做的。

We're focused on those things. But when you allocate resources, the best place is to make sure you have the labor where and when you need it. And that's what we're doing in Transcat University. I see that continuing.

我們專注於這些事情。但是，當您分配資源時，最好的地方是確保您在需要的時間和地點擁有勞動力。這就是我們在 Transcat 大學所做的事情。我認為這種情況仍在繼續。

Okay. And then my last question is just on, it's a topic that used to get mentioned a lot, it doesn't be come up quite as often. But just on the customer based kind of labs, can you give us an update on kind of like, I don't know, how many CBLs you have at this point? What the pipeline looks like, kind of what's kind of going on with that in terms of a growth driver for service revenue for you over the coming quarters and years? Thanks.

好的。然後我的最後一個問題就出來了，這是一個過去經常被提及的話題，但現在並不常被提及。但就以客戶為基礎的實驗室而言，您能給我們一些最新資訊嗎？管道是什麼樣的，在未來幾個季度和幾年內為您提供服務收入的成長動力方面，情況如何？謝謝。

I would characterize our client-based labs as steady. So we still have in the mid- to upper 20s as a round number for the number of locations we're actually in with embedded technicians with an embedded lab.

我認為我們基於客戶的實驗室是穩定的。因此，我們實際擁有嵌入式技術人員和嵌入式實驗室的地點數量仍然在 20 多歲左右。

Different times, that business sort of ebbs and flows, and it's usually a byproduct of labor shortages and our customers' inability or their challenges that they have with finding the labor they need when they need it.

在不同的時期，這種業務會出現起起落落，這通常是勞動力短缺和我們的客戶無能力或他們在需要時找到所需勞動力時遇到的挑戰的副產品。

So right now, we have a pipeline with a significant number of CBLs in them. But when you look across our pipeline, our portfolio, we've got everything from transactional to core small, core medium, core large, strategic and then CBL. So it's just one of the six service channels. They tend to be larger accounts.

所以現在，我們有一個包含大量 CBL 的管道。但當你縱觀我們的管道、我們的產品組合時，我們擁有從交易型到核心小型、核心中型、核心大型、戰略型以及 CBL 的一切。所以它只是六個服務管道之一。它們往往是較大的帳戶。

But I think that I would say it's steady and stable is how I describe that. It's not on the uptick, but it's not declining either, so it's kind of in a steady state.

但我想我會說它是穩定的，這就是我所描述的。它沒有上升，但也沒有下降，所以它處於穩定狀態。

Okay. All right. Thanks very much.

好的。好的。非常感謝。

Okay. Thanks Ted.

好的。謝謝特德。

Martin Yang, Oppenheimer & Co.

馬丁楊，奧本海默公司

Thanks for taking my question. Lee, I wanted to ask you about your updated view on your addressable market. In the past, you have updated numbers such as $1.6 billion for US calibration services.

感謝您提出我的問題。 Lee，我想問您對目標市場的最新看法。過去，您更新了美國校準服務的數字，例如 16 億美元。

Now with the bigger rental business, asset management as well as Becnel's decommissioning services. How do you think about your service addressable market in the US? Do you have an updated number for us?

現在擁有更大的租賃業務、資產管理以及貝克內爾的退役服務。您如何看待您在美國的服務目標市場？您有更新的電話號碼嗎？

Well, in terms of addressable markets, in general, first, let's make clear that when we expand our addressable markets, we're always going adjacent to what we do. We want to stay in pretty close proximity to our core business which is calibration services.

嗯，就潛在市場而言，總的來說，首先，讓我們明確一點，當我們擴大潛在市場時，我們總是會與我們所做的事情相鄰。我們希望與我們的核心業務（校準服務）保持密切聯繫。

So today, we're always looking to expand where it makes sense for the business where we get recurring revenue streams where there's a demand, where there's regulation, you saw that with Becnel. If there's a margin play, you saw that with Axiom. And so with NEXA, you saw kind of a combination of value prop enhancers around calibration.

因此，今天，我們一直在尋求在對業務有意義的地方進行擴張，在有需求、有監管的地方獲得經常性收入流，你在貝克內爾身上就看到了這一點。如果存在保證金遊戲，您可以在 Axiom 中看到這一點。因此，在 NEXA 中，您看到了圍繞校準的價值支撐增強器的組合。

I think Martin, there are opportunities to expand our addressable markets to the house next door and sometimes maybe the house right next door to that. We're going to stay disciplined. We've always been disciplined around our acquisition strategy.

我認為馬丁，有機會將我們的潛在市場擴展到隔壁的房子，有時可能就在隔壁的房子。我們將保持紀律。我們一直嚴格遵守我們的收購策略。

And that's not going to change. It's something that we talk to the board about. It's required from us and our shareholders expect that. So there are more addressable markets -- we expect to tap into them. They are likely to be the house next door because that's the way we approach it.

這不會改變。這是我們與董事會討論的事情。這是我們的要求，也是我們的股東的期望。因此，還有更多可尋址的市場——我們希望能夠進入這些市場。它們很可能是隔壁的房子，因為這就是我們接近它的方式。

And certainly, we look for all the attributes that are part of our acquisition strategy, geographic expansion, margin enhancers, adding expertise. These are some of the things that we'll continue to focus on when we look to expand our markets. I hope that added some clarity for you.

當然，我們尋找收購策略、地理擴張、利潤提升、增加專業知識的所有屬性。當我們尋求擴大市場時，這些是我們將繼續關注的一些事情。我希望這能讓你更清楚。

Got it. And my next question is about gross margins. So when you look at the two different segments, they are almost at parity now. And how do you think about the difference in margins are? The convergence of gross margins between two segments in the medium to longer term?

知道了。我的下一個問題是關於毛利率。因此，當你觀察這兩個不同的細分市場時，你會發現它們現在幾乎持平。您如何看待利潤率的差異？中長期來看，兩個細分市場的毛利率會趨同嗎？

So Tom, help me out with this one, but we've guided towards service gross margins being in the mid to upper 30s for now, right? We have pretty good sight lines, as Tom would say, to get to that range and continue the improvement in margins over time.

湯姆，請幫我解決這個問題，但我們目前的目標是服務毛利率在 30 多歲左右，對嗎？正如湯姆所說，我們有很好的視線，可以達到這個範圍，並隨著時間的推移繼續提高利潤率。

I don't like to really talk about it quarter-to-quarter. There are some quarters where we have outstanding results like this one. And there's some where you may be flat, and somewhere you may have 20 basis points.

我不喜歡逐季度地談論它。在某些季度，我們取得了像這樣的出色業績。有些地方可能持平，有些地方可能有 20 個基點。

But over time, we see that continuing because there's a lot of runway left on the initiatives around that. And then, of course, the inherent leverage that we talk about. In distribution, the margin increase is driven by rentals. And we know that and we like it, and we go back to 2016, we didn't have that business.

但隨著時間的推移，我們看到這種情況仍在繼續，因為圍繞這一點的舉措還有很多空間。當然，還有我們談論的固有槓桿作用。在分銷方面，利潤率的成長是由租金推動的。我們知道這一點，我們喜歡它，我們回到 2016 年，我們沒有這項業務。

And distribution was a low 20s, 20% business. So that's changed drastically for the better. And it even surprises us to a certain degree. If you go back five or six years ago, would we have seen the parity between the two margins, I would have not bet on that.

分銷業務只佔 20 多歲，佔 20%。所以情況已經發生了巨大的變化。這甚至在某種程度上讓我們感到驚訝。如果你回到五、六年前，我們是否會看到兩個利潤率之間的平價，我不會打賭。

But through creativity, through being allocating resources properly, getting the right leaders here, we've made something really significant out of that business. And it has scalability, which we like, and it's connected to service. So I think that margin will increase over time also as the percentage of rentals, it becomes higher within distribution, which we expected to do. So Tom?

但透過創造力，透過正確分配資源，找到合適的領導者，我們已經從這項業務中取得了真正重要的成果。它具有我們喜歡的可擴展性，並且它與服務相關。因此，我認為隨著時間的推移，隨著租金百分比的增加，利潤率也會增加，在分配中它會變得更高，這是我們期望的。那麼湯姆?

No, I would agree with that. I would just we got to keep in mind that in August, we'll kind of lap the Axiom acquisition, right? And so some of that lift that we're getting from last year's August Axiom acquisition will go away. But on a go-forward basis, I would expect that the two margins will kind of track in a similar fashion going forward.

不，我同意這一點。我想我們必須記住，在 8 月份，我們將完成對 Axiom 的收購，對嗎？因此，我們從去年 August Axiom 收購中獲得的一些提升將消失。但從長遠來看，我預計這兩個利潤率將以類似的方式向前發展。

Got it. Thanks.

知道了。謝謝。

Ted Jackson, Northland Securities.

特德傑克遜，北國證券。

I just have a follow-up question driven by the last line of questioning. When you look at the historic trends of the business and the seasonality of that typically Transcat sees the second quarter margin, particularly as it relates to services revenue stronger than the first quarter. Do we expect that to be the same this year?

我只是有一個由最後一行問題驅動的後續問題。當你觀察業務的歷史趨勢和季節性時，Transcat 通常會看到第二季的利潤率，特別是因為它與服務收入相關，比第一季更強。我們預計今年也會如此嗎？

Do you want to take that one, or --

你想接受那個嗎，或者——

Yes. We're not expecting, Ted, anything really significantly different from a seasonality standpoint. So I think it would be safe to assume that.

是的。特德，從季節性的角度來看，我們並不期望出現任何明顯不同的情況。所以我認為這樣的假設是安全的。

Okay. Okay. That was my one question. Thank you very much.

好的。好的。這是我的一個問題。非常感謝。

(Operator Instructions)

（操作員說明）

Ladies and gentlemen, there are no further questions at this time. I would now like to turn the floor over to Lee Rudow for closing comments.

女士們、先生們，目前沒有其他問題了。現在我想請李‧魯多 (Lee Rudow) 發表總結意見。

Okay. Well, thank you all for joining us on the call today. We certainly appreciate your interest, your continued interest in Transcat. We will be attending the Oppenheimer 27th Technology Internet and Communications Conference, it's going to be on August 12. So feel free to sign up to talk to us then and reach out. Otherwise, you can really check in with Tom or me at any time, so we will hear from you.

好的。好的，謝謝大家今天加入我們的電話會議。我們當然感謝您對 Transcat 的興趣，以及您持續的興趣。我們將參加 8 月 12 日舉行的奧本海默第 27 屆技術互聯網和通訊會議。否則，您可以隨時與湯姆或我聯繫，以便我們收到您的來信。

We look forward to talking to everybody again after our second quarter results. And thank you again for participating. Take care.

我們期待在第二季業績公佈後再次與大家交談。再次感謝您的參與。小心。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。