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, provided an update on its operations and actions to address the COVID-19 pandemic.
Given the critical nature of the services and products that Transcat provides, its calibration labs, distribution center and support offices currently remain fully operational.
Transcat has implemented a number of actions in accordance with federal, state and local mandates to limit the spread of COVID-19 and to protect the health and safety of its employees, customers and partners. Those actions include enhanced sanitizing procedures, social distancing and remote working, travel and visitor restrictions, and new shipping and receiving protocols. The Company will continue to monitor industry conditions and implement appropriate measures to address this fluid situation.
Lee D. Rudow, Transcat’s President and CEO, commented, “The safety and well-being of our employees, customers and the communities we serve remain top priorities. I want to thank all of our associates for their tireless efforts in keeping our operations running. Quality calibration and laboratory instrument services are a critical component of our customers’ business operations, particularly those in highly-regulated industries, such as life sciences, a market that comprises nearly half of our Service segment business. Among many critical applications, last week we were onboard the USNS Comfort, the world’s largest hospital ship, calibrating critical respirator supply systems before that ship set sail to New York City to serve as a floating hospital in that COVID-19 epicenter. We also have medical device customers manufacturing life-saving devices including ventilators and personal protection equipment, and pharmaceutical customers who are actively working on vaccines and COVID-19 test kits to help combat this pandemic. Transcat is committed to responding with actions to ensure that there is continuity of support through this global crisis.”
Mr. Rudow added, “There is little doubt that COVID-19 will negatively impact the global economy. Even Transcat, despite our concentrated focus on the life science market, will likely experience some short-term delay of work from some Service segment customers. That said, we expect to be well positioned for the likely pent up demand when the virus winds down and we also expect acquisition opportunities to be especially attractive at that time. In our Distribution segment, we do not anticipate significant disruptions to our supply chain in the short-term and are working with our partners to minimize any potential delays in the coming months.
“As we monitor COVID-19 and its potential impact on the economy, we believe our cashflow from current operations and strong balance sheet provides adequate liquidity now and in the foreseeable future.”
At December 28, 2019, the Company had total debt of $19.7 million, with $23.4 million available under its credit facility. The Company’s leverage ratio, as defined in its credit agreement, was 1.07 at December 28, 2019, compared with 1.12 at fiscal 2019 year-end. The debt and leverage ratio does not include the $12.3 million in debt used to fund the previously disclosed acquisition of TTE Laboratories, Inc. effective February 21, 2020.
Transcat plans to provide a more comprehensive financial update as part of its fiscal year-end earnings release in mid-to-late May 2020. As we are all aware, this remains a fluid situation. If necessary, the Company will update shareholders as situations change.
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 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,” “plans,” 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, including those related to the COVID-19 pandemic, 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, which speak only as of the date they are made. 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, whether as the result of new information, future events or otherwise.