Greetings, and welcome to Transcat, Incorporated, fourth quarter fiscal year 2024 financial results. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Tom Barbato. Thank you. You may begin. 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'll open up the call for questions. Our earnings release crossed the wire after markets closed yesterday. Both the earnings release and the slides that we will reference during our prepared remarks can be found on our website, transcat.com, in the investor relations section. If you would, please refer to slide number two. As you are aware, we 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. These factors are outlined in the news release, as well as in 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. 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. Additionally, during today's call, we'll 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 comparable GAAP measures in the tables accompanying the earnings release. With that, I'll turn the call over to Lee. Thank you, Tom. Good morning, everyone. We appreciate you joining us on the call today. Fiscal 2024 was another strong year for Transcat. Our excellent operating results included double-digit organic service growth, significant and continued gross margin expansion, and dynamic growth in EBITDA and operating cash flow. We fortified our strong position in core markets by enhancing our differentiated value proposition and expanded our addressable markets. It was a great year, and we're very proud of the team, their continued hard work, and their accomplishments. In Fiscal 2024, we generated double-digit organic service growth of 11% and total service growth of 17%. Consolidated revenue was up 13% to $259 million, as demand for our products and services remained strong. Consolidated gross margins expanded 270 basis points to 32.3%, driven by organic service revenue, inherent leverage in our service operating model, improved productivity in our labs, and a higher rental mix in our distribution segment. Adjusted EBITDA, a key metric for us, given our acquisition strategy, grew 27% from prior year to $38.6 million. Accretive acquisitions played an important role in fiscal 2024, as we acquired three companies, TIC-MS, SteriQual, and Axiom Test Equipment. The acquisitions expanded our addressable markets, widened the breadth of our service offering, and allowed us to leverage our existing infrastructure. As always, the key differentiator of Transcat's acquisition strategy is the effectiveness of our integration process that enables us to quickly achieve growth synergies and capitalize on compelling cross-selling organic growth opportunities. In fiscal 2024, service gross margins continued to expand. Margins expanded 160 basis points to 33.8%. Service margins benefited from our differentiated suite of services, which continues to resonate throughout our highly regulated and expanded addressable markets. Transcat customers continue to recognize and value Transcat's role servicing markets where the cost of failure is high and risk mitigation is a top priority. I'll touch upon the fourth quarter results for our service segment. In the fourth quarter of fiscal 2024, our service segment recorded its 60th straight quarter of year-over-year growth. We generated 18% total service growth and 13% organic service growth, driven by recurring revenue streams and high year-over-year retention. Increases in productivity, driven primarily by automation and process improvement, drove year-over-year increases in the fourth quarter service gross margin by 170 basis points to 35.7%. Turning to distribution for the full fiscal 2024 year, revenue grew 5% and benefited from the high-performing Axiom acquisition. Gross margins expanded 420 basis points from prior year. In the fourth quarter, distribution revenue grew 8%, and gross margins expanded 510 basis points, again, driven by the increased mix of the rental business. With that, I'll turn things over to Tom Barbato for a more detailed look at the fiscal 2024 financials. Thanks, Lee. I'll start on slide four of the earnings deck posted on our website, which provides detail regarding our revenue on a consolidated basis and by segment for the fourth quarter and full year. Fourth quarter consolidated revenue of $70.9 million was up 14% versus prior year on service segment strength and solid revenue performance in our distribution business. Looking at it by segment, service revenue growth remained very strong at 18%, with 13% of the growth coming organically and the other 5% from acquisition. As Lee mentioned, demand for our core calibration business remains strong. Turning to distribution, revenue of $24.2 million was up 8% versus the prior year. We continue to see growth in the higher margin rental business, which also benefited from the Axiom Test Equipment acquisition. Finally, on a full year basis, total consolidated revenue was $259.5 million, an increase of 13% compared to the prior fiscal year. Our service business saw very strong demand throughout the year, resulting in year-over-year growth of 17%. Distribution segment revenue grew 5%, driven by strong rental performance. Turning to slide five, our consolidated gross profit for the fourth quarter of $24 million was up 26% from the prior year, and our gross margin expanded 300 basis points. Service gross margin expanded 170 basis points to 35.7%, 35.7%. The service margin increase further demonstrates our ability to leverage high levels of technician productivity and our differentiated value proposition. Distribution segment gross margin of 30.3% was up 510 basis points. For the full year, our consolidated gross profit increased 23% to $83.8 million, and our gross margin improved 270 basis points to 23.3%. Our service gross margin was 33.8%, which represented an increase of 160 basis points compared to the prior year. Distribution segment gross margin of 29.5% was up 420 basis points, as the segment benefited from significant growth in the higher margin rental business. Turning to slide six, Q4 net income of $6.9 million increased 88% from the prior year, and our diluted earnings per share increased to $0.77 from $0.48. Net income includes a non-cash adjustment of $2.4 million for the amended NEXA earnout agreement. We report adjusted diluted earnings per share as well to normalize for the impact of upfront and ongoing acquisition-related costs. Q4 adjusted diluted earnings per share was $0.66, up 10% from the same quarter of the prior year. Full year net income increased 28% from prior year, or $0.23 per share, and benefited from $800,000 of interest income driven by the proceeds from our successful secondary offering earlier in Q2 of fiscal 2024. Flipping to slide seven, 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. As we continue to execute on our acquisition strategy, this metric becomes even more important to highlight, as it does adjust for one-time deal-related transaction costs, as well as the increased level of non-cash expenses that will hit our income statement from acquisition purchase accounting. With that in mind, fourth quarter consolidated adjusted EBITDA of $11.7 million was up 30% from the same quarter in the prior year, and adjusted EBITDA margin expanded 200 basis points. Both segments had adjusted EBITDA growth and EBITDA margin expansion compared to last year. Full year EBITDA was $38.6 million, which was up 27% compared to the prior year, driven by the significant year-over-year profit improvement in both segments. As always, a reconciliation of adjusted EBITDA to operating income and net income can be found in the supplemental section of this presentation. Moving to slide, slide eight. Operating free cash flow of $19.3 million significantly improved versus the prior year. Full year capital expenditures were $2 million higher than prior year, primarily to support the growth in rentals. Capital expenditures in total continued to be centered around service segment capabilities, rental pool assets, technology, and future growth projects. The spend was in line with expectations. Slide nine highlights our strong balance sheet. At year-end, we had total net cash of $31 million, with a leverage ratio of 0.1x. We had $80 million available from our credit facility at quarter end, and as previously announced, we acquired Becnel Rental Tools for $50 million just after the end of fiscal year, paid in a combination of $32.5 million in company stock and $17.5 million in cash. Lastly, we expect to file our Form 10-K on May 28th. With that, I'll turn it back to you, Lee. All right, thank you, Tom. As I stated at the start of the call, fiscal 2024 was an excellent year for Transcat. Our strategy is to drive meaningful and consistent differentiation into the highly regulated markets we serve. We want to continue to enhance the value we provide for our customers, which, as always, includes a concentration of life sciences. We'll continue to leverage our competitive advantages, which include strong leadership and execution, to fortify and grow Transcat's position in the highly regulated markets that we serve. We expect to continue to benefit from the recurring revenue streams and to generate organic service growth in the high single-digit to low double-digit range. We expect our high-margin rental business to continue to grow. We expect to continue to leverage continuous process improvement and automation to enable further sustainable margin expansion in our service operation. On the acquisition front, we expect our robust and diverse acquisition pipeline to continue to be a key component of our go-forward growth strategy. We expect to continue to acquire and integrate strategic acquisitions that enhance the value we bring to our customers through expanded capabilities. We expect acquisitions to be accretive and to effectively drive synergies. We expect to continue to expand our addressable markets in areas we believe are strategic and are a good fit for our core operating strengths. The recent acquisition of Becnel is a great example of that. The acquisition further diversifies our portfolio of services within regulated spaces and increases Transcat's durability. Becnel is essentially a rental platform with a growing service component. It operates in a regulated environmental space with synergistic growth opportunities with large instrumentation users. Becnel is a highly profitable company, led by a creative team of strong leaders with a demonstrated track record. We love that. We're excited about the promotion of John Cummins, former owner of NEXA Enterprise Asset Management, to Vice President of Global Strategic Partnerships. In his new position, John will launch our integrated Transcat TS3 initiative, which stands for Transcat Single Source Solutions. This is an important next step for growth and differentiation. It's about looking ahead, anticipating, and adapting to the market and opportunities. It's about being different, or better, or both. Essentially, TS3 is the integration of NEXA's asset management and life cycle services with Transcat's core calibration services to provide a comprehensive, full suite of services to be sold to high-level decision-makers for new capital projects and existing operations. One company, Transcat, will be able to offer commissioning, decommissioning, validation, CMMS, calibration, reliability, and many other critical services to the life science manufacturing market, among others. This is a unique approach, capitalizing on both Transcat's very strong brand and our position in the market. Transcat's Single Source Solutions program will launch midway through the fiscal year. We're excited to get started. Of course, in addition to all these expectations, we expect to generate continued and sustainable long-term value for our shareholders. With that, operator, please open the line for questions. Thank you. At this time, we'll be conducting a question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question comes from Greg Palm with Craig-Hallum. Please proceed with your question. Thanks. This is Danny Eggerichs at [audio distortion] for Greg Palm today. Congrats on the good results again. Thank you. Wanted to kind of start on the service side. Obviously saw good growth again and a seemingly pretty good outlook for fiscal year 2025 as well. I guess, as we're talking about the margin there, I think a quarterly record at 35.7%, and you kind of talked about some of the internal initiatives going on, the process improvements and the automation. Just kind of wondering where we're at in terms of those kind of internal initiatives and how much further, you know, we can kind of pull out of that margin moving forward. Right. So things continue to progress. You know, we like the work that we're doing, both in automation. I think that's important. We're certainly no further along than if you were to use an analogy of a baseball game. We're probably in the fourth or fifth inning of that initiative. Process improvement, we're probably, you know, not even in the fourth or fifth inning. We're probably closer to third or fourth. So I think there's runway on both of those initiatives. But there are other things as well. We're always developing our operational leaders. So, you know, the actual leadership in our labs, both at the management level, the assistant management level, we're working on all these things that will eventually make their way into margins. So I think, you know, we're looking at... We've sort of established that we're in the mid-30% range at this point. I think we'll get above that over time. As systems continue to improve and some of these other programs I mentioned mature, we'll get into the, you know, mid- to upper 30s%. And, you know, I, beyond, beyond that is a possibility, but, you know, it might be too premature to talk about it. But I think we've, we've got runway to keep getting better. I mean, I guess essentially that's the message. Got it. That's helpful. And, I guess maybe just sticking with margins, maybe on the distribution side. So over 30% over the last couple of quarters here, and that's obviously before, Becnel contribution. So, I think maybe previously it was kind of a 28%-30% range, but now as we kind of layer in that, that, higher margin business as well, how should we think about the progression of the, distribution margins going forward? Yeah, yeah, Danny, it's Tom. You know, obviously, you know, we're, we're well entrenched in the low 30s%, and we would, you know, expect with the addition of Becnel, for that, you know, total margin to get into the, into the, you know, kind of mid-30s%, and, you know, we could provide some additional guidance as we, as we go forward. We're still digesting Becnel, but we've got a pretty good idea of what, what impact that's gonna have, obviously. But, you know, you could think of, you know, think of it in that kind of that mid, mid-30s% range. Okay, great. And, just, just following up on that, on that Becnel, that's, that's an entirely kinda new market that, that you're entering in on that rental side over there in kind of the oil and gas. Is that correct? It is, but we think about it a little bit differently, Lee, right? That you know, we believe that, you know, the business isn't, and we've done a lot of diligence around this, that the business isn't really tied to, you know, the oil and gas industry, so much as it's tied to the regulation around the work that has to be done. As Lee mentioned, there's environmental regulation around that industry of decommissioning oil wells, and Becnel is providing and renting equipment to support those, you know, really important activities. So it really more plays with, you know, the regulation, regulated end markets that we serve. And, you know, from that standpoint, we see it as more of the same than something different. Okay, got it. Appreciate it. I'll leave it there. Thanks, Danny. Our next question is from Scott Buck with H.C. Wainwright. Please proceed with your question. Hey, good morning, guys. Thanks for taking my question. Can you tell us what percentage of distribution segment revenue is coming from rentals, post the Becnel acquisition? Yeah, post-acquisition, it's about 35% of the overall business, distribution business. Okay, perfect. That's helpful. And the second one, I wanted to ask about, acquisitions. I'm curious, just given, and I think we saw it a little bit with Becnel, the strength of, your equity, does that change the way that you view potential acquisitions and, you know, maybe in terms of size, or how you would, you know, how you would finance deals? So this is Lee. I would say yes and no. I mean, it's good, you know, we did the offering. We put ourselves in a position so that if we found an opportunity that was a little bit larger than what we had done in the past and was a good strategic fit, that we'd be in a position to execute upon it. I think, as we go forward, we continue to look at the strength of our stock. We look at our cash position and, you know, we'll... Each deal will present a different opportunity, and we'll look at them on an individual basis. But I like the position we're in. Our capital structure allows us to execute our strategy, and that's the key. And I, you know, I see us being in a good position to do just that. So, I think it depends on each individual situation, you know, how we'll approach it. Equity will always be, you know, on the table, you know, as a potential tool. So I hope that, hope that answers your question, Scott. Yep. No, that makes sense. Appreciate that. And then last one, Tom, just on OpEx for 2025, how should we be thinking about, you know, general growth there versus the, you know, strength that you've seen on the top line? Yeah, Scott, I think, you know, if you, if you look at, you know, kind of Q4 numbers as kind of a jumping off point, I think you could continue to expect some, you know, level of reasonable growth going forward from there. You know, in order to be able to continue to grow at the rate we are organically, we need to, you know, continue to invest in the appropriate level of selling resources to support that future growth. So I would use Q4 as a jumping off point. You know, some level of kind of modest growth from there. And you know, you would expect that growth to continue through, you know, the fiscal year. All right. Perfect. That makes sense. I appreciate the time, guys. Thank you. Thanks, Scott. Our next question is from Ted Jackson with Northland Securities. Please proceed with your question. Thanks. I'm gonna beat some dead horses 'cause everyone's asked all my questions, basically. Congrats on the quarter. Can we go back over into the rental? One of the comments that was in the press release that I thought was, you know, at least worth exploring a little bit was, you know, the efforts in terms of trying to bring rental into, you know, kind of other parts of your customer base. And maybe my first question would be, you know, could you unpack that a little bit and talk about what you see with that and how, how that effort is gonna unfold, kind of what verticals and, you know, you know, kind of where—what kind of penetration do you think you can get out of it? And then I've got a follow-up. Yeah, Ted, let me, let me make sure I understand the question. So are you saying, what, what sort of additional cross-selling opportunities are for the rental business into our service customers? Is that essentially- Ye- yes. So one example I'll give you and something that we liked in the Becnel deal. So clearly, this is a company that rents equipment for the decommissioning of this regulated, you know, decommissioning space with oil wells. But when we looked at their customer base, of course, you know, you're gonna see Halliburton and Schlumberger, you're gonna see Baker Hughes. And these are historically large, large users of instrumentation, you know, all process equipment, calibrators, pressure gauges. And so, it's not just the service component and the rental component- Mm-hmm. It's also the instrument component. So I think that wherever there's instrumentation, there's opportunities for calibration growth as well. And sometimes internally here, we say all roads lead to calibration. And so when we look at an acquisition, we like to check that box if we can, and I think with, like, Becnel, for example, we're able to do that. So time will tell. You have to execute well. You have to cross-sell well, but you know, we're certainly capable of doing that, and that's what I would expect from the company. And I would just say going the other way, right? I mean, there's always a focused effort on, you know, renting to our existing customer base, right? And, you know, it helps solve customer problems. It builds, you know, goodwill with those customers. And, you know, obviously, it provides us a path to, you know, some really attractive margin business. So, that's something that we just we do as a regular part of our normal course of, you know, doing business in our sales efforts. Is there any case to be made that, you know, I mean, you know, buying equipment in your distribution business, you know, that's CapEx, and renting is more of a, an OpEx, turning it into a variable. That with interest rates higher and people managing and looking at, you know, the capital expenditures and, you know, just a little more detail, that there's a underlying lift maybe for some of your rental business because of the change in, you know, the interest rate environment and such? Yeah, there, so there certainly could be. And as we look at our company, and you've heard us, Ted, through the years, talk about being recession resistant, you know, it's all part of how we build our value prop. So our suite of services, which includes rentals, certainly has that OpEx, CapEx component to it. So, life sciences in general, tends to lend itself to some resistance. And so we start, you know, you look at the NEXA business and what they do in the cost control and optimization portion, and all these services together are coordinated and lead towards some sort of resistance to economic cycles, and we love that part of the business, and we're gonna keep making sure that we enhance it, and it's part of our value prop. Okay. Then just shifting over to Becnel, for those of us that actually haven't really incorporated that into their forecast at this point. You know, it's about a $20 million revenue business. I assume, you know, we would be kind of sort of layering that into this fiscal year with maybe an adjustment for the first quarter because it's not quite a full quarter. Is there any seasonality to that business that should be taken into account? How do we think about that in terms of, like, how, you know, their top line flows through over the course of the 12-month cycle? Yeah. So, Ted, I'll take that one. So, think of it as a, you know, kind of high teens revenue business. And I think your point's correct, right? There should be an adjustment for the first quarter of this year because, you know, we acquired them, you know, partway through April. There is some seasonality to that business. It's actually almost like somewhat complementary to the seasonality of Transcat's business, right? Because their lowest revenue is in calendar Q1, which is, you know, traditionally Transcat's highest quarter. So, I guess if there's gonna be seasonality, that's kind of a good fit. But Q1 is definitely, you know, the lightest... Calendar Q1 is definitely the lightest quarter for their business, and it's that way for all the business operating in the Gulf. You know, there's weather concerns in the winter, there's some other reasons behind that. But if you need more detail on that, we can discuss it offline. Okay. And then, then I'll step out of line. But, you know, you've gotten into the, into this business. It sounds pretty interesting. Is there other opportunity for you there in terms of M&A-like pipeline? I mean, is there an area, is this, you know, something that you can grow through further M&A, M&A? And obviously, but I'm sure you'll be trying to do it on an organic basis. But, you know, I mean, it did kind of put you in a brand-new market, and it's intriguing. Yeah. So this is Lee, Ted. And I think, anytime we make an acquisition, and we state that it expands our addressable markets, somewhere we have in mind that, you know, there's potential growth, you know, beyond the acquired company. And it, you know, that remains to be seen, but we and we certainly have to execute against that. But I think your point is, we're in a space that, that if we operate well in and develop a demonstrated track record to grow organically, then we would also look down the acquisitive path as well. That would be a normal course of action for us. So, yes, we'll keep looking at this market, both organically and through acquisition, and try to make the best decisions, you know, to match our strategy, you know, as we go forward. Okay. Well, thanks for the time, and congrats on the quarter. Our pleasure. Thanks, Ted. Thanks, Ted. As a reminder, if you'd like to ask a question, please press star one on your telephone keypad. One moment, please, while we poll for questions. Our next question comes from Martin Yang with Oppenheimer. Please proceed with your question. Hi, good morning. Thank you for taking my question. First question on CapEx for fiscal 2025. Is there anything incremental on a year-over-year basis, especially relating to Becnel? Yeah, Martin, great question. Obviously, we saw an increase in CapEx this past year with the, with the Axiom acquisition. I think we should expect to see a similar increase in 2025 with the Becnel acquisition, right? I mean, the key to, you know, the key to growing a rental business is you've got to have, you know, the assets in place to be able to, to be able to rent. You know, the returns on those assets are, are very good, you know, and you see that in the, in the margin profile of that business. So, but yeah, I would expect a similar, a similar increase to support rentals. And then, you know, the, the, the majority of the, the remainder, of the business remains about the same. Should we think about the similar increase in terms of dollar amount or percentage growth? Dollar amount. ... Thanks. Next question, on TS3. Maybe can you maybe give us a little more detail on the new brand positioning? You know, with a more integrated service, are you trying to approach customers who are, maybe not easy to win, without a such offering? You know, you know, overall, you know, is this new positioning relating to, you know, trying to get customers that, are harder to reach without it? Yeah, I think that's the right way to characterize it. So, when we take a look at our value proposition that we've built over the years, both organically and through acquired companies, we look at the strength of that, and it's you know, we're in a unique position now as a result of those activities, to be able to present something that is really so comprehensive, that if we get to the right level at the right time with the right decision makers, which is what TS3 is all about, we really do have a compelling approach to servicing, you know, highly regulated customers. And, you know, historically, we've always had nice growth, but it's been at the low, mid, and high ranges of what we would call opportunities. We have a transactional business. We've got a business that is anywhere from $200,000 to, let's say, low seven figures or $1 million. But now, with this value prop, if you get in the right place at the right time, there should be, we believe, an opportunity to do something different and do something large. And it takes a different approach, and it takes a different game plan, but that's what TS3 is about: a single-source solution that can really save the customer a lot of time and money, you know, over time, and get their work done properly and all the other features like risk mitigation. And that's what it's about. So I think you've characterized it well. Got it. A quick follow-up on the way you're characterizing large. Is there a potential for... What I'm thinking is two verticals. One is more service offered to customers, the other is maybe the duration of the contract or relationship with the customers. You know, is any one of the two or others that give you confidence that you can maybe grow the potential size of the business you engage with? I think the potential is there for both to grow, you know, the length of these contracts and to grow the size of these contracts over time. The goal would be both based upon our ability to do something unique and to do it well and to add value. When you do those things, when you have that combination going for you at a fair price, you're gonna have a really good relationship with your customer, and I think that's going to ultimately make its way to the length of the contract and the size of the contract. So you've got to execute well, Martin, but assuming you do that, I would agree that, you know, both are potentially, you know, our goals. Got it. Thank you, Lee. That's it for me. Okay, thank you. We have reached the end of the question and answer session. I'd now like to turn the call back over to Lee Rudow for closing comments. Okay, well, thank you all for joining us on the call today. We certainly appreciate it. We'll be presenting at the Craig-Hallum investment conference in Minneapolis on May 29. You're welcome to join us there. Otherwise, feel free to check in with us anytime. We look forward to talking with everyone again after our first quarter. Take care. This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.