Transcat Q2 FY2023 revenue up 12% to $56.4M; service segment grows 19.4%

($ in thousands) Change FY23 Q2 FY22 Q2 $'s % Service Revenue $ 35,267 $ 29,544 $ 5,723 19.4% Distribution Sales 21,172 20,843 329 1.6% Revenue $ 56,439 $ 50,387 $ 6,052 12.0% Gross Profit $ 16,767 $ 14,611 $ 2,156 14.8% Gross Margin 29.7% 29.0% Operating Income $ 3,626 $ 3,578 $ 48 1.3% Operating Margin 6.4% 7.1% Net Income $ 2,357 $ 3,015 $ (658) (21.8%) Net Margin 4.2% 6.0% Adjusted EBITDA* $ 7,531 $ 7,079 $ 452 6.4% Adjusted EBITDA* Margin 13.3% 14.0% *See Note 1 on page 4 for a description of this non-GAAP financial measure and page 10 for the Adjusted EBITDA Reconciliation table. Consolidated revenue was $56.4 million, an increase of 12.0%. Consolidated gross profit was $16.8 million, an increase of $2.2 million, or 14.8%, and gross margin expanded 70 basis points to 29.7% due to strong performance in the Distribution segment. Operating expenses increased $2.1 million, or 19.1%, driven by incremental expenses from acquired businesses (including stock-based compensation expense),