10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)                                                                                                                                                                 

[√] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended: September 27, 2014

or

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from            to               

Commission File Number: 000-03905

TRANSCAT, INC.

(Exact name of registrant as specified in its charter)

Ohio	16-0874418
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

35 Vantage Point Drive, Rochester, New York 14624

(Address of principal executive offices) (Zip Code)

(585) 352-7777

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [√] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [√] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [  ]	Accelerated filer [  ]
Non-accelerated filer [  ] (Do not check if a smaller reporting company)	Smaller reporting company [√]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [ ] No [√]

The number of shares of common stock, par value $0.50 per share, of the registrant outstanding as of November 4, 2014 was 6,830,607.

		Page(s)
PART I.	FINANCIAL INFORMATION
Item 1.	Consolidated Financial Statements:
	Statements of Income for the Second Quarter and Six Months Ended September 27, 2014 and September 28, 2013	1
	Statements of Comprehensive Income for the Second Quarter and Six Months Ended September 27, 2014 and September 28, 2013	2
	Balance Sheets as of September 27, 2014 and March 29, 2014	3
	Statements of Cash Flows for the Six Months Ended September 27, 2014 and September 28, 2013	4
	Statement of Shareholders’ Equity for the Six Months Ended September 27, 2014	5
	Notes to Consolidated Financial Statements	6-10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	11-17
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	17-18
Item 4.	Controls and Procedures	18
PART II.	OTHER INFORMATION
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 6.	Exhibits	18
SIGNATURES		19
INDEX TO EXHIBITS		20

PART I. FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts)

	(Unaudited)				(Unaudited)
	Second Quarter Ended				Six Months Ended
	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Distribution Sales	$	18,516	$	17,410	$	35,497	$	34,381
Service Revenue		12,595		11,472		24,733		23,211
Total Revenue		31,111		28,882		60,230		57,592
Cost of Distribution Sales		14,862		13,297		28,111		26,250
Cost of Service Revenue		9,323		8,764		18,524		17,307
Total Cost of Revenue		24,185		22,061		46,635		43,557
Gross Profit		6,926		6,821		13,595		14,035
Selling, Marketing and Warehouse Expenses		3,169		3,295		6,904		6,996
Administrative Expenses		2,241		2,245		4,416		4,606
Total Operating Expenses		5,410		5,540		11,320		11,602
Operating Income		1,516		1,281		2,275		2,433
Interest and Other Expense, net		138		68		183		72
Income Before Income Taxes		1,378		1,213		2,092		2,361
Provision for Income Taxes		519		442		788		869
Net Income	$	859	$	771	$	1,304	$	1,492
Basic Earnings Per Share	$	0.13	$	0.10	$	0.19	$	0.20
Average Shares Outstanding		6,802		7,390		6,772		7,409
Diluted Earnings Per Share	$	0.12	$	0.10	$	0.18	$	0.20
Average Shares Outstanding		7,056		7,586		7,050		7,633

See accompanying notes to consolidated financial statements.

1

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands)

	(Unaudited)					(Unaudited)
	Second Quarter Ended					Six Months Ended
	September 27, 2014			September 28, 2013		September 27, 2014			September 28, 2013
Net Income	$	859		$	771	$	1,304		$	1,492
Other Comprehensive (Loss) Income:
Currency Translation Adjustment		(170	)		1		(180	)		1
Unrecognized Prior Service Cost, net of tax		6			9		13			18
Unrecognized (Loss) Gain on Other Asset, net of tax		(13	)		21		-			17
Total Other Comprehensive (Loss) Income		(177	)		31		(167	)		36
Comprehensive Income	$	682		$	802	$	1,137		$	1,528

See accompanying notes to consolidated financial statements.

2

TRANSCAT, INC.

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

	(Unaudited)
	September 27, 2014		March 29, 2014
ASSETS
Current Assets:
Cash	$	263	$	23
Accounts Receivable, less allowance for doubtful accounts of $140 and $82 as of September 27, 2014 and March 29, 2014, respectively		16,345		15,663
Other Receivables		671		1,088
Inventory, net		7,513		6,181
Prepaid Expenses and Other Current Assets		1,682		1,180
Deferred Tax Asset		1,026		1,396
Total Current Assets		27,500		25,531
Property and Equipment, net		8,520		7,089
Goodwill		21,244		17,384
Intangible Assets, net		4,450		2,651
Other Assets		1,440		1,219
Total Assets	$	63,154	$	53,874
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable	$	8,133	$	7,132
Accrued Compensation and Other Liabilities		3,555		5,690
Income Taxes Payable		-		1,035
Total Current Liabilities		11,688		13,857
Long-Term Debt		16,327		7,593
Deferred Tax Liability		1,365		607
Other Liabilities		1,909		1,734
Total Liabilities		31,289		23,791
Shareholders' Equity:
Common Stock, par value $0.50 per share, 30,000,000 shares authorized; 6,815,894 and 6,716,350 shares issued and outstanding as of September 27, 2014 and March 29, 2014, respectively		3,408		3,358
Capital in Excess of Par Value		12,025		11,387
Accumulated Other Comprehensive Income		400		567
Retained Earnings		16,032		14,771
Total Shareholders' Equity		31,865		30,083
Total Liabilities and Shareholders' Equity	$	63,154	$	53,874

See accompanying notes to consolidated financial statements.

3

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

	(Unaudited)
	Six Months Ended
	September 27, 2014			September 28, 2013
Cash Flows from Operating Activities:
Net Income	$	1,304		$	1,492
Adjustments to Reconcile Net Income to Net Cash (Used in) Provided by Operating Activities:
Loss (Gain) on Disposal of Property and Equipment		4			(31	)
Deferred Income Taxes		409			(88	)
Depreciation and Amortization		1,371			1,440
Provision for Accounts Receivable and Inventory Reserves		48			101
Stock-Based Compensation Expense		389			257
Changes in Assets and Liabilities:
Accounts Receivable and Other Receivables		241			164
Inventory		(1,345	)		(1,516	)
Prepaid Expenses and Other Assets		(871	)		(528	)
Accounts Payable		1,026			(1,720	)
Accrued Compensation and Other Liabilities		(2,081	)		1,049
Income Taxes Payable		(906	)		(386	)
Net Cash (Used in) Provided by Operating Activities		(411	)		234
Cash Flows from Investing Activities:
Purchases of Property and Equipment		(1,854	)		(553	)
Proceeds from Sale of Property and Equipment		22			240
Business Acquisition, net of cash acquired		(6,681	)		-
Net Cash Used in Investing Activities		(8,513	)		(313	)
Cash Flows from Financing Activities:
Proceeds from Revolving Line of Credit, net		8,734			701
Issuance of Common Stock		327			111
Repurchase of Common Stock		(71	)		(780	)
Net Cash Provided by Financing Activities		8,990			32
Effect of Exchange Rate Changes on Cash		174			50
Net Increase in Cash		240			3
Cash at Beginning of Period		23			406
Cash at End of Period	$	263		$	409
Supplemental Disclosure of Cash Flow Activity:
Cash paid during the period for:
Interest	$	71		$	52
Income Taxes, net	$	1,783		$	1,340

See accompanying notes to consolidated financial statements.

4

TRANSCAT, INC.

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

(In Thousands)

(Unaudited)

							Capital
	Common Stock						In			Accumulated
	Issued						Excess			Other
	$0.50 Par Value						of Par			Comprehensive			Retained
	Shares			Amount			Value			Income			Earnings			Total
Balance as of March  29, 2014		6,716		$	3,358		$	11,387		$	567		$	14,771		$	30,083
Issuance of Common Stock		58			29			298			-			-			327
Repurchase of Common Stock		(8	)		(4	)		(24	)		-			(43	)		(71	)
Stock-Based Compensation		50			25			364			-			-			389
Other Comprehensive Loss		-			-			-			(167	)		-			(167	)
Net Income		-			-			-			-			1,304			1,304
Balance as of September 27, 2014		6,816		$	3,408		$	12,025		$	400		$	16,032		$	31,865

See accompanying notes to consolidated financial statements.

5

TRANSCAT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, Except Per Share and Per Unit Amounts)

(Unaudited)

NOTE 1 – GENERAL

Description of Business: Transcat, Inc. (“Transcat” or the “Company”) is a leading provider of accredited calibration and compliance services and distributor of professional grade handheld test, measurement and control instrumentation. The Company is focused on providing services and products to highly regulated industries, particularly healthcare, which includes companies in the pharmaceutical, medical device and bioscience industries. Additional industries served include industrial manufacturing, energy and utilities, chemical manufacturing and other industries which require accuracy in their processes and confirmation of the capabilities of their equipment.

Basis of Presentation: Transcat’s unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8-03 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, the Consolidated Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments considered necessary for a fair presentation (consisting of normal recurring adjustments) have been included. The results for the interim periods are not necessarily indicative of what the results will be for the fiscal year. The accompanying Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements as of and for the fiscal year ended March 29, 2014 (“fiscal year 2014”) contained in the Company’s 2014 Annual Report on Form 10-K filed with the SEC.

Fair Value of Financial Instruments: Transcat has determined the fair value of debt and other financial instruments using a valuation hierarchy. The hierarchy, which prioritizes the inputs used in measuring fair value, consists of three levels. Level 1 uses observable inputs such as quoted prices in active markets; Level 2 uses inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, which is defined as unobservable inputs in which little or no market data exists, requires the Company to develop its own assumptions. The carrying amount of debt on the Consolidated Balance Sheets approximates fair value due to variable interest rate pricing, and the carrying amounts for cash, accounts receivable and accounts payable approximate fair value due to their short-term nature. Investment assets, which fund the Company’s non-qualified deferred compensation plan, consist of mutual funds and are valued based on Level 1 inputs. At September 27, 2014 and March 29, 2014, investment assets totaled $0.9 million and $0.8 million, respectively, and are included as a component of other assets (non-current) on the Consolidated Balance Sheets.

Stock-Based Compensation: The Company measures the cost of services received in exchange for all equity awards granted, including stock options and restricted stock units, based on the fair market value of the award as of the grant date. The Company records compensation cost related to unvested equity awards by recognizing, on a straight-line basis, the unamortized grant date fair value over the remaining service period of each award. Excess tax benefits from the exercise of equity awards are presented in the Consolidated Statements of Cash Flows as a financing activity. Excess tax benefits are realized benefits from tax deductions for exercised awards in excess of the deferred tax asset attributable to stock-based compensation costs for such awards. The Company did not capitalize any stock-based compensation costs as part of an asset. The Company estimates forfeiture rates based on its historical experience. During the first six months of the fiscal year ending March 28, 2015 (“fiscal year 2015”) and the first six months of fiscal year 2014, the Company recorded non-cash stock-based compensation cost of $0.4 million and $0.3 million, respectively, in the Consolidated Statements of Income.

Foreign Currency Translation and Transactions: The accounts of Transmation (Canada) Inc., a wholly-owned subsidiary of the Company, are maintained in the local currency and have been translated to U.S. dollars. Accordingly, the amounts representing assets and liabilities have been translated at the period-end rates of exchange and related revenue and expense accounts have been translated at an average rate of exchange during the period. Gains and losses arising from translation of Transmation (Canada) Inc.’s balance sheets into U.S. dollars are recorded directly to the accumulated other comprehensive income component of shareholders’ equity.

Transcat records foreign currency gains and losses on Canadian business transactions. The net foreign currency loss was less than $0.1 million in the first six months of fiscal years 2015 and 2014. The Company utilizes foreign exchange forward contracts to reduce the risk that its earnings will be adversely affected by changes in currency exchange rates. The Company does not apply hedge accounting and therefore the change in the fair value of the contracts, which totaled a gain of less than $0.1 million during the first six months of fiscal years 2015 and 2014, was recognized as a component of other expense in the Consolidated Statements of Income. The change in the fair value of the contracts is offset by the change in fair value on the underlying accounts receivables denominated in Canadian dollars being hedged. On September 27, 2014, the Company had a foreign exchange contract outstanding in the notional amount of $7.5 million. The Company does not use hedging arrangements for speculative purposes.

6

Earnings Per Share: Basic earnings per share of common stock are computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share of common stock reflect the assumed conversion of stock options and unvested restricted stock units using the treasury stock method in periods in which they have a dilutive effect. In computing the per share effect of assumed conversion, funds which would have been received from the exercise of options and unvested restricted stock units and the related tax benefits are considered to have been used to purchase shares of common stock at the average market prices during the period, and the resulting net additional shares of common stock are included in the calculation of average shares of common stock outstanding.

The average shares outstanding used to compute basic and diluted earnings per share are as follows:

	Second Quarter Ended				Six Months Ended
	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Average Shares Outstanding – Basic		6,802		7,390		6,772		7,409
Effect of Dilutive Common Stock Equivalents		254		196		278		224
Average Shares Outstanding – Diluted		7,056		7,586		7,050		7,633
Anti-dilutive Common Stock Equivalents		-		225		-		325

NOTE 2 – DEBT

Description: Transcat, through its credit agreement (the “Credit Agreement”), has a revolving credit facility which allows for maximum borrowings of $30.0 million (the “Revolving Credit Facility”). As of September 27, 2014, $27.1 million was available under the Revolving Credit Facility, of which $16.3 million was outstanding and included in long-term debt on the Consolidated Balance Sheet.

Effective August 26, 2014, the Company entered into an amendment (the “Amendment”) to its Credit Agreement. The Amendment increased the maximum amount of the Revolving Credit Facility from $20.0 million to $30.0 million, increased the amount of borrowings that may be used for business acquisitions from $10.0 million per fiscal year to $15.0 million per fiscal year and extended the maturity date to September 20, 2018. All other material terms and conditions of the Credit Agreement remain unchanged.

As of September 27, 2014, $6.7 million of the $15.0 million of borrowings available for business acquisitions in fiscal year 2015 had been utilized, and $8.3 million remained available for the remainder of the fiscal year.

Interest and Other Costs: Interest on the Revolving Credit Facility accrues, at Transcat’s election, at either the one-month London Interbank Offered Rate (“LIBOR”), adjusting daily, or a fixed rate for a designated period at the LIBOR corresponding to such period, in each case, plus a margin. Commitment fees accrue based on the average daily amount of unused credit available on the Revolving Credit Facility. Interest rate margins and commitment fees are determined on a quarterly basis based upon the Company’s calculated leverage ratio, as defined in the Credit Agreement. The one-month LIBOR as of September 27, 2014 was 0.2%. The Company’s interest rate for the first six months of fiscal year 2015 ranged from 1.1% to 1.7%.

Covenants: The Credit Agreement has certain covenants with which the Company has to comply, including a fixed charge ratio covenant and a leverage ratio covenant. The Company was in compliance with all loan covenants and requirements throughout the first six months of fiscal year 2015.

Other Terms: The Company has pledged all of its U.S. tangible and intangible personal property, the equity interests of its U.S.-based subsidiaries, and a majority of the common stock of Transmation (Canada) Inc. as collateral security for the loans made under the Revolving Credit Facility.

NOTE 3 – STOCK-BASED COMPENSATION

The Transcat, Inc. 2003 Incentive Plan, as Amended and Restated (the “2003 Plan”), provides for, among other awards, grants of restricted stock units and stock options to directors, officers and key employees at the fair market value at the date of grant. At September 27, 2014, the number of shares available for future grant under the 2003 Plan totaled 1.4million.

Restricted Stock: The Company grants performance-based restricted stock units as a primary component of executive compensation. The units generally vest following the third fiscal year from the date of grant subject to certain cumulative diluted earnings per share growth targets over the eligible period. Compensation cost ultimately recognized for performance-based restricted stock units will equal the grant date fair market value of the unit that coincides with the actual outcome of the performance conditions. On an interim basis, the Company records compensation cost based on an assessment of the probability of achieving the performance conditions.

7

The Company achieved 114% of the target level for the performance-based restricted stock units granted in the fiscal year ended March 31, 2012 (“fiscal year 2012”) and as a result, issued 42 thousand shares of common stock to executive officers and certain key employees during the first quarter of fiscal year 2015. The following table summarizes the non-vested performance-based restricted stock units outstanding as of September 27, 2014:

Date Granted	Measurement Period				Total Number of Units Granted		Grant Date Fair Value Per Unit		Estimated Probability of Achievement at September 27, 2014
April 2012		April 2012	-	March 2015		24	$	13.11		100% of target level
April 2013		April 2013	-	March 2016		102	$	6.17		100% of target level
April 2014		April 2014	-	March 2017		64	$	9.28		100% of target level

Total expense relating to performance-based restricted stock units, based on grant date fair value and the achievement criteria, in the first six months of fiscal years 2015 and 2014 was $0.3 million and $0.2 million, respectively. As of September 27, 2014, unearned compensation, to be recognized over the grants’ remaining respective service periods, totaled $0.9 million.

During the first quarter of fiscal year 2015, the Company’s Board of Directors granted its Executive Chairman a stock award of ten thousand shares of common stock under the 2003 Plan. The award vested 50% on July 1, 2014, and the remaining 50% will vest on July 1, 2015.  During the second quarter of fiscal year 2015, the Company’s Board of Directors granted a stock award of two thousand shares of common stock under the 2003 Plan to a retiring board member. The award vested in the second quarter of fiscal year 2015. Total expense relating to these stock awards, based on grant date fair value, was less than $0.1 million in the first six months of fiscal year 2015. As of September 27, 2014, the unrecognized compensation cost for these awards expected to be recognized over the next nine months was less than $0.1 million.

Stock Options: Options generally vest over a period of up to four years, using either a graded schedule or on a straight-line basis, and expire ten years from the date of grant. The expense relating to options is recognized on a straight-line basis over the requisite service period for the entire award.

The following table summarizes the Company’s options as of and for the second quarter ended September 27, 2014:

	Number of Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding as of March 29, 2014		609		$	6.58
Exercised		(48	)		4.74
Outstanding as of September 27, 2014		561			6.73		4	$	1,306
Exercisable as of September 27, 2014		461			6.55		3		1,157

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the second quarter of fiscal year 2015 and the exercise price, multiplied by the number of in-the-money stock options) that would have been received by the option holders had all holders exercised their options on September 27, 2014. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s stock.

During the first six months of fiscal years 2015 and 2014, total expense relating to stock options was less than $0.1 million. Total unrecognized compensation cost related to stock options as of September 27, 2014 was $0.3 million, which is expected to be recognized over a weighted average period of two years. The aggregate intrinsic value of stock options exercised in the second quarter of fiscal year 2015 was $0.2 million. Cash received from the exercise of options in the second quarter of fiscal year 2015 was $0.2 million.

8

NOTE 4 – SEGMENT INFORMATION

Transcat has two reportable segments: Distribution and Service. The Company has no inter-segment sales. The following table presents segment information for the second quarter and the six months ended September 27, 2014 and September 28, 2013:

	Second Quarter Ended				Six Months Ended
	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Total Revenue:
Distribution Sales	$	18,516	$	17,410	$	35,497	$	34,381
Service Revenue		12,595		11,472		24,733		23,211
Total		31,111		28,882		60,230		57,592
Gross Profit:
Distribution		3,654		4,113		7,386		8,131
Service		3,272		2,708		6,209		5,904
Total		6,926		6,821		13,595		14,035
Operating Expenses:
Distribution (1)		2,803		3,092		6,043		6,419
Service (1)		2,607		2,448		5,277		5,183
Total		5,410		5,540		11,320		11,602
Operating Income:
Distribution		851		1,021		1,343		1,712
Service		665		260		932		721
Total		1,516		1,281		2,275		2,433
Unallocated Amounts:
Interest and Other Expense, net		138		68		183		72
Provision for Income Taxes		519		442		788		869
Total		657		510		971		941
Net Income	$	859	$	771	$	1,304	$	1,492

(1)  Operating expense allocations between segments were based on actual amounts, a percentage of revenues, headcount, and management’s estimates.

9

NOTE 5 – BUSINESS ACQUISITIONS

On August 29, 2014, Transcat, through Transmation (Canada) Inc., acquired, effective as of August 31, 2014, Ulrich Metrology Inc. (“Ulrich”), pursuant to a Share Purchase Agreement for a cash purchase price of approximately $6.7 million, net of $0.1 million cash acquired.

Ulrich is a provider of accredited and commercial calibrations headquartered in Montreal, Quebec that specializes in providing custom metrology solutions for the aerospace and defense, industrial manufacturing and life science industries.

This transaction aligns with the Company’s acquisition strategy of targeting service businesses that expand the Company’s geographic reach and leverage its infrastructure while also increasing the depth and breadth of the Company’s service capabilities.

The acquisition was accounted for using the acquisition method of accounting. Goodwill, calculated as the excess of the purchase price paid over the fair value of the underlying net assets of the business acquired, generally represents expected future economic benefits arising from the reputation of the acquired business, the assembled workforce, expected synergies and other assets acquired that could not be individually identified and separately recognized. Other intangible assets, namely customer base and covenants not to compete, represent an allocation of a portion of the purchase price to identifiable intangible assets of the acquired businesses. Intangible assets are being amortized for financial reporting purposes on an accelerated basis over the estimated useful life of up to 10 years. Goodwill and the intangible assets relating to the Ulrich acquisition are not deductible for tax purposes.

The following is a summary of the preliminary purchase price allocation to the estimated fair value of assets and liabilities acquired. These estimates may be revised based on working capital adjustments or other information related to the Ulrich acquisition.

Goodwill	$	3,980
Intangible Assets – Customer Base		2,179
Intangible Assets – Covenants Not to Compete		114
Deferred Tax Liability		(685	)
		5,588
Plus: Current Assets		937
Non-Current Assets		379
Less: Current Liabilities		(223	)
Total Purchase Price	$	6,681

Acquisition costs of $0.1 million were recorded as incurred, during the first six months of fiscal year 2015, as administrative expenses in the Consolidated Statement of Income.

The results of Ulrich are included in Transcat’s consolidated operating results as of the date the business was acquired. The following unaudited pro forma information presents the Company’s results of operations as if the Ulrich acquisition had occurred at the beginning of the respective fiscal year. The pro forma results do not purport to represent what the Company’s results of operations actually would have been if the transaction had occurred at the beginning of each period presented or what the Company’s operating results will be in future periods.

	(Unaudited)
	Six Months Ended
	September 27, 2014		September 28, 2013
Total Revenue	$	61,901	$	59,133
Net Income		1,408		1,649
Basic Earnings Per Share		0.21		0.22
Diluted Earnings Per Share		0.20		0.22

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements. This report contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. These statements relate to expectations, estimates, beliefs, assumptions and predictions of future events and are identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “projects,” “intends,” “could,” “may” and other similar words. Forward-looking statements are not statements of historical fact and thus are subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or those expressed in such forward-looking statements. You should evaluate forward-looking statements in light of important risk factors and uncertainties that may affect our operating and financial results and our ability to achieve our financial objectives. These factors include, but are not limited to, our reliance on one vendor to supply a significant amount of inventory purchases, the risks related to current and future indebtedness, the relatively low trading volume of our common stock, risks related to our acquisition strategy and the integration of the businesses we acquire, the impact of economic conditions, the highly-competitive nature of our two business segments, and cybersecurity risks. These risk factors and uncertainties are more fully described by us under the heading “Risk Factors” in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 29, 2014. You should not place undue reliance on our forward-looking statements. Except as required by law, we undertake no obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this report, whether as a result of new information, future events or otherwise.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

There have been no material changes to our critical accounting policies and estimates from the information provided in our Annual Report on Form 10-K for the fiscal year ended March 29, 2014.

RESULTS OF OPERATIONS

The following table presents, for the second quarter and first six months of fiscal years 2015 and 2014, the components of our Consolidated Statements of Income:

	(Unaudited)						(Unaudited)
	Second Quarter Ended						Six Months Ended
	September 27,			September 28,			September 27,			September 28,
	2014			2013			2014			2013
Gross Profit Percentage:
Distribution Gross Profit		19.7	%		23.6	%		20.8	%		23.6	%
Service Gross Profit		26.0	%		23.6	%		25.1	%		25.4	%
Total Gross Profit		22.3	%		23.6	%		22.6	%		24.4	%
As a Percentage of Total Revenue:
Distribution Sales		59.5	%		60.3	%		58.9	%		59.7	%
Service Revenue		40.5	%		39.7	%		41.1	%		40.3	%
Total Revenue		100.0	%		100.0	%		100.0	%		100.0	%
Selling, Marketing and Warehouse Expenses		10.2	%		11.4	%		11.5	%		12.1	%
Administrative Expenses		7.2	%		7.8	%		7.3	%		8.1	%
Total Operating Expenses		17.4	%		19.2	%		18.8	%		20.2	%
Operating Income		4.9	%		4.4	%		3.8	%		4.2	%
Interest and Other Expense, net		0.5	%		0.2	%		0.3	%		0.1	%
Income Before Income Taxes		4.4	%		4.2	%		3.5	%		4.1	%
Provision for Income Taxes		1.6	%		1.5	%		1.3	%		1.5	%
Net Income		2.8	%		2.7	%		2.2	%		2.6	%

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SECOND QUARTER ENDED SEPTEMBER 27, 2014 COMPARED TO SECOND QUARTER ENDED SEPTEMBER 28, 2013 (dollars in thousands):

Revenue:

	Second Quarter Ended
	September 27,		September 28,		Change
	2014		2013		$		%
Revenue:
Service	$	12,595	$	11,472	$	1,123		9.8	%
Distribution		18,516		17,410		1,106		6.4	%
Total	$	31,111	$	28,882	$	2,229		7.7	%

Total revenue increased $2.2 million, or 7.7%, from the second quarter of fiscal year 2014 to the second quarter of fiscal year 2015.

Service revenue increased $1.1 million, or 9.8%, from the second quarter of fiscal year 2014 to the second quarter of fiscal year 2015. This year-over-year growth is primarily the result of the retention of revenue from existing customers as well as customer base expansion, which we achieved through business development activities.

Our fiscal years 2015 and 2014 Service revenue growth, in relation to prior fiscal year quarter comparisons, was as follows:

	FY 2015						FY 2014
	Q2			Q1			Q4			Q3			Q2			Q1
Service Revenue Growth		9.8	%		3.4	%		10.3	%		16.5	%		16.6	%		34.4	%

Within any quarter, while we add new customers, we also have customers from the prior year whose service orders may not repeat for any number of reasons. Among those reasons are variations in the timing of periodic calibrations and other services, customer capital expenditures and customer outsourcing decisions. Because the timing of Service segment orders can vary on a quarter-to-quarter basis, we believe a trailing twelve-month trend provides a better indication of the long-term progress of this segment. The following table presents the trailing twelve-month Service segment revenue for each quarter in fiscal years 2015 and 2014 as well as the trailing twelve-month revenue growth as a comparison to that of the prior fiscal year period:

	FY 2015						FY 2014
	Q2			Q1			Q4			Q3			Q2			Q1
Trailing Twelve-Month:
Service Revenue	$	49,706		$	48,583		$	48,184		$	46,926		$	45,294		$	43,662
Service Revenue Growth		9.7	%		11.3	%		18.5	%		19.9	%		18.1	%		18.9	%

Within the calibration industry, there is a broad array of measurement disciplines making it costly and inefficient for any one provider to invest the needed capital for the facilities, equipment and uniquely trained personnel necessary to address all measurement disciplines with in-house calibration capabilities. Our strategy has been to focus our investments in the core electrical, temperature, pressure and dimensional disciplines. Accordingly, over the long-term, we expect to outsource 10% to 20% of Service revenue to third party vendors for calibration beyond our chosen scope of capabilities. During any individual quarter, we could fluctuate beyond these percentages. We continually evaluate our outsourcing needs and make capital investments, as deemed necessary, to add more in-house capabilities and reduce the need for third party vendors. The following table presents the sources of our Service revenue and the percentage of Service revenue derived from each source for each quarter of fiscal years 2015 and 2014:

	FY 2015						FY 2014
	Q2			Q1			Q4			Q3			Q2			Q1
Percent of Service Revenue:
In-House		81.6	%		82.8	%		83.4	%		82.7	%		81.9	%		83.7	%
Outsourced		16.5	%		15.1	%		14.5	%		15.3	%		15.9	%		14.2	%
Freight Billed to Customers		1.9	%		2.1	%		2.1	%		2.0	%		2.2	%		2.1	%
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

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Our Distribution sales accounted for 59.5% of our total revenue in the second quarter of fiscal year 2015 and 60.3% of our total revenue in the second quarter of fiscal year 2014. Distribution sales in the second quarter of fiscal year 2015 were $18.5 million, a 6.4% improvement over the second quarter of fiscal year 2014. We attribute this growth to competitive pricing strategies used to gain volume and market share. Our fiscal years 2015 and 2014 Distribution sales growth (decline), in relation to prior fiscal year quarter comparisons, was as follows:

	FY 2015						FY 2014
	Q2			Q1			Q4			Q3			Q2			Q1
Distribution Sales Growth (Decline)		6.4	%		0.1	%		(10.3	%)		(2.3	%)		2.7	%		3.7	%

Distribution sales in any given period may vary based on the number of business days within that period. To normalize this variability, we review Distribution sales on a per business day basis when comparing sales in two or more periods. Our Distribution sales per business day for each quarter during fiscal years 2015 and 2014 were as follows:

	FY 2015				FY 2014
	Q2		Q1		Q4		Q3		Q2		Q1
Distribution Sales Per Business Day	$	299	$	265	$	265	$	311	$	281	$	265

Distribution orders include orders for instruments that we routinely stock in our inventory, customized products, and other products ordered less frequently, which we do not stock. Pending product shipments are primarily backorders, but also include products that are requested to be calibrated in our service centers prior to shipment, orders required to be shipped complete or at a future date, and other orders awaiting final credit or management review prior to shipment. Variations in pending product shipments can be impacted by several factors, including the timing of when product orders are placed in relation to the end of the fiscal period, specialized product orders that are not stocked, or production issues experienced by manufacturers. Our total pending product shipments at the end of the second quarter of fiscal year 2015 remained relatively consistent with the second quarter of fiscal year 2014. The following table presents our historical trend of total pending product shipments and the percentage of total pending product shipments that were backorders at the end of each quarter of fiscal years 2015 and 2014:

	FY 2015						FY 2014
	Q2			Q1			Q4			Q3			Q2			Q1
Total Pending Product Shipments	$	3,383		$	2,860		$	2,455		$	2,861		$	3,438		$	3,433
% of Pending Product Shipments
that were Backorders		69.0	%		64.1	%		69.1	%		71.2	%		63.8	%		68.7	%

Gross Profit:

	Second Quarter Ended
	September 27,		September 28,		Change
	2014		2013		$			%
Gross Profit:
Service	$	3,272	$	2,708	$	564			20.8	%
Distribution		3,654		4,113		(459	)		(11.2	%)
Total	$	6,926	$	6,821	$	105			1.5	%

Total gross profit in the second quarter of fiscal year 2015 increased $0.1 million, or 1.5%, from the second quarter of fiscal year 2014. Total gross margin in the second quarter of fiscal year 2015 decreased 130 basis points from the second quarter of fiscal year 2014.

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Service gross profit in the second quarter of fiscal year 2015 increased $0.6 million, or 20.8%, from the second quarter of fiscal year 2014. Service gross margin increased 240 basis points over the same quarter of the prior fiscal year to 26.0%. In general, our Service revenue growth provides incremental gross margin growth due to the operating leverage achieved through our relatively fixed cost structure in this segment. The following table presents the quarterly historical trend of our Service gross margin as a percent of Service revenue:

	FY 2015						FY 2014
	Q2			Q1			Q4			Q3			Q2			Q1
Service Gross Margin		26.0	%		24.2	%		31.4	%		23.4	%		23.6	%		27.2	%

We evaluate Distribution gross profit from two perspectives. Channel gross profit includes net sales less the direct cost of inventory sold. Our Distribution gross profit includes channel gross profit as well as the impact of vendor rebates, cooperative advertising income, freight billed to customers, freight expenses and direct shipping costs. In general, our Distribution gross margin can vary based upon the mix of products sold, price discounting and the timing of periodic vendor rebates and cooperative advertising income received from suppliers.

Distribution gross profit was $3.7 million in the second quarter of fiscal year 2015, a $0.5 million decline when compared to the second quarter of fiscal year 2014. As a percent of Distribution sales, Distribution gross margin declined to 19.7% in the second quarter of fiscal year 2015 compared with 23.6% in the second quarter of fiscal year 2014. The decrease in gross margin reflects increased price discounts extended to customers and lower vendor rebates. The following table reflects the quarterly historical trend of our Distribution gross margin as a percent of Distribution sales:

	FY 2015						FY 2014
	Q2			Q1			Q4			Q3			Q2			Q1
Channel Gross Margin (1)		19.8	%		19.5	%		20.4	%		19.7	%		20.2	%		20.5	%
Total Distribution Gross Margin (2)		19.7	%		22.0	%		25.9	%		23.4	%		23.6	%		23.7	%

(1) Channel gross margin is calculated as net sales less purchase costs divided by net sales.

(2) Includes vendor rebates, cooperative advertising income, freight billed to customers, freight expenses, and direct shipping costs.

Operating Expenses:

	Second Quarter Ended
	September 27,		September 28,		Change
	2014		2013		$			%
Operating Expenses:
Selling, Marketing and Warehouse	$	3,169	$	3,295	$	(126	)		(3.8	%)
Administrative		2,241		2,245		(4	)		(0.2	%)
Total	$	5,410	$	5,540	$	(130	)		(2.3	%)

Operating expenses decreased $0.1 million, or 2.3%, from the second quarter of fiscal year 2014 to the second quarter of fiscal year 2015. The decrease was primarily due to decreased selling expenses. As a percentage of total revenue, operating expenses were 17.4% and 19.2% in the second quarter of fiscal years 2015 and 2014, respectively.

Taxes:

	Second Quarter Ended
	September 27,		September 28,		Change
	2014		2013		$		%
Provision for Income Taxes	$	519	$	442	$	77		17.4	%

Our effective tax rates for the second quarter of fiscal years 2015 and 2014 were 37.7% and 36.4%, respectively. We continue to evaluate our tax provision on a quarterly basis and make adjustments, as deemed necessary, to our effective tax rate given changes in facts and circumstances expected for the entire fiscal year.

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SIX MONTHS ENDED SEPTEMBER 27, 2014 COMPARED TO SIX MONTHS ENDED SEPTEMBER 28, 2013 (dollars in thousands):

Revenue:

	Six Months Ended
	September 27,		September 28,		Change
	2014		2013		$		%
Revenue:
Service	$	24,733	$	23,211	$	1,522		6.6	%
Distribution		35,497		34,381		1,116		3.2	%
Total	$	60,230	$	57,592	$	2,638		4.6	%

Total revenue increased $2.6 million, or 4.6%, from the first six months of fiscal year 2014 to the first six months of fiscal year 2015.

Service revenue increased $1.5 million, or 6.6%, from the first six months of fiscal year 2014 to the first six months of fiscal year 2015. The growth is attributed primarily to higher organic revenue driven by retention and expansion of our customer base through business development activities.

Our Distribution sales accounted for 58.9% and 59.7% of our total revenue in the first six months of fiscal years 2015 and 2014, respectively. For the first six months of fiscal year 2015, Distribution sales increased $1.1 million, or 3.2%, compared with the first six months of fiscal year 2014.

Gross Profit:

	Six Months Ended
	September 27,		September 28,		Change
	2014		2013		$			%
Gross Profit:
Service	$	6,209	$	5,904	$	305			5.2	%
Distribution		7,386		8,131		(745	)		(9.2	%)
Total	$	13,595	$	14,035	$	(440	)		(3.1	%)

Total gross profit in the first six months of fiscal year 2015 decreased $0.4 million, or 3.1%, from the first six months of fiscal year 2014. Total gross margin decreased 180 basis points to 22.6% of total revenue in the first six months of fiscal year 2015 compared with 24.4% in the first six months of fiscal year 2014. The year-over-year reduction in gross margin was primarily due to lower Distribution segment vendor rebates which accounted for 170 basis points of the decline.

Service segment gross profit increased $0.3 million, or 5.2%, from the first six months of fiscal year 2014 to the first six months of fiscal year 2015. Service segment gross margin decreased 30 basis points over the same time period in the prior fiscal year to 25.1%.

Distribution segment gross profit decreased $0.7 million in the first six months of fiscal year 2015 to $7.4 million. Distribution segment gross margin decreased 280 basis points to 20.8% in the first six months of fiscal year 2015 compared to 23.6% in the first six months of fiscal year 2014. This decrease is primarily due to lower vendor rebates.

Operating Expenses:

	Six Months Ended
	September 27,		September 28,		Change
	2014		2013		$			%
Operating Expenses:
Selling, Marketing and Warehouse	$	6,904	$	6,996	$	(92	)		(1.3	%)
Administrative		4,416		4,606		(190	)		(4.1	%)
Total	$	11,320	$	11,602	$	(282	)		(2.4	%)

Operating expenses for the first six months of fiscal year 2015 were $11.3 million, a decrease of 2.4% from the first six months of fiscal year 2014. The decrease was primarily due to decreased administrative expenses resulting from lower employee-related expenses. As a percentage of total revenue, operating expenses during the first six months of fiscal year 2015 were 18.8%, compared to 20.2% in the first six months of fiscal year 2014.

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Taxes:

	Six Months Ended
	September 27,		September 28,		Change
	2014		2013		$			%
Provision for Income Taxes	$	788	$	869	$	(81	)		(9.3	)%

Our effective tax rates for the first six months of fiscal years 2015 and 2014 were 37.7% and 36.8%, respectively. We continue to evaluate our tax provision on a quarterly basis and make adjustments, as deemed necessary, to our effective tax rate given changes in facts and circumstances expected for the entire fiscal year.

LIQUIDITY AND CAPITAL RESOURCES

Through our credit agreement (the “Credit Agreement”), we have a revolving credit facility (the “Revolving Credit Facility”). Effective August 26, 2014, we entered into an amendment (the "Amendment") to the Credit Agreement. The Amendment increased the maximum amount of the Revolving Credit Facility from $20.0 million to $30.0 million, increased the amount of borrowings that may be used for business acquisitions from $10.0 million per fiscal year to $15.0 million per fiscal year and extended the maturity date to September 20, 2018. All other material terms and conditions of the Credit Agreement remain unchanged.

As of September 27, 2014, $27.1 million was available under the Revolving Credit Facility, of which $16.3 million was outstanding and included in long-term debt on the Consolidated Balance Sheet. During the first six months of fiscal year 2015, $6.7 million of the $15.0 million of borrowings available for business acquisitions in fiscal year 2015 was utilized, leaving $8.3 million available for the remainder of the fiscal year.

The Credit Agreement has certain covenants with which we have to comply, including a fixed charge ratio covenant and a leverage ratio covenant. We were in compliance with all loan covenants and requirements throughout the first six months of fiscal year 2015.

We believe that amounts available under our current credit facility and our cash on hand are sufficient to satisfy our expected working capital and capital expenditure needs as well as our lease commitments for the foreseeable future.

Cash Flows: The following table is a summary of our Consolidated Statements of Cash Flows (dollars in thousands):

	Six Months Ended
	September  27,			September 28,
	2014			2013
Cash (Used in) Provided by:
Operating Activities	$	(411	)	$	234
Investing Activities		(8,513	)		(313	)
Financing Activities		8,990			32

Operating Activities: Net cash used in operating activities was $0.4 million in the first six months of fiscal year 2015 compared to $0.2 million net cash provided by operating activities in first six months of fiscal year 2014. Significant working capital fluctuations in fiscal year 2015 were as follows:

· Inventory/Accounts Payable: Our inventory balance at September 27, 2014 was $7.5 million, up from $6.2 million at March 29, 2014. Our inventory strategy includes making appropriate large quantity, high dollar purchases with key manufacturers for various reasons, including maximizing on-hand availability of key products, reducing backorders for those products with long lead times and optimizing vendor volume discounts. As a result, inventory levels from quarter-to-quarter will vary based on the timing of these large orders in relation to the quarter-end. In general, our accounts payable balance increases or decreases as a result of timing of vendor payments for inventory receipts. However, this correlation may vary at a quarter-end due to the timing of vendor payments for inventory received and inventory shipped directly to customers, as well as the timing of Distribution sales.

· Receivables: Our days sales outstanding continue to reflect strong collections. Days sales outstanding for the six months ended September 27, 2014 increased to 43 days from 40 days in the comparable period of the prior fiscal year. This increase reflects the impact of extended payment terms offered by recently acquired companies. The following table illustrates our days sales outstanding for the fiscal quarters ended September 27, 2014 and September 28, 2013:

	September 27,		September 28,
	2014		2013
Net Sales, for the last two fiscal months	$	22,776	$	21,043
Accounts Receivable, net	$	16,345	$	13,933
Days Sales Outstanding		43		40

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· Accrued Compensation and Other Liabilities: Accrued Compensation and Other Liabilities include, among other things, amounts to be paid to employees for performance-based incentive plans. At the end of any particular period, the amounts accrued for such incentive plans may vary due to many factors including, but not limited to, changes in expected performance levels, the performance measurement period, and timing of payments to employees. During the first six months of fiscal year 2015, we used $2.1 million in cash primarily to make annual incentive plan payments compared with $1.0 million in the first six months of 2014.

Investing Activities: During the first six months of fiscal year 2015, we invested $6.7 million in a business acquisition and $1.9 million in capital expenditures. Net cash used for investing activities during the first six months of fiscal year 2014 consisted of $0.6 million for capital expenditures, offset by $0.2 million of proceeds from the sale of property and equipment. The capital expenditures in both fiscal periods were primarily for additional Service segment capabilities and information technology improvements, including our new state-of-the-art C3 Metrology Management Software.

Financing Activities: During the first six months of fiscal year 2015, financing activities provided approximately $9.0 million of net cash, primarily from our Revolving Credit Facility, which was used to pay for a business acquisition and to make annual performance-based incentive plan payments. During the first six months of fiscal year 2014, net cash provided by financing activities was less than $0.1 million and included $0.7 million from our revolving line of credit and $0.1 million from the issuance of common stock, offset by the use of $0.8 million to repurchase 0.1 million shares of our common stock.

OUTLOOK

We expect continued strength in our Service segment and believe our market leadership positions across both of our segments, along with strategic business acquisitions, will continue to foster meaningful growth.  On a consolidated basis, we expect to achieve strong operating income growth for the fiscal year.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

INTEREST RATES

Our exposure to changes in interest rates results from our borrowing activities. In the event interest rates were to move by 1%, our yearly interest expense would increase or decrease by $0.2 million assuming our average borrowing levels remained constant. As of September 27, 2014, $27.1 million was available under our credit facility, of which $16.3 million was outstanding and included in long-term debt on the Consolidated Balance Sheet.

We mitigate our interest rate risk by electing to borrow from our credit facility at the one-month LIBOR, adjusting daily, or at a fixed rate for a designated period at the LIBOR corresponding to such period, in each case, plus a margin. Our interest rate margin is determined on a quarterly basis based upon our calculated leverage ratio. As of September 27, 2014, the one-month LIBOR was 0.2%. Our interest rate for the first six months of fiscal year 2015 ranged from 1.1% to 1.7%. On September 27, 2014, we had no hedging arrangements in place to limit our exposure to upward movements in interest rates.

FOREIGN CURRENCY

Over 90% of our total revenues for the first six months of fiscal years 2015 and 2014 were denominated in U.S. dollars, with the remainder denominated in Canadian dollars. A 10% change in the value of the Canadian dollar to the U.S. dollar would impact our total revenue by less than 1%. We monitor the relationship between the U.S. and Canadian currencies on a monthly basis and adjust sales prices for products and services sold in Canadian dollars as we believe to be appropriate.

We utilize foreign exchange forward contracts to reduce the risk that future earnings would be adversely affected by changes in currency exchange rates. We do not apply hedge accounting and therefore, the change in the fair value of the contracts, which totaled a gain of less than $0.1 in the first six months of fiscal years 2015 and 2014, was recognized as a component of other expense in the Consolidated Statements of Income. The change in the fair value of the contracts is offset by the change in fair value on the underlying accounts receivables denominated in Canadian dollars being hedged. On September 27, 2014, we had a foreign exchange contract outstanding in the notional amount of $7.5 million. We do not use hedging arrangements for speculative purposes.

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ITEM 4. CONTROLS AND PROCEDURES

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures. Our principal executive officer and our principal financial officer evaluated our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this quarterly report. Disclosure controls and procedures are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to our principal executive officer and principal financial officer to allow timely decisions regarding required disclosure. Based on this evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were effective as of such date.

Changes in Internal Control over Financial Reporting. There has been no change in our internal control over financial reporting that occurred during the last fiscal quarter covered by this quarterly report (our second fiscal quarter) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ISSUER PURCHASES OF EQUITY SECURITIES

	(a)	(b)	(c)	(d)
Period	Total Number of Shares Purchased	Weighted Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (1)
3/30/2014-6/28/2014	7,311 (2)	$9.47 (2)	-	-
6/29/2014-9/27/2014	136 (2)	$10.57 (2)	-	-

(1)

We have an Executive Officer and Director Share Repurchase Plan (the “Plan”), which allows us to repurchase shares of our common stock from certain of our executive officers and directors, subject to certain conditions and limitations. The purchase price is determined by the weighted average closing price per share of our common stock on the NASDAQ Global Market over the twenty (20) trading days following our acceptance of the repurchase request and may not be more than 15% higher than the closing price on the last day of the twenty (20) trading day period. We may purchase shares of our common stock pursuant to the Plan on a continuous basis, but we may not expend more than $1.0 million in any fiscal year to repurchase the shares. Our board of directors may terminate the Plan at any time. No shares were repurchased under the Plan during the first six months of fiscal year 2015.

(2)

These shares were repurchased from employees of the Company in accordance with the Transcat, Inc. 2003 Incentive Plan and in connection with the exercise of options where the exercise price was paid through the tender of common stock that the employees otherwise owned.

ITEM 6. EXHIBITS

See Index to Exhibits.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	TRANSCAT, INC.
Date:  November 10, 2014	/s/ Lee D. Rudow
	Lee D. Rudow
	President and Chief Executive Officer (Principal Executive Officer)
Date:  November 10, 2014	/s/ John J. Zimmer
	John J. Zimmer
	Senior Vice President of Finance and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

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INDEX TO EXHIBITS

(10)	Material Contracts
	10.1	Credit Facility Agreement Amendment 1 dated as of August 26, 2014 by and among Transcat, Inc. and Manufacturers and Traders Trust Company
(31)	Rule 13a-14(a)/15d-14(a) Certifications
	31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
	31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(32)	Section 1350 Certifications
	32.1	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(101)	Interactive Data File
101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

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EX-10.1

Exhibit 10.1

CREDIT FACILITY AGREEMENT AMENDMENT 1

This CREDIT FACILITY AGREEMENT AMENDMENT 1 (“Amendment 1”) is made as of August 26, 2014, by and among TRANSCAT, INC. (“Borrower”), a corporation formed under the laws of the State of Ohio with offices at 35 Vantage Point Drive, Rochester, New York 14624, and MANUFACTURERS AND TRADERS TRUST COMPANY (“Lender”), a New York banking corporation, with offices at 255 East Avenue, Rochester, New York 14604.

WHEREAS, Borrower and Lender are parties to a Credit Facility Agreement dated September 20, 2012 (as amended, modified and supplemented from time to time, the “Credit Agreement”), pursuant to which the Lender has made certain loans and financial accommodations available to Borrower;

WHEREAS, Borrower has requested that the Lender amend the Credit Agreement, among others to increase the amount of the credit facilities and the Lender is willing to accommodate Borrower's request on the terms and conditions hereinafter set forth;

WHEREAS, Borrower is entering into this Amendment 1 with the understanding and agreement that, except as specifically provided herein, none of the Lender’s rights or remedies as set forth in the Credit Agreement or any other Loan Document is being waived or modified by the terms of this Amendment 1;

NOW, THEREFORE, in consideration of the agreements and provisions herein contained, effective on the Amendment 1 Effective Date (defined below), the parties hereby agree as follows:

1. Definitions. Any capitalized term used but not otherwise defined in this Amendment 1 shall have the meaning ascribed to such term in the Credit Agreement, and the interpretations set forth in the Credit Agreement shall apply to this Amendment 1.

2. Amendments to Credit Agreement. Subject to Section 3 below, effective on the Amendment 1 Effective Date, the Credit Agreement is hereby amended as follows:

(a) Section 1.1 of the Credit Agreement is hereby amended to add the following definitions:

“Amendment 1” means Credit Facility Agreement Amendment 1 made between Borrower and Lender effective as of the Amendment 1 Effective Date.

“Amendment 1 Effective Date” means August 26, 2014.

(b) Section 1.1 of the Credit Agreement is hereby amended to modify subsection (k) of the definition of “Permitted Acquisition” to read in its entirety as follows:

(k) no more than an aggregate of $15,000,000 of Acquisitions may be financed, directly or indirectly, with the Revolving Credit Facility in any Fiscal Year.

(c) Section 1.1 of the Credit Agreement is hereby amended to modify the following definition to read in its entirety as follows:

“Revolving Credit Termination Date” means September 20, 2018, or such later date as may be agreed by the Lender in its sole discretion in writing.

(d) Section 2.1 of the Credit Agreement is hereby amended to read in its entirety as follows:

2.1 Revolving Credit Commitment. The Lender agrees, subject to the terms and conditions of this Agreement, to make Revolving Credit Loans to the Borrower from time to time during the period from the Amendment 1 Effective Date up to but not including the Revolving Credit Termination Date in an aggregate principal amount not to exceed at any time outstanding Thirty Million Dollars ($30,000,000) (the “Revolving Credit Commitment”) minus the amount of then outstanding Letter of Credit Obligations. Expressly subject thereto, the Borrower may borrow, prepay pursuant to Section 3.3(b), and reborrow under this Section 2.1.

(e) The lead in paragraph of Section 3.6(a) is hereby amended to read in its entirety as follows:

(a) Change in Law. If the compliance with any guideline or request from any central bank or other Governmental Authority (whether or not having the force of law), treatment of the transactions contemplated by the Loan Documents as highly leveraged transactions, or any Change in Law shall:

(f) Section 7.8(a)(iv) of the Credit Agreement is hereby amended to read in its entirety as follows:

(iv) provided no Default has occurred that has not been waived in writing by the Lender, the Borrower may purchase stock of the Borrower and pay cash dividends; provided, however, such purchases and cash dividends shall not exceed (A) an aggregate amount of $10,000,000, and (B) an aggregate of $3,000,000 in any Fiscal Year.

(g) Exhibit B to the Credit Agreement is hereby amended to read in its entirety in the form of Exhibit B attached to Amendment 1.

3. Conditions to Effectiveness of this Amendment 1. This Amendment 1 is subject to satisfaction of each of the following conditions to the satisfaction of the Lender:

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(a) The Lender shall have received such Loan Documents as Lender may request, in form and substance satisfactory to the Lender, including an Amended and Restated Revolving Credit Note, Reaffirmation of Guaranties and Security Agreements, Reaffirmation and Supplement to Pledge Security Agreement, and United Scale & Engineering Corporation Stock Certificate and Stock Power.

(b) The Borrower and Loan Parties shall have delivered favorable customary opinions of their counsel, in form and substance satisfactory to the Lender.

(c) The Loan Parties shall have delivered the certificates of their respective corporate secretaries or authorized officers certifying as to (i) resolutions duly adopted by their boards of directors or other respective governing bodies authorizing the execution, delivery and performance of Amendment 1 and the related Loan Documents and the consummation of the transactions contemplated hereby and thereby, as applicable, which resolutions shall remain in full force and effect so long as any of the Obligations are outstanding and the Commitment has not been terminated, (ii) their Organizational Documents and (iii) the incumbency of the officers authorized to execute, deliver and perform Amendment 1 and the Loan Documents.

(d) The Loan Parties shall have paid (i) all filing fees and Taxes related to the Obligations and the perfection of any interests under the Security Documents and (ii) all other fees and expenses for which invoices have been presented (including the reasonable fees and expenses of legal counsel), on or before the Amendment 1 Effective Date.

(e) The Loan Parties and Transmation (Canada) Inc. shall have delivered to the Lender certificates of good standing from appropriate governmental officials to the effect that they respectively are validly subsisting in good standing in the jurisdictions of formation.

(f) The Borrower shall have delivered to the Lender evidence reasonably satisfactory to the Lender that its proposed acquisition of Ulrich Metrology Inc. qualifies as a Permitted Acquisition.

4. Representations and Warranties. In order to induce Lender to enter into this Amendment 1 and take the other actions provided for herein, Borrower represents and warrants to each Lender that the following statements are true and correct in all respects:

(a) Authority. Each of the Loan Parties has the requisite corporate power and authority to execute and deliver this Amendment 1 and any other Loan Documents delivered in connection therewith, and to perform its obligations hereunder and under such Loan Documents (as amended or modified hereby) to which it is a party. The execution, delivery and performance by each of the Loan Parties of this Amendment 1 and the other Loan Documents delivered in connection herewith have been duly approved by all necessary corporate or company action and no other corporate or company proceedings are necessary to consummate such transactions.

(b) Enforceability. This Amendment 1 and the related Loan Documents have been duly executed and delivered by the Loan Parties. This Amendment 1 and the related Loan Documents are the legal, valid and binding obligations of the Loan Parties, enforceable against each of them respectively in accordance with their terms, and are in full force and effect.

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(c) Representations and Warranties. The representations and warranties contained in the Credit Agreement and in this Amendment 1 are correct on and as of the date hereof as though made on and as of the date hereof other than such representations or warranties that, by their terms, are specifically made as of a date other than the date hereof, all of which shall have been true and correct as of the applicable stated date.

(d) Capitalization. Schedule 4(D) attached to this Amendment 1 sets forth, as of the Amendment 1 Effective Date, the capital structure of each Loan Party, including classes and, in the case of Subsidiaries, the identity of the registered and beneficial owner of the Equity Interests of each. All of the outstanding Equity Interests of Loan Parties are duly authorized, validly issued and fully paid. The Borrower or another Loan Party, as the case may be, has the unrestricted right to vote, and (subject to limitations imposed by applicable law) to receive all Restricted Payments with respect to, all Equity Interests indicated on Schedule 4(D) as owned by the Borrower, or such Loan Party. All Equity Interests and all existing (as of the date hereof) contracts, debentures, securities, rights, options, warrants, calls or similar commitments of any character calling for or relating to the issuance of, purchase or receipt of, or redemption or retirement of, Equity Interests of the Loan Parties are shown on Schedule 4(D). There is no agreement of holders of Equity Interests, repurchase or redemption agreement, contract, debenture, security, right, option, warrant, call or similar commitment of any character calling for or relating to the issuance of, purchase or receipt of, or redemption or retirement of, Equity Interests of any of the Loan Parties except as described in Schedule 4(D).

(e) Litigation. Except as set forth on Schedule 4(E), as of the date hereof there is no action, suit or proceeding at law or in equity by or before any court or any Governmental Authority pending or, to the knowledge of the Loan Parties threatened against or affecting the Loan Parties.

(f) No Contravention. The execution, delivery and performance of this Amendment 1 by the Borrower have received all necessary governmental approvals, if any, and do not contravene any law of contractual restrictions binding on Borrower.

(g) No Default. No event has occurred and is continuing that constitutes a Default or an Event of Default.

5. General Confirmations and Amendments.

(a) Continuing Effect. Except as specifically provided herein, the Credit Agreement and the other Loan Documents shall remain in full force and effect in accordance with their respective terms and are hereby ratified and confirmed in all respects.

(b) No Waiver. The execution, delivery and effectiveness of this Amendment 1 shall not, except as expressly provided herein, operate as a modification, acceptance or waiver of any right, power or remedy of the Lender under any of the Loan Documents, nor constitute a waiver of any provision of the Loan Documents, except as specifically set forth herein.

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(c) Reference to and Effect on the Loan Documents. Upon and after the effectiveness of this Amendment 1, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement,” “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified and amended hereby.

To the extent that any terms and conditions in any of the Loan Documents shall contradict or be in conflict with any terms or conditions of the Credit Agreement, after giving effect to this Amendment 1, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and conditions of the Credit Agreement as modified or amended hereby.

6. Miscellaneous.

(a) Governing Law. This Amendment 1 shall be governed by, and construed in accordance with, the internal laws of the State of New York.

(b) Severability. The provisions of this Amendment 1 are severable, and if any subsection or provision shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such clause or provision, or part thereof, in such jurisdiction and shall not in any manner affect such clause or provision in any other jurisdiction, or any other clause or provision in this Amendment 1 in any jurisdiction.

(c) Counterparts. This Amendment 1 may be executed in any number of counterparts, each of which counterparts when executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.

(d) Binding Effect; Assignment. This Amendment 1 shall be binding upon and inure to the benefit of Borrower and the Lender and their respective successors and assigns; provided, however, that the rights and obligations of Borrower under this Amendment 1 shall not be assigned or delegated without the prior written consent of the Lender.

IN WITNESS WHEREOF, the parties have caused this Amendment 1 to be executed by their duly authorized representatives by their signatures below as of the date first above written.

[Signature Pages Follow]

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MANUFACTURERS AND TRADERS TRUST COMPANY

By:	/s/ Curt S. Provenzo
	Curt S. Provenzo Vice President

TRANSCAT, INC.

By:	/s/ John J. Zimmer
	John J. Zimmer Senior Vice President of Finance, Chief Financial Officer and Corporate Secretary

Signature Page – Credit Facility Agreement 1

EXHIBIT B
FORM OF REVOLVING CREDIT NOTE

AMENDED AND RESTATED REVOLVING CREDIT NOTE

$30,000,000 August 26, 2014

This Amended and Restated Revolving Credit Note (“Note”) continues and evidences in part the obligations evidenced by, and amends, replaces and restates in its entirety, the Revolving Credit Note, dated September 20, 2012, made by Transcat, Inc. (“Borrower”), a corporation organized under the laws of the State of Ohio, in favor of Manufacturers and Traders Trust Company, a New York banking corporation (“Lender”).

Borrower, for value received, hereby promises to pay to the order of Lender, the principal sum of Thirty Million Dollars ($30,000,000) or if less, the amount of the Revolving Credit Loans loaned by the Lender to Borrower pursuant to the Credit Agreement (defined below), in lawful money of the United States of America and in immediately available funds, with interest on the unpaid principal balance hereof, for the period such balance is outstanding, at the rates of interest as provided in the Credit Agreement. Payments shall be due and payable on the dates and as provided in the Credit Agreement, with a final payment on the Revolving Credit Termination Date.

The date and amount of each Revolving Credit Loan made by the Lender to the Borrower under the Credit Agreement, and each payment of principal thereof, shall be recorded by the Lender on its books. The Lender’s records shall be presumed to be accurate absent manifest error.

This is a Revolving Credit Note referred to in that certain Credit Facility Agreement, dated as of September 20, 2012 by and between Borrower and Lender (as the same has been and in the future may be modified, supplemented and replaced from time to time, the “Credit Agreement”), and evidences the Revolving Credit Loans made thereunder. All capitalized terms not defined herein shall have the meanings given to them in the Credit Agreement, and the terms of the Credit Agreement applicable to this Note are incorporated herein.

Borrower waives presentment, notice of dishonor, protest and any other notice or formality with respect to this Note.

TRANSCAT, INC.

By:
	Senior Vice President of Finance, Chief Financial Officer and Corporate Secretary

Exhibit B

SCHEDULE 4(d)
EQUITY INTERESTS OF LOAN PARTIES AND RELATED MATTERS

As of August 6, 2014, 6,792,034 of the Borrower’s 30,000,000 authorized shares of common stock, par value $.50 per share, were issued and outstanding.

As of the Closing Date, the following subsidiaries are wholly-owned by the Borrower:

Transmation (Canada) Inc.

WTT Real Estate Acquisition, LLC

United Scale & Engineering Corporation

SCHEDULE 4(e)
LITIGATION

Quality Calibration Service, Inc. v. Transcat, Inc., Case No. 14CV868 (E.D. Wis.): On July 23, 2014, Quality Calibration Service, Inc. filed an action in the United States District Court for the Eastern District of Wisconsin alleging trademark infringement against Borrower. Borrower has not yet been served with the complaint, and the parties have been in discussions to attempt to resolve the matter.

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Lee D. Rudow, President and Chief Executive Officer of Transcat, Inc., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Transcat, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  November 10, 2014	/s/ Lee D. Rudow
	Lee D. Rudow
	President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John J. Zimmer, Senior Vice President of Finance and Chief Financial Officer of Transcat, Inc., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Transcat, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  November 10, 2014	/s/ John J. Zimmer
	John J. Zimmer
	Senior Vice President of Finance and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this quarterly report on Form 10-Q of Transcat, Inc., Lee D. Rudow, the Chief Executive Officer of Transcat, Inc. and John J. Zimmer, the Chief Financial Officer of Transcat, Inc. certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of their knowledge, that:

1. This quarterly report on Form 10-Q for the second quarter ended September 27, 2014 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in this quarterly report on Form 10-Q for the first quarter ended September 27, 2014 fairly presents, in all material respects, the financial condition and results of operations of Transcat, Inc.

Date: November 10, 2014	/s/ Lee D. Rudow
	Lee D. Rudow
	President and Chief Executive Officer (Principal Executive Officer)

Date:  November 10, 2014	/s/ John J. Zimmer
	John J. Zimmer
	Senior Vice President of Finance and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to Transcat, Inc. and will be retained by Transcat, Inc. and furnished to the SEC or its staff upon request.

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Note 4 - Segment Information (Details) - Segment Information (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014	Sep. 28, 2013
Segment Reporting Information [Line Items]
Revenue	$ 31,111	$ 28,882	$ 60,230	$ 57,592
Gross Profit	6,926	6,821	13,595	14,035
Operating Expenses	5,410	5,540	11,320	11,602
Operating Income	1,516	1,281	2,275	2,433
Interest and Other Expense, net	138	68	183	72
Provision for Income Taxes	519	442	788	869
Total	657	510	971	941
Net Income	859	771	1,304	1,492
Distribution Sales [Member]
Segment Reporting Information [Line Items]
Revenue	18,516	17,410	35,497	34,381
Gross Profit	3,654	4,113	7,386	8,131
Operating Expenses	2,803	3,092	6,043	6,419
Operating Income	851	1,021	1,343	1,712
Service Segment [Member]
Segment Reporting Information [Line Items]
Revenue	12,595	11,472	24,733	23,211
Gross Profit	3,272	2,708	6,209	5,904
Operating Expenses	2,607	2,448	5,277	5,183
Operating Income	$ 665	$ 260	$ 932	$ 721

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Note 2 - Debt

6 Months Ended

Sep. 27, 2014

Disclosure Text Block [Abstract]

Long-term Debt [Text Block]

NOTE 2 – DEBT

Description: Transcat, through its credit agreement (the “Credit Agreement”), has a revolving credit facility which allows for maximum borrowings of $30.0 million (the “Revolving Credit Facility”). As of September 27, 2014, $27.1 million was available under the Revolving Credit Facility, of which $16.3 million was outstanding and included in long-term debt on the Consolidated Balance Sheet.

Effective August 26, 2014, the Company entered into an amendment (the “Amendment”) to its Credit Agreement. The Amendment increased the maximum amount of the Revolving Credit Facility from $20.0 million to $30.0 million, increased the amount of borrowings that may be used for business acquisitions from $10.0 million per fiscal year to $15.0 million per fiscal year and extended the maturity date to September 20, 2018. All other material terms and conditions of the Credit Agreement remain unchanged.

As of September 27, 2014, $6.7 million of the $15.0 million of borrowings available for business acquisitions in fiscal year 2015 had been utilized, and $8.3 million remained available for the remainder of the fiscal year.

Interest and Other Costs: Interest on the Revolving Credit Facility accrues, at Transcat’s election, at either the one-month London Interbank Offered Rate (“LIBOR”), adjusting daily, or a fixed rate for a designated period at the LIBOR corresponding to such period, in each case, plus a margin. Commitment fees accrue based on the average daily amount of unused credit available on the Revolving Credit Facility. Interest rate margins and commitment fees are determined on a quarterly basis based upon the Company’s calculated leverage ratio, as defined in the Credit Agreement. The one-month LIBOR as of September 27, 2014 was 0.2%. The Company’s interest rate for the first six months of fiscal year 2015 ranged from 1.1% to 1.7%.

Covenants: The Credit Agreement has certain covenants with which the Company has to comply, including a fixed charge ratio covenant and a leverage ratio covenant. The Company was in compliance with all loan covenants and requirements throughout the first six months of fiscal year 2015.

Other Terms: The Company has pledged all of its U.S. tangible and intangible personal property, the equity interests of its U.S.-based subsidiaries, and a majority of the common stock of Transmation (Canada) Inc. as collateral security for the loans made under the Revolving Credit Facility.

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Note 5 - Acquisitions (Details) - Unaudited Pro Form Information (USD $) In Thousands, except Per Share data, unless otherwise specified	6 Months Ended
	Sep. 27, 2014	Sep. 28, 2013
Unaudited Pro Form Information [Abstract]
Total Revenue	$ 61,901	$ 59,133
Net Income	$ 1,408	$ 1,649
Basic Earnings Per Share	$ 0.21	$ 0.22
Diluted Earnings Per Share	$ 0.20	$ 0.22

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Note 1 - General

6 Months Ended

Sep. 27, 2014

Disclosure Text Block [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE 1 – GENERAL

Description of Business: Transcat, Inc. (“Transcat” or the “Company”) is a leading provider of accredited calibration and compliance services and distributor of professional grade handheld test, measurement and control instrumentation. The Company is focused on providing services and products to highly regulated industries, particularly healthcare, which includes companies in the pharmaceutical, medical device and bioscience industries. Additional industries served include industrial manufacturing, energy and utilities, chemical manufacturing and other industries which require accuracy in their processes and confirmation of the capabilities of their equipment.

Basis of Presentation: Transcat’s unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8-03 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, the Consolidated Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments considered necessary for a fair presentation (consisting of normal recurring adjustments) have been included. The results for the interim periods are not necessarily indicative of what the results will be for the fiscal year. The accompanying Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements as of and for the fiscal year ended March 29, 2014 (“fiscal year 2014”) contained in the Company’s 2014 Annual Report on Form 10-K filed with the SEC.

Fair Value of Financial Instruments: Transcat has determined the fair value of debt and other financial instruments using a valuation hierarchy. The hierarchy, which prioritizes the inputs used in measuring fair value, consists of three levels. Level 1 uses observable inputs such as quoted prices in active markets; Level 2 uses inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, which is defined as unobservable inputs in which little or no market data exists, requires the Company to develop its own assumptions. The carrying amount of debt on the Consolidated Balance Sheets approximates fair value due to variable interest rate pricing, and the carrying amounts for cash, accounts receivable and accounts payable approximate fair value due to their short-term nature. Investment assets, which fund the Company’s non-qualified deferred compensation plan, consist of mutual funds and are valued based on Level 1 inputs. At September 27, 2014 and March 29, 2014, investment assets totaled $0.9 million and $0.8 million, respectively, and are included as a component of other assets (non-current) on the Consolidated Balance Sheets.

Stock-Based Compensation: The Company measures the cost of services received in exchange for all equity awards granted, including stock options and restricted stock units, based on the fair market value of the award as of the grant date. The Company records compensation cost related to unvested equity awards by recognizing, on a straight-line basis, the unamortized grant date fair value over the remaining service period of each award. Excess tax benefits from the exercise of equity awards are presented in the Consolidated Statements of Cash Flows as a financing activity. Excess tax benefits are realized benefits from tax deductions for exercised awards in excess of the deferred tax asset attributable to stock-based compensation costs for such awards. The Company did not capitalize any stock-based compensation costs as part of an asset. The Company estimates forfeiture rates based on its historical experience. During the first six months of the fiscal year ending March 28, 2015 (“fiscal year 2015”) and the first six months of fiscal year 2014, the Company recorded non-cash stock-based compensation cost of $0.4 million and $0.3 million, respectively, in the Consolidated Statements of Income.

Foreign Currency Translation and Transactions: The accounts of Transmation (Canada) Inc., a wholly-owned subsidiary of the Company, are maintained in the local currency and have been translated to U.S. dollars. Accordingly, the amounts representing assets and liabilities have been translated at the period-end rates of exchange and related revenue and expense accounts have been translated at an average rate of exchange during the period. Gains and losses arising from translation of Transmation (Canada) Inc.’s balance sheets into U.S. dollars are recorded directly to the accumulated other comprehensive income component of shareholders’ equity.

Transcat records foreign currency gains and losses on Canadian business transactions. The net foreign currency loss was less than $0.1 million in the first six months of fiscal years 2015 and 2014. The Company utilizes foreign exchange forward contracts to reduce the risk that its earnings will be adversely affected by changes in currency exchange rates. The Company does not apply hedge accounting and therefore the change in the fair value of the contracts, which totaled a gain of less than $0.1 million during the first six months of fiscal years 2015 and 2014, was recognized as a component of other expense in the Consolidated Statements of Income. The change in the fair value of the contracts is offset by the change in fair value on the underlying accounts receivables denominated in Canadian dollars being hedged. On September 27, 2014, the Company had a foreign exchange contract outstanding in the notional amount of $7.5 million. The Company does not use hedging arrangements for speculative purposes.

Earnings Per Share: Basic earnings per share of common stock are computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share of common stock reflect the assumed conversion of stock options and unvested restricted stock units using the treasury stock method in periods in which they have a dilutive effect. In computing the per share effect of assumed conversion, funds which would have been received from the exercise of options and unvested restricted stock units and the related tax benefits are considered to have been used to purchase shares of common stock at the average market prices during the period, and the resulting net additional shares of common stock are included in the calculation of average shares of common stock outstanding.

The average shares outstanding used to compute basic and diluted earnings per share are as follows:

	Second Quarter Ended				Six Months Ended
	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Average Shares Outstanding – Basic		6,802		7,390		6,772		7,409
Effect of Dilutive Common Stock Equivalents		254		196		278		224
Average Shares Outstanding – Diluted		7,056		7,586		7,050		7,633
Anti-dilutive Common Stock Equivalents		-		225		-		325

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Consolidated Statements of Income (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014	Sep. 28, 2013
Distribution Sales	$ 18,516	$ 17,410	$ 35,497	$ 34,381
Service Revenue	12,595	11,472	24,733	23,211
Total Revenue	31,111	28,882	60,230	57,592
Cost of Distribution Sales	14,862	13,297	28,111	26,250
Cost of Service Revenue	9,323	8,764	18,524	17,307
Total Cost of Revenue	24,185	22,061	46,635	43,557
Gross Profit	6,926	6,821	13,595	14,035
Selling, Marketing and Warehouse Expenses	3,169	3,295	6,904	6,996
Administrative Expenses	2,241	2,245	4,416	4,606
Total Operating Expenses	5,410	5,540	11,320	11,602
Operating Income	1,516	1,281	2,275	2,433
Interest and Other Expense, net	138	68	183	72
Income Before Income Taxes	1,378	1,213	2,092	2,361
Provision for Income Taxes	519	442	788	869
Net Income	$ 859	$ 771	$ 1,304	$ 1,492
Basic Earnings Per Share (in Dollars per share)	$ 0.13	$ 0.10	$ 0.19	$ 0.20
Average Shares Outstanding (in Shares)	6,802	7,390	6,772	7,409
Diluted Earnings Per Share (in Dollars per share)	$ 0.12	$ 0.10	$ 0.18	$ 0.20
Average Shares Outstanding (in Shares)	7,056	7,586	7,050	7,633

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Sep. 27, 2014	Sep. 28, 2013
Cash Flows from Operating Activities:
Net Income	$ 1,304	$ 1,492
Adjustments to Reconcile Net Income to Net Cash (Used in) Provided by Operating Activities:
Loss (Gain) on Disposal of Property and Equipment	4	(31)
Deferred Income Taxes	409	(88)
Depreciation and Amortization	1,371	1,440
Provision for Accounts Receivable and Inventory Reserves	48	101
Stock-Based Compensation Expense	389	257
Changes in Assets and Liabilities:
Accounts Receivable and Other Receivables	241	164
Inventory	(1,345)	(1,516)
Prepaid Expenses and Other Assets	(871)	(528)
Accounts Payable	1,026	(1,720)
Accrued Compensation and Other Liabilities	(2,081)	1,049
Income Taxes Payable	(906)	(386)
Net Cash (Used in) Provided by Operating Activities	(411)	234
Cash Flows from Investing Activities:
Purchases of Property and Equipment	(1,854)	(553)
Proceeds from Sale of Property and Equipment	22	240
Business Acquisition, net of cash acquired	(6,681)
Net Cash Used in Investing Activities	(8,513)	(313)
Cash Flows from Financing Activities:
Proceeds from Revolving Line of Credit, net	8,734	701
Issuance of Common Stock	327	111
Repurchase of Common Stock	(71)	(780)
Net Cash Provided by Financing Activities	8,990	32
Effect of Exchange Rate Changes on Cash	174	50
Net Increase in Cash	240	3
Cash at Beginning of Period	23	406
Cash at End of Period	263	409
Cash paid during the period for:
Interest	71	52
Income Taxes, net	$ 1,783	$ 1,340

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Note 3 - Stock-Based Compensation (Details) - Non-Vested Performance-Based Restricted Stock Units (USD $) In Thousands, except Per Share data, unless otherwise specified	Sep. 27, 2014
Performance Based Restricted Stock Awards Granted in April 2012 [Member]
Note 3 - Stock-Based Compensation (Details) - Non-Vested Performance-Based Restricted Stock Units [Line Items]
Total Number of Units Granted	24
Grant Date Fair Value Per Unit	$ 13.11
Performance Based Restricted Stock Awards Granted in April 2013 [Member]
Note 3 - Stock-Based Compensation (Details) - Non-Vested Performance-Based Restricted Stock Units [Line Items]
Total Number of Units Granted	102
Grant Date Fair Value Per Unit	$ 6.17
Performance Based Restricted Stock Awards Granted in April 2014 [Member]
Note 3 - Stock-Based Compensation (Details) - Non-Vested Performance-Based Restricted Stock Units [Line Items]
Total Number of Units Granted	64
Grant Date Fair Value Per Unit	$ 9.28

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Note 4 - Segment Information (Details) (USD $)	6 Months Ended	3 Months Ended	12 Months Ended
	Sep. 27, 2014	Sep. 27, 2014 Intersegment Eliminations [Member]	Mar. 28, 2014 Intersegment Eliminations [Member]
Note 4 - Segment Information (Details) [Line Items]
Number of Reportable Segments	2
Revenues		$ 0	$ 0

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Consolidated Statement of Shareholders' Equity (Unaudited) (USD $) In Thousands, except Share data	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Total
Balance at Mar. 29, 2014	$ 3,358	$ 11,387	$ 567	$ 14,771	$ 30,083
Balance (Shares) (in Shares) at Mar. 29, 2014	6,716,000				6,716,350
Issuance of Common Stock	29	298			327
Issuance of Common Stock (in Shares)	58,000
Repurchase of Common Stock	(4)	(24)		(43)	(71)
Repurchase of Common Stock (in Shares)	(8,000)
Stock-Based Compensation	25	364			389
Stock-Based Compensation (in Shares)	50,000
Other Comprehensive Loss			(167)		(167)
Net Income				1,304	1,304
Balance at Sep. 27, 2014	$ 3,408	$ 12,025	$ 400	$ 16,032	$ 31,865
Balance (Shares) (in Shares) at Sep. 27, 2014	6,816,000				6,815,894

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Consolidated Statements of Comprehensive Income (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014	Sep. 28, 2013
Net Income	$ 859	$ 771	$ 1,304	$ 1,492
Other Comprehensive (Loss) Income:
Currency Translation Adjustment	(170)	1	(180)	1
Unrecognized Prior Service Cost, net of tax	6	9	13	18
Unrecognized (Loss) Gain on Other Asset, net of tax	(13)	21		17
Total Other Comprehensive (Loss) Income	(177)	31	(167)	36
Comprehensive Income	$ 682	$ 802	$ 1,137	$ 1,528

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Note 5 - Acquisitions (Tables) (Ulrich Acquisition [Member])

6 Months Ended

Sep. 27, 2014

Ulrich Acquisition [Member]

Note 5 - Acquisitions (Tables) [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Goodwill	$	3,980
Intangible Assets – Customer Base		2,179
Intangible Assets – Covenants Not to Compete		114
Deferred Tax Liability		(685	)
		5,588
Plus: Current Assets		937
Non-Current Assets		379
Less: Current Liabilities		(223	)
Total Purchase Price	$	6,681

Business Acquisition, Pro Forma Information [Table Text Block]

	(Unaudited)
	Six Months Ended
	September 27, 2014		September 28, 2013
Total Revenue	$	61,901	$	59,133
Net Income		1,408		1,649
Basic Earnings Per Share		0.21		0.22
Diluted Earnings Per Share		0.20		0.22

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Document And Entity Information	6 Months Ended
	Sep. 27, 2014	Nov. 04, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	TRANSCAT INC
Document Type	10-Q
Current Fiscal Year End Date	--03-28
Entity Common Stock, Shares Outstanding		6,830,607
Amendment Flag	false
Entity Central Index Key	0000099302
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Sep. 27, 2014
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2

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Note 1 - General (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended					6 Months Ended
	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014 Other Expense [Member] Less Than [Member]	Sep. 28, 2013 Other Expense [Member] Less Than [Member]	Sep. 27, 2014 Foreign Exchange Contract [Member]	Sep. 27, 2014 Less Than [Member]	Sep. 28, 2013 Less Than [Member]	Sep. 27, 2014 Other Assets [Member]	Mar. 29, 2014 Other Assets [Member]
Note 1 - General (Details) [Line Items]
Investments								$ 0.9	$ 0.8
Allocated Share-based Compensation Expense	0.4	0.3
Foreign Currency Transaction Gain (Loss), Realized						(0.1)	(0.1)
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge			0.1	0.1
Derivative Asset, Notional Amount					$ 7.5

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Consolidated Balance Sheets (Current period unaudited) (USD $) In Thousands, unless otherwise specified	Sep. 27, 2014	Mar. 29, 2014
Current Assets:
Cash	$ 263	$ 23
Accounts Receivable, less allowance for doubtful accounts of $140 and $82 as of September 27, 2014 and March 29, 2014, respectively	16,345	15,663
Other Receivables	671	1,088
Inventory, net	7,513	6,181
Prepaid Expenses and Other Current Assets	1,682	1,180
Deferred Tax Asset	1,026	1,396
Total Current Assets	27,500	25,531
Property and Equipment, net	8,520	7,089
Goodwill	21,244	17,384
Intangible Assets, net	4,450	2,651
Other Assets	1,440	1,219
Total Assets	63,154	53,874
Current Liabilities:
Accounts Payable	8,133	7,132
Accrued Compensation and Other Liabilities	3,555	5,690
Income Taxes Payable		1,035
Total Current Liabilities	11,688	13,857
Long-Term Debt	16,327	7,593
Deferred Tax Liability	1,365	607
Other Liabilities	1,909	1,734
Total Liabilities	31,289	23,791
Shareholders' Equity:
Common Stock, par value $0.50 per share, 30,000,000 shares authorized; 6,815,894 and 6,716,350 shares issued and outstanding as of September 27, 2014 and March 29, 2014, respectively	3,408	3,358
Capital in Excess of Par Value	12,025	11,387
Accumulated Other Comprehensive Income	400	567
Retained Earnings	16,032	14,771
Total Shareholders' Equity	31,865	30,083
Total Liabilities and Shareholders' Equity	$ 63,154	$ 53,874

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Note 5 - Acquisitions

6 Months Ended

Sep. 27, 2014

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

NOTE 5 – BUSINESS ACQUISITIONS

On August 29, 2014, Transcat, through Transmation (Canada) Inc., acquired, effective as of August 31, 2014, Ulrich Metrology Inc. (“Ulrich”), pursuant to a Share Purchase Agreement for a cash purchase price of approximately $6.7 million, net of $0.1 million cash acquired.

Ulrich is a provider of accredited and commercial calibrations headquartered in Montreal, Quebec that specializes in providing custom metrology solutions for the aerospace and defense, industrial manufacturing and life science industries.

This transaction aligns with the Company’s acquisition strategy of targeting service businesses that expand the Company’s geographic reach and leverage its infrastructure while also increasing the depth and breadth of the Company’s service capabilities.

The acquisition was accounted for using the acquisition method of accounting. Goodwill, calculated as the excess of the purchase price paid over the fair value of the underlying net assets of the business acquired, generally represents expected future economic benefits arising from the reputation of the acquired business, the assembled workforce, expected synergies and other assets acquired that could not be individually identified and separately recognized. Other intangible assets, namely customer base and covenants not to compete, represent an allocation of a portion of the purchase price to identifiable intangible assets of the acquired businesses. Intangible assets are being amortized for financial reporting purposes on an accelerated basis over the estimated useful life of up to 10 years. Goodwill and the intangible assets relating to the Ulrich acquisition are not deductible for tax purposes.

The following is a summary of the preliminary purchase price allocation to the estimated fair value of assets and liabilities acquired. These estimates may be revised based on working capital adjustments or other information related to the Ulrich acquisition.

Goodwill	$	3,980
Intangible Assets – Customer Base		2,179
Intangible Assets – Covenants Not to Compete		114
Deferred Tax Liability		(685	)
		5,588
Plus: Current Assets		937
Non-Current Assets		379
Less: Current Liabilities		(223	)
Total Purchase Price	$	6,681

Acquisition costs of $0.1 million were recorded as incurred, during the first six months of fiscal year 2015, as administrative expenses in the Consolidated Statement of Income.

The results of Ulrich are included in Transcat’s consolidated operating results as of the date the business was acquired. The following unaudited pro forma information presents the Company’s results of operations as if the Ulrich acquisition had occurred at the beginning of the respective fiscal year. The pro forma results do not purport to represent what the Company’s results of operations actually would have been if the transaction had occurred at the beginning of each period presented or what the Company’s operating results will be in future periods.

	(Unaudited)
	Six Months Ended
	September 27, 2014		September 28, 2013
Total Revenue	$	61,901	$	59,133
Net Income		1,408		1,649
Basic Earnings Per Share		0.21		0.22
Diluted Earnings Per Share		0.20		0.22

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Note 4 - Segment Information

6 Months Ended

Sep. 27, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 4 – SEGMENT INFORMATION

Transcat has two reportable segments: Distribution and Service. The Company has no inter-segment sales. The following table presents segment information for the second quarter and the six months ended September 27, 2014 and September 28, 2013:

	Second Quarter Ended				Six Months Ended
	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Total Revenue:
Distribution Sales	$	18,516	$	17,410	$	35,497	$	34,381
Service Revenue		12,595		11,472		24,733		23,211
Total		31,111		28,882		60,230		57,592
Gross Profit:
Distribution		3,654		4,113		7,386		8,131
Service		3,272		2,708		6,209		5,904
Total		6,926		6,821		13,595		14,035
Operating Expenses:
Distribution (1)		2,803		3,092		6,043		6,419
Service (1)		2,607		2,448		5,277		5,183
Total		5,410		5,540		11,320		11,602
Operating Income:
Distribution		851		1,021		1,343		1,712
Service		665		260		932		721
Total		1,516		1,281		2,275		2,433
Unallocated Amounts:
Interest and Other Expense, net		138		68		183		72
Provision for Income Taxes		519		442		788		869
Total		657		510		971		941
Net Income	$	859	$	771	$	1,304	$	1,492

(1)  Operating expense allocations between segments were based on actual amounts, a percentage of revenues, headcount, and management’s estimates.

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Note 3 - Stock-Based Compensation (Details) - Stock Options (USD $) In Thousands, except Per Share data, unless otherwise specified	6 Months Ended
	Sep. 27, 2014
Stock Options [Abstract]
Number of Shares	609
Weighted Average Exercise Price Per Share	$ 6.58
Weighted Average Remaining Contractual Term (in years)	4 years
Exercisable as of September 27, 2014	461
Exercisable as of September 27, 2014	$ 6.55
Exercisable as of September 27, 2014	3 years
Exercisable as of September 27, 2014	$ 1,157
Exercised	(48)
Exercised	$ 4.74
Number of Shares	561
Weighted Average Exercise Price Per Share	$ 6.73
Aggregate Intrinsic Value	$ 1,306

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Note 1 - General (Details) - Weighted Average Shares Outstanding Used to Compute Basic and Diluted Earnings Per Share In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014	Sep. 28, 2013
Weighted Average Shares Outstanding Used to Compute Basic and Diluted Earnings Per Share [Abstract]
Average Shares Outstanding – Basic	6,802	7,390	6,772	7,409
Effect of Dilutive Common Stock Equivalents	254	196	278	224
Average Shares Outstanding – Diluted	7,056	7,586	7,050	7,633
Anti-dilutive Common Stock Equivalents		225		325

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Note 3 - Stock-Based Compensation (Tables)

6 Months Ended

Sep. 27, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

Date Granted	Measurement Period				Total Number of Units Granted		Grant Date Fair Value Per Unit		Estimated Probability of Achievement at September 27, 2014
April 2012		April 2012	-	March 2015		24	$	13.11		100% of target level
April 2013		April 2013	-	March 2016		102	$	6.17		100% of target level
April 2014		April 2014	-	March 2017		64	$	9.28		100% of target level

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	Number of Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding as of March 29, 2014		609		$	6.58
Exercised		(48	)		4.74
Outstanding as of September 27, 2014		561			6.73		4	$	1,306
Exercisable as of September 27, 2014		461			6.55		3		1,157

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Accounting Policies, by Policy (Policies)

6 Months Ended

Sep. 27, 2014

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation: Transcat’s unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8-03 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, the Consolidated Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments considered necessary for a fair presentation (consisting of normal recurring adjustments) have been included. The results for the interim periods are not necessarily indicative of what the results will be for the fiscal year. The accompanying Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements as of and for the fiscal year ended March 29, 2014 (“fiscal year 2014”) contained in the Company’s 2014 Annual Report on Form 10-K filed with the SEC.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments: Transcat has determined the fair value of debt and other financial instruments using a valuation hierarchy. The hierarchy, which prioritizes the inputs used in measuring fair value, consists of three levels. Level 1 uses observable inputs such as quoted prices in active markets; Level 2 uses inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, which is defined as unobservable inputs in which little or no market data exists, requires the Company to develop its own assumptions. The carrying amount of debt on the Consolidated Balance Sheets approximates fair value due to variable interest rate pricing, and the carrying amounts for cash, accounts receivable and accounts payable approximate fair value due to their short-term nature. Investment assets, which fund the Company’s non-qualified deferred compensation plan, consist of mutual funds and are valued based on Level 1 inputs. At September 27, 2014 and March 29, 2014, investment assets totaled $0.9 million and $0.8 million, respectively, and are included as a component of other assets (non-current) on the Consolidated Balance Sheets.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation: The Company measures the cost of services received in exchange for all equity awards granted, including stock options and restricted stock units, based on the fair market value of the award as of the grant date. The Company records compensation cost related to unvested equity awards by recognizing, on a straight-line basis, the unamortized grant date fair value over the remaining service period of each award. Excess tax benefits from the exercise of equity awards are presented in the Consolidated Statements of Cash Flows as a financing activity. Excess tax benefits are realized benefits from tax deductions for exercised awards in excess of the deferred tax asset attributable to stock-based compensation costs for such awards. The Company did not capitalize any stock-based compensation costs as part of an asset. The Company estimates forfeiture rates based on its historical experience. During the first six months of the fiscal year ending March 28, 2015 (“fiscal year 2015”) and the first six months of fiscal year 2014, the Company recorded non-cash stock-based compensation cost of $0.4 million and $0.3 million, respectively, in the Consolidated Statements of Income.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translation and Transactions: The accounts of Transmation (Canada) Inc., a wholly-owned subsidiary of the Company, are maintained in the local currency and have been translated to U.S. dollars. Accordingly, the amounts representing assets and liabilities have been translated at the period-end rates of exchange and related revenue and expense accounts have been translated at an average rate of exchange during the period. Gains and losses arising from translation of Transmation (Canada) Inc.’s balance sheets into U.S. dollars are recorded directly to the accumulated other comprehensive income component of shareholders’ equity.

Transcat records foreign currency gains and losses on Canadian business transactions. The net foreign currency loss was less than $0.1 million in the first six months of fiscal years 2015 and 2014. The Company utilizes foreign exchange forward contracts to reduce the risk that its earnings will be adversely affected by changes in currency exchange rates. The Company does not apply hedge accounting and therefore the change in the fair value of the contracts, which totaled a gain of less than $0.1 million during the first six months of fiscal years 2015 and 2014, was recognized as a component of other expense in the Consolidated Statements of Income. The change in the fair value of the contracts is offset by the change in fair value on the underlying accounts receivables denominated in Canadian dollars being hedged. On September 27, 2014, the Company had a foreign exchange contract outstanding in the notional amount of $7.5 million. The Company does not use hedging arrangements for speculative purposes.

Earnings Per Share, Policy [Policy Text Block]

Earnings Per Share: Basic earnings per share of common stock are computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share of common stock reflect the assumed conversion of stock options and unvested restricted stock units using the treasury stock method in periods in which they have a dilutive effect. In computing the per share effect of assumed conversion, funds which would have been received from the exercise of options and unvested restricted stock units and the related tax benefits are considered to have been used to purchase shares of common stock at the average market prices during the period, and the resulting net additional shares of common stock are included in the calculation of average shares of common stock outstanding.

The average shares outstanding used to compute basic and diluted earnings per share are as follows:

	Second Quarter Ended				Six Months Ended
	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Average Shares Outstanding – Basic		6,802		7,390		6,772		7,409
Effect of Dilutive Common Stock Equivalents		254		196		278		224
Average Shares Outstanding – Diluted		7,056		7,586		7,050		7,633
Anti-dilutive Common Stock Equivalents		-		225		-		325

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Note 1 - General (Tables)

6 Months Ended

Sep. 27, 2014

Disclosure Text Block [Abstract]

Schedule of Weighted Average Number of Shares [Table Text Block]

	Second Quarter Ended				Six Months Ended
	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Average Shares Outstanding – Basic		6,802		7,390		6,772		7,409
Effect of Dilutive Common Stock Equivalents		254		196		278		224
Average Shares Outstanding – Diluted		7,056		7,586		7,050		7,633
Anti-dilutive Common Stock Equivalents		-		225		-		325

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Note 4 - Segment Information (Tables)

6 Months Ended

Sep. 27, 2014

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Second Quarter Ended				Six Months Ended
	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Total Revenue:
Distribution Sales	$	18,516	$	17,410	$	35,497	$	34,381
Service Revenue		12,595		11,472		24,733		23,211
Total		31,111		28,882		60,230		57,592
Gross Profit:
Distribution		3,654		4,113		7,386		8,131
Service		3,272		2,708		6,209		5,904
Total		6,926		6,821		13,595		14,035
Operating Expenses:
Distribution (1)		2,803		3,092		6,043		6,419
Service (1)		2,607		2,448		5,277		5,183
Total		5,410		5,540		11,320		11,602
Operating Income:
Distribution		851		1,021		1,343		1,712
Service		665		260		932		721
Total		1,516		1,281		2,275		2,433
Unallocated Amounts:
Interest and Other Expense, net		138		68		183		72
Provision for Income Taxes		519		442		788		869
Total		657		510		971		941
Net Income	$	859	$	771	$	1,304	$	1,492

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Note 3 - Stock-Based Compensation (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended	6 Months Ended		3 Months Ended		0 Months Ended	3 Months Ended				6 Months Ended
	Sep. 27, 2014	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014 Restricted Stock [Member] Vesting July 1, 2015 [Member] Board of Directors Chairman [Member] 2003 Plan [Member]	Jun. 28, 2014 Restricted Stock [Member] Executive Officers and Certain Key Employees [Member]	Jul. 01, 2014 Restricted Stock [Member] Board of Directors Chairman [Member] 2003 Plan [Member]	Sep. 27, 2014 Restricted Stock [Member] Board of Directors Chairman [Member] 2003 Plan [Member]	Sep. 27, 2014 Restricted Stock [Member] Retiring Board Member [Member] 2003 Plan [Member]	Sep. 27, 2014 Restricted Stock [Member] 2003 Plan [Member]	Sep. 27, 2014 Restricted Stock [Member]	Sep. 27, 2014 Employee Stock Option [Member] Maximum [Member]	Sep. 27, 2014 Employee Stock Option [Member] Weighted Average [Member]	Sep. 27, 2014 Employee Stock Option [Member]	Sep. 27, 2014 2003 Plan [Member]
Note 3 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares)														1,400,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in Shares)					42,000
Restricted Stock or Unit Expense		$ 0.3	$ 0.2
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized									0.1	0.9
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares)							10,000	2,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage				50.00%		50.00%
Allocated Share-based Compensation Expense		0.4	0.3						0.1
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period											4 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period													10 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options													0.3
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition												2 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	0.2
Proceeds from Stock Options Exercised	$ 0.2

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Note 5 - Acquisitions (Details) (Ulrich Metrology Inc. [Member], USD $)	0 Months Ended
	Aug. 29, 2014
Ulrich Metrology Inc. [Member]
Note 5 - Acquisitions (Details) [Line Items]
Business Combination, Consideration Transferred	$ 6,700,000
Cash Acquired from Acquisition	100,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	10 years
Business Combination, Acquisition Related Costs	$ 100,000

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Consolidated Balance Sheets (Current period unaudited) (Parentheticals) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 27, 2014	Mar. 29, 2014
Accounts Receivable, allowance for doubtful accounts (in Dollars)	$ 140	$ 82
Common Stock, par value per share (in Dollars per share)	$ 0.50	$ 0.50
Common Stock, shares authorized	30,000,000	30,000,000
Common Stock, shares issued	6,815,894	6,716,350
Common Stock, shares outstanding	6,815,894	6,716,350

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Note 3 - Stock-Based Compensation

6 Months Ended

Sep. 27, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 3 – STOCK-BASED COMPENSATION

The Transcat, Inc. 2003 Incentive Plan, as Amended and Restated (the “2003 Plan”), provides for, among other awards, grants of restricted stock units and stock options to directors, officers and key employees at the fair market value at the date of grant. At September 27, 2014, the number of shares available for future grant under the 2003 Plan totaled 1.4 million.

Restricted Stock: The Company grants performance-based restricted stock units as a primary component of executive compensation. The units generally vest following the third fiscal year from the date of grant subject to certain cumulative diluted earnings per share growth targets over the eligible period. Compensation cost ultimately recognized for performance-based restricted stock units will equal the grant date fair market value of the unit that coincides with the actual outcome of the performance conditions. On an interim basis, the Company records compensation cost based on an assessment of the probability of achieving the performance conditions.

The Company achieved 114% of the target level for the performance-based restricted stock units granted in the fiscal year ended March 31, 2012 (“fiscal year 2012”) and as a result, issued 42 thousand shares of common stock to executive officers and certain key employees during the first quarter of fiscal year 2015. The following table summarizes the non-vested performance-based restricted stock units outstanding as of September 27, 2014:

Date Granted	Measurement Period				Total Number of Units Granted		Grant Date Fair Value Per Unit		Estimated Probability of Achievement at September 27, 2014
April 2012		April 2012	-	March 2015		24	$	13.11		100% of target level
April 2013		April 2013	-	March 2016		102	$	6.17		100% of target level
April 2014		April 2014	-	March 2017		64	$	9.28		100% of target level

Total expense relating to performance-based restricted stock units, based on grant date fair value and the achievement criteria, in the first six months of fiscal years 2015 and 2014 was $0.3 million and $0.2 million, respectively. As of September 27, 2014, unearned compensation, to be recognized over the grants’ remaining respective service periods, totaled $0.9 million.

During the first quarter of fiscal year 2015, the Company’s Board of Directors granted its Executive Chairman a stock award of ten thousand shares of common stock under the 2003 Plan. The award vested 50% on July 1, 2014, and the remaining 50% will vest on July 1, 2015.  During the second quarter of fiscal year 2015, the Company’s Board of Directors granted a stock award of two thousand shares of common stock under the 2003 Plan to a retiring board member. The award vested in the second quarter of fiscal year 2015. Total expense relating to these stock awards, based on grant date fair value, was less than $0.1 million in the first six months of fiscal year 2015. As of September 27, 2014, the unrecognized compensation cost for these awards expected to be recognized over the next nine months was less than $0.1 million.

Stock Options: Options generally vest over a period of up to four years, using either a graded schedule or on a straight-line basis, and expire ten years from the date of grant. The expense relating to options is recognized on a straight-line basis over the requisite service period for the entire award.

The following table summarizes the Company’s options as of and for the second quarter ended September 27, 2014:

	Number of Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding as of March 29, 2014		609		$	6.58
Exercised		(48	)		4.74
Outstanding as of September 27, 2014		561			6.73		4	$	1,306
Exercisable as of September 27, 2014		461			6.55		3		1,157

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the second quarter of fiscal year 2015 and the exercise price, multiplied by the number of in-the-money stock options) that would have been received by the option holders had all holders exercised their options on September 27, 2014. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s stock.

During the first six months of fiscal years 2015 and 2014, total expense relating to stock options was less than $0.1 million. Total unrecognized compensation cost related to stock options as of September 27, 2014 was $0.3 million, which is expected to be recognized over a weighted average period of two years. The aggregate intrinsic value of stock options exercised in the second quarter of fiscal year 2015 was $0.2 million. Cash received from the exercise of options in the second quarter of fiscal year 2015 was $0.2 million.

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Note 5 - Acquisitions (Details) - Preliminary Purchase Price Allocation: (USD $) In Thousands, unless otherwise specified					6 Months Ended
	Sep. 27, 2014	Mar. 29, 2014	Sep. 27, 2014 Customer Base [Member] Ulrich Acquisition [Member]	Sep. 27, 2014 Noncompete Agreements [Member] Ulrich Acquisition [Member]	Sep. 27, 2014 Ulrich Acquisition [Member]
Note 5 - Acquisitions (Details) - Preliminary Purchase Price Allocation: [Line Items]
Goodwill	$ 21,244	$ 17,384			$ 3,980
Intangible Assets			2,179	114
Deferred Tax Liability					(685)
					5,588
Plus: Current Assets					937
Non-Current Assets					379
Less: Current Liabilities					(223)
Total Purchase Price					$ 6,681

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Note 2 - Debt (Details) (Revolving Credit Facility [Member], USD $) In Millions, unless otherwise specified						6 Months Ended
	Sep. 27, 2014 Borrowngs for Business Acquisitions [Member] Amendment [Member]	Aug. 26, 2014 Borrowngs for Business Acquisitions [Member] Amendment [Member]	Aug. 25, 2014 Borrowngs for Business Acquisitions [Member] Credit Agreement [Member]	Sep. 27, 2014 Amendment [Member]	Aug. 25, 2014 Credit Agreement [Member]	Sep. 27, 2014 London Interbank Offered Rate (LIBOR) [Member]	Sep. 27, 2014
Note 2 - Debt (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 15.0	$ 10.0	$ 30.0	$ 20.0
Line of Credit Facility, Remaining Borrowing Capacity	8.3						27.1
Long-term Line of Credit	$ 6.7						$ 16.3
Debt Instrument, Basis Spread on Variable Rate						0.20%
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum							1.10%
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Maximum							1.70%