Slide 1: Third Quarter 2024 Earnings Results
Third Quarter 2024 Earnings Results Thursday, November 14th, 2024 NYSE American: BKTI
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement This press release contains statements about future events and expectations which are “forward-looking statements” within the meaning of Sections 27A of the Securities Act of 1933, as amended, and 21E of the Exchange Act.. These forward-looking statements concern the Company’
Slide 3: Third Quarter 2024 Highlights
3 Third Quarter 2024 Highlights Strong Operational Performance Completed Manufacturing Strong Order Activity for BKR 9000 Driving Consistent Profitability Transition Project to East West and BKR 5000 Radios Supporting Manufacturing Growth • Fifth consecutive quarter of improving • Transferred key BK
Slide 4: Improving Gross Margin
4 Improving Gross Margin Global Supply Chain Margin Recover/ Surpassing Target Margin Disruption Cost Reduction Levels of 35% 2022 (GM 19.3%) 2023 (GM 30.0%) 2024 45.0% 38.8% 37.3% 40.0% 35.1% 34.5% 35.0% 31.9% 30.0% 27.4% 26.1% 25.0% 22.4% 21.7% 18.8% 20.0% 14.2% 15.0% 10.0% 5.0% 0.0% Q1 Q2 Q3 Q4 Q
Slide 5: Cost Reduction Initiatives and Shifting Product Mix Driving Enhanced Revenue and Profitability
5 Cost Reduction Initiatives and Shifting Product Mix Driving Enhanced Revenue and Profitability Quarterly Revenue and Earnings Per Share Revising Financial Targets $ in millions 25 $0.80 • Raising FY ‘24 GAAP EPS target to exceed $1.65 per share $0.60 20 • Raising FY’ 24 non-GAAP adjusted EPS $0.40
Slide 6: Strong Order Activity for the BKR 9000 in 3Q24
6 Strong Order Activity for the BKR 9000 in 3Q24 BKR 9000 orders received in 3Q24 include: • Florida Forest Service • Missouri Department of Natural Resources – Fire • Minnesota Department of Natural Resources – Fire • Gallatin County Sheriff Dept. (MT) – Tier 3 County 3Q24 backlog of $27 million su
Slide 7: East West Manufacturing Transition is Complete
East West Manufacturing Transition is Complete • Final phase of transition completed in 3Q24 • Retained small core production team for BKR 9000 final assembly and test and to support production of low volume specialty products • New streamlined “build to order” BKR 9000 final assembly process can pr
Slide 8: Strong Financial Results
8 Strong Financial Results Income Statement Three Months Ended Nine Months Ended (in thousands) 9/30/24 9/30/23 9/30/24 9/30/23 Sales $20,179 $20,069 $58,664 $57,786 Gross Margin 38.8% 37.3% 35.9% 26.8% SG&A $5,225 $5,812 $16,052 $17,681 Operating Income (loss) $2,611 $594 $5,619 $(1,177) Net Income
Slide 9: Strengthened Balance Sheet Driven By Enhanced Operational Performance
9 Strengthened Balance Sheet Driven By Enhanced Operational Performance Working Capital Shareholders’ Equity 25 $22.7M 30 $26.0M 25 20 $16.8M $21.3M 20 15 15 10 10 5 5 Balance Sheet 0 0 12.31.23 9.30.24 12.31.23 9.30.24 Enhanced cash position, increased working capital and no long-term debt position
Slide 10: Raising Full Year 2024 Financial Targets
10 Raising Full Year 2024 Financial Targets • Revenue consistent with full year 2023 as gross margins improve related to cost reduction initiatives and shifting product mix • Raising FY ‘24 GAAP EPS target to exceed $1.65 per share from $1.50 • Raising FY’ 24 non-GAAP adjusted EPS target to $1.92 pe
Slide 11: Q&A
Q&A
Slide 12: Appendix
Appendix
Slide 13: Reconciliation of Non-GAAP Metrics
13 Reconciliation of Non-GAAP Metrics Three Months Ended Nine Months Ended Non-GAAP Adjusted EBITDA (in thousands) 9/30/24 9/30/23 9/30/24 9/30/23 Net Income/(Loss) $2,357 $90 $4,702 $(2,520) Adjustments to reconcile net income/(loss) to EBITDA Interest expense, net 1 131 281 429 Income tax provisio
Slide 14: BK Technologies
TECHNOLOGIES —_—