Slide 1: inTEST Corporation Q2 2024 Financial Results Conference Call
inTEST Corporation Q2 2024 Financial Results Conference Call Nick Grant, President and CEO Duncan Gilmour, CFO and Treasurer August 2, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements do not convey historical information but relate to predicted or potential future events and financial results, suc
Slide 3: Executing 5-Point Strategy in Challenging Times
Executing 5-Point Strategy in Challenging Times ➢ Effective execution of 5-Point Strategy … 5-Point Strategy ▪ Driving diversification to minimize the impact of cyclicality within various markets ▪ Leveraging innovation and application expertise Global & Innovation & Market Differentiation ➢ Second
Slide 4: Orders and Backlog
Orders and Backlog(1) ($ in millions) Orders Years Quarters ➢ Q2 orders down 17% y/y $129.6 $101.9 $116.6 $103.4 $31.4 ▪ $3.7 million decline from semi $26.2 $22.8 ▪ $2.8 million combined decline from industrial and defense/aerospace ➢ Sequentially, orders up 15% ▪ Back-end semi improvement more tha
Slide 5: Revenue
Revenue ($ in millions) Years Quarters ➢ Record Q2 2024 revenue, up $1.4 million y/y ▪ $9.7 million from Alfamation $123.3 $122.6 $32.6 $34.0 $116.8 $29.8 ▪ Auto/EV up $9.2 million, primarily from the $84.9 acquisition ▪ $8.7 million decline in semi sales ▪ Life sciences market up $1.1 million due t
Slide 6: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Years Quarters ➢ Q2 gross margin of 40.6% contracted 325 bps compared with Q1 2024 $57.0 $53.4 $53.8 $15.0 ▪ Margin contraction impacted by $13.1 $13.8 unfavorable product mix $41.2 ▪ Low volume in higher margin back-end Semi business ➢ Y/Y margin contraction
Slide 7: Operating Expenses
Operating Expenses Continuing to invest to support 5-Point Strategy for Growth ($ in millions) Operating expenses as a % of sales ➢ Q2 2024 operating expenses up $1.8 million versus Q2 2023 38.6% 36.6% 37.7% 40.2% 35.9% 42.2% 39.6% ▪ $2.4 million incremental operating Years Quarters expenses attribu
Slide 8: Earnings and Adjusted EBITDA
Earnings and Adjusted EBITDA(1) ($ in millions, except per share data) Net Earnings and Adjusted EBITDA/ (1) (1) EPS and Adjusted EPS Adjusted EBITDA Margin Quarters Quarters $0.28 $4.8 $0.24 $2.8 $0.10 $1.8 $2.2 $0.08 $0.05 $0.7 $0.02 $0.2 14.7% 6.1% 6.3% Q2 23 Q1 24 Q2 24 Q2 23 Q1 24 Q2 24 Years Y
Slide 9: Capital Structure and Cash Flow
Capital Structure and Cash Flow ($ in millions) Year Capitalization Cash Flow Three Months Ended Ended 6/30/24 12/31/23 6/30/24 6/30/23 12/31/23 Net cash (used) provided Cash and cash equivalents $ 20.4 $ 45.3 $ (5.1) $ 2.9 $ 16.2 by operating activities Total debt $ 21.1 $ 12.0 Capital expenditures
Slide 10: Updated Outlook for 2024
Updated Outlook for 2024 Third Quarter Outlook(1) Revenue: Slightly lower than Q2 5-Point Strategy Gross margin: Improved somewhat from Q2 Operating expenses: Similar to Q2 Intangible asset amortization expense: ~$0.9 million Amortization (after tax): ~$0.7 million Global & Innovation & Interest exp
Slide 11: Executing during Challenging Times
Executing during Challenging Times Managing headwinds from key markets • Front-end semi taking a pause with depressed production capacity additions in SiC, GaN and epitaxy • Sluggish Industrial activities driven by macro uncertainties • Deepening reach within existing customers and focus on adding n
Slide 12: Conference Call Playback Info and Upcoming Events
Conference Call Playback Info ➢ Replay Number: (412) 317-6671 passcode: 13746896 ➢ Telephone replay available through Friday, August 9, 2024 ➢ Webcast / Presentation / Replay available at www.intest.com/investor-relations ➢ Transcript, when available, at www.intest.com/investor-relations Upcoming Ev
Slide 13: Supplemental Information
inTEST Corporation Q2 2024 Financial Results Conference Call Supplemental Information August 2, 2024
Slide 14: Reconciliation of Net Earnings to Adjusted Net Earnings and EPS (Quarterly)
Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) and Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share (Non-GAAP) ($ in thousands, except per share amounts) Three Months Ended 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Net earnings $ 2,793 $ 2,277 $ 1,455 $
Slide 15: Reconciliation of Net Earnings to Adjusted Net Earnings and EPS (Annual)
Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) and Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share (Non-GAAP) ($ in thousands, except per share amounts) Years Ended December 31, TTM Q2 2021 2022 2023 2024 Net earnings $ 7,283 $ 8,461 $ 9,342 $ 4,624 Acquired int
Slide 16: Reconciliation of Net Earnings to Adjusted EBITDA (Quarterly)
Reconciliation of Net Earnings and Net Margin to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP) ($ in thousands) Three Months Ended 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Net earnings $ 2,793 $ 2,277 $ 1,455 $ 662 $ 230 Acquired intangible amortization 523 515 513 595 8
Slide 17: Reconciliation of Net Earnings to Adjusted EBITDA (Annual)
Reconciliation of Net Earnings and Net Margin to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP) ($ in thousands) Years Ended December 31, TTM Q2 2021 2022 2023 2024 Net earnings $ 7,283 $ 8,461 $ 9,342 $ 4,624 Acquired intangible amortization 1,440 2,694 2,095 2,520 Net interest ex
Slide 18: Reconciliation of Third Quarter 2024 Estimated EPS to Adjusted EPS
Reconciliation of Third Quarter 2024 Estimated Earnings Per Diluted Share to Estimated Adjusted Earnings Per Diluted Share (Non-GAAP) Q3 2024E Estimated Estimated earnings per diluted share ~ $ 0.02 Estimated acquired intangible amortization 0.07 Estimated tax adjustments (0.01) Estimated adjusted e
Slide 19: Segment Reporting (Quarterly)
Segment Reporting (Quarterly) ($ in thousands) Three Months Ended 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Electronic Test $ 10,993 $ 11,547 $ 8,105 $ 11,116 $ 16,159 Environmental Technologies 8,136 7,000 7,623 6,828 8,273 Process Technologies 13,429 12,394 12,156 11,880 9,559 Total Reven
Slide 20: Segment Reporting (12-Months)
Segment Reporting (12-Months) ($ in thousands) Years Ended TTM 12/31/2022 12/31/2023 6/30/2024 Electronic Test $ 40,219 $ 41,016 $ 46,927 Environmental Technologies 30,172 30,801 29,724 Process Technologies 46,437 51,485 45,989 Total Revenue $ 116,828 $ 123,302 $ 122,640 % of % of % of divisional di