Lgl Group, Inc. (the) · AMEX:LGL
Lgl Group, Inc. (the) — The LGL Group — G9: ThinkEquity's 9th Annual Growth Conference (September 2012)
21 slides from Lgl Group, Inc. (the)'s conference presentation, Sep 13, 2012
Slide 1: The LGL Group, Inc.
The LGL Group, Inc. (AMEX: LGL) G9: Think Equity’s 9th Annual Growth Conference September 13, 2012
Slide 2: Safe harbor statement
Safe harbor statement This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results ma
Slide 3: Corporate Snapshot
Corporate Snapshot Publicly traded global corporation Formed in 1917 IPO in 1946 MtronPTI subsidiary 1965 $32 million TTM annual revenue June 30, 2012 Global revenue 50% overseas $5.70 Stock price 9/10/2012 $9.89 52-week high $14.8 million market capitalization $7.9 million available cash June 30, 2
Slide 4: MtronPTI: the primary brand
MtronPTI: the primary brand ~50 years experience providing precision filter and timing solutions Blue chip clients long product cycles, preferred vendor relationships Diverse markets communications, mil/aero, instrumentation World-class team unparalleled experience Worldwide manufacturing high preci
Slide 5: Small company, global presence
Small company, global presence Over 400 people 10 sales and technical support sites >30 representative firms 155,000 ft2 US and India manufacturing Multiple contract factories ISO9001 AS9100 ISO9001 ISO9001 AS9100 (2013) 5 G9 9/13/2012
Slide 6: Enabling high performance in diverse markets
Enabling high performance in diverse markets Platform Technology High Performance Markets Quartz timing used in all digital electronics Reliability leader in precision quartz oscillators ICT Military Wide product range / performance / price High frequency filters essential to wireless comm ~50 years
Slide 7: Strong ICT & Mil / Aero client relationships
Strong ICT & Mil / Aero client relationships Major OEMs Provide mix of filter / oscillator products to all = broad need visibility Focus on high performance / high reliability = wide client base Long term support / sales relationships = trust, preference, sole source opportunities ICT clients includ
Slide 8: Deep management expertise
Deep management expertise Years of Industry Experience Professional Background Greg Anderson 20+ Mr. Anderson has experience in high-tech manufacturing businesses, which President, CEO includes both low volume/high mix OEM custom products coupled with experience gained in high volume/low cost consum
Slide 9: 4G/LTE driving ICT market spending
4G/LTE driving ICT market spending US Smart Phone Share Passes Feature Phones 80% 70% Feature phones 60% End users driving the shift 50% 40% Smart phones Most new phones are now smart phones 30% Tablet tsunami – shift away from TV / desktop 20% Carrier competition: lower cost, faster data Primary
Slide 10: Precision timing market: $1.3 B
Precision timing market: $1.3 B 2012 Crystal Oscillators ~ $4 B Others Precision Timing ~ $1.3 B ~$4 billion crystal oscillator market South Korea Others 6% CAGR through 2017 EU & N.A. Taiwan 1Source: Databeans 2012 Timing Devices Report Japan EU & N.A. Japan Taiwan China Source: company estimates C
Slide 11: 4G / LTE needs IEEE 1588 / SyncE
4G / LTE needs IEEE 1588 / SyncE $98M TAM2012 , growing at 18% CAGR to $162M2015 Source: company projection; Heavy Reading’s Ethernet Backhaul Quarterly Tracker Service, October 2011 Incoming engineering requests Near term oscillator bookings focused on high stability OCXO 4G / LTE support Module VC
Slide 12: Software Defined Radio (SDR) now mainstream
Software Defined Radio (SDR) now mainstream 2,000,000 Base station transceiver shipments Software controlled versus software defined > 15% CAGR The switch to multi-band radios 1,000,000 All new public safety radios 93% of mobile infrastructure Virtually all military tactical radios Satellite ‘modems
Slide 13: RF filter market: $1.1 B
RF filter market: $1.1 B Microwave / RF Filter Market Half cell handset, half high performance applications 2012 ~ $1.1B Cell handset RF components $3.6B2011 Base Sta. Cavity Military uWave 5.6% CAGR to $4.7B2016 LC Filters $1.1B2012 with 10.5% CAGR to $1.7B2016 Cell SAW Ceramic Switched Precision f
Slide 14: SDR driving tunable filter demand
SDR driving tunable filter demand $30M TAM2012 , growing at 10% CAGR to $44M2016 Source: company projection; 2012: tunable projects start Near term filter bookings tunable growing rapidly Cavity Crystal Cavity LC LC Crystal 14 G9 9/13/2012
Slide 15: Strong operating leverage, strong balance sheet
Strong operating leverage, strong balance sheet Revenue and EBITDA ($ in millions, except percentages) 50.0 46.7 20.0% 45.0 41.5 40.2 39.5 40.0 35.7 15.0% 35.0 31.3 31.8 16.2% 30.0 10.0% 6.2% 25.0 4.1% 20.0 5.0% 15.0 0.6% 10.0 -2.0% 0.0% -2.8% -3.7% 5.0 0.0 -5.0% 2006 2007 2008 2009 2010 2011 TTM Q2
Slide 16: Quarterly income trend
Quarterly income trend $14.0 Quarterly Income Statement Trends 50.0% 36.3% 37.6% $12.0 34.1% 31.7% 40.0% 32.6% 31.8% 31.6% $10.0 28.0% $12.5 $12.4 27.9% $10.7 26.5% 30.0% $11.0 $9.7 22.3% $8.0 19.5% 20.6% $9.0 $9.2 18.9% $9.6 $7.6 20.0% $6.0 13.0% $7.4 $7.2 11.2% $7.3 6.4% 7.9% 6.3% 10.0% $4.0 3.5%
Slide 17: Business cycle factors
Business cycle factors Overall weak macroeconomic climate major clients and prospects are on the sidelines delaying microelectronics expense Newer technologies (ex. 4G) taking longer to coalesce further delaying orders Key competitors impacted as well believe we’ve held share; gained in Ericsson and
Slide 18: Well positioned for growth
Well positioned for growth Capital position strong Retained all major clients moving forward to execute on both despite decline in their overall orders organic and JV/M&A strategies Key components in clients’ systems Added new major clients very “sticky” great promise in 4G market high switching cos
Slide 19: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations Reconciliation of earnings before taxes (GAAP) to EBITDA (non-GAAP) (000's except percentages) Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Revenue $ 7,321 $ 9,201 $ 10,701 $ 12,535 $ 12,397 $ 11,023 $ 9,020 $ 9,646
Slide 20: LGL Competitive
LGL Competitive Strong capital position Experienced management team JV/M&A opportunities ~50 years experience Blue chip clients Diverse markets World–class team Quality certified, low cost worldwide manufacturing Industry leading technology, reliability, convenience, support 20 G9 9/13/2012
Slide 21: Question and Answer
Question and Answer Visit: lglgroup.com mtronpti.com Email: LaDuane Clifton, CAO lclifton@lglgroup.com Call: (407) 298-2000 21 G9 9/13/2012
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