Lgl Group, Inc. (the) · AMEX:LGL
Lgl Group, Inc. (the) — The LGL Group — Q4 2011 Earnings Presentation
13 slides from Lgl Group, Inc. (the)'s earnings presentation, Mar 29, 2012
Slide 1: Q4 2011 Earnings Report
The LGL Group, Inc. (AMEX: LGL) Q4 2011 Earnings Report March 29, 2012 – 10:00 a.m. ET
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: Agenda
Agenda • Introduction • Business Highlights • Financial Highlights • Market Outlook • Question and Answer 3
Slide 4: Business Highlights: FY 2011 Results
Business Highlights FY 2011 Results • Revenues of $35.7M, down 23.5% compared to 2010 Telecom • Gross margin of 30.2%, a 4.8 percentage point decrease compared to 2010 due to lower revenues • Pre-tax diluted earnings per share of $0.22 MISA • EBITDA margin of 4.2%; Military Instrumentation Space Avi
Slide 5: Business Highlights: Q4 2011 Results
Business Highlights Q4 2011 Results • Revenues of $7.4M, down 32.9% compared to Q4 2010 • New orders soft for both the Telecom and MISA market segments • Backlog at end of Q4 2011 of $8.6M, compared to $9.1M at end of Q3 2011 • Gross margin of 27.9%, a 3.8 percentage point decrease compared to Q4 20
Slide 6: Outlook for 2012
Outlook for 2012 Working through the cycle toward growth • Major customers reporting market softness • Repeat orders from existing contracts sluggish • Semi-conductor industry predicting revenue growth in H2 2012 • Solid working capital position • Strong design backlog for engineering 6
Slide 7: Financial Highlights: Quarterly Income Statement Trends
Financial Highlights Quarterly Income Statement Trends $14.0 50.0% $12.5 $12.4 $12.0 $11.0 40.0% $10.7 37.6% $9.7 $9.6 $10.0 $9.2 36.3% 34.1% $9.0 30.0% 31.6% 31.7% $7.5 32.6% 31.8% 28.0% $ in millions $8.0 $7.2 $7.3 20.6% 18.9% $7.4 20.0% 21.9% 27.9% $6.0 19.8% 19.5% 13.0% 11.3% 8.0% 10.0% 6.4% 6.6
Slide 8: Financial Highlights: Order Backlog
Financial Highlights Order Backlog ($000’s) 16,000 14,000 14,373 14,260 13,958 13,221 12,000 12,238 12,093 11,973 10,734 10,000 9,333 9,119 8,000 8,634 8,293 6,000 4,000 2,000 - Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 • Modest decrease in order
Slide 9: Financial Highlights: Capital Position
Financial Highlights Capital Position as of December 31, 2011 Total Assets $ 32.4M Net Working Capital 18.1M Cash Adjusted Working Capital 8.2M Cash and Cash Equivalents 13.7M Total Debt 3.4M Shareholder’s Equity 25.6M Available Lines of Credit $ 2.4M • Working capital increased to $18.1M as compare
Slide 10: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Reconciliation of GAAP net income to non-GAAP pre-tax earnings Computation of Adjusted Working Capital: As of As of (000's, except per share amounts) 2011 (000's) 12/31/2010 12/31/2011 Net Income (GAAP) $ 382 Accounts receivable, net $ 5,782 $ 4,309 Income tax (benef
Slide 11: The Next Cycle: Aligned to 4G
The Next Cycle: Aligned to 4G Telecom 4G / LTE growth robust • Carrier competitive demand • Shift to smart phones • Tablets always wireless ready Primary internet connection is wireless Source: J.P Morgan estimates More data + more cells = more timing control • Data vs. voice: >300X data growth ra
Slide 12: Laying the Foundation for Profitable Growth
Laying the Foundation for Profitable Growth Significantly improved capital structure during 2011 • Achieved profitability, solid cashflow from operations • Strong balance sheet, positioned to weather the cycle • Growth opportunities in both timing and filters • Manufacturing cost advantages for MISA
Slide 13: Question and Answer
Question and Answer Visit us: www.lglgroup.com www.mtronpti.com Contact us: Greg Anderson, President and CEO (e-mail: ganderson@lglgroup.com) LaDuane Clifton, Chief Accounting Officer (e-mail: lclifton@lglgroup.com) Voice: (407) 298-2000 13