Slide 1: inTEST Q3 2024 Financial Results Conference Call
inTEST Corporation Q3 2024 Financial Results Conference Call Nick Grant, President and CEO Duncan Gilmour, CFO and Treasurer November 1, 2024
Slide 2: Note Regarding Reported Results for Q3 2023; Forward-Looking Statements
Note Regarding Reported Results for Q3 2023 All references to results for Q3 2023 are as restated on March 27, 2024. Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statemen
Slide 3: Non-GAAP Financial Measures and Forward-Looking Non-GAAP Financial Measures
Non-GAAP Financial Measures and Forward-Looking Non-GAAP Financial Measures In addition to disclosing results that are determined in accordance with generally accepted accounting practices in the United States (“GAAP”), we also disclose non- GAAP financial measures. These non-GAAP financial measures
Slide 4: Executing 5-Point Strategy in Challenging Times
Executing 5-Point Strategy in Challenging Times ➢ Effective execution of 5-Point Strategy … 5-Point Strategy ▪ Continue to add new customers and optimize sales channels ▪ Leveraging innovation and application expertise for growth ▪ Driving Alfamation synergies (technology, supply & customers) Global
Slide 5: Orders and Backlog
Orders and Backlog(1) ($ in millions) Orders Years Quarters $129.6 ➢ Q3 orders up 4.5% y/y $116.6 $101.9 $104.6 $28.1 ▪ Includes $3.9 million from Alfamation $26.9 $26.2 ▪ $4.1 million increase in auto/EV, more than doubled driven by Alfamation ▪ More investments directed to ICE(2) autos ▪ Def/aero
Slide 6: Revenue
Revenue ($ in millions) Years Quarters ➢ Q3 2024 revenue, decreased $0.7 million y/y ▪ $5.4 million from Alfamation $116.8 $123.3 $122.0 $30.9 $34.0 ▪ Auto/EV up $4.5 million, primarily from $30.3 Alfamation $84.9 ▪ $7.1 million decline in semi sales ▪ Industrial market up $1.1 million and other mar
Slide 7: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Years Quarters ➢ Q3 gross margin of 46.3% expanded 570 bps compared with Q2 2024 $57.0 $53.4 $53.3 $14.4 $13.8 $14.0 ▪ Margin expansion driven by favorable product mix and cost actions $41.2 ▪ Improved volume in higher margin back-end semi business ➢ Y/Y gross
Slide 8: Operating Expenses
Operating Expenses Continuing to invest to support 5-Point Strategy for Growth ($ in millions) Operating expenses as a % of sales ➢ Q3 2024 operating expenses up $1.5 million versus Q3 2023 38.3% 36.6% 37.7% 41.7% 38.7% 39.6% 44.7% Years Quarters ▪ $2.3 million incremental operating $50.9 expenses a
Slide 9: Earnings and Adjusted EBITDA
Earnings and Adjusted EBITDA(1) ($ in millions, except per share data) Net Earnings and Adjusted EBITDA/ (1) (1) EPS and Adjusted EPS Adjusted EBITDA Margin Quarters Quarters $3.8 $0.22 $0.19 $2.4 $2.3 $2.2 $0.10 $0.08 $0.04 $0.5 $0.02 $0.2 12.2% 6.3% 8.1% Q3 23 Q2 24 Q3 24 Q3 23 Q2 24 Q3 24 Years Y
Slide 10: Capital Structure and Cash Flow
Capital Structure and Cash Flow ($ in millions) Year Capitalization Cash Flow Three Months Ended Ended 9/30/24 12/31/23 9/30/24 9/30/23 12/31/23 Net cash provided by Cash and cash equivalents $ 18.0 $ 45.3 $ 4.2 $ 6.2 $ 16.2 operating activities Total debt $ 16.1 $ 12.0 Capital expenditures (0.5) (0
Slide 11: Tightened Outlook for 2024
Tightened Outlook for 2024 Fourth Quarter Outlook(1) 5-Point Strategy Revenue: $34 million to $37 million Gross margin: ~42% Operating expenses: ~$13.5 million Intangible asset amortization expense: ~$0.9 million Global & Innovation & Amortization (after tax): ~$0.7 million Market Differentiation In
Slide 12: Executing on our Strategy
Executing on our Strategy Limited visibility but signs of stabilization in targeted industries • Seeing gradual improvement in back-end semi • Solid demand from defense/aerospace • Front-end semi currently paused, but exciting long-term opportunity with unique induction heating solution for SiC, GaN
Slide 13: Conference Call Playback Info; Upcoming Events
Conference Call Playback Info ➢ Replay Number: (412) 317-6671 passcode: 13749100 ➢ Telephone replay available through Friday, November 8, 2024 ➢ Webcast / Presentation / Replay available at www.intest.com/investor-relations ➢ Transcript, when available, at www.intest.com/investor-relations Upcoming
Slide 14: Supplemental Information
inTEST Corporation Q3 2024 Financial Results Conference Call Supplemental Information November 1, 2024
Slide 15: Reconciliation of Net Earnings to Adjusted Net Earnings and EPS (Quarterly)
Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) and Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share (Non-GAAP) ($ in thousands, except per share amounts) Three Months Ended 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Net earnings $ 2,277 $ 1,455 $ 662 $ 23
Slide 16: 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 Q3 2021 2022 2023 2024 Net earnings $ 7,283 $ 8,461 $ 9,342 $ 2,842 Acquired int
Slide 17: 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 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Net earnings $ 2,277 $ 1,455 $ 662 $ 230 $ 495 Acquired intangible amortization 515 513 595 897 944
Slide 18: 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 Q3 2021 2022 2023 2024 Net earnings $ 7,283 $ 8,461 $ 9,342 $ 2,842 Acquired intangible amortization 1,440 2,694 2,095 2,949 Net interest ex
Slide 19: Reconciliation of Q4 2024 Estimated EPS to Adjusted EPS
Reconciliation of Fourth Quarter 2024 Estimated Earnings Per Diluted Share to Estimated Adjusted Earnings Per Diluted Share (Non-GAAP) Q4 2024E Estimated earnings per diluted share ~$ 0.08 Estimated acquired intangible amortization ~ 0.08 Estimated tax adjustments ~ (0.02) Estimated adjusted earning
Slide 20: Segment Reporting (Quarterly)
Segment Reporting (Quarterly) ($ in thousands) Three Months Ended 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Electronic Test $ 11,547 $ 8,105 $ 11,116 $ 16,159 $ 15,481 Environmental Technologies 7,000 7,623 6,828 8,273 6,734 Process Technologies 12,394 12,156 11,880 9,559 8,057 Total Revenu
Slide 21: Segment Reporting (12-Months)
Segment Reporting (12-Months) ($ in thousands) Years Ended TTM 12/31/2022 12/31/2023 9/30/2024 Electronic Test $ 40,219 $ 41,016 $ 50,861 Environmental Technologies 30,172 30,801 29,458 Process Technologies 46,437 51,485 41,652 Total Revenue $ 116,828 $ 123,302 $ 121,971 % of % of % of divisional di