Lgl Group, Inc. (the) · AMEX:LGL
Lgl Group, Inc. (the) — Shareholder Meeting (October 2014)
20 slides from Lgl Group, Inc. (the)'s shareholder meeting presentation, Oct 21, 2014
Slide 1: 2014 Annual Meeting of Stockholders
The LGL Group, Inc. (NYSE MKT: LGL) 2014 Annual Meeting of Stockholders October 21, 2014
Slide 2: Safe Harbor Statement
Safe Harbor Statement Information included or incorporated by reference in this presentation may contain forward-looking statements. This information may involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially d
Slide 3: Corporate Snapshot
Corporate Snapshot Publicly traded global corporation Formed in 1917 IPO in 1946 MtronPTI subsidiary 1965 $24 million TTM annual revenue june 30, 2014 Global revenue 44% outside U.S. $3.70 Stock price ro/16/2014 $6.52 52-week high $9.6 million market capitalization $7.6 million cash and cash equival
Slide 4: MtronPTI: The Primary Brand
MtronPTI: The Primary Brand Market, design and manufacture customized high-precision components used for frequency control in electronic systems: ~50 years experience precision filter and timing solutions, industry experts Blue-chip clients long product cycles, preferred supplier relationships Diver
Slide 5: Management Team
Management Team Michael Ferrantino, Sr., Executive Chairman and CEO 40+ years in RF/microwave manufacturing; CEO Valpey-Fisher, Chairman and CEO Micro Networks, et al LaDuane Clifton, CPA, Chief Financial Officer 18+ years in finance and accounting with public companies; CFO at 21, auditor at KPMG,
Slide 6: Timing Business Unit
Timing Business Unit Timing (65% of revenue) Precision quartz oscillators for: Wireless base stations Optical switches and routers Ho neywell Airframe & engine control Point-to-point radio systems ERICSSON Z Industrial process control Alcatel-Lucent @) Microwave data backhaul Aircraft engine control
Slide 7: Timing Market
Timing Market ~$3.6 billion crystal & crystal oscillator market 1.5% CAGR through 2018 Oscillator/Resonator ~$1.6B 45% Oscillator! Resonator Fragmented, competitive Japanese supplies consumer market Others typically divisions of large industrials or specialty engineering firms M&A activity increasin
Slide 8: Custom RF/Microwave Filters (35% of revenue)
Custom RF/Microwave Filters (35% of revenue) High-rel, harsh-enviro filters for: Vehicle, air, ship communications UAS navigation, guidance Weather, aircraft, ship radar Missile guidance, data links Anti-IED/EW jammers Satellite internet Public safety radio 2014 Annual Meeting of Stockholders Filter
Slide 9: RF/Microwave Filter Market
RF/Microwave Filter Market Flat to single digit growth through 2017, growth primarily in cellular handset and data backhaul MtronPTI’s total addressable market of $0.5B expected to remain flat $058 ‘MtronPTl serves MtronPT serves $1.1 Boor $1.2 Brora 9 2014 Annual Meeting of Stockholders 10/21/2014
Slide 10: New — First Half 2014
New — First Half 2014 Expanding Product Line ‘tubular’ filters acquired filters assets from Trilithic ——— ‘< —— added <SNSITU fe GENERAL ATOMICS UAS (unmanned aircraft systems) switched filters multiple filters in one package applications include: multi-channel radio for both ground and airborne app
Slide 11: New this Fall
New this Fall October: microwave frequency filters and combiners Frequency UP 10-80 GHz waveguide filters First products: E-band transmit/receive diplexer Mobile data internet backhaul ee ee a = November: adding active RF modules... Electronic warfare Defense communications Satellite data links Lab
Slide 12: Our Long-Term Strategy
Our Long-Term Strategy Extend technology and IP position * Continue to defend position in LC filters while making tunable filter investments * Investments in high-performance timing for avionics controls, new materials for harsh-enviro Grow revenue with strategic/emerging clients * Increased sales s
Slide 13: Short-Term Goals
13 Short-Term Goals 1.) Stabilize the business to be cashflow positive at current revenue levels. 2.) Execute on key engineering projects and bring to production (new revenue). 3.) Expand footprint in India by adding design capabilities. 4.) Leverage joint marketing/development partners to add new p
Slide 14: Financial Review
14 Financial Review 2014 Annual Meeting of Stockholders 10/21/2014
Slide 15: Financial Trends
15 Financial Trends Revenue, Gross Margin and EBITDA {S inmillions except percentages} $46.27 (10.055 ¥2008 Capital Position as of: (20.0%) Fy 2009 Fy 2010 Fy2011 Fy2012 Fv2013. © TIMQ22014 mmRevenue —o=Gross Margin e=Ad) EBITDA Margin 6/30/2014 12/31/2013 Total Assets Net Working Capital Cash-Adjus
Slide 16: Order Backlog Trend
Order Backlog Trend $10.0 $95 $9.6 soa =S soa $9.1 $80 $8.6 vis m= a cg Ba S86 $6.0 $40 $2.0 $0.0 Q32011 Q42011 Q12012 Q22012 Q32012 42012 Q12013 22013 Q32013 Q42013 Q12014 Q22014 16 2014 Annual Meeting of Stockholders 10/21/2014
Slide 17: Income Statement Highlights
Income Statement Highlights (Sin millions, except EPS) Fy2008 FY2009 FY. 2010 FY.2011_—FY. 2012 FY.2013_ TIMQ22014 Revenue $ 4.2 $ 33 $ 467 $ 357 $ 297 $ 262 $ 238 % Change 1.6% 22.1% 49.2% 23.6% 16.8% “11.8% 9.1% Gross Profit 10.4 74 16.4 10.8 77 68 5.6 % Margin 25.8% 237% 35.0% 30.2% 26.1% 26.1% 2
Slide 18: Balance Sheet Highlights
Balance Sheet Highlights (Sand shares in millions) FY 2008 FY2009_-FY2010 —-FY2011__—FY. 2012 FY.2013——Q2.2014 Cash and Cash Equivalents $ 53 $ 38$ 41 $ 287 $ 1018 878 76 % Change 1.7% -39.5% 8.0% 69.7% 35.4% 14.0% 12.2% Adj. Working Cap (AR + Inv - AP) 95 7.8 9.7 8.2 72 59 5.9 % Change 51% -22.0% 1
Slide 19: Short-Term Goals
Short-Term Goals 1.) Stabilize the business to be cashflow positive at current revenue levels. 2.) Execute on key engineering projects and bring to production (new revenue). 3.) Expand footprint in India by adding design capabilities. 4.) Leverage joint marketing/development partners to add new prod
Slide 20: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Reconciliation of Net Income (GAAP) to Pre-Tax Earnings (Non-GAAP) (8 millions) TM a2 2008 2009 2010 2011 2012 2013 2014 Net income (GAAP) s (13) § 28 S 94 § O4 S (13) § (82) S (63) Add: Income tax provision/(benefit) 4 00 (29), 02, (05) 39 00 Pre-tax eamings (non-GA