Lgl Group, Inc. (the) · AMEX:LGL
Lgl Group, Inc. (the) — The LGL Group — Q3 2011 Earnings Presentation
15 slides from Lgl Group, Inc. (the)'s earnings presentation, Nov 10, 2011
Slide 1: Q3 2011 Earnings Report
The LGL Group, Inc. (AMEX: LGL) Q3 2011 Earnings Report November 10, 2011 – 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 • Framework for Strategic Growth • Question and Answer 3
Slide 4: Business Highlights
Business Highlights 4
Slide 5: Q3 2011 Business Highlights: Sales and Revenues
Q3 2011 Business Highlights Sales and Revenues • Weak book to bill ratio for Q3 2011 • Telecom and MISA market segments showed weakness for new orders • Macroeconomic factors have impacted the near-term outlook • Order backlog at end of Q3 2011 of $9.1M • Q3 2011 revenues were $9.6M, a 22.3% decreas
Slide 6: Q3 2011 Business Highlights: Margins, Costs, Income and EPS
Q3 2011 Business Highlights Margins, Costs, Income and EPS • Gross margin of 28.0% for Q3 2011, compared to 37.6% for Q3 2010; driven primarily by reduction in revenue, which eroded gross margin by spreading fixed infrastructure costs over a smaller revenue base • Q3 2011 net income and pre-tax earn
Slide 7: Outlook for Q4 2011 and Q1 2012
Outlook for Q4 2011 and Q1 2012 Market Dynamics • Customer positions remain strong; healthy levels of new design activity • Cautious outlook regarding near-term repeat orders • Major OEM customers reporting mixed market conditions • Major Electronic Manufacturing Services (“EMS”) companies reporting
Slide 8: Financial Highlights
Financial Highlights
Slide 9: 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 $10.0 37.6% $10.0 $9.2 36.3% $9.7 $9.6 34.1% $9.0 30.0% 31.7% 31.8% 31.6% 32.6% $8.0 $7.5 $7.3 28.0% $7.2 20.6% 25.2% 18.9% 20.0% 21.9% $6.0 19.8% 19.5% 13.0% 11.3% 8.0% 10.0% 6.4% 6.6% $4.0 3.5% 1
Slide 10: Financial Highlights: Order Backlog
Financial Highlights Order Backlog 16,000 14,000 14,373 14,260 13,958 13,221 12,000 12,238 12,093 11,973 10,000 10,734 9,333 9,119 8,000 8,293 8,182 6,000 4,000 2,000 0 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 • Decrease in order backlog due to
Slide 11: Financial Highlights: Capital Position
Financial Highlights Capital Position as of September 30, 2011 Total Assets $ 33.9M Net Working Capital 19.2M Cash Adjusted Working Capital 9.6M Cash and Cash Equivalents 13.7M Total Debt 3.8M Shareholder’s Equity 25.7M Available Lines of Credit $ 2.4M • Working capital increased to $19.2M as compar
Slide 12: 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) Q3 2011 (000's) 12/31/2010 9/30/2011 Net Income (GAAP) $ 91 Accounts receivable, net $ 5,782 $ 5,820 Income tax benef
Slide 13: Strategic Growth Initiatives
Strategic Growth Initiatives
Slide 14: Laying the Foundation for Profitable Growth
Laying the Foundation for Profitable Growth Management is actively pursuing the Company’s framework for growth: 1. Organic investment into core business to leverage existing customer positions, add capacity and develop higher value product in three specific areas: 3G/4G/LTE Wireless Microwave Radio
Slide 15: 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 15