16 slides from Lgl Group, Inc. (the)'s earnings presentation, Mar 25, 2014
Slide 1: Q4 2013 Earnings Report
The LGL Group, Inc. (NYSE MKT: LGL) Q4 2013 Earnings Report March 25, 2014 – 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: Corporate Snapshot
Corporate Snapshot Publicly traded global corporation Formed in 1917 IPO in 1946 MtronPTI subsidiary 1965 $26 million 2013 annual revenue Revenue mix 47% outside the U.S. $5.21 Stock price Mar 21, 2014 $6.52 52-week high $14.9 million market capitalization $8.7 million cash and cash equivalents Dec
Slide 4: Investment Highlights
Investment Highlights LGL’s subsidiary – MtronPTI, serves large B2B OEM clients that provide solutions to: Internet Communications Technology, and Aerospace and Defense Balanced • 65% Aerospace and Defense (Aero/Defense) Demand • 35% Internet Communications Technology (ICT) • Crystal technology rema
Slide 5: Q4 2013 Summary
Q4 2013 Summary Strategic Review Process – completed Implemented restructuring plan during Q4 2013 – completed recognized $0.6M charge as expected Positive book to bill, improved backlog compared to Q3 2013 Positioning business for improved results in 2014 5
Slide 6: Q4 2013 Results
Q4 2013 Results $5.7M revenue sequentially down 5.9% vs. Q3 2013 down 24.5% vs. Q4 2012 22.1% gross margin sequentially flat (0.3% points) vs. Q3 2013 on reduced revenue down 8.6% points vs. Q4 2012 ($0.50) adjusted pre-tax loss per share (excludes restructuring charge) sequentially higher vs. ($0.4
Slide 7: FY 2013 Results
FY 2013 Results $26.2M revenues down 11.8% compared to FY 2012 26.1% gross margin flat vs. FY 2012 on reduced revenues, some operational gains ($1.40) adjusted pre-tax loss per share vs. ($0.71) for 2012 excludes restructuring charge of $0.6M (9.8%) adjusted EBITDA for FY 2013 vs. (3.2%) for 2012 7
Slide 8: Financial Snapshot
Financial Snapshot Quarterly Income Statement Trends Capital Position as of: 12/31/2013 9/30/2013 Total Assets $ 21.3M $ 22.6M • Cash and cash equivalents of $3.35 per share at 12/31/2013 Net Working Capital 12.4M 13.9M Cash-Adjusted Working Capital 5.9M 6.6M • Cash-adjusted working capital of $2.29
Slide 9: Positioning for Growth
Positioning for Growth Capital position strong R&D investments in target markets organic investments (client service, new software-defined radio, low noise radar, IP, capacity and capabilities) harsh environment timing joint venture/M&A Key components in major clients’ systems Strong position in Com
Slide 10: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Reconciliation of earnings before taxes (GAAP) to Adjusted EBITDA (non-GAAP) (000's except percentages) Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Revenue $ 9,020 $ 9,646 $ 9,629 $ 7,387 $ 7,174 $ 7,582 $ 7,307 $ 7,
Slide 11: Working Toward Growth
Working Toward Growth ‒ Reduced demand and price compression in ICT market segment ‒ U.S. government spending still down, continued signs of uncertainty + Strong new product revenue stream across core business + Solid working capital position + Improving margins and operating efficiencies post-restr
Slide 12: Strategic Review - Completed
Strategic Review - Completed Results of Board’s strategic review: pursue organic growth led by changes to capital allocation Several significant actions have been taken to date: 8/6/2013 Distribution of warrants to Company’s stockholders in order to return portion of Company’s future value 10/1/2013
Slide 13: Strategy for Growth
Strategy for Growth Our strategy is clear: Reinvigorate our intellectual property and product roadmap through organic development and acquisitions/joint ventures Leverage our core strength as an engineering leader to expand client access, add new capabilities, diversify product offerings Focus inves
Slide 14: Q1 2014: Filter Asset Acquisition
Q1 2014: Filter Asset Acquisition Update on acquisition of filter assets from Trilithic: • Purchase price of $0.7M • Active business with backlog at acquisition, converted open orders to MtronPTI • New product IP, including tunable filters, tubular filters, others • New top tier clients in UAV marke
Slide 15: Investment Considerations
Investment Considerations 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 15
Slide 16: Contacts
Contacts Visit us: www.lglgroup.com www.mtronpti.com Contact us: Greg Anderson, President and CEO (e-mail: ganderson@lglgroup.com) LaDuane Clifton, CFO (e-mail: lclifton@lglgroup.com) Voice: (407) 298-2000 16