Luna Innovations, Inc. · OTC:LUNA
Luna Innovations — Q2 2018 Earnings Presentation
19 slides from Luna Innovations's earnings presentation, Aug 1, 2018
Slide 1: Investor Supplemental Materials August 1, 2018
Exhibit 99.3 Investor Supplemental materials August 1, 2018
Slide 2: Safe Harbor
Safe Harbor Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 This presentation includes information that constitutes “forward-looking statements” made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 that involve risks and
Slide 3: Divestiture of OptoElectronics Solutions business
Divestiture of OptoElectronics Solutions business
Slide 4: Divestiture of Opto business allows greater focus on core business capabilities
Divestiture of Opto business allows greater focus on core business capabilities in fiber optic-based test and measurement Luna has closed on the divestiture of its Optoelectronic Solutions business to OSI Systems, Inc. OSI Systems, Inc. is an integrated designer and manufacturer of specialized elect
Slide 5: Proceeds add to strong cash position and flexible balance sheet
Proceeds add to strong cash position and flexible balance sheet; we will maintain our disciplined capital deployment strategy A disciplined approach to capital deployment, with a focus on working capital and reinvestment in the business to generate long-term sustainable growth Continue to invest in
Slide 6: Pro-forma Luna financials
Pro-forma Luna financials:1 Three Months Ended ($ in 000s) 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 Revenues: Technology development $ 4,236 $ 4,602 $ 4,590 $ 5,148 $ 4,637 $ 5,466 Products and licensing 2,398 3,680 3,713 4,714 4,132 4,457 Total revenues 6,634 8,282 8,303 9,862 8
Slide 7: Business Strategy
Business Strategy
Slide 8: Our business model accelerates the process of bringing new and innovative products to market
Our business model accelerates the process of bringing new and innovative products to market Structural & Material Test Communications Test & Technology development and Terahertz Deliver high-definition Measurement distributed strain & Design and manufacture, Cutting edge temperature sensing data hi
Slide 9: Strong growth opportunity through Luna's fiber optic-based technologies
Strong growth opportunity through Luna’s fiber optic-based technologies (Lightwave) Luna’s fiber optic technologies are used two ways: SENSING OPTICAL TEST & MEASUREMENT Aerospace and Automotive Communications Measuring strain and temperature in Testing optical components and composites and other ad
Slide 10: Strong drivers of growth for our technology in Automotive and Aerospace
There are strong drivers of growth for our technology in Automotive and Aerospace Challenges we address Drivers for our products Instrumenting complex parts Testing requirements changing Performing fatigue testing in drastically with introduction of new composites materials and lighter-weight design
Slide 11: Two distinct growth opportunities in the Communications market
There are two distinct growth opportunities for our technology in the Communications market Optical Fiber and short component network test development and manufacturing Silicon photonics is creating demand for Bandwidth demands continue to drive advanced test solutions double-digit connectivity grow
Slide 12: 2Q 2018 Results
2Q 2018 Results
Slide 13: Second Quarter 2018 earnings
Second Quarter 2018 earnings We delivered another strong quarter: ▪ Strong revenue growth across nearly all businesses ▪ More than double the Adjusted EBITDA and positive net income versus a loss in the same year ago period Fifth consecutive quarter of year-over-year top line growth and positive net
Slide 14: First half 2018 results continue the strong trajectory
First half 2018 results continue the strong trajectory established in the first quarter…. Six months ended June 30: Revenue (millions) Income (millions) 22% organic revenue $1.2 $26.0 growth year-over-year $21.4 for 2018 $18.9 Continued prudent $13.9 ($1.6) expense management ($2.3) allowed robust d
Slide 15: Continues the record performance of 2017 and trajectory of recent years
….And continues the record performance of 2017 and trajectory of the last several years Twelve months ended December 31: Revenue (millions) Income (millions) Double-digit organic $46.2 $0.6 revenue growth year- $41.9 over-year $34.5 Positive income from continuing operations $21.3 in 20171 ($2.7) ($
Slide 16: Disciplined capital deployment strategy to leverage flexible balance sheet
We have a disciplined capital deployment strategy to leverage our flexible balance sheet and strong cash position Pro-forma for the OPTO divestiture, our balance sheet reflects: ▪ $72 Million in total assets • $48 Million in cash and cash equivalents • $60 Million in working capital A disciplined ap
Slide 17: Why invest in Luna?
Why invest in Luna? Proprietary, measurement technology, offering unprecedented combination of resolution, accuracy and speed Customers in attractive markets: Aerospace, Automotive, Communications, Energy and Defense Positioned to take advantage of trends such as vehicle light-weighting and increasi
Slide 18: Appendix
Appendix
Slide 19: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three Months Ended June 30, 2018 2017 Net income/(loss) $1,067,327 $(221,762) Less loss from discontinued operations, - (298,817) net of income taxes Net income/(loss) from continuing 1,067,327 77,055 operations Interest expense 33,988 60,386 Investmen