Lgl Group, Inc. (the) · AMEX:LGL
Lgl Group, Inc. (the) — The LGL Group — Investor Presentation (June 2009)
27 slides from Lgl Group, Inc. (the)'s investor presentation, Jun 23, 2009
Slide 1: Welcome to The LGL Group, Inc. Investor Web-cast Conference Call
Welcome to The LGL Group, Inc. Investor Web-cast Conference Call We anticipate starting the business presentation at approximately 8:15 am EST To access the audio portion, please call: Toll Free: 888-942-8686 For International: 303-928-3288 Conference ID:2781812 1
Slide 2: LGL Group (NYSE AMEX: LGL)
LGL Group (NYSE AMEX: LGL) Engineering Service OEM Focused
Slide 3: 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
Slide 4: The Company
The Company • The LGL Group is the parent company for a group of subsidiaries that do business collectively as MtronPTI • MtronPTI is a combination of M-tron, PTI and Champion • MtronPTI designs, builds and sells Frequency Control Products and Electronic Filters – Frequency control products are quar
Slide 5: Good Investment Opportunity
Good Investment Opportunity Long history of providing custom engineered, high value products to a blue chip roster of global OEM corporations Established reputation for high quality and innovation • Custom engineering capabilities and advanced technological designs • Platform for growth into exist
Slide 6: Annual Consolidated Income
Annual Consolidated Income Years Ended THE LGL GROUP, INC. December 31 (In Thousands) 2,008 2,007 Revenues 40,179 39,536 Cost of sales 29,801 29,363 Gross margin - $ 10,378 10,173 Gross margin - % 25.8% 25.7% Impairment loss on Lynch Systems' assets - 905 Engineering, selling and administrative expe
Slide 7: Quarterly Consolidated Income
Quarterly Consolidated Income Three Months Ended March 31 THE LGL GROUP, INC. (In Thousands) 2009 2008 Revenues $7,542 $9,783 Cost of sales 5,892 7,154 Gross margin - $ 1,650 2,629 Gross margin - % 21.9% 26.9% Engineering, selling and administrative expenses 2,554 3,085 Operating Loss (904) (456) Ot
Slide 8: Assets
Assets THE LGL GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEET (In Thousands) March 31, December 31, 2009 2008 2007 Assets Cash and investments $5,497 $5,339 $5,281 Accounts receivable, net 4,133 6,483 6,382 Inventories 5,234 5,121 5,181 Prepaid expenses and other assets 363 400 386 Total Current A
Slide 9: Liabilities & Equity
Liabilities & Equity THE LGL GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEET (In Thousands) March 31, December 31, 2009 2008 2007 Liabilities and Stockholders' Equity Note payable to bank $1,383 $2,749 $1,035 Accounts payable 1,740 2,093 2,535 Accrued expenses 2,864 2,421 2,483 Current maturities o
Slide 10: MtronPTI
MtronPTI Engineering Service OEM Focused 10
Slide 11: What We Do As MtronPTI
What We Do As MtronPTI • Develop and manufacture custom designed highly-engineered electronic components • Provide engineering services to customize these electronic components for specific customer applications • Precision, quartz-based frequency/timing management devices – Used for timing in digit
Slide 12: Our Primary Markets
Our Primary Markets • Telecommunications & Networking Infrastructure – Cell phone base stations – Microwave radios for point-to- point and point-to-multipoint applications – Switches and routers • Military, Avionics and Space – Radar – Communications systems – Electronic warfare – Weaponry 12
Slide 13: MtronPTI's Market Segments
MtronPTI’s Market Segments 13
Slide 14: Major Customers
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Slide 15: Major OEM Customers' Revenue
Major OEM Customers’ Revenue Most Recent Quarter vs 1 Most Recent Telcom Yr Ago Guidance Cisco -17% -17% Nortel -37% Stratex -11% Alcatel-Lucent -7% -10% Ericsson 12% Mil & Aero Rockwell-Collins -4% -8% Honeywell -15% -10% Raytheon 10% 7% Harris 2% 8% Test & Measurement Agilent -25% -25%
Slide 16: Driving Trends in Our Markets
Driving Trends in Our Markets • Telecommunications and Networking – Network centric communications – Mobile system access – Exponential growth of content continues • Military/Avionics – Network enabled troops – GPS tracking/control of assets – Electronic warfare – Unmanned mobile systems • Space – A
Slide 17: Applications Where We Play
Applications Where We Play • Telcom Infrastructure – GPON – WiMax – Wireless and wireline systems • Networking – Wireless area networks – LAN switches – IP phone systems – Enterprise storage systems • Military – JTRS/Manpack/Falcon military radios – Anti-IED jammers – Classified surveillance and ele
Slide 18: Applications Where We Play
Applications Where We Play • Military (cont.) – Military web-enabled communications – Unmanned and long distance surveillance systems • Avionics – Boeing Dreamliner and Airbus A380 – Regional & Private Jets • Space – AEHF – MUOS 18
Slide 19: Technology Leadership
Technology Leadership • Very Low Phase Noise Oscillators – Advanced military radars and surveillance equipment – Advanced homeland security detection systems • Very Low Vibration Sensitivity Oscillators – Mobile radar and surveillance equipment needs to be unaffected by vibration – Critical applicat
Slide 20: Our Global Footprint
Our Global Footprint Manufacturing/R&D Locations Yankton, SD, USA Orlando, FL, USA New Delhi, India Contract Partners Sales Locations Qingdao, China Orlando, FL, USA Yankton, SD, USA Cheonan, South Korea San Jose, CA, USA Monroe, CT, USA Yantai, China Eindhoven, Netherlands Beijing, China Shanghai,
Slide 21: Engineering Focus
Engineering Focus • Custom Designed “Highly Engineered” devices – Our focus – Unusual frequencies – Specialized signal characteristics – Extreme environment – Results in higher revenue per unit and margins • Subsystems – Our emerging focus – Timing with added functions – Signal management with added
Slide 22: OEM Centric
OEM Centric • MtronPTI is focused on business growth at the leading OEMs in its primary markets • These leading companies control most aspects of the buying cycle for MtronPTI products, although they often do not place the purchase orders directly • Many of these companies have preferred supplier pr
Slide 23: Focused Management
Focused Management • Right size the company for the macro economic decline – Major structural spending cuts have been completed – Additional reductions are under consideration – Clear focus on cash flow and cash preservation • Relentless focus on improving margins – Focused engineering work for high
Slide 24: Focused Management
Focused Management • Expand OEM position in China and India – Leverage supplier and partner relationships – Grow with U.S. OEM manufacturers into Asia • Preserve and grow core engineering expertise – Leverage relationships with timing integrated circuit companies – Go to market with new technology c
Slide 25: Recent News
Recent News • Milestone in Space Business • New COO • GPS Disciplined Oscillator • India Expansion • Modular Timing Subsystems 25
Slide 26: Reaching the Investor
Reaching the Investor – Participated in selected investor conferences • Presented at the Red Chip Investor Conference in March • Presented at the Tech America (AeA) MicroCap Conference in April – Improve the flow of communications into the investor community • Positive growth oriented tone to our fi
Slide 27: Compelling Investment Considerations
Compelling Investment Considerations 27