Slide 1: inTEST Corporation – LD Micro Invitational
inTEST Corporation LD Micro Invitational Nick Grant Duncan Gilmour President and CEO Chief Financial Officer April 9, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements do not convey historical information but relate to predicted or potential future events and financial results, suc
Slide 3: Unlocking The Potential
Unlocking The Potential Nick Grant Duncan Gilmour President and CEO Chief Financial Officer and Treasurer Vision To be the supplier of choice for innovative test and process technology solutions Leverage our deep industry knowledge & expertise to develop and deliver high quality, Mission innovative
Slide 4: Transforming inTEST
Transforming inTEST Transition from Components to Solutions Provider 1 Shift to Diversified Markets with Strong, Secular Growth ▪ Megatrends in a number of diverse industries and end‐markets driving significant upside ▪ New organizational structure (5‐Point Strategy) to better align with customer ne
Slide 5: Strong Foundation For Growth
Strong Foundation For Growth inTEST: Known for Highly-Engineered, Customer-Driven Solutions Growing and Diversified Markets Blue-Chip Global Customer Global Presence Blue-Chip Global Customer Base Base ➢ Semiconductor ➢ 2023 Revenue: $123.3M ➢ Industrial ▪ 39.9% Americas ➢ Automotive/EV ▪ 32.3% APAC
Slide 6: 5-Point Strategy Drives Long-Term Value
5-Point Strategy Drives Long-Term Value ➢ Grow Top-Line Through Geographic ➢ Drive Innovation and and Market Expansion Technological Differentiation ▪ Further penetrate existing markets with Global & ▪ Leverage expertise to deliver highly-valued Innovation & infrastructure investments Market Differe
Slide 7: Acquired Alfamation in March 2024
Acquired Alfamation in March 2024 • Founded in 1991 FY23 Sales by Industry Segment FY23 Customer Concentration • Headquartered in Milan, 7% Others, Italy with sales and 3% 16% service center in 3% 3% Suzhou City, China 1% 3% 48% • ~130 employees 89% 5% 5% • Privately-held by founder who is staying w
Slide 8: Expanding Electronic Test Capabilities
Expanding Electronic Test Capabilities Consistent with 5-Point Strategy for Growth Cultural fit as an innovative engineering and technology solutions provider Strategic Fit: expands test capabilities and footprint in Europe + Deepens market reach in auto/EV, life sciences & consumer electronics Best
Slide 9: Serving Large and Diverse Markets
Serving Large and Diverse Markets ($ in millions) 2023 inTEST $2.5B+ SAM* Electronic Environmental Process Test Technologies Technologies ~$600M ~$600M ~$1.0B+ Serviceable Addressable Markets (SAM) $150 $200 $250 $200 $400 $350 $600+ Semi Test In-Circuit Automated Thermal Test Cold Chain Induction I
Slide 10: Driving Market Leadership/Opportunities
Driving Market Leadership/Opportunities Targeting markets with strong, secular tailwinds inTEST Revenue by Market* Expected 5-Year Markets Market Growth** Served 3% to 6% Semi Markets Industrial 3% to 6% Defense/Aero 3% to 6% 2025E 2023 Targeted Growth Markets 2022 Auto/EV 5% to 8% Life Sciences 6%
Slide 11: Electronic Test Division
Electronic Test Division Engineering solutions for the toughest challenges in automated test ➢ Growth drivers: semi mixed-signal/analog focused and strength in Auto/EV market; expanded presence in defense and life sciences ➢ Markets: Back-end Semi Test, Industrial, Auto/EV, Life Sciences, Defense/Ae
Slide 12: Environmental Technologies Division
Environmental Technologies Division Creating and controlling environmental conditions in test, process and storage applications ➢ Growth drivers: strong position in Back-end Semi Test/R&D, increasing demand in Defense, Auto/EV and Life Sciences ▪ Life Sciences cold chain solutions serve vaccine stor
Slide 13: Process Technologies Division
Process Technologies Division Technical expertise and customized solutions for industrial applications ➢ Growth drivers: solutions for silicon carbide crystal growth, automotive/EV manufacturing, security and life sciences driving significant demand for induction heating and imaging solutions ➢ Addr
Slide 14: Making M&A a Core Competency
Making M&A a Core Competency Completed four acquisitions since implementing 5-Point Strategy M&A Eco-System Disciplined M&A Process Acquire quality businesses to drive shareholder value Expand into fast growing markets Offer broader portfolio of solutions Strategy M&A Development Execution Drive fur
Slide 15: Success Building Our Vision
Success Building Our Vision Innovative Test and Process Technology Solutions Acquisition Strategy: Scaling Divisions Electronic Test ▪ Broader and complementary technology/applications ▪ Diversify outside of Semi market ▪ Deepen geographic market reach in Europe, Asia, Latin America ▪ Expand custome
Slide 16: Financial Overview
Financial Overview 16
Slide 17: Revenue
Revenue ($ in millions) Years Quarters ➢ Record revenue in 2023 of $123.3 million, up $6.5 million, or 6% $32.4 $116.8 $123.3 $27.9 ➢ 2023 versus 2022 comparison: $84.9 ▪ Driven by $5.5 million increase in defense/aero, or 79% $53.8 ▪ Increase in industrial market of $4.3 million, or 43% 2020 2021 2
Slide 18: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Years Quarters ➢ 2023 gross profit increased $3.5 million ▪ Gross margin expanded 50 bps y/y to 46.2% $15.0 on higher volume, favorable mix and ongoing $57.0 $53.4 pricing and cost actions $12.4 $41.2 ➢ Q4 gross profit of $12.4 million decreased $2.5 million y
Slide 19: Operating Expenses
Operating Expenses Continuing to invest to support 5-Point Strategy for Growth ($ in millions) Operating expenses as a % of sales ➢ 2023 operating expenses up $3.8 million y/y, and increased as a percent of sales 47.0% 38.6% 36.6% 37.7% 33.8% 40.7% 110 bps to 37.7% Years Quarters ▪ Increase included
Slide 20: Earnings and Adjusted EBITDA
Earnings and Adjusted EBITDA(1) ($ in millions, except per share data) Net Earnings and Adjusted EBITDA/ (1) (1) EPS and Adjusted EPS Adjusted EBITDA Margin Quarters Quarters $5.3 $0.34 $0.30 $3.2 $0.16 $2.4 $0.12 $1.5 16.2% 8.7% Q4 22 Q4 23 Q4 22 Q4 23 Years Years $16.0 $15.8 $0.99 $0.94 $0.81 $12.
Slide 21: Capital Structure and Cash Flow
Capital Structure and Cash Flow ($ in millions) Year Year Capitalization Cash Flow Ended Ended 12/31/23 12/31/22 12/31/23 12/31/22 Cash and cash equivalents $ 45.3 $ 13.4 Net cash provided by (used in) operating $ 16.2 $ (1.4) activities Total debt $ 12.0 $ 16.1 Capital expenditures (1.3) (1.4) Shar
Slide 22: Capital Allocation Priorities
Capital Allocation Priorities I. GROWTH Invest in engineering, Innovative Solutions and sales & marketing Market Expansion Continue programmatic M&A Acquisitions and Partnerships II. BALANCE SHEET Maintain Capital Expenditures between 1% to 2% of Sales Manage capital structure responsibly Manage Tot
Slide 23: Orders and Backlog
Orders and Backlog(1) ($ in millions) Orders ➢ Q4 orders down 12% y/y, up 2% sequentially Years Quarters $129.6 $31.3 ▪ Defense/aerospace orders strong y/y and $116.6 sequentially, up 53% and 70%, respectively $101.9 $27.5 ▪ Industrial orders recovered in the fourth quarter, up $59.7 30% y/y and mor
Slide 24: Outlook for 2024
Outlook for 2024 ➢ First Quarter Outlook(1) Revenue: ~$29 million 5-Point Strategy Gross margin: 45% to 46% Operating expenses: ~$13 million Intangible asset amortization expense: ~$0.6 million Amortization (after tax): ~$0.5 million (or ~$0.04 per share) Global & Innovation & Effective tax rate: 16
Slide 25: Executing to Plan
Executing to Plan ($ in millions) 5 $200 to $250 202 0 to Potential Future 20 2 CAGR Acquisitions + ~30% $145 to $155 $117 $123 $85 $54 2020 2021 2022 2023 2024E 2025E Actual Revenue Estimated Revenue(1) (1) Estimated revenue, including estimated revenue from future potential acquisitions, is based
Slide 26: Driving Scale to Deliver Growth in Earnings
Driving Scale to Deliver Growth in Earnings ($ in millions) Division Operating Income(1) Adjusted EBITDA(2) Net Earnings ~ $40 + ~ $30 + ~ $20+ - $22 $23 + $19 $16 $16 $12 $9 $8 $7 22% 19% 20% ~20% 14% 14% 13% ~15% 9% 7% 8% ~10% ∕∕ (3) ∕∕ ∕∕ 2021 2022 2023 2025E 2021 2022 2023 2025E (3) 2021 2022 20
Slide 27: Execution on Track with Plan
Execution on Track with Plan Innovative technologies leveraging engineering expertise Diversified end markets with strong secular growth drivers Growing customer base, deepening customer reach and expanding geographically Financial flexibility to execute growth strategy Executing 5-Point Strategy an
Slide 28: inTEST Corporation – LD Micro Invitational
inTEST Corporation LD Micro Invitational Nick Grant Duncan Gilmour President and CEO Chief Financial Officer April 9, 2024
Slide 29: Supplemental Information
inTEST Corporation Supplemental Information
Slide 30: Reconciliation of Net Earnings to Adjusted Net Earnings and EPS
Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) and Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share (Non-GAAP) ($ in thousands, except per share amounts) Three Months Ended 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 Net earnings $ 3,244 $ 2,817 $ 2,793 $
Slide 31: Reconciliation of Net Earnings to Adjusted Net Earnings and EPS
Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) and Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share (Non-GAAP) ($ in thousands, except per share amounts) Years Ended 12/31/2020 12/31/2021 12/31/2022 12/31/2023 Net earnings (loss) $ (895) $ 7,283 $ 8,461 $ 9,342 A
Slide 32: Reconciliation of Net Earnings to Adjusted EBITDA
Reconciliation of Net Earnings and Net Margin to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP) ($ in thousands) Three Months Ended 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 Net earnings $ 3,244 $ 2,817 $ 2,793 $ 2,277 $ 1,455 Acquired intangible amortization 552 544 523
Slide 33: Reconciliation of Net Earnings to Adjusted EBITDA
Reconciliation of Net Earnings and Net Margin to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP) ($ in thousands) Years Ended December 31, 2020 2021 2022 2023 Net earnings (loss) $ (895) $ 7,283 $ 8,461 $ 9,342 Acquired intangible amortization 1,233 1,440 2,694 2,095 Net interest ex
Slide 34: Reconciliation of Q1 2024 Estimated EPS to Adjusted EPS
Reconciliation of First Quarter 2024 Estimated Earnings Per Diluted Share to Estimated Adjusted Earnings Per Diluted Share (Non-GAAP) Q1 2024E Estimated earnings per diluted share $ 0.06 Estimated acquired intangible amortization 0.05 Estimated tax adjustments (0.01) Estimated adjusted earnings per
Slide 35: Segment Reporting
Segment Reporting ($ in thousands) Three Months Ended Years Ended 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 12/31/2022 12/31/2023 Electronic Test $ 11,236 $ 10,371 $ 10,993 $ 11,547 $ 8,105 $ 40,219 $ 41,016 Environmental Technologies 8,041 8,042 8,136 7,000 7,623 30,172 30,801 Process Tec
Slide 36: inTEST Corporation
inTEST Corporation LD Micro Invitational Nick Grant Duncan Gilmour President and CEO Chief Financial Officer April 9, 2024