Intest Corporation · AMEX:INTT
Intest — Colliers Institutional Investor Conference 2021
36 slides from Intest's conference presentation, Sep 9, 2021
Slide 1: Innovative Test & Process Solutions
Innovative Test & Process Solutions Colliers Institutional Investor Conference September 9, 2021 Nick Grant Duncan Gilmour President and CEO Treasurer and CFO
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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
Slide 3: inTEST Corporation (NYSE American: INTT)
inTEST Corporation (NYSE American: INTT) A global supplier of innovative test and process solutions for use in manufacturing and testing across a wide range of markets, including automotive, defense/aerospace, industrial, medical, semiconductor and telecommunications. Nick Grant President and CEO
Slide 4: Vision and Mission
Vision To be the Supplier of Choice for Innovative Test and Process Technology Solutions Mission Leverage our Deep Industry Knowledge & Expertise to Develop and Deliver High Quality, Innovative Customer Solutions and Superior Support for Complex Global Challenges 4
Slide 5: Product and Industry Expertise
Product and Industry Expertise Solve technical challenges others can’t - thermally, mechanically, electronically Temperature Forcing Systems | Thermal Chambers | Low-temp Chillers | Induction Heating Systems | ATE Test Head Manipulators, Docking, and Interfaces 5
Slide 6: Global Presence
Global Presence 2021 YTD Net Revenue by Region Manufacturing Sales, Service, Support UK Germany 32% New York Massachusetts. California Netherlands New Jersey 52% (HQ) Singapore 16% Asia/Pacific Europe/MEA Americas 40+ Channel Partners (Reps/Dist.) complement our Direct Sales Teams 6
Slide 7: Markets Served
Markets Served Historical Markets: Semiconductor Manufacturers – End Users (Test Facilities, Labs, Production Floor) ATE Equipment Suppliers – OEMs Multimarkets: Automotive, consumer electronics, defense/aero, telecom, industrial 7
Slide 8: Serving Diverse Applications
Serving Diverse Applications 2021 YTD Bookings by Market 2021 YTD Revenue by Product $50.3 million $41.1 million 1% 5% 2% 18% 22% 16% 6% 1% 5% 4% 18% 67% 24% 8% 3% Semi Auto Mil/Aero ThermoStreams Chillers Induction Telecom Industrial Medical/Other Chambers Manipulators Docking Interfaces Service Ot
Slide 9: Decentralized Business Model Drive Operating Leverage
Decentralized Business Model Drive Operating Leverage inTEST Corporation (NYSE American: INTT) Thermal Segment EMS Segment 9
Slide 10: EMS Segment Solutions – Specialty Leadership in Semi
EMS Segment Solutions – Specialty Leadership in Semi Products Applications Test Provides high integrity signal path between Interfaces DUT and tester Docking Improves accuracy and integrity of test results and Systems protects delicate test interface components Ease of positioning test heads for any
Slide 11: Thermal Segment Solutions
Thermal Segment Solutions Test Solutions Process Solutions Space Research Network Infrastructure Missile Guidance Brazing, catheter Hot heading, brazing, Brazing, metal-to- -185°C 350°C -10°C 60°C -60°C 150°C tipping, nanoparticle annealing, shrink plastic, curing, heating fitting hardening 1-10 kW
Slide 12: New Strategy and Focus
New Strategy and Focus Core Growth Strategies Growth Focus Global & Customer Focus Strategic Market Acquisitions & Expansion Partnerships Innovation Talent & & Culture Differentiation Standardization & Innovation Focus Scalability Service & Support Intellidock™ System 12
Slide 13: Thermal Segment: Growth Applications in Emerging Markets
Thermal Segment: Growth Applications in Emerging Markets Electric Vehicles Cannabis Extraction Wide-ranging induction heating solutions for heating metal and Broad chiller solutions used in THC and CBD extraction plastic parts in the manufacturing processes of electric vehicles processes where it’s
Slide 14: EMS Segment: Organic Growth through Innovation
EMS Segment: Organic Growth through Innovation 14
Slide 15: Blue-Chip Customer Base
Blue-Chip Customer Base INSTRUMENTS SONY TE=5LAi ves «6 A@—Ss« SIEMENS DELPHI LOCKHEED martin TOSHIBA (96) S Google CONE Wal & Cisco Raytheon TERADYNE intel. 15 inTEST EMERSON.
Slide 16: Top 10 Customers: 45% of Revenue
Top 10 Customers: 45% of Revenue Top 10 customers are Semi related with the exception of Hakuto which is both Semi and Multimarkets 16
Slide 17: Financial Overview
INTEST Corporation Financial Overview
Slide 18: Semi Demand Driving Consolidated Revenue
Semi Demand Driving Consolidated Revenue ($ in millions) Q2 2021 revenue up 64% y/y and up $21.8 11% sequentially $19.6 Strength in semi market drove growth $14.4 $14.9 $13.3 $15.7 Managed supply chains and solved resource $13.3 $7.6 challenges to deliver above expectations for $6.9 $7.4 the quarter
Slide 19: Operating Performance
Operating Performance 2021 2021 2018 2019 2020 Q1 Q2 Gross Margin 50% 48% 45% 49% 50% SG&A 29%b 36%a 38%c 29% 30%d Eng. & Prod. 6% 8% 9% 7% 6% Development Operating Margin 15%b 5%a (2)%c 13% 14%d EBITDA Margin(1) 9%b 8%a 1%c 16% 16%d (Non-GAAP) (1) See supplemental slides for EBITDA reconciliation a
Slide 20: Strengthening Earnings Power
Strengthening Earnings Power Net Income and EPS Adjusted Net Income and EPS (1) (Non-GAAP) $2.6 $2.9 $2.2 $2.5 $0.8 $0.5 $0.5 $0.2 ($0.4) ($0.1) Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 $0.02 $0.04 ($0.04) $0.21 $0.24 $0.05 $0.07 ($0.01) $0.24 $0.27 (1) See supplemental slides for
Slide 21: Strong and Flexible Balance Sheet
Strong and Flexible Balance Sheet ($ in millions) June 30, Dec. 31, 2021 2020 Generated $4.2 million of cash from Cash and cash equivalents $ 14.6 $ 10.3 operations in Q2 21 Working capital 25.0 18.1 In April 2021, increased revolving credit facility from $7.5 million to $10.0 million Total assets 7
Slide 22: Bookings and Backlog
Bookings and Backlog ($ in millions) Bookings $25.2 $25.1 80% $17.6 YoY $13.9 $14.4 Q2 Multimarket Book: Bill of 1.40 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Backlog $20.4 $17.1 134% YoY $11.5 $8.7 $8.7 Q2 backlog stretching out over time as industry lead-times grow Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 22
Slide 23: Q3 2021 Guidance
Q3 2021 Guidance (provided 8/6/2021) Net Revenue $20.5M to $21.5M Gross Margin 49% to 51% GAAP Net Earnings per diluted share $0.18 to $0.22 Non-GAAP Adjusted Net Earnings per diluted share $0.21 to $0.25 This outlook is based on the Company’s current views with respect to operating and market condi
Slide 24: The Path Ahead: It's ALL about Growth
The Path Ahead: It’s ALL about Growth Growth through Innovative Technologies Increased focus on differentiated/disruptive technologies Expansion of complementary capabilities Driving a broader use of customer applications and standardization Growth through Geographic and Market Expansion Enh
Slide 25: Reconciliations for Non-GAAP Measures
Reconciliations for Non-GAAP Measures
Slide 26: Reconciliations for Non-GAAP Measures
Reconciliations for Non-GAAP Measures (Dollars in thousands) Reconciliation of Net Earnings (Loss) (GAAP) to EBITDA (Non-GAAP) Years Ended December 31, 2018 2019 2020 Net earnings (loss) (GAAP) 3,037 2,322 (895) Net interest (income) expense (22) (17) 33 Income tax expense (benefit) 2,006 282 (336)
Slide 27: Reconciliations for Non-GAAP Measures
Reconciliations for Non-GAAP Measures (Dollars in thousands) Reconciliation of Net Earnings (Loss) (GAAP) to Quarters Ended EBITDA (Non-GAAP) 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 Net earnings (loss) (GAAP) 170 458 (380) 2,212 2,609 Net interest (income) expense 25 4 4 0 2 Income tax expense (ben
Slide 28: Reconciliations for Non-GAAP Measures
Reconciliations for Non-GAAP Measures (Dollars in thousands, except per share) Reconciliation of Net Earnings (Loss) (GAAP) to Adjusted Net Earnings (Loss) (Non-GAAP) and Net Earnings (Loss) Per Diluted Quarters Ended Share (GAAP) to Adjusted Net Earnings (Loss) Per Diluted Share (Non-GAAP) 6/30/20
Slide 29: Appendix
INTEST Corporation Appendix
Slide 30: inTEST History
inTEST History Founded in 1981, inTEST served the Semiconductor industry with manipulator and docking systems to support ATE production test equipment at end users and OEMs. As the success of its engineered solutions grew, the company established operations in Asia, quickly followed by a subsidiary
Slide 31: inTEST Organization & Markets Served
inTEST Organization & Markets Served Business Segments Brands Focus Semiconductor (Semi) | Multimarket Ambrell | Temptronic | Sigma Systems Electronic Test | Process Cooling Thermonics | EMS Products Induction Heating SEMICONDUCTOR MARKET MULTIMARKET Back-End Front-End Electronic Test Industrial Eng
Slide 32: inTEST Segments
inTEST Segments Designs and manufactures engineered solutions for Automated Test Equipment (ATE) and other electronic test, as well as industrial process applications. Thermal Segment inTEST Thermal Solutions (iTS): Temperature affects everything and that’s why it is critical to many test and proces
Slide 33: Merger & Acquisition History
Merger & Acquisition History Ambrell 2017 Thermonics 2012 Sigma Systems 2008 Intelogic Tech 2002 Temptronic 2000 Test Design Technology driven 1998 acquisitions inTEST Founded 1981 Thermal EMS Segment Segment 33
Slide 34: inTEST Thermal Test & Process Solutions
inTEST Thermal Test & Process Solutions MobileTemp ThermoStreams Thermal Chambers Platforms EasyHeat® Induction EKOHeat® Induction Heating Systems Heating Systems 34
Slide 35: inTEST Custom Thermal Test Solutions
inTEST Custom Thermal Test Solutions Energy application for Satellite application for Consumer electronics testing sensors and testing microwave application for electronics amplifiers characterizing RF (WiFi, Three zone chamber Two-zone plate provides Bluetooth) components allows independe
Slide 36: inTEST EMS Semi-ATE Solutions
inTEST EMS Semi-ATE Solutions Test Head Side Test Head Docking Hardware Interface Board Test Interface Manipulator Probe Card Thermal Chuck Wafer Prober Prober Side Docking Hardware Equipment supplied by inTEST EMS Products 36
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