Lgl Group, Inc. (the) · AMEX:LGL
Lgl Group, Inc. (the) — The LGL Group — Q4 2012 Earnings Presentation
13 slides from Lgl Group, Inc. (the)'s earnings presentation, Mar 28, 2013
Slide 1: Q4 2012 Earnings Report
The LGL Group, Inc. (NYSE MKT: LGL) Q4 2012 Earnings Report March 28, 2013 – 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 $30 million 2012 revenue Revenue mix 50% outside the U.S. $5.60 Stock price 3/27/2013 $7.91 52-week high $14.5 million market capitalization $10.1 million cash and cash equivalents Dec 31, 2013
Slide 4: Investment Highlights
Investment Highlights LGL’s subsidiary – MtronPTI, serves large B2B OEM clients that provide solutions to: Internet Communications Technology (ICT), Military, Aerospace and Instrumentation Balanced • ~50% ICT infrastructure Demand • ~50% Military, Aerospace and Instrumentation (MAI) • Crystal techno
Slide 5: Q4 2012 Results
Q4 2012 Results $7.6M revenues up 2.7% compared to Q4 2011 sequentially up 4.6% compared to Q3 2012 30.7% gross margin up 2.8% compared to Q4 2011 sequentially up 6.2% compared to Q3 2012 ($0.08) loss per share; improved $0.04 compared to Q3 2012 $8.7M backlog at end of Q4 2012, unchanged compared t
Slide 6: FY 2012 Results
FY 2012 Results $29.7M revenues down 16.7% compared to FY 2011, 26.1% gross margin down 4.1% compared to FY 2011 ($0.51) loss per share; down from EPS of $0.15 in FY 2011 $8.7M backlog at end of Q4 2012, up 1% compared to Q4 2011 (3.2%) EBITDA for FY 2012, down from 4.1% for FY 2011 6
Slide 7: Economic Environment
Economic Environment Overall weak macroeconomic climate no notable structural recovery in target markets compounding macro factors since H2 2011: Japanese natural disaster, U.S. budget uncertainty and sequestration, Euro crisis major clients appear to be sitting on the sidelines delayed microelectro
Slide 8: Financial Snapshot
Financial Snapshot $14.0 Quarterly Income Statement Trends 50.0% 36.3% 37.6% $12.0 $12.5 $12.4 31.7% 40.0% 34.1% 32.6% 31.8% $10.0 28.0% 30.7% $10.7 27.9% 26.5% 30.0% $11.0 $9.7 24.5% $9.0 22.3% $8.0 20.6% $9.6 18.9% $7.6 $7.6 20.0% $7.4 $7.2 $7.3 $6.0 13.0% 11.2% 7.9% 6.4% 3.5% 10.0% $4.0 0.5% -1.2
Slide 9: Positioned for Growth
Positioned for Growth Capital position strong Retained all major clients investing in organic opportunities, despite decline in their overall orders joint venture/M&A Key components in major clients’ systems Strong position in Commercial Avionics very “sticky” with high switching costs Industry pred
Slide 10: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Reconciliation of earnings before taxes (GAAP) to EBITDA (non-GAAP) (000's except percentages) Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Revenue $ 10,701 $ 12,535 $ 12,397 $ 11,023 $ 9,020 $ 9,646 $ 9,629 $ 7,387 $
Slide 11: Working Toward Growth
Working Toward Growth ‒ Major clients reporting market softness for equipment purchases ‒ Repeat orders from existing contracts sluggish + Strong new product revenue stream across core business + Solid working capital position + Margins and operating efficiencies remain favorable Growth Drivers for
Slide 12: 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 12
Slide 13: Question and Answer
Question and Answer 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 13