Intest Corporation · AMEX:INTT

Intest — Needham Semiconductor & SemiCap Conference 2022

30 slides from Intest's conference presentation, Aug 25, 2022

  1. Slide 1: inTEST Corporation – Needham Semiconductor & SemiCap Conference

    8/24/2022 inTEST Corporation Needham Semiconductor & SemiCap Conference Nick Grant Duncan Gilmour President and CEO Chief Financial Officer August 25, 2022 1 1

  2. Slide 2: Forward-Looking Statements

    8/24/2022 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 re

  3. Slide 3: Unlocking The Potential

    8/24/2022 Unlocking The Potential 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 customer solutions and superior support for complex global challenges Ni

  4. Slide 4: Transforming inTEST

    8/24/2022 Transforming inTEST Supplier of Choice for Innovative Test and Process Technology Solutions Robust long-term growth strategy Emphasis on diversified growth markets Electronic and acquisitions Test Process Technologies 35% Q2’22 TTM 36% Clear, consistent, continuous investor and Revenue emp

  5. Slide 5: 5-Point Strategy Drives Long-Term Value

    8/24/2022 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 Mark

  6. Slide 6: Strong Foundation For Growth

    8/24/2022 Strong Foundation For Growth inTEST: Known for Highly-Engineered, Customer-Driven Solutions Growing and Diversified Markets Blue-ChipGlobal Blue-Chip GlobalCustomer CustomerBase Global Presence Base  Semiconductor  TTM Q222 Revenue: $97.2M  Industrial  36.2% APAC  Automotive/EV  40.9

  7. Slide 7: Serving Large and Diverse Markets

    8/24/2022 Serving Large and Diverse Markets ($ in millions) inTEST $2.0B+ SAM* Entering 2022 Electronic Environmental Process Test Technologies Technologies ~$350M ~$680M ~$1.3B+ Serviceable Addressable Markets (SAM) $150 $200 $180 $500 $310 $1B+ Semi Test In-Circuit Test Thermal Test Cold Chain Ind

  8. Slide 8: Driving Market Leadership/Opportunities

    8/24/2022 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% 2021 2022E 2025E Targeted Growth Markets Auto/EV 5% to 8% Life S

  9. Slide 9: Electronic Test

    8/24/2022 Electronic Test Engineering solutions for the toughest challenges in automated test  Market footprint expands beyond Semi to include Industrial, Auto/EV, Life Sciences and Defense/Aero  Bringing automation/integration to back-end semi test; solutions enable testers to work with virtually

  10. Slide 10: Environmental Technologies

    8/24/2022 Environmental Technologies Creating and controlling environmental conditions in test, process and storage applications  Born in Semi, product standardization and acquisitions broadened markets significantly:  Life Sciences cold chain solutions serves vaccine development, medical advancem

  11. Slide 11: Process Technologies

    8/24/2022 Process Technologies Technical expertise and customized solutions for industrial applications  Addressable market expands through product development, global lab extension and acquisitions:  Induction heating and recently acquired Videology camera applications combine to serve large, div

  12. Slide 12: Making M&A a Core Competency

    8/24/2022 Making M&A a Core Competency M&A Eco-System Deal Focus Acquire quality businesses to drive shareholder value Expand into fast growing markets Offer broader portfolio of solutions Strategy M&A Development Execution Drive further market diversification M&A Eco- Enhance value-added technology

  13. Slide 13: M&A / Corporate Development

    8/24/2022 M&A / Corporate Development Significant progress made in year one of strategy deployment Completed three acquisitions (4th Quarter 2021) Disciplined M&A process in place from target investigation to integration Focus on expanding technologies, geographies and markets served Building a stro

  14. Slide 14: Financial Overview

    8/24/2022 Financial Overview 14 14 14

  15. Slide 15: Revenue

    8/24/2022 Revenue ($ in millions)  Q2 record revenue up $7.8 million, or 36% $29.6  Three Q4 2021 acquisitions added $5.2 million  12% organic growth y/y $24.1 $21.8 $22.4  23% sequential growth $21.1  Strong improvement across markets Q2 21 Q3 21 Q4 21 Q1 22 Q2 22  Solid demand in front-end s

  16. Slide 16: Gross Profit and Margin

    8/24/2022 Gross Profit and Margin ($ in millions) Quarters  Q2 gross profit increased $2.5 million $13.5  Margin contraction vs. prior-year period result of less $11.0 $10.4 $10.3 $11.0 favorable product mix • Prior-year period benefitted from significant volume in legacy back-end semi test soluti

  17. Slide 17: Operating Expenses

    8/24/2022 Operating Expenses Investing in people and marketing to support 5-Point Strategy for Growth ($ in millions) Operating expenses as a % of sales  Q2 operating expenses up $609,000, sequentially 36.3% 37.1% 45.0% 42.4% 36.6% $10.8  Reflects merit increases and continued growth-related $10.1

  18. Slide 18: Earnings and Adjusted EBITDA

    8/24/2022 Earnings and Adjusted EBITDA ($ in millions, except per share data)  Demonstrating operating leverage as the organization Adjusted EBITDA and Margin(1) scales to further drive earnings power Quarters $4.2  Adjusted EPS reflects $603,000 (after tax) of acquired $4.0 $3.4 intangible amorti

  19. Slide 19: Capital Structure and Cash Flow

    8/24/2022 Capital Structure and Cash Flow ($ in millions) Capitalization Year Cash Flow Six Months Ended Ended 6/30/22 3/31/22 6/30/22 6/30/21 12/31/21 Cash and cash equivalents $ 10.5 $ 17.2 Net cash provided by Short term investments $ 3.5 $ ─ (used in) operating $ (5.1) $ 3.9 $ 10.8 Total debt ac

  20. Slide 20: Orders and Backlog

    8/24/2022 Orders and Backlog ($ in millions) Orders $40.5  Record orders, up 60% with strong demand from all $30.5 end markets $25.1 $25.1 $21.1  Book-to-bill of 1.4  Acquisitions added to demand especially in security and defense  Semi front-end and back-end orders strengthened Q2 21 Q3 21 Q4 2

  21. Slide 21: 2022 Outlook

    8/24/2022 2022 Outlook  Executing our 5-Point Strategy to continue driving growth 5-Point Strategy  Innovative solutions gaining confidence among growing customer base  Increasing volume of longer term commitments  2022 Outlook & Q3 Guidance(1) Global & Innovation & Market  2022 revenue: $110 m

  22. Slide 22: Executing to Plan

    8/24/2022 Executing to Plan ($ in millions) ~$200 to $250 Future Acquisitions ~$110 to $115 $85 $54 ∕∕ 2020 2021 2022E 2025E 22 22 22

  23. Slide 23: Scale Expected to Drive Operating Leverage

    8/24/2022 Scale Expected to Drive Operating Leverage ($ in millions) Division Operating Income* Adjusted EBITDA1 Net Income (Loss) ~ $40 + ~ $30 + ~ $20 + $19 $12 $7 $7 $1 13% 23% ~20% 2% 14% ~15% 9% ~10% ($1) ∕∕ ∕∕ ∕∕ 2020 2021 2025E 2020 2021 2025E 2020 2021 2025E 1 Adjusted EBITDA is a non-GAAP f

  24. Slide 24: Strong First Half on Track with Plan

    8/24/2022 Strong First Half on Track with Plan Strong demand for innovative technologies and engineering expertise Diversified end markets with strong secular growth drivers Increasing customer base, deepening customer reach and expanding geographically Financial flexibility to execute growth strate

  25. Slide 25: inTEST Corporation

    8/24/2022 inTEST Corporation Needham Semiconductor & SemiCap Conference August 25, 2022 25 25

  26. Slide 26: Supplemental Information

    8/24/2022 Supplemental Information 26 26 26

  27. Slide 27: Adjusted Net Earnings Reconciliation

    8/24/2022 Adjusted Net Earnings Reconciliation ($ in thousands) Three Months Ended 6/30/2022 6/30/2021 3/31/2022 Net earnings (GAAP) $ 2,116 $ 2,609 $ 577 Acquired intangible amortization 765 305 782 Tax adjustments (162) (4) (93) Adjusted net earnings (Non-GAAP) $ 2,719 $ 2,910 $ 1,266 Diluted weig

  28. Slide 28: Adjusted EBITDA Reconciliation

    8/24/2022 Adjusted EBITDA Reconciliation ($ in thousands) Three Months Ended Twelve Months Ended 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 Q2 22 TTM 2021 2020 2019 Net earnings (GAAP) $ 2,116 $ 577 $ 287 $ 2,175 $ 2,609 $ 5,155 $ 7,283 $ (895) $ 2,322 Acquired intangible amortization 765 78

  29. Slide 29: Adjusted EPS Reconciliation

    8/24/2022 Adjusted EPS Reconciliation Estimated Q3 2022 Guidance Low High Estimated earnings per share – diluted (GAAP) $ 0.20 $ 0.25 Estimated acquired intangible amortization 0.06 0.06 Estimated tax adjustments (0.01) (0.01) Estimated adjusted earnings per share – diluted (Non-GAAP) $ 0.25 $ 0.30

  30. Slide 30: Segment Reporting

    8/24/2022 Segment Reporting Reclassification of 2021 ($ in thousands) Quarter Ended Year Ended 6/30/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 12/31/2021 Electronic Test $ 9,054 $ 8,103 $ 6,851 $ 8,778 $ 9,797 $ 32,509 Environmental Technologies 6,647 6,875 7,176 6,993 7,507 26,896 Process Techno

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