14 slides from Lgl Group, Inc. (the)'s earnings presentation, Aug 13, 2013
Slide 1: Q2 2013 Earnings Report
The LGL Group, Inc. (NYSE MKT: LGL) Q2 2013 Earnings Report August 13, 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 $29 million TTM annual revenue Jun 30, 2013 Revenue mix 49% outside the U.S. $6.05 Stock price 8/12/2013 $6.05 52-week high $15.8 million Market capitalization $9.1 million Cash and cash equival
Slide 4: Investment Highlights
Investment Highlights LGL’s subsidiary – MtronPTI, serves large B2B OEM clients that provide solutions to: Internet Communications Technology, and Aerospace and Defense Balanced • 65% Aerospace and Defense (Aero/Defense) Demand • 35% Internet Communications Technology (ICT) • Crystal technology rema
Slide 5: Q2 2013 Results
Q2 2013 Results $7.0M Revenue down 8.1% compared to Q2 2012 sequentially down 3.2% compared to Q1 2013 25.7% Gross margin down 0.8% compared to Q2 2012 sequentially down 6.8% compared to Q1 2013 ($0.32) Pre-tax net loss per share; unfavorable compared to Q2 2012 due to revenue decrease, change in pr
Slide 6: H1 2013 Results
H1 2013 Results $14.4M Revenue down 2.7% compared to H1 2012 29.2% Gross margin up 4.8% compared to H1 2012 ($0.43) Pre-tax net loss per share; up $0.03 per share compared to H1 2012 $9.1M Backlog at end of Q2 2013, up 9% sequentially compared to Q1 2013 Stronger activity in Aero/Defense market; new
Slide 7: Financial Snapshot
Financial Snapshot Quarterly Income Statement Trends Capital Position as of: 6/30/2013 3/31/2013 Total Assets $ 23.7M $ 28.9M • Cash and cash equivalents of $3.50 per share at 06/30/2013 Net Working Capital 14.9M 16.6M Cash-Adjusted Working Capital 7.5M 8.2M • Cash-adjusted working capital of $2.90
Slide 8: Positioning for Growth
Positioning for Growth Capital position strong R&D investments in target markets organic investments (client service, ERP, software-defined radio, low noise radar, website, capacity and capabilities) harsh environment timing joint venture/M&A Key components in major clients’ systems Strong position
Slide 9: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Reconciliation of earnings before taxes (GAAP) to EBITDA (non-GAAP) (000's except percentages) Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Revenue $ 12,397 $ 11,023 $ 9,020 $ 9,646 $ 9,629 $ 7,387 $ 7,174 $ 7,582 $ 7
Slide 10: Working Toward Growth
Working Toward Growth ‒ Major clients reporting market softness for equipment purchases ‒ Repeat orders from existing contracts sluggish and under price pressure ‒ Client demand in ICT market segment has been soft + Strong new product revenue stream across core business + Solid working capital posit
Slide 11: Competitive Landscape
Competitive Landscape Frequency control products industry is undergoing change Several key competitors have formally announced strategic actions Spin-offs Restructuring Sale of assets Goodwill write-downs Commercial product lines are under notable pricing pressure Macroeconomic effec
Slide 12: Recent Announcements
Recent Announcements June 13, 2013 Announced that LGL has received interest regarding acquisition of portions of MtronPTI Announced Special Committee of the LGL Board of Directors and strategic review process Announced warrant dividend to stockholders Announced intent to continue stock repur
Slide 13: 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 13
Slide 14: 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 14