Lgl Group, Inc. (the) · AMEX:LGL
Lgl Group, Inc. (the) — Q1 2014 Earnings Presentation
14 slides from Lgl Group, Inc. (the)'s earnings presentation, May 14, 2014
Slide 1: The LGL Group, Inc. Q1 2014 Earnings Report
The LGL Group, Inc. (NYSE MKT: LGL) Q1 2014 Earnings Report May 13, 2014 — 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 f itronPTy $25 million TTM annual revenue war 31, 2014 $7.6 million cash and cash equivalents yar31, 2014 Revenue mix 47% outside the U.S. $4.75 Stock price way 12, 2014 $6.52 52-week high $12.3
Slide 4: Investment Highlights
Investment Highlights LGL’s subsidiary — MtronPTI, serves large B2B OEM clients that provide solutions t Internet Communications Technology, and Aerospace and Defense Balanced + 65% Aerospace and Defense (Aero/Defense) Demand * 35% Internet Communications Technology (ICT) + Crystal technology remain
Slide 5: Q1 2014 Operating Environment
fa Q1 2014 Operating Environment Completed acquisition of filter product line from Trilithic— converted open orders and began shipping during Q1 2014, immediately accretive Realizing the benefit of restructuring — $0.3 million reduction in engineering, selling and admin. expenses vs. Q1 2013 Positiv
Slide 6: Strategic Transformation
fa Strategic Transformation Over the last three years, we’ve been investing to reposition the Company for long-term value creation by: — Committing to organic R&D projects to revitalize our IP software-defined radio (tunable filter); avionics, low phase noise radar (high reliability, high performanc
Slide 7: Q1 2014 Financial Results
fa Q1 2014 Financial Results $6.1M Revenue sequentially up 6.8% vs. Q4 2013 down 17.6% vs. Q1 2013 26.0% Gross Margin sequentially up (3.9% points) vs. Q4 2013 on increased revenue down 6.5% points vs. Q1 2013 ($0.31) NetLoss Per Share sequentially less vs. ($0.50) at Q4 2013 $9.1M Backlog at end of
Slide 8: Financial Snapshot
Financial Snapshot 100.0% Quarterly Income Statement Trends 20.0% 2.2011 932011 Q42011. QI2012 422012 32012 Q42012 Q12013 Q22013 432013 Q42013 QI2014 mmmRevenue —e=Gross Margin —eAdjusted EBITDA Capital Position as of: 3/31/2014 12/31/2013 Total Assets $ 208M § 21.3M | * Cashandcash equivalents of $
Slide 9: Positioned for Growth
Positioned for Growth Capital position strong R&D investments in target markets organic investments (client service, new software-defined radio, low noise radar, IP, capacity, capabilities), flexibility to harsh environment timing invest in joint venture/M&A opps Key components in major clients’ sys
Slide 10: Working Toward Growth
Working Toward Growth — Price compression in ICT and reduced demand impacting financial results — Volume and one-time variable costs (Trilithic) challenged gross margins in Q1 2014 + Strong new product revenue stream across core business, impact from Trilithic + Improved cost structure post-restruct
Slide 11: Strategy for Growth
fa Strategy for Growth Our strategy is clear: Revitalize our intellectual property and product roadmap through organic development and acquisitions/joint ventures Leverage our core strength as an engineering leader to expand client access, add new capabilities, diversify product offerings Focus inve
Slide 12: Investment Considerations
Investment Considerations Strong capital position Experienced management team JV/M&A opportunities Trading at 0.8x book value ~50 years experience MtronPT) Blue chip clients Diverse markets World-class team Quality certified, low cost worldwide manufacturing Industry leading technology, reliability,
Slide 13: Visit us / Contact us
13 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: Iclifton@lglgroup.com) Voice: (407) 298-2000 Contacts
Slide 14: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation zon _gs2011_ iz _oiz0m azz _asmiz__qaoiz_ i208 _az203__asas_ _as2013__ azo = Sa = Sy fe Ss Se F Sa rr “208 28 Tos z 7.8% asmz gaz aio azzms sms aazms tz g £ [Adjusted working capital adjusted pre-tacloss & ‘The Company uses non-GAAP additional measures of operating re