Lgl Group, Inc. (the) · AMEX:LGL
Lgl Group, Inc. (the) — The LGL Group — Q3 2012 Earnings Presentation
12 slides from Lgl Group, Inc. (the)'s earnings presentation, Nov 13, 2012
Slide 1: The LGL Group, Inc. Q3 2012 Earnings Report
The LGL Group, Inc. (AMEX: LGL) Q3 2012 Earnings Report November 13, 2012 – 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 TTM annual revenue Sept 30, 2012 Revenue mix 50% outside the U.S. $5.31 Stock price 11/9/2012 $9.89 52-week high $14.5 million market capitalization $11.0 million cash and cash equiv
Slide 4: Investment Highlights
Investment Highlights LGL’s MtronPTI brand serves large B2B OEM clients that provide solutions to: Internet Communications Technology (ICT), Mil/Aero, and Instrumentation Balanced • ~50% ICT infrastructure Demand • ~50% Mil/Aero and Instrumentation • Crystal technology remains core to precision timi
Slide 5: Q3 2012 Results
Q3 2012 Results $7.3M revenues (24%) down compared to Q3 2011, sequentially down 3.6% compared to Q2 2012 24.5% gross margin (3.5) percentage point change compared to Q3 2011 sequentially down 2.0 percentage points compared to Q2 2012 ($0.12) loss per share; $0.04 lower than Q2 2012 $8.7M backlog at
Slide 6: Business Cycle Factors
Business Cycle Factors Overall weak macroeconomic climate major clients and prospects sit on the sidelines delay microelectronics expense Newer technologies (ex. 4G) taking longer to coalesce further delaying orders Key competitors impacted as well believe we’ve held share; gained in some Strong ope
Slide 7: Financial Snapshot
Financial Snapshot $14.0 Quarterly Income Statement Trends 50.0% 36.3% 37.6% $12.0 31.7% 40.0% 34.1% 31.6% 32.6% 31.8% $10.0 $12.5 $12.4 28.0% $10.7 27.9% 30.0% 26.5% $11.0 $9.7 24.5% $9.2 $9.0 22.3% $8.0 20.6% $9.6 18.9% $7.6 20.0% $7.4 $7.2 $7.3 $6.0 13.0% 11.2% 7.9% 6.3% 6.4% 10.0% $4.0 3.5% -1.2
Slide 8: Well-positioned for growth
Well-positioned for growth Capital position strong Retained all major clients moving forward to execute on both despite decline in their overall orders organic and JV/M&A strategies Key components in major clients’ systems Added new major clients very “sticky” with high switching costs great promise
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) Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Revenue $ 9,201 $ 10,701 $ 12,535 $ 12,397 $ 11,023 $ 9,020 $ 9,646 $ 9,629 $
Slide 10: Working through cycle toward growth
Working through cycle toward growth ‒ Major clients reporting market softness ‒ Repeat orders from existing contracts sluggish ‒ Modest decline in backlog + Solid working capital position, positive cash from operations: first nine months of 2012 + Further improvements to cost structure + Strong quot
Slide 11: 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 11
Slide 12: 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, Chief Accounting Officer (e-mail: lclifton@lglgroup.com) Voice: (407) 298-2000 12