Slide 1: Q2 2016 Earnings Presentation
design develop deliver advanced technology Q2 - 2016 Earnings Presentation July 21, 2016
Slide 2: Forward-Looking Statements
design develop deliver advanced technology 2 Forward - Looking Statements This document contains forward - looking statements within the scope of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “expect,” “estimate,” “anticipate,” “predict” and similar expressions, and t
Slide 3: President and CEO Update
design develop deliver advanced technology 3 President and CEO Update
Slide 4: Second Quarter 2016 Summary
design develop deliver advanced technology 4 Second Quarter 2016 Summary ▪ Revenue of $579 million and non - GAAP operating margin of 3.7%, each within expectations − Quarter - over - quarter growth in higher - value markets − Strong performance in Medical and Test & Instrumentation markets ▪ Operat
Slide 5: New Business Wins by Segment
design develop deliver advanced technology 5 New Business Wins by Segment ▪ 33 manufacturing and 12 engineering project awards ▪ Estimated annual revenue run rate between $105 - 130 million ▪ Continued new business wins in targeted markets Estimated Annual Revenue from New Business Wins Second Quart
Slide 6: Third Quarter 2016 Guidance
design develop deliver advanced technology 6 Guidance Net Sales (in millions) $570 – $600 Operating Margin – non - GAAP* 4.1% – 4.4% Interest Expense (in millions) $2.3 million Effective Tax Rate 23% Diluted EPS – GAAP $0.28 – $0.33 Diluted EPS – non - GAAP* $0.33 – $0.38 * The above guidance exclud
Slide 7: Q2 2016 Financial Highlights
design develop deliver advanced technology 7 Q2 2016 Financial Highlights
Slide 8: Second Quarter 2016 Financial Summary
design develop deliver advanced technology 8 (In millions, except EPS) Jun 30 , 2016 Mar 31 , 2016 Jun 30 , 2015 Net Sales $579.3 $549.2 $664.0 Net Income – GAAP $12.7 $11.1 $21.2 Net Income – non - GAAP $15.2 $13.2 $22.0 Diluted EPS – GAAP $0.26 $0.22 $0.40 Diluted EPS – non - GAAP $0.31 $0.26 $0.4
Slide 9: Key Business Trends
design develop deliver advanced technology 9 27.8 27.2 28.2 19.1 21.3 4.2% 4.3% 4.5% 3.5% 3.7% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 0.0 10.0 20.0 30.0 40.0 50.0 60.0 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 664 630 626 549 579 8.4% 8.6% 9.1% 9.2% 9.1% 1.0% 3.0% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% 0 200 400 600
Slide 10: Benchmark Results and Outlook by Market Segment
design develop deliver advanced technology 10 Higher - Value Markets Mar 31 , 2016 Jun 30 , 2016 Q3 - 16 Outlook (%) Industrials 39% $213 37% $214 Up Low to Mid - Singles Medical 15% $83 16% $92 Down Mid - Singles Test & Instrumentation 10% $53 10% $60 Flat Total Revenue $349 $366 Traditional Market
Slide 11: Balance Sheet and Cash Flows
design develop deliver advanced technology 11 Balance Sheet and Cash Flows (In millions) Jun 30 , 2016 Mar 31 , 2016 Jun 30, 2015 Cash $573.2* $519.2 $409.3 Debt $229.4 $232.3 $9.2 Cash Flows from (used in) Operating Activities $81.1 $76.5 $52.0 Capital Expenditures $8.4 $7.8 $8.2 Depreciation & Amo
Slide 12: Working Capital Update
design develop deliver advanced technology 12 Working Capital Update Ongoing initiatives support improvements from a high number of outsourcing projects in 2015 87 79 78 81 99 91 90 94 99 83 0 20 40 60 80 100 120 140 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Accounts Receivable Day
Slide 13: Share Repurchases
design develop deliver advanced technology 13 Share Repurchases Continue to use U.S. cash for share buybacks $ 520 million returned to shareholders since 2007 $105 m illion remaining on authorized purchase plans Inception to 2015 2011 - 2016 Last 3 Years $US Stock Repurchases (M ) $520 $286 $161 Buy
Slide 14: Strategic Priorities
design develop deliver advanced technology 14 Strategic Priorities Portfolio Transition ▪ Focus on higher - value markets ▪ More complex products in traditional markets ▪ Better returns on invested capital Margin Expansion ▪ Near - term SG&A investments for sales, marketing, & engineering ▪ Realign
Slide 15: Appendix
design develop deliver advanced technology 15 Appendix
Slide 16: Reconciliation of GAAP to non-GAAP Financial Results
design develop deliver advanced technology 16 APPENDIX 1 - Reconciliation of GAAP to non - GAAP Financial Results (Amounts in Thousands, Except Per Share Data) – (UNAUDITED) Jun 30, Mar 31, Jun 30, 2016 2016 2015 2016 2015 17,740$ 16,268$ 26,208$ 34,008$ 44,916$ 3,602 2,789 1,588 6,391 6,457 21,342$
Slide 17: Recast Reconciliation of GAAP to non-GAAP Financial Results
design develop deliver advanced technology 17 APPENDIX 2 – Recast Reconciliation of GAAP to non - GAAP Financial Results (Amounts in Thousands, Except Per Share Data) – (UNAUDITED) Jun 30, Mar 31, Jun 30, 2016 2016 2015 17,740$ 16,268$ 26,208$ 3,602 2,789 1,588 2,972 2,803 1,111 24,314$ 21,860$ 28,9