Rf Industries, Ltd. · NASDAQ:RFIL

Rf Industries — Investor Presentation (December 2018)

34 slides from Rf Industries's investor presentation, Dec 4, 2018

  1. Slide 1: Leading Designer and Manufacturer of Interconnect Products

    © 2018 RF Industries Ltd. | 1 Leading Designer and Manufacturer of Interconnect Products NASDAQ: RFIL

  2. Slide 2: Forward-looking statements

    © 2018 RF Industries Ltd. | 2 Forward - looking statements contained in this presentation involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially and adversely from those expressed or implied by such for

  3. Slide 3: Executive Team

    © 2018 RF Industries Ltd. | 3 Executive Team Mark Turfler Senior Vice President and CFO ▪ Joined: June 2013 Robert Dawson President and CEO ▪ Joined: July 2017 ▪ Added to Board: July 2018 Prior Industry Experience 2014 - 2016 President and CEO, Vision Technology Services 2007 – 2013 TESSCO Technolog

  4. Slide 4: Under new CEO, significant improvement to our results

    © 2018 RF Industries Ltd. | 4 Under new CEO, we’ve seen significant improvement to our results!* $30.9 $30.2 $30.9 $58.5 2015 2016 2017 2018 Revenue (in millions) ** $1.0 ($4.1) $0.4 $5.8 2015 2016 2017 2018 Net Income (in millions) * Includes Comnet results; ** Based on preliminary unaudited financ

  5. Slide 5: RFIL company statistics

    © 2018 RF Industries Ltd. | 5 : RFIL Headquarters San Diego, CA +2 production locations in Northeast • Corning Gold Program • ISO 9001: 2008 Certified Founded 1979 IPO 1984 Employees 203 Statistics 11/29/18 Stock Price $8.83 52 Week Low - High $2.25 / $12.75 Avg. Vol. (3 months) 169K Shares Outstand

  6. Slide 6: Product lines

    © 2018 RF Industries Ltd. | 6 RF Coaxial Connectors RF Coaxial Adapters Low PIM Products Passive Components Coaxial Cable Assemblies Fiber Optic Cable Assemblies FTTA Cable Assemblies Wiring Harnesses

  7. Slide 7: Cell tower site materials and DAS

    © 2018 RF Industries Ltd. | 7 ; Cell Tower Site Materials Design, Engineer and Build Hybrid Fiber & Power Cables for 4G and 5G Network Deployment (You can’t buy this stuff “off the shelf”!) ; Distributed Antenna System (DAS) Our components are used to provide enhanced wireless coverage in commercial

  8. Slide 8: Oilfield, aerospace and transportation applications

    © 2018 RF Industries Ltd. | 8 ▪ Advanced Oilfield Technology ▪ Aerospace Build control wiring for drilling equipment Build & test control stick wiring for flight control stick for military helicopters ▪ Transportation Transit doors and gates - designed for light and heavy rail applications

  9. Slide 9: OEM opportunities and market sizes

    © 2018 RF Industries Ltd. | 9 OEM opportunities in markets like defense, transportation, agriculture, and oil & gas N.A. Cable Assembly Market = $33.4B ₂ Global Connector Market = $80.4B by 2023 ₁ 5G Build - Out Spend = $130B in 2024 ₃ DAS Market = $8B growing to $18B in 2026 ⁴ 1 Source: Lucintel ,

  10. Slide 10: Distribution 60% and Direct/OEM 40%

    © 2018 RF Industries Ltd. | 10 Distribution – 60% Biggest opportunities are in distribution centric markets (force multiplier) • Access to thousands of customers • No A/R collection issues (99% of sales are in US and Canada) • No inventory obsolescence issues • Focus on what we do best Direct/OEM –

  11. Slide 11: Distribution Partners and OEM Customers

    © 2018 RF Industries Ltd. | 11 Distribution Partners OEM Customers

  12. Slide 12: Our Value Proposition and Differentiation

    Our Value Proposition and Differentiation Who’s Our Competition? Large Competitors Small Competitors Local/Regional ▪ Fast – Faster lead times than larger competitors ▪ Flexible – Customized product (labor intensive; can’t buy off the shelf) ▪ High Quality – High quality product (ISO 9001 certified;

  13. Slide 13: Annual Financial Performance

    © 2018 RF Industries Ltd. | 13 Annual Financial Performance* $30.9 $30.2 $30.9 $58.5 2015 2016 2017 2018 (with Comnet) (in millions) $1.0 ($4.1) $0.4 $5.8 2015 2016 2017 2018 (with Comnet) (in millions) $22.5 $21.6 $23.0 $50.0 2015 2016 2017 2018 (w/o Comnet) (in millions) $0.4 ($4.5) $0.2 $6.0 2015

  14. Slide 14: Balance Sheet Supports Growth

    © 2018 RF Industries Ltd. | 14 $6.3 $4.3 $5.2 $16.3 2015 2016 2017 2018 Cash Balances (in millions) Balance Sheet Supports Growth* $ in millions Oct. 31, 2017 Oct.31 , 2018 Cash $5.2 $16.3 Total Assets $25.1 $ 32.5 Stockholders’ Equity $21.4 $27.8 Total Debt $0 $0 *Excludes Comnet

  15. Slide 15: Organic and inorganic growth

    © 2018 RF Industries Ltd. | 15 ▪ Organic ▪ Run rate business ▪ Core fast - turn production ▪ 10 - 15 % annual growth ▪ Project business transitioning to long - term relationships ▪ Get our product spec’d in customer projects and included on customer BOMs ▪ Deliver a quality, customized solution wher

  16. Slide 16: Investment highlights

    © 2018 RF Industries Ltd. | 16 ; Our products are everywhere and make lots of things work ; Recent results have rewarded shareholders with higher stock price plus a long - standing dividend ▪ Revenue growth, margin growth, profit growth ; Our new sales model is driving growth ; We’re faster and more

  17. Slide 17: Building a platform for long term growth

    © 2018 RF Industries Ltd. | 17 ; Building a platform for long term growth ; Deliver more consistent and predictable results ; Leverage distribution and OEM relationships for organic growth ; Strategic M&A

  18. Slide 18: © 2018 RF Industries Ltd. | 18 NASDAQ: RFIL

    © 2018 RF Industries Ltd. | 18 NASDAQ: RFIL

  19. Slide 19: Investor contacts

    © 2018 RF Industries Ltd. | 19 RF Industries, Ltd. Mark Turfler SVP/CFO (858) 549 - 6340 rfi@rfindustries.com MKR Group Inc. Todd Kehrli Analyst/Investor Contact (323) 468 - 2300 rfil@mkr - group.com

  20. Slide 20: © 2018 RF Industries Ltd. | 20

    © 2018 RF Industries Ltd. | 20

  21. Slide 21: Financial Statement Trends through July 31, 2018 with Comnet

    Financial Statement Trends through July 31, 2018 — with Comnet’s results

  22. Slide 22: Income Statement

    Income Statement © 2018 RF Industries Ltd. | 22 2018 2017 2016 2015 Q3 YTD Full Year Full Year Full Year (in millions) Unaudited Audited Audited Audited Net sales 46.6$ 30.9$ 30.2$ 30.9$ Cost of sales 30.9 22.2 21.8 20.4 Gross profit 15.7 8.7 8.4 10.5 Operating expenses: Engineering 1.3 0.8 0.7 0.8

  23. Slide 23: Balance Sheet

    Balance Sheet © 2018 RF Industries Ltd. | 23 July 31, 2018 2017 2016 2015 (in millions) Unaudited Audited Audited Audited ASSETS: Current assets: Cash and cash equivalents 11.6$ 6.0$ 5.3$ 7.6$ Trade accounts receivable, net 5.9 3.9 4.1 4.0 Inventories 6.9 6.1 6.0 6.9 Other current assets 0.9 0.8 1.4

  24. Slide 24: Statement of Cash Flows

    Statement of Cash Flows © 2018 RF Industries Ltd. | 24 July 31, 2018 2017 2016 2015 (in millions) Unaudited Audited Audited Audited Operating Activities: Net income 5.4$ 0.4$ (4.1)$ 1.0$ Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortiz

  25. Slide 25: Income Statement (Quarterly)

    Income Statement (Quarterly) © 2018 RF Industries Ltd. | 25 Q1 Q2 Q3 YTD Q1 Q2 Q3 Q4 YTD (in millions) Audited Net sales 10.3$ 22.4$ 13.9$ 46.6$ 6.6$ 7.6$ 7.8$ 8.9$ 30.9$ Cost of sales 7.3 14.3 9.3 30.9 4.7 5.7 5.6 6.2 22.2 Gross profit 3.0 8.1 4.6 15.7 1.9 1.9 2.2 2.7 8.7 Operating expenses: Engine

  26. Slide 26: Balance Sheet (Quarterly)

    Balance Sheet (Quarterly) © 2018 RF Industries Ltd. | 26 Jan. 31 Apr. 30 Jul. 31 Jan. 31 Apr. 30 Jul. 31 Oct. 31 (in millions) Audited ASSETS: Current assets: Cash and cash equivalents 5.9$ 8.5$ 11.6$ 4.4$ 4.3$ 5.5$ 6.0$ Trade accounts receivable, net 5.4 11.7 5.9 3.7 4.5 3.8 3.9 Inventories 6.8 7.1

  27. Slide 27: Statement of Cash Flows (Quarterly)

    Statement of Cash Flows (Quarterly) © 2018 RF Industries Ltd. | 27 Q1 Q2 Q3 YTD Q1 Q2 Q3 Q4 YTD (in millions) Audited Operating Activities: Net income 0.5$ 3.2$ 1.7$ 5.4$ (0.2)$ 0.1$ 0.2$ 0.3$ 0.4$ Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation

  28. Slide 28: Financial Statement Trends through July 31, 2018 without Comnet

    Financial Statement Trends through July 31, 2018 — without Comnet’s results

  29. Slide 29: Income Statement

    Income Statement © 2018 RF Industries Ltd. | 29 2018 2017 2016 2015 Q3 YTD Full Year Full Year Full Year (in millions) Unaudited Audited Audited Audited Net sales 40.3$ 23.0$ 21.6$ 22.5$ Cost of sales 26.2 16.0 15.3 13.8 Gross profit 14.1 7.0 6.3 8.7 Operating expenses: Engineering 1.2 0.8 0.8 0.9 S

  30. Slide 30: Balance Sheet

    Balance Sheet © 2018 RF Industries Ltd. | 30 July 31, 2018 2017 2016 2015 (in millions) Unaudited Audited Audited Audited ASSETS: Current assets: Cash and cash equivalents 10.5$ 5.2$ 4.3$ 6.3$ Trade accounts receivable, net 5.1 2.9 2.5 2.9 Inventories 6.3 5.6 5.4 6.5 Other current assets 0.8 0.5 1.5

  31. Slide 31: Statement of Cash Flows

    Statement of Cash Flows © 2018 RF Industries Ltd. | 31 July 31, 2018 2017 2016 2015 (in millions) Unaudited Audited Audited Audited Operating Activities: Consolidated net income (loss) 5.4$ 0.4$ (4.1)$ 1.0$ Net income from discontinued operations - Comnet 0.3$ 0.2$ 0.4$ 0.6$ Net income (loss) from c

  32. Slide 32: Income Statement (Quarterly)

    Income Statement (Quarterly) © 2018 RF Industries Ltd. | 32 Q1 Q2 Q3 YTD Q1 Q2 Q3 Q4 YTD (in millions) Audited Net sales 8.0$ 20.5$ 11.8$ 40.3$ 4.8$ 5.3$ 5.9$ 7.0$ 23.0$ Cost of sales 5.5 12.9 7.8 26.2 3.3 3.8 4.1 4.8 16.0 Gross profit 2.5 7.6 4.0 14.1 1.5 1.5 1.8 2.2 7.0 Operating expenses: Enginee

  33. Slide 33: Balance Sheet (Quarterly)

    Balance Sheet (Quarterly) © 2018 RF Industries Ltd. | 33 Jan. 31 Apr. 30 Jul. 31 Jan. 31 Apr. 30 Jul. 31 Oct. 31 (in millions) Audited ASSETS: Current assets: Cash and cash equivalents 4.9$ 7.1$ 10.5$ 3.3$ 3.4$ 4.4$ 5.2$ Trade accounts receivable, net 4.0 10.9 5.1 2.4 2.8 2.6 2.9 Inventories 6.3 6.6

  34. Slide 34: Statement of Cash Flows (Quarterly)

    Statement of Cash Flows (Quarterly) © 2018 RF Industries Ltd. | 34 Q1 Q2 Q3 YTD Q1 Q2 Q3 Q4 YTD (in millions) Audited Operating Activities: Consolidated net income (loss) 0.5$ 3.2$ 1.7$ 5.4$ (0.2)$ 0.1$ 0.2$ 0.3$ 0.4$ Net income from discontinued operations - Comnet 0.1$ 0.1$ 0.1$ 0.3$ -$ 0.1$ -$ 0.

R F Industries — Investor Presentation (December 2018) on 6ix