18 slides from Lgl Group, Inc. (the)'s earnings presentation, Aug 17, 2010
Slide 1: The LGL Group, Inc.
The LGL Group, Inc. (NYSE Amex: LGL)
Slide 2: Safe Harbor Statement
Q2 2010 Earnings Report August 17, 2010 10:00 a.m. EDT Safe Harbor Statement Information included in this presentation may contain forward-looking statements. Forward-looking statements are generally identifiable by use of words such as “expects,” “anticipates,” “estimates,” “believes,” or ‘intends’
Slide 3: Agenda
Q2 2010 Earnings Report far) August 17, 2010 10:00 a.m. EDT felRIofulP) Agenda Business Highlights Financial Highlights Key Investment Considerations Question and Answer
Slide 4: Q2 2010 Business Highlights
Q2 2010 Business Highlights
Slide 5: Q2 2010 Business Highlights
Q2 2010 Business Highlights + Third consecutive quarter of growth in both revenue and earnings * Q2 2010 revenue was approximately $12.5MM, which was an increase of 17% over Q1 2010 revenue of approximately $10.7MM, and a 73.2% increase over Q2 2009 revenue of approximately $7.2MM + Revenue growth c
Slide 6: Q2 2010 Business Highlights
Q2 2010 Business Highlights + Order activity was strong in both the Telecom and MISA market segments + Backlog increased modestly to approximately $14.4MM at the end of Q2 2010, as compared to $14.3MM at the end of Q1 2010 + New product contracts (MISA segment) won in H2 2009 contributed significant
Slide 7: H2 2010 Outlook
Q2 2010 Business Highlights H2 2010 Outlook Backlog remains strong, while composition has modestly shifted from MISA to Telecom Major customers are reporting positive earnings and revenue growth; there are some signs of softening in Telecom The semi-conductor industry, a leading indicator for the Te
Slide 8: Financial Outlook
Financial Outlook
Slide 9: Revenue Trend
Financial Outlook Revenue Trend $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 LGL Consolidated Revenue (SMM) $46 bat $40 $40 $40 | : | I FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 TIM (as of Q2 2010) Note: Revenues for 2005 through a portion of 2007 includes Lynch Systems, whose operating assets were sold
Slide 10: Quarterly Income Statement Trends
Financial Outlook Quarterly Income Statement Trends (Ss in 00's, except margin %) 14,000 50.0% 36.3% 12,000 34.4% 40.0% 31.6% ~ 25.7% 25.6% 10,000 + 26.9% = 30.0% r+ 670 8,000 Ja} + 20.0% 6,000 10.0% 4,000 +7 0.0% ry 2,000 Bl Ff -10.0% q & = -20.0% Q1 2008 22008 32008 Q42008 Q12009 @22009 @32009 Q42
Slide 11: Order Backlog
Financial Outlook Order Backlog (000's at quarter end) 16,000 7 14,000 12,000 10,000 © 2 2 8,000 = 8 < a s o =a z 6,000 2 2 & & e o 3 2 S 8 3 g 4,000 S Z| : 8 a B 2,000 0 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 + Q2 2010 represents the fourth sequential quarter of record backlog leve
Slide 12: Capital Position as of June 30, 2010
Financial Outlook Capital Position as of June 30, 2010 Total Assets: $ 21.3 million Net Working Capital: $ 8.8 million Cash and ST Investments: $ 3.6 million Long Term Debt (including current portion): $ 3.1 million Shareholders’ Equity: $ 12.3 million Available Line of Credit: $ 2.9 million The Com
Slide 13: Key Investment Considerations
Key Investment Considerations
Slide 14: Strategic Direction
Key Investment Considerations Strategic Direction Right-size the Company for today’s macroeconomic conditions — Emphasize cash flow and cash preservation — Realign manufacturing resources to take advantage of each location’s primary competencies Focus on improving margins — Direct engineering work t
Slide 15: Strategic Direction
Key Investment Considerations Strategic Direction Maintain key OEM relationships — Increase focus on customer service and building supply chain flexibility for our customers — Maximize contract positions for 2010 and beyond Expand OEM position in China and India — Leverage supplier and partner relat
Slide 16: Compelling Investment Opportunity
Key Investment Considerations Compelling Investment Opportunity The Company’s attributes include: — Established reputation for high quality and innovation + Custom engineering capabilities and advanced technological designs + Platform for growth into existing customer base — Global manufacturing and
Slide 17: Summary
Key Investment Considerations Summary insparenc! Invest
Slide 18: Question and Answer
Question and Answer Visit us: www.lgigroup.com www.mtronpti.com Contact us: Greg Anderson, President and CEO (E-mail: ganderson@lglgroup.com) R. LaDuane Clifton, Chief Accounting Officer (E-mail: Iclifton@lglgroup.com) Voice: (407) 298-2000 -18-