Lgl Group, Inc. (the) · AMEX:LGL
Lgl Group, Inc. (the) — The LGL Group — Shareholder Meeting (August 2011)
20 slides from Lgl Group, Inc. (the)'s shareholder meeting presentation, Aug 4, 2011
Slide 1: The LGL Group, Inc.: Laying the foundation for profitable growth
The LGL Group, Inc. Laying the foundation for profitable growth 2011 Annual Meeting of Stockholders August 4, 2011
Slide 2: Safe Harbor Statement
Investor Presentation 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 circumstan
Slide 3: Overview of The LGL Group
Overview of The LGL Group Design, manufacture and market customized high-precision components used for frequency control in electronic systems (infrastructure) Address commercial and military markets for communication, instrumentation, GPS navigation, avionics and space applications Long histo
Slide 4: 2010 Highlights
2010 Highlights Successfully executed strategies to control structural spending Successfully launched new technology for the precision timing market, won and shipped notable contracts Successfully launched new technology for the precision filter market, won and shipped notable contracts Stro
Slide 5: Key Investment Considerations
Key Investment Considerations Design wins drive recurring revenue Long product life cycles, long-term customers 2010 returned to growth Approximately 50% YoY revenue growth Increased market share driven by major new product introductions New product introductions contributed to approxima
Slide 6: Critical Components for Customers' Systems
Critical Components for Customers’ Systems Products Applications Communications Infrastructure Optical switches and routers Point-to-point radio systems Wireless base stations GPS navigation MISA Applications IED-jamming RF system Man-pack radios Next-generation unmanned aerial veh
Slide 7: Timing Control Market: Key Attributes
Timing Control Market: Key Attributes Bandwidth Global market for timing control estimated at $4 billion 26% North America, 21% Europe, 50% Asia-Pacific Global market dominated by large Japanese suppliers and consumer device applications Total available market for precision timing componen
Slide 8: Precision Timing Device Market: Segmentation
Precision Timing Device Market: Segmentation Industrial & Instrumentation: 7% Medical: 5% Military & Aerospace: 31% Distribution & Other: Telcom: 47% 10% Available Global Market: $1.2 Billion * Chart based on Company’s internal estimates -8-
Slide 9: Precision Filter Markets: Key Attributes
Precision Filter Markets: Key Attributes Bandwidth Precision filter market estimated at $900 Million, high growth potential Area of focus for new product development and strategic initiatives Opportunities for filter products benefit from a more favorable competitive landscape as compared to
Slide 10: Long-Term Blue-Chip Customer Base
Long-Term Blue-Chip Customer Base The Company has a long history of providing custom-engineered, high- value products to a roster of blue-chip global OEM customers Design wins drive recurring revenue Product development investments drive new design-win opportunities Product life cycles exten
Slide 11: Product Strategy
Product Strategy Subsystems Dollar Content Integrated Products Marketing partnerships and pursuing joint Components ventures Level of Integration Guiding principles for new products Technically-advanced Higher revenue per unit Higher gross margins - 11 -
Slide 12: Global Operating and Sales Presence
Global Operating and Sales Presence Global Operations Headquarters in Orlando, FL 71,000 square feet of manufacturing facility and engineering center in Orlando, Florida 28,000 square feet of manufacturing facility and engineering center in Yankton, South Dakota 13,000 square feet of manuf
Slide 13: Management Team
Management Team Years of Industry Experience Professional Background Greg Anderson 20+ Mr. Anderson has experience in high-tech manufacturing businesses, President, CEO which includes both low volume/high mix OEM custom products coupled with experience gained in high volume/low cost consumer product
Slide 14: Financial Overview
Financial Overview
Slide 15: Financial Overview: Revenue Trend
Financial Overview Revenue Trend Historical Revenue ($MM) $50.0 $46.7 $45.0 $41.5 $42.1 $39.5 $40.2 $40.0 $35.1 $35.0 $31.3 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 TTM (as of Q2 2011) Note: Revenues for 2005 through a portion of 2007 are adjusted to ex
Slide 16: Quarterly Income Statement Trends
Financial Overview Quarterly Income Statement Trends Historical Revenue and Margins ($MM) Q2 2011 extends the trend to seven consecutive quarters of earnings Maintained gross margins of 31.8 % for Q2 2011 through management of variable costs and structural cost discipline in spite of reduced rev
Slide 17: FY 2010 and H1 2011 Results
Financial Overview FY 2010 and H1 2011 Results 12 mths ended 6 mths ended ($000's, except EPS and shares outstanding) 12/31/2010 6/30/2011 Revenue $ 46,656 $ 18,666 Cost of sales 30,306 12,661 Gross margin 16,350 6,005 GM % 35.0% 32.2% Operating expenses 9,591 5,058 Operating income 6,759 947 Other
Slide 18: Capital Structure
Capital Structure Capital Position as of June 30, 2011 Total assets: $ 31.4 million Net working capital: $ 19.3 million Cash and cash equivalents: $ 11.0 million Total debt (including current portion): $ 0.5 million Shareholders’ equity: $ 25.9 million Available lines of credit: $ 6.0 million • Work
Slide 19: GAAP to Non-GAAP Reconciliations
Financial Summary GAAP to Non-GAAP Reconciliations Computation of Adjusted Working Capital: As of As of ($000's) 6/30/2011 12/31/2010 Accounts receviable, net $ 5,190 $ 5,782 Inventory, net 6,869 5,947 Accounts payable (2,880) (2,033) Adjusted working capital $ 9,179 $ 9,696 The Company uses non-GAA
Slide 20: Laying the foundation for profitable growth
Laying the foundation for profitable growth Invest organically into core business Engineering investments to leverage opportunities with existing customers and maximize our positions Incremental capacity investments Additional investments into products that are higher in the value chain, suc