Optical Cable Corporation · NASDAQ:OCC
Optical Cable — Shareholder Meeting (March 2018)
22 slides from Optical Cable's shareholder meeting presentation, Mar 28, 2018
Slide 1: Annual Meeting of Shareholders
40C Annual Meeting of Shareholders March 27, 2018 Neil Wilkin, CEO OCC Connections You Can Count On.™ OCCFBER.COM
Slide 2: Forward Looking Information
OO ~~ Forward Looking Information This presentation may contain “forward looking statements” that involve risks and uncertainties. These statements reflect management's current expectations about possible future events and performance. Such forward-looking information is subject to known and unknown
Slide 3: Agenda
40 (ie Agenda !. Key Performance Measures Fiscal Year 2017. \!. Challenges. Progress. Adjustments. \\|. First Quarter 2018. !\’. Looking Forward to Fiscal Year 2018. Vi Q&A. OCCFBER.COM
Slide 4: (©2017 OCC | WWW.OCCFIBER.COM
(©2017 OCC | WWW.OCCFIBER.COM 4
Slide 5: Key Performance Measures Fiscal Year 2017
OO ~~ Key Performance Measures Fiscal Year 2017 Net sales of $64.1 million, compared to $64.6 million last year. Enterprise market sales relatively stable. Weakness in military and wireless carrier markets, and declines in sales outside of U.S. Strong sales growth in certain industrial and specialty
Slide 6: Key Performance Measures Fiscal Year 2017
OO ~~ Key Performance Measures Fiscal Year 2017 Gross profit increased 5.4% to $20.8 million. Gross profit margin increased to 32.4%, compared to 30.5% last fiscal year. SG&A Expenses increased to $22.0 million from $20.8 million. Select new hires, organizational changes and incentives. Marketing an
Slide 7: Key Performance Measures Fiscal Year 2017
50C Key Performance Measures Fiscal Year 2017 J Strong balance sheet. LJ Long-term real estate loans of $6.7 million. _) Maturity extended to May 2024. CO Fixed interest rate of 3.95%. LJ Revolving Credit Facility. Variable interest rate of LIBOR + 2.5%. OCCFBER.COM
Slide 8: Manufacturing Day — October 2017
OO ~~ Manufacturing Day — October 2017 Photos intentionally removed
Slide 9: Challenges. Progress. Adjustments.
Challenges. Progress. Adjustments.
Slide 10: Challenges. Progress. Adjustments.
OO ~~ Challenges. Progress. Adjustments. OCC experienced particular weakness in certain specialty markets during the last couple of years—particularly military, severe duty and wireless carrier markets. Some challenges in enterprise markets as well. OCCFBER.COM
Slide 11: Challenges. Progress. Adjustments.
OO ~~ Challenges. Progress. Adjustments. Key new hires and organizational changes. New sales, business development and marketing initiatives targeting markets with growth potential. New operational initiatives designed to increase manufacturing efficiencies. Parallel efforts to control costs while i
Slide 12: Challenges. Progress. Adjustments.
OO ~~ Challenges. Progress. Adjustments. L) Positive results—strong sales growth in targeted specialty markets and with key distribution partners in fiscal 2017 — offsetting weakness in other specialty markets. OCCFBER.COM
Slide 13: First Quarter 2018.
First Quarter 2018.
Slide 14: First Quarter 2018
OO ~~ First Quarter 2018 Net Sales Increased 20.2% to $17.6 million, compared to Q1 2017. Gross Profit Increased 8.7% to $5.2 million. Gross Profit Margin 29.8% compared to 32.9%. Bottom Line Improvement. $14.8 million Order Backlog/Forward Load at end of Q1 2018. $19.0 million Order Backlog/Forward
Slide 15: Net Sales Fiscal Year 2017 and Q1 2018 by Quarter
OO ~~ Net Sales Fiscal Year 2017 and Q1 2018 by Quarter Up 20.2% Q1 2017 to Q1 2018 $17,000,000 $16,000,000 $15,000,000 $14,000,000 $13,000,000 $12,000,000 $11,000,000 $10,000,000 1 2017 2.2017 03 2017 04 2017 a1 2018
Slide 16: Looking Forward to 2018.
Slide 17: Looking Forward to Fiscal Year 2018
OO ~~ Looking Forward to Fiscal Year 2018 OCC Team Continues Execution of Strategy. Sales and Marketing Initiatives. Product Initiatives. Operational and Process Improvements. Strategy designed to drive top-line and bottom-line growth. OCCFBER.COM
Slide 18: Looking Forward to Fiscal Year 2018
OO ~~ Looking Forward to Fiscal Year 2018 Increasing activity and strength in specialty markets—including military and wireless carrier markets. Enterprise market still challenging. Expect large order backlog/forward load to result in significant positive impact on net sales in Q2 2018. OCCFBER.COM
Slide 19: Looking Forward to Fiscal Year 2018
OO ~~ Looking Forward to Fiscal Year 2018 LU Passive Optical LAN is one example of OCC’s product initiatives...... https:/Awww.youtube.com/watch?v=F6PsT8FXMPU
Slide 20: Questions and Answers.
Yr. © = yt Questions and Answers.
Slide 21: WHEN
WHEN NETWORK
Slide 22: OCC Thank You!
40 OCC Thank You! Connections You Can Count On.™