Rf Industries, Ltd. · NASDAQ:RFIL
Rf Industries — FY2019 Earnings Presentation
21 slides from Rf Industries's earnings presentation, Dec 9, 2019
Slide 1: Leading Designer and Manufacturer of Interconnect Products
© RF Industries Ltd. | 1 Leading Designer and Manufacturer of Interconnect Products NASDAQ: RFIL
Slide 2: Forward-looking statements
© 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 forward
Slide 3: Executive Team
© 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 Technologies,
Slide 4: We've Seen A Significant Improvement In Our Results
© RF Industries Ltd. | 4 We’ve Seen A Significant Improvement In Our Results! $21.6 $23.0 $50.2 $55.3 2016 2017 2018 2019 Revenue (in millions) ($4.1) $0.4 $5.8 $3.4 2016 2017 2018 2019 Net Income (in millions) ** ** ** Based on preliminary unaudited financial results
Slide 5: RFIL company overview and statistics
© RF Industries Ltd. | 5 : RFIL Headquarters San Diego, CA 5 production locations (3 Northeast, 2 Southwest) Corning Gold, ISO 9001: 2008 Certified Founded 1979 IPO 1984 Employees 300 Statistics 12/2/19 Stock Price $6.00 52 Week Low - High $5.14 / $8.89 Avg. Vol. (3 months) 25K Shares Outstanding 9.
Slide 6: Product lines: connectors, adapters, cable assemblies, harnesses
© 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
Slide 7: Cell Tower Site Materials
© RF Industries Ltd. | 7 Cell Tower Site Materials Cable assemblies and components for small cell applications to support densification of 4G and 5G Networks. Small Cells Distributed Antenna System (DAS) Design, Engineer and Build Hybrid Fiber & Power Cables for 4G and 5G Network Deployment (You can
Slide 8: Oilfield, Aerospace and Transportation applications
© 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
Slide 9: Market sizes: cable assembly, connector, 5G, DAS
© RF Industries Ltd. | 9 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 , February 2018, 2 Source: Bishop & Associates, May 2017, 3 Source: Deloitte, July 2017, 4 So
Slide 10: Distribution 60% / Direct-OEM 40%
© 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 – 40% •
Slide 11: Distribution Partners and OEM Customers
© RF Industries Ltd. | 11 Distribution Partners OEM Customers
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;
Slide 13: Annual Financial Performance
© RF Industries Ltd. | 13 Annual Financial Performance (ended Oct. 31) $21.6 $23.0 $50.2 $55.3 2016 2017 2018 2019 Revenue (in millions) ** ($4.1) $0.4 $5.8 $3.4 2016 2017 2018 2019 Net Income (in millions) ** - 4% +6% +118% +10% Year - over - Year Growth Rate - 19.0% 1.7% 11.6% 6.1% Net Margin ($0.
Slide 14: Quarterly Revenue Trend
© RF Industries Ltd. | 14 Quarterly Revenue Trend $4.8 $5.3 $5.9 $7.0 $8.0 $20.5 $11.8 $9.9 $10.6 $13.6 $15.5 $15.5 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Revenue (in millions) ** - 17.2% +10.4% +11.3% +18.6% +14.3% +156.3% - 42.4% - 16.1% +7.
Slide 15: Balance Sheet Supports Growth
© RF Industries Ltd. | 15 $5.2 $16.3 $13.3 2017 2018 Q3 2019 Cash Balances (in millions) Balance Sheet Supports Growth $ in millions Oct. 31, 2017 Oct.31, 2018 Jul. 31, 2019 Cash $5.2 $16.3 $13.3 Total Assets $25.1 $32.5 $ 36.1 Stockholders’ Equity $21.4 $27.8 $ 30.6 Total Debt $0 $0 $0
Slide 16: Organic and inorganic growth strategy
© RF Industries Ltd. | 16 ▪ 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 where othe
Slide 17: C Enterprises acquisition
© RF Industries Ltd. | 17 C Enterprises – Acquisition announced March 11, 2019 Based in Vista, California ▪ West coast fiber optic manufacturing capabilities ▪ Corning Gold certificate member 2018 unaudited revenues of $8.7M ▪ Expected to be accretive to earnings in fiscal 2020 Brings strong f
Slide 18: Schroff Tech acquisition
© RF Industries Ltd. | 18 Schroff Tech – Acquisition announced November 4, 2019 Based in Rhode Island ▪ Manufacturer of products serving the high growth wireless, telecom and cable markets ▪ Two primary products: ▪ Energy efficient cooling system for wireless base stations ▪ Family of custom desig
Slide 19: Building a platform for long term growth
© RF Industries Ltd. | 19 Building a platform for long term growth Deliver more consistent and predictable results 3 - year plan to grow to $100 million in sales Organic growth – low to mid - teens annual revenue growth – leveraging distribution and OEM relationships Inorganic growth – rem
Slide 20: Our products are everywhere and make lots of things work
© RF Industries Ltd. | 20 Our products are everywhere and make lots of things work Recent results have delivered revenue growth plus a long - standing dividend Our new sales model is driving growth We’re faster and more flexible while delivering high quality customized products and solutions
Slide 21: RF Industries contact and investor relations
© RF Industries Ltd. | 21 RF Industries, Ltd. Mark Turfler SVP/CFO (858) 549 - 6340 rfi@rfindustries.com MKR Investor Relations Todd Kehrli Analyst/Investor Contact (323) 468 - 2300 rfil@mkr - group.com