M-tron Industries, Inc. · AMEX:MPTI
M-tron Industries — Sidoti September Virtual Investor Conference 2024
19 slides from M-tron Industries's conference presentation, Sep 18, 2024
Slide 1: Investor Presentation
INVESTOR PRESENTATION September 2024 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Information included or incorporated by reference in this presentation may contain forward-looking statements. This information may involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially d
Slide 3: MPTI Overview
MPTI Overview MPTI is a NYSEAM publicly traded corporation Formed in 1965 Aerospace and Defense Focused Since 2004 Acquisition Listed NYSEAM in October 2022 via Spin Off at ~$13 ( $10.85-$45.60 Range) 2.81mm Shares Outstanding, No Debt, and Free Cash Flow Generation Broad employee ownershi
Slide 4: MPTI At A Glance
MPTI At A Glance Vertically Integrated RF Solutions Blue-Chip Customer Base Strong Market Performance Highly-engineered, high reliability Diverse global customer base including Delivering strong returns to precision components and solutions industry leaders in the Aerospace & shareholders of 81% sin
Slide 5: MPTI At A Glance
MPTI At A Glance Robust Engineered RF Components and Solutions since 1965 Filters (LC, Cavity, Planar, Crystal) Oscillators (XO, TCXO, VCXO, OCXO) Crystal Resonators and Solutions $44.7M 44% $45.3M 7-10% 19-21% 60-80% Sales1 Gross Margin1 Backlog1 Revenue CAGR2 EBITDA Margins2 FCF Conversion2 14.3%
Slide 6: With Broad Applications
With Broad Applications Commercial Aerospace Space & SATCOM Electronic Warfare Precision-Guided Munitions Radar Source: Company data 6
Slide 7: Investment Highlights
Investment Highlights 1 Strong revenue growth and cash generation 2 Attractive end markets with long-term contracts and loyal customers 3 Unique capability to manufacture in US for mission critical supply chains 4 Compelling financials with organic & inorganic growth strategy 5 Have production capac
Slide 8: Growth Drivers
Growth Drivers Expansion Opportunities Across Multiple High Growth Markets 1 Armament and weapon system replenishment driven by global conflicts Modernization programs and new system development driving longer-term 2 defense component/subsystem growth 3 Strong commercial airframe backlog for Airbus
Slide 9: Large & Growing TAM
Large & Growing TAM Expansion Opportunities Across Multiple Markets Customer End Market TAM’s Electronic Components Market Size $ in Billions Defense Electronics Commercial Aviation SATCOM Market Market Market 2022 2024 2022 ~$150B ~$199B ~$77B 2030 2030 2030 $323 ~$234B ~$294B ~$162B $190 ~6% CAGR
Slide 10: Unique Product Portfolio...
Unique Product Portfolio... Filters Oscillators FY’23 Revenue Split by Product Applications within Avionics, Space, Communications, Applications within Avionics, Communications, Electronic Filters Oscillators Resonators & Solutions Electronic Warfare, Instrumentation, and Radar Warfare, Instrume
Slide 11: Blue-Chip Customer Base
Blue-Chip Customer Base Tenured Industry Relationships With Premier Customers Across Various End Markets Aerospace & Defense Avionics Space Industrials More than 70 customers with a 10+ year history Source: Company data 11
Slide 12: Growth Strategy
Growth Strategy Since its Spinoff in Late 2022, MPTI has Significantly Outperformed the Broader Market & its Peers Leverage Customer Relationships Market Driven R&D M&A Build MtronPTI into a leading supplier of Continue to enhance our ability to provide Invest accumulating cash in modules, sub
Slide 13: Global Footprint
Global Footprint Strategically Located to Supply Critical National Security Needs With Ample Capacity For Future Growth Orlando, FL (HQ) Over 100,000 sq. ft. of Design and Manufacturing Space 71,000 sq. ft. AS9100D Design and Manufacturing Facility ITAR Registered Yankton, SD Sales Office Ya
Slide 14: Metrics
Metrics Significant improvement in key metrics since spin-off 2022 Revenue Growth Gross Margin Net Income Increased from $8.4M/qtr to Increased from 32% to 46% Increased from $503K/qtr to $11.8M/qtr $1,744/qtr 40% 43% 347% EBITDA Margin Cash Generation EPS Increased from 10.4% to 21.4% Increased cas
Slide 15: New Product Development
New Product Development Increased R&D and Capex Spend Drive Organic Topline Growth in the Near-Term Constant Innovation with New Product Revenue ($M) Total Revenue ($M) ASP $120 Strategic Targeting of Larger Opportunities $103.54 $100 ~30% of FY’23 Revenue $92.13 comes from products introduced sin
Slide 16: Financial Summary
Financial Summary Compelling Financials With Strong Topline Growth And Healthy Margins Revenue & Growth ($M) Gross Profit & Margin ($M) 22% 44% 29% 41% (2%) 19% (11%) 36% 18% 34% 45% 32% 35% $44.7 $19.6 38% $41.2 $16.8 $30.0 $31.8 $26.7 $23.0 $10.3 $11.3 $10.3 $19.5 $9.3 $7.4 FY'20A FY'21A FY'22A FY
Slide 17: Disciplined Approach to M&A
DISCIPLINED APPROACH TO M&A MPTI continues to look for tuck-in and transformative acquisitions to accelerate our organic growth strategies Goals of M&A Program Help company achieve Opportunistically enter Continue to expand scale quicker through new markets technology expertise accretive transaction
Slide 18: Attractive Long Term Target Model
Attractive Long Term Target Model Increased R&D and Capex Spend Drive Organic Topline Growth in the Near-Term 2024 Outlook 2027-2028 Organic Goals Revenue $46M - $48M Gross Margins 42% - 44% EBITDA Margin 19% - 21% 10% CAGR 45 – 50% 21% - 23% Backlog $49M - $50M Revenue Gross Margins EBITDA
Slide 19: Thank You
MtronPTI wT, Thank You
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