Rf Industries, Ltd. · NASDAQ:RFIL

Rf Industries — Q2 2019 Earnings Presentation

29 slides from Rf Industries's earnings presentation, Jun 12, 2019

Slide 1: Leading Designer and Manufacturer of Interconnect Products Q2 2019 Investor Presentation
© RF Industries Ltd. | 1 Leading Designer and Manufacturer of Interconnect Products Q2 2019 Investor Presentation 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: Under new CEO, we've seen a significant improvement in our results
© RF Industries Ltd. | 4 Under new CEO, we’ve seen a significant improvement in our results! $22.5 $21.6 $23.0 $50.2 2015 2016 2017 2018 Revenue (in millions) $1.0 ($4.1) $0.4 $5.8 2015 2016 2017 2018 Net Income (in millions)
Slide 5: RFIL company snapshot and statistics
© RF Industries Ltd. | 5 : RFIL Headquarters San Diego, CA 4 production locations (2 Northeast, 2 Southwest) Corning Gold, ISO 9001: 2008 Certified Founded 1979 IPO 1984 Employees 273 Statistics 6/11/19 Stock Price $ 7.52 52 Week Low - High $5.14 / $12.75 Avg. Vol. (3 months) 23K Shares Outstanding
Slide 6: Product lines
© 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 and small cells
© 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 (Y
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: OEM opportunities and market sizes
© RF Industries Ltd. | 9 OEM opportunities in markets like defense, transportation, agriculture, and oil & gas 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 , Febru
Slide 10: Distribution 60% and 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 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) $22.5 $21.6 $23.0 $50.2 2015 2016 2017 2018 Revenue (in millions) $0.4 ($4.5) $0.2 $6.0 2015 2016 2017 2018 Income from Continuing Ops. (in millions) - 3% - 4% +6% +118% Year - over - Year Growth Rate 1.8% - 20.8% 0.1% 12.0% Net
Slide 14: Q2 Financial Performance
© RF Industries Ltd. | 14 Q2 Financial Performance (ended Apr. 30) $5.4 $5.2 $20.5 $13.6 2016 2017 2018 2019 Revenue (in millions) ($120) ($35) $3,165 $1,061 2016 2017 2018 2019 Income from Continuing Ops. (in thousands) +1.9% - 3.7% +294.2% - 33.7% Year - over - Year Growth Rate - 2.2% - 0.7% 15.4%
Slide 15: Quarterly Revenue Trend
© RF Industries Ltd. | 15 Quarterly Revenue Trend $4.8 $5.4 $5.6 $5.8 $4.8 $5.3 $5.9 $7.0 $8.0 $20.5 $11.8 $9.9 $10.6 $13.6 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Revenue (in millions) - 25.0% +12.5% +3.7% +3.6% - 17.2% +10.4%
Slide 16: Balance Sheet Supports Growth
© RF Industries Ltd. | 16 $6.3 $4.3 $5.2 $16.3 $13.9 2015 2016 2017 2018 Q2 2019 Cash Balances (in millions) Balance Sheet Supports Growth $ in millions Oct. 31, 2017 Oct.31, 2018 Apr. 30, 2019 Cash $5.2 $16.3 $13.9 Total Assets $25.1 $32.5 $34.4 Stockholders’ Equity $21.4 $27.8 $29.7 Total Debt $0
Slide 17: Organic and inorganic growth strategy
© RF Industries Ltd. | 17 ▪ 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 18: C Enterprises acquisition
© RF Industries Ltd. | 18 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 2019  Brings strong f
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 $100 million in sales  Organic growth – low to mid - teens – leveraging distribution and OEM relationships  Inorganic growth – remain committed to addin
Slide 20: Our products are everywhere and make lots of things work
© RF Industries Ltd. | 20  Our products are everywhere and make lots of things work  Recent results have rewarded shareholders with higher stock price plus a long - standing dividend ▪ Revenue growth, margin growth, profit growth  Our new sales model is driving growth  We’re faster and more flex
Slide 21: Contact information
© RF Industries Ltd. | 21 RF Industries, Ltd. Mark Turfler SVP/CFO (858) 549 - 6340 rfi@rfindustries.com MKR Group Inc. Todd Kehrli Analyst/Investor Contact (323) 468 - 2300 rfil@mkr - group.com
Slide 23: Financial Statement Trends
Financial Statement Trends through April 30, 2019
Slide 24: Income Statement
Income Statement © January 9, 2019 RF Industries Ltd. | 24 2019 2018 2017 2016 2015 Q2 YTD Full Year Full Year Full Year Full Year (in millions) Unaudited Audited Audited Audited Audited Net sales 24.2$ 50.2$ 23.0$ 21.6$ 22.5$ Cost of sales 17.0 33.1 16.0 15.3 13.8 Gross profit 7.2 17.1 7.0 6.3 8.7
Slide 25: Balance Sheet
Balance Sheet © January 9, 2019 RF Industries Ltd. | 25 April 30, 2019 2018 2017 2016 2015 (in millions) Unaudited Audited Audited Audited Audited ASSETS: Current assets: Cash and cash equivalents 13.9$ 16.3$ 5.2$ 4.3$ 6.3$ Trade accounts receivable, net 7.9 4.3 2.9 2.5 2.9 Inventories 7.9 7.1 5.6 5
Slide 26: Statement of Cash Flows
Statement of Cash Flows © January 9, 2019 RF Industries Ltd. | 26 April 30, 2019 2018 2017 2016 2015 (in millions) Unaudited Audited Audited Audited Audited Operating Activities: Consolidated net income (loss) 1.7$ 5.8$ 0.4$ (4.1)$ 1.0$ Net income from discontinued operations - Comnet -$ (0.2)$ 0.2$
Slide 27: Income Statement (Quarterly)
Income Statement (Quarterly) © January 9, 2019 RF Industries Ltd. | 27 Q1 Q2 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD (in millions) Unaudited Audited Audited Net sales 10.6$ 13.6$ 24.2$ 8.0$ 20.5$ 11.8$ 9.9$ 50.2$ 4.8$ 5.3$ 5.9$ 7.0$ 23.0$ Cost of sales 7.5 9.5 17.0 5.5 12.9 7.8 6.9 33.1 3.3 3.8 4.1 4.8
Slide 28: Balance Sheet (Quarterly)
Balance Sheet (Quarterly) © January 9, 2019 RF Industries Ltd. | 28 Jan. 31 Apr. 30 Jan. 31 Apr. 30 Jul. 31 Oct. 31 Jan. 31 Apr. 30 Jul. 31 Oct. 31 (in millions) Audited Audited ASSETS: Current assets: Cash and cash equivalents 14.0$ 13.9$ 4.9$ 7.1$ 10.5$ 16.3$ 3.3$ 3.4$ 4.4$ 5.2$ Trade accounts rec
Slide 29: Statement of Cash Flows (Quarterly)
Statement of Cash Flows (Quarterly) © January 9, 2019 RF Industries Ltd. | 29 Q1 Q2 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD (in millions) Unaudited Audited Audited Operating Activities: Consolidated net income (loss) 0.6$ 1.1$ 1.7$ 0.5$ 3.2$ 1.7$ 0.4$ 5.8$ (0.2)$ 0.1$ 0.2$ 0.3$ 0.4$ Net income from disc

R F Industries — Q2 2019 Earnings Presentation on 6ix

Rf Industries — Q2 2019 Earnings Presentation

Slide 1: Leading Designer and Manufacturer of Interconnect Products Q2 2019 Investor Presentation

Slide 2: Forward-looking statements

Slide 3: Executive Team

Slide 4: Under new CEO, we've seen a significant improvement in our results

Slide 5: RFIL company snapshot and statistics

Slide 6: Product lines

Slide 7: Cell Tower Site Materials and small cells

Slide 8: Oilfield, aerospace and transportation applications

Slide 9: OEM opportunities and market sizes

Slide 10: Distribution 60% and Direct/OEM 40%

Slide 11: Distribution Partners and OEM Customers

Slide 12: Our Value Proposition and Differentiation

Slide 13: Annual Financial Performance

Slide 14: Q2 Financial Performance

Slide 15: Quarterly Revenue Trend

Slide 16: Balance Sheet Supports Growth

Slide 17: Organic and inorganic growth strategy

Slide 18: C Enterprises acquisition

Slide 19: Building a platform for long term growth

Slide 20: Our products are everywhere and make lots of things work

Slide 21: Contact information

Slide 22: © RF Industries Ltd. | 22

Slide 23: Financial Statement Trends

Slide 24: Income Statement

Slide 25: Balance Sheet

Slide 26: Statement of Cash Flows

Slide 27: Income Statement (Quarterly)

Slide 28: Balance Sheet (Quarterly)

Slide 29: Statement of Cash Flows (Quarterly)