Lgl Group, Inc. (the) · AMEX:LGL
Lgl Group, Inc. (the) — The LGL Group — Q3 2013 Earnings Presentation
14 slides from Lgl Group, Inc. (the)'s earnings presentation, Nov 14, 2013
Slide 1: Q3 2013 Earnings Report
The LGL Group, Inc. (NYSE MKT: LGL) Q3 2013 Earnings Report November 14, 2013 – 10:00 a.m. ET
Slide 2: Safe Harbor Statement
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 circumstances. Actual results ma
Slide 3: Corporate Snapshot
Corporate Snapshot Publicly traded global corporation Formed in 1917 IPO in 1946 MtronPTI subsidiary 1965 $28 million TTM annual revenue Sep 30, 2013 Revenue mix 49% outside the U.S. $5.83 Stock price 11/13/2013 $6.52 52-week high $15.1 million market capitalization 11/13/2013 $9.4 million cash and
Slide 4: Investment Highlights
Investment Highlights LGL’s subsidiary – MtronPTI, serves large B2B OEM clients that provide solutions to: Internet Communications Technology, and Aerospace and Defense Balanced • 65% Aerospace and Defense (Aero/Defense) Demand • 35% Internet Communications Technology (ICT) • Crystal technology rema
Slide 5: Q3 2013 Results
Q3 2013 Results Q3 2013 YTD 2013 Trend $6.1M $20.5M Revenue: down 17% compared to Q3 2012; down 7% compared to September YTD 2012 22.4% 27.2% Gross Margin: down 2.1% compared to Q3 2012; up 2.7% compared to September YTD 2012 ($0.46) ($0.89) Pre-Tax Loss per Share: down $0.28 compared to Q3 2012; do
Slide 6: Economic Environment
Economic Environment Overall weak macroeconomic climate no notable structural recovery in target markets compounding macro factors since H2 2011: Japanese natural disaster, U.S. budget uncertainty and sequestration, Euro crisis cautious infrastructure spending patterns Newer technology (e.g. IEEE 15
Slide 7: Financial Snapshot
Financial Snapshot Quarterly Income Statement Trends Capital Position as of: 9/30/2013 6/30/2013 • Cash and cash equivalents of $3.63 per share at Total Assets $ 22.6M $ 23.7M 09/30/2013 Net Working Capital 13.9M 14.9M • Cash-adjusted working capital of $2.53 per share at Cash-Adjusted Working Capit
Slide 8: Positioning for Growth
Positioning for Growth Capital position strong R&D investments in target markets organic investments (client service, ERP, software-defined radio, low noise radar, website, capacity and capabilities) harsh environment timing joint venture/M&A Key components in major clients’ systems Strong position
Slide 9: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Reconciliation of earnings before taxes (GAAP) to EBITDA (non-GAAP) (000's except percentages) Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Revenue $ 11,023 $ 9,020 $ 9,646 $ 9,629 $ 7,387 $ 7,174 $ 7,582 $ 7,307 $ 7,
Slide 10: Working Toward Growth
Working Toward Growth ‒ Several of our major clients reporting market softness for equipment purchases ‒ Repeat orders from existing contracts sluggish and under price pressure + Strong new product revenue stream across core business + Solid working capital position + Positive cash from operations d
Slide 11: Competitive Landscape
Competitive Landscape Frequency control products industry is undergoing change Many key competitors have formally announced strategic action Competitive announcements include: • spin-offs • restructuring • asset sales • good will write downs Commercial product lines under notable pricing pre
Slide 12: Strategic Announcements
Strategic Announcements 6/13/2013 Press release announcing external acquisition interest, formation of Strategic Committee; warrant dividend announced 7/17/2013 Warrant dividend terms finalized 8/7/2013 Warrants begin active trading on NYSE MKT 10/7/2013 Announces Michael Ferrantino, Sr. joins as Vi
Slide 13: Investment Considerations
Investment Considerations Strong capital position Experienced management team JV/M&A opportunities ~50 years experience Blue chip clients Diverse markets World–class team Quality certified, low cost worldwide manufacturing Industry leading technology, reliability, convenience, support 13
Slide 14: Question and Answer
Question and Answer Visit us: www.lglgroup.com www.mtronpti.com Contact us: Greg Anderson, President and CEO (e-mail: ganderson@lglgroup.com) LaDuane Clifton, CFO (e-mail: lclifton@lglgroup.com) Voice: (407) 298-2000 14