Taylor Devices, Inc. · NASDAQ:TAYD
Taylor Devices — Shareholder Meeting (October 2024)
49 slides from Taylor Devices's shareholder meeting presentation, Oct 25, 2024
Slide 1: Welcome to Taylor Devices, Inc. Annual Shareholders Meeting 2024
Welcome to Taylor Devices, Inc. Annual Shareholders Meeting 2024
Slide 2: Cautionary Statement
Cautionary Statement This presentation includes “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the Safe Harbor Provision and are including this statement for the purpose of such Safe
Slide 3: FY 2024 Overview
FY 2024 Overview • CEO report – Tim Sopko • President report – Alan Klembczyk • Operations report – Todd Avery/Bob Conrad • CFO report – Paul Heary
Slide 4: Shareholders Meeting: Tim Sopko, CEO
Taylor Devices, Inc. Shareholders Meeting Tim Sopko Chief Executive Officer October 25 2024
Slide 5: FY 2024 Highlights
FY 2024 Highlights Another good and record year for Taylor Devices! • New record high Sales of $44.6M up 11% from last year’s record of $40.2M, with the average over the past five fiscal years of $33.3M. • Bookings of $45.2M down from last year’s record of $49.1M, with the average over the past five
Slide 6: FY 2024 Highlights
FY 2024 Highlights Another good and record year for Taylor Devices! • Very importantly, our On Time Delivery to our customers finished at a new record high of 92% for FY24 vs. 89% in FY23 and 71% in FY22. • Customer/market diversity continued with 60% Aerospace/Defense & 40% Structural/Industrial (v
Slide 7: FY 2024 Highlights
FY 2024 Highlights Another good and record year for Taylor Devices! • R&D investment of $0.4M vs. $1.1M last year along with CapEx of $1.1M vs. $3.4M last year, as well as $0.3M for the acquisition of Pumpkin Mounts intellectual property, continue to drive and support our growth strategies. • Custom
Slide 8: Our Strengths
Our Strengths Continue to Positively Differentiate Us • Elegantly Innovative Custom Engineered Solutions that are critical to preserving structures/platforms, missions and lives. • Diverse portfolio; both Markets/Customers (Structural/Industrial and Aerospace/Defense) as well as Regional/Geographic
Slide 9: FY 2025 Priorities and Outlook
FY 2025 Priorities and Outlook Support of our Near, Mid, & Long Term Goals • Our Profitable Growth Strategy per our Long Range Strategic Plan continues to be: - Focus on and prospect in markets that are stable or growing where customers have critical need to manage energy (impulsive and/or vibratory
Slide 10: FY 2025 Priorities and Outlook
FY 2025 Priorities and Outlook Support of our Near, Mid, & Long Term Goals • Our priorities for FY25 are: - People – develop our team including Leadership Training for identified successors - Growth Campaigns - enable Campaigns through our Integrated Technology Roadmap for key Campaigns with cross f
Slide 11: Thank You!
Thank You! Taylor Devices, Inc. 2024 Shareholders Meeting October 25, 2024
Slide 12: Shareholders' Meeting: Alan Klembczyk, President
Taylor Devices, Inc. Shareholders’ Meeting Alan Klembczyk President October 25 2024
Slide 13: Business Development & Sales Highlights – FY24
Business Development & Sales Highlights – FY24 • Continuing to focus Campaign & • Customer funded R&D is healthy Capture Plans that are used to resulting in short-term revenue and lays prioritize and focus the targeted the groundwork for future years. markets using Key Performance Indices including
Slide 14: Business Development & Sales - Broken Down by Product Group
Business Development & Sales - Broken Down by Product Group… Structural Industrial Aero/Defense
Slide 15: Structural Products
Structural Products • Structural Products account for 32% ($14.4M) of revenue, down from 30% ($20.6M) for FY23. • We continue to foster interest in the Taylor Damped Moment Frame and hope that the market will respond favorably to lower interest rates. • We maintain a staff of 5 engineers on the west
Slide 16: Industrial Products
Industrial Products • Industrial Products account for 8% ($3.5M) down from 10% ($4.0M) of revenue for FY23. • We maintain a strong customer base for standard products and activity remains steady. • Proposal activity remains strong with demand for standard and customized new products.
Slide 17: Aerospace and Defense Products
Aerospace and Defense Products • Sales of $26.7M (60% of total) up from $15.6M (39% of total) FY23. Sales have more than doubled since FY22. • Bid & Proposal activity remains high, and the future looks bright. • Strategy includes taking on more overall content than usual. • Although Internal R&D exp
Slide 18: A Couple Project Examples...
A Couple Project Examples...
Slide 19: Vibration Isolation Mount for US Submarines
Vibration Isolation Mount • Taylor Devices supplies an elastomeric Vibration Isolation Mount for shock and US Submarines vibration control for submerged systems. • In production since 1989. • Several versions are needed for specific payload protection. • We have enjoyed intermittent production for n
Slide 20: 651 Gateway, San Francisco, CA
651 Gateway San Francisco, CA • A 17-story commercial office building built in the 1980’s. • Converted to a specialized lab space involving a voluntary seismic upgrade. • Our dampers significantly improve the performance in an earthquake by decreasing the predicted drift (movement) in an EQ and addr
Slide 21: Business Development & Sales Summary
Business Development & Sales Summary • Very healthy backlog to end the fiscal year at a record of $33.1M. • Strong BD&S and customer activity for all 3 product groups. • Continuation of aggressive BD&S strategies. • A strong combination of projects including reorders for mature products and programs
Slide 22: Thank You!
Thank You! Taylor Devices, Inc. 2024 Shareholders Meeting October 25, 2024
Slide 23: Shareholder's Meeting: Operations
Taylor Devices, Inc. Todd Avery/Bob Conrad Vice President, Operations Shareholder’s Meeting October 2024
Slide 24: Overview
Overview FY2024 • Results through Continuous Improvement • Goals for FY 2025 Operating System Performance System People System 24
Slide 25: FY 2024 – Customer KPI Trends
FY 2024 – Customer KPI Trends % Orders Shipped On Time - FY Past Due Order Lines - End FY 100 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 25
Slide 26: FY 2024 – Supplier KPI Trends
FY 2024 – Supplier KPI Trends Supplier On Time Delivery % FY Supplier Past Due Lines FY 100 45 90 40 80 35 70 30 60 25 50 20 40 15 30 20 10 10 5 0 0 2022 2023 2024 2022 2023 2024 26
Slide 27: FY 2024 – People KPI Trends
FY 2024 – People KPI Trends # Safety Incidents CY (23/24 incl near misses) % turnover FY 30 30 25 25 20 20 15 15 10 10 5 5 0 0 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 27
Slide 28: Continuous Improvement
35% Actual productivity improvement Continuous Improvement (hrs/unit) 17173 Assy hrs per unit per job 14.00 12.00 10.00 8.00 6.00 4.00 Cartridge Positioner 2.00 Sub Assy Positioner - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Structural/Aerospace Sub Structural/Aerospace Fi
Slide 29: Continuous Improvement – 100+ Wins for the FY
Continuous Improvement – 100+ Wins for the FY - Joined a shipping consortium, resulting in a 25% reduction in targeted shipping costs - Completed dozens of machining set up and run time improvements, reducing job machining time by 10%-50% - Easy Arm crane with lift assist installed on a Test Machine
Slide 30: FY 2025 Improvement Priorities
FY 2025 Improvement Priorities Business Campaigns Production Control Agility Daily Productivity Daily Kitting Lg/Sm Assembly Cell(s) Bolt Package Ship Receiving Receiving Machine Bolt Island Shop 2XDaily Kitting Structural Assembly Cell(s)
Slide 31: FY2025 Goals
FY2025 Goals • OTD >= 94%; Past Due Lines <= 5 • Supplier On Time Delivery >=92% • Complete 100+ Productivity Improvements • Engaged Workforce through Lean, Strategy Deployment, Performance Management, and Strategic Workforce Planning 31
Slide 32: Shareholders Meeting: Paul Heary, CFO Financial Report
Taylor Devices, Inc. Shareholders Meeting Paul Heary Chief Financial Officer Financial Report October 25 2024
Slide 33: Sales
Sales Sales (U.S. $000's) $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 & |s28,382 Ataylorieices inc.
Slide 34: Sales by Customer Type
Sales Sales by Customer Type $45,000 $40,000 $35,000 $30,000 % $25,000 3 8 a vj $20,000 3 $15,000 $10,000 $5,000 : = : rs | een | 1! 2020 2021 2022 2023 ® Structural $15,622 $10,138 $16,267 $20,642 ™ Aerospace / Defense| $10,771 $10,183 $12,441 $15,569 = Industrial $1,989 $2,189 $2,159 $3,988 Ataylo
Slide 35: Aero / Defense Sales
Sales Aero / Defense Sales Sales ($000's) FY20 FY21 == Aero/Def Sales FY22 FY23 FY24 -e-Aero/Def % of Total Percent of Total Sales Ataylorieices inc.
Slide 36: Structural / Industrial Sales
Sales Structural / Industrial Sales
Slide 37: Sales by Region
$45,000 Sales sone ey $35,000 iy th $30,000 $25,000 $20,000 Sa les by $15,000 Region $10,000 7 ; d 4 y (U.S. $000's) $5,000 $ 2020 2021 2022 2023 2024 a USA $23,780 $15,252 $23,373 $32,437 $38,279 B Asia $3,005 $4,555 $4,320 $4,417 $1,969 = Other $1,597 $2,703 $3,174 $3,345 $4,335 Ataylorieices inc.
Slide 38: Sales & Gross Profit
Sales/GP Sales & Gross Profit
Slide 39: Research and Development Expense
R&D Research and Development Expense
Slide 40: Selling, General and Administrative Expenses
SG&A Selling, General and Administrative Expenses
Slide 41: Operating Income
(@) I $12,000 25% = a 21% — $10,000 aA 20% $8,000 im — 15% z rN F 36,000 — 10! 2 3 $6, Z % 5 6 8% g 3 $4,000 n — m% = g O ti Y . perating sza00 — % Income | * $(2,000) -10% $(2.352) $(4,000) 10% 15% FY'20 FY'21 FY'22 FY'23 FY'24 = Operating income == O11. % of Sales Ataylorieices inc.
Slide 42: Net Income
N I $10,000 $3.00 rT] rT] $2.68 $9,000 $8,000 $2.50 g 3 $7,000 $2.00 g 3 $6,000 : $5,000 $1.50 9 < Net $4,000 fi $1.00 $3,000 Income seam . $0.50 $1,000 $- $s FY'20 FY'21 FY'22 FY'23 FY'24 == Net income —- EPS Ataylorieices inc.
Slide 43: Backlog
$35 Backlog $30 $25 Millions $20 $15 Sales Order suo Backlog ss $0 May 20 May 21 May 22 May 23 May 24 li Aerospace / Defense Structural ™ Industrial Ataylorieices inc.
Slide 44: Select Financial Data
2020 2021 2022 2023 2024 Total Assets $ 45,076 $ 45,932 $ 49,219 $ 57,881 $ 63,077 Return on Assets 7.0% 2.3% 4.7% 11.7% 14.9% Select Financial Shareholders' Equity $ 39,538 $ 40,798 $ 43,255 $ 50,093 $ 51,247 Return on Equity 8.0% 2.6% 5.3% 13.5% 17.8% Data Capital Expenditures $ 1,231 $ 1,622 $ 1,
Slide 45: Company Stats
Company Incorporated: 1955 Stats IPO: 1960 NASDAQ: TAYD (5/31/24) Market capitalization: $159 million Share price: $50.92 52-week range: $18.06 - $61.70 Common shares outstanding: 3.1 million Average daily volume: 14,035
Slide 46: Thank You!
Thank You! Taylor Devices, Inc. 2024 Shareholders Meeting October 25, 2024
Slide 47: Shareholders Meeting Support Slides
Taylor Devices, Inc. Shareholders Meeting Support Slides October 25 2024
Slide 48: TDI Quarterly Backlog and Sales Trends
TDI Quarterly Backlog and Sales Trends
Slide 49: TDI Backlog, Sales and Net Profit Trends
TDI Backlog, Sales and Net Profit Trends