Slide 1: 3rd Quarter 2023 Earnings Release Supplemental Information
3rd Quarter 2023 Earnings Release Supplemental Information November 2, 2023
Slide 2: Safe Harbor Forward Looking Statements
2 Safe Harbor Forward Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, such as statements about our future plans, objectives, expectations, financial perfor
Slide 3: Solid Q3 performance, in line with expectations
• Revenue down YoY primarily due to lower Precsion Devices revenue driven by excess customer and channel inventory and timing of defense shipments • Non-GAAP Gross Profit Margin of 44.6%, up 610bps versus prior year primarily due to the gain on sale of fully depreciated assets, productivity improvem
Slide 4: Q3 2023 Segment Performance: Precision Devices
• Revenue down 22% YoY driven by continued weak demand associated with excess channel inventory in the industrial and distribution markets and timing of shipments into the defense market • Non-GAAP Gross Profit Margin down 710bps driven by unfavorable capacity utilization 4 Q3 2023 Segment Performan
Slide 5: Q3 2023 Segment Performance: MedTech & Specialty Audio
• Revenue up versus the prior year higher shipments as demand has returned to more normalized • Non-GAAP Gross Profit Margin increased year-over- year on productivity gains, favorable mix, and foreign currency benefits Q3 2023 Segment Performance MedTech & Specialty Audio * For this Non-GAAP financi
Slide 6: Q3 2023 Segment Performance: Consumer MEMS Microphones
• Revenue increased YoY driven by growth in non- mobile applications • Non-GAAP Gross Profit Margin up 1580 bps year- over-year driven by gain on the sale of fully depreciated assets, restructuring benefits, improved product mix, and higher factory capacity utilization, partially offset by pricing p
Slide 7: Outlook Q4 2023 Guidance
July 28, 2021 Outlook Q4 2023 Guidance 7 GAAP ADJUSTMENTS NON-GAAP Revenue $210.0 to $220.0 million — $210.0 to $220.0 million Diluted earnings per share $0.17 to $0.21 $0.10 $0.27 to $0.31 Net cash provided by operating activities $40.0 to $50.0 million — $40.0 to $50.0 million Q4 2023 GAAP results
Slide 8: Appendix
Appendix 4« knowles
Slide 9: Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
July 28, 2021 Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures 9 Quarter Ended September 30, (in millions, except per share amounts) 2023 2022 Revenues $ 175.1 $ 178.2 Gross profit $ 77.5 $ 40.0 Gross profit margin 44.3 % 22.4 % Stock-based compensation expense 0.5 0.5 Restru
Slide 10: Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures 10 Quarter Ended September 30, (in millions, except per share amounts) 2023 2022 Net earnings $ 16.6 $ 2.7 Interest expense, net 0.6 1.1 Provision for (benefit from) income taxes 4.9 (16.3) Earnings (loss) before interest and i
Slide 11: Historical Segment Data
Historical Segment Data 11 Precision Devices MedTech & Specialty Audio Consumer MEMS Microphones Quarter Ended Quarter Ended Quarter Ended September 30, June 30, March 31, December 31, September 30, September 30, June 30, March 31, December 31, September 30, September 30, June 30, March 31, December
Slide 12: Historical Segment Data
Historical Segment Data 12 Precision Devices MedTech & Specialty Audio Consumer MEMS Microphones Quarter Ended Quarter Ended Quarter Ended September 30, June 30, March 31, December 31, September 30, September 30, June 30, March 31, December 31, September 30, September 30, June 30, March 31, December
Slide 13: Reconciliation of Segment EBIT to Consolidated Net Earnings
Reconciliation of Segment EBIT to Consolidated Net Earnings 13 Quarter Ended September 30, June 30, March 31, December 31, September 30, (in millions) 2023 2023 2023 2022 2022 Earnings (loss) before interest and income taxes Precision Devices $ 6.1 $ 4.8 $ 10.7 $ 16.6 $ 16.2 MedTech & Specialty Audi
Slide 14: Reconciliation of Net Debt
Reconciliation of Net Debt 14 (in millions) September 30, 2023 Current maturities of long-term debt $ — Long-term debt 45.0 Total debt 45.0 Less: Cash and cash equivalents (75.1) Net debt (cash) $ (30.1)