Rf Industries, Ltd. · NASDAQ:RFIL
Rf Industries — Investor Presentation (May 2023)
38 slides from Rf Industries's investor presentation, May 2023
Slide 1: Connecting the Next Generation
Connecting the Next Generation RF INDUSTRIES INVESTOR PRESENTATION May 2023 © RF Industries 2023 | Proprietary & Confidential
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements with respect to future events, including our expectations about profitability, revenues, the strength of our distribution network and growth opportunities, including as relates to our ability to benefit from 4G and 5G n
Slide 3: RF Industries, Ltd. (Nasdaq: RFIL)
RF Industries, Ltd. (Nasdaq: RFIL) Connecting the Next Generation What We Do: Our products connect today’s networks with RF Industries designs and manufactures a tomorrow’s technology. broad range of specialty interconnect products across diversified, growing markets including wireless/wireline tele
Slide 4: RF Industries at a Glance
RF Industries at a Glance (Nasdaq: RFIL) A national manufacturer and marketer of interconnect products and systems Key Investment Thesis Large, diversified and growing markets, including wireless transition to 4G/5G Compelling customer value proposition drives sales and relationships; customers incl
Slide 5: Strong 6-Year Growth to Record Sales and Adjusted EBITDA
Strong 6-Year Growth to Record Sales and Adjusted EBITDA Revenue Growth ✓ Six-year revenue growth CAGR of 24.4% ✓ FY ‘22: Record Net Sales $85.3M +48% $85.3 $57.4 ✓ FY ‘22: Record Adjusted EBITDA of $6.6M $23.0 $50.2 $55.3 $43.0 ✓ Nearing completion of an investment cycle to 2017 2018 2019 2020 2021
Slide 6: Product Overview
Product Overview © RF Industries 2023 | Proprietary & Confidential
Slide 7: Product Offerings – Interconnect
Product Offerings – Interconnect Interconnect Products • Coaxial Cable Assembles • Fiber Optic Cable Assembles • FTTA and Hybrid Fiber Cable Assemblies • Wiring Harnesses • RF Coaxial Connectors • RF Coaxial Adapters • Low PIM Products • Passive Components 7 © RF Industries 2023 | Proprietary & Conf
Slide 8: Product Offerings – Integrated Systems
Product Offerings – Integrated Systems Integrated Small Cell Shrouds Direct Air Cooling • Pole Ready 4G/5G Small Cell integration • Industry leading fresh air, fan-based cooling systems • Reduce installation time from days to hours per cell • Ideal for cabinets, shelters, small buildings at network
Slide 9: Macro Sites (Cell Towers)
Macro Sites (Cell Towers) Used by Tier 1 and Tier 2 carriers to cover large areas with their wireless signal. Hybrid Power & RFI Provided Infrastructure: Fiber Cables • Hybrid Power & Fiber Cables: these cables bring the data connectivity and power to the radios at the top of the tower. • Cooling Sy
Slide 10: Distributed Antenna Systems (DAS)
Distributed Antenna Systems (DAS) Used by the carriers to enhance their wireless signal inside buildings, stadiums, airports, and other high traffic venues. RF Passive RFI Provided Infrastructure: Components • RF Coaxial Cables: connecting *Microlab the radio to the DAS antennas. • Fiber Cables: con
Slide 11: Small Cell Sites
Small Cell Sites Used by the carriers to provide additional coverage and capacity to highly populated areas. Referred to as network densification. RFI Provided Infrastructure: • RF Coaxial Cables: connecting the radio to RF Coaxial the small cell antennas. Cables • Fiber Cables: connecting the radio
Slide 12: Small Cell Customer Case Study
Small Cell Customer Case Study Munisite Networks Brings Concealed 5G to Jersey Shore with RF Industries Trufield Pole-Top Shroud 12 © RF Industries 2023 | Proprietary & Confidential www.rfindustries.com
Slide 13: Case Study Continued
Case Study Continued The Problem: The Jersey Shore is a natural location for 5G network expansion. Yet the area’s densely populated communities and famous boardwalk mean small cells must be strategically placed to increase wireless capacity and coverage in an effective, yet cost-efficient way. Munis
Slide 14: Our Brands
Our Brands 14 © RF Industries 2023 | Proprietary & Confidential www.rfindustries.com
Slide 15: Market Overview
Market Overview © RF Industries 2023 | Proprietary & Confidential
Slide 16: Target Markets
Target Markets Our Products Help Make Wireless Work and Enable Many Industrial Applications Wireless Connectivity Carrier Infrastructure Distributed Antenna Systems Public Safety Industrial and Other Communications Telecom and Networking Aerospace and Defense Electronics and Testing Transportation O
Slide 17: Market Opportunity
Market Opportunity Large and highly fragmented markets including wireless carrier builds • 5G Market estimated at ~$200B by 2030 with 48% CAGR from 2022 to 2030 • 5G build is expected to provide a long-term opportunity of 15-20 years • Distributed Antenna Systems Market = $8B growing to $18B in 2026
Slide 18: Market Influence and Sales Breakout
Market Influence and Sales Breakout Our job is to influence end customer purchases with quality products and high touch service Influence Products Channel End Customer Distribution 60% Distributors Carriers Neutral Hosts Direct to Neutral Hosts Carrier/OEM Integrators 40% Manufacturers Manufacturers
Slide 19: Distribution Partners & Sample End User Customers
Distribution Partners & Sample End User Customers Distribution Partners Sample Customers 19 © RF Industries 2023 | Proprietary & Confidential www.rfindustries.com
Slide 20: Compelling Customer Value Proposition
Compelling Customer Value Proposition • Speed of delivery requires deep understanding of customer inventory needs; and Fast ability to manage inventory • Faster lead times than larger competitors Flexible • Customized product options and solutions Reliable • Consistent supplier of superior products
Slide 21: Growth Strategy
Growth Strategy © RF Industries 2023 | Proprietary & Confidential
Slide 22: Organic Growth + Strategic M&A = Growth Strategy
Organic Growth + Strategic M&A = Growth Strategy Organic Growth Strategic M&A Proprietary product offerings Steady core product line growth and IP Expand and diversify market and Enter new market segments customer base Expand product offering Cross selling opportunities Leverage strong RFIL reputati
Slide 23: Track Record of Strategic Acquisitions
Track Record of Strategic Acquisitions 2022 2019 2019 • $16M revenue, $3.7 M adjusted EBITDA; • $6M revenue • $8.7M revenue; immediately accretive; $24M cash transaction cash transaction • In-demand product categories • Designs and manufactures high- ‒ Energy-efficient Direct Air Cooling(DAC) • Conn
Slide 24: Experienced Management Team
Experienced Management Team Robert Dawson, President and Chief Executive Officer, Director - Joined RF Industries as CEO in 2017 and appointed to the Board in 2018. Previously served as President and CEO of Vision Technology Services, an IT consulting and project management firm that was acquired by
Slide 25: Transformed Company for Sustained Growth and Returns
Transformed Company for Sustained Growth and Returns Key Accomplishments 2017 to 2023 ✓ Appointed new C-suite management team and enhanced Board of Directors ✓ Completed three strategic acquisitions, significantly expanding product offerings, distribution channels and team ✓ Strengthened competitive
Slide 26: Performance
Performance © RF Industries 2023 | Proprietary & Confidential
Slide 27: Summary Historical Financial Performance
Summary Historical Financial Performance ✓ Six years of revenue growth Revenue Growth Consistent Gross Margins ✓ Record 2022 Revenue, up 48% ✓ Record YOY 2022 Adjusted $85.3 28.0% 30.0% 27.0% 28.0% 28.8% 26.4% EBITDA of $6.6M $31.0 $50.2 $55.3 $43.0 $57.4 ✓ Healthy cash flow from 2017 2018 2019 2020
Slide 28: Historical Quarterly Revenue Trend
Historical Quarterly Revenue Trend Revenue (in millions) $23.8 $23.0 $21.1 $21.5 $20.5 $18.3 $16.9 $15.5 $15.5 Covid Impact $15.3 $13.6 $12.4 $11.8 $10.6 $10.7 $11.0 $9.9 $10.4 $10.0 $9.5 $8.0 $7.0 $5.9 $4.8 $5.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 '17 '17 '17
Slide 29: Historical Quarterly Revenue Improvement
Historical Quarterly Revenue Improvement ✓ Steady growth across quarters, First Quarter Second Quarter excluding pandemic impact. 16.9 18.3 20.5 21.5 12.4 ✓ Five years of revenue growth. 8.0 10.6 10.0 13.6 10.4 11.0 4.8 5.3 ✓ Record 2022 Revenue, up 48%. ✓ Seasonally, Q1 is the slowest Q1 '17 Q1 '18
Slide 30: Appendix and Financial Update
Appendix and © RF Industries 2023 | Proprietary & Confidential Financial Update
Slide 31: Board of Directors
Board of Directors Mark K. Holdsworth, Chairman of the Board – Serves on the Strategic Planning, Nominating & Corporate Governance and Compensation Committees. Previously Co-Founder and Managing Partner of Tennenbaum Capital Partners prior to its sale to BlackRock. Founder and Managing Partner of Th
Slide 32: Corporate Responsibility
Corporate Responsibility RF Industries upholds sustainable, socially responsible and ethical business practices. We are dedicated to the success of all RFIL stakeholders, employees, customers, suppliers, and communities. We are also committed to delivering the best products and services to our custo
Slide 33: Note Regarding Use of Non-GAAP Financial Measures
Note Regarding Use of Non-GAAP Financial Measures To supplement our condensed financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), this presentation and the accompanying tables and the related earnings conference call contain certain non-GAAP financ
Slide 34: Balance Sheet
Balance Sheet Consolidated Balance Sheets - USD ($) $ in Thousands Oct. 31, 2022 Oct. 31, 2021 Oct. 31, 2020 CURRENT ASSETS Cash and cash equivalents 4,532 13,053 15,797 Trade accounts receivable, net of allowance for doubtful accounts of $207 and $87, respectively 14,812 13,523 5,669 Inventories 21
Slide 35: Income Statement
Income Statement 12 Months Ended Consolidated Statements of Operations - USD ($) Oct. 31, 2022 Oct. 31, 2021 Oct. 31, 2020 Net sales 85,254,000 57,424,000 43,044,000 Cost of sales 60,705,000 39,656,000 31,478,000 Gross profit 24,549,000 17,768,000 11,566,000 Operating expenses Engineering 2,913,000
Slide 36: Statement of Cash Flows
Statement of Cash Flows 12 Months Ended Consolidated Statements of Cash Flows - USD ($) Oct. 31, 2022 Oct. 31, 2021 Oct. 31, 2020 OPERATING ACTIVITIES: Consolidated net income 1,448,000 6,181,000 (81,000) Adjustments to reconcile consolidated net income to net cash provided by (used in) operating ac
Slide 37: Unaudited Reconciliation of Non-GAAP Financials
Unaudited Reconciliation of Non-GAAP Financials RF INDUSTRIES, LTD. AND SUBSIDIARIES RF INDUSTRIES, LTD. AND SUBSIDIARIES Unaudited Reconciliation of GAAP to Non-GAAP Net (Loss) Income Unaudited Reconciliation of Net Loss to Adjusted EBITDA (In thousands, except share and per share amounts) (In thou
Slide 38: RF Industries, Ltd. Financial Profiles
RF Industries, Ltd. Financial Profiles Peter Yin John Brownell SVP/CFO Director 858-549-6340 310-622-8249 © RF Industries 2023 | Proprietary & Confidential rfi@rfindustries.com