Intest Corporation · AMEX:INTT
Intest — Sidoti Virtual Micro-Cap Conference (May 2022)
29 slides from Intest's conference presentation, May 11, 2022
Slide 1: inTEST Corporation
inTEST Corporation Sidoti Virtual Micro-Cap Conference Nick Grant Duncan Gilmour President and CEO Chief Financial Officer May 11, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements do not convey historical information but relate to predicted or potential future events and financial results, suc
Slide 3: Unlocking The Potential
Unlocking The Potential Vision To be the supplier of choice for innovative test and process technology solutions Leverage our deep industry knowledge & expertise to develop and deliver high quality, Mission innovative customer solutions and superior support for complex global challenges Nick Grant,
Slide 4: Transforming inTEST
Transforming inTEST Supplier of Choice for Innovative Test and Process Technology Solutions Robust long-term growth strategy Emphasis on diversified growth markets Process and acquisitions Electronic Technologies Test 37% Q1’22 TTM 32% Clear, consistent, continuous investor and Revenue employee comm
Slide 5: 5-Point Strategy Drives Long-Term Value
5-Point Strategy Drives Long-Term Value ➢ Grow Top-Line Through Geographic ➢ Drive Innovation and and Market Expansion Technological Differentiation ▪ Further penetrate existing markets with Global & ▪ Leverage expertise to deliver highly-valued Innovation & infrastructure investments Market Differe
Slide 6: Strong Foundation For Growth
Strong Foundation For Growth inTEST: Known for Highly-Engineered, Customer-Driven Solutions Growing and Diversified Markets Blue-Chip Global Customer Global Presence Blue-Chip Global Customer Base Base ➢ Semiconductor ➢ TTM Q122 Revenue: $89.4M ➢ Industrial ▪ 41.5% APAC ➢ Automotive/EV ▪ 36.0% Ameri
Slide 7: Serving Large and Diverse Markets
Serving Large and Diverse Markets ($ in millions) inTEST $2.0B+ SAM* Entering 2022 Electronic Environmental Process Test Technologies Technologies ~$350M ~$680M ~$1.3B+ Serviceable Addressable Markets (SAM) $150 $200 $180 $500 $310 $1B+ Semi Test In-Circuit Test Thermal Test Cold Chain Induction Ima
Slide 8: Driving Market Leadership/Opportunities
Driving Market Leadership/Opportunities Targeting markets with strong, secular tailwinds inTEST Revenue by Market* Expected 5-Year Markets Market Growth** Served 3% to 6% Semi Markets Industrial 3% to 6% Defense/Aero 3% to 6% 2021 2022E 2025E Targeted Growth Markets Auto/EV 5% to 8% Life Science 6%
Slide 9: Electronic Test
Electronic Test Engineering solutions for the toughest challenges in automated test ➢ Market footprint expands beyond Semi to include Industrial, Auto/EV, Life Sciences and Defense/Aero ➢ Bringing automation/integration to back-end semi test; solutions enable testers to work with virtually all handl
Slide 10: Environmental Technologies
Environmental Technologies Creating and controlling environmental conditions in test, process and storage applications ➢ Born in Semi, product standardization and acquisitions broadened markets significantly: ▪ Life Sciences cold chain solutions serves vaccine development, medical advancements and c
Slide 11: Process Technologies
Process Technologies Technical expertise and customized solutions for industrial applications ➢ Addressable market expands through product development, global lab extension and acquisitions: ▪ Induction heating and recently acquired videology/camera applications combine to serve large, diverse and g
Slide 12: Making M&A a Core Competency
Making M&A a Core Competency M&A Eco-System Deal Focus Acquire quality businesses to drive shareholder value Expand into fast growing markets Offer broader portfolio of solutions Strategy M&A Development Execution Drive further market diversification M&A Eco- Enhance value-added technology System Co
Slide 13: M&A / Corporate Development
M&A / Corporate Development Significant progress made in year one of strategy deployment Completed three acquisitions (4th Quarter 2021) Disciplined M&A process in place from target investigation to integration Focus on expanding technologies, geographies and markets served Building a strong M&A eco
Slide 14: Financial Overview
Financial Overview 14
Slide 15: Revenue
Revenue ($ in millions) $24.1 ➢ Q1 revenue up $4.5 million, or 23%, y/y $21.8 $22.4 $21.1 ▪ Three Q4’21 acquisitions added $4 million $19.6 ➢ All Markets improved y/y ▪ Solid demand in automotive (especially EV), and industrials drove organic growth Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 ▪ Expansion in life
Slide 16: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Quarters $11.0 $11.0 ➢ Q1 gross profit increased $1.5 million y/y $10.4 $10.3 $9.5 ▪ Margin contraction vs. prior-year period reflected less favorable product mix, specifically back-end semi test solutions, as well as supply chain constraints and inflation 48.
Slide 17: Operating Expenses
Operating Expenses Investing in people and marketing to support 5-Point Strategy for Growth ($ in millions) ➢ Q1 operating expenses up $160,000 sequentially 35.5% 36.3% 37.1% 45.0% 42.4% ▪ Reflects a full quarter of expenses associated with acquisitions which offset atypical acquisition and $10.1 $1
Slide 18: Earnings and Adjusted EBITDA
Earnings and Adjusted EBITDA ($ in millions, except per share data) ➢ Focused on leveraging scale and efficiencies Adjusted EBITDA and Margin(1) ➢ Adjusted EPS reflects $689,000 (after tax) of Quarters acquired intangible amortization $4.0 $3.3 $3.4 $2.1 $1.4 EPS and Adjusted EPS(1) 16.9% 18.3% 16.0
Slide 19: Capital Structure and Cash Flow
Capital Structure and Cash Flow ($ in millions) Capitalization Cash Flow Three Months Ended Year Ended 3/31/22 12/31/21 3/31/22 3/31/21 12/31/21 Cash and cash equivalents $ 17.2 $ 21.2 Net cash provided by (used in) operating $ (2.7) $ (0.3) $ 10.8 Total debt $ 19.2 $ 20.1 activities (GAAP) Total ne
Slide 20: Orders and Backlog
Orders and Backlog ($ in millions) Orders $30.5 ➢ Demand from most markets remains strong $25.2 $25.1 $25.1 ▪ Book-to-bill of 1:1.04 $21.1 ▪ Automotive orders more than double y/y to $2.6 million driven by EV • Includes induction heating and new battery test solutions ▪ Industrial demand for environ
Slide 21: Outlook for 2022
Outlook for 2022 ➢ Focused on driving growth and expanding markets & customer base 5-Point Strategy ▪ Integrating acquisitions and extending market reach ▪ Adding technical expertise and driving innovation ▪ Solving customers’ complex problems Global & Innovation & ➢ 2022 Outlook & Q2 Guidance(1) Ma
Slide 22: Strategic Plan Focused on Long-Term Revenue Growth
Strategic Plan Focused on Long-Term Revenue Growth ($ in millions) ~$200 to $250 Future Acquisitions ~$110 to $115 $85 $54 ∕∕ 2020 2021 2022E 2025E 22
Slide 23: Operating Leverage Drives Profitability
Operating Leverage Drives Profitability ($ in millions) Division Operating Income* Adjusted EBITDA1 Net Income (Loss) ~ $40 + ~ $30 + ~ $20 + $19 $12 $7 $7 $1 13% 23% ~20% 2% 14% ~15% 9% ~10% ($1) ∕∕ ∕∕ ∕∕ 2020 2021 2025E 2020 2021 2025E 2020 2021 2025E 1 Adjusted EBITDA is a non-GAAP financial meas
Slide 24: Conclusion & Investment Highlights
Conclusion & Investment Highlights Results driven, entrepreneurial culture driving accelerated growth Executing 5-Point Strategy and delivering results Expanded addressable markets with strong secular growth drivers Strong balance sheet provides financial flexibility and access to capital Targeting
Slide 25: Supplemental Information
Supplemental Information 25
Slide 26: Adjusted Net Earnings Reconciliation
Adjusted Net Earnings Reconciliation ($ in thousands) Three Months Ended 3/31/2022 3/31/2021 12/31/2021 Net earnings (loss) (GAAP) $ 577 $ 2,212 $ 287 Acquired intangible amortization 782 304 522 Tax Adjustments (93) (4) 10 Adjusted net earnings (Non-GAAP) $ 1,266 $ 2,512 $ 799 Diluted weighted aver
Slide 27: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Three Months Ended Twelve Months Ended 3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 Q1 22 TTM 2021 2020 2019 Net earnings (GAAP) $ 577 $ 287 $ 2,175 $ 2,609 $ 2,212 $ 5,648 $ 7,283 $ (895) $ 2,322 Acquired intangible amortization 782 522 309 305
Slide 28: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Estimated Q2 2022 Guidance 28
Slide 29: Segment Reporting
Segment Reporting Reclassification of 2021 ($ in thousands) Quarter Ended Year Ended 3/31/2021 6/30/2021 9/30/2021 12/31/2021 3/31/2022 12/31/2021 Electronic Test $ 8,501 $ 9,054 $ 8,103 $ 6,851 $ 8,778 $ 32,509 Environmental Technologies 6,198 6,647 6,875 7,176 6,993 26,896 Process Technologies 4,8
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