Slide 1: inTEST Corporation Q1 2023 Financial Results Conference Call
inTEST Corporation Q1 2023 Financial Results Conference Call Nick Grant, President and CEO Duncan Gilmour, CFO May 5, 2023
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: Execution of 5-Point Strategy Driving Results
Execution of 5-Point Strategy Driving Results ➢ Q1 revenue grew 32.5% y/y to $31.9 million 5-Point Strategy ▪ Does not include any acquired revenue ➢ Demonstrating strong execution of 5-Point Strategy for Growth ▪ Innovative solutions drive demand as new product introductions capture market share Gl
Slide 4: Revenue
Revenue ($ in millions) $32.4 $31.9 $29.6 $30.8 ➢ Q1 revenue of $31.9 million, up $7.8 million, or $24.1 32.5% y/y ➢ Strong demand across most markets and technology offerings ▪ Silicon carbide (SiC) crystal growth and epitaxy Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 applications drove semi sales up 32.1% ➢ De
Slide 5: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Quarters $15.0 $15.1 ➢ Q1 margin of 47.2% improved 150 bp y/y and $13.5 $13.9 100 bp sequentially $11.0 ▪ Q1 margin y/y reflects higher volume, better product mix and improved pricing 45.7% 45.8% 45.2% 46.2% 47.2% ➢ Q1 gross profit increased $4.0 million, or 3
Slide 6: Operating Expenses
Operating Expenses Investing in people and marketing to support 5-Point Strategy for Growth ($ in millions) Operating expenses as a % of sales ➢ As percent of revenue, operating expenses 42.4% 36.6% 34.9% 33.8% 36.1% declined to 36.1% in Q1 2023 versus 42.4% in the prior year $11.5 $10.8 $10.7 $10.9
Slide 7: Earnings and Adjusted EBITDA
Earnings and Adjusted EBITDA ($ in millions, except per share data) Net Earnings and Adjusted EBITDA / (1) EPS and Adjusted EPS (Non-GAAP) Adjusted EBITDA Margin (Non-GAAP)(1) $0.34 Quarters $5.3 $0.30 $0.29 $4.8 $0.28 $4.5 $0.25 $4.2 $0.25 $0.23 $3.2 $0.20 $2.8 $2.5 $2.1 $2.1 $0.12 $0.6 $0.05 8.9%
Slide 8: Capital Structure and Cash Flow
Capital Structure and Cash Flow ($ in millions) Year Capitalization Cash Flow Three Months Ended Ended 3/31/23 12/31/22 3/31/23 3/31/22 12/31/22 Cash and cash equivalents $ 15.4 $ 13.4 Net cash provided by (used in) operating $ 2.5 $ (2.8) $ (1.4) Restricted cash $ 0.5 $ 1.1 activities Total debt $
Slide 9: Orders and Backlog
Orders and Backlog ($ in millions) Orders $40.5 $32.7 ➢ Q1 orders up 23.0% y/y with increases across most $31.3 $30.8 $25.1 markets ➢ Sequentially, orders down modestly 1.6% ▪ Strength in orders from both front-end and back-end semi, automotive/EV and industrial Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 ▪ Offse
Slide 10: Updating Outlook for 2023
Updating Outlook for 2023 ➢ Second Quarter Outlook(1) ▪ Revenue: $31 million to $33 million 5-Point Strategy ▪ Gross margin: ~46% ▪ Operating expenses: $11.4 million to $11.7 million • Amortization (after tax) ~$450,000 Global & Innovation & ▪ Interest expense: ~$190,000 Market Differentiation Expan
Slide 11: Executing to Plan
Executing to Plan ($ in millions) ~$200 to $250 Potential Future Acquisitions $125 - $130 $117 $85 $54 ∕∕ 2020 2021 2022 2023E 2025E Actual Revenue Estimated Revenue(1) (1) Estimated 2025 revenue, including estimated revenue from future potential acquisitions, is based on management’s current views
Slide 12: Driving Scale to Deliver Growth in Earnings
Driving Scale to Deliver Growth in Earnings ($ in millions) Division Operating Income(1) Adjusted EBITDA(2) Net Earnings ~ $40 + ~ $30 + $22 ~ $20 + $19 $16 $12 $8 $7 22% 19% ~20% 14% 14% ~15% 9% 7% ~10% ∕∕ ∕∕ ∕∕ 2021 2022 2025E (3) 2021 2022 2025E (3) 2021 2022 2025E(3) (1) See segment reporting in
Slide 13: Execution on Track with Plan
Execution on Track with Plan Strong demand for inTEST’s innovative technologies and engineering expertise Diversified end markets with strong secular growth drivers Growing customer base, deepening customer reach and expanding geographically Financial flexibility to execute growth strategy Executing
Slide 14: Conference Call Playback Info Upcoming Events
Conference Call Playback Info ➢ Replay Number: (412) 317-6671 passcode: 13737864 ➢ Telephone replay available through May 12, 2023 ➢ Webcast / Presentation / Replay available at www.intest.com/investor-relations ➢ Transcript, when available, at www.intest.com/investor-relations Upcoming Events ➢ May
Slide 15: Supplemental Information
inTEST Corporation Q1 2023 Financial Results Conference Call Supplemental Information May 5, 2023
Slide 16: Net Earnings to Adjusted Net Earnings and Adjusted EPS Reconciliation
Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) and Earnings Per Share – Diluted to Adjusted Earnings Per Share – Diluted (Non-GAAP) ($ in thousands, except per share amounts) Three Months Ended Years Ended 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 12/31/2021 12/31/2022 N
Slide 17: Net Earnings to Adjusted EBITDA Reconciliation (Quarterly)
Reconciliation of Net Earnings to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP) ($ in thousands) Three Months Ended 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 Net earnings $ 577 $ 2,116 $ 2,524 $ 3,244 $ 2,817 Acquired intangible amortization 782 765 595 552 544 Interest e
Slide 18: Net Earnings to Adjusted EBITDA Reconciliation (Annual)
Reconciliation of Net Earnings to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP) ($ in thousands) Years Ended December 31, 2019 2020 2021 2022 Net earnings (loss) $ 2,322 $ (895) $ 7,283 $ 8,461 Acquired intangible amortization 1,257 1,233 1,440 2,694 Interest expense - 33 89 600 I
Slide 19: Reconciliation of Q2 2023 Estimated EPS to Adjusted EPS
Reconciliation of Second Quarter 2023 Estimated Earnings Per Share – Diluted to Estimated Adjusted Earnings Per Share – Diluted (Non-GAAP) Low High Estimated earnings per share – diluted $ 0.21 $ 0.26 Estimated acquired intangible amortization 0.05 0.05 Estimated tax adjustments (0.01) (0.01) Estima
Slide 20: Segment Reporting
Segment Reporting ($ in thousands) Quarter Ended Year Ended 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 12/31/2021 12/31/2022 Electronic Test $ 8,778 $ 9,797 $ 10,408 $ 11,236 $ 10,371 $ 32,509 $ 40,219 Environmental Technologies 6,993 7,507 7,631 8,041 8,042 26,896 30,172 Process Technologie