Intest Corporation · AMEX:INTT
Intest — D.A. Davidson Semicap, Laser & Optical Conference 2021
31 slides from Intest's conference presentation, Dec 15, 2021
Slide 1: Innovative Test & Process Solutions
Innovative Test & Process Solutions D.A. Davidson Semicap, Laser & Optical Conference December 15, 2021 Nick Grant Duncan Gilmour President and CEO CFO and Treasurer
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
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: Investment Highlights
Investment Highlights Successful track record of identifying and integrating accretive acquisitions Established and high-value partner in Innovative Test & Process Technology Solutions Blue-chip, high-quality global customer base $ Diversified and growing end markets Attractive margin profile with s
Slide 4: inTEST Corporation (NYSE American: INTT)
inTEST Corporation (NYSE American: INTT) A global supplier of innovative test and process solutions for use in manufacturing and testing across a wide range of markets, including automotive, defense/aerospace, industrial, life science, semiconductor and telecommunications. Nick Grant President and C
Slide 5: Vision and Mission
Vision To be the Supplier of Choice for Innovative Test and Process Technology Solutions Mission Leverage our Deep Industry Knowledge & Expertise to Develop and Deliver High Quality, Innovative Customer Solutions and Superior Support for Complex Global Challenges 5
Slide 6: Markets Served
Markets Served Multimarket: Automotive, Defense/Aerospace, Industrial, Life Sciences, Telecom Semi Market: Semiconductor Manufacturers – End Users (Test Facilities, Labs, Production Floor) ATE Equipment Suppliers – OEMs 6
Slide 7: Product and Industry Expertise
Product and Industry Expertise Solve technical challenges others can’t - thermally, mechanically, electronically Temperature Forcing Systems | Thermal Chambers | Low-temp Chillers Ultra-cold Storage Solutions | Induction Heating Systems | Digital Imaging Solutions ATE Test Head Manipulators, Docking
Slide 8: Global Presence
Global Presence 2021 YTD Net Revenue by Region Manufacturing Sales, Service, Support 19% EMEA UK Germany Total New York Massachusetts. $62.5M California New Jersey Netherlands (HQ) Singapore 31% 50% Americas Asia / Pacific 40+ Channel Partners (Reps/Dist.) complement our Direct Sales Teams 8
Slide 9: Blue-Chip Customer Base
Blue-Chip Customer Base INSTRUMENTS SONY TE=5LAi ves «6 A@—Ss« SIEMENS DELPHI LOCKHEED martin TOSHIBA (96) S Google CONE Wal & Cisco Raytheon EMERSON. TERADYNE intel. inTEST
Slide 10: 5-Point Strategy
5-Point Strategy Growth Focus Customer Focus Global & Strategic Market Acquisitions & Expansion Partnerships Service & Talent & Support Culture Standardization & Innovation Focus Scalability Innovation & Differentiation Intellidock™ System 10
Slide 11: Z-Sciences Advances Core Growth Strategies
Z-Sciences Advances Core Growth Strategies Z-Sciences Corp. develops and sells high-performance biomedical refrigerators and freezers that meet versatile applications, including ultra-cold storage solutions for biological sample banks, blood safety, vaccine safety, medical supplies and reagent safet
Slide 12: Videology Expands Process Technology Offerings
Videology Expands Process Technology Offerings Videology Imaging Solutions designs and manufactures industrial-grade circuit board mounted digital imaging solutions and related devices, systems and software for OEM custom solutions. Strategic Rationale • Closed October 28, 2021 • Headquartered in Gr
Slide 13: Acculogic Adds Electronic Circuit & EV Battery Testing Capabilities
Acculogic Adds Electronic Circuit & EV Battery Testing Capabilities Acculogic, Inc. designs and manufactures robotics-based electronic production test equipment and application support services for OEM and contract electronic manufacturers. • Announced December 9, 2021 Strategic Rationale • Expected
Slide 14: Financial Overview
INTEST Corporation Financial Overview
Slide 15: Revenue
Revenue ($ in millions) Quarters $21.8 $19.6 $21.1 Q3 revenue up $6.7 million, or 46%, YoY $14.9 $6.1 $14.4 $7.5 $6.2 Multimarket: $7.1 $7.3 $15.7 • Ongoing, broad-based recovery within industrial $13.3 $13.7 $7.4 $7.6 sectors Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 • Benefited from new product introductions
Slide 16: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Quarters $11.0 $9.5 $10.4 Q3 gross profit increased $3.9 million YoY $6.7 • 450 basis point margin expansion $6.5 • Reflects higher volume, benefits of restructuring and improved product mix 44.7% 45.2% 48.7% 50.2% 49.2% Sequential margin impacts: Q3 20 Q4 20
Slide 17: Operating Expenses
Operating Expenses ($ in millions) Effectively managing costs while 41.7% 48.4% 35.5% 36.3% 37.1% investing for growth (Q2 vs Q3) • Investing in people and marketing to support $7.9 $7.8 $0.2 $0.1 5-Point Strategy $7.2 $6.9 • ~$300 thousand in expenses related to M&A activities $0.1 $6.0 $1.1 • More
Slide 18: Profitability in Line with Expectations
Profitability in Line with Expectations Focused on strengthening earnings power Adjusted EBITDA and Margin(2) Strong cash generation Quarters Adjusted EPS reflects ~$300 thousand of acquired intangible $4.0 amortization $3.3 $3.4 Expect effective tax rate in 2021 to range from 14% to 16%(1) $1.0 (2)
Slide 19: Capital Structure and Cash Flow
Capital Structure and Cash Flow ($ in millions) Capitalization Cash Flow Three Months Ended YTD 9/30/21 12/31/20 9/30/21 9/30/20 9/30/21 Cash and cash equivalents $ 18.7 $ 10.3 Net cash provided by operating activities $ 4.3 $ 2.3 $ 8.1 Total debt - - (GAAP) Total net debt - - Capital expenditures (
Slide 20: Orders and Backlog
Orders and Backlog ($ in millions) Orders $25.2 $25.1 Continued robust demand, though trends $21.1 $17.6 $8.1 $8.6 have moderated from recent historical $14.4 $7.8 $6.5 highs $7.2 $17.2 $16.5 $13.4 • Secured new orders in targeted EV and cannabis $11.1 $7.3 markets Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 • Fo
Slide 21: Outlook and Perspective
Outlook and Perspective 5-Point Strategy Focused on further market differentiation and incremental growth and profitability Global & Strategic • Integrating newly acquired businesses Market Acquisitions & Expansion Partnerships • New product development efforts • Robust pipeline of new customer oppo
Slide 22: Investment Highlights
Investment Highlights Successful track record of identifying and integrating accretive acquisitions Established and high-value partner in Innovative Test & Process Technology Solutions Blue-chip, high-quality global customer base $ Diversified and growing end markets Attractive margin profile with s
Slide 23: Innovative Test & Process Solutions
Innovative Test & Process Solutions D.A. Davidson Semicap, Laser & Optical Conference December 15, 2021
Slide 24: Reconciliations for Non-GAAP Measures and Supplemental Slides
Reconciliations for Non-GAAP Measures and Supplemental Slides
Slide 25: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in thousands) Three Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Net earnings (GAAP) $ 2,175 $ 2,609 $ 2,212 $ (380) $ 458 Acquired intangible amortization 309 305 304 306 307 Tax adjustments (4) (4) (4) (2) (15) Adjusted net earnings (Non-GAA
Slide 26: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Three Months Ended Twelve Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 9/30/2021 12/31/2020 12/31/2019 Net earnings (GAAP) $ 2,175 $ 2,609 $ 2,212 $ (380) $ 458 $ 6,616 $ (895) $ 2,322 Acquired intangible amortization 309 305 304 306
Slide 27: Estimated Q4 2021 Adjusted EPS Reconciliation
Estimated Q4 2021 Adjusted EPS Reconciliation ($ in thousands) Low High Estimated net earnings per share – diluted (GAAP) $0.10 $0.14 Estimated acquired intangible amortization 0.04 0.04 Estimated tax adjustments - - Estimated adjusted net earnings per share – diluted (Non-GAAP) $0.14 $0.18 27
Slide 28: Thermal Segment: Growth Applications in Emerging Markets
Thermal Segment: Growth Applications in Emerging Markets Electric Vehicles Cannabis Extraction Wide-ranging induction heating solutions for heating metal and Broad chiller solutions used in THC and CBD extraction plastic parts in the manufacturing processes of electric vehicles processes where it’s
Slide 29: EMS Segment: Organic Growth through Innovation
EMS Segment: Organic Growth through Innovation 29
Slide 30: Merger & Acquisition History
Merger & Acquisition History Acculogic Videology 2021 Z-Sciences 2021 Ambrell 2017 Thermonics Sigma 2012 Systems Intelogic 2008 Tech Temptronic 2002 2000 Test Design Technology driven 1998 inTEST Founded acquisitions 1981 30
Slide 31: inTEST Organization & Markets Served
inTEST Organization & Markets Served Business Segments Brands Focus Semiconductor (Semi) | Multimarket Ambrell | Temptronic | Sigma Systems Electronic Test | Process Cooling Thermonics | EMS Products Induction Heating SEMICONDUCTOR MARKET MULTIMARKET Back-End Front-End Electronic Test Industrial Eng
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