Slide 1: 3rd Quarter 2024 Earnings Release Supplemental Information
10.24.24 3rd Quarter 2024 Earnings Release Supplemental Information
Slide 2: Safe Harbor
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 performa
Slide 3: Q3 2024 Year-Over-Year
Q3 2024 YEAR-OVER-YEAR Third Quarter Revenue Non-GAAP Diluted EPS* Net Cash Provided by ($M) ($) Operating Activities Results at or above ($M) expectations 142.5 0.26 52.8 • Revenue is at the high end of our guided range, growing 32% driven by Cornell and 108.1 0.20 39.9 4% by organic growth. • Non-
Slide 4: Q3 2024 Segment Performance: MedTech & Specialty Audio
Q3 2024 SEGMENT PERFORMANCE Revenue Adjusted EBITDA Margin* ($M) (%) MedTech & Specialty Audio 43.5 44.1 63.7 • Revenue grew 10% year over year on higher 57.9 demand in both hearing health and specialty audio. • Adjusted EBITDA margins improved 60 bps driven +60 by operating leverage. +10.0% bps • O
Slide 5: Q3 2024 Segment Performance: Precision Devices
Q3 2024 SEGMENT PERFORMANCE Revenue Adjusted EBITDA Margin* ($M) (%) 23.7 23.1 Precision Devices 78.8 • Revenue grew 57% year over year driven by the acquisition of Cornell. • Adjusted EBITDA margins improved 60 bps driven 50.2 by operating leverage. +60 • A strong pipeline of new opportunities posi
Slide 6: Q3 2024 Performance
Q3 2024 PERFORMANCE High reliability. 24.6% High performance. Adjusted EBITDA Margin* High margins. ◦ The sale of the Consumer MEMS Microphone business is an important step in our evolution to a leading industrial technology company. 45.5% Non-GAAP Gross Profit ◦ Our continuing operations quarterly
Slide 7: Outlook
OUTLOOK Q4 2024 Guidance GAAP Adjustments Non-GAAP Revenues from continuing operations $141 to $151 million $— $141 to $151 million Diluted earnings per share from $0.12 to $0.16 $0.14 $0.26 to $0.30 continuing operations Net cash provided by operating activities $30 to $40 million $— $30 to $40 mil
Slide 8: Appendix
« knowles Appendix
Slide 9: Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES Quarter Ended September 30, (continuing operations, in millions, except per share amounts) 2024 2023 Notes Revenues $ 142.5 $ 108.1 1. Production transfer costs represent duplicate costs incurred to migrate Gross profit $ 62.9
Slide 10: Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES Quarter Ended September 30, (continuing operations, in millions, except per share amounts) 2024 2023 Notes Net earnings $ 9.2 $ 15.2 4. The non-GAAP reconciling adjustments are those adjustments made to reconcile Interest expen
Slide 11: Historical Segment Data
HISTORICAL SEGMENT DATA PRECISION DEVICES MEDTECH & SPECIALTY AUDIO Quarter Ended Quarter Ended September 30, June 30, March 31, December 31, September 30, September 30, June 30, March 31, December 31, September 30, (continuing operations, in millions) 2024 2024 2024 2023 2023 2024 2024 2024 2023 20
Slide 12: Historical Segment Data
HISTORICAL SEGMENT DATA PRECISION DEVICES MEDTECH & SPECIALTY AUDIO Quarter Ended Quarter Ended September 30, June 30, March 31, December 31, September 30, September 30, June 30, March 31, December 31, September 30, (continuing operations, in millions) 2024 2024 2024 2023 2023 2024 2024 2024 2023 20
Slide 13: Reconciliation of Segment EBIT to Consolidated Net Earnings
RECONCILIATION OF SEGMENT EBIT TO CONSOLIDATED NET EARNINGS Quarter Ended September 30, June 30, March 31, December 31, September 30, (Continuing operations, in millions) 2024 2024 2024 2023 2023 Earnings (loss) before interest and income taxes Precision Devices $ 8.4 $ 4.2 $ (2.1) $ 3.4 $ 6.1 MedTe
Slide 14: Adjusted EBITDA Reconciliation
Quarter Ended September 30, June 30, March 31, December 31, Trailing (Continuing operations, in millions) 2024 2024 2024 2023 12-months Net earnings (loss) $ 9.2 $ 4.8 $ (1.0) $ 26.6 $ 39.6 Interest expense, net 3.9 4.6 4.4 3.2 16.1 Provision for (benefit from) income taxes 3.0 3.0 2.0 (18.7) (10.7)
Slide 15: Reconciliation of Net Debt
RECONCILIATION OF NET DEBT (in millions) September 30, 2024 Current maturities of long-term debt $ 49.5 Long-term debt 175.5 Total debt 225.0 Less: Cash and cash equivalents (92.6) Net debt $ 132.4 Net debt $ 132.4 Trailing 12 Month Adjusted EBITDA $ 127.5 Net debt leverage ratio 1.0 x 15
Slide 16: Thank you.
Thank you. « knowles