19 slides from Lgl Group, Inc. (the)'s earnings presentation, Nov 12, 2010
Slide 1: The LGL Group, Inc.
The LGL Group, Inc. (NYSE Amex: LGL)
Slide 2: Safe Harbor Statement
Q3 2010 Earnings Report November 11, 2010 10:00 a.m. EST Safe Harbor Statement Information included in this presentation may contain forward-looking statements. Forward-looking statements are generally identifiable by use of words such as “expects,” “anticipates,” “estimates,” “believes,” or ‘intend
Slide 3: Agenda
Q3 2010 Earnings Report far) November 11, 2010 10:00 a.m. EST felRIofulP) Agenda + Q3 2010 Business Highlights + Financial Outlook Capital Structure + Strategic Growth Initiatives + 2010 Annual Meeting Question and Answer
Slide 4: Q3 2010 Business Highlights
Q3 2010 Business Highlights
Slide 5: Q3 2010 Business Highlights
Q3 2010 Business Highlights + Fourth consecutive quarter with positive earnings + Q3 2010 revenue was approximately $12.4MM, which was a 69.3% increase over Q3 2009 revenue of approximately $7.3MM + Revenue split evenly across both of our major market segments, Telecom and MISA (military, instrument
Slide 6: Q3 2010 Business Highlights
Q3 2010 Business Highlights + Strong shipments during the quarter + Short-term demand for repeat orders in the Telecom market segment were notably softer due to excess inventory levels across the supply chain + Backlog decreased to approximately $11.97MM at the end of Q3 2010 + Q3 revenues driven by
Slide 7: Outlook for Q4 2010 and Q1 2011
Q3 2010 Business Highlights (le[olulP) Outlook for Q4 2010 and Q1 2011 Backlog expected to remain healthy Major OEM customers continue to report positive earnings with modest revenue growth The semi-conductor industry, a leading indicator for the Telecom market segment, continues to project single-d
Slide 8: Financial Outlook
Financial Outlook
Slide 9: LGL Consolidated Revenue
Financial Outlook Revenue Trend $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 LGL Consolidated Revenue ($MM) 346 ‘45 ae $40 $40 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 TTM (as of Q3. 2010) Note: Revenues for 2005 through a portion of 2007 includes Lynch Systems, whose operating assets were sold in 2007
Slide 10: Quarterly Income Statement Trends
Financial Outlook Quarterly Income Statement Trends (8s in O00's, except margin %) 14,000 20.0 36.3% 5. a0 12000 ee 40.0% 25.7% 25.6% Uo 40.000 {289% 2°: i ee ee 30.0% ++ 2° 198% 195% Sf 1Bov% 8,000 pier} t 20.0% 6,000 8% Le Oe 22% 18%o drt _| 4,000 | ms 0.0% st oO 3 5 2,000 + |& iS a 8 8 Bl [10.0%
Slide 11: Order Backlog
Financial Outlook Order Backlog (000's at quarter end) 16,000 14,000 12,000 10,000 8,000 5 5 & 5 e 6.000 : 2 a . s : 4,000 Jy 2 ° 2,000 +} | 0 Q4 2008 §=6Q1 2008 «G2 2009 G3. 2009S 4 2008S Q1 2010 §=92 2010 §=43. 2010 + Consecutive quarters of strong shipments moderated the order backlog. + The decr
Slide 12: Capital Structure
(sete Capital Structure
Slide 13: Capital Position as of September 30, 2010
Capital Structure Capital Position as of September 30, 2010 Total Assets: $ 19.9 million Net Working Capital: $ 10.9 million Cash and ST Investments: $ 2.3 million Long Term Debt (including current portion): $ 0.7 million Shareholders’ Equity: $ 14.4 million Available Line of Credit: $ 4.0 million T
Slide 14: Improving Capital Structure
Capital Structure Improving Capital Structure We seek to further improve our operating flexibility through improved financials, balance sheet and operating ratios + Our ability to generate free cashflow is improving + Company repaid its $2.3MM term loan with RBC Bank on 9/30/2010 « Ability to comply
Slide 15: Strategic Growth Initiatives
Strategic Growth Initiatives
Slide 16: Four Pillars of Growth
Strategy Initiatives Four Pillars of Growth 1. Invest organically into core business + R&D investments to leverage opportunities with existing customers and maximize our positions + Incremental capacity investments + R&D investments into products that are higher in the value chain, such as modules a
Slide 17: 2010 Annual Meeting
2010 Annual Meeting “a chance to meet with time for your questions”
Slide 18: 2010 Annual Meeting of Stockholders
2010 Annual Meeting of Stockholders Invitation Stockholders of record as of October 18, 2010, are cordially invited to attend the Company’s 2010 Annual Meeting of Stockholders. When: Wednesday, December 15, 2010, 9:00 a.m. EST Where: Union League Club 38 East 37" Street New York, NY 10016 Topics: -
Slide 19: Question and Answer
Question and Answer Visit us: www.lgigroup.com www.mtronpti.com Contact us: Greg Anderson, President and CEO (E-mail: ganderson@Iglgroup.com) R. LaDuane Clifton, Chief Accounting Officer (E-mail: Iclifton@lglgroup.com) Voice: (407) 298-2000 -19-