Slide 1: Q1 2022 Financial Results Conference Call
inTEST Corporation Q1 2022 Financial Results Conference Call Nick Grant, President and CEO Duncan Gilmour, CFO May 6, 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: Q1 2022: Advancing 5-Point Strategy
Q1 2022: Advancing 5-Point Strategy 5-Point Strategy ➢ Acquisitions and innovative solutions drove 23% y/y revenue growth ▪ Delivered revenue and earnings in line with guidance ▪ Acquisitions contributed $4.0 million in revenue ▪ Organic growth of $0.5 million reflected growing presence in automotiv
Slide 4: Revenue
Revenue ($ 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 $19.6 ➢ All Markets improved y/y ▪ Solid demand in automotive, especially EV, and industrials drove organic growth Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 ▪ Expansion in life s
Slide 5: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Quarters $11.0 $11.0 ➢ Q1 gross profit increased $1.5 million y/y $10.4 $10.3 $9.5 ▪ Margin contraction vs. prior-year period reflected less favorable product mix, specifically back-end semi test solutions, as well as supply chain constraints and inflation 48.
Slide 6: Operating Expenses
Operating Expenses Investing in people and marketing to support 5-Point Strategy for Growth ($ 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 $1
Slide 7: Earnings and Adjusted EBITDA
Earnings and Adjusted EBITDA ($ 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 $1.4 EPS and Adjusted EPS(1) 16.9% 18.3% 16.0
Slide 8: Capital Structure and Cash Flow
Capital Structure and Cash Flow ($ in millions) Capitalization Year Cash Flow Three Months Ended 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 Total debt $ 19.2 $ 20.1 (used in) operating $ (2.7) $ (0.3) $ 10.8 activities (GAAP) Total ne
Slide 9: 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 $2.6 million driven by EV • Includes induction heating and new battery test solutions ▪ Industrial demand for environ
Slide 10: Reaffirming Outlook for 2022
Reaffirming Outlook for 2022 ➢ Focused on driving growth and expanding markets & customer base 5-Point Strategy ▪ Integrating acquisitions and extending market reach ▪ Adding technical expertise and driving innovation ▪ Solving customers’ complex problems Global & Innovation & ➢ 2022 Outlook & Q2 Gu
Slide 11: Strategic Plan Focused on Long-Term Revenue Growth
Strategic Plan Focused on Long-Term Revenue Growth ($ in millions) ~$200 to $250 Future Acquisitions ~$110 to $115 $85 $54 ∕∕ 2020 2021 2022E 2025E 11
Slide 12: Operating Leverage Drives Profitability
Operating Leverage Drives Profitability ($ 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 13: Key Takeaways
Key Takeaways 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 2025 revenue of $200M
Slide 14: Conference Call Playback Info / Upcoming Events
Conference Call Playback Info ➢ Replay Number: (412) 317-6671 passcode: 13728796 ➢ Telephone replay available through May 13, 2022 ➢ Webcast / Presentation / Replay available at ir.intest.com ➢ Transcript, when available, at ir.intest.com Upcoming Events ➢ Sidoti Virtual Micro Cap Conference on May
Slide 15: Adjusted Net Earnings Reconciliation
Adjusted Net Earnings Reconciliation ($ in thousands) Three Months Ended 3/31/2022 3/31/2021 12/31/2021 Net earnings (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 average sha
Slide 16: 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 (loss) (GAAP) $ 577 $ 287 $ 2,175 $ 2,609 $ 2,212 $ 5,648 $ 7,283 $ (895) $ 2,322 Acquired intangible amortization 782 522 3
Slide 17: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Estimated Q2 2022 Guidance 17
Slide 18: 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
Slide 19: Q1 2022 Financial Results
Q1 2022 Financial Results Conference Call Presentation May 6, 2022