Intest Corporation · AMEX:INTT
Intest — Dougherty & Company 2019 Institutional Investor Conference
27 slides from Intest's conference presentation, Sep 5, 2019
Slide 1: We're Not Just Semi… We Make Things HOT and COLD Where It Matters
We’re Not Just Semi… We Make Things HOT and COLD Where It Matters James Pelrin Hugh T. Regan President and CEO Treasurer and CFO September 5, 2019 Dougherty & Company 2019 Institutional Investor Conference
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. These statements are based on management's current expectations and beliefs and are subject to a number
Slide 3: Enabling Technology to Multiple Markets
Enabling Technology to Multiple Markets Global supplier precision-engineered solutions (manufacturing/test) – wide range of industries: Automotive, Defense/Aerospace, Energy, Industrial, Semi, Telecommunications Solve difficult thermal, mechanical and electronic challenges for customers worldwide Te
Slide 4: inTEST at a Glance
inTEST at a Glance 2018 Performance Orders Revenue Gross Margin Adj. EBITDA $78.2M $78.6M 50% $13.8M Previous year Previous year Previous year Previous year $69.0M $66.8M 52% $13.6M EPS GAAP EPS Non-GAAP Cash from Ops Employees $0.29 $1.06 $11.0M 226 Previous year $0.09 Previous year $0.88 Previous
Slide 5: Investment Thesis: Long-Term Growth
Investment Thesis: Long-Term Growth Organic Growth Through Innovative Technologies • Expansion from Back-End Test to Front-End Semi (CVD and Crystal Growth) • Expanded Process Chillers offering to the chemical extraction market • Custom products for aerospace test Strategic Acquisitions / Expand Mul
Slide 6: Strategic Acquisition Criteria
Strategic Acquisition Criteria Technical fit with thermal strategy Multi-Market product for further diversification Revenue Size: $10M - $50M Growth potential Operational synergies 6
Slide 7: Long-Term Solid Results
Long-Term Solid Results Semi vs Multi Markets Market Cap and $M $M Enterprise Value 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Semi Multi Markets Market Cap E.V. 7
Slide 8: Maximize Businesses: Optimized and Revitalized EMS
Maximize Businesses Optimized and Revitalized EMS $M Revenue 25 20 15 2016 Optimization 10 • Rationalized core product lines • Cost-down/repriced 5 manipulator line 0 • Streamlined manufacturing 2014 2015 2016 2017 2018 $M Adj. EBITDA 6 2 -2 2014 2015 2016 2017 2018 8
Slide 9: Operational Excellence: Ambrell Acquisition
Operational Excellence Ambrell Acquisition Run-Rate at Acquisition – 2018 124% $5.1M Acquired May 2017 • Streamlined manufacturing • Corrected on-time delivery 31% • Relocated to hi-efficiency facility $26.5M $20.2M $2.3M Net Revenue Adjusted EBITDA 9
Slide 10: Thermal Segment
Thermal Segment Brands Products Application Induction Manufacturing Heating Process We make things HOT We make things COLD… Semi Test and Chillers Manufacturing Process 10
Slide 11: Thermal Segment
Thermal Segment Brands Products Application Thermo Semi and Stream™ Non-Semi Test We make things HOT and COLD Chambers Non-Semi Test and Plates 11
Slide 12: EMS Segment – inTEST's Foundation
EMS Segment – inTEST’s Foundation Products Application Test Providing high integrity signal path Interfaces between DUT and tester Improves accuracy and integrity of Docking test results and protects delicate test Systems interface components Ease of positioning test heads for any test application,
Slide 13: Serving Diverse Applications
Serving Diverse Applications Hardware to interface with testers to develop and test Semiconductors Critical temperature testing to ensure reliability of infotainment electronics Thermal equipment delivers focused heating for forging and joining metals in manufacturing Ultra-low temperatures provide
Slide 14: Top Customers: 38% of Sales
Top 10 Customers: 38% of Sales Semi Non-Semi 14
Slide 15: Blue-Chip Customer Base
15 Blue-Chip Customer Base : INSTRUMENTS SONY T = 5 L mq aos «= [Qs SIEMENS i> DELPHI WD TOSHIBA TOYOTA Sy Google BOEING tid KOHLER. TERADYNE ff intel) inTEST
Slide 16: Financial Overview
Financial Overview 16
Slide 17: Operating Model
Operating Model 2015 2016 2017 2018 2019 YTD Gross Margin 48% 51% 52% 50% 48% SG&A 31%a 31%a 30%a 29% 37%a Eng. & Prod. 10% 9% 6% 6% 8% Development Operating 7%b 11%b 17%bc 15%c 3%b Margin Adj. EBITDA 9% 12% 19% 18% 6% a. Includes due diligence and other acquisition related expenses: 2015 - $329K; 2
Slide 18: Recent Financial Results
Recent Financial Results Orders Net Revenues $22 $22 $20 $20 $18 $18 $16 $16 $14 $14 $12 $12 $10 $10 Q3 18 Q4 18 Q1 19 Q2 19 Q3 18 Q4 18 Q1 19 Q2 19 $0.30 Adjusted Net EPS Adjusted EBITDA $5 $0.20 $4 $3 $0.10 $2 $1 $0.00 $0 Q3 18 Q4 18 Q1 19 Q2 19 Q3 18 Q4 18 Q1 19 Q2 19 18
Slide 19: Balance Sheet Highlights
Balance Sheet Highlights As of 06/30/2019 Cash and Cash Equivalents $7.6M Working Capital $15.4M Total Assets $60.8M Long-Term Debt 0 Shareholder Equity $44.2M 19
Slide 20: Q3 2019 Guidance
Q3 2019 Guidance Net Revenue $14.5M to $15.5M GAAP Net Earnings $0.02 to $0.06 diluted EPS Gross Margin 46% to 49% Up slightly compared to Q3 Q4 2019 2019 guidance “Beginning this quarter, we are referring to our business somewhat differently in order to more crisply define our historical roots in s
Slide 21: We're Not Just Semi… We Make Things Hot and Cold Where it Matters
We’re Not Just Semi… We Make Things Hot and Cold Where it Matters Organic Growth Through Innovative Technologies • Expansion into Front-End Semi (CVD and Crystal Growth) • Expanded Process Chillers offering to the chemical extraction market • Custom products for aerospace test Strategic Acquisitions
Slide 22: Investor Contacts
Investor Contacts inTEST Corporation Guerrant Associates Hugh T. Regan Laura Guerrant-Oiye Treasurer and CFO (808) 960-2642 h.regan.jr@intest.com lguerrant@guerrantir.com 22
Slide 23: Reconciliations for Non-GAAP Measures
Reconciliations for Non-GAAP Measures
Slide 24: Reconciliations for Non-GAAP Measures
Reconciliations for Non-GAAP Measures (Dollars in Thousands, except per share) Six Months Consolidated Adjusted EBITDA Years Ending December 31, Ended 2014 2015 2016 2017 2018 6/30/2019 Net income (GAAP) 3,439 1,861 2,658 975 3,037 951 Add back: Interest expense (4) (27) 0 2 0 Income tax expense 1,4
Slide 25: Reconciliations for Non-GAAP Measures
Reconciliations for Non-GAAP Measures (Dollars in Thousands, except per share) Consolidated Adjusted Net Earnings Years Ending December 31 Quarters Ending 2017 2018 9/30/2018 12/31/2018 3/31/2019 6/30/2019 Net income (loss) (GAAP) 975 3,037 (566) (792) 1,138 (187) Add back: 1,161 1,103 323 317 317 3
Slide 26: Reconciliations for Non-GAAP Measures
Reconciliations for Non-GAAP Measures (Dollars in Thousands, except per share) EMS Adjusted EBITDA Years Ending December 31 Year Ended Year Ended Ambrell Adjusted EBITDA May 24, 2017 Dec 31, 2018 2014 2015 2016 2017 2018 Net income (loss) (GAAP) 796 (1,170) 1,021 6,869 5,416 Net income (loss) (GAAP)
Slide 27: Slide 27
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