Slide 1: Second Quarter 2024 Earnings Results
Second Quarter 2024 Earnings Results Thursday, August 8, 2024 NYSE American: BKTI
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement This presentation contains certain forward-looking statements that are made pursuant to the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern the Company’s operations, economic performance, and financial
Slide 3: Second Quarter 2024 Highlights
3 Second Quarter 2024 Highlights Significantly Improved Ongoing Transition of Growing Interest in BKR 9000 Profitability and Enhanced Gross Among Existing Customer Base Manufacturing to East West Margins • Fourth consecutive quarter of • Fully transferred KNG mobile • Existing customers continue to
Slide 4: Incrementally Improving Gross Margin
4 Incrementally Improving Gross Margin Global Supply Chain Margin Recover/ Surpassing Target Margin Disruption Cost Reduction Levels of 35% 2022 (GM 19.3%) 2023 (GM 30%) 2024 40.0% 37.3% 35.1% 34.5% 35.0% 31.9% 27.4% 30.0% 26.1% 25.0% 22.4% 21.7% 18.8% 20.0% 14.2% 15.0% 10.0% 5.0% 0.0% Q1 Q2 Q3 Q4 Q
Slide 5: Cost Reduction Initiatives and Shifting Product Mix Driving Enhanced Revenue and Profitability
5 Cost Reduction Initiatives and Shifting Product Mix Driving Enhanced Revenue and Profitability Quarterly Revenue and Earnings Per Share $ in millions 25 $0.60 $0.50 • Net income of $1.7 million and EPS of $0.47; 20 $0.40 compared to a loss of $1.3 million in 2Q23 $0.30 15 $0.20 • Four consecutive
Slide 6: Strong Order Activity For BKR 5000 and BKR 9000 Driven by Increasing Wildland Fire Activity
6 Strong Order Activity For BKR 5000 and BKR 9000 Driven by Increasing Wildland Fire Activity BKR 5000 orders in 2Q24 include: “In 1993, the federal • California Department of Forestry and Fire government fought wildfires on Protection (CAL FIRE) nearly 1,800,000 acres of land; • Bureau of Land Mana
Slide 7: Transition to East West Manufacturing Underway
7 Transition to East West Manufacturing Underway Fully transferred KNG Transfer team of BK mobile radio and EW employees Phase 2 of staff manufacturing moving production of reduction completed responsibilities to East BKR 9000 radios to West location in East West by end of Juarez, Mexico Q3 Transiti
Slide 8: 2Q24 Financial Results
8 2Q24 Financial Results Income Statement Three Months Ended Six Months Ended (in thousands) 6/30/24 6/30/23 6/30/24 6/30/23 Sales $20,254 $18,996 $38,485 $37,717 Gross Margin 37.3% 27.4% 35.9% 26.8% SG&A $5,522 $5,988 $10,827 $11,869 Operating Income (loss) $2,025 $(784) $3,008 $(1,771) Net Income
Slide 9: 2024 Full Year Targets Remain on Track
9 2024 Full Year Targets Remain on Track Revenue Consistent with 2023 • BKR 5000 demand and increased adoption of BKR 9000 driving consistent revenues • Continue to establish market for BKR 9000 and lay groundwork for growth in 2025 Improving Gross Margins • Margin profile continues to improve relat
Slide 10: Q&A
10 Q&A 2Q24 Earnings Presentation / NYSE American: BKTI
Slide 11: Appendix
11 Appendix 1Q24 Earnings Presentation / NYSE American: BKTI
Slide 12: Reconciliation of Non-GAAP Metrics
12 Reconciliation of Non-GAAP Metrics Three Months Ended Six Months Ended Non-GAAP Adjusted EBITDA (in thousands) 6/30/24 6/30/23 6/30/24 6/30/23 Net Income/(Loss) $1,664 $(1,340) $2,345 $(2,610) Adjustments to reconcile net income/(loss) to EBITDA Interest expense, net 106 155 280 298 Income tax pr
Slide 13: BK Technologies
TECHNOLOGIES —_—