14 slides from Lgl Group, Inc. (the)'s earnings presentation, Aug 9, 2012
Slide 1: The LGL Group, Inc. Q2 2012 Earnings Report
The LGL Group, Inc. (AMEX: LGL) Q2 2012 Earnings Report August 9, 2012 – 11:00 a.m. ET
Slide 2: Safe Harbor Statement
Safe Harbor Statement This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results ma
Slide 3: Corporate Snapshot
Corporate Snapshot Publicly traded global corporation Formed in 1917 IPO in 1946 MtronPTI subsidiary 1965 $32 million TTM annual revenue June 30, 2012 Global revenue 50% overseas $5.60 Stock price 8/3/2012 $9.89 52-week high $14.6 million market capitalization $7.9 million available cash June 30, 20
Slide 4: Investment Highlights
Investment Highlights LGL’s MtronPTI brand serves high end essential applications in diverse markets including Internet Communications Technology (ICT), Mil / Aero, and Instrumentation Balanced • High growth, ICT infrastructure driven by video, smart phones and tablet internet access Demand • Long p
Slide 5: Q2 2012 Results
Q2 2012 Results $7.6M revenues (21%) down compared to Q2 2011, but sequentially up 5.7% compared to Q1 2012 26.5% gross margin (5.3) percentage point change compared to Q2 2011 but sequentially up 4.2 percentage points compared to Q1 2012 ($0.08) loss per share; $0.15 better than Q1 2012 New orders
Slide 6: Business Cycle Factors
Business Cycle Factors Overall weak macroeconomic climate major clients and prospects sit on the sidelines delay microelectronics expense Newer technologies (ex. 4G) taking longer to coalesce further delaying orders Key competitors impacted as well believe we’ve held share; gained in some Analysts s
Slide 7: Focused investments: IEEE 1588 / SyncE
Focused investments: IEEE 1588 / SyncE $98M TAM2012 , growing at 18% CAGR to $162M2015 Source: company projection; Heavy Reading’s Ethernet Backhaul Quarterly Tracker Service, October 2011 Incoming engineering requests Near term oscillator bookings focused on high stability OCXO 4G / LTE support: Sy
Slide 8: Focused investments: tunable filter for SDR demand
Focused investments: tunable filter for SDR demand $30M TAM2012 , growing at 10% CAGR to $44M2016 Source: company projection; 2012: tunable projects start Near term filter bookings tunable growing rapidly Cavity Crystal Cavity LC LC Crystal 8 2012 Investor Presentation 8/9/2012
Slide 9: Quarterly Income Trend
Quarterly Income Trend $14.0 Quarterly Income Statement Trends 50.0% 36.3% 37.6% $12.0 34.1% 31.7% 40.0% 32.6% 31.8% 31.6% $10.0 28.0% $12.5 $12.4 27.9% $10.7 26.5% 30.0% $11.0 $9.7 22.3% $8.0 19.5% 20.6% $9.0 $9.2 18.9% $9.6 $7.6 20.0% $6.0 13.0% $7.4 $7.2 11.2% $7.3 6.4% 7.9% 6.3% 10.0% $4.0 3.5%
Slide 10: Well-positioned for growth
Well-positioned for growth Capital position strong Retained all major clients moving forward to execute on both despite decline in their overall orders organic and JV/M&A strategies Key components in major clients’ systems Added new major clients very “sticky” with high switching costs great promise
Slide 11: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Reconciliation of earnings before taxes (GAAP) to EBITDA (non-GAAP) (000's except percentages) Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Revenue $ 7,321 $ 9,201 $ 10,701 $ 12,535 $ 12,397 $ 11,023 $ 9,020 $ 9,646 $
Slide 12: Working through cycle toward growth
Working through cycle toward growth Major clients reporting market softness Repeat orders from existing contracts sluggish Starting to see modest improvement in backlog Solid working capital position Strong design backlog for engineering Semiconductor industry predicting growth in H2 12
Slide 13: Working through cycle toward growth
Working through cycle toward growth Strong capital position Experienced management team JV/M&A opportunities ~50 years experience Blue chip clients Diverse markets World–class team Quality certified, low cost worldwide manufacturing Industry leading technology, reliability, convenience, support 13
Slide 14: Question and Answer
Question and Answer Visit us: www.lglgroup.com www.mtronpti.com Contact us: Greg Anderson, President and CEO (e-mail: ganderson@lglgroup.com) LaDuane Clifton, Chief Accounting Officer (e-mail: lclifton@lglgroup.com) Voice: (407) 298-2000 14