Slide 1: inTEST Corporation – EF Hutton Global Conference
inTEST Corporation EF Hutton Global Conference Nick Grant Duncan Gilmour President and CEO Chief Financial Officer May 10, 2023
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: Unlocking The Potential
Unlocking The Potential Vision To be the supplier of choice for innovative test and process technology solutions Leverage our deep industry knowledge & expertise to develop and deliver high quality, Mission innovative customer solutions and superior support for complex global challenges Nick Grant,
Slide 4: Transforming inTEST
Transforming inTEST Supplier of Choice for Innovative Test and Process Technology Solutions Robust long-term growth strategy Emphasis on diversified growth markets Electronic and acquisitions Test 34% Process 2022 Technologies Clear, consistent, continuous investor and Revenue 40% employee communica
Slide 5: 5-Point Strategy Drives Long-Term Value
5-Point Strategy Drives Long-Term Value ➢ Grow Top-Line Through Geographic ➢ Drive Innovation and and Market Expansion Technological Differentiation ▪ Further penetrate existing markets with Global & ▪ Leverage expertise to deliver highly-valued Innovation & infrastructure investments Market Differe
Slide 6: Strong Foundation For Growth
Strong Foundation For Growth inTEST: Known for Highly-Engineered, Customer-Driven Solutions Growing and Diversified Markets Blue-Chip Global Customer Global Presence Blue-Chip Global Customer Base Base ➢ Semiconductor ➢ 2022 Revenue: $116.8M ➢ Industrial ▪ 35.1% APAC ➢ Automotive/EV ▪ 45.1% Americas
Slide 7: Serving Large and Diverse Markets
Serving Large and Diverse Markets ($ in millions) inTEST $2.0B+ SAM* Entering 2022 Electronic Environmental Process Test Technologies Technologies ~$350M ~$680M ~$1.3B+ Serviceable Addressable Markets (SAM) $150 $200 $180 $500 $310 $1B+ Semi Test In-Circuit Test Thermal Test Cold Chain Induction Ima
Slide 8: Driving Market Leadership/Opportunities
Driving Market Leadership/Opportunities Targeting markets with strong, secular tailwinds inTEST Revenue by Market* Expected 5-Year Markets Market Growth** Served 3% to 6% Semi Markets Industrial 3% to 6% Defense/Aero 3% to 6% 2021 2022 2025E Targeted Growth Markets Auto/EV 5% to 8% Life Science 6% t
Slide 9: Electronic Test
Electronic Test Engineering solutions for the toughest challenges in automated test ➢ Growth drivers: semi mixed signal/analog focused and strength in EV market; expanded presence in defense and life sciences ➢ Markets: Back-end Semi Test, Industrial, Auto/EV, Life Sciences and Defense/Aero ➢ Bringi
Slide 10: Environmental Technologies
Environmental Technologies Creating and controlling environmental conditions in test, process and storage applications ➢ Growth drivers: strong position in Back-end Semi Test/R&D, increasing demand in defense and life sciences ▪ Life Sciences cold chain solutions serves vaccine storage/transportatio
Slide 11: Process Technologies
Process Technologies Technical expertise and customized solutions for industrial applications ➢ Growth drivers: solutions for silicon carbide crystal growth, automotive/EV manufacturing, security and life sciences driving significant demand for induction heating and imaging solutions ➢ Addressable m
Slide 12: Making M&A a Core Competency
Making M&A a Core Competency Completed three acquisitions (4th Quarter 2021) M&A Eco-System Disciplined M&A Process Acquire quality businesses to drive shareholder value Expand into fast growing markets Offer broader portfolio of solutions Strategy M&A Development Execution Drive further market dive
Slide 13: Financial Overview
Financial Overview 13
Slide 14: Revenue
Revenue ($ in millions) $32.4 $31.9 $29.6 $30.8 ➢ Q1 revenue of $31.9 million, up $7.8 million, or $24.1 32.5% y/y ➢ Strong demand across most markets and technology offerings ▪ Silicon carbide (SiC) crystal growth and epitaxy Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 applications drove semi sales up 32.1% ➢ De
Slide 15: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Quarters $15.0 $15.1 ➢ Q1 margin of 47.2% improved 150 bp y/y and $13.5 $13.9 100 bp sequentially $11.0 ▪ Q1 margin y/y reflects higher volume, better product mix and improved pricing 45.7% 45.8% 45.2% 46.2% 47.2% ➢ Q1 gross profit increased $4.0 million, or 3
Slide 16: Operating Expenses
Operating Expenses Investing in people and marketing to support 5-Point Strategy for Growth ($ in millions) Operating expenses as a % of sales ➢ As percent of revenue, operating expenses 42.4% 36.6% 34.9% 33.8% 36.1% declined to 36.1% in Q1 2023 versus 42.4% in the prior year $11.5 $10.8 $10.7 $10.9
Slide 17: Earnings and Adjusted EBITDA
Earnings and Adjusted EBITDA ($ in millions, except per share data) Net Earnings and Adjusted EBITDA / (1) EPS and Adjusted EPS (Non-GAAP) Adjusted EBITDA Margin (Non-GAAP)(1) $0.34 Quarters $5.3 $0.30 $0.29 $4.8 $0.28 $4.5 $0.25 $4.2 $0.25 $0.23 $3.2 $0.20 $2.8 $2.5 $2.1 $2.1 $0.12 $0.6 $0.05 8.9%
Slide 18: Capital Structure and Cash Flow
Capital Structure and Cash Flow ($ in millions) Capitalization Year Cash Flow Three Months Ended Ended 3/31/23 12/31/22 3/31/23 3/31/22 12/31/22 Cash and cash equivalents $ 15.4 $ 13.4 Net cash provided by Restricted cash $ 0.5 $ 1.1 (used in) operating $ 2.5 $ (2.8) $ (1.4) activities Total debt $
Slide 19: Orders and Backlog
Orders and Backlog ($ in millions) Orders $40.5 $32.7 ➢ Q1 orders up 23.0% y/y with increases across most $31.3 $30.8 $25.1 markets ➢ Sequentially, orders down modestly 1.6% ▪ Strength in orders from both front-end and back-end semi, automotive/EV and industrial Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 ▪ Offse
Slide 20: Updated Outlook for 2023
Updated Outlook for 2023 ➢ Second Quarter Outlook(1) ▪ Q2 revenue: $31 million to $33 million 5-Point Strategy ▪ Q2 gross margin: ~46% ▪ Q2 operating expenses: $11.4 million to $11.7 million • Q2 amortization (after tax) ~$450,000 Global & Innovation & ▪ Q2 interest expense: ~$190,000 Market Differe
Slide 21: Executing to Plan
Executing to Plan ($ in millions) ~$200 to $250 Potential Future Acquisitions $125 - $130 $117 $85 $54 ∕∕ 2020 2021 2022 2023E 2025E Actual Revenue Estimated Revenue(1) (1) Estimated 2025 revenue, including estimated revenue from future potential acquisitions, is based on management’s current views
Slide 22: Driving Scale to Deliver Growth in Earnings
Driving Scale to Deliver Growth in Earnings ($ in millions) Division Operating Income(1) Adjusted EBITDA(2) Net Earnings ~ $40 + ~ $30 + $22 ~ $20 + $19 $16 $12 $8 $7 22% 19% ~20% 14% 14% ~15% 9% 7% ~10% ∕∕ ∕∕ ∕∕ 2021 2022 2025E (3) 2021 2022 2025E (3) 2021 2022 2025E(3) (1) See segment reporting in
Slide 23: Execution on Track with Plan
Execution on Track with Plan Strong demand for inTEST’s innovative technologies and engineering expertise Diversified end markets with strong secular growth drivers Growing customer base, deepening customer reach and expanding geographically Financial flexibility to execute growth strategy Executing
Slide 24: Supplemental Information
inTEST Corporation EF Hutton Global Conference Supplemental Information May 10, 2023
Slide 25: Reconciliation of Net Earnings to Adjusted Net Earnings and EPS
Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) and Earnings Per Share – Diluted to Adjusted Earnings Per Share – Diluted (Non-GAAP) ($ in thousands, except per share amounts) Three Months Ended Years Ended 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 12/31/2021 12/31/2022 N
Slide 26: Reconciliation of Net Earnings to Adjusted EBITDA (Quarterly)
Reconciliation of Net Earnings to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP) ($ in thousands) Three Months Ended 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 Net earnings $ 577 $ 2,116 $ 2,524 $ 3,244 $ 2,817 Acquired intangible amortization 782 765 595 552 544 Interest e
Slide 27: Reconciliation of Net Earnings to Adjusted EBITDA (Annual)
Reconciliation of Net Earnings to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP) ($ in thousands) Years Ended December 31, 2019 2020 2021 2022 Net earnings (loss) $ 2,322 $ (895) $ 7,283 $ 8,461 Acquired intangible amortization 1,257 1,233 1,440 2,694 Interest expense - 33 89 600 I
Slide 28: Reconciliation of Second Quarter 2023 Estimated EPS
Reconciliation of Second Quarter 2023 Estimated Earnings Per Share – Diluted to Estimated Adjusted Earnings Per Share – Diluted (Non-GAAP) Low High Estimated earnings per share – diluted $ 0.21 $ 0.26 Estimated acquired intangible amortization 0.05 0.05 Estimated tax adjustments (0.01) (0.01) Estima
Slide 29: Segment Reporting
Segment Reporting ($ in thousands) Quarter Ended Year Ended 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 12/31/2021 12/31/2022 Electronic Test $ 8,778 $ 9,797 $ 10,408 $ 11,236 $ 10,371 $ 32,509 $ 40,219 Environmental Technologies 6,993 7,507 7,631 8,041 8,042 26,896 30,172 Process Technologie