Rf Industries, Ltd. · NASDAQ:RFIL
Rf Industries — Investor Presentation (March 2021)
33 slides from Rf Industries's investor presentation, Mar 16, 2021
Slide 1: Leading Designer and Manufacturer of Interconnect Products
Leading Designer and Manufacturer “a of Interconnect Products
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-looking statements contained in this presentation involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially and adversely from those expressed or implied by such forward-looki
Slide 3: Executive Team
Executive Team iif Robert Dawson President and CEO = Joined: July 2017 = Added to Board: July 2018 Prior Industry Ex j 2014-2016 President and CEO, Vision Technology Services 2007 - 2013 TESSCO Technologies, VP of Sales 2000 - 2007 NetForce Solutions (acquired by TESCO) Peter Yin Senior Vice Preside
Slide 4: Company Summary
Company Summary j® Nasdaq: RFIL San Diego, CA 5 production locations (3 Northeast, 2 Southwest) Corning Gold, ISO 9001: 2015 Certified Founded 1979 IPO 1984 Employees 300 Distribution 4,000 —5,000 OEM 450+ C Enterprises — March 2019 ‘Schroff Technologies — November 2019 Fsntnies 39/21 Stock Price $5
Slide 5: Product Offering — Interconnect
Product Offering — Interconnect IT | Design, engineer, manufacture interconnect products Coaxial Cable Fiber Optic Cable FTA Cable Wincil Assemblies Assemblies nernes iring Harnesses E. Mi, ~~ @ ro) /, ZA | Pa Ol CQO Re: Conta RF Coaxial Adapters Connectors Low PIM Products Passive Components oom Se
Slide 6: Product Offering - Integrated Systems
Product Offering - Integrated Systems Design, engineer, manufacture integrated small cell shrouds and thermal cooling solutions Direct Ambient Cooling (DAC) + Industry Leading fresh air, fan based cooling systems + Decrease Base Station cabinet & remote equipment shelter Air Conditioning (AC) operat
Slide 7: Interconnect Opportunities
cursors ne Cour, Interconnect Opportunities
Slide 8: Our Products Help Make Wireless Work
Our Products Help Make Wireless Work Cell Tower Site Materials Design, Engineer and Build Hybrid Fiber & Power Cables for 4G and 5G Network Deployment Small Cells Cable assemblies and components for, small cell applications to support densification of 4G and 5G Networks. Distributed Antenna Systems
Slide 9: ... And Enable Many Industrial Applications
... And Enable Many Industrial Applications iT Advanced Oilfield Technology Build control wiring for drilling equipment Aerospace Build & test control stick wiring for flight control stick for military helicopters Transportation Transit doors and gates - designed for light and heavy rail application
Slide 10: Large and Growing Market Opportunities
ge and Growing Market Opportunities IT | c ~ Global Connector Market = $80.4B by 2023, N.A. Cable Assembly Market = $33.48, ) “SG will transform vo industries and should be viewed as a business 1” [ : ( ae ee strategy for al cro Call - Steve Mollenkopf, CEO, Qualcomm r 5G Build-Out Spend = $130B in
Slide 11: Sales Model and Go-To-Market
Sales Model and Go-To-Market | Distribution — 60% Biggest opportunities are in distribution centric markets (force multiplier) * Access to thousands of customers * NoA/R collection issues (99% of sales are in US and Canada) * Limited inventory obsolescence issues * Focus on what we do best eoleeeere
Slide 12: Market Influence and Sales Approach
Market Influence and Sales Approach IT | Influence v Products Channel End Customer <a | Key > () Distributors RES —s « Carriers \-] Cabinet OEMs <a ee ! —__—-. Neutral Hosts Integrators = _ baag G2) =
Slide 13: Distribution Partners & Sample OEM Customers
Distribution Partners & Sample OEM customers} ff tessco ANIXIE? GrayhaR Accu ‘lech Were Known by the Companies We Keep LUANCE y /CORPORATION) THE POWER OF BEING CONNECTED. & EMERSON. STANLEY. Access Technologies Sealed Air) , HOLOGIC’ =|
Slide 14: Competitive Landscape
Competitive Landscape IT | Large Competitors Small Competitors Multinational with ‘ Local/R l Broad Offering foe ocal/Regions I Our Value Proposition and Differentiation Fast — Faster lead times than larger competitors Flexible —- Customized product options (can’t buy off the shelf) High Quality — H
Slide 15: Annual Financial Performance
Annual Financial Performance (ended Oct. 3)/ ff Revenue (in millions) 2016 2017 2018 2019 2020 Net Income (in mitions) ($4.1) $0.4 ia ($0.1) amen 2017 2018 2019 2020 Diluted EPS from Net Income ($0.46) $0.04 ($0.01) 2017 2018 2019 2020 *Graphs are annual and do not include current fiscal year-to-dat
Slide 16: Quarterly Revenue Trend
Quarterly Revenue Trend Revenue {in millions) ai a2 3 Q4 Qi Q2 a3 af ai a2 a3 Qs qi gz gs a4 a 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021
Slide 17: Q1 Financial Performance
Qi Financial Performance Revenue (in millions) 2018 2019 2020 2021 Net Income (in thousands) $26 ($403) 2018 2019 2020 $0.05 2018 Diluted EPS $0.07 $0.00 2019 2020 (0.04) DAQ: RFIL
Slide 18: Balance Sheet Supports Growth
Balance Sheet Supports Grow IT | Oct. 35 $ in millions Cash Total Assets Stockholders’ Equity Total Debt jan. 31, 2021 Cash Balances (in millions) $12.5 $15.8 $15.5 $37.7 $40.8 $40.6 SeHLS $32.0 $32.1 $o $2.8* $2.8* 2017 2018 2019 2020 Qi 2021 *Debt is from PPP Loans that have been forgiven as of Ma
Slide 19: Long-Term Growth Strategy
Long-Term Growth Strategy = Organic » Run rate business = Core fast-turn production = 10-15% annual growth goal © Project business transitioning to long-term relationships = Get our product spec’d in customer projects and included on customer BOMs = Deliver a quality solution where others cannot = C
Slide 20: C Enterprises Acquisition
i sy C Enterprises — Acquisition announced March 11, 2019 * Based in Vista, California — West coast fiber optic manufacturing capabilities — Corning Gold certificate member * 2019 revenues of $7.2M (for 7 % months) — Expected to be accretive to earnings in fiscal 2020 * Brings strong fiber optic and
Slide 21: Acquisition #2
Acquisition #2 Schroff Tech — Acquisition announced November 4, 2019 * Based in Rhode Island Manufacturer of products serving the high growth wireless, telecom and cable markets — Two primary products: Energy efficient cooling system for wireless base stations Family of custom designed, pole ready 5
Slide 22: Key Takeaways
Key Takeaways * Our products are everywhere and make lots of things work * Revenue has nearly doubled over 3 years with major future opportunities * Our new business generation model is driving growth and finding new markets ° We’re faster and more flexible while delivering high quality products and
Slide 23: Interconnect Solutions Contacts
Interconnect Solutions Contacts: RF Industries, Ltd. Peter Yin ‘SVP/CFO (858) 549-6340 rfi@rfindustries.com MKR Investor Relations Todd Kehrli Analyst/Investor Contact (323) 468-2300 rfil@mkr-group.com
Slide 24: Appendix
Appendix
Slide 25: Financial Statement Trends
Financial Statement Trends through January 31, 2021
Slide 26: Income Statement Trends
Q1yTD __fullYear ___FullYear __FullYear Full Year inritions) Unaualted — Audited — Audited Audited Audited Net sates $ 10 $ 40 $ ssa $ $230 5s Cost of sates 2a 315 397 16.0 Gross profit 26 us 15.6 70 (@) cperaing eas: ° Engineering oa 19 1s 4s os Selling and general 28 109 36 al 60 Total operating e
Slide 27: Balance Sheet Trends (continued)
Current portion at operating ease abies ‘ter current lables 03 a i i Current ables hedor sale : : : : os. ‘ota current abies 7a 7 ea a7 38 ‘Aoresuren obi, Deferedtax lables . 3 7 : oa ‘Operating leaselabives os 06 3 E PPP Loane o7 ua 2 : : (ter torte abies : os ox 5 Coynmon tock oa on oa on oa ‘Acki
Slide 28: Cash Flow Statement
inition) ‘Qoeratina Actes, Consolidates rt income oes) S$ @) $ on $ 35 $ 5a $04 Net income from discard operations - Comet Bo 8 8 ‘Net income los rom cantinang operations Say $a $35 $60 $02 Ajstments to reconcile net income toe ash prow used) by operate, actives Depreciation andamortation 02 10 os 0
Slide 29: Quarterly Income Statement
‘an a @ a as ar ‘ea vo {inmitons Tawa Unsaaed Rusted ‘Unaadied Fused Netsales: S$ 100 $ 124 $ 14 S$ 95 $ 107 $ 430 § 106 $ 136 S$ 155 $ 156 $ S53 — pee ta he ese as 31a us Soy = Goossprot a a SE ro nai aa ro) Cneincerng es! ——_~ Selling ane genera 2825 232525 aoe 2a 3 ‘Tota operating expenses i a |
Slide 30: Balance Sheet
fin mitons) ASSETS: {ash and eash equivalents Other current assets Total current assets Prowesty nd suioment et Operating ease ROU asses, net ‘ood ‘Non-amortizable intangibles Otner LT asses Total Anets rau: Aecourts payable Current portion of PPP Loans Cerrent portion of operating easeliab Other cu
Slide 31: Quarterly Financial Trends
lnreton Toa asa Hanes Uae ms) s eM s s ers DS Os |S os ts es smote nee th rie ey Orta cr oF os a eo) : —————————————— = ‘antennas (Remo nl xh eget = eS te a Fale se rere i eo + = ic} ama 7 = cree a =
Slide 32: Non-GAAP Net Income Reconciliation
=m 2024 2020 2019 2018 2017 fe) fin Unaudited e ro) Net income $ (403) $ 26 $ 640 $ 454 $ = (194) 1 = Stock-based compensation expense 123 186 114 75 51 G 2 Acquisition-related costs - 28 4 - - a Non-GAAP net income S$ (280) $240 S$ 758 S$ 529 $ (143) > ed} ot Non-GAAP net income per share: ae} pe B
Slide 33: Adjusted EBITDA Reconciliation
vn iv) oO (°) +5 2021, 2020 2019 2018 2017 (or (in thousands) Unaudited > = Net (loss) income $ (403)$ 26 $ 640 $ 454 $ (194) 2 2 Stock-based compensation expense 123 186 114 7s 51 c= Acquisition-related costs - 28 4 - - a Oo Amortization expense 157 173 69 69 69 i } Depreciation expense 80 82 68 58