Slide 1: inTEST Corporation NYC Summit
inTEST Corporation NYC Summit Nick Grant Duncan Gilmour President and CEO Chief Financial Officer December 12, 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 Nick Grant Duncan Gilmour President and CEO Chief Financial Officer and Treasurer 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
Slide 4: Transforming inTEST
Transforming inTEST Transition from Components to Solutions Provider 1 Shift to Diversified Markets with Strong, Secular Growth ▪ Megatrends in a number of diverse industries and end‐markets driving significant upside ▪ New organizational structure (5‐Point Strategy) to better align with customer ne
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 $1B+ Semi Test In-Circuit Test Thermal Test Cold Chain Induction Ima
Slide 8: Driving Market Leadership/Opportunities
Driving Market Leadership/Opportunities Targeting markets with strong, secular tailwinds inTEST Revenue by Market* Expected 5-Year Markets Market Growth** Served 3% to 6% Semi Markets Industrial 3% to 6% Defense/Aero 3% to 6% 2025E 2022 Targeted Growth Markets 2021 Auto/EV 5% to 8% Life Science 6% t
Slide 9: Electronic Test
Electronic Test Engineering solutions for the toughest challenges in automated test ➢ Growth drivers: semi mixed-signal/analog focused and strength in EV market; expanded presence in defense and life sciences ➢ Markets: Back-end Semi Test, Industrial, Auto/EV, Life Sciences and Defense/Aero ➢ Bringi
Slide 10: Environmental Technologies
Environmental Technologies Creating and controlling environmental conditions in test, process and storage applications ➢ Growth drivers: strong position in Back-end Semi Test/R&D, increasing demand in defense and life sciences ▪ Life Sciences cold chain solutions serves vaccine storage/transportatio
Slide 11: Process Technologies
Process Technologies Technical expertise and customized solutions for industrial applications ➢ Growth drivers: solutions for silicon carbide crystal growth, automotive/EV manufacturing, security and life sciences driving significant demand for induction heating and imaging solutions ➢ Addressable m
Slide 12: Making M&A a Core Competency
Making M&A a Core Competency Completed three acquisitions (4th Quarter 2021) M&A Eco-System Disciplined M&A Process Acquire quality businesses to drive shareholder value Expand into fast growing markets Offer broader portfolio of solutions Strategy M&A Development Execution Drive further market dive
Slide 13: Financial Overview
Financial Overview 13
Slide 14: Revenue
Revenue ($ in millions) Years Quarters ➢ Record revenue in Q3 of $32.7 million, $129.5 up $1.9 million, or 6% y/y $116.8 $32.7 $30.8 $84.9 ➢ Y/Y quarterly comparison: $53.8 ▪ Strong sales across most markets and technology offerings 2020 2021 2022 TTM Q3 2022 Q3 2023 ▪ Defense/aerospace revenue incr
Slide 15: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Years Quarters ➢ Q3 gross margin of 46.9% improved 170 bps y/y ▪ Reflects higher volume, favorable product mix, improved pricing, and continued focus on $60.4 productivity improvements $53.4 $15.3 $13.9 ▪ Sequential increase of 70 bps primarily due to more $41
Slide 16: Operating Expenses
Operating Expenses Investing in people and marketing to support 5-Point Strategy for Growth ($ in millions) Operating expenses as a % of sales ➢ Q3 operating expenses up $1.3 million y/y, and increased as a percent of sales to 47.0% 38.6% 36.6% 35.7% 34.9% 36.9% 36.9% Years Quarters ▪ Majority of Op
Slide 17: Earnings and Adjusted EBITDA (Non-GAAP)
Earnings and Adjusted EBITDA(1) (Non-GAAP) ($ in millions, except per share data) Net Earnings and Adjusted EBITDA/ (1) (1) EPS and Adjusted EPS (Non-GAAP) Adjusted EBITDA Margin (Non-GAAP) Quarters Quarters $0.28 $0.28 $4.5 $4.6 $0.23 $0.24 $3.0 $2.5 14.5% 14.0% Q3 22 Q3 23 Q3 22 Q3 23 Years Years
Slide 18: Capital Structure and Cash Flow
Capital Structure and Cash Flow ($ in millions) Year Capitalization Cash Flow Three Months Ended Ended 9/30/23 12/31/22 9/30/23 9/30/22 12/31/22 Net cash provided by Cash and cash equivalents $ 41.7 $ 13.4 $ 6.2 $ 1.4 $ (1.4) (used in) operating activities Total debt $ 13.1 $ 16.1 Capital expenditur
Slide 19: Capital Allocation Priorities
Capital Allocation Priorities I. GROWTH Invest in engineering, Innovative Solutions and sales & marketing Market Expansion Continue programmatic M&A Acquisitions and Partnerships II. BALANCE SHEET Maintain Capital Expenditures between 1% to 2% of Sales Manage capital structure responsibly Manage Tot
Slide 20: Orders and Backlog
Orders and Backlog(1) ($ in millions) Orders ➢ Q3 orders down 18% y/y, 15% sequentially Years Quarters $129.6 $120.4 ▪ Y/Y strength in orders from security and $101.9 $32.7 automotive/EV, partially offset lower demand from the semi and industrial markets $26.9 $59.7 ▪ Q/Q softer demand in the indust
Slide 21: Updating Outlook for 2023
Updating Outlook for 2023 ➢ Fourth Quarter Outlook(1) ▪ Revenue: $28 million to $30 million 5-Point Strategy ▪ Gross margin: ~45% ▪ Operating expenses: ~$11.7 million • Amortization (after tax) ~$430,000 ▪ Net interest income: similar to Q3 Global & Innovation & ▪ Effective tax rate: ~16% Market Dif
Slide 22: Executing to Plan
Executing to Plan ($ in millions) ~$200 to $250 0 25 0 t o2 Potential R 202 Future AG 0 %+C Acquisitions ~ 3 $125 - $127 $117 $85 $54 ∕∕ 2020 2021 2022 2023E 2025E Actual Revenue Estimated Revenue(1) (1) Estimated 2025 revenue, including estimated revenue from future potential acquisitions, is based
Slide 23: Driving Scale to Deliver Growth in Earnings
Driving Scale to Deliver Growth in Earnings ($ in millions) Division Operating Income(1) Adjusted EBITDA(2) Net Earnings ~ $40 + ~ $30+ ~ $20+ - $26 $19 $22 + $19 $16 $12 $12 $8 $7 22% 19% 20% ~20% 14% 14% 15% ~15% 9% 7% 9% ~10% TTM ∕∕ (3) TTM ∕∕ TTM ∕∕ 2021 2022 Q3 23 2025E 2021 2022 Q3 23 2025E (3
Slide 24: Execution on Track with Plan
Execution on Track with Plan Innovative technologies leveraging engineering expertise Diversified end markets with strong secular growth drivers Growing customer base, deepening customer reach and expanding geographically Financial flexibility to execute growth strategy Executing 5-Point Strategy an
Slide 25: inTEST Corporation NYC Summit
inTEST Corporation NYC Summit Nick Grant Duncan Gilmour President and CEO Chief Financial Officer December 12, 2023
Slide 26: Supplemental Information
inTEST Corporation Supplemental Information
Slide 27: Reconciliation of Net Earnings to Adjusted Net Earnings and EPS
Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) and Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share (Non-GAAP) ($ in thousands, except per share amounts) Three Months Ended 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Net earnings $ 2,524 $ 3,244 $ 2,817 $
Slide 28: Reconciliation of Net Earnings to Adjusted Net Earnings and EPS
Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) and Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share (Non-GAAP) ($ in thousands, except per share amounts) Years Ended 12/31/2020 12/31/2021 12/31/2022 TTM Q3 23 Net earnings $ (895) $ 7,283 $ 8,461 $ 11,820 Acquired
Slide 29: Reconciliation of Net Earnings to Adjusted EBITDA
Reconciliation of Net Earnings and Net Margin to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP) ($ in thousands) Three Months Ended 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Net earnings $ 2,524 $ 3,244 $ 2,817 $ 2,793 $ 2,966 Acquired intangible amortization 595 552 544 5
Slide 30: Reconciliation of Net Earnings to Adjusted EBITDA
Reconciliation of Net Earnings and Net Margin to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP) ($ in thousands) Years Ended December 31, 2020 2021 2022 TTM Q3 23 Net earnings (loss) $ (895) $ 7,283 $ 8,461 $ 11,820 Acquired intangible amortization 1,233 1,440 2,694 2,134 Net inter
Slide 31: Reconciliation of Estimated Earnings Per Diluted Share
Reconciliation of Third Quarter 2023 Estimated Earnings Per Diluted Share to Estimated Adjusted Earnings Per Diluted Share (Non-GAAP) Low High Estimated earnings per diluted share $ 0.08 $ 0.13 Estimated acquired intangible amortization 0.05 0.05 Estimated tax adjustments (0.01) (0.01) Estimated adj
Slide 32: Segment Reporting
Segment Reporting ($ in thousands) Quarter Ended Year Ended 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2021 12/31/2022 Electronic Test $ 10,408 $ 11,236 $ 10,371 $ 10,993 $ 11,547 $ 32,509 $ 40,219 Environmental Technologies 7,631 8,041 8,042 8,136 7,000 26,896 30,172 Process Technolog
Slide 33: inTEST Corporation
inTEST Corporation NYC Summit Nick Grant Duncan Gilmour President and CEO Chief Financial Officer December 12, 2023