Slide 1: inTEST Corporation Q2 2022 Financial Results Conference Call
inTEST Corporation Q2 2022 Financial Results Conference Call Nick Grant, President and CEO Duncan Gilmour, CFO August 4, 2022
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: Demonstrating Success of 5-Point Strategy
Demonstrating Success of 5-Point Strategy 5-Point Strategy ➢ Execution of strategy delivered better than expected results ➢ 36% y/y revenue growth included 12% organic expansion ▪ Delivered record revenue of $29.6 million with strength across markets ▪ Organic growth of $2.6 million driven by automo
Slide 4: Revenue
Revenue ($ in millions) $29.6 ➢ Q2 record revenue up $7.8 million, or 36% ▪ Three Q4 2021 acquisitions added $5.2 million $24.1 $22.4 ▪ 12% organic growth y/y $21.8 $21.1 ▪ 23% sequential growth ➢ Strong improvement across markets Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 ▪ Solid demand in front-end semi, autom
Slide 5: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Quarters ➢ Q2 gross profit increased $2.5 million $13.5 ▪ Margin contraction vs. prior-year period result of less $11.0 $10.4 $10.3 $11.0 favorable product mix • Prior-year period benefitted from significant volume in legacy back-end semi test solutions 50.2%
Slide 6: Operating Expenses
Operating Expenses Investing in people and marketing to support 5-Point Strategy for Growth ($ in millions) Operating expenses as a % of sales ➢ Q2 operating expenses up $609,000, sequentially 36.3% 37.1% 45.0% 42.4% 36.6% $10.8 ▪ Reflects merit increases and continued growth-related $10.1 $10.2 inv
Slide 7: Earnings and Adjusted EBITDA
Earnings and Adjusted EBITDA ($ in millions, except per share data) ➢ Demonstrating operating leverage as the organization Adjusted EBITDA and Margin(1) scales to further drive earnings power Quarters $4.2 ➢ Adjusted EPS reflects $603,000 (after tax) of acquired $4.0 $3.4 intangible amortization $2.
Slide 8: Capital Structure and Cash Flow
Capital Structure and Cash Flow ($ in millions) Capitalization Year Cash Flow Six Months Ended Ended 6/30/22 3/31/22 6/30/22 6/30/21 12/31/21 Cash and cash equivalents $ 10.5 $ 17.2 Net cash provided by Short term investments $ 3.5 $ ─ (used in) operating $ (5.1) $ 3.9 $ 10.8 activities (GAAP) Total
Slide 9: Orders and Backlog
Orders and Backlog ($ in millions) Orders $40.5 ➢ Record orders, up 60% with strong demand from all $30.5 end markets $25.1 $25.1 $21.1 ▪ Book-to-bill of 1.4 ▪ Acquisitions added to demand especially in security and defense ▪ Semi front-end and back-end orders strengthened Q2 21 Q3 21 Q4 21 Q1 22 Q2
Slide 10: Reaffirming Outlook for 2022
Reaffirming Outlook for 2022 ➢ Executing our 5-Point Strategy to continue driving growth 5-Point Strategy ▪ Innovative solutions gaining confidence among growing customer base ▪ Increasing volume of longer term commitments ➢ 2022 Outlook & Q3 Guidance(1) Global & Innovation & Market ▪ 2022 revenue:
Slide 11: Executing to Plan
Executing to Plan ($ in millions) ~$200 to $250 Future Acquisitions ~$110 to $115 $85 $54 ∕∕ 2020 2021 2022E 2025E 11
Slide 12: Scale Expected to Drive Operating Leverage
Scale Expected to Drive Operating Leverage ($ in millions) Division Operating Income* Adjusted EBITDA1 Net Income (Loss) ~ $40 + ~ $30 + ~ $20 + $19 $12 $7 $7 $1 13% 23% ~20% 2% 14% ~15% 9% ~10% ($1) ∕∕ ∕∕ ∕∕ 2020 2021 2025E 2020 2021 2025E 2020 2021 2025E 1 Adjusted EBITDA is a non-GAAP financial m
Slide 13: Strong First Half on Track with Plan
Strong First Half on Track with Plan Strong demand for innovative technologies and engineering expertise Diversified end markets with strong secular growth drivers Increasing customer base, deepening customer reach and expanding geographically Financial flexibility to execute growth strategy Executi
Slide 14: Conference Call Playback Info and Upcoming Events
Conference Call Playback Info ➢ Replay Number: (412) 317-6671 passcode: 22019594 ➢ Telephone replay available through August 11, 2022 ➢ Webcast / Presentation / Replay available at ir.intest.com ➢ Transcript, when available, at ir.intest.com Upcoming Events ➢ Midwest IDEAS Conference on August 24, 2
Slide 15: Supplemental Information
inTEST Corporation Q2 2022 Financial Results Conference Call Supplemental Information August 4, 2022
Slide 16: Adjusted Net Earnings Reconciliation
Adjusted Net Earnings Reconciliation ($ in thousands) Three Months Ended 6/30/2022 6/30/2021 3/31/2022 Net earnings (GAAP) $ 2,116 $ 2,609 $ 577 Acquired intangible amortization 765 305 782 Tax adjustments (162) (4) (93) Adjusted net earnings (Non-GAAP) $ 2,719 $ 2,910 $ 1,266 Diluted weighted avera
Slide 17: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Three Months Ended 6/30/2022 6/30/2021 3/31/2022 Net earnings (GAAP) $ 2,116 $ 2,609 $ 577 Acquired intangible amortization 765 305 782 Interest expense 133 2 137 Income tax expense 454 447 78 Depreciation 174 167 188 Non-cash stock-based compensation
Slide 18: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Estimated Q3 2022 Guidance Low High Estimated earnings per share – diluted (GAAP) $ 0.20 $ 0.25 Estimated acquired intangible amortization 0.06 0.06 Estimated tax adjustments (0.01) (0.01) Estimated adjusted earnings per share – diluted (Non-GAAP) $ 0.25 $ 0.30 18
Slide 19: Segment Reporting
Segment Reporting Reclassification of 2021 ($ in thousands) Quarter Ended Year Ended 6/30/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 12/31/2021 Electronic Test $ 9,054 $ 8,103 $ 6,851 $ 8,778 $ 9,797 $ 32,509 Environmental Technologies 6,647 6,875 7,176 6,993 7,507 26,896 Process Technologies 6,1