19 slides from Lgl Group, Inc. (the)'s earnings presentation, Mar 16, 2011
Slide 1: Q4 2010 Earnings Announcement
The LGL Group, Inc. (AMEX: LGL) Q4 2010 Earnings Announcement March 16, 2011 8:30 a.m. EDT
Slide 2: Safe Harbor Statement
Q4 2010 Earnings Announcement March 16, 2011 8:30 a.m. EDT 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
Slide 3: Agenda
Q4 2010 Earnings Announcement aa) March 16, 2011 8:30 a.m. EDT —as Agenda (oe Z - Introduction - Business Highlights - Financial Highlights - Strategic Growth Initiatives + Question and Answer
Slide 4: Business Highlights
Business Highlights
Slide 5: Business Highlights
cara \) Business Highlights ia + Q4 2010 -— fifth consecutive quarter of positive earnings 2010 revenues $46.7MM, up 49.1% over 2009 + 2010 gross margin of 35.0%, a 11.3 percentage point increase over 2009 2010 pre-tax earnings per share of $2.88 + 2010 EBITDA of 16.1% - Customer positions remain st
Slide 6: Business Highlights: Q4 2010 Results
Business Highlights Q4 2010 Results Revenues for Q4 2010 were $11.0MM, a 19.8% increase over the same quarter in 2009 of $9.2MM New orders were softer late in Q4 2010 for both of our major market segments, Telecom and MISA (Military-Instrumentation-Space-Avionics) Backlog at end of Q4 2010 was $10.7
Slide 7: Business Highlights: Full Year 2010 Results
cara \) Business Highlights — Full Year 2010 Results 2010 revenues were $46.7MM, a 49.1% increase over 2009 revenue of $31.3MM + 2010 pre-tax net income (Non-GAAP) of $6.5MM; pre-tax earnings per share (Non-GAAP) of $2.88 + 2010 net income (GAAP) of $9.4MM; 2010 EPS (GAAP) of $4.19 2010 net income i
Slide 8: Business Highlights: H1 2011 Outlook
cara \) Business Highlights ia H1 2011 Outlook Major customers reporting market softness - Repeat orders from existing contracts sluggish + Semi-conductor industry predicting revenue growth in H2 + Cash position and working capital significantly improved
Slide 9: Financial Highlights
Financial Highlights
Slide 10: Financial Overview: Revenue Trend
Financial Overview Revenue Trend Historical Revenue ($MM) $50.0 $46.7 $45.0 $41.5 $40.2 ry $39.5 $35.1 $350 $31.3 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Note: Revenues for 2005 through a portion of 2007 are adjusted to exclude Lynch Systems, whose ope
Slide 11: Quarterly Income Statement Trends
Financial Outlook Quarterly Income Statement Trends 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% (8.2%) (10.0%) Q12008 Q22008 Q32008 242008 212009 G2 2009 23 2009 24 2009 1 2010 G2 2010 23 2010 wm Revenue —=8=GrossMargn = @ EBITDA Margin = Q4 2010 represents the fifth sequential quarter of positive earnings =
Slide 12: Order Backlog
Financial Outlook Order Backlog (8000's at quarter end) 16,000 14,000 ; 2 8 8 g i 12,000 3 $ e = 40,000 & = Ce 5 z = ze 8,000 8 & oS ey 8 2 e g bi 8 bd 6,000 | [be 8 a 3 3 4,000 2,000 oJ Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 + Backlog lower due to reduced order acti
Slide 13: Financial Summary: Income Statement Trends
Financial Summary Income Statement Trends (8 in millions, except EPS) Revenue % Growth Gross Profit % Margin EBITDA % Margin Pre-Tax Earnings (Non-GAAP) % Margin Pre-Tax EPS (Non-GAAP) Fy 2007 Fy 2008 FY2009 FY 2010 $39.5 $40.2 $31.3 $46.7 1.8% (22.1%) 49.2% 10.2 10.4 74 16.4 25.8% 25.9% 23.7% 35.0%
Slide 14: Capital Structure: Capital Position
Capital Structure Capital Position as of December 31, 2010 Total Assets: $ 23.7 million Net Working Capital: $ 13.5 million Cash and ST Investments: $ 4.2 million Long Term Debt (including current portion): $ 0.7 million Shareholders’ Equity: $ 18.7 million Available Line of Credit: $ 4.0 million *
Slide 15: Capital Structure: Strong balance sheet
Capital Structure Strong balance sheet 2010 performance substantially improved the Company’s balance sheet + Improved ability to produce free cash flow; generated $4.6MM in 2010 + Substantially no debt due to paydown of FNBO revolving line of credit and the payoff of RBC term loan in Q3 2010 Success
Slide 16: GAAP to Non-GAAP Reconciliations
Financial Summary GAAP to Non-GAAP Reconciliations Reconciliation of 2010 GAAP Net Income to Non-GAAP Pre-Tax Earnings (S000's in millions, except per share amounts) For the years ended December 31, 2007 2008 2009 2010 Net income (GAAP) $ (0.6) $ (13) $ (2.5) $ 94 Income tax benefit (provision) (0.1
Slide 17: Strategic Growth Initiatives
Strategic Growth Initiatives
Slide 18: Significantly improved business fundamentals during 2010
Significantly improved business fundamentals during 2010 + Returned to growth, achieved profitability, strong working capital position + Increased market share driven by new product introductions + Significant growth opportunities in both timing and filters + Manufacturing cost advantages for MISA m
Slide 19: Question and Answer
Question and Answer Visit us: www.lgigroup.com www.mtronpti.com Contact us: Greg Anderson, President and CEO (E-mail: ganderson@Iglgroup.com) LaDuane Clifton, Chief Accounting Officer (E-mail: Iclifton@lglgroup.com) Voice: (407) 298-2000 -19-