22 slides from Lgl Group, Inc. (the)'s earnings presentation, May 25, 2010
Slide 1: The LGL Group, Inc. (AMEX: LGL)
The LGL Group, Inc. (AMEX: LGL)
Slide 2: Safe Harbor Statement
Q1 2010 Earnings Report LGL May 25, 2010 10:00 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 unc
Slide 3: Agenda
Q1 2010 Earnings Announcement May 25, 2010 10:00 a.m. EDT Agenda Business Highlights Financial Highlights Key Investment Considerations Question and Answer
Slide 4: Overview of The LGL Group
(> Overview of The LGL Group LG Lay Highlights 7. We are a publicly traded global corporation... — Business has been operating since 1965 — Current revenue run rate of approximately $40 million — Globally diversified revenue base (approx. 50% overseas) — Stock price of $11.50 @ 5/21/2010 (2-year hig
Slide 5: Overview of The LGL Group: Mission Statement
Overview of The LGL Group Mission Statement Our mission is to: ¥ Bea leader in the design of custom frequency control and filter products within the Military-Instrumentation-Space-Avionics (MISA) and Telecommunications market segments; ¥ Build value for our customers through broad product offerings
Slide 6: Overview of The LGL Group: Operating Highlights
Overview of The LGL Group EGit Operating Highlights (eooud Global manufacturing and sales infrastructure Headquarters in Orlando, FL 71,000 square feet of manufacturing facility in Orlando with Department of Defense secret security clearance 28,000 square feet of manufacturing facility in Yankton, S
Slide 7: Business Highlights
Q1 2010 Business Highlights
Slide 8: Q1 2010 Business Highlights
Q1 2010 Business Highlights + Carried forward the solid performance demonstrated in Q4 2009 into 2010 + Continued strength in revenue and bookings + Two new product offerings for MISA segment went into production with primary impact to revenue anticipated in Q2 2010 + Second sequential quarter of po
Slide 9: Q1 2010 Business Highlights
Q1 2010 Business Highlights + Another strong quarter for orders in both the Telecom and MISA market segments + Backlog as of the end of Q1 2010 increased 2.2% to $14.3MM as compared to Q4 2009 backlog of $13.9MM « Revenues for Q1 2010 were $10.7MM, which represents a 16% increase over Q4 2009 of $9.
Slide 10: Q1 2010 Business Highlights: Outlook
Q1 2010 Business Highlights Q2 2010 Outlook + Backlog strong and positioned for strong second quarter + New product launches will have positive impact on revenues H2 2010 Outlook + MISA backlogs expected to lighten as contracts won in H2 2009 are shipped and recorded as revenue + Telecom backlogs ex
Slide 11: Financial Outlook
Financial Outlook
Slide 12: Financial Outlook: Revenue Trend
Financial Outlook Revenue Trend $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 LGL Consolidated Revenue ($MM) FY 2005 FY 2006 FY 2007 FY 2008, FY 2009 TTM (as of Q1 2010) Note: Revenues for 2005 through a portion of 2007 includes Lynch Systems, whose operating assets were sold in 2007 -12-
Slide 13: Financial Outlook: Income Statement Trends
Financial Outlook Income Statement Trends (Gin millions, except EPS) FY 2006 FY 2007 FY 2008 FY 2009 —- TTM (Q1 2010) Revenue $ 41549 $ 39,536 $ 40,182 $ 31,301 $ 34,460 Gross profit 12,247 10,173 10,378 7,426 9,428 % Margin 29.5% 25.7% 25.8% 23.7% 27.4% EBITDA 607 (2,576) 170 (1,232) 761 % Margin 1
Slide 14: Financial Outlook: Quarterly Income Statement Trends
cra \) Financial Outlook LGL Income Statement Trends (s[alolulr} (Sin millions, except EPS) 12008 Q22008 932008 a4 2008 12009 22009 932009 042009 12010 Revenue $ 9,782 $ 10,154 $ 10,248 $ 9,998 $ 7,542 $ 7,236 $ 7,921 $ 9,202 $ 10,701 Gross Profit 2628 2,607 2,621 2,522 1651 1,436 1,430 2,909 3,653
Slide 15: Financial Outlook: Order Backlog
Financial Outlook Order Backlog (8000's at quarter end) 16,000 14,000 12,000 10,000 © ° 8,000 5 8 & 6,000 2 2 2 : 2 iS os S g 8 8 e 2 4,000 = 2 2 ES 8 2,000 0 a4 2008 a1 2009 a2 2009 a3 2009 a4 2009 a1 2010 + Q1 2010 represents the third sequential quarter of record backlog levels, indicating strong
Slide 16: Financial Outlook: Capital Position as of March 31, 2010
Financial Outlook Capital Position as of March 31, 2010 Total Assets: $ 20.9 million Net Working Capital: $ 6.6 million Cash and ST Investments: $ 3.9 million Long Term Debt: $ 3.2 million Shareholders’ Equity: $ 10.1 million Available Line of Credit: $ 2.0 million The Company continues to evaluate
Slide 17: Key Investment Considerations
Key Investment Considerations
Slide 18: Key Investment Considerations: Strategic Direction
Key Investment Considerations EGit Strategic Direction (eooud Right-size the Company for today’s macro economic conditions — Clear focus on cash flow and cash preservation — Realign manufacturing resources to take advantage of each location’s primary competencies Intense focus on improving margins —
Slide 19: Key Investment Considerations: Strategic Direction
Key Investment Considerations Strategic Direction Maintain key OEM relationships — Increase focus on customer service and building supply chain flexibility for our customers — Maximize contract positions for 2010 and beyond Expand OEM position in China and India — Leverage supplier and partner relat
Slide 20: Key Investment Considerations: Investment Opportunity
| Key Investment Considerations Compelling Investment Opportunity The Company’s attributes include: — Established reputation for high quality and innovation + Custom engineering capabilities and advanced technological designs + Platform for growth into existing customer base — Global manufacturing a
Slide 21: Key Investment Considerations: Summary
Key Investment Considerations Summary Path to Organic Growth BlueChip ustomer Base
Slide 22: Question and Answer
Question and Answer Visit us: www.lgigroup.com www mtronpti.com. Contact us: Greg Anderson, President and CEO (E-mail: ganderson@lglgroup.com) R. LaDuane Clifton, Chief Accounting Officer (E-mail: Iclifton@lqlgroup.com) Voice: (407) 298-2000 -22-