Slide 1: Q3 2021 Financial Results Conference Call Presentation
Innovative Test & Process Solutions Q3 2021 Financial Results Conference Call Presentation November 5, 2021 Nick Grant Duncan Gilmour President and CEO CFO and Treasurer
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
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: Q3 2021: Advancing 5-Point Strategy
Q3 2021: Advancing 5-Point Strategy 5-Point Strategy Driving profitable growth and diversifying markets and customer base • Achieved solid results despite supply chain challenges • Net revenue of $21.1 million up 46% over prior-year period due to strength of semiconductor and industrial markets Glob
Slide 4: Z-Sciences Advances Core Growth Strategies
Z-Sciences Advances Core Growth Strategies Z-Sciences Corp. develops and sells high-performance biomedical refrigerators and freezers that meet versatile applications, including ultra-cold storage solutions for biological sample banks, blood safety, vaccine safety, medical supplies and reagent safet
Slide 5: Videology Expands Process Technology Offerings
Videology Expands Process Technology Offerings Videology Imaging Solutions designs and manufactures industrial-grade circuit board mounted digital imaging solutions and related devices, systems and software for OEM custom solutions. • Headquartered in Greenville, RI Strategic Rationale • European op
Slide 6: Revenue
Revenue ($ in millions) Quarters $21.8 $19.6 $21.1 Q3 revenue up $6.7 million, or 46%, YoY $14.9 $6.1 $14.4 $7.5 $6.2 Multimarket: $7.1 $7.3 $15.7 • Ongoing, broad-based recovery within industrial $13.3 $13.7 $7.4 $7.6 sectors Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 • Benefited from new product introductions
Slide 7: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Quarters $11.0 $9.5 $10.4 Q3 gross profit increased $3.9 million YoY $6.7 • 450 basis point margin expansion $6.5 • Reflects higher volume, benefits of restructuring and improved product mix 44.7% 45.2% 48.7% 50.2% 49.2% Sequential margin impacts: Q3 20 Q4 20
Slide 8: Operating Expenses
Operating Expenses ($ in millions) Effectively managing costs while 41.7% 48.4% 35.5% 36.3% 37.1% investing for growth (Q2 vs Q3) • Investing in people and marketing to support $7.9 $7.8 $0.2 $0.1 5-Point Strategy $7.2 $6.9 • ~$300 thousand in expenses related to M&A activities $0.1 $6.0 $1.1 • More
Slide 9: Profitability in Line with Expectations
Profitability in Line with Expectations Focused on strengthening earnings power Adjusted EBITDA and Margin(2) Strong cash generation Quarters Adjusted EPS reflects ~$300 thousand of acquired intangible $4.0 amortization $3.3 $3.4 Expect effective tax rate in 2021 to range from 14% to 16% (1) $1.0 (2
Slide 10: Capital Structure and Cash Flow
Capital Structure and Cash Flow ($ in millions) Capitalization Cash Flow Three Months Ended YTD 9/30/21 12/31/20 9/30/21 9/30/20 9/30/21 Cash and cash equivalents $ 18.7 $ 10.3 Net cash provided by operating activities $ 4.3 $ 2.3 $ 8.1 Total debt - - (GAAP) Total net debt - - Capital expenditures (
Slide 11: Orders and Backlog
Orders and Backlog ($ in millions) Orders $25.2 $25.1 Continued robust demand, though trends $21.1 $17.6 $8.1 $8.6 have moderated from recent historical $14.4 $7.8 $6.5 highs $7.2 $17.2 $16.5 $13.4 • Secured new orders in targeted EV and cannabis $11.1 $7.3 markets Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 • Fo
Slide 12: Outlook and Perspective
Outlook and Perspective Focused on further market differentiation and 5-Point Strategy incremental growth and profitability • Integrating newly acquired businesses Global & Strategic Market Acquisitions & • New product development efforts Expansion Partnerships • Robust pipeline of new customer oppo
Slide 13: Conference Call Playback Info
Conference Call Playback Info Replay Number: 412-317-6671 passcode: 13723740 Telephone replay available through November 12, 2021 Webcast / Presentation / Replay available at ir.intest.com Transcript, when available, at ir.intest.com 13
Slide 14: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in thousands) Three Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Net earnings (GAAP) $ 2,175 $ 2,609 $ 2,212 $ (380) $ 458 Acquired intangible amortization 309 305 304 306 307 Tax adjustments (4) (4) (4) (2) (15) Adjusted net earnings (Non-GAA
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Three Months Ended Twelve Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 9/30/2021 12/31/2020 12/31/2019 Net earnings (GAAP) $ 2,175 $ 2,609 $ 2,212 $ (380) $ 458 $ 6,616 $ (895) $ 2,322 Acquired intangible amortization 309 305 304 306
Slide 16: Estimated Q4 2021 Adjusted EPS Reconciliation
Estimated Q4 2021 Adjusted EPS Reconciliation ($ in thousands) Low High Estimated net earnings per share – diluted (GAAP) $0.10 $0.14 Estimated acquired intangible amortization 0.04 0.04 Estimated tax adjustments - - Estimated adjusted net earnings per share – diluted (Non-GAAP) $0.14 $0.18 16
Slide 17: Innovative Test & Process Solutions
Innovative Test & Process Solutions Q3 2021 Financial Results Conference Call Presentation November 5, 2021