Optical Cable Corporation · NASDAQ:OCC
Optical Cable — Shareholder Meeting (March 2019)
23 slides from Optical Cable's shareholder meeting presentation, Mar 27, 2019
Slide 1: Annual Meeting of Shareholders
0 Annual Meeting of Shareholders
Slide 2: Forward Looking Information
SCCC Forward Looking Information This presentation may contain “forward looking statements” that involve risks and uncertainties. These statements reflect management's current expectations about possible future events and performance. Such forward-looking information is subject to known and unknown
Slide 3: Agenda
SCCC Agenda |. Strong Performance and Execution in Fiscal Year 2018. Market Strength. Significant Opportunities. \\l. First Quarter 2019. Driving Value Creation in 2019. Q8A.
Slide 4: Strong Performance and Execution in Fiscal Year 2018
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Slide 5: Strong Performance and Execution in Fiscal Year 2018
SCCC Strong Performance and Execution in Fiscal Year 2018 Net sales increased 37.0% to $87.8 million in fiscal 2018, compared to $64.1 million last in fiscal 2017 Highest annual net sales in OCC history Strong sales growth in specialty markets—particularly military and wireless carrier markets Stren
Slide 6: Net Sales by fiscal year
CCC Strong Performance and Execution in Fiscal Year 2018 Net Sales by fiscal year 2008 2005 2005 2007 2008 2008 2010 2011 2012 2013 2018 21S 2016 2017 2018
Slide 7: Strong Performance and Execution in Fiscal Year 2018
SCCC Strong Performance and Execution in Fiscal Year 2018 Gross profit grew 34.0% to $27.9 million in fiscal 2018, compared to $20.8 million in prior fiscal year Strong sales Operating leverage
Slide 8: Strong Performance and Execution in Fiscal Year 2018
SCCC Strong Performance and Execution in Fiscal Year 2018 SG&A Expenses as a percentage of net sales were 29.8% in fiscal 2018, compared to 34.3% in fiscal 2017 Benefited from OCC's operating leverage Employee incentives and sales commissions increased as a result of significant growth in net sales
Slide 9: Strong Performance and Execution in Fiscal Year 2018
SCCC Strong Performance and Execution in Fiscal Year 2018 Achieved positive net cash provided by operating activities of $3.2 million Strong Balance Sheet — Reduced total bank debt by $3.0 million (or 23.9%) to $9.4 million during fiscal 2018 Secured a $6.0 million special revolving loan in the seco
Slide 10: Market Strength. Significant Opportunities.
{ — us ge y 4 Market Strength. Significant Opportunities. ©2019 OCC | WWWOCCRBERGOM | CONFIDENTIAL
Slide 11: Market Strength. Significant Opportunities.
SCCC Market Strength. Significant Opportunities. OCC built strong market positions in a broad range of targeted markets over the years—including in enterprise, harsh environment and specialty markets OCC market strength is built on— OCC’s innovative and top-tier cabling and connectivity solutions Te
Slide 12: Market Strength. Significant Opportunities.
Market Strength. Significant Opportunities. OCC ‘Connections You Can Count On?
Slide 13: Market Strength. Significant Opportunities.
SCCC Market Strength. Significant Opportunities. OCC's competitive market positioning is one of OCC’s most valuable assets— ) Earned respect of other industry participants—particularly competitors much larger than OCC. Provides opportunities and operating leverage to grow in our targeted markets Cre
Slide 14: First Quarter 2019.
First Quarter 2019. ©2019 OCC | @ERCOM | CONFIDENTIAL
Slide 15: First Quarter 2019
SCCC First Quarter 2019 Net Sales of $16.8 million, compared to $17.6 million in Q1 2018 $1.2 million net sales on non-recurring military project included in Q1 2018 Gross Profit of $3.6 million, compared to $5.2 million Net loss of $0.44 per share
Slide 16: First Quarter 2019
SCCC First Quarter 2019 Q1 2019 Cost of Goods Sold Impacted by— Throughput constraints and inefficiencies in OCC’s Roanoke facility that resulted from expansion, training, and restructuring of manufacturing workforce and process changes Initiatives intended to ultimately increase throughput and effi
Slide 17: First Quarter 2019
SCCC First Quarter 2019 Q1 2019 SG&A Expenses Impacted by— $862,000 expense resulting from vesting on January 31, 2019 of certain previously granted long-term, performance-based equity incentives with vesting opportunities over 5- to 6-years, an increase of $749,000 compared to Q1 2018 Not expected
Slide 18: First Quarter 2019
SCCC First Quarter 2019 Continued strength in certain other industrial and specialty markets Higher than typical Order Backlog/Forward Load of $10.0 million at end of Q1 2019 3.9 to 1.0 Current Assets to Current Liabilities Ratio at end of Q1 2019
Slide 19: Driving Value Creation in 2019.
Slide 20: Driving Value Creation in 2019.
SCCC Driving Value Creation in 2019. Strategy designed to drive top-line and bottom-line growth OCC Team committed to advancing our key strategic initiatives to execute strategy and accomplish growth goals Committed to achieving benefits of Roanoke manufacturing initiatives intended to ultimately in
Slide 21: Questions and Answers.
Questions and Answers. "B2019 OGG | WWWOCCRBERCOM | CONFIDENTIAL
Slide 22: Reliability Counts... The Advanced Lightweight Reel Stand
RELIABILITY COUNTS... _ ‘THE ADVANCED LIGHTWEIGHT REEL STAND
Slide 23: Thank You!
40CC 20OCC Thank You! Connections You Can Count On.”