Lgl Group, Inc. (the) · AMEX:LGL
Lgl Group, Inc. (the) — The LGL Group — Q1 2013 Earnings Presentation
12 slides from Lgl Group, Inc. (the)'s earnings presentation, May 14, 2013
Slide 1: Q1 2013 Earnings Report
The LGL Group, Inc. (NYSE MKT: LGL) Q1 2013 Earnings Report May 14, 2013 – 10:00 a.m. ET
Slide 2: Safe Harbor Statement
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 uncertainty and changes in circumstances. Actual results ma
Slide 3: Corporate Snapshot
Corporate Snapshot Publicly traded global corporation Formed in 1917 IPO in 1946 MtronPTI subsidiary 1965 $30 million TTM annual revenue Mar 31, 2013 Revenue mix 50% outside the U.S. $4.92 Stock price 5/13/2013 $7.60 52-week high $12.8 million market capitalization $9.3 million cash and cash equival
Slide 4: Investment Highlights
Investment Highlights LGL’s subsidiary – MtronPTI, serves large B2B OEM clients that provide solutions to: Internet Communications Technology, and Aerospace and Defense Balanced • 65% Aerospace and Defense (Aero/Defense) Demand • 35% Internet Communications Technology (ICT) • Crystal technology rema
Slide 5: Q1 2013 Results
Q1 2013 Results $7.4M revenue up 3.1% compared to Q1 2012 sequentially down 3.2% compared to Q4 2012 32.5% gross margin up 10.2% compared to Q1 2012 sequentially up 1.8% compared to Q4 2012 ($0.03) loss per share; improved $0.20 compared to Q1 2012 due to favorable mix driven by Aero/Defense $8.4M b
Slide 6: Economic Environment
Economic Environment Overall weak macroeconomic climate no notable structural recovery in target markets compounding macro factors since H2 2011: Japanese natural disaster, U.S. budget uncertainty and sequestration, Euro crisis cautious infrastructure spending patterns Newer technology (e.g. IEEE 15
Slide 7: Financial Snapshot
Financial Snapshot Quarterly Income Statement Trends Capital Position as of: 3/31/2013 12/31/2012 Total Assets $ 28.9M $ 29.6M • Cash and cash equivalents of $3.59 per share at 03/31/2013 Net Working Capital 16.6M 16.6M Cash-Adjusted Working Capital 8.2M 7.2M • Cash-adjusted working capital of $3.16
Slide 8: Positioned for Growth
Positioned for Growth Capital position strong R&D investments in target markets organic investments (client service, ERP, software-defined radio, low noise radar, website, capacity and capabilities) harsh environment timing joint venture/M&A Key components in major clients’ systems Strong position i
Slide 9: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Reconciliation of earnings before taxes (GAAP) to EBITDA (non-GAAP) (000's except percentages) Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Revenue $ 12,535 $ 12,397 $ 11,023 $ 9,020 $ 9,646 $ 9,629 $ 7,387 $ 7,174 $
Slide 10: Working Toward Growth
Working Toward Growth ‒ Major clients reporting market softness for equipment purchases ‒ Repeat orders from existing contracts sluggish and under price pressure ‒ Used cash in operations during Q1 2013, requiring close management + Strong new product revenue stream across core business + Solid work
Slide 11: Investment Considerations
Investment Considerations Strong capital position Experienced management team JV/M&A opportunities ~50 years experience Blue chip clients Diverse markets World–class team Quality certified, low cost worldwide manufacturing Industry leading technology, reliability, convenience, support 11
Slide 12: Question and Answer
Question and Answer Visit us: www.lglgroup.com www.mtronpti.com Contact us: Greg Anderson, President and CEO (e-mail: ganderson@lglgroup.com) LaDuane Clifton, CFO (e-mail: lclifton@lglgroup.com) Voice: (407) 298-2000 12