Slide 1: Innovative Test & Process Solutions Q4 2021 Financial Results
Innovative Test & Process Solutions Q4 2021 Financial Results Conference Call Presentation March 4, 2022 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: Q4 2021: Advancing 5-Point Strategy
Q4 2021: Advancing 5-Point Strategy Leading solutions, increasing market share drove 50% revenue growth 5-Point Strategy • Delivered strong y/y growth in revenue and earnings; achieved record orders in quarter and year • Q4 revenue growth of $7.5 million y/y driven by front-end/back-end Semi Market
Slide 4: Acculogic Adds Electronic Circuit & EV Battery Testing Capabilities
Acculogic Adds Electronic Circuit & EV Battery Testing Capabilities Acculogic, Inc. and its affiliates design and manufacture robotics-based electronic production test equipment and provide application support services for OEM and contract electronic manufacturers. • Closed December 21, 2021 Strateg
Slide 5: Revenue
Revenue ($ in millions) Quarters Q4 revenue up $7.5 million, or 50%, y/y $21.8 $21.1 $22.4 Multimarket: $19.6 $14.9 $6.2 $6.1 $7.5 $10.1 • Strong growth in automotive/EV $7.3 • Benefited from new product introductions $13.3 $15.7 $13.7 $12.3 $7.6 • Expanded customer base Q4 20 Q1 21 Q2 21 Q3 21 Q4 2
Slide 6: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Quarters Q4 gross profit increased $3.6 million y/y • 110 basis point margin expansion $11.0 $10.4 $10.3 $9.5 • Reflects higher volume, improved product mix, and $6.7 operational improvements Sequential margin impacts: 45.2% 48.7% 50.2% 49.2% 46.3% • Less favo
Slide 7: Operating Expenses
Operating Expenses Investing in people and marketing to support 5-Point Strategy for Growth ($ in millions) Incremental expenses impacted quarter 48.4% 35.5% 36.3% 37.1% 45.0% • ~$1.3 million in transaction costs related to $10.1 acquisitions and financing costs • ~$750 thousand in operating expense
Slide 8: Earnings and Adjusted EBITDA
Earnings and Adjusted EBITDA • Focused on leveraging scale and efficiencies Adjusted EBITDA and Margin(2) • Adjusted EPS reflects ~$200 thousand of acquired Quarterly intangible amortization $4.0 $3.3 $3.4 • Earnings impacted by ~$1.6 million of atypical costs, or ~$0.14 per diluted share $1.4 $0.2
Slide 9: Capital Structure and Cash Flow
Capital Structure and Cash Flow ($ in millions) Capitalization Cash Flow Three Months Ended Year Ended 12/31/21 12/31/20 12/31/21 12/31/20 12/31/21 Cash and cash equivalents $ 21.2 $ 10.3 Net cash provided by operating activities $ 2.7 $ 0.8 $ 10.8 Total debt $ 20.1 $ - (GAAP) Total net debt $ (1.1)
Slide 10: Orders and Backlog
Orders and Backlog ($ in millions) Orders $30.5 Strong demand in semiconductor market $25.2 $25.1 $21.1 $9.1 pushed quarter and annual orders to record $17.6 $8.1 $8.6 $7.8 levels $6.5 $21.4 $17.2 $16.5 $13.4 • Orders in Semi exceeded market growth $11.1 • Refocused on opportunities in Semi Q4 20 Q1
Slide 11: Outlook and Perspective
Outlook and Perspective Focused on driving growth and expanding markets & customer base • Integrating acquisitions and extending market reach • Adding technical expertise and driving innovation 5-Point Strategy • Solving customers’ complex problems (1) Global & Strategic 2022 Outlook & Q1 Guidance M
Slide 12: Key Takeaways
Key Takeaways Experienced management team driving an accelerated growth strategy Successful track record of identifying and integrating accretive acquisitions Established and high-value partner in Innovative Test & Process Technology Solutions $ Blue-chip, high-quality global customer base Diversifi
Slide 13: Conference Call Playback Info
Conference Call Playback Info Replay Number: 412-317-6671 passcode: 13725926 Telephone replay available through March 11, 2022 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) 14
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) 15
Slide 16: Estimated Q1 2022 Adjusted EPS Reconciliation
Estimated Q1 2022 Adjusted EPS Reconciliation ($ in thousands) 16
Slide 17: Innovative Test & Process Solutions
Innovative Test & Process Solutions Q4 2021 Financial Results Conference Call Presentation March 4, 2022