Slide 1: inTEST Corporation Investor Presentation
inTEST Corporation Investor Presentation Nick Grant Duncan Gilmour President and CEO Chief Financial Officer March 2023
Slide 2: Forward-Looking Statements
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: Unlocking The Potential
Unlocking The Potential Vision To be the supplier of choice for innovative test and process technology solutions Leverage our deep industry knowledge & expertise to develop and deliver high quality, Mission innovative customer solutions and superior support for complex global challenges Nick Grant,
Slide 4: Transforming inTEST
Transforming inTEST Supplier of Choice for Innovative Test and Process Technology Solutions Robust long-term growth strategy Emphasis on diversified growth markets Electronic and acquisitions Test 34% Process 2022 Technologies Clear, consistent, continuous investor and Revenue 40% employee communica
Slide 5: 5-Point Strategy Drives Long-Term Value
5-Point Strategy Drives Long-Term Value ➢ Grow Top-Line Through Geographic ➢ Drive Innovation and and Market Expansion Technological Differentiation ▪ Further penetrate existing markets with Global & ▪ Leverage expertise to deliver highly-valued Innovation & infrastructure investments Market Differe
Slide 6: Strong Foundation For Growth
Strong Foundation For Growth inTEST: Known for Highly-Engineered, Customer-Driven Solutions Growing and Diversified Markets Blue-Chip Global Customer Global Presence Blue-Chip Global Customer Base Base ➢ Semiconductor ➢ 2022 Revenue: $116.8M ➢ Industrial ▪ 35.1% APAC ➢ Automotive/EV ▪ 45.1% Americas
Slide 7: Serving Large and Diverse Markets
Serving Large and Diverse Markets ($ in millions) inTEST $2.0B+ SAM* Entering 2022 Electronic Environmental Process Test Technologies Technologies ~$350M ~$680M ~$1.3B+ Serviceable Addressable Markets (SAM) $150 $200 $180 $500 $310 $1B+ Semi Test In-Circuit Test Thermal Test Cold Chain Induction Ima
Slide 8: Driving Market Leadership/Opportunities
Driving Market Leadership/Opportunities Targeting markets with strong, secular tailwinds inTEST Revenue by Market* Expected 5-Year Markets Market Growth** Served 3% to 6% Semi Markets Industrial 3% to 6% Defense/Aero 3% to 6% 2021 2022 2025E Targeted Growth Markets Auto/EV 5% to 8% Life Science 6% t
Slide 9: Electronic Test
Electronic Test Engineering solutions for the toughest challenges in automated test ➢ Growth drivers: semi mixed signal/analog focused and strength in EV market; expanded presence in defense and life sciences ➢ Markets: Back-end Semi Test, Industrial, Auto/EV, Life Sciences and Defense/Aero ➢ Bringi
Slide 10: Environmental Technologies
Environmental Technologies Creating and controlling environmental conditions in test, process and storage applications ➢ Growth drivers: strong position in Back-end Semi Test/R&D, increasing demand in defense and life sciences ▪ Life Sciences cold chain solutions serves vaccine storage/transportatio
Slide 11: Process Technologies
Process Technologies Technical expertise and customized solutions for industrial applications ➢ Growth drivers: solutions for silicon carbide crystal growth, automotive/EV manufacturing, security and life sciences driving significant demand for induction heating and imaging solutions ➢ Addressable m
Slide 12: Making M&A a Core Competency
Making M&A a Core Competency Completed three acquisitions (4th Quarter 2021) M&A Eco-System Disciplined M&A Process Acquire quality businesses to drive shareholder value Expand into fast growing markets Offer broader portfolio of solutions Strategy M&A Development Execution Drive further market dive
Slide 13: Financial Overview
Financial Overview 13
Slide 14: Revenue
Revenue ($ in millions) ➢ Record Q4 revenue up $10.0 million, or 45% y/y $32.4 $29.6 $30.8 ▪ Organic revenue (non-GAAP)(1) of $28.6 million grew 28% y/y $24.1 $22.4 ▪ Included $3.8 million of acquired revenue ➢ Strong demand across all technology offerings and end-markets Q4 21 Q1 22 Q2 22 Q3 22 Q4
Slide 15: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Quarters $15.0 ➢ Sequentially, Q4 margin improved 100 bp to $13.5 $13.9 46.2% from 45.2% driven by higher volume and $11.0 $10.3 beneficial product mix ➢ Year over year, Q4 gross profit increased $4.6 million, or 45% 46.3% 45.7% 45.8% 45.2% 46.2% Q4 21 44.7% Q
Slide 16: Operating Expenses
Operating Expenses Investing in people and marketing to support 5-Point Strategy for Growth ($ in millions) Operating expenses as a % of sales ➢ As percent of revenue, operating expenses 45.0% 42.4% 36.6% 34.9% 33.8% declined to 33.8% in Q4 2022 versus 45.0% in the prior year and 34.9% in the prior
Slide 17: Earnings and Adjusted EBITDA
Earnings and Adjusted EBITDA ($ in millions, except per share data) Net Earnings and Adjusted EBITDA / (1) EPS and Adjusted EPS (Non-GAAP) Adjusted EBITDA Margin (Non-GAAP)(1) $0.34 Quarters $5.3 $0.28 $0.30 $4.5 $0.25 $4.2 $0.23 $3.2 $0.20 $2.5 $2.1 $2.1 $0.12 $1.4 $0.07 $0.6 $0.05 $0.3 $0.03 6.1%
Slide 18: Capital Structure and Cash Flow
Capital Structure and Cash Flow ($ in millions) Capitalization Cash Flow Year Ended 12/31/22 9/30/22 12/31/22 12/31/21 Cash and cash equivalents $ 13.4 $ 8.9 Net cash provided by (used $ (1.4) $ 10.8 Restricted cash $ 1.1 $ 1.1 in) operating activities Short term investments $ - $ 3.5 Capital expend
Slide 19: Orders and Backlog
Orders and Backlog ($ in millions) Orders $40.5 $32.7 ➢ Q4 orders up 3% y/y with increases across all end $30.5 $31.3 $25.1 markets except in semi ▪ Book-to-bill(1) of 0.97x ▪ Decline in semi as Q4 2021 benefitted from a $10.0 million front-end, long-term order Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 ▪ Sequen
Slide 20: 2023 Expectations
2023 Expectations ➢ Executing 5-Point Strategy to continue driving growth 5-Point Strategy ➢ 2023 Q1 Guidance(1) ▪ Q1 revenue: $30 million to $32 million ▪ Q1 gross margin: ~45% ▪ Q1 operating expenses: $11.1 million to $11.3 million Global & Innovation & Market • Q1 amortization (after tax) ~$450,0
Slide 21: Executing to Plan
Executing to Plan ($ in millions) ~$200 to $250 Potential Future Acquisitions $125 - $130 $117 $85 $54 ∕∕ 2020 2021 2022 2023E 2025E Actual Revenue Estimated Revenue(1) (1) Estimated 2025 revenue, including estimated revenue from future potential acquisitions, is based on management’s current views
Slide 22: Scale Expected to Drive Operating Leverage
Scale Expected to Drive Operating Leverage ($ in millions) Division Operating Income(1) Adjusted EBITDA(2) Net Earnings (Unaudited) ~ $40 + ~ $30 + $22 ~ $20 + $19 $16 $12 $8 $7 22% 19% ~20% 14% 14% ~15% 9% 7% ~10% ∕∕ ∕∕ ∕∕ 2021 2022 2025E (3) 2021 2022 2025E (3) 2021 2022 2025E(3) (1) See segment r
Slide 23: Execution on Track with Plan
Execution on Track with Plan Strong demand for inTEST’s innovative technologies and engineering expertise Diversified end markets with strong secular growth drivers Growing customer base, deepening customer reach and expanding geographically Financial flexibility to execute growth strategy Executing
Slide 24: inTEST Corporation
inTEST Corporation Investor Presentation Nick Grant Duncan Gilmour President and CEO Chief Financial Officer March 2023
Slide 25: Supplemental Information
Supplemental Information 25
Slide 26: Reconciliation of Revenue to Organic Revenue (Non-GAAP)
Reconciliation of Revenue to Organic Revenue (Non-GAAP) ($ in thousands) Three Months Ended December 31, December 31, Change 2022 2021 $ % Total revenue $ 32,405 $ 22,358 $ 10,047 44.9% (1) Less: acquired revenue (3,778) n/a Organic revenue (Non-GAAP) $ 28,627 $ 22,358 $ 6,269 28.0% Years Ended Dece
Slide 27: Reconciliation of Net Earnings to Adjusted Net Earnings and EPS
Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) and Earnings Per Share – Diluted to Adjusted Earnings Per Share – Diluted (Non-GAAP) ($ in thousands, except per share amounts) Three Months Ended Years Ended 12/31/2021 3/31/2022 6/30/2022 9/30/2022 12/31/2022 12/31/2021 12/31/2022
Slide 28: Reconciliation of Net Earnings to Adjusted EBITDA (Quarterly)
Reconciliation of Net Earnings to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP) ($ in thousands) Three Months Ended 12/31/2021 3/31/2022 6/30/2022 9/30/2022 12/31/2022 Net earnings $ 287 $ 577 $ 2,116 $ 2,524 $ 3,244 Acquired intangible amortization 522 782 765 595 552 Interest ex
Slide 29: Reconciliation of Net Earnings to Adjusted EBITDA (Annual)
Reconciliation of Net Earnings to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP) ($ in thousands) Years Ended December 31, 2019 2020 2021 2022 Net earnings (loss) $ 2,322 $ (895) $ 7,283 $ 8,461 Acquired intangible amortization 1,257 1,233 1,440 2,694 Interest expense - 33 89 600 I
Slide 30: Reconciliation of Q1 2023 Estimated EPS to Adjusted EPS
Reconciliation of First Quarter 2023 Estimated Earnings Per Share – Diluted to Estimated Adjusted Earnings Per Share – Diluted (Non-GAAP) Low High Estimated earnings per share – diluted $ 0.21 $ 0.26 Estimated acquired intangible amortization 0.05 0.05 Estimated tax adjustments (0.01) (0.01) Estimat
Slide 31: Segment Reporting
Segment Reporting ($ in thousands) Beginning in the first quarter of 2022, the Company made a change to its reportable segments from two reportable segments to three reportable segments – Electronic Test, Environmental Technologies and Process Technologies. These segments, which operate as Divisions