Slide 1: inTEST Corporation Q1 2024 Financial Results Conference Call
inTEST Corporation Q1 2024 Financial Results Conference Call Nick Grant, President and CEO Duncan Gilmour, CFO and Treasurer May 6, 2024
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: Execution of 5-Point Strategy Driving Results
Execution of 5-Point Strategy Driving Results 5-Point Strategy ➢ Effective execution of 5-Point Strategy … ▪ Drives market diversification to help offset cyclicality ▪ Creates focus on innovation and application expertise Global & Innovation & Market Differentiation ➢ First quarter revenue of $29.8
Slide 4: Orders and Backlog
Orders and Backlog(1) ($ in millions) Orders ➢ Alfamation added $1.8 million in orders Years Quarters ➢ Q1 orders down 26% y/y $129.6 ▪ $8.1 million decline from semi primarily due to $116.6 $108.6 $30.8 front-end weakness $101.9 $27.5 ▪ $2.3 million combined decline from life $22.8 sciences and ind
Slide 5: Revenue
Revenue ($ in millions) Years Quarters ➢ $1.4 million from Alfamation, primarily in auto/EV $123.3 $121.2 $31.9 $116.8 $27.9 $29.8 ➢ Q1 2024 revenue down $2.1 million y/y $84.9 ▪ $2.7 million decline in semi sales ▪ Industrial market up $1.1 million 2021 2022 2023 TTM Q1 Q1 2023 Q4 2023 Q1 2024 ▪ De
Slide 6: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Years Quarters ➢ Q1 gross margin of 43.8% contracted 80 bps compared with Q4 2023 $57.0 $15.1 ➢ Margin contraction impacted by stub period $53.4 $55.0 for the acquisition: 100 bps dilution $12.4 $13.1 $41.2 ▪ Expect Alfamation normalized gross margin to be sim
Slide 7: Operating Expenses
Operating Expenses Continuing to invest to support 5-Point Strategy for Growth ($ in millions) Operating expenses as a % of sales ➢ Q1 2024 operating expenses up $1.1 million versus Q1 2023 38.6% 36.6% 37.7% 39.3% 36.1% 40.7% 42.2% ▪ $650,000 in higher corporate development Years Quarters expenses ▪
Slide 8: Earnings and Adjusted EBITDA
Earnings and Adjusted EBITDA(1) ($ in millions, except per share data) Net Earnings and Adjusted EBITDA/ (1) (1) EPS and Adjusted EPS Adjusted EBITDA Margin Quarters Quarters $0.29 $4.8 $0.25 $0.16 $2.8 $2.4 $0.12 $0.10 $1.5 $1.8 $0.05 $0.7 15.1% 8.7% 6.1% Q1 23 Q4 23 Q1 24 Q1 23 Q4 23 Q1 24 Years Y
Slide 9: Capital Structure and Cash Flow
Capital Structure and Cash Flow ($ in millions) Year Capitalization Cash Flow Three Months Ended Ended 3/31/24 12/31/23 3/31/24 3/31/23 12/31/23 Net cash provided by Cash and cash equivalents $ 27.3 $ 45.3 $ 2.1 $ 2.5 $ 16.2 operating activities Total debt $ 20.4 $ 12.0 Capital expenditures (0.3) (0
Slide 10: Outlook for 2024
Outlook for 2024 Second Quarter Outlook(1) Revenue: $34 million to $36 million 5-Point Strategy Gross margin: 44% to 45% Operating expenses: $14.5 million to $15 million Intangible asset amortization expense: ~$1.5 million Amortization (after tax): ~$1.2 million (or ~$0.10 per share) Global & Innova
Slide 11: Executing to Plan
Executing to Plan Managing tough headwinds from semi market • Back-end stabilizing while slow down in front-end now evident • Furthering innovation with new products • Deepening reach within existing customers • Continuing to add new customers Diversified markets helping to offset cyclicality of sem
Slide 12: Conference Call Playback Info and Upcoming Events
Conference Call Playback Info ➢ Replay Number: (412) 317-6671 passcode: 13745674 ➢ Telephone replay available through Monday, May 13, 2024 ➢ Webcast / Presentation / Replay available at www.intest.com/investor-relations ➢ Transcript, when available, at www.intest.com/investor-relations Upcoming Even
Slide 13: Supplemental Information
inTEST Corporation Q1 2024 Financial Results Conference Call Supplemental Information May 6, 2024
Slide 14: Executing to Plan
Executing to Plan ($ in millions) 25 $200 to $250 2 0 0 to Potential Future R 202 Acquisitions + C AG ~30% $140 to $150 $117 $123 $85 $54 2020 2021 2022 2023 2024E 2025E Actual Revenue Estimated Revenue(1) (1) Estimated revenue, including estimated revenue from future potential acquisitions, is base
Slide 15: Driving Scale to Deliver Growth in Earnings
Driving Scale to Deliver Growth in Earnings ($ in millions) Division Operating Income(1) Adjusted EBITDA(2) Net Earnings ~ $40 + ~ $30 + ~ $20+ - $22 $23 + $19 $16 $16 $12 $9 $8 $7 22% 19% 18% ~20% 14% 14% 13% ~15% 9% 7% 8% ~10% ∕∕ (3) ∕∕ ∕∕ 2021 2022 2023 2025E 2021 2022 2023 2025E (3) 2021 2022 20
Slide 16: Reconciliation of Net Earnings to Adjusted Net Earnings and EPS
Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) and Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share (Non-GAAP) ($ in thousands, except per share amounts) Three Months Ended 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Net earnings $ 2,817 $ 2,793 $ 2,277 $
Slide 17: Reconciliation of Net Earnings to Adjusted Net Earnings and EPS (Annual)
Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) and Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share (Non-GAAP) ($ in thousands, except per share amounts) Years Ended December 31, TTM Q1 2021 2022 2023 2024 Net earnings $ 7,283 $ 8,461 $ 9,342 $ 7,187 Acquired int
Slide 18: Reconciliation of Net Earnings to Adjusted EBITDA
Reconciliation of Net Earnings and Net Margin to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP) ($ in thousands) Three Months Ended 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Net earnings $ 2,817 $ 2,793 $ 2,277 $ 1,455 $ 662 Acquired intangible amortization 544 523 515 513
Slide 19: Reconciliation of Net Earnings to Adjusted EBITDA (Annual)
Reconciliation of Net Earnings and Net Margin to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP) ($ in thousands) Years Ended December 31, TTM Q1 2021 2022 2023 2024 Net earnings $ 7,283 $ 8,461 $ 9,342 $ 7,187 Acquired intangible amortization 1,440 2,694 2,095 2,146 Net interest ex
Slide 20: Reconciliation of Second Quarter 2024 Estimated EPS
Reconciliation of Second Quarter 2024 Estimated Earnings Per Diluted Share to Estimated Adjusted Earnings Per Diluted Share (Non-GAAP) Q2 2024E Low High Estimated earnings per diluted share $ 0.00 $ 0.06 Estimated acquired intangible amortization 0.12 0.12 Estimated tax adjustments (0.02) (0.02) Est
Slide 21: Segment Reporting (Quarterly)
Segment Reporting (Quarterly) ($ in thousands) Three Months Ended 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Electronic Test $ 10,371 $ 10,993 $ 11,547 $ 8,105 $ 11,116 Environmental Technologies 8,042 8,136 7,000 7,623 6,828 Process Technologies 13,506 13,429 12,394 12,156 11,880 Total Reve
Slide 22: Segment Reporting (12-Months)
Segment Reporting (12-Months) ($ in thousands) Years Ended TTM 12/31/2022 12/31/2023 3/31/2024 Electronic Test $ 40,219 $ 41,016 $ 41,761 Environmental Technologies 30,172 30,801 29,587 Process Technologies 46,437 51,485 49,859 Total Revenue $ 116,828 $ 123,302 $ 121,207 % of % of % of divisional di