- Continued execution of 5-Point Strategy generated 10% revenue
growth year-over-year achieving upper end of guidance range
- Demonstrated strong operating leverage with 22.6% operating
income growth year-over-year to $3.3 million
- Delivered net earnings of $2.8 million, up 32.0% for a net
margin of 8.6%, and earnings per diluted share of $0.24, up 20%
over prior-year period
- Adjusted EBITDA (Non-GAAP)(1) was $4.8 million and adjusted
EBITDA margin (Non-GAAP)(1) was 14.7%
- Completed $20 Million At-The-Market Offering at an Average
Sales Price of $21.70 per Share
- Updating full year revenue guidance to $127 million to $131
million
inTEST Corporation (NYSE American: INTT), a global supplier of
innovative test and process technology solutions for use in
manufacturing and testing in key target markets which include
automotive/EV, defense/aerospace, industrial, life sciences,
security, and semiconductor (“semi”), today announced financial
results for the quarter ended June 30, 2023.
Nick Grant, President and CEO, commented, “The inTEST team
continues to deliver to plan and we believe our efforts to
diversify our markets have served us well. Sales grew
year-over-year in the semiconductor markets, particularly in the
backend with continued demand for our high quality, custom
manipulators, integrated docking and electrical interface solutions
for mixed-signal and analog integrated circuit production testing.
There was also strong demand for our thermal test solutions for the
defense/aerospace markets, our industrial grade image capture
technology for the security industry, and a breadth of our
solutions for other markets. Encouragingly, orders were up 2%
sequentially driven by demand from our industrial,
defense/aerospace, automotive/EV, security and other markets. This
included new orders for our Thermonics chillers for testing,
development and production of high-powered traction inverters used
in EVs, as well as the growing recognition of our induction heating
solutions as an environmentally preferred technology in many
industrial applications.”
He continued, “We are actively executing on our initiatives to
expand our market presence, develop new products, and identify
opportunities for increased aftermarket support. We are building
the talent pool and culture to achieve our goals while also
continuing to pursue acquisition targets to enhance our product
offerings, expand our addressable markets and deepen our presence
in our served industries.”
(1) Adjusted EBITDA and adjusted EBITDA margin are non-GAAP
financial measures. Further information can be found under
“Non-GAAP Financial Measures.” See also the reconciliations
of GAAP financial measures to non-GAAP financial measures that
accompany this press release.
Second Quarter 2023 Review (see revenue by market and by
segments in accompanying tables)
Three Months Ended
($ in 000s)
Change
Change
6/30/2023
6/30/2022
$
%
3/31/2023
$
%
Revenue
$32,558
$29,571
$2,987
10.1%
$31,919
$639
2.0%
Gross profit
$15,030
$13,548
$1,482
10.9%
$15,052
($22)
-0.1%
Gross margin
46.2%
45.8%
47.2%
Operating expenses (incl. intangible
amort.)
$11,686
$10,820
$866
8.0%
$11,534
$152
1.3%
Operating income
$3,344
$2,728
$616
22.6%
$3,518
($174)
-4.9%
Operating margin
10.3%
9.2%
11.0%
Net earnings
$2,793
$2,116
$677
32.0%
$2,817
($24)
-0.9%
Net margin
8.6%
7.2%
8.8%
Earnings per diluted share (“EPS”)
$0.24
$0.20
$0.04
20.0%
$0.25
($0.01)
-4.0%
Adjusted net earnings (Non-GAAP) (2)
$3,227
$2,719
$508
18.7%
$3,269
($42)
-1.3%
Adjusted EPS (Non-GAAP) (2)
$0.28
$0.25
$0.03
12.0%
$0.29
($0.01)
-3.4%
Adjusted EBITDA (Non-GAAP) (2)
$4,795
$4,193
$602
14.4%
$4,826
($31)
-0.6%
Adjusted EBITDA margin (Non-GAAP) (2)
14.7%
14.2%
15.1%
(2) Adjusted net earnings, adjusted EPS, adjusted EBITDA, and
adjusted EBITDA margin are non-GAAP financial measures. Further
information can be found under “Non-GAAP Financial Measures.” See
also the reconciliations of GAAP financial measures to non-GAAP
financial measures that accompany this press release.
Compared with the prior-year period, revenue increased $3.0
million, or 10%. Revenue related to the defense/aerospace industry
more than doubled to $3.9 million from higher sales of thermal test
chambers and flying probe test sets. Semiconductor industry revenue
of $18.8 million was up 15% from strong sales for both front-end
applications of induction heating solutions for silicon carbide and
epitaxy crystal growth and traditional back-end semi testing
applications.
Compared with the first quarter of 2023, growth in semi market
revenue was primarily driven by higher front-end related sales,
which increased 27%. Defense/aerospace revenue was up 37% driven by
greater sales of thermal test chambers. Sales to industrial,
automotive/EV, life sciences and security experienced modest
declines sequentially primarily reflecting the variability in
timing of customer needs from quarter to quarter.
Gross margin expanded 40 basis points compared with the
prior-year period. On a sequential basis, it contracted 100 basis
points and was in line with guidance. Gross margin in the first
quarter of 2023 benefitted from favorable product mix.
Operating expenses were up $0.9 million over the prior-year
period, reflecting annual merit increases and continued investments
in engineering, sales and marketing. Nonetheless, second quarter
operating expenses as a percent of revenue improved to 35.9%
compared with 36.6% in last year’s second quarter, which we believe
demonstrates continued operating leverage improvement as sales
grow. This operating leverage improvement contributed to the 22.6%
growth in operating income compared with last year’s second
quarter.
Balance Sheet and Cash Flow Review
Cash and cash equivalents at the end of the reported period were
$37.4 million. This was an increase of $22.0 million over the
trailing first quarter of 2023, reflecting $2.9 million in cash
generated by operations combined with
$19.2 million in net proceeds from the recently completed
At-The-Market (“ATM”) equity offering. At quarter end, total debt
was $14.1 million, down $1.0 million from March 31, 2023. For the
first half of 2023, the Company generated $5.3 million in cash from
operations assisted by improving working capital efficiencies as
supply chains normalized, enabling inventory improvements.
Capital expenditures were $375,000 in the 2023 second quarter,
similar to last year’s second quarter. For the first six months,
capital expenditures were $709,000, also in line with last
year.
Second Quarter 2023 Orders and Backlog (see orders by
market in accompanying tables)
Three Months Ended
Change
Change
6/30/2023
6/30/2022
$
%
3/31/2023
$
%
Orders
$31,431
$40,518
$(9,087)
-22.4%
$30,824
$607
2.0%
Backlog (at quarter end)
$44,578
$45,981
$(1,403)
-3.1%
$45,705
$(1,127)
-2.5%
Orders received in the second quarter were 22% lower compared
with the record level achieved in the prior-year period. Increased
demand from the industrial, defense/aerospace and automotive/EV
markets helped to offset lower demand from the semi, life sciences,
security and other markets. Orders more than doubled for the
industrial markets, grew 70% in defense/aerospace, and increased
19% in automotive/EV. Sequentially, orders grew across most markets
with notable strength in security, defense/aerospace,
automotive/EV, industrial and other markets.
Backlog at June 30, 2023, was $44.6 million, down 3.1% and 2.5%
from June 30, 2022 and March 31, 2023, respectively. Approximately
45% of backlog is expected to ship beyond the third quarter of
2023.
Third Quarter and Full Year 2023 Outlook
Revenue for the third quarter of 2023 is expected to be similar
to the second quarter with gross margin of approximately 46%. Third
quarter 2023 operating expenses, including amortization, are also
expected to be similar to the second quarter. Intangible asset
amortization is expected to be approximately $520,000 pre-tax,
which is approximately $430,000 after tax, or $0.03 per share.
Interest expense is expected to be approximately $175,000 for the
quarter and the effective tax rate is expected to be approximately
16% to 17% for the year. The Company should benefit from interest
income due to its higher cash balance which should mostly offset
the increase in weighted average shares from the recently completed
ATM. Weighted average shares are expected to be about 12.4 million
in the third quarter.
Third quarter 2023 estimated EPS is expected to be in the range
of $0.20 to $0.24, while third quarter estimated adjusted EPS
(Non-GAAP)(3) is expected to be in the range of $0.23 to $0.27.
For the full year of 2023, based on strong second quarter
results, the Company is updating its guidance as follows:
(as of August 4, 2023)
Current 2023 Guidance
Previous Guidance
Revenue
$127 million to $131 million
$125 million to $130 million
Gross margin
~46%
~46% to ~47%
Operating expenses
$46 million to $47 million
$45 million to $47 million
Intangible asset amort
expense
Unchanged
~$2.1 million
Intangible asset amort exp.
after tax
Unchanged
~$1.7 million
Effective tax rate
Unchanged
16% to 17%
Capital expenditures
Unchanged
1% to 2% of sales
Weighted average share
count
~12.4 million in Q3 2023
NA
The foregoing guidance is based on management’s current views
with respect to operating and market conditions and customers’
forecasts. It also assumes macroeconomic conditions remain
unchanged through the end of the year and does not take into
account any extraordinary non-operating expenses that may occur
from time to time. Actual results may differ materially from what
is provided here today as a result of, among other things, the
factors described under “Forward-Looking Statements” below. Further
information about non-GAAP measures can be found under “Non-GAAP
Financial Measures” and the reconciliations of GAAP financial
measures to non-GAAP financial measures that accompany this press
release.
_________________________________________
(3) Third quarter 2023 estimated adjusted EPS is a
forward-looking non-GAAP financial measure. Further information can
be found under “Forward-looking Non-GAAP Financial Measures.” See
also the reconciliations of GAAP financial measures to non-GAAP
financial measures that accompany this press release.
Conference Call and Webcast
The Company will host a conference call and webcast today at
8:30 a.m. ET. During the conference call, management will review
the financial and operating results and discuss inTEST’s corporate
strategy and outlook. A question-and-answer session will follow. To
listen to the live call, dial (201) 689-8263. In addition, the
webcast and slide presentation may be found at
https://www.intest.com/investor-relations.
A telephonic replay will be available from 11:30 a.m. ET on the
day of the call through Friday, August 11, 2023. To listen to the
archived call, dial (412) 317-6671 and enter replay pin number
13739637. The webcast replay can be accessed via the investor
relations section at www.intest.com, where a transcript will also
be posted once available.
About inTEST Corporation
inTEST Corporation is a global supplier of innovative test and
process technology solutions for use in manufacturing and testing
in key target markets including automotive/EV, defense/aerospace,
industrial, life sciences, and security, as well as both the
front-end and back-end of the semiconductor manufacturing industry.
Backed by decades of engineering expertise and a culture of
operational excellence, inTEST solves difficult thermal,
mechanical, and electronic challenges for customers worldwide while
generating strong cash flow and profits. inTEST’s strategy
leverages these strengths to grow organically and with acquisitions
through the addition of innovative technologies, deeper and broader
geographic reach, and market expansion. For more information, visit
www.intest.com.
Non-GAAP Financial Measures and Forward-Looking Non-GAAP
Financial Measures
In addition to disclosing results that are determined in
accordance with generally accepted accounting practices in the
United States (“GAAP”), we also disclose non-GAAP financial
measures. These non-GAAP financial measures consist of adjusted net
earnings, adjusted earnings per diluted share (adjusted EPS),
adjusted EBITDA, and adjusted EBITDA margin.
Definition of Non-GAAP Measures
The Company defines these non-GAAP measures as follows:
- Adjusted net earnings is derived by adding acquired intangible
amortization, adjusted for the related income tax expense
(benefit), to net earnings.
- Adjusted earnings per diluted share (adjusted EPS) is derived
by dividing adjusted net earnings by diluted weighted average
shares outstanding.
- Adjusted EBITDA is derived by adding acquired intangible
amortization, net interest expense, income tax expense,
depreciation, and stock-based compensation expense to net
earnings.
- Adjusted EBITDA margin is derived by dividing adjusted EBITDA
by revenue.
These results are provided as a complement to the results
provided in accordance with GAAP. Adjusted net earnings and
adjusted earnings per diluted share (adjusted EPS) are non-GAAP
financial measures presented to provide investors with meaningful,
supplemental information regarding our baseline performance before
acquired intangible amortization charges as management believes
this expense may not be indicative of our underlying operating
performance. Adjusted EBITDA and adjusted EBITDA margin are
non-GAAP financial measures presented primarily as a measure of
liquidity as they exclude non-cash charges for acquired intangible
amortization, depreciation and stock-based compensation. In
addition, adjusted EBITDA and adjusted EBITDA margin also exclude
the impact of interest income or expense and income tax expense or
benefit, as management believes these expenses may not be
indicative of our underlying operating performance.
Management’s Use of Non-GAAP Measures
The non-GAAP financial measures presented in this press release
are used by management to make operational decisions, to forecast
future operational results, and for comparison with our business
plan, historical operating results and the operating results of our
peers. Reconciliations from net earnings and earnings per diluted
share (EPS) to adjusted net earnings and adjusted earnings per
diluted share (adjusted EPS) and from net earnings and net margin
to adjusted EBITDA and adjusted EBITDA margin, are contained in the
tables below.
Limitations of adjusted net earnings, adjusted earnings per
diluted share (adjusted EPS), adjusted EBITDA, and adjusted EBITDA
margin
Each of our non-GAAP measures have limitations as analytical
tools. They should not be viewed in isolation or as a substitute
for GAAP measures of earnings or cash flows. Limitations may
include the cash portion of interest expense, income tax (benefit)
provision, charges related to intangible asset amortization and
stock-based compensation expense. These items could significantly
affect our financial results.
Management believes these Non-GAAP financial measures are
important in evaluating our performance, results of operations, and
financial position. We use non-GAAP financial measures to
supplement our GAAP results in order to provide a more complete
understanding of the factors and trends affecting our business.
Adjusted net earnings, adjusted earnings per diluted share
(adjusted EPS), adjusted EBITDA, and adjusted EBITDA margin are not
alternatives to net earnings, earnings per diluted share or margin
as calculated and presented in accordance with GAAP. As such, they
should not be considered or relied upon as substitutes or
alternatives for any such GAAP financial measure. We strongly urge
you to review the reconciliations of adjusted net earnings,
adjusted earnings per diluted share (adjusted EPS), adjusted
EBITDA, and adjusted EBITDA margin along with our financial
statements included elsewhere in this press release. We also
strongly urge you not to rely on any single financial measure to
evaluate our business. In addition, because adjusted net earnings,
adjusted earnings per diluted share (adjusted EPS), adjusted
EBITDA, and adjusted EBITDA margin are not measures of financial
performance under GAAP and are susceptible to varying calculations,
the adjusted net earnings, adjusted earnings per diluted share
(adjusted EPS), adjusted EBITDA, and adjusted EBITDA margin
measures as presented in this press release may differ from and may
not be comparable to similarly titled measures used by other
companies.
Forward-Looking Non-GAAP Financial Measures
This release includes certain forward-looking non-GAAP financial
measures, including estimated adjusted earnings per diluted share
(estimated adjusted EPS). We have provided these non-GAAP measures
for future guidance for the same reasons that were outlined above
for historical non-GAAP measures.
We have reconciled non-GAAP forward-looking estimated adjusted
EPS to its most directly comparable GAAP measure. The
reconciliation from estimated net earnings per diluted share (EPS)
to estimated adjusted EPS is contained in the table below.
Key Performance Indicators
In addition to the foregoing non-GAAP measures, management uses
the following key performance metrics to analyze and measure the
Company’s financial performance and results of operations: orders
and backlog. Management uses orders and backlog as measures of
current and future business and financial performance, and these
may not be comparable with measures provided by other companies.
Orders represent written communications received from customers
requesting the Company to provide products and/or services. Backlog
is calculated on the basis of firm purchase orders we receive for
which revenue has not yet been recognized. Management believes
tracking orders and backlog are useful as it often times is a
leading indicator of future performance. In accordance with
industry practice, contracts may include provisions for
cancellation, termination, or suspension at the discretion of the
customer.
Given that each of orders and backlog are operational measures
and that the Company's methodology for calculating orders and
backlog does not meet the definition of a non-GAAP measure, as that
term is defined by the U.S. Securities and Exchange Commission, a
quantitative reconciliation for each is not required or
provided.
Forward-Looking Statements
This press release 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, such as statements of the Company’s plans,
strategies and intentions, or our future performance or goals, that
are based upon management's current expectations. These
forward-looking statements can often be identified by the use of
forward-looking terminology such as “continue,” “believe,” “could,”
“expects,” “may,” “will,” “should,” “plan,” “potential,”
“forecasts,” “outlook,” “anticipates,” “targets,” “estimates,” or
similar terminology. These statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by such statements. Such risks and
uncertainties include, but are not limited to, any mentioned in
this press release as well as the Company’s ability to execute on
its 5-Point Strategy, achieve high single-digit growth in 2023,
realize the potential benefits of acquisitions and successfully
integrate any acquired operations, grow the Company’s presence in
its key target and international markets, manage supply chain
challenges, convert backlog to sales and to ship product in a
timely manner; the success of the Company’s strategy to diversify
its markets; the impact of inflation on the Company’s business and
financial condition; indications of a change in the market cycles
in the semi market or other markets served; changes in business
conditions and general economic conditions both domestically and
globally including rising interest rates and fluctuation in foreign
currency exchange rates; changes in the demand for semiconductors;
access to capital and the ability to borrow funds or raise capital
to finance potential acquisitions or for working capital; changes
in the rates and timing of capital expenditures by the Company’s
customers; and other risk factors set forth from time to time in
the Company’s Securities and Exchange Commission filings,
including, but not limited to, the Annual Report on Form 10-K for
the year ended December 31, 2022. Any forward-looking statement
made by the Company in this press release is based only on
information currently available to management and speaks to
circumstances only as of the date on which it is made. The Company
undertakes no obligation to update the information in this press
release to reflect events or circumstances after the date hereof or
to reflect the occurrence of anticipated or unanticipated events,
except as required by law.
inTEST CORPORATION
Consolidated Statements of
Operations
(In thousands, except share
and per share data)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenue
$
32,558
$
29,571
$
64,477
$
53,652
Cost of revenue
17,528
16,023
34,395
29,091
Gross profit
15,030
13,548
30,082
24,561
Operating expenses:
Selling expense
4,661
4,033
9,116
7,489
Engineering and product development
expense
1,983
1,859
3,887
3,783
General and administrative expense
5,042
4,928
10,217
9,759
Total operating expenses
11,686
10,820
23,220
21,031
Operating income
3,344
2,728
6,862
3,530
Interest expense
(176
)
(141
)
(358
)
(278
)
Other income (expense)
197
(17
)
255
(27
)
Earnings before income tax expense
3,365
2,570
6,759
3,225
Income tax expense
572
454
1,149
532
Net earnings
$
2,793
$
2,116
$
5,610
$
2,693
Earnings per common share - basic
$
0.25
$
0.20
$
0.51
$
0.25
Weighted average common shares outstanding
- basic
11,241,183
10,653,268
10,998,456
10,635,270
Earnings per common share - diluted
$
0.24
$
0.20
$
0.49
$
0.25
Weighted average common shares and common
share equivalents outstanding - diluted
11,696,569
10,814,799
11,392,617
10,828,696
inTEST CORPORATION
Consolidated Balance
Sheets
(In thousands)
June 30,
December 31,
2023
2022
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
37,435
$
13,434
Restricted cash
-
1,142
Trade accounts receivable, net of
allowance for credit losses of $501 and $496, respectively
21,581
21,215
Inventories
23,070
22,565
Prepaid expenses and other current
assets
1,495
1,695
Total current assets
83,581
60,051
Property and equipment:
Machinery and equipment
6,779
6,625
Leasehold improvements
3,520
3,242
Gross property and equipment
10,299
9,867
Less: accumulated depreciation
(7,081
)
(6,735
)
Net property and equipment
3,218
3,132
Right-of-use assets, net
5,177
5,770
Goodwill
21,707
21,605
Intangible assets, net
17,613
18,559
Deferred tax assets
965
280
Restricted certificates of deposit
100
100
Other assets
496
569
Total assets
$
132,857
$
110,066
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Current portion of Term Note
$
4,100
$
4,100
Current portion of operating lease
liabilities
1,731
1,645
Accounts payable
5,735
7,394
Accrued wages and benefits
3,570
3,907
Accrued professional fees
1,010
884
Customer deposits and deferred revenue
5,176
4,498
Accrued sales commissions
1,202
1,468
Domestic and foreign income taxes
payable
1,184
1,409
Other current liabilities
1,660
1,564
Total current liabilities
25,368
26,869
Operating lease liabilities, net of
current portion
3,959
4,705
Term Note, net of current portion
9,992
12,042
Contingent consideration
1,063
1,039
Other liabilities
411
455
Total liabilities
40,793
45,110
Commitments and Contingencies
Stockholders' equity:
Preferred stock, $0.01 par value;
5,000,000 shares authorized; no shares issued or outstanding
-
-
Common stock, $0.01 par value; 20,000,000
shares authorized; 12,185,220 and 11,063,271 shares issued,
respectively
122
111
Additional paid-in capital
53,296
31,987
Retained earnings
38,464
32,854
Accumulated other comprehensive
earnings
470
218
Treasury stock, at cost; 38,514 and 34,308
shares, respectively
(288
)
(214
)
Total stockholders' equity
92,064
64,956
Total liabilities and stockholders'
equity
$
132,857
$
110,066
inTEST CORPORATION
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June
30,
2023
2022
CASH FLOWS FROM OPERATING
ACTIVITIES
Net earnings
$
5,610
$
2,693
Adjustments to reconcile net earnings to
net cash provided by (used in) operating activities:
Depreciation and amortization
2,350
2,528
Provision for excess and obsolete
inventory
266
230
Foreign exchange (gain) loss
(47
)
98
Amortization of deferred compensation
related to stock-based awards
1,079
923
Discount on shares sold under Employee
Stock Purchase Plan
14
18
Loss on disposal of property and
equipment
98
61
Deferred income tax benefit
(685
)
(805
)
Changes in assets and liabilities:
Trade accounts receivable
(372
)
(6,607
)
Inventories
(693
)
(4,894
)
Prepaid expenses and other current
assets
212
(87
)
Other assets
2
(395
)
Operating lease liabilities
(849
)
(701
)
Accounts payable
(1,607
)
3,506
Accrued wages and benefits
(351
)
(981
)
Accrued professional fees
117
(471
)
Customer deposits and deferred revenue
625
(264
)
Accrued sales commissions
(266
)
219
Domestic and foreign income taxes
payable
(220
)
(477
)
Other current liabilities
76
264
Other liabilities
(17
)
61
Net cash provided by (used in)
operating activities
5,342
(5,081
)
CASH FLOWS FROM INVESTING
ACTIVITIES
Refund of final working capital adjustment
related to Acculogic
-
371
Purchase of property and equipment
(709
)
(708
)
Purchase of short-term investments
-
(3,477
)
Net cash used in investing
activities
(709
)
(3,814
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Net proceeds from public offering of
common stock
19,244
-
Repayments of Term Note
(2,050
)
(1,908
)
Proceeds from shares sold under Employee
Stock Purchase Plan
83
103
Proceeds from stock options exercised
900
-
Acquisition of treasury stock-shares
surrendered by employees to satisfy tax liability
(74
)
(10
)
Net cash provided by (used in)
financing activities
18,103
(1,815
)
Effects of exchange rates on cash
123
58
Net cash provided by (used in) all
activities
22,859
(10,652
)
Cash and cash equivalents at beginning of
period
14,576
21,195
Cash and cash equivalents at end of
period
$
37,435
$
10,543
Cash payments for:
Domestic and foreign income taxes
$
2,060
$
1,865
inTEST CORPORATION
Revenue by Market
(In thousands)
(Unaudited)
($ in 000s)
Three Months Ended
Change
Change
6/30/2023
6/30/2022
$
%
3/31/2023
$
%
Revenue
Semi
$18,833
57.8
%
$16,409
55.5
%
$2,424
14.8
%
$17,683
55.4
%
$1,150
6.5
%
Industrial
2,806
8.6
%
2,930
9.9
%
(124
)
-4.2
%
3,137
9.8
%
(331
)
-10.6
%
Auto/EV
1,542
4.7
%
3,594
12.2
%
(2,052
)
-57.1
%
2,597
8.1
%
(1,055
)
-40.6
%
Life Sciences
1,135
3.5
%
1,169
3.9
%
(34
)
-2.9
%
1,513
4.8
%
(378
)
-25.0
%
Defense/Aerospace
3,890
11.9
%
1,423
4.8
%
2,467
173.4
%
2,839
8.9
%
1,051
37.0
%
Security
936
2.9
%
794
2.7
%
142
17.9
%
966
3.0
%
(30
)
-3.1
%
Other
3,416
10.6
%
3,252
11.0
%
164
5.0
%
3,184
10.0
%
232
7.3
%
$32,558
100.0
%
$29,571
100.0
%
$2,987
10.1
%
$31,919
100.0
%
$639
2.0
%
Orders by Market
(In thousands)
(Unaudited)
($ in 000s)
Three Months Ended
Change
Change
6/30/2023
6/30/2022
$
%
3/31/2023
$
%
Orders
Semi
$14,721
46.9
%
$26,732
66.0
%
$(12,011
)
-44.9
%
$18,346
59.5
%
$(3,625
)
-19.8
%
Industrial
5,756
18.3
%
2,366
5.8
%
3,390
143.3
%
4,142
13.5
%
1,614
39.0
%
Auto/EV
3,276
10.4
%
2,750
6.8
%
526
19.1
%
2,044
6.6
%
1,232
60.3
%
Life Sciences
609
1.9
%
1,535
3.8
%
(926
)
-60.3
%
1,936
6.3
%
(1,327
)
-68.5
%
Defense/Aerospace
3,216
10.2
%
1,897
4.7
%
1,319
69.5
%
1,977
6.4
%
1,239
62.7
%
Security
456
1.5
%
989
2.4
%
(533
)
-53.9
%
212
0.7
%
244
115.1
%
Other
3,397
10.8
%
4,249
10.5
%
(852
)
-20.1
%
2,167
7.0
%
1,230
56.8
%
$31,431
100.0
%
$40,518
100.0
%
$(9,087
)
-22.4
%
$30,824
100.0
%
$607
2.0
%
inTEST CORPORATION
Segment Data
(In thousands)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30
2023
2022
2023
2022
Revenue:
Electronic Test
$ 10,993
$ 9,797
$ 21,364
$ 18,575
Environmental Technologies
8,136
7,507
16,178
14,500
Process Technologies
13,429
12,267
26,935
20,577
Total Revenue
$32,558
$ 29,571
$ 64,477
$ 53,652
Division operating income:
Electronic Test
$ 2,641
$ 2,193
$ 5,219
$ 4,080
Environmental Technologies
943
1,070
1,956
1,872
Process Technologies
2,592
2,569
5,268
3,299
Total division operating income
6,176
5,832
12,443
9,251
Corporate expenses
(2,309
)
(2,339
)
(4,514
)
(4,174
)
Acquired intangible amortization
(523
)
(765
)
(1,067
)
(1,547
)
Interest expense
(176
)
(141
)
(358
)
(278
)
Other income (expense)
197
(17
)
255
(27
)
Earnings before income tax
expense
$ 3,365
$ 2,570
$ 6,759
$ 3,225
inTEST CORPORATION
Reconciliation of GAAP
Measures to Non-GAAP Financial Measures
(In thousands, except per
share and percentage data)
(Unaudited)
Reconciliation of Net Earnings to
Adjusted Net Earnings (Non-GAAP) and
Earnings Per Diluted Share to Adjusted
EPS (Non-GAAP):
Three Months Ended
6/30/2023
6/30/2022
3/31/2023
Net earnings
$
2,793
$
2,116
$
2,817
Acquired intangible amortization
523
765
544
Tax adjustments
(89
)
(162
)
(92
)
Adjusted net earnings (Non-GAAP)
$
3,227
$
2,719
$
3,269
Diluted weighted average shares
outstanding
11,697
10,815
11,089
Earnings per diluted share:
Net earnings
$
0.24
$
0.20
$
0.25
Acquired intangible amortization
0.05
0.07
0.05
Tax adjustments
(0.01
)
(0.02
)
(0.01
)
Adjusted EPS (Non-GAAP)
$
0.28
$
0.25
$
0.29
Reconciliation of Net Earnings and Net
Margin to Adjusted EBITDA (Non-GAAP) and
Adjusted EBITDA Margin
(Non-GAAP):
Three Months Ended
6/30/2023
6/30/2022
3/31/2023
Net earnings
$
2,793
$
2,116
$
2,817
Acquired intangible amortization
523
765
544
Net interest expense
43
133
169
Income tax expense
572
454
577
Depreciation
259
174
245
Non-cash stock-based compensation
605
551
474
Adjusted EBITDA (Non-GAAP)
$
4,795
$
4,193
$
4,826
Revenue
32,558
29,571
31,919
Net margin
8.6
%
7.2
%
8.8
%
Adjusted EBITDA margin (Non-GAAP)
14.7
%
14.2
%
15.1
%
Reconciliation of Third Quarter 2023
Estimated Earnings Per Diluted Share to
Estimated Adjusted EPS
(Non-GAAP):
Low
High
Estimated earnings per diluted share
$
0.20
$
0.24
Estimated acquired intangible
amortization
0.04
0.04
Estimated tax adjustments
(0.01
)
(0.01
)
Estimated adjusted EPS (Non-GAAP)
$
0.23
$
0.27
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230804128526/en/
inTEST Corporation Duncan Gilmour Chief Financial Officer
and Treasurer Tel: (856) 505-8999
Investors: Deborah K. Pawlowski, Kei Advisors LLC
dpawlowski@keiadvisors.com Tel: (716) 843-3908
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