- Continued execution of Five-Point Strategy delivers third
quarter revenue of $32.7 million, up 6% year-over-year while
relatively unchanged from trailing second quarter
- Gross profit margin in third quarter was 46.9%, a 170 basis
point expansion over prior-year period and 70 basis point
improvement over trailing second quarter
- Quarterly net income of $3.0 million grew 18%
year-over-year
- Strong cash generation from operations in the quarter of $6.2
million drove overall cash to $41.7 million enhancing financial
flexibility
- Moderating full year expectations on fluctuations in
demand
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 September 30, 2023.
Nick Grant, President and CEO, commented, “We believe the
effectiveness of our Five-Point Strategy to drive growth and
profitability through geographic and market diversification, deeper
market penetration and broader reach was demonstrated by our strong
financial results in the quarter. Compared with the prior year,
sales to the defense/aerospace, semi, industrial and security
markets contributed to our growth. We continue to invest in
geographic expansion, product development and sales channels to
drive growth in our key target markets. For example, we have
launched several new products across our businesses and are
successfully working with customers to benefit from our broader
product portfolio.”
He continued, “Nonetheless, late in the quarter we experienced
shifts in customer demand causing some headwinds and slowing in
markets that just recently had solid momentum. We believe this was
a result of worsening macroeconomic conditions, sustained higher
interest rates and greater uncertainty regarding capital
investments. As a result, we saw a shift in demand as our customers
slowed purchase decisions and delayed projects. Compared with the
trailing second quarter, the slowdown was especially apparent in
the semi and industrial markets. However, helping to partially
offset these headwinds are promising developments in new markets
and products. While we believe that the diversity in our offerings,
end markets and geographic reach continue to support our long-term
growth goals, we are moderating our expectations for the balance of
2023.”
Third Quarter 2023 Review (see revenue by market and by
segments in accompanying tables)
Three Months Ended
($ in 000s, except per share)
Change
Change
9/30/2023
9/30/2022
$
%
6/30/2023
$
%
Revenue
$32,663
$30,771
$1,892
6.1%
$32,558
$105
0.3%
Gross profit
$15,334
$13,898
$1,436
10.3%
$15,030
$304
2.0%
Gross margin
46.9%
45.2%
46.2%
Operating expenses (incl. intangible
amort.)
$12,051
$10,739
$1,312
12.2%
$11,686
$365
3.1%
Operating income
$3,283
$3,159
$124
3.9%
$3,344
($61)
-1.8%
Operating margin
10.1%
10.3%
10.3%
Net earnings
$2,966
$2,524
$442
17.5%
$2,793
$173
6.2%
Net margin
9.1%
8.2%
8.6%
Earnings per diluted share (“EPS”)
$0.24
$0.23
$0.01
4.3%
$0.24
$0.00
0.0%
Adjusted net earnings (Non-GAAP) (1)
$3,398
$3,016
$382
12.7%
$3,227
$171
5.3%
Adjusted EPS (Non-GAAP) (1)
$0.28
$0.28
$0.00
0.0%
$0.28
$0.00
0.0%
Adjusted EBITDA (Non-GAAP) (1)
$4,583
$4,453
$130
2.9%
$4,795
($212)
-4.4%
Adjusted EBITDA margin (Non-GAAP) (1)
14.0%
14.5%
14.7%
(1) 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 $1.9
million, or 6%. Defense/aerospace revenue increased 77% to $3.4
million while semi revenue was up 3% to $19.8 million. The increase
in semi was driven by front-end applications of induction heating
solutions for silicon carbide crystal growth and wafer epitaxy.
Revenue related to the security, industrial and auto/EV industries
increased 27%, 15% and 10%, respectively.
Compared with the trailing second quarter of 2023, life sciences
revenue increased 36%, security industry revenue was up 18%, and
automotive/EV revenue was up 16%. Semi market revenue grew 5%
driven by increases in both front-end and back-end related sales.
Sales to defense/aerospace and industrial markets saw sequential
declines primarily reflecting the variability in timing of customer
needs from quarter to quarter.
Gross margin expanded 170 basis points compared with the
prior-year period. Strong gross margin in the quarter reflected
higher volume, favorable product mix, improved pricing and
continued focus on productivity improvements. Sequentially, the
70-basis point expansion was primarily the result of a more
favorable product mix.
Operating income grew 4% year-over-year to $3.3 million. While
division operating income increased $0.8 million, or 14%, the
improvement was offset by an increase in corporate development
expenses. Operating margins remained steady at approximately 10%
year-over-year and sequentially.
In addition to the impacts noted above, net income benefitted
from higher interest income on a larger cash balance and increased
18% year-over-year.
Balance Sheet and Cash Flow Review
Cash and cash equivalents at the end of the third quarter of
2023 were $41.7 million, an increase of $4.3 million from June 30,
2023. During the quarter, the Company generated $6.2 million in
cash from operations. Capital expenditures in the third quarter
were $0.3 million, similar to the 2022 third quarter. After paying
down $1.0 million in debt, total debt was $13.1 million at quarter
end.
Third Quarter 2023 Orders and Backlog (see orders by
market in accompanying tables)
Three Months Ended
($ in 000s)
Change
Change
9/30/2023
9/30/2022
$
%
6/30/2023
$
%
Orders
$26,854
$32,680
$(5,826)
-17.8%
$31,431
$(4,577)
-14.6%
Backlog (at quarter end)
$38,769
$47,890
$(9,121)
-19.0%
$44,578
$(5,809)
-13.0%
Orders received in the third quarter were 18% lower than the
prior-year period. Increased demand from the security and
automotive/EV markets partially offset lower demand from the semi,
industrial, defense/aerospace and other markets. Orders more than
doubled for the security market and grew 6% in automotive/EV.
Sequentially, orders were down 15% as growth in security and life
sciences were more than offset by reductions in the remainder of
markets served.
Backlog at September 30, 2023, was $38.8 million, down 19% and
13% from September 30, 2022 and June 30, 2023, respectively.
Approximately 40% of backlog is expected to ship beyond the fourth
quarter of 2023.
Order and backlogs are key performance metrics the management
uses to analyze and measure the Company’s financial performance and
results of operations. Please see “Key Performance Indicators” for
a further explanation of the use and how these metrics are
calculated.
Fourth Quarter and Full Year 2023 Outlook
The Company is moderating its expectations for the remainder of
2023 to reflect the recent shift in customer demand.
Duncan Gilmour, Chief Financial Officer, commented, “Given the
change in customer behavior regarding project timing, order push
outs and decisions on future projects, we believe it is prudent to
moderate our expectations for the fourth quarter. We currently
expect that next year will have a slower start than we originally
anticipated and will gradually improve as we execute on our growth
plans.”
Revenue for the fourth quarter of 2023 is expected to be
approximately $28 million to $30 million with gross margin of
approximately 45%. Fourth quarter 2023 operating expenses,
including amortization, are expected to be approximately $11.7
million. Intangible asset amortization is expected to be
approximately $515,000 pre-tax, which is approximately $430,000
after tax, or $0.04 per share. Net interest income for the fourth
quarter is expected to be similar to the third quarter. The
effective tax rate is expected to be approximately 16% for the
fourth quarter. Weighted average shares are expected to be about
12.2 million in the fourth quarter.
Fourth quarter 2023 estimated EPS is expected to be in the range
of $0.08 to $0.13, while fourth quarter estimated adjusted EPS
(Non-GAAP)(2) is expected to be in the range of $0.12 to $0.17.
For the full year of 2023, the Company is updating its guidance
as follows:
(as
of November 3, 2023)
Current 2023 Guidance
Previous Guidance
Revenue
$125 million to $127 million
$127 million to $131 million
Gross margin
Unchanged
Approximately 46%
Operating expenses
~$47 million
$46 million to $47 million
Intangible asset amort
expense
Unchanged
Approximately $2.1 million
Intangible asset amort exp.
after tax
Unchanged
Approximately $1.7 million
Effective tax rate
Unchanged
16% to 17%
Capital expenditures
Unchanged
1% to 2% of sales
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.
_________________________________________
(2) Fourth 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, November 10, 2023. To listen to the
archived call, dial (412) 317-6671 and enter replay pin number
13741799. 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
orders and backlog as key performance metrics to analyze and
measure the Company’s financial performance and results of
operations. 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 “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 September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Revenue
$
32,663
$
30,771
$
97,140
$
84,423
Cost of revenue
17,329
16,873
51,724
45,964
Gross profit
15,334
13,898
45,416
38,459
Operating expenses:
Selling expense
4,367
4,009
13,483
11,498
Engineering and product development
expense
1,802
1,866
5,689
5,649
General and administrative expense
5,882
4,864
16,099
14,623
Total operating expenses
12,051
10,739
35,271
31,770
Operating income
3,283
3,159
10,145
6,689
Interest expense
(168
)
(179
)
(526
)
(457
)
Other income
423
59
678
32
Earnings before income tax expense
3,538
3,039
10,297
6,264
Income tax expense
572
515
1,721
1,047
Net earnings
$
2,966
$
2,524
$
8,576
$
5,217
Earnings per common share - basic
$
0.25
$
0.24
$
0.76
$
0.49
Weighted average common shares outstanding
- basic
11,886,005
10,695,867
11,294,306
10,655,469
Earnings per common share - diluted
$
0.24
$
0.23
$
0.74
$
0.48
Weighted average common shares and common
share equivalents outstanding - diluted
12,212,317
10,864,540
11,665,850
10,840,644
inTEST CORPORATION
Consolidated Balance
Sheets
(In thousands)
September 30,
December 31,
2023
2022
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
41,685
$
13,434
Restricted cash
-
1,142
Trade accounts receivable, net of
allowance for credit losses of $499 and $496, respectively
20,710
21,215
Inventories
22,156
22,565
Prepaid expenses and other current
assets
1,672
1,695
Total current assets
86,223
60,051
Property and equipment:
Machinery and equipment
6,829
6,625
Leasehold improvements
3,581
3,242
Gross property and equipment
10,410
9,867
Less: accumulated depreciation
(7,267
)
(6,735
)
Net property and equipment
3,143
3,132
Right-of-use assets, net
4,755
5,770
Goodwill
21,578
21,605
Intangible assets, net
16,959
18,559
Deferred tax assets
1,381
280
Restricted certificates of deposit
100
100
Other assets
444
569
Total assets
$
134,583
$
110,066
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Current portion of Term Note
$
4,100
$
4,100
Current portion of operating lease
liabilities
1,730
1,645
Accounts payable
7,296
7,394
Accrued wages and benefits
4,030
3,907
Accrued professional fees
1,188
884
Customer deposits and deferred revenue
3,709
4,498
Accrued sales commissions
1,248
1,468
Domestic and foreign income taxes
payable
1,245
1,409
Other current liabilities
1,557
1,564
Total current liabilities
26,103
26,869
Operating lease liabilities, net of
current portion
3,501
4,705
Term Note, net of current portion
8,967
12,042
Contingent consideration
1,002
1,039
Other liabilities
397
455
Total liabilities
39,970
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; 12,237,070 and 11,063,271 shares issued,
respectively
122
111
Additional paid-in capital
53,960
31,987
Retained earnings
41,430
32,854
Accumulated other comprehensive
earnings
2
218
Treasury stock, at cost; 75,758 and 34,308
shares, respectively
(901
)
(214
)
Total stockholders' equity
94,613
64,956
Total liabilities and stockholders'
equity
$
134,583
$
110,066
inTEST CORPORATION
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended September
30,
2023
2022
CASH FLOWS FROM OPERATING
ACTIVITIES
Net earnings
$
8,576
$
5,217
Adjustments to reconcile net earnings to
net cash provided by (used in) operating activities:
Depreciation and amortization
3,515
3,674
Provision for excess and obsolete
inventory
385
307
Foreign exchange loss
17
107
Amortization of deferred compensation
related to stock-based awards
1,623
1,373
Discount on shares sold under Employee
Stock Purchase Plan
21
28
Loss on disposal of property and
equipment
164
45
Deferred income tax benefit
(1,101
)
(1,162
)
Adjustment to contingent consideration
liability
(358
)
-
Changes in assets and liabilities:
Trade accounts receivable
480
(4,900
)
Inventories
(9
)
(8,549
)
Prepaid expenses and other current
assets
21
(907
)
Other assets
9
(1
)
Operating lease liabilities
(1,275
)
(1,064
)
Accounts payable
(100
)
3,947
Accrued wages and benefits
125
(527
)
Accrued professional fees
305
(153
)
Customer deposits and deferred revenue
(794
)
(827
)
Accrued sales commissions
(220
)
310
Domestic and foreign income taxes
payable
(166
)
(672
)
Other current liabilities
320
35
Other liabilities
(17
)
61
Net cash provided by (used in)
operating activities
11,521
(3,658
)
CASH FLOWS FROM INVESTING
ACTIVITIES
Refund of final working capital adjustment
related to Acculogic
-
371
Purchase of property and equipment
(983
)
(1,043
)
Purchase of short-term investments
-
(3,494
)
Net cash used in investing
activities
(983
)
(4,166
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Net proceeds from public offering of
common stock
19,244
-
Repayments of Term Note
(3,075
)
(2,933
)
Proceeds from shares sold under Employee
Stock Purchase Plan
118
148
Proceeds from stock options exercised
978
38
Acquisition of treasury stock-shares
surrendered by employees to satisfy tax liability
(687
)
(10
)
Net cash provided by (used in)
financing activities
16,578
(2,757
)
Effects of exchange rates on cash
(7
)
(576
)
Net cash provided by (used in) all
activities
27,109
(11,157
)
Cash and cash equivalents at beginning
of period
14,576
21,195
Cash and cash equivalents at end of
period
$
41,685
$
10,038
inTEST CORPORATION
Revenue by Market
(In thousands)
(Unaudited)
($ in 000s)
Three Months Ended
Change
Change
9/30/2023
9/30/2022
$
%
6/30/2023
$
%
Revenue
Semi
$19,767
60.5%
$19,170
62.3%
$597
3.1%
$18,833
57.8%
$934
5.0%
Industrial
2,456
7.5%
2,130
6.9%
326
15.3%
2,806
8.6%
(350)
-12.5%
Auto/EV
1,789
5.5%
1,621
5.3%
168
10.4%
1,542
4.7%
247
16.0%
Life Sciences
1,540
4.7%
1,715
5.6%
(175)
-10.2%
1,135
3.5%
405
35.7%
Defense/Aerospace
3,392
10.4%
1,914
6.2%
1,478
77.2%
3,890
11.9%
(498)
-12.8%
Security
1,102
3.4%
871
2.8%
231
26.5%
936
2.9%
166
17.7%
Other
2,617
8.0%
3,350
10.9%
(733)
-21.9%
3,416
10.6%
(799)
-23.4%
$32,663
100.0%
$30,771
100.0%
$1,892
6.1%
$32,558
100.0%
$105
0.3%
Orders by Market
(In thousands)
(Unaudited)
($ in 000s)
Three Months Ended
Change
Change
9/30/2023
9/30/2022
$
%
6/30/2023
$
%
Orders
Semi
$12,935
48.2%
$19,181
58.7%
(6,246)
-32.6%
$14,721
46.9%
$(1,786)
-12.1%
Industrial
1,637
6.1%
2,309
7.1%
(672)
-29.1%
5,756
18.3%
(4,119)
-71.6%
Auto/EV
3,051
11.3%
2,870
8.8%
181
6.3%
3,276
10.4%
(225)
-6.9%
Life Sciences
931
3.5%
927
2.8%
4
0.4%
609
1.9%
322
52.9%
Defense/Aerospace
3,032
11.3%
3,149
9.6%
(117)
-3.7%
3,216
10.2%
(184)
-5.7%
Security
2,212
8.2%
1,072
3.3%
1,140
106.3%
456
1.5%
1,756
385.1%
Other
3,056
11.4%
3,172
9.7%
(116)
-3.7%
3,397
10.8%
(341)
-10.0%
$26,854
100.0%
$32,680
100.0%
(5,826)
-17.8%
$31,431
100.0%
$(4,577)
-14.6%
inTEST CORPORATION
Segment Data
(In thousands)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30
2023
2022
2023
2022
Revenue:
Electronic Test
$
11,547
$
10,408
$
32,911
$
28,983
Environmental Technologies
7,000
7,631
23,178
22,131
Process Technologies
14,116
12,732
41,051
33,309
Total Revenue
$
32,663
$
30,771
$
97,140
$
84,423
Division operating income:
Electronic Test
$
3,268
$
2,406
$
8,487
$
6,486
Environmental Technologies
523
1,021
2,479
2,893
Process Technologies
2,909
2,465
8,177
5,764
Total division operating income
6,700
5,892
19,143
15,143
Corporate expenses
(2,902
)
(2,138
)
(7,416
)
(6,312
)
Acquired intangible amortization
(515
)
(595
)
(1,582
)
(2,142
)
Interest expense
(168
)
(179
)
(526
)
(457
)
Other income
423
59
678
32
Earnings before income tax
expense
$
3,538
$
3,039
$
10,297
$
6,264
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
9/30/2023
9/30/2022
6/30/2023
Net earnings
$
2,966
$
2,524
$
2,793
Acquired intangible amortization
515
595
523
Tax adjustments
(83
)
(103
)
(89
)
Adjusted net earnings
(Non-GAAP)
$
3,398
$
3,016
$
3,227
Diluted weighted average shares
outstanding
12,212
10,865
11,697
Earnings per diluted share:
Net earnings
$
0.24
$
0.23
$
0.24
Acquired intangible amortization
0.05
0.06
0.05
Tax adjustments
(0.01
)
(0.01
)
(0.01
)
Adjusted EPS (Non-GAAP)
$
0.28
$
0.28
$
0.28
Reconciliation of Net Earnings and Net
Margin to Adjusted EBITDA (Non-GAAP) and
Adjusted EBITDA Margin
(Non-GAAP):
Three Months Ended
9/30/2023
9/30/2022
6/30/2023
Net earnings
$
2,966
$
2,524
$
2,793
Acquired intangible amortization
515
595
523
Net interest expense (income)
(276
)
166
43
Income tax expense
572
515
572
Depreciation
262
203
259
Non-cash stock-based compensation
544
450
605
Adjusted EBITDA (Non-GAAP)
$
4,583
$
4,453
$
4,795
Revenue
32,663
30,771
32,558
Net margin
9.1
%
8.2
%
8.6
%
Adjusted EBITDA margin
(Non-GAAP)
14.0
%
14.5
%
14.7
%
Reconciliation of Fourth Quarter 2023
Estimated Earnings Per Diluted Share to
Estimated Adjusted EPS
(Non-GAAP):
Low
High
Estimated earnings per diluted
share
$
0.08
$
0.13
Estimated acquired intangible
amortization
0.05
0.05
Estimated tax adjustments
(0.01
)
(0.01
)
Estimated adjusted EPS
(Non-GAAP)
$
0.12
$
0.17
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231103050785/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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