- Sequentially first quarter revenue increased 7%, or $1.9
million, including $1.4 million in revenue from the Alfamation
acquisition
- Compared with the prior-year period, overall sales declined
while the acquisition and growth from diversified markets,
specifically industrial and defense/aerospace, helped to offset the
weakness in semiconductor sales
- Earnings per diluted share was $0.05 while adjusted earnings
per diluted share1 was $0.10
- Generated $2.1 million in cash from operations in the quarter;
cash at March 31, 2024 was $27.3 million and reflects the $19
million in cash used for the Alfamation acquisition
- Adjusting full year revenue expectation to $140 million to $150
million which represents 18% growth over 2023 at the mid-point of
the range
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 March 31, 2024. Results include
Alfamation S.p.A. (“acquisition” or “Alfamation”) from the date of
acquisition which was March 12, 2024.
Nick Grant, President and CEO, commented, “Our first quarter
results continue to reflect the tempered semiconductor market
conditions we saw exiting 2023. While down year-over-year,
sequentially sales were up although margins were impacted by the
timing of the acquisition, the mix in sales, and higher
professional fees. On the order front and outlook, we saw a sudden
shift in order trends as a number of opportunities which we had
expected late in the quarter were either delayed or reduced in
size. It appears that capacity build in the semiconductor industry
in conjunction with slower demand has stalled some customers’
investments in new capital projects, specifically in front-end
semi. While our pipeline across all markets remains healthy, the
rate of opportunity conversion to orders over the last few quarters
has been slowing. Given the unexpected lower rate of orders in the
quarter we are moderating our full year outlook.”
He added, “Nonetheless, we have a record backlog of $55.5
million that measurably benefited from the $22.8 million in backlog
from Alfamation. This backlog provides us further confidence in our
expectations for the acquisition. Importantly, we remain highly
encouraged with our long-term outlook. We are continuing to build
inTEST into a global leader of test and process technologies by
introducing new products, innovating to create solutions for our
customers’ toughest challenges and being application experts in the
industries we serve. We expect key target markets to continue to
benefit from ongoing macro tailwinds such as reshoring/near
shoring, automation, electronification and digitization,
productivity enhancements and rebuilding of domestic defense
capabilities. Our acquisition pipeline also remains active.
Although near term visibility is limited, we expect to continue to
deliver growth in 2024 aided by the acquisition of Alfamation.”
_______________________
1 Adjusted earnings per diluted share is a
non-GAAP financial measure. Further information can be found under
“Non-GAAP Financial Measures.” See also the reconciliations of GAAP
financial measures to non-GAAP financial measures that accompany
this press release.
First Quarter 2024 Review (see revenue by market and by
segments in accompanying tables)
Three Months Ended
($ in 000s)
Change
Change
3/31/2024
3/31/2023
$
%
12/31/2023
$
%
Revenue
$
29,824
$
31,919
$
(2,095
)
-6.6
%
$
27,884
$
1,940
7.0
%
Gross profit
$
13,076
$
15,052
$
(1,976
)
-13.1
%
$
12,449
$
627
5.0
%
Gross margin
43.8
%
47.2
%
44.6
%
Operating expenses (incl. intangible
amort.)
$
12,584
$
11,534
$
1,050
9.1
%
$
11,340
$
1,244
11.0
%
Operating income
$
492
$
3,518
$
(3,026
)
-86.0
%
$
1,109
$
(617
)
-55.6
%
Operating margin
1.6
%
11.0
%
4.0
%
Net earnings
$
662
$
2,817
$
(2,155
)
-76.5
%
$
1,455
$
(793
)
-54.5
%
Net margin
2.2
%
8.8
%
5.2
%
Earnings per diluted share (“EPS”)
$
0.05
$
0.25
$
(0.20
)
-80.0
%
$
0.12
$
(0.07
)
-58.3
%
Adjusted net earnings (Non-GAAP)2
$
1,162
$
3,269
$
(2,107
)
-64.5
%
$
1,910
$
(748
)
-39.2
%
Adjusted EPS (Non-GAAP)2
$
0.10
$
0.29
$
(0.19
)
-65.5
%
$
0.16
$
(0.06
)
-37.5
%
Adjusted EBITDA (Non-GAAP)2
$
1,811
$
4,826
$
(3,015
)
-62.5
%
$
2,418
$
(607
)
-25.1
%
Adjusted EBITDA margin (Non-GAAP)2
6.1
%
15.1
%
8.7
%
Compared with the prior-year period, first quarter revenue was
down $2.1 million and was impacted by $2.7 million lower sales to
the semi market. This was partially offset by the $1.4 million
contribution in revenue from the acquisition, primarily in
automotive/EV, as well as an increase of $1.1 million to the
industrial market, and a 14%, or $0.4 million, increase in sales to
the defense/aerospace market. Sequentially, revenue increased by
$1.9 million as a result of semi revenue growing 39%,
defense/aerospace sales increasing 34% and the acquisition
offsetting declines in auto/EV.
Gross margin was 43.8% in the first quarter, a 340-basis point
contraction compared with the prior-year period primarily due to
the timing of the acquisition, volume and product mix. Due to the
stub period of ownership and timing of revenue and costs, the
acquisition was dilutive to gross margin by 100 basis points.
Operating expenses increased primarily because of $350,000 of
incremental expenses gained from the acquisition, $650,000 of
incremental corporate development expenses and approximately
$200,000 in higher professional fees associated with reporting of
2023 financials and Sarbanes-Oxley Act compliance. These costs were
somewhat offset by lower selling costs and expense management.
With the benefit of other income in the quarter of $0.4 million,
net earnings were $0.7 million, or $0.05 per diluted share.
Adjusted net earnings (Non-GAAP) 2 were $1.2 million, or $0.10
adjusted EPS (Non-GAAP) 2.
Balance Sheet and Cash Flow Review
Cash and cash equivalents (including restricted cash) at the end
of the first quarter of 2024 were $27.3 million, down from $45.3
million at the end of December 31, 2023 as a result of
approximately $19 million in cash used for the acquisition. During
the quarter, the Company generated $2.1 million in cash from
operations. Capital expenditures were $0.3 million in the first
quarter of 2024, similar to the prior-year period.
At quarter end, total debt was $20.4 million which includes
approximately $9.4 million assumed with the acquisition. The
Company repaid approximately $1 million in debt in the quarter. At
March 31, 2024, the Company had $30 million available under its
delayed draw term loan facility and no borrowings under the $10
million revolving credit facility. On May 2, 2024, the Company
extended the maturity of its delayed draw term loan and revolving
credit facility to May 2, 2031. In addition, the allowed window to
draw on the term loan was extended to May 2, 2026.
_______________________
2 Adjusted net earnings, adjusted EPS,
adjusted EBITDA, and adjusted EBITDA margin are non-GAAP financial
measures. Further information can be found under “Non-GAAP
Financial Measures.” See also the reconciliations of GAAP financial
measures to non-GAAP financial measures that accompany this press
release
First Quarter 2024 Orders and Backlog (see orders by
market in accompanying tables)
Three Months Ended
($ in 000s)
Change
Change
3/31/2024
3/31/2023
$
%
12/31/2023
$
%
Orders
$
22,799
$
30,824
$
(8,025
)
-26.0
%
$
27,523
$
(4,724
)
-17.2
%
Backlog (at quarter end)
$
55,481
$
45,705
$
9,776
21.4
%
$
40,130
$
15,351
38.3
%
First quarter orders of $22.8 million, including $1.8 million in
orders related to the acquisition, declined 26% over the prior-year
period. The decline reflects an $8.1 million, or 44%, decline in
orders from the semi market. Life sciences and industrial markets
declined $2.3 million combined due to the timing of orders
received. Approximately $5 million in expected orders were delayed
or reduced by customers at the end of the quarter.
Sequentially, orders declined 17.2%. Growth in demand in
automotive/EV and back-end semi partially offset sequential
declines in front-end semi, life sciences and other markets. The
sequential decline in orders for the defense/aerospace and
industrial markets were largely the result of tough
comparators.
Backlog at March 31, 2024, was $55.5 million and included $22.8
million of backlog associated with the acquisition. Approximately
45% of the backlog is expected to ship beyond the second quarter of
2024.
Second Quarter and Full Year 2024 Outlook
Revenue for the second quarter of 2024 is expected to be in the
range of $34 million to $36 million with gross margin in the range
of approximately 44% to 45%.
Second quarter 2024 operating expenses, including amortization,
are expected to run at approximately $14.5 million to $15 million,
and reflect annual merit increases. Intangible asset amortization
is expected to be approximately $1.5 million pre-tax, or
approximately $1.2 million after tax. Interest expense is expected
to be approximately $195,000 for the quarter.
Based on weighted average shares of 12.3 million, second quarter
2024 EPS is expected to be in the range of $0.00 to $0.06, while
adjusted EPS (Non-GAAP) (1) is expected to be in the range of $0.10
to $0.16.
For the full year of 2024, including first quarter results, the
Company expectations are now as follows:
(As of May 6, 2024)
Current Guidance
Previous Guidance
Revenue
$140 million to $150 million
$145 million to $155 million
Gross margin
44% to 46%
45% to 46%
Operating expenses
$56 million to $58 million
$57 million to $59 million
Intangible asset amort expense
Approximately $5 million
Approximately $4.0 million
Intangible asset amort exp. After
tax
Approximately $4.1 million
Approximately $3.5 million
Effective tax rate
17% to 19%
18% to 20%
Capital expenditures
1% to 2% of sales
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. 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.
Conference Call and Webcast
The Company will host a conference call and webcast today at
4:45 p.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
intest.com/investor-relations.
A telephonic replay will be available from 9:00 p.m. ET on the
day of the call through Monday, May 13, 2024. To listen to the
archived call, dial (412) 317-6671 and enter replay pin number
13745674. The webcast replay can be accessed via the investor
relations section of 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 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 based on firm purchase orders we receive for which
revenue has not yet been recognized. Management believes tracking
orders and backlog are useful as it often 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,” “continuing,”
“could,” “expects,” “guidance,” “may,” “outlook,” “will,” “should,”
“plan,” “potential,” “forecasts,” “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, 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, 2023. 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.
– FINANCIAL TABLES FOLLOW –
inTEST CORPORATION
Consolidated Statements of
Operations
(In thousands, except share
and per share data)
(Unaudited)
Three Months Ended March
31,
2024
2023
Revenue
$
29,824
$
31,919
Cost of revenue
16,748
16,867
Gross profit
13,076
15,052
Operating expenses:
Selling expense
4,590
4,455
Engineering and product development
expense
1,982
1,904
General and administrative expense
6,012
5,175
Total operating expenses
12,584
11,534
Operating income
492
3,518
Interest expense
(140
)
(182
)
Other income
435
58
Earnings before income tax expense
787
3,394
Income tax expense
125
577
Net earnings
$
662
$
2,817
Earnings per common share –
basic
$
0.06
$
0.26
Weighted average common shares outstanding
– basic
12,026,361
10,755,729
Earnings per common share –
diluted
$
0.05
$
0.25
Weighted average common shares and common
share equivalents outstanding – diluted
12,158,297
11,088,664
inTEST CORPORATION
Consolidated Balance
Sheets
(In thousands)
(Unaudited)
March 31,
December 31,
2024
2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
27,331
$
45,260
Trade accounts receivable, net of
allowance for credit losses of $426 and $474, respectively
22,859
18,175
Inventories
31,331
20,089
Prepaid expenses and other current
assets
3,868
2,254
Total current assets
85,389
85,778
Property and equipment:
Machinery and equipment
8,639
7,118
Leasehold improvements
3,932
3,601
Gross property and equipment
12,571
10,719
Less: accumulated depreciation
(7,800
)
(7,529
)
Net property and equipment
4,771
3,190
Right-of-use assets, net
6,270
4,987
Goodwill
33,278
21,728
Intangible assets, net
28,819
16,596
Deferred tax assets
-
1,437
Restricted certificates of deposit
100
100
Other assets
900
1,013
Total assets
$
159,527
$
134,829
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Current portion of Term Note and other
long-term debt
$
9,629
$
4,100
Current portion of operating lease
liabilities
2,017
1,923
Accounts payable
11,395
5,521
Accrued wages and benefits
6,482
4,156
Accrued professional fees
883
1,228
Customer deposits and deferred revenue
5,596
3,797
Accrued sales commissions
1,116
1,055
Domestic and foreign income taxes
payable
509
1,038
Other current liabilities
2,026
1,481
Total current liabilities
39,653
24,299
Operating lease liabilities, net of
current portion
4,644
3,499
Term Note and other long-term debt, net of
current portion
10,808
7,942
Contingent consideration
822
1,093
Deferred revenue, net of current
portion
1,210
1,331
Deferred tax liabilities
1,126
-
Other liabilities
1,947
384
Total liabilities
60,210
38,548
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; 12,566,024 and 12,241,925 shares issued,
respectively
125
122
Additional paid-in capital
56,954
54,450
Retained earnings
42,858
42,196
Accumulated other comprehensive
earnings
311
414
Treasury stock, at cost; 78,515 and 75,758
shares, respectively
(931
)
(901
)
Total stockholders' equity
99,317
96,281
Total liabilities and stockholders'
equity
$
159,527
$
134,829
inTEST CORPORATION
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Three Months Ended March
31,
2024
2023
CASH FLOWS FROM OPERATING
ACTIVITIES
Net earnings
$
662
$
2,817
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization
1,282
1,176
Provision for excess and obsolete
inventory
176
135
Foreign exchange gain
(28
)
(18
)
Amortization of deferred compensation
related to stock-based awards
349
474
Discount on shares sold under Employee
Stock Purchase Plan
8
8
Proceeds from sale of demonstration
equipment, net of gain
19
6
Deferred income tax expense (benefit)
226
(404
)
Changes in assets and liabilities:
Trade accounts receivable
(982
)
291
Inventories
(396
)
(2,038
)
Prepaid expenses and other current
assets
508
(740
)
Other assets
(22
)
2
Operating lease liabilities
(447
)
(423
)
Accounts payable
1,311
403
Accrued wages and benefits
939
(654
)
Accrued professional fees
(342
)
(142
)
Customer deposits and deferred revenue
(782
)
921
Accrued sales commissions
66
(221
)
Domestic and foreign income taxes
payable
(406
)
864
Other current liabilities
70
43
Deferred revenue, net of current
portion
(121
)
-
Other liabilities
(15
)
(16
)
Net cash provided by operating
activities
2,075
2,484
CASH FLOWS FROM INVESTING
ACTIVITIES
Acquisition of business, net of cash
acquired
(18,904
)
-
Purchase of property and equipment
(340
)
(334
)
Net cash used in investing activities
(19,244
)
(334
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from short-term borrowings
273
-
Repayments of long-term borrowings
(1,181
)
(1,025
)
Proceeds from shares sold under Employee
Stock Purchase Plan
46
40
Proceeds from stock options exercised
18
165
Settlement of employee tax liabilities in
connection with treasury stock transaction
(30
)
(33
)
Net cash used in financing activities
(874
)
(853
)
Effects of exchange rates on cash
114
71
Net cash provided by (used in) all
activities
(17,929
)
1,368
Cash, cash equivalents and restricted cash
at beginning of period
45,260
14,576
Cash, cash equivalents and restricted
cash at end of period
$
27,331
$
15,944
inTEST CORPORATION
Revenue by Market
(In thousands)
(Unaudited)
($ in 000s)
Three Months Ended
Change
Change
3/31/2024
3/31/2023
$
%
12/31/2023
$
%
Revenue
Semi
$
14,967
50.2
%
$
17,683
55.4
%
$
(2,716
)
-15.4
%
$
10,743
38.5
%
$
4,224
39.3
%
Industrial
4,187
14.0
%
3,137
9.8
%
1,050
33.5
%
5,911
21.2
%
(1,724
)
-29.2
%
Auto/EV
3,958
13.3
%
2,597
8.1
%
1,361
52.4
%
3,981
14.3
%
(23
)
-0.6
%
Life Sciences
653
2.2
%
1,513
4.8
%
(860
)
-56.8
%
878
3.1
%
(225
)
-25.6
%
Defense/Aerospace
3,239
10.9
%
2,839
8.9
%
400
14.1
%
2,416
8.7
%
823
34.1
%
Security
541
1.8
%
966
3.0
%
(425
)
-44.0
%
819
3.0
%
(278
)
-33.9
%
Other
2,279
7.6
%
3,184
10.0
%
(905
)
-28.4
%
3,136
11.2
%
(857
)
-27.3
%
$
29,824
100.0
%
$
31,919
100.0
%
$
(2,095
)
-6.6
%
$
27,884
100.0
%
$
1,940
7.0
%
Orders by Market
(In thousands)
(Unaudited)
($ in 000s)
Three Months Ended
Change
Change
3/31/2024
3/31/2023
$
%
12/31/2023
$
%
Orders
Semi
$
10,253
45.0
%
$
18,346
59.5
%
$
(8,093
)
-44.1
%
$
13,295
48.3
%
$
(3,042
)
-22.9
%
Industrial
3,093
13.5
%
4,142
13.5
%
(1,049
)
-25.3
%
3,445
12.5
%
(352
)
-10.2
%
Auto/EV
4,041
17.7
%
2,044
6.6
%
1,997
97.7
%
1,822
6.6
%
2,219
121.8
%
Life Sciences
698
3.1
%
1,936
6.3
%
(1,238
)
-63.9
%
877
3.2
%
(179
)
-20.4
%
Defense/Aerospace
2,684
11.8
%
1,977
6.4
%
707
35.8
%
5,161
18.8
%
(2,477
)
-48.0
%
Security
40
0.2
%
212
0.7
%
(172
)
-81.1
%
65
0.2
%
(25
)
-38.5
%
Other
1,990
8.7
%
2,167
7.0
%
(177
)
-8.2
%
2,858
10.4
%
(868
)
-30.4
%
$
22,799
100.0
%
$
30,824
100.0
%
$
(8,025
)
-26.0
%
$
27,523
100.0
%
$
(4,724
)
-17.2
%
inTEST CORPORATION
Segment Data
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2024
2023
Revenue:
Electronic Test
$
11,116
$
10,371
Environmental Technologies
6,828
8,042
Process Technologies
11,880
13,506
Total revenue
$
29,824
$
31,919
Division operating income:
Electronic Test
$
1,813
$
2,578
Environmental Technologies
15
1,013
Process Technologies
1,961
2,676
Total division operating income
3,789
6,267
Corporate expenses
(2,702
)
(2,205
)
Acquired intangible amortization
(595
)
(544
)
Interest expense
(140
)
(182
)
Other income
435
58
Earnings before income tax
expense
$
787
$
3,394
inTEST CORPORATION
Reconciliation of 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
3/31/2024
3/31/2023
12/31/2023
Net earnings
$662
$2,817
$1,455
Acquired intangible amortization
595
544
513
Tax adjustments
(95
)
(92
)
(58
)
Adjusted net earnings
(Non-GAAP)
$1,162
$3,269
$1,910
Diluted weighted average shares
outstanding
12,158
11,089
12,122
Earnings per diluted share:(1)
Net earnings
$0.05
$0.25
$0.12
Acquired intangible amortization
0.05
0.05
0.04
Tax adjustments
(0.01
)
(0.01
)
─
Adjusted EPS (Non-GAAP)
$0.10
$0.29
$0.16
(1) Components may not add up to totals
due to rounding.
Reconciliation of Net Earnings and Net
Margin to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin
(Non-GAAP):
Three Months Ended
3/31/2024
3/31/2023
12/31/2023
Net earnings
$662
$2,817
$1,455
Acquired intangible amortization
595
544
513
Net interest expense (income)
(193
)
169
(340
)
Income tax expense
125
577
111
Depreciation
273
245
255
Non-cash stock-based compensation
349
474
424
Adjusted EBITDA (Non-GAAP)
$1,811
$4,826
$2,418
Revenue
29,824
31,919
27,884
Net margin
2.2
%
8.8
%
5.2
%
Adjusted EBITDA margin
(Non-GAAP)
6.1
%
15.1
%
8.7
%
Reconciliation of Second Quarter 2024
Estimated Earnings Per Diluted Share to Estimated Adjusted EPS
(Non-GAAP):
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
)
Estimated adjusted EPS
(Non-GAAP)
$0.10
$0.16
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240506092811/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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