- Revenue increased 4% year-over-year and 14% sequentially to a
record $34.0 million due to the acquisition of Alfamation
- Market diversification strategy helped to offset continued
weakness in semiconductor industry
- Orders1 improved 15% sequentially to $26.2 million; excluding
Alfamation, orders improved 10% sequentially
- Earnings per diluted share was $0.02 while adjusted earnings
per diluted share2 was $0.08
- Rightsizing actions result in $1.2 million of annualized
savings to be realized beginning in the third quarter
- Adjusts 2024 guidance to reflect ongoing market conditions
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, 2024. Results include
Alfamation S.p.A. (“acquisition” or “Alfamation”) from the date of
the acquisition, which was March 12, 2024. Alfamation is included
in the Electronic Test division.
Nick Grant, President and CEO, commented, “While we are focused
on innovating with new products, expanding our channels to market
and adding new customers, we are nonetheless facing challenging
market headwinds that now appear to be more persistent than we had
anticipated earlier this year. We benefitted from the addition of
Alfamation in the quarter which contributed $9.7 million in
revenue. This was an unusually strong quarter for the acquisition
given the timing of the sizeable backlog we acquired. We are very
pleased with the integration progress and the synergies we are
already beginning to realize. The teams are working on several
opportunities with technology sharing and cross selling across our
businesses. The addition of Alfamation more than offset the
weakness in the semiconductor industry, and specifically the
dramatic slowdown in the front-end semi market that we have
experienced this year. Sales in the semi market were down 46%, or
$8.7 million, year-over-year and 32%, or $4.8 million
sequentially.”
He added, “We continue to see weak order levels in front-end
semi as we believe the industry in the near term has sufficient
capacity for silicon carbide production. Our long-term view on the
growth in silicon carbide adoption remains intact. Encouragingly,
back-end semi seems to be stabilizing. Nonetheless, given ongoing
broader market conditions, we are taking actions to reduce costs
and better align the businesses with current order levels. Thus far
we have executed on $1.2 million in annualized cost reductions that
we expect to begin to be realized in the second half of the year.
We are also continuing to identify further opportunities to reduce
costs, drive operational efficiencies and improve working capital.
The weak level of orders in the quarter and less visibility into a
second half recovery has resulted in resetting expectations for
2024.”
______________________________
1 Orders and backlog are key performance
metrics. See “Key Performance Indicators” below for important
disclosures regarding inTEST’s use of these metrics.
2 Adjusted earnings per diluted share is a
non-GAAP financial measure. Further information can be found under
“Non-GAAP Financial Measures.” See also the reconciliations of GAAP
financial measures to non-GAAP financial measures that accompany
this press release.
Second Quarter 2024 Review (see revenue by market and by
segments in accompanying tables)
Three Months Ended
($ in 000s)
Change
Change
6/30/2024
6/30/2023
$
%
3/31/2024
$
%
Revenue
$
33,991
$
32,558
$
1,433
4.4
%
$
29,824
$
4,167
14.0
%
Gross profit
$
13,797
$
15,030
$
(1,233
)
-8.2
%
$
13,076
$
721
5.5
%
Gross margin
40.6
%
46.2
%
43.8
%
Operating expenses (incl. intangible
amort.)
$
13,461
$
11,686
$
1,775
15.2
%
$
12,584
$
877
7.0
%
Operating income
$
336
$
3,344
$
(3,008
)
-90.0
%
$
492
$
(156
)
-31.7
%
Operating margin
1.0
%
10.3
%
1.6
%
Net earnings
$
230
$
2,793
$
(2,563
)
-91.8
%
$
662
$
(432
)
-65.3
%
Net margin
0.7
%
8.6
%
2.2
%
Earnings per diluted share (“EPS”)
$
0.02
$
0.24
$
(0.22
)
-91.7
%
$
0.05
$
(0.03
)
-60.0
%
Adjusted net earnings (Non-GAAP)3
$
959
$
3,227
$
(2,268
)
-70.3
%
$
1,162
$
(203
)
-17.5
%
Adjusted EPS (Non-GAAP)2
$
0.08
$
0.28
$
(0.20
)
-71.4
%
$
0.10
$
(0.02
)
-20.0
%
Adjusted EBITDA (Non-GAAP)2
$
2,154
$
4,795
$
(2,641
)
-55.1
%
$
1,811
$
343
18.9
%
Adjusted EBITDA margin (Non-GAAP)2
6.3
%
14.7
%
6.1
%
Compared with the prior-year period, second quarter revenue
increased $1.4 million. The acquisition contributed $9.7 million in
revenue. Auto/EV revenue increased $9.2 million primarily due to
the acquisition. This more than offset the $8.7 million decrease in
sales to the semi market. Additionally, revenue in life sciences
increased $1.1 million which also benefited from the acquisition.
Industrial revenue increased $0.6 million, or 22%, and helped to
offset the $0.7 million combined decline in the defense/aerospace,
security and other markets.
Sequentially, revenue increased by $4.2 million as revenue from
Alfamation and improvements in defense/aerospace, life sciences,
and security more than offset the $4.8 million decline in the semi
market.
Gross margin was 40.6% in the second quarter, a 560-basis point
contraction compared with the prior-year period primarily due to
product mix, including the impact of the acquisition, and lower
volume in the organic business affecting absorption rates.
Operating expenses increased over the prior-year period primarily
because of $2.4 million of incremental expenses attributable to
Alfamation, including $0.4 million of amortization. Excluding the
acquisition, operating expenses were down approximately $0.7
million reflecting lower bonus accruals, lower commission expense,
cost reduction efforts and reduced corporate development
expenses.
Higher interest expense from increased borrowings was somewhat
offset by higher other income. Net earnings for the quarter were
$0.2 million, or $0.02 per diluted share. Adjusted net earnings
(Non-GAAP)3 were $1.0 million, or $0.08 adjusted EPS (Non-GAAP)
2.
___________________________
3 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.
Balance Sheet and Cash Flow Review
During the quarter, the Company used $5.1 million in cash from
operations which included annual bonus payments and higher cash tax
requirement. Cash and cash equivalents at the end of the second
quarter of 2024 were $20.4 million, down $6.9 million at the end of
the first quarter of 2024. Capital expenditures were $0.3 million
in the second quarter of 2024, similar to the prior-year
period.
At quarter end, total debt was $21.1 million, up $9.1 million
from December 31, 2023. The increase from year end reflects the
incremental debt inherited with the acquisition. The Company repaid
approximately $1.1 million in debt in the quarter. At June 30,
2024, the Company had $30 million available under its delayed draw
term loan facility and no borrowings under the $10 million
revolving credit facility. On May 2, 2024, the Company extended the
maturity of its delayed draw term loan and revolving credit
facility to May 2, 2031. In addition, the allowed window to draw on
the term loan was extended to May 2, 2026.
Second Quarter 2024 Orders and Backlog1 (see orders by
market in accompanying tables)
Three Months Ended
($ in 000s)
Change
Change
6/30/2024
6/30/2023
$
%
3/31/2024
$
%
Orders
$
26,182
$
31,431
$
(5,249
)
-16.7
%
$
22,799
$
3,383
14.8
%
Backlog (at quarter end)
$
47,672
$
44,578
$
3,094
6.9
%
$
55,481
$
(7,809
)
-14.1
%
Second quarter orders of $26.2 million, including $3.2 million
in orders attributable to the acquisition, declined 17% versus the
prior-year period, but improved 15%, or $3.4 million, compared with
the first quarter of 2024. The year-over-year decline reflects
general softness across most markets including $3.7 million, or
25%, lower orders from the semi market. Orders from the industrial
market were down $2.3 million, or 40%, against a strong comparable.
Excluding the acquisition in both quarters, the 10%, or $2.0
million, sequential improvement reflects increases in back-end
semi, industrial, life sciences, security and other markets more
than offsetting weakness in automotive/EV.
Backlog at June 30, 2024, was $47.7 million and included $16.3
million of backlog associated with the acquisition. Approximately
50% of the backlog is expected to ship beyond the third quarter of
2024.
Third Quarter and Full Year 2024 Outlook
Revenue for the third quarter of 2024 is expected to be slightly
lower than the second quarter while gross margin is expected to
improve somewhat based on better mix. Third quarter 2024 operating
expenses, including amortization, are expected to be similar to the
second quarter. Intangible asset amortization is expected to be
approximately $0.9 million pre-tax, or approximately $0.7 million
after tax. Interest expense is expected to be approximately
$220,000 for the quarter.
Third quarter 2024 EPS and adjusted EPS (Non-GAAP)2 are expected
to be similar to the second quarter based on the same number of
weighted average shares.
Including first half 2024 results, the Company has updated its
full year 2024 expectations as follows:
(As of August 2, 2024)
Updated Guidance
Previous Guidance
Revenue
$128 million to $133 million
$140 million to $150 million
Gross margin
42% to 43%
44% to 46%
Operating expenses
$53 million to $54 million
$56 million to $58 million
Intangible asset amort expense
Approximately $3.3 million
Approximately $5 million
Intangible asset amort exp. After
tax
Approximately $2.7 million
Approximately $4.1 million
Effective tax rate
17% to 19%
17% to 19%
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
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
intest.com/investor-relations.
A telephonic replay will be available from 12:30 p.m. ET on the
day of the call through Friday, August 9, 2024. To listen to the
archived call, dial (412) 317-6671 and enter replay pin number
13746896. 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,”
“opportunities,” 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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenue
$
33,991
$
32,558
$
63,815
$
64,477
Cost of revenue
20,194
17,528
36,942
34,395
Gross profit
13,797
15,030
26,873
30,082
Operating expenses:
Selling expense
4,105
4,661
8,695
9,116
Engineering and product development
expense
2,218
1,983
4,200
3,887
General and administrative expense
7,138
5,042
13,150
10,217
Total operating expenses
13,461
11,686
26,045
23,220
Operating income
336
3,344
828
6,862
Interest expense
(253
)
(176
)
(393
)
(358
)
Other income
213
197
648
255
Earnings before income tax expense
296
3,365
1,083
6,759
Income tax expense
66
572
191
1,149
Net earnings
$
230
$
2,793
$
892
$
5,610
Earnings per common share -
basic
$
0.02
$
0.25
$
0.07
$
0.51
Weighted average common shares outstanding
- basic
12,234,599
11,241,183
12,130,480
10,998,456
Earnings per common share -
diluted
$
0.02
$
0.24
$
0.07
$
0.49
Weighted average common shares and common
share equivalents outstanding - diluted
12,330,280
11,696,569
12,244,289
11,392,617
inTEST CORPORATION
Consolidated Balance
Sheets
(In thousands)
June 30,
December 31,
2024
2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
20,370
$
45,260
Trade accounts receivable, net of
allowance for credit losses of $416 and $474, respectively
30,066
18,175
Inventories
28,563
20,089
Prepaid expenses and other current
assets
2,379
2,254
Total current assets
81,378
85,778
Property and equipment:
Machinery and equipment
8,900
7,118
Leasehold improvements
4,001
3,601
Gross property and equipment
12,901
10,719
Less: accumulated depreciation
(8,372
)
(7,529
)
Net property and equipment
4,529
3,190
Right-of-use assets, net
11,561
4,987
Goodwill
34,868
21,728
Intangible assets, net
27,058
16,596
Deferred tax assets
-
1,437
Restricted certificates of deposit
100
100
Other assets
1,060
1,013
Total assets
$
160,554
$
134,829
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Current portion of Term Note and other
long-term debt
$
11,989
$
4,100
Current portion of operating lease
liabilities
1,852
1,923
Accounts payable
8,281
5,521
Accrued wages and benefits
4,794
4,156
Accrued professional fees
1,100
1,228
Customer deposits and deferred revenue
5,485
3,797
Accrued sales commissions
804
1,055
Domestic and foreign income taxes
payable
-
1,038
Other current liabilities
1,945
1,481
Total current liabilities
36,250
24,299
Operating lease liabilities, net of
current portion
10,064
3,499
Term Note and other long-term debt, net of
current portion
9,110
7,942
Contingent consideration
814
1,093
Deferred revenue, net of current
portion
1,256
1,331
Deferred tax liabilities
1,790
-
Other liabilities
1,768
384
Total liabilities
61,052
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; 12,591,662 and 12,241,925 shares issued,
respectively
126
122
Additional paid-in capital
57,660
54,450
Retained earnings
43,088
42,196
Accumulated other comprehensive
earnings
(430
)
414
Treasury stock, at cost; 79,382 and 75,758
shares, respectively
(942
)
(901
)
Total stockholders' equity
99,502
96,281
Total liabilities and stockholders'
equity
$
160,554
$
134,829
inTEST CORPORATION
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Six Months Ended
June 30,
2024
2023
CASH FLOWS FROM OPERATING
ACTIVITIES
Net earnings
$
892
$
5,610
Adjustments to reconcile net earnings to
net cash provided by (used in) operating activities:
Depreciation and amortization
2,806
2,350
Provision for excess and obsolete
inventory
306
266
Foreign exchange (gain) loss
13
(47
)
Amortization of deferred compensation
related to stock-based awards
913
1,079
Discount on shares sold under Employee
Stock Purchase Plan
15
14
Loss on disposal of property and
equipment
19
98
Deferred income tax expense (benefit)
347
(685
)
Changes in assets and liabilities:
Trade accounts receivable
(5,693
)
(372
)
Inventories
1,966
(693
)
Prepaid expenses and other current
assets
1,296
212
Other assets
(118
)
2
Operating lease liabilities
(765
)
(849
)
Accounts payable
(1,899
)
(1,607
)
Accrued wages and benefits
(681
)
(351
)
Accrued professional fees
(124
)
117
Customer deposits and deferred revenue
(861
)
625
Accrued sales commissions
(244
)
(266
)
Domestic and foreign income taxes
payable
(851
)
(220
)
Other current liabilities
(94
)
76
Deferred revenue, net of current
portion
(75
)
-
Other liabilities
(183
)
(17
)
Net cash (used in) provided by operating
activities
(3,015
)
5,342
CASH FLOWS FROM INVESTING
ACTIVITIES
Acquisition of business, net of cash
acquired
(18,727
)
-
Purchase of property and equipment
(656
)
(709
)
Net cash used in investing activities
(19,383
)
(709
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Net proceeds from public offering of
common stock
-
19,244
Proceeds from short-term borrowings
1,120
-
Repayments of long-term borrowings
(3,129
)
(2,050
)
Proceeds from stock options exercised
116
900
Proceeds from shares sold under Employee
Stock Purchase Plan
84
83
Settlement of employee tax liabilities in
connection with treasury stock transaction
(41
)
(74
)
Net cash (used in) provided by financing
activities
(1,850
)
18,103
Effects of exchange rates on cash
(642
)
123
Net cash (used in) provided by all
activities
(24,890
)
22,859
Cash, cash equivalents and restricted cash
at beginning of period
45,260
14,576
Cash and cash equivalents at end of
period
$
20,370
$
37,435
inTEST CORPORATION
Revenue by Market
(In thousands)
(Unaudited)
($ in 000s)
Three Months Ended
Change
Change
6/30/2024
6/30/2023
$
%
3/31/2024
$
%
Revenue
Semi
$
10,124
29.8
%
$
18,833
57.8
%
$
(8,709
)
-46.2
%
$
14,967
50.2
%
$
(4,843
)
-32.4
%
Industrial
3,415
10.0
%
2,806
8.6
%
609
21.7
%
4,187
14.0
%
(772
)
-18.4
%
Auto/EV
10,735
31.6
%
1,542
4.7
%
9,193
596.2
%
3,958
13.3
%
6,777
171.2
%
Life Sciences
2,194
6.5
%
1,135
3.5
%
1,059
93.3
%
653
2.2
%
1,541
236.0
%
Defense/Aerospace
3,682
10.8
%
3,890
11.9
%
(208
)
-5.3
%
3,239
10.9
%
443
13.7
%
Security
792
2.3
%
936
2.9
%
(144
)
-15.4
%
541
1.8
%
251
46.4
%
Other
3,049
9.0
%
3,416
10.6
%
(367
)
-10.7
%
2,279
7.6
%
770
33.8
%
$
33,991
100.0
%
$
32,558
100.0
%
$
1,433
4.4
%
$
29,824
100.0
%
$
4,167
14.0
%
Orders by Market
(In thousands)
(Unaudited)
($ in 000s)
Three Months Ended
Change
Change
6/30/2024
6/30/2023
$
%
3/31/2024
$
%
Orders
Semi
$
11,026
42.1
%
$
14,721
46.9
%
$
(3,695
)
-25.1
%
$
10,253
45.0
%
$
773
7.5
%
Industrial
3,485
13.4
%
5,756
18.3
%
(2,271
)
-39.5
%
3,093
13.5
%
392
12.7
%
Auto/EV
4,721
18.0
%
3,276
10.4
%
1,445
44.1
%
4,041
17.7
%
680
16.8
%
Life Sciences
1,025
3.9
%
609
1.9
%
416
68.3
%
698
3.1
%
327
46.8
%
Defense/Aerospace
2,665
10.2
%
3,216
10.2
%
(551
)
-17.1
%
2,684
11.8
%
(19
)
-0.7
%
Security
81
0.3
%
456
1.5
%
(375
)
-82.2
%
40
0.2
%
41
102.5
%
Other
3,179
12.1
%
3,397
10.8
%
(218
)
-6.4
%
1,990
8.7
%
1,189
59.7
%
$
26.182
100.0
%
$
31,431
100.0
%
$
(5,249
)
-16.7
%
$
22,799
100.0
%
$
3,383
14.8
%
inTEST CORPORATION
Segment Data
(In thousands)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Revenue:
Electronic Test
$
16,159
$
10,993
$
27,275
$
21,364
Environmental Technologies
8,273
8,136
15,101
16,178
Process Technologies
9,559
13,429
21,439
26,935
Total Revenue
$
33,991
$
32,558
$
63,815
$
64,477
Division operating income:
Electronic Test
$
1,743
$
2,641
$
3,556
$
5,219
Environmental Technologies
993
943
1,008
1,956
Process Technologies
970
2,592
2,931
5,268
Total division operating income
3,706
6,176
7,495
12,443
Corporate expenses
(2,473
)
(2,309
)
(5,175
)
(4,514
)
Acquired intangible amortization
(897
)
(523
)
(1,492
)
(1,067
)
Interest expense
(253
)
(176
)
(393
)
(358
)
Other income
213
197
648
255
Earnings before income tax
expense
$
296
$
3,365
$
1,083
$
6,759
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
6/30/2024
6/30/2023
3/31/2024
Net earnings
$
230
$
2,793
$
662
Acquired intangible amortization
897
523
595
Tax adjustments
(168
)
(89
)
(95
)
Adjusted net earnings
(Non-GAAP)
$
959
$
3,227
$
1,162
Diluted weighted average shares
outstanding
12,330
11,697
12,158
Earnings per diluted share:(1)
Net earnings
$
0.02
$
0.24
$
0.05
Acquired intangible amortization
0.07
0.05
0.05
Tax adjustments
(0.01
)
(0.01
)
(0.01
)
Adjusted EPS (Non-GAAP)
$
0.08
$
0.28
$
0.10
(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
6/30/2024
6/30/2023
3/31/2024
Net earnings
$
230
$
2,793
$
662
Acquired intangible amortization
897
523
595
Net interest (income) expense
41
43
(193
)
Income tax expense
66
572
125
Depreciation
356
259
273
Non-cash stock-based compensation
564
605
349
Adjusted EBITDA (Non-GAAP)
$
2,154
$
4,795
$
1,811
Revenue
33,991
32,558
29,824
Net margin
0.7
%
8.6
%
2.2
%
Adjusted EBITDA margin
(Non-GAAP)
6.3
%
14.7
%
6.1
%
Reconciliation of Third Quarter 2024 Estimated Earnings
Per Diluted Share to Estimated Adjusted EPS (Non-GAAP):
Estimated
Estimated earnings per diluted
share
~$0.02
Estimated acquired intangible
amortization
~0.07
Estimated tax adjustments
~(0.01)
Estimated adjusted EPS
(Non-GAAP)
~$0.08
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240802996826/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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