inTEST Reports Record $123.3 Million in Revenue and Net Income of $9.3 Million for Full Year 2023

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,” “could,” “expects,” “guidance,” “may,” “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
December 31,

 

Years Ended
December 31,

 

 

 

2023

 

 

2022

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

27,884

 

 

$

32,405

 

 

$

123,302

 

 

$

116,828

 

Cost of revenue

 

 

15,435

 

 

 

17,424

 

 

 

66,324

 

 

 

63,388

 

Gross profit

 

 

12,449

 

 

 

14,981

 

 

 

56,978

 

 

 

53,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling expense

 

 

4,194

 

 

 

4,405

 

 

 

17,605

 

 

 

15,903

 

Engineering and product development expense

 

 

1,929

 

 

 

1,880

 

 

 

7,618

 

 

 

7,529

 

General and administrative expense

 

 

5,217

 

 

 

4,664

 

 

 

21,316

 

 

 

19,287

 

Total operating expenses

 

 

11,340

 

 

 

10,949

 

 

 

46,539

 

 

 

42,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

1,109

 

 

 

4,032

 

 

 

10,439

 

 

 

10,721

 

Interest expense

 

 

(153

)

 

 

(178

)

 

 

(679

)

 

 

(635

)

Other income

 

 

610

 

 

 

27

 

 

 

1,288

 

 

 

59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before income tax expense

 

 

1,566

 

 

 

3,881

 

 

 

11,048

 

 

 

10,145

 

Income tax expense

 

 

111

 

 

 

637

 

 

 

1,706

 

 

 

1,684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

1,455

 

 

$

3,244

 

 

$

9,342

 

 

$

8,461

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share – basic

 

$

0.12

 

 

$

0.30

 

 

$

0.82

 

 

$

0.79

 

Weighted average common shares outstanding – basic

 

 

11,962,679

 

 

 

10,725,662

 

 

 

11,461,399

 

 

 

10,673,017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share – diluted

 

$

0.12

 

 

$

0.30

 

 

$

0.79

 

 

$

0.78

 

Weighted average common shares and common share equivalents outstanding – diluted

 

 

12,122,099

 

 

 

10,928,220

 

 

 

11,779,912

 

 

 

10,862,538

 

 

inTEST CORPORATION
Consolidated Balance Sheets
(In thousands)
(Unaudited)

 
 

 

 

December 31,

 

 

 

2023

 

 

 

2022

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

45,260

 

 

$

13,434

 

Restricted cash

 

 

-

 

 

 

1,142

 

Trade accounts receivable, net of allowance for credit losses of $474 and $496, respectively

 

 

18,175

 

 

 

21,215

 

Inventories

 

 

20,089

 

 

 

22,565

 

Prepaid expenses and other current assets

 

 

2,254

 

 

 

1,695

 

Total current assets

 

 

85,778

 

 

 

60,051

 

Property and equipment:

 

 

 

 

Machinery and equipment

 

 

7,118

 

 

 

6,625

 

Leasehold improvements

 

 

3,601

 

 

 

3,242

 

Gross property and equipment

 

 

10,719

 

 

 

9,867

 

Less: accumulated depreciation

 

 

(7,529

)

 

 

(6,735

)

Net property and equipment

 

 

3,190

 

 

 

3,132

 

Right-of-use assets, net

 

 

4,987

 

 

 

5,770

 

Goodwill

 

 

21,728

 

 

 

21,605

 

Intangible assets, net

 

 

16,596

 

 

 

18,559

 

Deferred tax assets

 

 

1,437

 

 

 

280

 

Restricted certificates of deposit

 

 

100

 

 

 

100

 

Other assets

 

 

1,013

 

 

 

569

 

Total assets

 

$

134,829

 

 

$

110,066

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Current portion of Term Note

 

$

4,100

 

 

$

4,100

 

Current portion of operating lease liabilities

 

 

1,923

 

 

 

1,645

 

Accounts payable

 

 

5,521

 

 

 

7,394

 

Accrued wages and benefits

 

 

4,156

 

 

 

3,907

 

Accrued professional fees

 

 

1,228

 

 

 

884

 

Customer deposits and deferred revenue

 

 

3,797

 

 

 

4,498

 

Accrued sales commission

 

 

1,055

 

 

 

1,468

 

Domestic and foreign income taxes payable

 

 

1,038

 

 

 

1,409

 

Other current liabilities

 

 

1,481

 

 

 

1,564

 

Total current liabilities

 

 

24,299

 

 

 

26,869

 

Operating lease liabilities, net of current portion

 

 

3,499

 

 

 

4,705

 

Term Note, net of current portion

 

 

7,942

 

 

 

12,042

 

Contingent consideration

 

 

1,093

 

 

 

1,039

 

Deferred revenue, net of current portion

 

 

1,331

 

 

 

-

 

Other liabilities

 

 

384

 

 

 

455

 

Total liabilities

 

 

38,548

 

 

 

45,110

 

 

 

 

 

 

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; 12,241,925 and 11,063,271 shares issued, respectively

 

 

122

 

 

 

111

 

Additional paid-in capital

 

 

54,450

 

 

 

31,987

 

Retained earnings

 

 

42,196

 

 

 

32,854

 

Accumulated other comprehensive earnings

 

 

414

 

 

 

218

 

Treasury stock, at cost; 75,758 and 34,308 shares, respectively

 

 

(901

)

 

 

(214

)

Total stockholders' equity

 

 

96,281

 

 

 

64,956

 

Total liabilities and stockholders' equity

 

$

134,829

 

 

$

110,066

 

 

inTEST CORPORATION
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

 
 

 

 

Years Ended
December 31,

 

 

 

2023

 

 

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

Net earnings

 

$

9,342

 

 

$

8,461

 

Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:

 

 

 

 

Depreciation and amortization

 

 

4,683

 

 

 

4,734

 

Provision for excess and obsolete inventory

 

 

544

 

 

 

771

 

Foreign exchange (gain) loss

 

 

(9

)

 

 

109

 

Amortization of deferred compensation related to stock-based awards

 

 

2,047

 

 

 

1,787

 

Discount on shares sold under Employee Stock Purchase Plan

 

 

31

 

 

 

36

 

Proceeds from sale of demonstration equipment, net of gain

 

 

167

 

 

 

68

 

Loss on disposal of property and equipment

 

 

11

 

 

 

-

 

Deferred income tax benefit

 

 

(1,157

)

 

 

(1,659

)

Adjustment to contingent consideration liability

 

 

(294

)

 

 

-

 

Changes in assets and liabilities:

 

 

 

 

Trade accounts receivable

 

 

2,991

 

 

 

(4,886

)

Inventories

 

 

2,027

 

 

 

(10,631

)

Prepaid expenses and other current assets

 

 

(535

)

 

 

(243

)

Other assets

 

 

(686

)

 

 

(2

)

Operating lease liabilities

 

 

(1,712

)

 

 

(1,363

)

Accounts payable

 

 

(1,811

)

 

 

2,875

 

Accrued wages and benefits

 

 

231

 

 

 

(118

)

Accrued professional fees

 

 

339

 

 

 

(157

)

Customer deposits and deferred revenue

 

 

(759

)

 

 

(1,464

)

Accrued sales commission

 

 

(421

)

 

 

621

 

Domestic and foreign income taxes payable

 

 

(371

)

 

 

(573

)

Other current liabilities

 

 

231

 

 

 

184

 

Deferred revenue, net of current portion

 

 

1,331

 

 

 

-

 

Other liabilities

 

 

(17

)

 

 

61

 

Net cash provided by (used in) operating activities

 

 

16,203

 

 

 

(1,389

)

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

Payment of contingent consideration related to Z-Sciences acquisition

 

 

-

 

 

 

(179

)

Refund of final working capital adjustment related to Acculogic

 

 

-

 

 

 

371

 

Purchase of property and equipment

 

 

(1,291

)

 

 

(1,365

)

Purchase of short term investments

 

 

-

 

 

 

(3,494

)

Sales of short term investments

 

 

-

 

 

 

3,494

 

Net cash used in investing activities

 

 

(1,291

)

 

 

(1,173

)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

Net proceeds from public offering of common stock

 

 

19,244

 

 

 

-

 

Repayments of Term Note

 

 

(4,100

)

 

 

(3,958

)

Proceeds from stock options exercised

 

 

978

 

 

 

38

 

Proceeds from shares sold under Employee Stock Purchase Plan

 

 

174

 

 

 

197

 

Settlement of employee tax liabilities in connection with treasury stock transaction

 

 

(687

)

 

 

(10

)

Net cash provided by (used in) financing activities

 

 

15,609

 

 

 

(3,733

)

 

 

 

 

 

Effects of exchange rates on cash

 

 

163

 

 

 

(324

)

Net cash provided by (used in) all activities

 

 

30,684

 

 

 

(6,619

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

14,576

 

 

 

21,195

 

Cash, cash equivalents and restricted cash at end of period

 

$

45,260

 

 

$

14,576

 

Cash payments for:

 

 

 

 

Domestic and foreign income taxes

 

$

3,240

 

 

$

3,924

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:

 

 

 

 

Issuance of unvested shares of restricted stock

 

$

1,601

 

 

$

1,138

 

Forfeiture of unvested shares of restricted stock

 

 

(176

)

 

 

(54

)

 

 

 

 

 

inTEST CORPORATION
Revenue by Market
(In thousands)
(Unaudited)

 
 

($ in 000s)

Three Months Ended

Change

Change

12/31/2023

12/31/2022

$

%

9/30/2023

$

%

Revenue

Semi

$10,743

38.5%

$19,453

60.0%

$(8,710)

-44.8%

$18,476

59.8%

$(7,733)

-41.9%

Industrial

5,911

21.2%

2,179

6.7%

3,732

171.3%

2,456

7.9%

3,455

140.7%

Auto/EV

3,981

14.3%

2,805

8.7%

1,176

41.9%

1,775

5.7%

2,206

124.3%

Life Sciences

878

3.1%

1,006

3.1%

(128)

-12.7%

1,330

4.3%

(452)

-34.0%

Defense/Aerospace

2,416

8.7%

2,176

6.7%

240

11.0%

3,392

11.0%

(976)

-28.8%

Security

819

3.0%

1,002

3.1%

(183)

-18.3%

967

3.1%

(148)

-15.3%

Other

3,136

11.2%

3,784

11.7%

(648)

-17.1%

2,545

8.2%

591

23.2%

$27,884

100.0%

$ 32,405

100.0%

$(4,521)

-14.0%

$30,941

100.00%

$(3,057)

-9.9%

 
 

($ in 000s)

Years Ended

Change

12/31/2023

12/31/2022

$

%

Revenue

Semi

$ 65,735

53.3%

$ 68,422

58.6%

$ (2,687)

-3.9%

Industrial

14,310

11.6%

10,038

8.6%

4,272

42.6%

Auto/EV

9,895

8.0%

10,776

9.2%

(881)

-8.2%

Life Sciences

4,856

3.9%

4,589

3.9%

267

5.8%

Defense/Aerospace

12,537

10.2%

7,006

6.0%

5,531

78.9%

Security

3,688

3.0%

3,241

2.8%

447

13.8%

Other

12,281

10.0%

12,756

10.9%

(475)

-3.7%

$ 123,302

100.0%

$116,828

100.0%

$ 6,474

5.5%

 

inTEST CORPORATION
Orders by Market
(In thousands)
(Unaudited)

 
 

($ in 000s)

Three Months Ended

Change

Change

12/31/2023

12/31/2022

$

%

9/30/2023

$

%

Orders

Semi

$ 13,295

48.3%

$ 14,775

47.2%

$ (1,480)

-10.0%

$12,935

48.2%

$ 360

2.8%

Industrial

3,445

12.5%

2,657

8.5%

788

29.7%

1,637

6.1%

1,808

110.4%

Auto/EV

1,822

6.6%

1,660

5.3%

162

9.8%

3,051

11.3%

(1,229)

-40.3%

Life Sciences

877

3.2%

2,027

6.5%

(1,150)

-56.7%

931

3.5%

(54)

-5.8%

Defense/Aerospace

5,161

18.8%

3,364

10.7%

1,797

53.4%

3,032

11.3%

2,129

70.2%

Security

65

0.2%

2,172

6.9%

(2,107)

-97.0%

2,212

8.2%

(2,147)

-97.1%

Other

2,858

10.4%

4,660

14.9%

(1,802)

-38.7%

3,056

11.4%

(198)

-6.5%

$ 27,523

100.0%

$ 31,315

100.0%

$ (3,792)

-12.1%

$26,854

100.0%

$ 669

2.5%

 
 

($ in 000s)

Years Ended

Change

12/31/2023

12/31/2022

$

%

Orders

Semi

$ 59,297

50.9%

$ 73,070

56.5%

$(13,773)

-18.8%

Industrial

14,980

12.8%

10,554

8.1%

4,426

41.9%

Auto/EV

10,193

8.7%

9,899

7.6%

294

3.0%

Life Sciences

4,353

3.7%

5,705

4.4%

(1,352)

-23.7%

Defense/Aerospace

13,386

11.5%

10,261

7.9%

3,125

30.5%

Security

2,945

2.5%

4,386

3.4%

(1,441)

-32.9%

Other

11,478

9.9%

15,701

12.1%

(4,223)

-26.9%

$116,632

100.0%

$129,576

100.0%

$(12,944)

-10.0%

 

inTEST CORPORATION
Segment Data
(In thousands)
(Unaudited)

 
 

 

Three Months Ended
December 31,

 

 

Years Ended
December 31,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

Electronic Test

$

8,105

 

 

$

11,236

 

 

$

41,016

 

 

$

40,219

 

Environmental Technologies

 

7,623

 

 

 

8,041

 

 

 

30,801

 

 

 

30,172

 

Process Technologies

 

12,156

 

 

 

13,128

 

 

 

51,485

 

 

 

46,437

 

Total Revenue

$

27,884

 

 

$

32,405

 

 

$

123,302

 

 

$

116,828

 

Division operating income:

 

 

 

 

 

 

 

 

 

 

 

Electronic Test

$

1,702

 

 

$

3,445

 

 

$

10,189

 

 

$

9,931

 

Environmental Technologies

 

594

 

 

 

924

 

 

 

3,073

 

 

 

3,817

 

Process Technologies

 

2,182

 

 

 

2,466

 

 

 

9,544

 

 

 

8,230

 

Total division operating income

 

4,478

 

 

 

6,835

 

 

 

22,806

 

 

 

21,978

 

Corporate expenses

 

(2,856

)

 

 

(2,251

)

 

 

(10,272

)

 

 

(8,563

)

Acquired intangible amortization

 

(513

)

 

 

(552

)

 

 

(2,095

)

 

 

(2,694

)

Interest expense

 

(153

)

 

 

(178

)

 

 

(679

)

 

 

(635

)

Other income

 

610

 

 

 

27

 

 

 

1,288

 

 

 

59

 

Earnings before income tax expense

$

1,566

 

 

$

3,881

 

 

$

11,048

 

 

$

10,145

 

 
 

inTEST CORPORATION

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