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
|
||||||||||||||||
|
|
Three Months Ended
|
|
Years Ended
|
|
|||||||||||
|
|
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
|
||||||||
|
|
|
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
|
||||||||
|
|
|
Years Ended
|
||||||
|
|
|
|
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
|
||||||||||
| ($ 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
|
||||||||||
| ($ 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
|
|||||||||||||||
|
|
Three Months Ended
|
|
|
Years Ended
|
|
||||||||||
|
|
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
