inTEST Reports 2020 Second Quarter Financial Results
08/06/2020 - 05:15 PM
Net Revenues of $13.3 Million Increased 18% Sequentially and Were 10% Above Consensus Estimates; GAAP Earnings Per Share of $0.02 Increased by $0.13 Sequentially MT. LAUREL, N.J., Aug. 06, 2020 (GLOBE NEWSWIRE) -- inTEST Corporation (NYSE American: INTT), a global supplier of precision-engineered solutions for use in manufacturing and testing across a wide range of markets, including automotive, defense/aerospace, energy, industrial, semiconductor and telecommunications, today announced financial results for the quarter ended June 30, 2020.
2020 Second Quarter Financial Summary
($ in Millions, Except Per Share Data) Three Months Ended 6/30/2020 3/31/2020 6/30/2019 Semi Market Bookings (1) $ 7.3 $ 6.7 $ 8.6 Multimarket Bookings (2) 6.6 7.1 7.3 Total Bookings $ 13.9 $ 13.8 $ 15.9 Semi Market Bookings (1) - % of Total Bookings 52 % 49 % 54 % Multimarket Bookings (2) - % of Total Bookings 48 % 51 % 46 % Semi Market Net Revenues (1) $ 6.9 $ 5.0 $ 7.7 Multimarket Net Revenues (2) 6.4 6.2 6.7 Total Net Revenues $ 13.3 $ 11.2 $ 14.4 Semi Market Net Revenues (1) - % of Total Net Revenues 52 % 45 % 53 % Multimarket Net Revenues (2) - % of Total Net Revenues 48 % 55 % 47 % Gross Margin $ 6.1 $ 4.9 $ 6.7 Gross Margin 46 % 43 % 47 % Net Earnings (Loss) (GAAP) $ 0.2 $ (1.1 ) $ (0.2 ) Net Earnings (Loss) per diluted share (GAAP) $ 0.02 $ (0.11 ) $ (0.02 ) Adjusted Net Earnings (Non-GAAP) (3) $ 0.5 $ (0.8 ) $ 0.1 Adjusted Net Earnings per diluted share (Non-GAAP) (3) $ 0.05 $ (0.08 ) $ 0.01 EBITDA (Non-GAAP) (3) $ 0.7 $ (0.9 ) $ 0.2 As of 6/30/2020 3/31/2020 12/31/2019 Cash and cash equivalents $ 7.4 $ 7.3 $ 7.6
(1 ) Semi Market: These amounts include all bookings and net revenues from the semiconductor market. (2 ) Multimarket: These amounts include all bookings and net revenues from markets other than the semiconductor market. (3 ) Adjusted Net Earnings, Adjusted Net Earnings per diluted share and EBITDA are non-GAAP financial measures. Further information can be found under “Non-GAAP Results.” See also the reconciliation of GAAP measures to non-GAAP measures that accompanies this earnings release.
2020 Six Month Year-to-Date Financial Summary
($ in Millions, Except Per Share Data) Six Months Ended 6/30/2020 6/30/2019 Semi Market Bookings (4) $ 14.0 $ 14.2 Multimarket Bookings (5) 13.7 13.6 Total Bookings $ 27.7 $ 27.8 Semi Market Bookings (4) - % of Total Bookings 51 % 51 % Multimarket Bookings (5) - % of Total Bookings 49 % 49 % Semi Market Net Revenues (4) $ 11.9 $ 17.7 Multimarket Net Revenues (5) 12.6 14.7 Total Net Revenues $ 24.5 $ 32.4 Semi Market Net Revenues (4) - % of Total Net Revenues 48 % 55 % Multimarket Net Revenues (5) - % of Total Net Revenues 52 % 45 % Gross Margin $ 10.9 $ 15.6 Gross Margin 45 % 48 % Net Earnings (Loss) (GAAP) $ (1.0 ) $ 1.0 Net Earnings (Loss) per diluted share (GAAP) $ (0.10 ) $ 0.09 Adjusted Net Earnings (Loss) (Non-GAAP) (6) $ (0.4 ) $ 1.6 Adjusted Net Earnings (Loss) per diluted share (Non-GAAP) (6) $ (0.04 ) $ 0.15 EBITDA (Non-GAAP) (6) $ (0.3 ) $ 2.2
(4 ) Semi Market: These amounts include all bookings and net revenues from the semiconductor market. (5 ) Multimarket: These amounts include all bookings and net revenues from markets other than the semiconductor market. (6 ) Adjusted Net Earnings, Adjusted Net Earnings per diluted share and EBITDA are non-GAAP financial measures. Further information can be found under “Non-GAAP Results.” See also the reconciliation of GAAP measures to non-GAAP measures that accompanies this earnings release.
Commenting on the Company’s second quarter financial results, inTEST CFO and interim CEO Hugh Regan, Jr. noted, “Our results for the quarter exceeded expectations, resulting in both revenue and profitability growth. While the overall environment continues to be challenging, largely in light of the COVID-19 pandemic resurgence, we are seeing positive signs in the markets we serve, particularly as they relate to semiconductor manufacturers. Our semiconductor related revenues increased 37% compared to the first quarter of 2020. Consolidated revenues increased 18% sequentially, and were 2% above our guidance and 10% above consensus estimates. Non-GAAP adjusted net earnings per diluted share increased from a loss of $0.08 per share in the first quarter of 2020 to earnings of $0.05 for the 2020 second quarter.”
2020 Third Quarter Financial Outlook
Actual results may differ materially as a result of, among other things, the factors described under “Forward-Looking Statements” below.
inTEST expects that net revenues for the third quarter of 2020 will be in the range of $13.5 million to $14.5 million and that on a GAAP basis, net earnings per diluted share will range from $0.01 t o $0.06 . On a non-GAAP basis, we expect our adjusted net earnings per diluted share will range from $0.04 t o $0.09 . In addition, we expect that gross margin will range from 46% to 48% . This outlook is based on the Company’s current views with respect to operating and market conditions and customers’ forecasts, all of which are subject to change.
2020 Second Quarter Supplemental Information and Conference Call Details www.intest.com , under the “Investors” section.
inTEST management will host a conference call on Thursday, August 6, 2020 at 6:00 pm Eastern Daylight Time. The conference call will address the Company’s 2020 second quarter financial results, and management’s current expectations and views of the industry. The call may also include a discussion of strategic, operating, product initiatives or developments, and other matters relating to the Company’s current or future performance. To access the live conference call, please dial (323) 794-2598 or (800) 458-4121. The Passcode for the conference call is 1878028. Please reference the inTEST 2020 Q2 Financial Results Conference Call.
2020 Second Quarter Live Webcast Details www.intest.com
2020 Second Quarter Replay Details (Webcast) www.intest.com , under the “Investors” section.
Submit Questions laura@ga-ir.com
Non-GAAP Results
About inTEST Corporation for use in manufacturing and testing across a wide range of markets including automotive, defense/aerospace, energy, industrial, semiconductor and telecommunications. Backed by decades of engineering expertise and a culture of operational excellence, we solve difficult thermal, mechanical and electronic challenges for customers worldwide while generating strong cash flow and profits. Our strategy uses these strengths to grow and increase stockholder value by maximizing our businesses and by identifying, acquiring and optimizing complementary businesses.
For more information visit www.intest.com
Forward-Looking Statements
In addition to the factors mentioned in this press release, such risks and uncertainties include, but are not limited to, the impact of the COVID-19 pandemic on our business, liquidity, financial condition and results of operations, including as a result of evolving public health requirements in response to the pandemic such as government mandated facility closures, availability of employees, supply chain and distribution interruptions, customers’ inability or refusal to accept product deliveries and the sufficiency of our current level of working capital to address our cash requirements; indications of a change in the market cycles in the Semi Market or other markets we serve including as a result of the COVID-19 pandemic; changes in business conditions and general economic conditions both domestically and globally; changes in the demand for semiconductors, generally and as a result of the COVID-19 pandemic; the success of our strategy to diversify our business by entering markets outside the Semi Market; the possibility of future acquisitions or dispositions and the successful integration of any acquired operations; our ability to borrow funds or raise capital to finance potential acquisitions; changes in the rates and timing of capital expenditures by our customers including as a result of the COVID-19 pandemic; success of product development programs; increases in raw material and fabrication costs associated with our products; and other risk factors set forth from time to time in our Securities and Exchange Commission filings, including, but not limited to, our annual report on Form 10-K for the year ended December 31, 2019 and quarterly report on Form 10-Q for the quarter ended March 31, 2020 and subsequent quarterly reports on Form 10-Q. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks to circumstances only as of the date on which it is made. We undertake 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.
SELECTED FINANCIAL DATA (In thousands, except per share data)
Condensed Consolidated Statements of Operations Data:
Three Months Ended Six Months Ended 6/30/2020 6/30/2019 3/31/2020 6/30/2020 6/30/2019 Net revenues $ 13,275 $ 14,352 $ 11,230 $ 24,505 $ 32,414 Gross margin 6,067 6,719 4,867 10,934 15,555 Operating expenses: Selling expense 1,761 2,087 2,052 3,813 4,461 Engineering and product development expense 1,217 1,208 1,292 2,509 2,492 General and administrative expense 2,888 3,718 2,884 5,772 7,455 Operating income (loss) 201 (294 ) (1,361 ) (1,160 ) 1,147 Other income (loss) (18 ) (6 ) (32 ) (50 ) 15 Earnings (loss) before income tax expense (benefit) 183 (300 ) (1,393 ) (1,210 ) 1,162 Income tax expense (benefit) 13 (113 ) (250 ) (237 ) 211 Net earnings (loss) 170 (187 ) (1,143 ) (973 ) 951 Net earnings (loss) per share – basic $ 0.02 $ (0.02 ) $ (0.11 ) $ (0.10 ) $ 0.09 Weighted average shares outstanding – basic. 10,252 10,411 10,221 10,237 10,398 Net earnings (loss) per share – diluted $ 0.02 $ (0.02 ) $ (0.11 ) $ (0.10 ) $ 0.09 Weighted average shares outstanding – diluted 10,259 10,411 10,221 10,237 10,420
Condensed Consolidated Balance Sheets Data:
As of: 6/30/2020 3/31/2020 12/31/2019 Cash and cash equivalents $ 7,424 $ 7,318 $ 7,612 Trade accounts receivable, net 9,457 8,052 9,296 Inventories 7,930 7,720 7,182 Total current assets 25,256 23,776 24,895 Net property and equipment. 2,295 2,341 2,420 Total assets 59,858 59,059 59,715 Accounts payable. 2,618 2,299 1,984 Accrued expenses. 4,163 3,754 4,207 Total current liabilities 8,790 8,016 8,361 Noncurrent liabilities. 6,889 7,277 6,520 Total stockholders' equity. 44,179 43,766 44,834
Reconciliation of Net Earnings (Loss) (GAAP) to Adjusted Net Earnings (Non-GAAP) and Net Earnings (Loss) Per Share – Diluted (GAAP) to Adjusted Net Earnings Per Share – Diluted (Non-GAAP):
Three Months Ended Six Months Ended 6/30/2020 6/30/2019 3/31/2020 6/30/2020 6/30/2019 Net earnings (loss) (GAAP) $ 170 $ (187 ) $ (1,143 ) $ (973 ) $ 951 Acquired intangible amortization 309 315 311 620 632 Tax adjustments (5 ) (3 ) (4 ) (9 ) (8 ) Adjusted net earnings (loss) (Non-GAAP) $ 474 $ 125 $ (836 ) $ (362 ) $ 1,575 Diluted weighted average shares outstanding 10,259 10,425 10,221 10,237 10,420 Net earnings per share – diluted: Net earnings (loss) (GAAP) $ 0.02 $ (0.02 ) $ (0.11 ) $ (0.10 ) $ 0.09 Acquired intangible amortization 0.03 0.03 0.03 0.06 0.06 Tax adjustments - - - - - Adjusted net earnings (loss) per share – diluted (Non-GAAP) $ 0.05 $ 0.01 $ (0.08 ) $ (0.04 ) $ 0.15
Reconciliation of Net Earnings (Loss) (GAAP) to EBITDA (Non-GAAP):
Three Months Ended Six Months Ended 6/30/2020 6/30/2019 3/31/2020 6/30/2020 6/30/2019 Net earnings (loss) (GAAP) $ 170 $ (187 ) $ (1,143 ) $ (973 ) $ 951 Acquired intangible amortization 309 315 311 620 632 Interest expense 25 - - 25 - Income tax expense (benefit) 13 (113 ) (250 ) (237 ) 211 Depreciation 155 184 155 310 365 EBITDA (Non-GAAP) $ 672 $ 199 $ (927 ) $ (255 ) $ 2,159
Supplemental Information – Reconciliation of Third Quarter 2020 Estimated Net Earnings Per Share – Diluted (GAAP) to Estimated Adjusted Net Earnings Per Share – Diluted (Non-GAAP):
Low High Estimated net earnings per share – diluted (GAAP) $ 0.01 $ 0.06 Estimated acquired intangible amortization 0.03 0.03 Estimated tax adjustments. - - Estimated adjusted net earnings per share – diluted (Non-GAAP) $ 0.04 $ 0.09
Contacts
inTEST Corporation
Hugh T. Regan, Jr.
Treasurer, Chief Financial Officer and Interim CEO
Tel: 856-505-8999
Investors:
Laura Guerrant-Oiye, Principal
Guerrant Associates
Tel: (808) 960-2642
