Sign In  |  Register  |  About Sunnyvale  |  Contact Us

Sunnyvale, CA
September 01, 2020 10:10am
7-Day Forecast | Traffic
  • Search Hotels in Sunnyvale

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

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

  • 2023 revenue increased 6% year-over-year while net income grew 10%
  • Demonstrated strong operational cash flow: generated $4.7 million in cash from operations in the fourth quarter and a record $16.2 million for the year
  • Market diversification provided strength in sales for the year supported by growth in defense/aerospace, industrial, security and life sciences markets
  • Fourth quarter orders improved 2% over the prior quarter driven by defense/aerospace and industrial markets
  • Expects 2024 revenue to range from $145 million to $155 million including the acquisition of Alfamation

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 fourth quarter and year ended December 31, 2023.

“The effective execution of our 5-Point Strategy continues to drive strong results as we delivered a second consecutive year of record revenue while also achieving net income of $9.3 million, the highest level in more than a decade,” commented Nick Grant, President and CEO. “inTEST’s strategy drives innovation, deeper penetration into target markets, geographic expansion and attracts top talent. In 2023, we made good progress at key accounts and strengthened channel relationships throughout the U.S., Europe, Latin America and the Asia Pacific region. We also announced a new Center of Excellence in Malaysia for applications engineering, product development and localized manufacturing that will support all divisions and better serve customers in Southeast Asia. This increasing diversification proved fundamental to the strength of our 2023 results as growing demand from industrial and defense/aerospace markets helped to offset the widely reported weakness in the semiconductor market. Our efforts are resulting in a larger, more diverse customer base positioning inTEST well for further growth.”

Mr. Grant added, “The recent acquisition of Alfamation, which we announced on March 12, 2024, is further proof of the progress we are making on our 5-Point Strategy. The acquisition adds significant test and automation capabilities, broadens geographic and key market presence while also providing measurable scale to the Electronic Test division. The team will continue to drive organic growth initiatives while pursuing highly complementary acquisitions such as Alfamation.”

Fourth Quarter 2023 Review (see revenue by market and by segments in accompanying tables)

Three Months Ended

($ in 000s)

Change

Change

12/31/2023

12/31/2022

$

%

9/30/2023

$

%

Revenue

$27,884

$32,405

$(4,521)

-14.0%

$30,941

$(3,057)

-9.9%

Gross profit

$12,449

$14,981

$(2,532)

-16.9%

$14,447

$(1,998)

-13.8%

Gross margin

44.6%

46.2%

46.7%

Operating expenses (incl. intangible amort.)

$11,340

$10,949

$391

3.6%

$11,979

$(639)

-5.3%

Operating income

$1,109

$4,032

$(2,923)

-72.5%

$2,468

$(1,359)

-55.1%

Operating margin

4.0%

12.4%

8.0%

Net earnings

$1,455

$3,244

$(1,789)

-55.1%

$2,277

$(822)

-36.1%

Net margin

5.2%

10.0%

 

 

7.4%

 

 

Earnings per diluted share (“EPS”)

$0.12

$0.30

$(0.18)

-60.0%

$0.19

$(0.07)

-36.8%

Adjusted net earnings (Non-GAAP) (1)

$1,910

$3,707

$(1,797)

-48.5%

$2,707

$(797)

-29.4%

Adjusted EPS (Non-GAAP) (1)

$0.16

$0.34

$(0.18)

-52.9%

$0.22

$(0.06)

-27.3%

Adjusted EBITDA (Non-GAAP) (1)

$2,418

$5,256

$(2,838)

-54.0%

$3,768

$(1,350)

-35.8%

Adjusted EBITDA margin (Non-GAAP) (1)

8.7%

16.2%

12.2%

(1) 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.

Compared with the prior-year period, fourth quarter revenue was down primarily due to $8.7 million in lower sales to the semi market. This was partially offset by a 171%, or $3.7 million, increase in sales to the industrial market, a 42%, or $1.2 million, increase in sales to the auto/EV market and an 11%, or $0.2 million, increase in the defense/aerospace market. Sequentially, industrial revenue was up 141% and auto/EV sales were up 124%.

Gross margin was 44.6% in the fourth quarter, a 160-basis point contraction compared with the prior-year period primarily due to lower volume and product mix. Operating expenses increased primarily because of $0.4 million of incremental corporate development expenses, which were somewhat offset by lower selling costs and expense management.

With the benefit of other income in the quarter of $0.6 million, net earnings were $1.5 million, or $0.12 per diluted share.

2023 Summary

Full year revenue was a record $123.3 million, up 6%, or $6.5 million, over the prior year. Growth was driven primarily by $5.5 million higher sales to the defense/aerospace market, as well as a $4.3 million increase in sales to the industrial market.

Gross profit for the year increased 7% to $57.0 million reflecting the impact of higher volume, favorable mix as well as ongoing cost and pricing actions. Gross margin expanded 50 basis points to 46.2%. Operating income was down 3% to $10.4 million and net earnings increased 10% to $9.3 million. Adjusted EBITDA (Non-GAAP) was down 1% to $15.8 million.

Net earnings benefitted from higher cash balances and interest rates resulting in other income of $1.3 million. On a per diluted share basis, net earnings were up 1% to $0.79 compared with $0.78 in the prior year. Adjusted earnings per diluted share (Non-GAAP)1 were $0.94 compared with $0.99 in 2022.

Significant Financial Flexibility with Strong Cash Flow and a Solid Balance Sheet

The Company generated $4.7 million in cash from operations in the fourth quarter and $16.2 million in 2023. Capital expenditures in the fourth quarter were $0.3 million, unchanged from the prior-year period and were $1.3 million in 2023, down from $1.4 million in 2022.

Cash and cash equivalents at December 31, 2023 were $45.3 million, an increase of $31.8 million from the end of 2022, which included $19.2 million in net proceeds from the Company’s at-the-market equity offering program that was initiated and completed in second quarter 2023. The Company paid down $1.0 million in debt in the fourth quarter and $4.1 million during the year. Total debt was $12.0 million at year end.

Fourth Quarter 2023 Orders and Backlog (see orders by market in accompanying tables)

 

Three Months Ended

($ in 000s)

 

 

Change

 

Change

 

12/31/2023

12/31/2022

$

%

9/30/2023

$

%

Orders

$27,523

$31,315

$(3,792)

-12.1%

$26,854

$669

2.5%

Backlog (at quarter end)

$40,130

$46,800

$(6,670)

-14.3%

$40,491

$(361)

-0.9%

Fourth quarter orders of $27.5 million were down 12% versus the prior-year period but up 2% sequentially. Defense/aerospace orders were very strong year-over-year, up 53% to $5.2 million, and were strong as well sequentially, increasing 70%. Higher demand drove fourth quarter industrial orders up 30%, or $0.8 million, compared with last year’s fourth quarter. Sequentially, industrial orders more than doubled to $3.4 million. Semi front-end orders were resilient in the fourth quarter, primarily supporting epitaxy applications. Back-end orders declined further year-over-year and sequentially but began to show stabilization. Combined semi orders, while down 10% year-over-year, improved sequentially by 3% to $13.3 million.

Backlog at December 31, 2023, was $40.1 million, down 14% versus the prior year on lower demand from the semi market as well as customers returning to shorter lead times as global supply chain challenges have dissipated. Approximately 45% of backlog is expected to ship beyond the first quarter of 2024.

Orders and backlog are key performance metrics that management uses to analyze and measure the Company’s financial performance and results of operations. Please see “Key Performance Indicators” for a further explanation of the use and how these metrics are calculated.

First Quarter and Full Year 2024 Guidance

First quarter guidance now includes just over two weeks of financial results from the Alfamation acquisition. Revenue for the first quarter of 2024 is expected to be approximately $29 million with gross margin of approximately 45% to 46%. First quarter 2024 operating expenses, including amortization, corporate development expenses and additional professional fees, are now expected to be approximately $13 million. Intangible asset amortization is estimated to be approximately $0.6 million pre-tax, or approximately $0.5 million after tax, or $0.04 per share. The effective tax rate is expected to be approximately 16% to 17% and weighted average shares are expected to be about 12.2 million in the first quarter.

First quarter 2024 estimated EPS is now expected to be approximately $0.06, while first quarter estimated adjusted EPS (Non-GAAP) is now expected to be approximately $0.10.2

1Adjusted 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.

2 First quarter 2024 estimated adjusted EPS is a forward-looking non-GAAP financial measure. Further information can be found under “Forward-looking Non-GAAP Financial Measures.” See also the reconciliations of GAAP financial measures to non-GAAP financial measures that accompany this press release.

The Company’s guidance for 2024 is as follows:

(as of March 27, 2024)

2024 Guidance

Revenue

$145 million to $155 million

Gross margin

45% to 46%

Operating expenses

$57 million to $59 million

Intangible asset amort expense

Approximately $4.0 million

Intangible asset amort exp. after tax

Approximately $3.5 million

Effective tax rate

18% to 20%

Capital expenditures

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 and does not consider any extraordinary non-operating expenses that may occur from time to time. Actual results may differ materially from what is provided here today because 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 tomorrow, March 28, 2024 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 www.intest.com/investor-relations.

A telephonic replay will be available from 11:30 a.m. ET on the day of the call through Thursday, April 4, 2024. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13745436. The webcast replay can be accessed via the investor relations section of www.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,” “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

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 Share – Diluted to Adjusted Earnings Per Share – Diluted (Non-GAAP):

Three Months Ended

12/31/2023

 

12/31/2022

 

9/30/2023

 

 

Net earnings

$

1,455

 

$

3,244

 

$

2,277

 

Acquired intangible amortization

 

513

 

 

552

 

 

515

 

Tax adjustments

 

(58

)

 

(89

)

 

(85

)

Adjusted net earnings (Non-GAAP)

$

1,910

 

$

3,707

 

$

2,707

 

 

Diluted weighted average shares outstanding

 

12,122

 

 

10,928

 

 

12,212

 

Earnings per share – diluted:

Net earnings

$

0.12

 

$

0.30

 

$

0.19

 

Acquired intangible amortization

 

0.04

 

 

0.05

 

 

0.04

 

Tax adjustments

 

(0.01

)

 

(0.01

)

Adjusted earnings per share – diluted (Non-GAAP)

$

0.16

 

$

0.34

 

$

0.22

 

 

 

Years Ended

 

12/31/2023

 

12/31/2022

 

 

 

Net earnings

$

9,342

 

$

8,461

 

Acquired intangible amortization

 

2,095

 

 

2,694

 

Tax adjustments

 

(324

)

 

(447

)

Adjusted net earnings (Non-GAAP)

$

11,113

 

$

10,708

 

 

Diluted weighted average shares outstanding

 

11,780

 

 

10,863

 

Earnings per share – diluted:

Net earnings

$

0.79

 

$

0.78

 

Acquired intangible amortization

 

0.18

 

 

0.25

 

Tax adjustments

 

(0.03

)

 

(0.04

)

Adjusted earnings per share – diluted (Non-GAAP)

$

0.94

 

$

0.99

 

 

Reconciliation of Net Earnings to Adjusted EBITDA (Non-GAAP) and

Adjusted EBITDA Margin (Non-GAAP):

Three Months Ended

12/31/2023

 

12/31/2022

 

9/30/2023

 

 

Net earnings

$

1,455

$

3,244

$

2,277

Acquired intangible amortization

 

513

 

552

 

515

Net Interest expense (income)

 

(340)

 

164

 

(276)

Income tax expense

 

111

 

637

 

446

Depreciation

 

255

 

245

 

262

Non-cash stock-based compensation

 

424

 

414

 

544

Adjusted EBITDA (Non-GAAP)

$

2,418

$

5,256

$

3,768

Revenue

 

27,884

 

32,405

 

30,941

Net margin

 

5.2%

 

 

10.0%

 

 

7.4%

Adjusted EBITDA margin (Non-GAAP)

 

8.7%

 

16.2%

 

12.2%

 

 

Years Ended

12/31/2023

 

12/31/2022

 

Net earnings

$

9,342

$

8,461

Acquired intangible amortization

 

2,095

 

2,694

Net Interest expense (income)

 

(404)

 

600

Income tax expense

 

1,706

 

1,684

Depreciation

 

1,021

 

810

Non-cash stock-based compensation

 

2,047

 

1,787

Adjusted EBITDA (Non-GAAP)

$

15,807

$

16,036

Revenue

 

123,302

 

116,828

Net margin

 

7.6%

 

 

7.2%

Adjusted EBITDA margin (Non-GAAP)

 

12.8%

 

13.7%

 

Reconciliation of First Quarter 2024 Estimated Earnings Per Share – Diluted to

Estimated Adjusted Earnings Per Share – Diluted (Non-GAAP):

 

Q1 2024E

 

 

Estimated earnings per share – diluted

$

0.06

Estimated acquired intangible amortization

 

0.05

Estimated tax adjustments

 

(0.01)

Estimated adjusted earnings per share – diluted (Non-GAAP)

$

0.10

 
 

 

Contacts

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

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Sunnyvale.com & California Media Partners, LLC. All rights reserved.