inTEST Achieves 46.3% Gross Margin for Third Quarter 2024
inTEST (INTT) reported Q3 2024 financial results with revenue of $30.3 million, down 2.2% year-over-year. The company achieved a 46.3% gross margin, expanding 570 basis points from Q2 2024. Operating income increased sequentially by $0.2 million to $487,000. Orders grew 5% year-over-year and 7% sequentially to $28.1 million. The company generated $4.2 million in cash from operations, paid down $5.3 million in debt, and repurchased $1 million in shares. Earnings per diluted share was $0.04, while adjusted EPS was $0.10.
inTEST (INTT) ha riportato i risultati finanziari del terzo trimestre 2024, con un fatturato di 30,3 milioni di dollari, in calo del 2,2% rispetto allo stesso trimestre dell'anno scorso. L'azienda ha ottenuto un margine lordo del 46,3%, in aumento di 570 punti base rispetto al secondo trimestre 2024. Il reddito operativo è aumentato sequenzialmente di 200.000 dollari, raggiungendo 487.000 dollari. Gli ordini sono cresciuti del 5% su base annua e del 7% sequenzialmente, raggiungendo 28,1 milioni di dollari. L'azienda ha generato 4,2 milioni di dollari in cassa dalle operazioni, ha ridotto il debito di 5,3 milioni di dollari e ha riacquistato azioni per 1 milione di dollari. L'utile per azione diluito era di 0,04 dollari, mentre l'EPS rettificato era di 0,10 dollari.
inTEST (INTT) reportó los resultados financieros del tercer trimestre de 2024, con ingresos de 30.3 millones de dólares, un descenso del 2.2% interanual. La empresa logró un margen bruto del 46.3%, expandiéndose en 570 puntos básicos desde el segundo trimestre de 2024. Los ingresos operativos aumentaron secuencialmente en 200,000 dólares, alcanzando 487,000 dólares. Los pedidos crecieron un 5% interanual y un 7% secuencialmente hasta 28.1 millones de dólares. La empresa generó 4.2 millones de dólares en efectivo de operaciones, pagó 5.3 millones de dólares en deuda y recompró acciones por 1 millón de dólares. Las ganancias por acción diluida fueron de 0.04 dólares, mientras que el EPS ajustado fue de 0.10 dólares.
inTEST (INTT)는 2024년 3분기 재무 결과를 보고했으며, 수익은 3030만 달러로 전년 대비 2.2% 감소했습니다. 이 회사는 46.3%의 총 마진을 달성했으며, 2024년 2분기 대비 570 베이시스 포인트 상승했습니다. 운영 수익은 전분기에 비해 20만 달러 증가하여 487,000 달러에 달했습니다. 주문량은 전년 대비 5% 증가했으며, 전분기 대비 7% 증가하여 2810만 달러에 이르렀습니다. 이 회사는 운영을 통해 420만 달러의 현금을 생성하고, 530만 달러의 부채를 상환하며, 100만 달러의 주식을 재구매했습니다. 희석 주당 순이익은 0.04달러였고, 조정된 EPS는 0.10달러였습니다.
inTEST (INTT) a annoncé les résultats financiers du troisième trimestre 2024, avec des revenus de 30,3 millions de dollars, en baisse de 2,2 % d'une année sur l'autre. L'entreprise a réalisé une marge brute de 46,3 %, s'étendant de 570 points de base par rapport au deuxième trimestre 2024. Le résultat d'exploitation a augmenté séquentiellement de 200 000 dollars pour atteindre 487 000 dollars. Les commandes ont augmenté de 5 % d'une année sur l'autre et de 7 % séquentiellement, atteignant 28,1 millions de dollars. L'entreprise a généré 4,2 millions de dollars de liquidités provenant des opérations, remboursé 5,3 millions de dollars de dette et racheté pour 1 million de dollars d'actions. Le bénéfice par action diluée était de 0,04 dollar, tandis que l'EPS ajusté était de 0,10 dollar.
inTEST (INTT) hat die finanziellen Ergebnisse des dritten Quartals 2024 veröffentlicht, mit einem Umsatz von 30,3 Millionen Dollar, was einem Rückgang von 2,2 % im Jahresvergleich entspricht. Das Unternehmen erzielte eine Bruttomarge von 46,3 %, was einem Anstieg von 570 Basispunkten im Vergleich zum zweiten Quartal 2024 entspricht. Das Betriebsergebnis stieg sequenziell um 200.000 Dollar auf 487.000 Dollar. Die Bestellungen wuchsen im Jahresvergleich um 5 % und sequenziell um 7 % auf 28,1 Millionen Dollar. Das Unternehmen generierte 4,2 Millionen Dollar aus Betriebseinnahmen, zahlte 5,3 Millionen Dollar Schulden zurück und kaufte Aktien im Wert von 1 Million Dollar zurück. Der Gewinn je verwässerter Aktie betrug 0,04 Dollar, während das bereinigte EPS 0,10 Dollar betrug.
- Gross margin expanded significantly by 570 basis points to 46.3%
- Orders grew 5% YoY and 7% sequentially to $28.1 million
- Generated $4.2 million in cash from operations
- Reduced debt by $5.3 million
- Operating income increased sequentially by $0.2 million
- Revenue declined 2.2% year-over-year to $30.3 million
- Operating income decreased 80.3% year-over-year
- Net earnings declined 78.3% year-over-year
- Operating expenses increased 12.9% year-over-year
- $2 million in shipments delayed to Q4
Insights
The Q3 results show mixed performance with some concerning trends but also positive developments. Revenue declined
Key positives include
The Q4 guidance of
-
Gross margin expanded 570 basis points compared with the second quarter 2024 on
less revenue; third quarter revenue was$3.7 million $30.3 million -
Operating income increased sequentially by
and operating margin expanded$0.2 million
60 basis points on improved mix, cost actions and operational execution -
Orders1 grew
5% year-over-year and7% sequentially to ; Alfamation orders improved$28.1 million 21% sequentially -
Earnings per diluted share was
while adjusted earnings per diluted share2 was$0.04 $0.10 -
Generated
in cash from operations in the quarter; paid down$4.2 million in debt and repurchased$5.3 million in shares$1 million
Nick Grant, President and CEO, commented, “We delivered a solid quarter with revenue somewhat below our expectations although we delivered better than forecasted margins. While we had approximately
He added, “The team continues to execute on our strategy. We are adding new customers, continue to optimize our channels to market and are driving innovation. While our visibility is limited given market conditions, we are encouraged with what appears to be some stabilization in our targeted industries as orders gradually improved through the quarter. We expect demand for our induction heating technology for front-end semi will lag recovery in our other markets but remain excited about the underlying fundamentals that will drive long term growth for these solutions. We believe the appeal of our engineered solutions, the diversification in our target markets and our success with scaling the business through acquisitions has provided relative stability in revenue and the ability to generate profits through industry cycles.”
1 Orders and backlog are key performance metrics. See “Key Performance Indicators” below for important disclosures regarding inTEST’s use of these metrics. |
2 Adjusted earnings per diluted share is a non-GAAP financial measure. Further information can be found under “Non-GAAP Financial Measures.” See also the reconciliations of GAAP financial measures to non-GAAP financial measures that accompany this press release. |
Third Quarter 2024 Review (see revenue by market and by segments in accompanying tables)
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Three Months Ended |
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($ in 000s) |
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As Restated |
Change |
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Change |
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9/30/2024 |
9/30/2023 |
$ |
% |
6/30/2024 |
$ |
% |
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Revenue |
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- |
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- |
Gross profit |
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- |
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Gross margin |
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Operating expenses (incl. intangible amort.) |
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Operating income |
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- |
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Operating margin |
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Net earnings |
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- |
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Net margin |
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Earnings per diluted share (“EPS”) |
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- |
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Adjusted net earnings (Non-GAAP)3 |
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- |
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Adjusted EPS (Non-GAAP)3 |
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- |
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Adjusted EBITDA (Non-GAAP)3 |
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- |
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Adjusted EBITDA margin (Non-GAAP)2 |
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|
Sequentially, revenue was
Sequentially, gross profit of
Year-over-year, third quarter revenue decreased
Year-over-year, gross margin contracted 40-basis points primarily due to lower volume of the organic business and the impact of Alfamation. Operating expenses increased
Net earnings for the quarter of
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 generated
At quarter end, total debt was
Third Quarter 2024 Orders and Backlog1 (see orders by market in accompanying tables)
|
Three Months Ended |
||||||
($ in 000s) |
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|
Change |
|
Change |
||
|
9/30/2024 |
9/30/2023 |
$ |
% |
6/30/2024 |
$ |
% |
Orders |
|
|
|
|
|
|
|
Backlog (at quarter end)* |
|
|
|
|
|
|
- |
*Backlog as of 9/30/23 as restated |
Third quarter orders of
Sequentially, the
Backlog at September 30, 2024, was
Fourth Quarter and Full Year 2024 Outlook
The Company has tightened the overall range of its expectations for the full year and is providing its fourth quarter financial guidance as shown in the table below. The Company continues to expect the effective tax rate for the year to be approximately
Fourth quarter 2024 interest expense is expected to be approximately
(As of November 1, 2024) |
Fourth Quarter Guidance |
Full Year Guidance |
Revenue |
|
|
Gross margin |
Approximately |
|
Operating expenses |
Approximately |
Approximately |
Intangible asset amort expense |
Approximately |
Approximately |
Intangible asset amort exp. After tax |
Approximately |
Approximately |
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, November 8, 2024. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13749100. 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 https://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
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
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 “appears,” “believe,” “continue,” “could,” “expects,” “guidance,” “may,” “outlook,” “will,” “should,” “plan,” “potential,” “forecasts,” “target,” “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 |
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Consolidated Statements of Operations |
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(In thousands, except share and per share data) |
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(Unaudited) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
|
|
|
|
|
As Restated |
|
|
|
|
|
|
|
As Restated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
30,272 |
|
|
$ |
30,941 |
|
|
$ |
94,087 |
|
|
$ |
95,418 |
|
Cost of revenue |
|
|
16,260 |
|
|
|
16,494 |
|
|
|
53,202 |
|
|
|
50,889 |
|
Gross profit |
|
|
14,012 |
|
|
|
14,447 |
|
|
|
40,885 |
|
|
|
44,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling expense |
|
|
4,281 |
|
|
|
4,295 |
|
|
|
12,976 |
|
|
|
13,411 |
|
Engineering and product development expense |
|
|
2,182 |
|
|
|
1,802 |
|
|
|
6,382 |
|
|
|
5,689 |
|
General and administrative expense |
|
|
7,062 |
|
|
|
5,882 |
|
|
|
20,212 |
|
|
|
16,099 |
|
Total operating expenses |
|
|
13,525 |
|
|
|
11,979 |
|
|
|
39,570 |
|
|
|
35,199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
487 |
|
|
|
2,468 |
|
|
|
1,315 |
|
|
|
9,330 |
|
Interest expense |
|
|
(219 |
) |
|
|
(168 |
) |
|
|
(612 |
) |
|
|
(526 |
) |
Other income |
|
|
301 |
|
|
|
423 |
|
|
|
949 |
|
|
|
678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income tax expense |
|
|
569 |
|
|
|
2,723 |
|
|
|
1,652 |
|
|
|
9,482 |
|
Income tax expense |
|
|
74 |
|
|
|
446 |
|
|
|
265 |
|
|
|
1,595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
495 |
|
|
$ |
2,277 |
|
|
$ |
1,387 |
|
|
$ |
7,887 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share - basic |
|
$ |
0.04 |
|
|
$ |
0.19 |
|
|
$ |
0.11 |
|
|
$ |
0.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic |
|
|
12,189,761 |
|
|
|
11,886,005 |
|
|
|
12,150,240 |
|
|
|
11,294,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share - diluted |
|
$ |
0.04 |
|
|
$ |
0.19 |
|
|
$ |
0.11 |
|
|
$ |
0.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares and common share equivalents outstanding - diluted |
|
|
12,251,712 |
|
|
|
12,212,317 |
|
|
|
12,246,763 |
|
|
|
11,665,850 |
|
inTEST CORPORATION |
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Consolidated Balance Sheets |
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(In thousands) |
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|
|
September 30, |
|
|
December 31, |
|
||
|
|
2024 |
|
|
2023 |
|
||
|
|
(Unaudited) |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
17,972 |
|
|
$ |
45,260 |
|
Trade accounts receivable, net of allowance for credit losses of |
|
|
28,357 |
|
|
|
18,175 |
|
Inventories |
|
|
31,661 |
|
|
|
20,089 |
|
Prepaid expenses and other current assets |
|
|
3,212 |
|
|
|
2,254 |
|
Total current assets |
|
|
81,202 |
|
|
|
85,778 |
|
Property and equipment: |
|
|
|
|
|
|
|
|
Machinery and equipment |
|
|
8,848 |
|
|
|
7,118 |
|
Leasehold improvements |
|
|
4,205 |
|
|
|
3,601 |
|
Gross property and equipment |
|
|
13,053 |
|
|
|
10,719 |
|
Less: accumulated depreciation |
|
|
(8,480 |
) |
|
|
(7,529 |
) |
Net property and equipment |
|
|
4,573 |
|
|
|
3,190 |
|
Right-of-use assets, net |
|
|
11,292 |
|
|
|
4,987 |
|
Goodwill |
|
|
32,475 |
|
|
|
21,728 |
|
Intangible assets, net |
|
|
27,877 |
|
|
|
16,596 |
|
Deferred tax assets |
|
|
- |
|
|
|
1,437 |
|
Restricted certificates of deposit |
|
|
100 |
|
|
|
100 |
|
Other assets |
|
|
848 |
|
|
|
1,013 |
|
Total assets |
|
$ |
158,367 |
|
|
$ |
134,829 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Current portion of Term Note and other long-term debt |
|
$ |
8,269 |
|
|
$ |
4,100 |
|
Current portion of operating lease liabilities |
|
|
1,947 |
|
|
|
1,923 |
|
Accounts payable |
|
|
9,212 |
|
|
|
5,521 |
|
Accrued wages and benefits |
|
|
5,009 |
|
|
|
4,156 |
|
Accrued professional fees |
|
|
1,405 |
|
|
|
1,228 |
|
Customer deposits and deferred revenue |
|
|
6,978 |
|
|
|
3,797 |
|
Accrued sales commissions |
|
|
1,077 |
|
|
|
1,055 |
|
Domestic and foreign income taxes payable |
|
|
- |
|
|
|
1,038 |
|
Other current liabilities |
|
|
2,042 |
|
|
|
1,481 |
|
Total current liabilities |
|
|
35,939 |
|
|
|
24,299 |
|
Operating lease liabilities, net of current portion |
|
|
9,649 |
|
|
|
3,499 |
|
Term Note and other long-term debt, net of current portion |
|
|
7,822 |
|
|
|
7,942 |
|
Contingent consideration |
|
|
823 |
|
|
|
1,093 |
|
Deferred revenue, net of current portion |
|
|
1,208 |
|
|
|
1,331 |
|
Deferred tax liabilities |
|
|
761 |
|
|
|
- |
|
Other liabilities |
|
|
1,789 |
|
|
|
384 |
|
Total liabilities |
|
|
57,991 |
|
|
|
38,548 |
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock, |
|
|
- |
|
|
|
- |
|
Common stock, |
|
|
124 |
|
|
|
122 |
|
Additional paid-in capital |
|
|
57,218 |
|
|
|
54,450 |
|
Retained earnings |
|
|
43,583 |
|
|
|
42,196 |
|
Accumulated other comprehensive earnings |
|
|
393 |
|
|
414 |
|
|
Treasury stock, at cost; 79,382 and 75,758 shares, respectively |
|
|
(942 |
) |
|
|
(901 |
) |
Total stockholders' equity |
|
|
100,376 |
|
|
|
96,281 |
|
Total liabilities and stockholders' equity |
|
$ |
158,367 |
|
|
$ |
134,829 |
|
inTEST CORPORATION |
||||||||
Consolidated Statements of Cash Flows |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
|
|
Nine Months Ended September 30, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
As Restated |
|
Net earnings |
|
$ |
1,387 |
|
|
$ |
7,887 |
|
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
4,469 |
|
|
|
3,515 |
|
Provision for excess and obsolete inventory |
|
|
509 |
|
|
|
385 |
|
Foreign exchange (gain) loss |
|
|
(78 |
) |
|
|
17 |
|
Amortization of deferred compensation related to stock-based awards |
|
|
1,450 |
|
|
|
1,623 |
|
Discount on shares sold under Employee Stock Purchase Plan |
|
|
20 |
|
|
|
21 |
|
Loss on disposal of property and equipment |
|
|
24 |
|
|
|
11 |
|
Proceeds from sale of rental equipment, net of gain |
|
|
148 |
|
|
|
153 |
|
Deferred income tax expense (benefit) |
|
|
140 |
|
|
|
(1,101 |
) |
Adjustment to contingent consideration liability |
|
|
- |
|
|
|
(358 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
|
(3,694 |
) |
|
|
480 |
|
Inventories |
|
|
(129 |
) |
|
|
(9 |
) |
Prepaid expenses and other current assets |
|
|
569 |
|
|
|
(313 |
) |
Other assets |
|
|
(27 |
) |
|
|
(492 |
) |
Operating lease liabilities |
|
|
(1,173 |
) |
|
|
(1,275 |
) |
Accounts payable |
|
|
(1,029 |
) |
|
|
(100 |
) |
Accrued wages and benefits |
|
|
(533 |
) |
|
|
125 |
|
Accrued professional fees |
|
|
177 |
|
|
305 |
|
|
Customer deposits and deferred revenue |
|
|
468 |
|
|
(105 |
) |
|
Accrued sales commissions |
|
|
25 |
|
|
|
(292 |
) |
Domestic and foreign income taxes payable |
|
|
(817 |
) |
|
|
(292 |
) |
Other current liabilities |
|
|
(360 |
) |
|
|
320 |
|
Deferred revenue, net of current portion |
|
|
(123 |
) |
|
|
1,033 |
|
Other liabilities |
|
|
(189 |
) |
|
|
(17 |
) |
Net cash provided by operating activities |
|
|
1,234 |
|
|
11,521 |
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Acquisition of business, net of cash acquired |
|
|
(18,727 |
) |
|
|
- |
|
Purchase of property and equipment |
|
|
(1,161 |
) |
|
|
(983 |
) |
Net cash used in investing activities |
|
|
(19,888 |
) |
|
|
(983 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Net proceeds from public offering of common stock |
|
|
- |
|
|
|
19,244 |
|
Repurchases of common stock |
|
|
(1,042 |
) |
|
|
- |
|
Repayments of short-term borrowings |
|
|
(1,856 |
) |
|
|
- |
|
Repayments of long-term borrowings |
|
|
(5,475 |
) |
|
|
(3,075 |
) |
Proceeds from stock options exercised |
|
|
145 |
|
|
|
978 |
|
Proceeds from shares sold under Employee Stock Purchase Plan |
|
|
111 |
|
|
|
118 |
|
Settlement of employee tax liabilities in connection with treasury stock transaction |
|
|
(41 |
) |
|
|
(687 |
) |
Net cash (used in) provided by financing activities |
|
|
(8,158 |
) |
|
|
16,578 |
|
Effects of exchange rates on cash |
|
|
(476 |
) |
|
|
(7 |
) |
Net cash (used in) provided by all activities |
|
|
(27,288 |
) |
|
|
27,109 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
45,260 |
|
|
|
14,576 |
|
Cash and cash equivalents at end of period |
|
$ |
17,972 |
|
|
$ |
41,685 |
|
Cash payments for: |
|
|
|
|
|
|
|
|
Domestic and foreign income taxes |
|
$ |
1,147 |
|
|
$ |
2,988 |
|
Details of acquisition: |
|
|
|
|
|
|
|
|
Fair value of assets acquired, net of cash |
|
$ |
36,055 |
|
|
|
|
|
Liabilities assumed |
|
|
(25,838 |
) |
|
|
|
|
Stock issued |
|
|
(2,086 |
) |
|
|
|
|
Goodwill resulting from acquisition |
|
|
10,596 |
|
|
|
|
|
Net cash paid for acquisition |
|
$ |
18,727 |
|
|
|
|
|
inTEST CORPORATION |
||||||||||
|
|
|||||||||
Revenue by Market |
||||||||||
(In thousands) |
||||||||||
(Unaudited) |
||||||||||
($ in 000s) |
Three Months Ended |
|||||||||
|
|
|
As Restated |
Change |
|
|
Change |
|||
|
9/30/2024 |
9/30/2023 |
$ |
% |
6/30/2024 |
$ |
% |
|||
Revenue |
|
|
|
|
||||||
Semi |
|
|
|
|
|
- |
|
|
|
|
Industrial |
3,534 |
|
2,456 |
|
1,078 |
|
3,415 |
|
119 |
|
Auto/EV |
6,250 |
|
1,775 |
|
4,475 |
|
10,735 |
|
(4,485) |
- |
Life Sciences |
1,322 |
|
1,330 |
|
(8) |
- |
2,194 |
|
(872) |
- |
Defense/Aerospace |
3,239 |
|
3,392 |
|
(153) |
- |
3,682 |
|
(443) |
- |
Security |
666 |
|
967 |
|
(301) |
- |
792 |
|
(126) |
- |
Other |
3,851 |
|
2,545 |
|
1,306 |
|
3,049 |
|
802 |
|
|
|
|
|
|
- |
|
|
|
- |
Orders by Market |
||||||||||
(In thousands) |
||||||||||
(Unaudited) |
||||||||||
($ in 000s) |
Three Months Ended |
|||||||||
|
|
|
|
Change |
|
|
Change |
|||
|
9/30/2024 |
9/30/2023 |
$ |
% |
6/30/2024 |
$ |
% |
|||
Orders |
|
|
|
|
||||||
Semi |
|
|
|
|
|
- |
|
|
|
- |
Industrial |
2,237 |
|
1,637 |
|
600 |
|
3,485 |
|
(1,248) |
- |
Auto/EV |
7,141 |
|
3,051 |
|
4,090 |
|
4,721 |
|
2,420 |
|
Life Sciences |
534 |
|
931 |
|
(397) |
- |
1,025 |
|
(491) |
- |
Defense/Aerospace |
4,470 |
|
3,032 |
|
1,438 |
|
2,665 |
|
1,805 |
|
Security |
1,062 |
|
2,212 |
|
(1,150) |
- |
81 |
|
981 |
|
Other |
4,962 |
|
3,056 |
|
1,906 |
|
3,179 |
|
1,783 |
|
|
|
|
|
|
|
|
|
|
|
inTEST CORPORATION |
|||||||||||||||
|
|
|
|
|
|
||||||||||
Segment Data |
|||||||||||||||
(In thousands) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
As Restated |
|
|
|
|
|
As Restated |
|
||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
||||
Electronic Test |
$ |
15,481 |
|
|
$ |
11,547 |
|
|
$ |
42,756 |
|
|
$ |
32,911 |
|
Environmental Technologies |
|
6,734 |
|
|
|
7,000 |
|
|
|
21,835 |
|
|
|
23,178 |
|
Process Technologies |
|
8,057 |
|
|
|
12,394 |
|
|
|
29,496 |
|
|
|
39,329 |
|
Total Revenue |
$ |
30,272 |
|
|
$ |
30,941 |
|
|
$ |
94,087 |
|
|
$ |
95,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Division operating income: |
|
|
|
|
|
|
|
|
|
|
|
||||
Electronic Test |
$ |
2,311 |
|
|
$ |
3,268 |
|
|
$ |
5,867 |
|
|
$ |
8,487 |
|
Environmental Technologies |
|
426 |
|
|
|
523 |
|
|
|
1,434 |
|
|
|
2,479 |
|
Process Technologies |
|
1,070 |
|
|
|
2, 094 |
|
|
|
4,001 |
|
|
|
7,362 |
|
Total division operating income |
|
3,807 |
|
|
|
5,885 |
|
|
|
11,302 |
|
|
|
18,328 |
|
Corporate expenses |
|
(2,376 |
) |
|
|
(2,902 |
) |
|
|
(7,551 |
) |
|
|
(7,416 |
) |
Acquired intangible amortization |
|
(944 |
) |
|
|
(515 |
) |
|
|
(2,436 |
) |
|
|
(1,582 |
) |
Interest expense |
|
(219 |
) |
|
|
(168 |
) |
|
|
(612 |
) |
|
|
(526 |
) |
Other income |
|
301 |
|
|
|
423 |
|
|
|
949 |
|
|
|
678 |
|
Earnings before income tax expense |
$ |
569 |
|
|
$ |
2,723 |
|
|
$ |
1,652 |
|
|
$ |
9,482 |
|
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 |
||||
9/30/2024 |
|
9/30/2023 |
|
6/30/2024 |
|
|
As Restated |
|
|||
Net earnings |
|
|
|
||
Acquired intangible amortization |
944 |
515 |
897 |
||
Tax adjustments |
(223) |
(85) |
(168) |
||
Adjusted net earnings (Non-GAAP) |
|
|
|
||
Diluted weighted average shares outstanding |
12,252 |
12,212 |
12,330 |
||
Earnings per diluted share:(1) |
|||||
Net earnings |
|
|
|
||
Acquired intangible amortization |
0.08 |
0.04 |
0.07 |
||
Tax adjustments |
(0.02) |
(0.01) |
(0.01) |
||
Adjusted EPS (Non-GAAP) |
|
|
|
(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 |
||||
9/30/2024 |
|
9/30/2023 |
|
6/30/2024 |
|
|
As Restated |
|
|||
Net earnings |
|
|
|
||
Acquired intangible amortization |
944 |
515 |
897 |
||
Net interest (income) expense |
36 |
(276) |
41 |
||
Income tax expense |
74 |
446 |
66 |
||
Depreciation |
355 |
262 |
356 |
||
Non-cash stock-based compensation |
537 |
544 |
564 |
||
Adjusted EBITDA (Non-GAAP) |
|
|
|
||
Revenue |
30,272 |
30,941 |
33,991 |
||
Net margin |
|
|
|
|
|
Adjusted EBITDA margin (Non-GAAP) |
|
|
|
Reconciliation of Fourth Quarter 2024 Estimated Earnings Per Diluted Share to Estimated Adjusted EPS (Non-GAAP):
|
Estimated |
|
|
Estimated earnings per diluted share |
|
Estimated acquired intangible amortization |
~0.08 |
Estimated tax adjustments |
~(0.02) |
Estimated adjusted EPS (Non-GAAP) |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241101843944/en/
inTEST Corporation
Duncan Gilmour
Chief Financial Officer and Treasurer
Tel: (856) 505-8999
Investors:
Deborah K. Pawlowski
Alliance Advisors IR
dpawlowski@allianceadvisors.com
Tel: (716) 843-3908
Source: inTEST Corporation
FAQ
What was inTEST's (INTT) revenue in Q3 2024?
What was inTEST's (INTT) gross margin in Q3 2024?
How much debt did inTEST (INTT) pay down in Q3 2024?