Optical Cable Corporation · NASDAQ:OCC
Optical Cable — Shareholder Meeting (March 2017)
26 slides from Optical Cable's shareholder meeting presentation, Mar 29, 2017
Slide 1: Annual Meeting of Shareholders
‘s Connections You Can Count On.™ Annual Meeting of Shareholders March 28, 2017 Neil Wilkin, CEO \ ®
Slide 2: Forward Looking Information
Forward Looking Information This presentation may contain “forward looking statements” that involve risks and uncertainties. These statements reflect management's current expectations about possible future events and performance. Actual future results may differ materially due to a number of factors
Slide 3: Agenda
Agenda |. Key Financial Performance Metrics 2016. \|. Challenges. Focused Initiatives. Results. |||. Improvements Achieved Every Quarter. \\V. First Quarter 2017. \/. Looking Forward to Fiscal Year 2017. VI. Q&A.
Slide 4: ©2017 OCC | WWW.OCCFIBER COM
©2017 OCC | WWW.OCCFIBER COM
Slide 5: Key Performance Metrics 2016
Key Performance Metrics 2016 Q) Year of Improvement with Sequential Growth Each Quarter in Net Sales, Gross Profit, Gross Profit Margin and Earnings. C) Net Sales $64.6 million, down from $73.6 million. OQ) About 2/3 of decrease related to certain specialty markets CQ Impact of Strong US Dollar OC)
Slide 6: Key Performance Metrics 2016
YS Key Performance Metrics 2016 \ v Selling, General and Administrative Expenses Reduced $3.3 million or 13.7% Due to Targeted Cost Reduction Measures. # Improved Net Loss of 28 cents compared to 69 cents in 2015. v Positive Cash Flow from Operations of $3.2 million, up 162.4% from $1.2 million in 2
Slide 7: Strong Second Half of 2016
STRONG Second Half of 2016 v Achieved Earnings Per Share of 13 cents in Second Half of 2016, compared to Loss Per Share of 43 cents in First Half of 2016.
Slide 8: Challenges. Focused Initiatives. Results.
‘ e 7 la — . R Sa = a <a @ Challenges. Focused Initiatives. Results. ©2017 OCC | WWW.OCCFIBER.COM
Slide 9: Challenges
Challenges L) Weakness in Certain Specialty Markets. U Military, Oil & Gas, Mining, Other L) About 2/3 of decrease in Sales in 2016 related to Specialty Markets. 1 Strong Dollar Impacts International Sales — Including Specialty Markets. 1 Weakness Particularly Impacted OCC at End of 2015 and Beginni
Slide 10: Focused Initiatives
Focused Initiatives LI Targeted Cost Reductions Across All Expense Categories. UO Sales and Marketing Initiatives Targeting Markets with Greatest Growth Potential. L) Product and Manufacturing Initiatives to Better Serve Customers and End Users, and Increase Efficiencies. UO In sum — Parallel Effort
Slide 11: Impact of Initiatives
Impact of Initiatives Vv SG&A Expenses Reduced $3.3 million or 13.7% in 2016. v Improved Gross Profit Margins. v Sequential Improvements in Quarterly Results. v Operating Leverage Results in Improvements to Bottom Line.
Slide 12: Improvements Achieved Every Quarter.
Slide 13: Improvements Achieved Every Quarter
Improvements Achieved EVERY QUARTER ¥ occ Improved Results Quarter over Quarter throughoutfiscal year 2016. Vv Net Sales Y Gross Profit Y Gross Profit Margin v Earnings
Slide 14: Net Sales Fiscal Year 2016 by Quarter
Net Sales Fiscal Year 2016 by Quarter Up 23.2% Net Sales Q1 to Q4 $18,000,000 2016 $17,000,000 $16,000,000 $15,000,000 $14,000,000 $13,000,000 $12,000,000 $11,000,000 $10,000,000 Qi 2016 Q2 2016 a3 2016 4 2016
Slide 15: Gross Profit Fiscal Year 2016 by Quarter
Gross Profit Fiscal Year 2016 by Quarter Gross Profit Up 77.3% $7,000,000 Qi to Q4 $6,500,000 2014 $6,000,000 $5,500,000 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 & Qi 2016 Q2 2016 Q3 2016 a4 2016
Slide 16: Gross Profit Margin Fiscal Year 2016 by Quarter
Gross Profit Margin Fiscal Year 2016 by Quarter Gross Profit Margin % To 35.9% 40.0% Q4 2016 35.0% From 24.9% 30.0% Q1 2016 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 12016 Q2 2016 a3 2016 4 2016
Slide 17: Fiscal Year 2016 by Quarter
Fiscal Year 2016 by Quarter Quarter ended January 31 April 30 July 31 October 31 Net sales $ 14,047,890 $ 16,340,153 $ 16,915,135 $ 17,312,823 Gross profit 3,502,431 4,551,295 5,461,691 6,209,719 Gross profit margin 249% 279% 323% 35.9% Basic and diluted net income (loss) per share attributable to O
Slide 18: First Quarter 2017
\ i, ila oe. Quarter 2017. a e Swe
Slide 19: First Quarter 2017
First Quarter 2017 v Improved Performance Compared to First Quarter 2016. v Net Sales Increased 4.0% to $14.6 million. Y Gross Profit Increased 37.3% to $4.8 million. Y Gross Profit Margin Increased to 32.9% compared to 24.9%. Y Bottom Line Improved to net loss per share of 9 cents compared to a net
Slide 20: Looking Forward to 2017.
Slide 21: Looking Forward to Fiscal Year 2017
Looking Forward to Fiscal Year 2017 L) OCC Team Continues Actions to Improve OCC. C0 Sales and Marketing Initiatives C) Product and Manufacturing Initiatives L Building on Strong Market Position.
Slide 22: Looking Forward to Fiscal Year 2017
Looking Forward to Fiscal Year 2017 U Beginning to See Indications of Growth in Certain Markets. C1 Continued Impact of Strong US Dollar. LJ Impact of Yet To Come U.S. Government Policy Changes Unknown -Markets (Military, Energy) and Costs.
Slide 23: Looking Forward to Fiscal Year 2017
Looking Forward to Fiscal Year 2017 LI Optimistic Regarding OCC’s Strategy and Positioning. U1 Optimistic Regarding Impact of Initiatives by OCC Team. J Intensity of Efforts by OCC Team Not Dependent on Economic Trends.
Slide 24: Questions and Answers.
Slide 25: When Reliability Counts...
WHEN ~— ‘ea| COPPER | network a wane mT RELIABILIT COUNTS...
Slide 26: OCC Thank You!
OCC Thank You! Connections You Can Count On.™