Rf Industries, Ltd. · NASDAQ:RFIL
Rf Industries — Investor Presentation (December 2019)
21 slides from Rf Industries's investor presentation, December 2019
Slide 1: Leading Designer and Manufacturer of Interconnect Products
Leading Designer and Manufacturer of Interconnect Products NASDAQ: RFIL © RF Industries Ltd. |1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-looking statements contained in this presentation involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially and adversely from those expressed or implied by such forward-looki
Slide 3: Executive Team
Executive Team Robert Dawson Mark Turfler President and CEO Senior Vice President and CFO Joined: July 2017 Joined: June 2013 Added to Board: July 2018 Prior Industry Experience Finance Experience 2014-2016 President and CEO, Vision 35 years of accounting and finance experience Technology Serv
Slide 4: We've Seen A Significant Improvement In Our Results!
We’ve Seen A Significant Improvement In Our Results! Revenue Net Income (in millions) (in millions) ** $55.3 $50.2 $5.8 ** $3.4 $21.6 $23.0 $0.4 2016 2017 2018 2019 ($4.1) 2016 2017 2018 2019 ** Based on preliminary unaudited financial results © RF Industries Ltd. |4
Slide 5: RFIL company statistics
: RFIL Headquarters San Diego, CA Statistics 12/2/19 5 production locations Stock Price $6.00 (3 Northeast, 2 Southwest) $5.14 / Corning Gold, ISO 9001: 2008 Certified 52 Week Low-High $8.89 Founded 1979 Avg. Vol. (3 months) 25K IPO 1984 Shares Outstanding 9.3M Employees 300 EV to Sales (TTM) .90x C
Slide 6: Coaxial Cable Assemblies, Fiber Optic Cable
Coaxial Cable Fiber Optic Cable FTTA Cable Wiring Harnesses Assemblies Assemblies Assemblies RF Coaxial RF Coaxial Adapters Low PIM Products Passive Components Connectors © RF Industries Ltd. |6
Slide 7: Cell Tower Site Materials, Small Cells, Distributed Antenna System
Cell Tower Site Materials Small Cells Distributed Antenna System (DAS) Design, Engineer and Build Hybrid Fiber Cable assemblies and components for Our components are used to provide & Power Cables for 4G and 5G Network small cell applications to support enhanced wireless coverage in Deployment (You
Slide 8: Advanced Oilfield Technology, Aerospace, Transportation
Advanced Oilfield Aerospace Transportation Technology Build & test control stick Transit doors and gates - Build control wiring for wiring for flight control stick designed for light and heavy drilling equipment for military helicopters rail applications © RF Industries Ltd. |8
Slide 9: 5G will transform industries
Global Connector Market = $80.4B by 2023₁ N.A. Cable Assembly Market = $33.4B₂ “5G will transform industries and should be viewed as a business strategy for all.” - Steve Mollenkopf, CEO, Qualcomm 5G Build-Out Spend = $130B in 2024₃ DAS Market = $8B growing to $18B in 2026⁴ Small Cell= 80% of future
Slide 10: Distribution and Direct/OEM channels
Distribution – 60% Biggest opportunities are in distribution centric markets (force multiplier) • Access to thousands of customers • No A/R collection issues (99% of sales are in US and Canada) • No inventory obsolescence issues • Focus on what we do best Direct/OEM – 40% • Highly customized cable a
Slide 11: Distribution Partners and OEM Customers
Distribution Partners OEM Customers © RF Industries Ltd. | 11
Slide 12: Who's Our Competition?
Who’s Our Competition? Large Competitors Small Competitors Multinational with Local/Regional Broad Offering Our Value Proposition and Differentiation Fast – Faster lead times than larger competitors Flexible – Customized product (labor intensive; can’t buy off the shelf) High Quality – High qu
Slide 13: Annual Financial Performance
Annual Financial Performance (ended Oct. 31) Revenue Net Income Diluted EPS from (in millions) (in millions) Net Income ** $55.3 $50.2 $5.8 $0.61 ** ** $3.4 $0.35 $0.4 $0.04 $21.6 $23.0 2016 2017 2018 2019 2016 2017 2018 2019 ($4.1) ($0.46) 2016 2017 2018 2019 -4% +6% +118% +10% -19.0% 1.7% 11.6% 6.
Slide 14: Quarterly Revenue Trend
Quarterly Revenue Trend Revenue (in millions) $20.5 ** $15.5 $15.5 $13.6 $11.8 $9.9 $10.6 $7.0 $8.0 $4.8 $5.3 $5.9 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 -17.2% +10.4% +11.3% +18.6% +14.3% +156.3% -42.4% -16.1% +7.1% +28.3% +14.0% 0.0% Quarter
Slide 15: Balance Sheet Supports Growth
Balance Sheet Supports Growth Oct. 31, Oct.31, Jul. 31, $ in millions 2017 2018 2019 Cash Balances (in millions) Cash $5.2 $16.3 $13.3 $16.3 $13.3 Total Assets $25.1 $32.5 $36.1 Stockholders’ $21.4 $27.8 $30.6 Equity $5.2 Total Debt $0 $0 $0 2017 2018 Q3 2019 © RF Industries Ltd. | 15
Slide 16: Organic and Inorganic growth
Organic Run rate business Core fast-turn production 10-15% annual growth Project business transitioning to long-term relationships Get our product spec’d in customer projects and included on customer BOMs Deliver a quality, customized solution where others cannot Convert this into ru
Slide 17: C Enterprises acquisition
C Enterprises – Acquisition announced March 11, 2019 Based in Vista, California West coast fiber optic manufacturing capabilities Corning Gold certificate member 2018 unaudited revenues of $8.7M Expected to be accretive to earnings in fiscal 2020 Brings strong fiber optic and copper prod
Slide 18: Schroff Tech acquisition
Schroff Tech – Acquisition announced November 4, 2019 Based in Rhode Island Manufacturer of products serving the high growth wireless, telecom and cable markets Two primary products: ▪ Energy efficient cooling system for wireless base stations ▪ Family of custom designed, pole ready 5G small c
Slide 19: Building a platform for long term growth
Building a platform for long term growth Deliver more consistent and predictable results 3-year plan to grow to $100 million in sales Organic growth – low to mid-teens annual revenue growth – leveraging distribution and OEM relationships Inorganic growth – remain committed to adding anothe
Slide 20: Key takeaways
Our products are everywhere and make lots of things work Recent results have delivered revenue growth plus a long-standing dividend Our new sales model is driving growth We’re faster and more flexible while delivering high quality customized products and solutions We have the promise of 5G
Slide 21: RF Industries, Ltd. contacts
RF Industries, Ltd. MKR Investor Relations Mark Turfler Todd Kehrli SVP/CFO Analyst/Investor Contact (858) 549-6340 (323) 468-2300 [email protected] [email protected] © RF Industries Ltd. | 21
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