inTEST Reports Record $123.3 Million in Revenue and Net Income

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

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

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