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EXHIBIT 99
[LABARGE INC LOGO]
[GRAPHIC]
FOCUS.
STRATEGY.
PROGRESS.
AN OVERVIEW OF
LABARGE, INC.
DECEMBER 2000
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[LABARGE INC LOGO]
DELIVERING ON STRATEGIC GOALS
- Positive trends in key indicators
- Better-focused strategy and organizational structure
- Significant backlog growth
- "Breakthrough" contracts for Network Technologies Group and
proprietary ScadaNET Network(TM)
- Higher gross margins
- Improved capacity utilization in Manufacturing Services business
- Network Technologies business
- EBITDA growing significantly
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[LABARGE INC LOGO]
OUR STRATEGY
Build on Our
Core Competencies
Grow the core Add proprietary
electronics capabilities,
manufacturing technologies and
services business products
MANUFACTURING NETWORK
SERVICES GROUP TECHNOLOGIES GROUP
99% OF REVENUES* 1% OF REVENUES*
*For fiscal 2001 first quarter, ended 10/1/00.
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[LABARGE INC LOGO]
[GRAPHIC]
MANUFACTURING
SERVICES GROUP
Provides contract design and manufacturing services for
sophisticated, high-reliability electronics to
customers in a wide variety of technology-driven
markets
Allows customers to effectively outsource complex
applications
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[LABARGE INC LOGO]
[GRAPHIC]
NETWORK
TECHNOLOGIES
GROUP
Designs and markets proprietary wireless data
communications products and network services that
provide monitoring and control of remote industrial
equipment
Proprietary products, capabilities and technologies
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[LABARGE INC LOGO]
FISCAL 2000 INITIATIVES
- Manufacturing Services Group: restore core business growth
- Revamp and implement new sales and marketing strategy
- New management structure - improved disciplines
- Reorganization and upgrade of sales force
- Targeting of select customers who can benefit from our
expertise
- Broader diversification of customer base
- Improve coordination between sales and operations
- Network Technologies Group
- Develop initial orders for proprietary product
- Aggressive business plan
- High gross margin potential
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[LABARGE INC LOGO]
MANUFACTURING SERVICES GROUP -
QUARTERLY BACKLOG
(In millions of dollars)
[LINE GRAPH]
FY99 Q3 FY99 Q4 FY00 Q1 FY00 Q2 FY00 Q3 FY00 Q4 FY01 Q1 FY01 Q2 E
$42.8 $42.7 $54.0 $58.3 $59.1 $62.7 $65.7* $85.0
*HIGHEST BACKLOG IN 10 QUARTERS
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[LABARGE INC LOGO]
MANUFACTURING SERVICES GROUP -
DIVERSE MARKETS - SALES
[PIE CHART]
Aerospace Defense Industrial Medical Oil and Gas Government Systems Semiconductor Other
14% 33% 1% 3% 18% 25% 3% 3%
Breakdown of sales for fiscal 2001 first quarter, ended 10/1/00.
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[LABARGE INC LOGO]
ELECTRONICS MANUFACTURING
SERVICES INDUSTRY
- Strong trend toward outsourcing electronics production
- $100+ billion worldwide in 2000*
- Large, fragmented market
- Many players serving many markets
- Increased complexity of electronic products
- LaBarge's customer base:
- Companies that want to focus on own core competencies and boost
efficiencies
- LaBarge's niche:
- Low- to mid-volume
- High complexity/High reliability
- Higher margin potential
*Source: Electronic Buyers' News, 9/18/00.
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[LABARGE INC LOGO]
MANUFACTURING SERVICES GROUP -
LOCATIONS
[MAP GRAPHIC]
- - U.S. manufacturing operations
- Arkansas (Berryville and Huntsville)
- Missouri (Joplin)
- Oklahoma (Tulsa)
- Texas (Houston)
Domestic manufacturing enhances
our customers' outsourcing strategy (speed,
transport costs, security, quality, service).
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[LABARGE INC LOGO]
MANUFACTURING SERVICES GROUP -
DIFFERENTIATORS
- Broad-based specialized capabilities
- Customized applications
- Highly engineered products
- Sophisticated electronic assembly capability
- Complete systems solutions
- Broad array of other value-added services
- Systems design
- Engineering and product development
- Direct link with customer
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[LABARGE INC LOGO]
MANUFACTURING SERVICES GROUP -
TOP 10 CUSTOMERS
- Northrop Grumman - Postal systems and defense
- Schlumberger - Oilfield service equipment and tooling
- Lockheed Martin - Defense and commercial aerospace
- Sensis Corporation - Defense
- Rockwell Collins - In-flight entertainment systems
- General Electric - Medical and aircraft engines
- Boeing - Defense and commercial aerospace
- General Dynamics - Defense
- United Space Alliance - Space Shuttle
- Terumo - Medical
For fiscal 2001 first quarter, ended 10/1/00.
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[LABARGE INC LOGO]
MANUFACTURING SERVICES GROUP -
ACHIEVEMENTS
- Developing important new customers
- Enhanced resources needed for growth - investments in equipment,
technology and people
- Greater visibility in marketplace
- More effective sales/marketing approach: target customers
- New management/improved focus and accountability
- Increased bookings: highest backlog in 10 quarters
- $39 million Northrop Grumman contract
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[LABARGE INC LOGO]
MANUFACTURING SERVICES GROUP -
STRATEGIES FOR GROWTH
- Maximize opportunities within existing customer base
- Strength of our customer relationships
- Leveraging performance for additional contracts with customers
- Booked 86% more business from our 10 largest customers in FY
2000
- Develop new customers that fit LaBarge profile
- Typically large, technology-driven companies
- Need for outsourcing and/or sophisticated capabilities
- Broad array of growth industries
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[LABARGE INC LOGO]
NETWORK TECHNOLOGIES GROUP
- Acquired through March 1999 OCS acquisition
- Adds proprietary electronic products
- Increases LaBarge's capabilities and knowledge
- Hardware and software engineering capability
- New product development
- Marketing and ongoing services
- Products manufactured by LaBarge's Manufacturing Services Group
- Higher gross margins
- Ongoing revenue stream from service agreements
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[LABARGE INC]
NETWORK TECHNOLOGIES GROUP -
DIFFERENTIATOR
- Proprietary ScadaNET Network(TM)
- Application for remote locations
- End-to-end solution
- Leverages existing cellular telephone infrastructure and Internet
technologies
- Low cost, two-way data communication
- More reliable monitoring of industrial equipment
[GRAPHIC]
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[LABARGE INC LOGO]
SCADANET NETWORK (TM) -
SUCCESS IN RAIL INDUSTRY
- First target market
- Small number of major rail players
- Small number of industry suppliers, not technologically oriented
- 1,500 units sold
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[LABARGE INC LOGO]
SCADANET NETWORK (TM) -
SUCCESS IN RAIL INDUSTRY (CONT.)
- Remotely monitors the functionality of crossing equipment
- Standardization by rail organizations
- Burlington Northern and Santa Fe
- Union Pacific
- Montana Rail Link
- I&M Rail Link
- Endorsement and funding by state transportation departments for
safety programs
- Illinois outfitting all new crossings with ScadaNET
- 23 states have approved ScadaNET for new crossings
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[LABARGE INC LOGO]
NETWORK TECHNOLOGIES GROUP -
STRATEGY FOR GROWTH
- Goal: ScadaNET Network(TM) as standard in railroad industry
- Target large, well-defined opportunities where LaBarge can be the
dominant player
- Natural gas pipelines: cathodic protection equipment
- Move toward profitability
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[LABARGE INC LOGO]
NET SALES/GROSS PROFIT MARGINS -
FIVE-YEAR HISTORY
(In millions of dollars)
[LINE GRAPH]
1996 1997 1998 1999 2000 2001 E
Net sales 75.1 96.7 95.6 78.6 79.6 100
Gross profit margin 18.6 19.9 23.2 20.2 22.5 22.5
From continuing operations.
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[LABARGE INC LOGO]
NET SALES/GROSS PROFIT MARGINS -
QUARTERLY HISTORY
(In millions of dollars)
[LINE GRAPH]
FY99 Q1 FY99 Q2 FY99 Q3 FY99 Q4 FY00 Q1 FY00 Q2 FY00 Q3 FY00 Q4 FY01 Q1
Net sales 21.1 21.6 19.2 16.7 14.1 17.6 22.1 25.8 24.3
Gross profit margin 22.3 21.0 18.8 18.2 17.4 19.1 23.6 26.8 22.8
From continuing operations.
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[LABARGE INC LOGO]
INTERIM RESULTS
(dollars in thousands) THREE MONTHS ENDED
OCT. 1, 2000 OCT. 3, 1999 % CHANGE
Net sales $24,284 $14,131 + 72%
Cost of sales 18,737 11,670 + 61%
Gross profit 5,547 2,461 + 125%
Selling and administrative 4,188 3,686 + 14%
Net earnings from
continuing ops $ 634 $(1,340)
Diluted EPS from
continuing ops $ .04 $ (.09)
EBITDA from
continuing ops* $ 2,420 $ (388)
*Less non-recurring items
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[LABARGE INC LOGO]
COMPARATIVE BALANCE SHEET ITEMS
(dollars in thousands)
OCT. 1, 2000 OCT. 3, 1999
Current assets $ 43,232 $ 28,964
Current liabilities 27,487 16,347
Total debt 26,917 23,018
Equity 26,458 22,577
Senior debt/EBITDA (LTM) 2.5 6.7
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[LABARGE INC LOGO]
LABARGE'S FOCUSED COMMITMENT
TO AGGRESSIVE, PROFITABLE GROWTH
- Excellent reputation and customer base
- Broadening our reach
- Target new customers
- Attain new proprietary capabilities and skills
- FY 2001 second-quarter results expected to be comparable to first
quarter
- Strong backlog in core business
- FY 2001 second-half results expected to be up from first half
- Entering second half with anticipated backlog of $85 million
- ScadaNET progress and growth opportunity
- Strengthening balance sheet
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