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    Steven Kohl • Mangrove Partners

    Steven Kohl's questions to RF Industries Ltd (RFIL) leadership

    Steven Kohl's questions to RF Industries Ltd (RFIL) leadership • Q2 2025

    Question

    Steven Kohl from Mangrove Money asked for more details on the anticipated new credit facility, including its timing and potential savings. He also questioned the path from the current 6% adjusted EBITDA margin to the 10% target and sought more color on the growth and customer diversity within the DAC and small cell product lines.

    Answer

    CFO Peter Yin stated that a new, more favorable credit facility is expected in Q3 or by year-end, which should provide meaningful interest savings. CEO Robert Dawson addressed the margin question, explaining the path to 10% EBITDA involves improving product mix, increasing manufacturing efficiency, and leveraging operating costs as sales grow. Dawson also confirmed that both DAC and small cell product lines are material contributors to growth, driven by a diverse set of customers and regions, providing confidence for future performance.

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    Steven Kohl's questions to RF Industries Ltd (RFIL) leadership • Q4 2024

    Question

    Steven Kohl of Mangrove asked for an update on facility rationalization efforts, the changing business mix between CapEx and OpEx-driven sales, and details about the recent changes and additions to the sales force.

    Answer

    Executive Robert Dawson responded that the heavy lifting on facility rationalization is largely complete, with future opportunities focused on load-balancing production between coasts for efficiency gains. He explained that the business mix is shifting towards a 50-50 balance between CapEx and OpEx in the carrier space, driven by the growth of DAC thermal cooling, which helps reduce seasonality. Regarding the sales force, Dawson clarified that the company has made targeted hires of industry veterans with existing relationships, effectively trading out expenses rather than increasing overall headcount, and noted that the company's strong reputation helps attract such talent.

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    Steven Kohl's questions to RF Industries Ltd (RFIL) leadership • Q3 2024

    Question

    Steven Kohl asked about the revenue level required to achieve significant operating leverage and accelerate profitability. He also requested an update on the company's current facility footprint and inquired about the broader macro environment, including trends in the venue market and the impact of competitors like CommScope.

    Answer

    CEO Robert Dawson explained that while the company has lowered its breakeven point, he expects significant acceleration in profitability and operating leverage when quarterly sales surpass the $18 million mark. He detailed the company's four primary facilities in San Diego, New Jersey, Connecticut, and New York. Regarding the macro outlook, Dawson noted that interest rate cuts would be beneficial and that the market appears to be normalizing. He expressed optimism for a recovery in venue-related spending in 2025, which would benefit the Microlab product line.

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    Steven Kohl's questions to RF Industries Ltd (RFIL) leadership • Q1 2025

    Question

    Steven Kohl of Mangrove asked for more details on the company's strategic shift from components to integrated solutions, the expected progression toward its 10% adjusted EBITDA target, projections for cash flow and debt reduction, and the current performance of the Microlab business.

    Answer

    CEO Robert Dawson described the move to solutions as a multi-year strategy to gain more control over the bill of materials and solve higher-level customer problems, noting the company is in the early stages of capitalizing on these wins. He stated that progress toward the 10% adjusted EBITDA goal will be driven by both improved gross margins from a better product mix and ongoing operational efficiencies. CFO Peter Yin added that the company has made significant debt paydowns and is monitoring for more advantageous financing as performance improves. Dawson concluded that the Microlab acquisition has been valuable, providing a 'seat at the table' with major carriers and enabling pull-through of other products.

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