Slide 1: 2013 First Quarter Earnings Conference Call
Jeffrey T. Gill 2013 First Quarter President & CEO Earnings Conference Call Brian A. Lutes Vice President & CFO Anthony C. Allen May 14, 2013 Vice President & Treasurer
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure Non-GAAP Financial Measures Any non-GAAP measures, and their related reconciliation to GAAP measures, are provided and available on the company’s website: www.sypris.com Each “forward-looking statement” herein is subject to serious risks and should not be relied upon, as detai
Slide 3: Table of Contents
Table of Contents • Overview • Segment Review – Aerospace & Defense – Industrial • Financial Review • Summary • Q&A Session 3
Slide 4: Overview: Q1 Highlights
Overview Q1 Highlights • Revenue In-line with Expectations – Sales of $78.4 million, up 16% from 4Q12 – Fueled by 28% growth in Industrial sales • Gross Profit of $8.1 million – Gross margin of 10.3% – Strong performance in Industrial offset by decline in Aerospace & Defense • EPS Reflect A&D Goodwi
Slide 5: Aerospace & Defense: Q1 Highlights
Aerospace & Defense Q1 Highlights • Financial Results – Sequestration and associated program funding delays had a significant impact on financial results – Decision made to write off all goodwill based upon the recent change in outlook • Maintained R&D Investments – $0.9 million invested in new tech
Slide 6: Aerospace & Defense Outlook
Aerospace & Defense Outlook • US Budgetary Issues to Continue – Sequester; continuing resolution; etc. – Challenging environment – must diversify • Increase Product Sales: NATO, Japan and India • Grow EMS Sales in Severe Environment Markets – Increase share with ITT, Northrop Grumman, L3 – “Trusted
Slide 7: Industrial: Q1 Highlights
Industrial Q1 Highlights • Financial Results – Sales of $71.1 million, up 28% from 4Q12 – Gross profit of $8.1 million, up 45% from 4Q12 – Gross margin of 11.4%, up 130 basis points from 4Q12 – EBITDA of $9.4 million, or 13% of sales • New Business – 7 New Program Wins • Global Oil and Gas Markets R
Slide 8: Industrial Outlook
Industrial Outlook • Markets Remain Positive – Commercial vehicle outlook is solid – Light truck and trailer also favorable – Oil and gas to experience continued growth • Capture New Program Growth – 19 Quotes in Process • Drive Margin Expansion through Volume & Efficiencies – Leverage fixed costs –
Slide 9: Financial Review First Quarter 2013
Financial Review Brian A. Lutes Vice President & CFO First Quarter 2013 Anthony C. Allen Vice President & Treasurer May 14, 2013
Slide 10: Consolidated Financial Results: Year-Over-Year
Consolidated Financial Results Year-Over-Year Results ($ in thousands, except EPS) 1Q12 1Q13 Revenue $ 96,463 $ 78,411 • YOY revenue down, but SIG recovery showed sequential improvement from Q4 Gross Profit 12,514 8,076 • GP declines on lower revenue Gross Margin 13.0% 10.3% • Lower YOY revenues in
Slide 11: Consolidated Financial Results: Sequential
Consolidated Financial Results Sequential Results ($ in thousands, except EPS) 4Q12 1Q13 Revenue $ 67,466 $ 78,411 • SIG recovery drives sequential improvement Gross Profit 8,638 8,076 • A&D market challenges largely offset Gross Margin 12.8% 10.3% • Lower A&D revenue and much different product mix
Slide 12: A&D Financial Results
A&D Financial Results Revenue Gross Margin ($ in millions) 25.6% $13.9 $12.0 18.6% $7.3 $7.3 (0.5%) (0.5%) 1Q12 1Q13 4Q12 1Q13 1Q12 1Q13 4Q12 1Q13 YOY Results Sequential Results YOY Results Sequential Results • Defense budgetary and funding • Gross margin was breakeven for the uncertainties resulted
Slide 13: ST Financial Results
ST Financial Results Revenue Gross Margin ($ in millions) $82.5 12.0% $71.1 $71.1 11.4% 11.4% 10.1 % $55.5 1Q12 1Q13 4Q12 1Q13 1Q12 1Q13 4Q12 1Q13 YOY Results Sequential Results YOY Results Sequential Results • Renewed demand drives commercial • Despite a 14% YOY decrease in vehicle market rebound r
Slide 14: Summary
Summary • Commercial Vehicle markets have continued to rebound from the 2H 2012 downturn: – Industrial revenue up 28% from the fourth quarter of 2012 to $71.1 million – Industrial gross margin up 130 bps from the fourth quarter of 2012 to 11.4% – Industrial EBITDA of $9.4 million generated for the q
Slide 15: Question and Answer Session
Jeffrey T. Gill Question and Answer Session President & CEO Q1 Earnings Conference Call Brian A. Lutes Vice President & CFO Anthony C. Allen May 14, 2013 Vice President & Treasurer