Slide 1: First Quarter Earnings Conference Call
Driving Change First Quarter Earnings Conference Call May 15, 2012 Jeffrey T. Gill President and CEO Brian A. Lutes Vice President & CFO Anthony C. Allen 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 det
Slide 3: Table of Contents
Table of Contents • Overview • Segment Review – Aerospace & Defense – Industrial • Q1 Financial Review • Summary • Q&A Session 3
Slide 4: Overview: Key Highlights for Q1
Overview Key Highlights for Q1 • Revenue increased 27.2% to $96.5 million during the period, up from $75.8 million in the first quarter of 2011 and up 15.4% sequentially from the fourth quarter of last year. • Gross profit rose 53.6% to $12.5 million, up from $8.1 million in the first quarter of las
Slide 5: Aerospace & Defense Key Highlights
Aerospace & Defense Key Highlights • Revenue was $13.9 million in the first quarter compared to $16.3 million for the prior year period, but up 23% sequentially from $11.4 million in the fourth quarter of 2011. • Gross margin was 18.6% compared to 18.5% for the prior year period, and up significantl
Slide 6: Aerospace & Defense Outlook
Aerospace & Defense Outlook • As we mentioned during our last call, we are planning for sequential revenue and profit growth for this business as we move through 2012. • Our recently-developed cyber range test bed and related training services are receiving a great deal of interest from countries in
Slide 7: Industrial Key Highlights
Industrial Key Highlights • Revenue increased 38.6% to $82.5 million, up from $59.6 million for the prior year period, reflecting continued organic growth and industry expansion. • Gross profit increased 93.3% to $9.9 million from $5.1 million in the first quarter of 2011, reflecting a 20.9% rate of
Slide 8: Industrial Outlook
Industrial Outlook • The environment for commercial vehicles and trailers in North America remains positive, with improving economic fundamentals in tact. – The recent slowdown in order rates for heavy-duty vehicles reflects a healthy market and perhaps one that is more sustainable over the long-ter
Slide 9: Consolidated Financial Results (1Q12 vs 1Q11)
Consolidated Financial Results ($ in thousands, except for per share data) 1Q12 1Q11 ∆ Highlights Revenue 96,463 75,810 27.2% SIG revenue growth of 39% Gross Profit 12,514 8,148 53.6% 20.9% conversion on incremental SIG sales Gross Margin 13.0% 10.7% EBITDA (1) 9,650 7,300 32.2% Improved revenues an
Slide 10: Consolidated Financial Results (1Q12 vs 4Q11)
Consolidated Financial Results ($ in thousands, except for per share data) 1Q12 4Q11 ∆ Highlights Revenue 96,463 83,580 15.4% Increases in both businesses Gross Profit 12,514 8,707 43.7% Positive conversion; recovery of A&D Gross Margin 13.0% 10.4% Positive operating performance EBITDA (1) 9,650 4,5
Slide 11: Aerospace & Defense (1Q12 vs 1Q11)
Aerospace & Defense ($ in thousands) 1Q12 1Q11 ∆ Highlights Revenue 13,941 16,260 (14.3%) Completion of programs; budgetary uncertainty Gross Profit 2,592 3,016 (14.1%) Decrease in revenue Gross Margin 18.6% 18.5% Margin strength offsets delayed volumes (1) EBITDA 176 576 (69.4%) Continued optimism
Slide 12: Aerospace & Defense (1Q12 vs 4Q11)
Aerospace & Defense ($ in thousands) 1Q12 4Q11 ∆ Highlights Revenue 13,941 11,357 22.7% Resumed shipments previously delayed Gross Profit 2,592 507 411.2% Volume back above breakeven at gross profit Gross Margin 18.6% 4.5% Margins recover (1) EBITDA 176 (2,559) 106.8% Continued optimism for future r
Slide 13: Industrial (1Q12 vs 1Q11)
Industrial ($ in thousands) 1Q12 1Q11 ∆ Highlights Revenue 82,522 59,550 38.6% Organic growth and market expansion Gross Profit 9,922 5,132 93.3% Positive conversion; production efficiencies Gross Margin 12.0% 8.6% Strength in margins expected to continue (1) EBITDA 12,026 8,843 36.0% Positive conve
Slide 14: Industrial (1Q12 vs 4Q11)
Industrial ($ in thousands) 1Q12 4Q11 ∆ Highlights Revenue 82,522 72,223 14.3% Organic growth and market expansion Gross Profit 9,922 8,200 21.0% Positive conversion; production efficiencies Gross Margin 12.0% 11.4% Strength in margins expected to continue (1) EBITDA 12,026 9,215 30.5% Volume; produ
Slide 15: Summary
Summary • Revenue increased 27.2%, while gross profit rose 53.6% from the prior year period, reflecting strong conversion on incremental revenue driven by our reduced cost structure and sustained operational performance: – Industrial Group gross profit increased 93% from the prior year quarter on a
Slide 16: Q & A Session
Earnings Conference Call Q & A Session 16