Sypris Solutions, Inc. · NASDAQ:SYPR
Sypris Solutions — Q3 2019 Earnings Presentation
14 slides from Sypris Solutions's earnings presentation, Nov 12, 2019
Slide 1: 2019 Third Quarter Earnings Conference Call
Jeffrey T. Gill 2019 Third Quarter President & CEO Earnings Conference Call Anthony C. Allen Vice President & CFO November 12, 2019
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 risks and uncertainties, as detailed in our most recen
Slide 3: Table of Contents
Table of Contents • Overview • Outlook • Financial Review • Key Takeaways • Q&A Session 3
Slide 4: Overview: 3Q19 Highlights
Overview 3Q19 Highlights • Revenue increased 5.5% YOY to $22.3 million – 5.4% increase for Sypris Technologies – 5.7% increase for Sypris Electronics • Gross margin increased to 10.5% vs 5.7% in 3Q18 – 16.1% for Sypris Technologies, up from 8.9% • Gross profit nearly doubled YOY to $2.3 million – Gr
Slide 5: Overview: 3Q19 Highlights, New Contract Awards
Overview 3Q19 Highlights • Received important new contract awards across the business – Sypris Electronics • Announced a multi-year contract award from Northrop Grumman Corporation to manufacture a variety of mission-critical electronic assemblies for a large Department of Defense program – Sypris T
Slide 6: Outlook
Outlook • The market for Class 8 trucks has softened materially, impacting production rates beginning in Q4 – Class 8 sales expected to be down 25% in 2020, pulling back from the record levels of 2017 and 2018 – Ramp up of new programs expected to substantially offset the top line impact in 2020, wh
Slide 7: Outlook
Outlook • New contract awards, generally positive market conditions and lower costs align for improved results • Growth, mix and operational performance expected to support positive margin expansion • Both business units expected to be solidly profitable • Guidance 4Q19 2020 – Revenue $23.0-$25.0 $9
Slide 8: Financial Review Third Quarter 2019
Financial Review Anthony C. Allen Vice President & CFO Third Quarter 2019 November 12, 2019
Slide 9: 3Q Financial Results
3Q Financial Results $ millions 3Q 2019 3Q 2018 Consolidated ST SE Consolidated Change Net Revenue $ 22.3 $ 15.7 $ 6.6 $ 21.1 $ 1.2 Gross Margin 10.5% 16.1% (2.8)% 5.7% 480 bps Operating Income (Loss) $ (1.0) $ 1.0 $ (0.9) $ (2.0) $ 1.0 • Consolidated revenue up $1.2m and gross profit up $1.1m from
Slide 10: YTD Financial Results
YTD Financial Results $ millions YTD 2019 YTD 2018 Consolidated ST SE Consolidated Change Net Revenue $ 66.3 $ 48.7 $ 17.6 $ 64.0 $ 2.3 Gross Margin 10.8% 16.0% (3.4)% 9.6% 120 bps Operating Income $ (3.4) $ 3.6 $ (2.9) $ (4.2) $ 0.8 • Consolidated revenue up $2.3m and gross profit up $1.0m from pri
Slide 11: Outlook Update
Outlook Update $ millions Outlook Outlook 4Q 2019 FY 2020 Net Revenue $23 to $25 $95 to $105 Gross Margin 15% to 17% 15% to 17% SG&A 12% to 14% 12% to 14% • Revenue outlook reflects addition of new programs partially offset by lower demand in the commercial vehicle market • Expected rebound in SE sh
Slide 12: YOY Revenue and Margin Improvements
YOY Revenue and Margin Improvements 16% 16.0% 10.9% • Targeting 11% revenue increase in 2020 • Margin expected to increase 400 bps in 2020 • New programs expected to offset lower demand • Return to targeted range beginning in 4Q 2019 in the commercial vehicle market • Drivers include higher volume f
Slide 13: Key Takeaways
Key Takeaways • 3Q revenue increased $1.2 million or 5.5% over the prior year period • Gross profit increased $1.1 million over the prior year period to $2.3 million or 10.5% of revenue • Sypris Technologies revenue increased $0.8 million to $15.7 million, up 5.4% YOY; gross margin increased 720 bas
Slide 14: Question and Answer Session
Jeffrey T. Gill Question and Answer Session President & CEO 3Q Earnings Conference Call Anthony C. Allen Vice President & CFO November 12, 2019