Sypris Solutions, Inc. · NASDAQ:SYPR
Sypris Solutions — Q4 2022 Earnings Presentation
16 slides from Sypris Solutions's earnings presentation, Mar 16, 2023
Slide 1: 2022 Fourth Quarter and Full Year Earnings Conference Call
2022 Fourth Quarter and Full Year Jeffrey T. Gill President & CEO Earnings Conference Call Richard L. Davis Vice President & CFO March 16, 2023
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 recent
Slide 3: Table of Contents
Table of Contents • Overview • Outlook • Financial Review • Key Takeaways 3
Slide 4: Overview: 4Q22 Highlights
Overview 4Q22 Highlights • Revenue up 15.2% YOY; up 17.9% from 3Q22 • Gross profit up 4.3% YOY; up 133.0% from 3Q22 • EPS of $0.01, up $0.11 from 3Q22 • Orders up 102.7% YOY; up 71.3% from 3Q22 • Backlog up 117.3% YOY; up 16.9% from 3Q22 • Both segments contributed to YOY growth – Sypris Electronics
Slide 5: Overview: 4Q22 Highlights - Important Announcements
Overview 4Q22 Highlights • Important Announcements – Sypris Electronics • An amendment to an existing multi-year contract to increase deliveries by up to 39.5% for a large, mission-critical U.S. Navy program – Electronic warfare improvement upgrade – Total potential amended contract value, including
Slide 6: Overview: Important Announcements - continued
Overview 4Q22 Highlights • Important Announcements - continued – Sypris Electronics • Subsequent to quarter end, an award to produce and test electronic interface modules for a U.S. Department of Defense weapons system – Part of an ongoing modernization program – Shipments to begin in 2023 – Sypris
Slide 7: Outlook: Commercial Vehicle
Outlook Commercial Vehicle • Class 8 production increased 19.2% in 2022 − Pent-up demand − Capacity shortfalls − Carrier profitability − Goods for services swap − Transition to e-commerce • Shortage of semiconductors and other key components has caused OEM production disruptions • Long-term contract
Slide 8: Outlook: Energy
Outlook Energy • European countries boosted LNG imports by 60% in 2022 to make up for declining pipeline gas shipments from Russia • New LNG terminals could boost the continent’s import capacity by one-third by the end of 2024 • With four LNG export facilities in operation, the U.S. became the world
Slide 9: Outlook: Defense Electronics
Outlook Defense Electronics • The long-term outlook for defense spending remains positive • Technology upgrades to existing strategic platforms will take precedence − Naval electronic warfare; surveillance − Avionics upgrades; electronic warfare − Missile guidance − Secure communications • Deep-sea
Slide 10: Outlook: Revenue Mix
Outlook Revenue Mix • Revenue is expected to increase 25%- 30% YOY in 2023 Specialty Automotive Communications • Record backlog of $118.5 million for Defense Electronics leads to expanded Energy mix in 2023 • New Commercial Vehicle programs drive an increase in volume in 2023, but Commercial Vehicle
Slide 11: Outlook: Summary
Outlook Summary • Backlog jumped 117% YOY as a result of multiple new contract awards; provides platform for strong 2023 growth – Backlog now $118.5 million at Sypris Electronics, reflecting a 119.5% YOY increase – Backlog for energy products up 75.6% YOY • Our markets overall are stable – Defense i
Slide 12: Financial Review Fourth Quarter 2022
Financial Review Richard L. Davis Vice President & CFO Fourth Quarter 2022 March 16, 2023
Slide 13: 4Q Financial Results
4Q Financial Results $ millions except per share data 4Q 2022 4Q 2021 ST SE Consolidated Consolidated Change Net Revenue $ 17.2 $ 12.5 $ 29.7 $ 25.8 $ 3.9 Gross Profit 2.2 2.4 4.6 4.4 0.2 Gross Margin 12.9% 18.9% 15.5% 17.1% (160) bps Operating Income 0.8 1.1 (0.3) Net Income 0.1 0.4 (0.3) • Consoli
Slide 14: Full Year Financial Results
Full Year Financial Results $ millions except per share data 2022 2021 ST SE Consolidated Consolidated Change Net Revenue $ 69.3 $ 40.9 $ 110.1 $ 97.4 $ 12.7 Gross Profit 8.6 6.3 14.9 14.5 0.3 Gross Margin 12.3% 15.4% 13.5% 14.9% (140) bps Operating Income 0.4 1.9 (1.5) Net (Loss) Income (2.5) 2.9 (
Slide 15: Gross Margin Performance
Gross Margin Performance • FY 2022 reduced on production inefficiencies and unfavorable mix • Supply chain issues continued to negatively affect revenue and margins through Q4 2022 • FY 2022 also impacted by material price adjustments at 0% margin and other inflationary pressures • The 2023 outlook
Slide 16: Key Takeaways
Key Takeaways • Sypris Electronics full year orders up 87% YOY, backlog up 120% YOY to a record $118.5 million • Energy product full year orders up 23% YOY, backlog up 76% over the prior year • Sypris Technologies expected to expand energy products’ presence in Europe, Asia and Middle East • Class 8