Slide 1: 2012 Fourth Quarter and Full Year Earnings Conference Call
Jeffrey T. Gill 2012 Fourth Quarter and Full Year President & CEO Earnings Conference Call Brian A. Lutes Vice President & CFO Anthony C. Allen March 12,, 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 • S Segment t Review R i – Aerospace & Defense – Industrial • Financial Review • Summary • Q&A Session 3
Slide 4: Overview: 2012 Highlights
Overview 2012 Highlights • Earnings and Margins Expand Faster than Sales – Revenue up 2% to $342 million – Gross profit up 24% to $44 million – Gross margin expands 230 basis points to 12.8% 12 8% – Income(1) up 22% to exceed $10 million – EPS(1) up 16% to $0.50 per diluted share • R i t t d Common
Slide 5: Aerospace & Defense 2012 Highlights
Aerospace & Defense 2012 Highlights • Margins Increase on Expanded Product Mix – Revenue down 11% to $56 million – Gross profit up 62% to $13 million – Gross margin increases to 23.0% 23 0% from 12.7% 12 7% – R&D up 12% to $3.8 million • Increased International Product Sales – Australia, A t li N Ne
Slide 6: Aerospace & Defense 2013 Outlook
Aerospace & Defense 2013 Outlook • US Budgetary Issues to Continue – Sequester; Continuing Resolution; Etc. – US Government markets expected to be dynamic • IIncrease Product P d t Sales S l tto NATO countries, ti Japan J and d India • Grow EMS Sales in Severe Environment Markets – ITT ITT, Tyco, T
Slide 7: Industrial 2012 Highlights
Industrial 2012 Highlights • Revenue and Margins Expand – Revenue up 5% to $286 million – Gross profit up 13% to $31 million – Gross margin expands 80 basis points to 10.8% 10 8% – EBITDA of $35 million, or 12.2% of sales • Increased Sales 27% to Global Oil and Gas Markets • Engaged Toyota to Implem
Slide 8: Industrial 2013 Outlook
Industrial 2013 Outlook • Market Outlooks are Positive – Commercial vehicle to recover from 4Q12 – Light truck and trailer to remain solid – Agriculture and off highway to be stable – Oil and gas to experience continued growth • Support Increased Sales to Mexico and Brazil • Drive Margin Expansion t
Slide 9: Financial Review 2012 Fourth Quarter and Full Year
Financial Review Brian A. Lutes Vi President Vice P id t & CFO 2012 Fourth Quarter and Full Year Anthony C. Allen Vice President & Treasurer March 12,, 2013
Slide 10: Financial Results (4Q11 vs 4Q12)
Financial Results ($ in thousands, except EPS) 4Q11 4Q12 Revenue $ 83,580 $ 67,466 • 2H decline in commercial vehicle market Gross Profit 8,707 8,638 • GP holds despite a 19% revenue decline Gross Margin 10.4% 12.8% • Strength in execution; cost control EPS(1) $ 0.07 $ (0.04) • Non-cash write-off of
Slide 11: Financial Results (2011 vs 2012)
Financial Results ($ in thousands, except EPS) 2011 2012 Revenue $ 335,625 $ 341,604 • 2H decline in commercial vehicle market Gross Profit 35,229 43,749 • GP improves $8.5 million on nearly flat sales Gross Margin 10.5% 12.8% • Up 230 bps; strength of execution; mix EPS(1) $ 0.43 $ 0.50 • $0.07 imp
Slide 12: A&D Financial Results
A&D Financial Results Revenue Gross Margin ($ in millions) 25.6% $62 3 $62.3 23 0% 23.0% $55.6 $12.0 12.7% $11.4 4.5% 4Q11 4Q12 FY11 FY12 4Q11 4Q12 FY11 FY12 • Continuing Resolution, Presidential • Q4 gross margin expanded to 25.6%, Election and threat of Sequestration as a result of product sales t
Slide 13: Industrial Financial Results
Industrial Financial Results Revenue Gross Margin ($ in millions) $286.0 $273.3 11.4% 10.8% 10.1% 10.0% $72.2 $55.5 4Q11 4Q12 FY11 FY12 4Q11 4Q12 FY11 FY12 • 4Q revenue negatively impacted vs. • Achieved 4Q gross margin of 10.1%, prior year period due to 2H decline in down 130 bps, despite a $16.7 m
Slide 14: Summary
Summary • Margins and Earnings Continue to Outpace Revenue Growth for 2012 – Gross profit up 24% to $44 million on 2% sales growth – Gross margin up 230 basis points to 12.8% – Income(1) up 22% to $10 million; earnings(1) up 16% to $0.50 per diluted share • 4Q12 Performance Solid – Industrial gross
Slide 15: Question and Answer Session
Jeffrey T. Gill Question and Answer Session President & CEO 2012 Earnings Conference Call Brian A. Lutes Vice President & CFO Anthony C. Allen March 12,, 2013 Vice President & Treasurer