Slide 1: First Quarter Earnings Conference Call
Driving Change First Quarter Earnings Conference Call May 17, 2011 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 detai
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
Overview • Key Highlights for Q1 – Revenue increased 20.5% to $75.8 million during the period, up from $62.9 million in the first quarter of 2010 and up 12.8% sequentially from the fourth quarter of last year. – Gross profit rose 41.3% to $8.1 million, up from $5.8 million in the first quarter of la
Slide 5: Aerospace & Defense
Aerospace & Defense • Revenue declined slightly during the period from prior year levels as a result of funding shortfalls associated with the delayed approval of the 2011 Defense Appropriations Bill and the restrictions imposed by the Continuing Resolution. • With the recent approval and signing of
Slide 6: Aerospace & Defense
Aerospace & Defense • We continued to make important progress on our contract with the Department of Energy to develop a centralized cryptographic key management system to protect the Smart Grid and our nation’s critical infrastructure from cyber attacks. • We are moving forward with various governm
Slide 7: Industrial
Industrial • Revenue increased 35.0% during the quarter when compared to the prior year period and rose 24.7% sequentially from 4Q10 driven by the continued recovery of the commercial vehicle and trailer markets. • Gross profit increased 109.2% and 166.0% on a year-over-year and sequential basis, re
Slide 8: Industrial
Industrial • The commercial vehicle market appears to be benefiting from a positive convergence of economic and market forces that are having a significant impact on the current demand for new vehicles. – GDP growth continues to drive an increase in freight tonnage. • Freight volumes have been on th
Slide 9: Industrial
Industrial • ACT is currently forecasting robust demand for the next several years across all segments, though it should be noted that 2011 Class 8 volumes remain only slightly above historical replacement requirements of ~ 240,000 units. Q1 Q2 Q3 Q4 2011 2012 2013 Class 5-7 39.6 33.3 36.5 38.9 148.
Slide 10: Consolidated Financial Results
Consolidated Financial Results ($ in thousands) 1Q11 1Q10 ∆ Highlights Revenue 75,810 62,903 20.5% SIG revenue growth of 35% Gross Profit 8,148 5,768 41.3% 17.3% conversion on incremental SIG sales Gross Margin 10.7% 9.2% 150 basis point margin expansion EBITDA (1) 7,300 2,096 248.3% Positive SIG co
Slide 11: Aerospace & Defense
Aerospace & Defense ($ in thousands) 1Q11 1Q10 ∆ Highlights Revenue 16,260 18,797 (13.5%) Delay of 2011 Defense Appropriations Bill Gross Profit 3,016 3,315 (9.0%) Lower volume due to delays Gross Margin 18.5% 17.6% Margin strength offsets delayed volumes (1) EBITDA 576 1,624 (64.5%) Continued optim
Slide 12: Industrial
Industrial ($ in thousands) 1Q11 1Q10 ∆ Highlights Revenue 59,550 44,106 35.0% Continuing recovery of CV market Gross Profit 5,132 2,453 109.2% Positive conversion; productivity and efficiency Gross Margin 8.6% 5.6% Expect further margin expansion (1) EBITDA 8,843 2,431 263.8% Positive conversion; i
Slide 13: Summary
Summary • Sales increased 20.5%, while gross profit rose 41.3% from the prior year period, reflecting strong conversion on incremental revenue driven by our reduced cost structure and sustained operational performance: – Industrial Group gross margin expanded to 8.6% of revenue, up from 5.6% for the
Slide 14: Q & A Session
Earnings Conference Call Q & A Session 14