Slide 1: 2019 Fourth Quarter and Full Year Earnings Conference Call
Jeffrey T. Gill 2019 Fourth Quarter and Full Year President & CEO Earnings Conference Call Anthony C. Allen Vice President & CFO March 19, 2020
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: 4Q19 Highlights
Overview 4Q19 Highlights • Operational performance continued to improve – Gross margins increased meaningfully across the business • Received important new contract awards in both business units – Sypris Technologies • Announced long-term contracts to produce components for use in a new dual-clutch
Slide 5: 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 recent years – Ramp up of new programs expected to substantially offset the top line impact in 2020, whi
Slide 6: Outlook
Outlook • The ramp up of new programs is anticipated to mitigate the pull back in the commercial vehicle market, while the reduction of new program launch costs is expected to result in margin expansion on a year-over-year basis • Growth, mix and operational performance are expected to support posit
Slide 7: Financial Review Fourth Quarter 2019
Financial Review Anthony C. Allen Vice President & CFO Fourth Quarter 2019 March 19, 2020
Slide 8: 4Q Financial Results
4Q Financial Results $ millions 4Q 2019 4Q 2018 Consolidated ST SE Consolidated Change Net Revenue $ 21.6 $ 13.0 $ 8.6 $ 24.0 $ (2.4) Gross Margin 12.5% 15.4% 8.2% 5.9% 660 bps Operating (Loss) Income $ (0.9) $ 0.7 $ (0.1) $ (0.1) $ (0.8) • Consolidated revenue down $2.4 million while gross margin i
Slide 9: Full Year Financial Results
Full Year Financial Results $ millions 2019 2018 Consolidated ST SE Consolidated Change Net Revenue $ 87.9 $ 61.7 $ 26.2 $ 88.0 $ (0.1) Gross Margin 11.2% 15.9% 0.4% 8.6% 260 bps Operating (Loss) Income $ (4.3) $ 4.3 $ (3.0) $ (4.3) $ - • Consolidated revenue flat; gross margin up 260 basis points •
Slide 10: Key Takeaways
Key Takeaways • 4Q revenue decline driven by softness in the commercial vehicle market and customer year- end inventory rebalancing • Gross profit in 4Q increased $1.3 million or 92.7% from the prior year period and gross margin increased 660 basis points to 12.5% • FY consolidated revenue was flat
Slide 11: Question and Answer Session
Jeffrey T. Gill Question and Answer Session President & CEO 2019 Earnings Conference Call Anthony C. Allen Vice President & CFO March 19, 2020