Sypris Solutions, Inc. · NASDAQ:SYPR
Sypris Solutions — Q1 2023 Earnings Presentation
15 slides from Sypris Solutions's earnings presentation, May 16, 2023
Slide 1: 2023 First Quarter Earnings Conference Call
Jeffrey T. Gill 2023 First Quarter President & CEO Earnings Conference Call Richard L. Davis Vice President & CFO May 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: 1Q23 Highlights
Overview 1Q23 Highlights • Revenue increased 23.4% from the prior year period – Up 42.0% for Sypris Electronics – Up 13.7% for Sypris Technologies • Orders rose 73.6% year-over-year – Up 91.4% for Sypris Electronics – Up 25.7% for the energy products of Sypris Technologies – Demand from transportati
Slide 5: Overview: 1Q23 Highlights - Sypris Electronics News
Overview 1Q23 Highlights • Important Public News Releases – Sypris Electronics • Announced an award to produce and test electronic interface modules for a U.S. Department of Defense weapons system – Part of an ongoing modernization program to increase strategic and tactical capabilities – To be inco
Slide 6: Overview: 1Q23 Highlights - Sypris Technologies News and Outlook
Overview 1Q23 Highlights • Important Public News Releases – Sypris Technologies • Announced an amendment to expand an existing supply agreement with Detroit Diesel Corporation, a subsidiary of Daimler Truck North America – Drivetrain components for use in Freightliner’s heavy-duty trucks – Shipments
Slide 7: Outlook: Commercial Vehicle
Outlook Commercial Vehicle • Class 8 demand expected to increase slightly in 2023 − Continued pent-up demand − Large backlog supporting 2023 levels • Long-term contract extensions and expansions provide opportunities to grow through market cycles • The current outlook for 2023 indicates some softeni
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 $131.6 million for Defense Electronics leads to Energy expanded mix in 2023 • New Commercial Vehicle programs drive an increase in volume in 2023, but overall share will
Slide 11: Outlook: Summary
Outlook Summary • Revenue increased 23.4% – Up 42.0% for Sypris Electronics – Up 13.7% for Sypris Technologies • Orders and backlog were strong; up 73.6% and 121.0%, respectively – Up 91.4% and 125.0%, respectively, for Sypris Electronics – Up 25.7% and 61.0%, respectively, for Sypris Technologies •
Slide 12: Financial Review First Quarter 2023
Financial Review Richard L. Davis Vice President & CFO First Quarter 2023 May 16, 2023
Slide 13: 1Q Financial Results
1Q Financial Results $ millions except per share data 1Q 2023 1Q 2022 ST SE Consolidated Consolidated Change Net Revenue $ 19.5 $ 12.8 $ 32.3 $ 26.2 $ 6.1 Gross Profit 2.6 1.5 4.2 4.5 (0.3) Gross Margin 13.5% 11.9% 12.9% 17.2% (430) bps Operating Income 0.4 1.1 (0.7) Net (Loss) Income (0.2) 0.2 (0.4
Slide 14: Gross Margin Performance
Gross Margin Performance • FY 2022 reduced on production – Supply chain delays and defects which caused production inefficiencies – Material price increase pass- throughs to customers without additional markup • FY 2023 impacted by unfavorable foreign exchange rates and production ramp up inefficien
Slide 15: Key Takeaways
Key Takeaways • Revenue for 1Q 2023 increased 23.4%, with SE up 42.0% and ST up 13.7% • Backlog increased 121.0% for the period, marking the 11th consecutive quarter of year- over-year growth – leading to the ramp-up of new programs, with higher levels of revenue, operating efficiency and margin exp