Slide 1: 2019 First Quarter Earnings Conference Call
Jeffrey T. Gill 2019 First Quarter President & CEO Earnings Conference Call Anthony C. Allen Vice President & CFO May 15, 2019
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 • Q&A Session 3
Slide 4: Overview: 1Q19 Highlights
Overview 1Q19 Highlights • Revenue of $19.6 million – 11.3% increase for Sypris Technologies • Favorable market conditions for automotive, heavy truck and energy driving increased volume – Shortage of electronic components and contract delay contributed to reduced revenue for Sypris Electronics • Co
Slide 5: Outlook: 2019 Full Year
Outlook 2019 Full Year • The outlook for each of our markets remains positive • The heavy-duty truck market is showing considerable strength – N.A. Class 8 forecasts production will be up 4% in 2019 over record setting highs in 2018 • The light vehicle market continues to be positively supported by
Slide 6: Outlook: 2019 Full Year
Outlook 2019 Full Year • DoD spending on the rise – US military spending is expanding significantly – Well positioned with top-tier DoD prime contractors on targeted programs • New program starts expected to support top line growth through the balance of 2019 • Continue to work with customers to sec
Slide 7: Outlook: 2019 Full Year
Outlook 2019 Full Year • New contract awards, positive market conditions and lower costs align for positive year • Growth, mix and operational performance expected to support positive margin expansion • Both business units expected to be profitable for the year • Guidance 2019 – Revenue $100-$110 –
Slide 8: Financial Review First Quarter 2019
Financial Review Anthony C. Allen Vice President & CFO First Quarter 2019 May 15, 2019
Slide 9: 1Q Financial Results
1Q Financial Results $ millions 1Q 2019 1Q 2018 Consolidated ST SE Consolidated Change Net Revenue $ 19.6 $ 16.1 $ 3.4 $ 19.9 $ (0.4) Gross Margin 8.1% 14.3% (20.8)% 10.2% (210) bps Operating Income $ (2.0) $ 1.1 $ (1.6) $ (1.6) $ (0.3) • Consolidated revenue down slightly from the prior-year • ST r
Slide 10: Outlook Update
Outlook Update $ millions Outlook FY 2019 Net Revenue $100 to $110 Gross Margin 14% to 16% SG&A 11% to 13% • Revenue outlook reflects backlog and favorable market conditions • Gross margin expected to improve sequentially throughout 2019 • Continuous improvement initiatives and higher volumes for ST
Slide 11: YOY Revenue and Margin Improvements
YOY Revenue and Margin Improvements 16.0% 10.9% • Forecasting double digit growth to surpass 2016 • Continue upward trend of margin improvements • New programs expected to contribute to 2019 • Continuous improvement actions planned to revenue in both segments increase labor productivity • Auto, heav
Slide 12: Key Takeaways
Key Takeaways • 1Q Revenue showed a slight reduction from the prior year reflecting the expected slow start for Sypris Electronics • Sypris Technologies revenue increased $1.6 million to $16.1 million, up 11.3% YOY and 6.7% sequentially • Improvements in component availability and the completion of
Slide 13: Question and Answer Session
Jeffrey T. Gill Question and Answer Session President & CEO 1Q Earnings Conference Call Anthony C. Allen Vice President & CFO May 15, 2019