Sypris Solutions, Inc. · NASDAQ:SYPR
Sypris Solutions — Q1 2014 Earnings Presentation
15 slides from Sypris Solutions's earnings presentation, May 6, 2014
Slide 1: 2014 First Quarter Earnings Conference Call
Jeffrey T. Gill 2014 First Quarter President & CEO Earnings Conference Call Anthony C. Allen Vice President & Treasurer May 6, 2014
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 • Segment Review – Aerospace & Defense – Industrial • Financial Review • Summary • Q&A Session 3
Slide 4: Overview: Q1 Highlights
Overview Q1 Highlights •Strong Quarter – Revenue, Gross Profit and Gross Margin Increase – Sales up 7% from 1Q13; up 14% from 4Q13 – Gross Profit up 31% from 1Q13; up 66% from 4Q13 – Gross Margin up 220 basis points from 1Q13; up 390 basis points from 4Q13 •EPS Improves Quarterly; Sequentially – $0.
Slide 5: Aerospace & Defense: Q1 Highlights
Aerospace & Defense Q1 Highlights •Financial Results – Revenue increased 16% from 1Q13 – Gross profit and margin declined, impacted by short-term mix; improved slightly sequentially •Maintained Investments in Technology – R&D impact on P&L reduced by customer funding – Driving proof of concept with
Slide 6: Aerospace & Defense Outlook
Aerospace & Defense Outlook •US defense industry challenges are likely to continue – We remain committed to improving our portfolio through diversification, achieving a better hardware/software balance •Key Areas of Focus – Secure customer funding to integrate new, demonstrated technologies, such as
Slide 7: Industrial: Q1 Highlights
Industrial Q1 Highlights •Financial Results – Sales up 7% from 1Q13; up 19% from 4Q13 – Gross profit up 38% from 1Q13; up 54% from 4Q13 – Gross margin up 330 basis points from 1Q13; up 340 basis points from 4Q13 – EBITDA increased 18% from 1Q13; up 75% from 4Q13; just under 15% of sales •Demand for
Slide 8: Industrial Outlook
Industrial Outlook •Markets Remain Positive – Commercial vehicle demand (Class 8) expected to increase more than 15% year over year – Light vehicle orders up year over year by more than 15%; trailers stable to up slightly – Oil and gas markets expected to show continued expansion •New Program Growth
Slide 9: Financial Review First Quarter 2014
Financial Review Anthony C. Allen Vice President & Treasurer First Quarter 2014 May 6, 2014
Slide 10: Consolidated Financial Results: Year-Over-Year
Consolidated Financial Results Year-Over-Year Results ($ in thousands, except EPS) 1Q14 1Q13 Revenue $ 84,244 $ 78,411 • YOY improvements in both business segments Gross Profit 10,564 8,076 •GP increase a direct result of increased revenue and favorable mix Gross Margin 12.5% 10.3 % • Cost efficienc
Slide 11: Consolidated Financial Results: Sequential
Consolidated Financial Results Sequential Results ($ in thousands, except EPS) 1Q14 4Q13 Revenue $ 84,244 $ 73,859 • Commercial vehicle market drives sequential improvement Gross Profit 10,564 6,380 •Conversion on revenue growth by Industrial Group Gross Margin 12.5% 8.6% • Cost efficiencies and mix
Slide 12: A&D Financial Results
A&D Financial Results Revenue Gross Margin ($ in millions) $10.0 $8.4 $8.4 $7.3 (0.5%) (7.0%) (7.0%) (8.8%) 1Q14 1Q13 1Q14 4Q13 1Q14 1Q13 1Q14 4Q13 YOY Results Sequential Results YOY Results Sequential Results • Delay in technical approval for EMS • GM% improved sequentially, but contract impacted 1
Slide 13: Industrial Financial Results
Industrial Financial Results Revenue Gross Margin ($ in millions) $75.8 $75.8 14.7% 14.7% $71.1 11.4% 11.3% $63.9 1Q14 1Q13 1Q14 4Q13 1Q13 1Q14 4Q13 1Q14 YOY Results Sequential Results YOY Results Sequential Results • End-user demand for commercial • With 7% YOY increase in revenue vehicles driving
Slide 14: Summary
Summary • Solid start to 2014 with EPS of $0.08 fueled by Industrial Group performance • Commercial vehicle market orders continued to be strong in 1Q and outlook remains positive for balance of year • Industrial Group’s quality, delivery and other key operational metrics maintained at targeted leve
Slide 15: Question and Answer Session
Jeffrey T. Gill Question and Answer Session President & CEO Q1 Earnings Conference Call Anthony C. Allen Vice President & Treasurer May 6, 2014