Slide 1: 2015 Third Quarter Earnings Conference Call
Jeffrey T. Gill 2015 Third Quarter President & CEO Earnings Conference Call Anthony C. Allen Vice President & CFO November 17, 2015
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 • Segment Review – Sypris Electronics – Sypris Technologies • Financial Review • Summary • Q&A Session 3
Slide 4: Overview: Q3 Highlights
Overview Q3 Highlights • Q3 marked significant, continued improvement over Q2 – Gross margin increased to 6.4% – EPS loss of $0.01 compared to a loss of $0.43 per share for Q2 – Net debt reduced to $13.8 million, down 42% • $15.7 million in cash proceeds received through the sale of manufacturing as
Slide 5: Sypris Electronics: Q3 Highlights
Sypris Electronics Q3 Highlights • Financial Results – Revenue increased 39% from 3Q14 and 21% from 2Q15 – Gross profit was $0.5 million compared to a loss of $1.1 million for the prior year period • The Cyber Range was commissioned by the Ministry of Home Affairs for the Security Operations Center
Slide 6: Sypris Electronics Outlook
Sypris Electronics Active Nation State Outlook A Threat Level • US defense industry challenges are likely to continue Advanced Persistent Threat Most B Organizations – We remain committed to improving our portfolio Passive C E D Conventional Threat through diversification, achieving a better Agility
Slide 7: Sypris Technologies: Q3 Highlights
Sypris Technologies Q3 Highlights • Financial Results – Sales declined 13% sequentially, reflecting the sale of the Morganton assets, offset by a 10% increase in sales for the remaining business – Gross margin increased to 7.1% versus 1.8% for Q2 • Quality and delivery at world class levels • The sa
Slide 8: Sypris Technologies Outlook
Sypris Technologies Outlook • Markets – 2016 Class 5-8 commercial vehicle production is forecast to soften 9% versus 2015 (ACT Research 11/15) – Light vehicle and trailer markets remain positive – Oil and gas outlook mixed, with oil-related projects down, while natural gas projects remain solid • Pe
Slide 9: Financial Review Third Quarter 2015
Financial Review Anthony C. Allen Vice President & CFO Third Quarter 2015 November 17, 2015
Slide 10: Consolidated Financial Results
Consolidated Financial Results $ millions Sequential 2015 Q3 2015 Q2 Change 2014 Q3 Net Revenue $ 38.4 $ 40.8 $ (2.4) $ 90.2 Gross Profit $ 2.5 $ - $ 2.5 $ 8.2 EBITDA $ 5.8 $ (4.8) $ 10.6 $ 2.8 Free Cash Flow $ (4.0) $ (3.2) $ (0.8) $ (0.6) Sale of Morganton assets offset by revenue growth from co
Slide 11: Segment Performance
Segment Performance $ millions Sypris Technologies Sypris Electronics 2015 Q3 2015 Q2 2015 Q3 2015 Q2 Net Revenue $ 27.8 $ 32.0 $ 10.6 $ 8.7 Gross Profit (Loss) $ 2.0 $ 0.6 $ 0.5 $ (0.6) EBITDA $ 8.4 $ - $ (0.6) $ (2.4) Net Revenue ST decrease attributable to sale of Morganton assets partially offse
Slide 12: Debt Status
Debt Status $ millions 2015 Q3 October 30, 2015 Change Prior Credit Facility $ 6.2 $ - $ (6.2) Senior Revolving Credit Facility $ - $ 1.3 $ 1.3 Senior Tem Debt $ - $ 12.0 $ 12.0 Subordinated Debt $ 9.3 $ 5.5 $ (3.8) Total Debt $ 15.5 $ 18.8 $ 3.3 Entered into new loan agreements consisting of $15
Slide 13: Summary
Summary • The Company’s gross margin increased to 6.4% of revenue, up sequentially from losses of 0.1% and 8.5% for 2Q15 and 1Q15, respectively • The Company generated $15.7 million in cash proceeds through transactions involving the sale of its manufacturing assets located in Morganton, NC • The Co
Slide 14: Question and Answer Session
Jeffrey T. Gill Question and Answer Session President & CEO Q3 Earnings Conference Call Anthony C. Allen Vice President & CFO November 17, 2015