Sypris Solutions, Inc. · NASDAQ:SYPR
Sypris Solutions — Q1 2020 Earnings Presentation
14 slides from Sypris Solutions's earnings presentation, May 20, 2020
Slide 1: 2020 First Quarter Earnings Conference Call
Jeffrey T. Gill 2020 First Quarter President & CEO Earnings Conference Call Anthony C. Allen Vice President & CFO May 20, 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 rece
Slide 3: Table of Contents
Table of Contents • Overview • Outlook • Financial Review • Key Takeaways • Q&A Session 3
Slide 4: Overview: 1Q20 Highlights
Overview 1Q20 Highlights • Revenue increased 14.6% YOY; 3.7% sequentially – Shipments from new programs increased for both segments • Gross margin increased to 16.0% from 4.4% last year; up 350 basis points sequentially – Margins expanded in both segments • Operating income was positive – Gross prof
Slide 5: Overview: Sypris Technologies
Overview 1Q20 Highlights • Sypris Technologies – Revenue declined 15.0% YOY; increased 5.4% sequentially • New programs in specialty automotive and all-terrain ramped up during the quarter – Gross profit increased 8.2% YOY; 24.4% sequentially – Gross margin increased 390 basis points to 18.2% YOY; 2
Slide 6: Overview: Sypris Electronics
Overview 1Q20 Highlights • Sypris Electronics – Revenue increased 154.4% YOY; increased 1.1% sequentially • Improved component availability; new programs – Gross profit increased 176.0% YOY; 56.0% sequentially – Gross margin increased to 12.6%; up 440 basis points sequentially – Operating margin inc
Slide 7: Revenue Mix by Market
Revenue Mix by Market • Significant shift in markets served provides balanced revenue mix Specialty Automotive Communications • Launch of transmission shaft program for Specialty Automotive market adds a new market that did not exist in 2019 Commercial Vehicle • Defense Electronics, Energy and Speci
Slide 8: Outlook
Outlook • In the short-term, we expect the production of commercial vehicles to be well below prior forecasts, which had previously estimated a 25% reduction from the peak of prior years, with Q2 serving as the low point • Long-term, we believe the commercial vehicle market will reflect the positive
Slide 9: Financial Review First Quarter 2020
Financial Review Anthony C. Allen Vice President & CFO First Quarter 2020 May 20, 2020
Slide 10: 1Q Financial Results
1Q Financial Results $ millions 1Q 2020 1Q 2019 Consolidated ST SE Consolidated Change Net Revenue $ 22.4 $ 13.7 $ 8.7 $ 19.6 $ 2.9 Gross Margin 16.0% 18.2% 12.6% 4.4% 1,160 bps Operating Income (Loss) $ 0.3 $ 1.1 $ 0.4 $ (2.7) $ 3.0 • Consolidated revenue up $2.9 million and $0.8 million sequential
Slide 11: Quarterly Revenue
Quarterly Revenue • 1Q 2020 up YOY and sequentially • Class 8 downturn beginning in 4Q 2019 offset by SE growth and ST market diversification • SE revenue of $8.6m and $8.7m in 4Q 2019 and 1Q 2020, respectively, compared to $5.9m average for first 3 quarters of 2019 • ST revenue up sequentially from
Slide 12: Gross Margin Performance
Gross Margin Performance • Margin expansion continued in 1Q 2020 and was in line with expectations prior to COVID-19 • Consolidated quarterly gross margin of 16.0% ranks 2nd to 16.3% in 2Q 2019 as best performance in last 10 years – ST GM of 18.2% ranks 1st in 10 years – SE GM of 12.6% best since 2Q
Slide 13: Key Takeaways
Key Takeaways • 1Q revenue increased 14.6% over the prior year and 3.7% sequentially • Gross profit increased $2.7 million over the prior year to $3.6 million, or 16.0% of revenue • Sypris Technologies gross margin increased 390 basis points to 18.2% compared to the prior year quarter, despite lower
Slide 14: Question and Answer Session
Jeffrey T. Gill Question and Answer Session President & CEO 1Q Earnings Conference Call Anthony C. Allen Vice President & CFO May 20, 2020