Slide 1: 2019 Second Quarter Earnings Conference Call
Jeffrey T. Gill 2019 Second Quarter President & CEO Earnings Conference Call Anthony C. Allen Vice President & CFO August 14, 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 recen
Slide 3: Table of Contents
Table of Contents • Overview • Outlook • Financial Review • Key Takeaways • Q&A Session 3
Slide 4: Overview: 2Q19 Highlights
Overview 2Q19 Highlights • Revenue increased 6.4% YOY and 24.9% sequentially – 10.1% increase YOY for Sypris Technologies – Revenue was even for Sypris Electronics YOY; up 121% sequentially • Gross margin increased to 16.3%, up from 12.8% last year – 53.5% increase in gross profit for Sypris Technol
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 to continue at historically high levels • The light vehicle market continues to be positively supported by a strong North A
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 $95-$105 – G
Slide 8: Financial Review Second Quarter 2019
Financial Review Anthony C. Allen Vice President & CFO Second Quarter 2019 August 14, 2019
Slide 9: 2Q Financial Results
2Q Financial Results $ millions 2Q 2019 2Q 2018 Consolidated ST SE Consolidated Change Net Revenue $ 24.4 $ 16.9 $ 7.6 $ 23.0 $ 1.5 Gross Margin 16.3% 17.6% 13.6% 12.8% 350 bps Operating Income $ 0.3 $ 1.5 $ 0.3 $ (0.5) $ 0.8 • Consolidated revenue up $1.5m and gross profit up $1.1m from prior year
Slide 10: 1H Financial Results
1H Financial Results $ millions 1H 2019 1H 2018 Consolidated ST SE Consolidated Change Net Revenue $ 44.0 $ 33.0 $ 11.0 $ 42.9 $ 1.1 Gross Margin 11.0% 16.0% (3.8)% 11.6% (60) bps Operating Income $ (2.4) $ 2.6 $ (2.1) $ (2.2) $ (0.2) • Consolidated revenue up 2.6% as 2Q growth offsets low 1Q perfor
Slide 11: Outlook Update
Outlook Update $ millions Outlook FY 2019 Net Revenue $95 to $105 Gross Margin 14% to 16% SG&A 13% to 14% • 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 12: 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 13: Key Takeaways
Key Takeaways • 2Q revenue increased 6.4% over the prior year period and 24.9% sequentially • Gross profit increased $3.1 million sequentially to $4 million or 16.3% of revenue • Sypris Technologies revenue increased $1.6 million to $16.9 million, up 10.1% YOY and 4.6% sequentially • Sypris Electron
Slide 14: Question and Answer Session
Jeffrey T. Gill Question and Answer Session President & CEO 2Q Earnings Conference Call Anthony C. Allen Vice President & CFO August 14, 2019