Slide 1: 2021 Fourth Quarter and Full Year Earnings Conference Call
Jeffrey T. Gill 2021 Fourth Quarter and Full Year President & CEO Earnings Conference Call Anthony C. Allen Vice President & CFO March 17, 2022
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 3
Slide 4: Overview: 4Q21 Highlights
Overview 4Q21 Highlights • Revenue rose 25.2% – 30.0% increase for Sypris Electronics – 21.7% increase for Sypris Technologies • Gross profit grew 65.1% – 83.5% increase for Sypris Electronics – 51.5% increase for Sypris Technologies • Gross margin expanded 420 basis points to 17.1% – 540 bps increa
Slide 5: Overview: New Contract Awards
Overview New Contract Awards • Sypris Electronics – Announced an award to produce and test embedded circuit card assemblies that will perform certain cryptographic functions for the Army Key Management System; production to begin in 2022 – Received a multi-year follow-on contract for power supply mo
Slide 6: Outlook: Commercial Vehicle
Outlook Commercial Vehicle • Class 8 demand expected to increase 11.9% in 2022 and 21.6% in 2023 − US economic expansion − Housing strength − Manufacturing prosperity − Transition to e-commerce − Carrier profitability − Goods for services swap • Supply chain challenges leads to pent-up demand pushin
Slide 7: Outlook: Energy
Outlook Energy • Demand for LNG is forecast to outpace all other sources of fossil fuel for the foreseeable future • Oil prices have increased significantly over the past year, with the price of WTI up 60% from March 2021; Brent crude up 58% • Outlook for oil prices to increase to top out at ~$112 p
Slide 8: Outlook: Defense Electronics
Outlook Defense Electronics • The long-term outlook for defense spending remains positive • Technology upgrades to existing strategic platforms will take precedence − Naval electronic warfare; surveillance − Avionics upgrades; electronic warfare − Missile guidance − Secure communications • Deep-sea
Slide 9: Outlook: Revenue Mix
Outlook Revenue Mix • Revenue is expected to increase 25% Specialty Automotive to 30% in 2022 Communications • New programs and the strength of the commercial vehicle market drives an increase in volume in 2022, but mix will Commercial Vehicle decline due to strength of other markets • Backlog for d
Slide 10: Outlook: Summary
Outlook Summary • Finished 4Q21 positively – Revenue up 25%; backlog up 57% – Gross profit up 65%; gross margin up 420 basis points – Earnings up 133% • Markets are in good shape – Production of commercial vehicles is forecast to expand 11.9% in 2022 and an additional 21.6% in 2023 – Defense spendin
Slide 11: Financial Review
Financial Review Anthony C. Allen Vice President & CFO Fourth Quarter 2022 March 17, 2022
Slide 12: 4Q Financial Results
4Q Financial Results $ millions except per share data 4Q 2021 4Q 2020 Consolidated ST SE Consolidated Change Net Revenue $ 25.8 $ 14.7 $ 11.1 $ 20.6 $ 5.2 Gross Margin 17.1% 15.8% 18.7% 12.9% 420 bps Operating Income $ 1.1 $ 1.1 $ 1.2 $ (0.2) $ 1.3 Net Income (Loss) $ 0.4 $ (1.2) $ 1.6 Diluted EPS $
Slide 13: Full Year Financial Results
Full Year Financial Results $ millions except per share data 2021 2020 Consolidated ST SE Consolidated Change Net Revenue $ 97.4 $ 61.7 $ 35.7 $ 82.3 $ 15.1 Gross Margin 14.9% 13.1% 17.9% 14.6% 30 bps Operating Income $ 1.9 $ 3.5 $ 2.8 $ 0.1 $ 1.8 Net Income $ 2.9 $ 1.7 $ 1.3 Diluted EPS $ 0.13 $ 0.
Slide 14: Gross Margin Performance
Gross Margin Performance • Margin improvement of 30 basis points in 2021 driven by SE performance • Gross margin improved beginning in Q2 as revenue reached consistent run rate • Margin performance over final 3 quarters of 16.4% in line with expectation for 2022 14
Slide 15: Key Takeaways
Key Takeaways • A positive end to 2021 as 4Q revenue increased 25.2% and FY revenue increased 18.3% • Gross profit also improved with Q4 increase of 65.1% and FY increase of 20.4% • Gross margin for 4Q increased 420 bps to 17.1%; FY gross margin increased 30 bps • Operating income increased to $1.9