Slide 1: 2018 First Quarter Earnings Conference Call
Jeffrey T. Gill 2018 First Quarter President & CEO Earnings Conference Call Anthony C. Allen Vice President & CFO May 15, 2018
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: 1Q18 Highlights
Overview 1Q18 Highlights • Revenue increased 9.7% quarter-over-quarter – 13.7% increase at Sypris Technologies • Gross margin expanded to 10.2% for Q1 2018 – Up from -3.0% last year; Up 320 basis points sequentially – 14.5% for Sypris Technologies – continued trend of increasing margins and profitab
Slide 5: 1Q18 Highlights: Market Outlook
Overview 1Q18 Highlights • The outlook for each of our markets remains positive • The heavy-duty truck market is showing considerable strength – Demand remains at record levels and fleets are still attempting to add capacity as fast as possible – N.A. Class 8 truck orders increased 50% in April 2018
Slide 6: Outlook
Outlook • 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 solidly profitable • Guidance 1H18 2H18 2018 – Revenue $43-$45 $47-$51 $90-$9
Slide 7: Financial Review First Quarter 2018
Financial Review Anthony C. Allen Vice President & CFO First Quarter 2018 May 15, 2018
Slide 8: 1Q Financial Results
1Q Financial Results $ millions 1Q 2018 1Q 2017 Consolidated ST SE Consolidated Change Net Revenue $ 19.9 $ 14.5 $ 5.4 $ 18.2 $ 1.7 Gross Margin 10.2% 14.5% (1.4)% (3.0)% 1,320 bps Adjusted Operating Income $ (1.1) $ 0.8 $ (0.8) $ (4.0) $ 2.9 • Consolidated revenue up 9.7% and adjusted operating inc
Slide 9: Outlook Update
Outlook Update $ millions Outlook Outlook Outlook 1H 2018 2H 2018 FY 2018 Net Revenue $43 to $45 $47 to $51 $90 to $96 Gross Margin 13% to 15% 16% to 18% 15% to 17% SG&A 14% to 16% 12% to 13.5% 13% to 14.5% • Revenue outlook reflects solid backlog and strong market conditions • Expect 1H revenue out
Slide 10: Outlook Update
Outlook Update $ millions Actual Outlook Outlook 1Q 2018 2Q 2018 1H 2018 Consolidated Net Revenue $19.9 $23 to $25 $43 to $45 Gross Margin 10.2% 16% to 18% 13% to 15% Sypris Technologies Net Revenue $14.5 $16 to $17 $30.5 to $31.5 Gross Margin 14.5% 18% to 21% 16% to 18% Sypris Electronics Net Reven
Slide 11: Mix + Cost Reductions Drive Margin in 2018
Mix + Cost Reductions Drive Margin in 2018 • Cost reductions from closure of ST Broadway Plant expected to provide uplift in gross margin for 2018 • Electronic component shortages expected to abate during Q2, supporting a return to higher, historical levels of shipments • Favorable YOY revenue mix t
Slide 12: Key Takeaways
Key Takeaways • 1Q revenue increased $1.8 million or 9.7% over the prior year period • Gross margin improved to 10.2% in 1Q, up from negative 3.0% in prior year • SG&A expense reduction of $0.3 million or 7.7% in 1Q from 2017 • ST generates positive operating income for 1Q • Confirming revenue guida
Slide 13: Question and Answer Session
Jeffrey T. Gill Question and Answer Session President & CEO 1Q Earnings Conference Call Anthony C. Allen Vice President & CFO May 15, 2018