Slide 1: 2020 Third Quarter Earnings Conference Call
Jeffrey T. Gill 2020 Third Quarter President & CEO Earnings Conference Call Anthony C. Allen Vice President & CFO November 12, 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: 3Q20 Highlights
Overview 3Q20 Highlights • Revenue increased 29.2% sequentially – Sypris Electronics up 52.6% YOY; 3.9% sequentially – Sypris Technologies up 62.1% sequentially • Gross profit up 47.1% from prior year and 70.8% sequentially – Gross margin increased 490 basis points YOY; 370 basis points sequentially
Slide 5: Overview: 3Q20 Highlights - Sypris Electronics
Overview 3Q20 Highlights • Sypris Electronics – Revenue increased 52.6% YOY; 3.9% sequentially • Strong backlog of orders; up 27.2% from 2019 year-end • Backlog up while supporting 62% YTD increase in sales – Gross profit increased by a factor of 9 times YOY; Gross margin increased to 15.0%, up 1,78
Slide 6: Overview: 3Q20 Highlights - Sypris Technologies
Overview 3Q20 Highlights • Sypris Technologies – Revenue increased 62.1% sequentially – Gross profit increased 732.8% sequentially, while gross margin expanded to 15.8%, up from 3.1% sequentially – Positive YTD segment operating performance despite pandemic-related headwinds – Outlook from customers
Slide 7: Revenue Mix by Market
Revenue Mix by Market • Significant shift in markets served provides balanced revenue mix Specialty Automotive • Launch of transmission shaft program Communications 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 • The market for defense electronics remains positive; we have a strong focus on ensuring that we maintain deliveries for our customers – Order backlog is up 27.2% from year-end – Margins have expanded significantly with volume YOY • Demand from commercial vehicle, specialty automotive, all-
Slide 9: Financial Review Third Quarter 2020
Financial Review Anthony C. Allen Vice President & CFO Third Quarter 2020 November 12, 2020
Slide 10: 3Q Financial Results
3Q Financial Results • Consolidated revenue up $5.0 million or 29.2% sequentially • SE revenue up $3.5 million, or 52.6%, over the prior year and gross margin expands 1,780 basis points to 15.0% • ST revenue rebounded 62.1% sequentially from Covid-19 impact in 2Q • SG&A down $0.6 million from prior
Slide 11: YTD Financial Results
YTD Financial Results $ millions YTD 2020 YTD 2019 Consolidated ST SE Consolidated Change Net Revenue $ 61.7 $ 33.2 $ 28.5 $ 66.3 $ (4.5) Gross Margin 14.6% 13.9% 15.4% 10.8% 380 bps SG&A $ 8.6 $ 10.2 $ (1.6) Operating Income (Loss) $ 0.3 $ 1.2 $ 2.2 $ (3.4) $ 3.7 • Consolidated revenue down $4.5 mi
Slide 12: Quarterly Revenue
Quarterly Revenue SE Program • Class 8 downturn beginning in 4Q 2019 Growth and ST Market offset by SE growth and ST market Diversification diversification • Covid-19 impacted revenue beginning late March • ST 3Q revenue of $12.1m, up 62.1% sequentially • Ramp in new ST programs anticipated to parti
Slide 13: Gross Margin Performance
Gross Margin Performance • 3Q YTD gross margin above historical levels despite Q2 setback • SE YTD gross margin of 15.4%, up 1,880 basis points YOY • Conversion on SE revenue growth along with improved material availability drive margin improvement • ST YTD gross margin of 13.9%, down 210 basis poin
Slide 14: Key Takeaways
Key Takeaways • 3Q revenue growth of 29.2% sequentially; in line with prior year • Gross profit increased $1.1 million or 47.1% over the prior year to $3.4 million • Demand recovered for Sypris Technologies beginning in June and current outlook shows positive trend for 2021 • 3Q revenue for Sypris E
Slide 15: Question and Answer Session
Jeffrey T. Gill Question and Answer Session President & CEO 3Q Earnings Conference Call Anthony C. Allen Vice President & CFO November 12, 2020