Slide 1: 2016 First Quarter Earnings Conference Call
Jeffrey T. Gill 2016 First Quarter President & CEO Earnings Conference Call Anthony C. Allen Vice President & CFO May 18, 2016
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 • Segment Review – Sypris Electronics – Sypris Technologies • Financial Review • Summary • Q&A Session 3
Slide 4: Overview: Q1 Highlights
Overview Q1 Highlights • Q1 marked significant, continued improvement over the prior year comparable period, despite softness in the commercial vehicle market – Revenue decline reflects impact of CV market, inventory rebalancing and divested operations – Gross profit increased $3.9 million – Gross m
Slide 5: Sypris Electronics: Q1 Highlights
Sypris Electronics Q1 Highlights • Financial Results – Revenue increased 2% from 1Q16 – Gross profit was $1.4 million compared to $0.9 million for the prior year period – Gross margin improved to 15.2% from 10.6% for the prior year period • $29.0 million of multi-year orders booked during the first
Slide 6: Sypris Electronics Outlook
Sypris Electronics Active Nation State Outlook A Threat Level B • Exploring additional business models for the Range to Advanced Persistent Threat Most further expand penetration in a variety of markets Organizations Passive C E D Conventional • Continued commercialization advancements made Agility/
Slide 7: Sypris Technologies: Q1 Highlights
Sypris Technologies Q1 Highlights • Financial Results – Sales declined from the prior year, reflecting the softness in the commercial vehicle market, inventory rebalancing and the divestiture of non-core operations – Gross profit increased by $3.4 million, 84% to a loss of $0.7 million versus a loss
Slide 8: Sypris Technologies Outlook
Sypris Technologies Outlook • Markets – 2016 Class 5-8 commercial vehicle production is forecast to fall 14% versus 2015 (ACT Research May 2016) – Light vehicle market remain positive – Oil and gas outlook appears to be stabilizing as oil prices show signs of recovery and domestic pipeline projects
Slide 9: Financial Review First Quarter 2016
Financial Review Anthony C. Allen Vice President & CFO First Quarter 2016 May 18, 2016
Slide 10: Consolidated Financial Results
Consolidated Financial Results $ millions 2016 Q1 2015 Q1 Change Net Revenue $ 26.9 $ 37.0 $ (10.1) Gross Profit $ 0.7 $ (3.2) $ 3.9 (1) EBITDA $ (2.3) $ (10.5) $ 8.2 (2) Adjusted Net Debt $ 15.4 $ 16.5 $ (1.1) • Revenue declines for Q1 driven by the divestiture of the non-core trailer axle business
Slide 11: Segment Performance
Segment Performance $ millions Sypris Technologies Sypris Electronics 2016 Q1 2015 Q1 Change 2016 Q1 2015 Q1 Change Net Revenue $ 17.8 $ 28.1 $ (10.3) $ 9.1 $ 8.9 $ 0.2 Gross Profit (Loss) $ (0.7) $ (4.1) $ 3.4 $ 1.4 $ 0.9 $ 0.5 EBITDA $ 0.3 $ (7.3) $ 7.6 $ (0.3) $ (1.4) $ 1.1 Net Revenue • ST decre
Slide 12: Summary
Summary • Revenue for the Company was $26.9 million, reflecting a reduction in demand for commercial vehicles, the rebalancing of inventory by certain customers and the divestiture of the non-core trailer axle business • The Company’s gross margin increased to 2.7% of revenue, up from a loss of 8.5%
Slide 13: Question and Answer Session
Jeffrey T. Gill Question and Answer Session President & CEO Q1 Earnings Conference Call Anthony C. Allen Vice President & CFO May 18, 2016