Slide 1: 2022 First Quarter Earnings Conference Call
Jeffrey T. Gill 2022 First Quarter President & CEO Earnings Conference Call Anthony C. Allen Vice President & CFO May 18, 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: 1Q22 Highlights
Overview 1Q22 Highlights • Revenue rose 30.9% – 32.7% increase for Sypris Electronics – 30.1% increase for Sypris Technologies • Gross profit grew 148.3% – 113.5% increase for Sypris Electronics – 167.5% increase for Sypris Technologies • Gross margin expanded 810 basis points to 17.2% – 580 bps inc
Slide 5: Overview: 1Q22 Highlights, New Contract Awards
Overview 1Q22 Highlights • New Contract Awards – Sypris Electronics • Multi-year follow-on contract to produce and test power supply modules for large U.S. Navy program • Multi-year follow-on contract for power supply modules for mission-critical, long-range, precision-guided anti- ship missile syst
Slide 6: Outlook: Commercial Vehicle
Outlook Commercial Vehicle • Class 8 demand expected to increase 11.9% in 2022 and 8.7% in 2023 − US economic expansion − Housing strength − Manufacturing prosperity − Transition to e-commerce − Carrier profitability − Goods for services swap • Shortage of semiconductors and other key components lik
Slide 7: Outlook: Energy
Outlook Energy • Demand for LNG is forecast to outpace all other sources of fossil fuel for the foreseeable future • U.S. natural gas prices are up significantly, with Henry Hub spot prices of $6.60 per million BTU, up from $2.66 last year • Oil prices have increased significantly over the past year
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 1Q22 positively – Revenue up 30.9%; backlog up 9% since the end of 2021 – Gross profit up 148.3%; gross margin up 810 basis points • Markets are in good shape – Production of commercial vehicles is forecast to expand 11.9% in 2022 and an additional 8.7% in 2023 – Defense s
Slide 11: Financial Review First Quarter 2022
Financial Review Anthony C. Allen Vice President & CFO First Quarter 2022 May 18, 2022
Slide 12: 1Q Financial Results
1Q Financial Results $ millions except per share data 1Q 2022 1Q 2021 ST SE Consolidated Consolidated Change Net Revenue $ 17.2 $ 9.0 $ 26.2 $ 20.0 $ 6.2 Gross Profit 3.1 1.4 4.5 1.8 2.7 Gross Margin 18.3% 15.3% 17.2% 9.1% 810 bps SG&A 3.4 2.9 0.5 Operating Income 1.1 (1.1) 2.2 Net Income 0.2 (1.6)
Slide 13: Gross Margin Performance
Gross Margin Performance • Year-over-year gross margin improvement of 810 basis points • 1Q 2022 gross margin 10 bps above midpoint of FY 2022 outlook • First quarter performance improves trailing twelve month margin to 16.6% 13
Slide 14: Key Takeaways
Key Takeaways • Positive start to 2022 continues our trend in profitability over the last 4 quarters • Favorable Q1 year-over-year comparisons – Revenue increased 30.9% – Gross profit increased 148.3% – Gross margin increased 810 bps – Operating income increased $2.2 million – EPS of $0.01 improved