Sypris Solutions, Inc. · NASDAQ:SYPR
Sypris Solutions — Q2 2014 Earnings Presentation
15 slides from Sypris Solutions's earnings presentation, Aug 5, 2014
Slide 1: 2014 Second Quarter Earnings Conference Call
Jeffrey T. Gill 2014 Second Quarter President & CEO Earnings Conference Call Anthony C. Allen Vice President & Treasurer August 5, 2014
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 • Segment Review – Aerospace & Defense – Industrial • Financial Review • Summary • Q&A Session 3
Slide 4: Overview: Q2 Highlights
Overview Q2 Highlights • Strong Quarter – Revenue, Gross Profit and Gross Margin Increased versus 2Q13 – Sales up 13% to $93 million – Gross Profit up 30% to $11 million – Gross Margin up 150 basis points to 11.6% • EPS Improved Quarterly – $0.02 per diluted share • Positive Free Cash Flow • On sche
Slide 5: Aerospace & Defense Q2 Highlights
Aerospace & Defense Q2 Highlights • Financial Results – Revenue increased 22% from 2Q13 – Gross profit remained unchanged – Maintained Investments in Technology – R&D impact on P&L improved by customer funding – Driving proof of concept with customers • New Business Opportunities Underway – Lockheed
Slide 6: Aerospace & Defense Outlook
Aerospace & Defense Outlook • US defense industry challenges are likely to continue – We remain committed to improving our portfolio through diversification, achieving a better hardware/software balance • Key Areas of Focus – Secure customer funding to integrate new, demonstrated technologies, such
Slide 7: Industrial Q2 Highlights
Industrial Q2 Highlights • Financial Results versus 2Q13 – Sales up 12% to $84 million – Gross profit up 29% to $11.4 million – Gross margin up 170 basis points to 13.6% – EBITDA increased to $9.4 million; 11% of revenue • Notified of new business awards from customers in agricultural, light truck a
Slide 8: Industrial Outlook
Industrial Outlook • Markets Remain Positive – Commercial vehicle demand versus 2013 – Class 8 forecast to increase 21% – Class 5-7 forecast to increase 6% – Trailer production is forecast to be up 10% – Oil and gas markets robust • New Business Outlook Positive – Quotations now in excess of $140 mi
Slide 9: Financial Review Second Quarter 2014
Financial Review Anthony C. Allen Vice President & Treasurer Second Quarter 2014 August 5, 2014
Slide 10: Consolidated Financial Results: Year-Over-Year
Consolidated Financial Results Year-Over-Year Results ($ in thousands, except EPS) 2Q14 2Q13 Revenue $ 93,113 $ 82,166 • YOY increase in both segments Gross Profit 10,827 8,336 • Volume contributes to GP increase Gross Margin 11.6% 10.1% • Revenue and cost efficiencies contribute to 150 bps gain in
Slide 11: Consolidated Financial Results: Sequential
Consolidated Financial Results Sequential Results ($ in thousands, except EPS) 2Q14 1Q14 Revenue $ 93,113 $ 84,244 • Sequential increase in both segments Gross Profit 10,827 10,564 • Industrial Group drives profit improvement Gross Margin 11.6% 12.5% • 90 bps decline attributable to favorable mix in
Slide 12: A&D Financial Results
A&D Financial Results Revenue Gross Margin ($ in millions) $9.4 $9.4 $8.4 $7.7 (5.9%) (5.9%) (6.7%) (7.0%) 2Q14 2Q13 2Q14 1Q14 2Q14 2Q13 2Q14 1Q14 YOY Results Sequential Results YOY Results Sequential Results • Program delays/losses starting to be • Gross profit is flat on slight offset by new wins
Slide 13: Industrial Financial Results
Industrial Financial Results Revenue Gross Margin ($ in millions) $83.7 $83.7 14.7% 13.6% 13.6% 11.9% $75.8 $74.4 2Q14 2Q13 2Q14 1Q14 2Q14 2Q13 2Q14 1Q14 YOY Results Sequential Results YOY Results Sequential Results • End-user demand for commercial • With a 12% YOY increase in revenue vehicles drivi
Slide 14: Summary
Summary • Solid second quarter and first half performance led by the Industrial Group • Outlook for the commercial vehicle market remains positive for balance of year • Industrial Group’s quality, delivery and other key operational metrics maintained at targeted levels as volumes rise • Deployment o
Slide 15: Question and Answer Session
Jeffrey T. Gill Question and Answer Session President & CEO Q2 Earnings Conference Call Anthony C. Allen Vice President & Treasurer August 5, 2014