Slide 1: 2014 Third Quarter Earnings Conference Call
Jeffrey T. Gill 2014 Third Quarter President & CEO Earnings Conference Call Anthony C. Allen Vice President & Treasurer November 4, 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 recen
Slide 3: Table of Contents
Table of Contents • Overview • Segment Review – Aerospace & Defense – Industrial • Financial Review • Summary • Q&A Session 3
Slide 4: Overview: Q3 Highlights
Overview Q3 Highlights • Revenue, Gross Profit and Gross Margin Increased versus 3Q13 – Sales up 18% to $90 million – Gross Profit up 13% to $8 million – Gross Margin of 9.1% • EPS Improved Quarterly – Loss of $0.06 per diluted share • Positive Operating Cash Flow • On schedule with NEC Asia Pacific
Slide 5: Aerospace & Defense Q3 Highlights
Aerospace & Defense Q3 Highlights • Financial Results – Revenue decreased to $7.6 million due to several customer design changes and supply chain issues – Bookings exceeded revenue by 82% – R&D impact on P&L improved by customer funding – Driving proof of concept with customers • New business opport
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 technology platform
Slide 7: Industrial Q3 Highlights
Industrial Q3 Highlights • Financial Results versus 3Q13 – Sales up 24% to $83 million – Gross profit up 25% to $9.3 million – Gross margin up 20 basis points to 11.3% – EBITDA increased to $8.1 million; 10% of revenue • Demand continued to be strong across our served markets – particularly commerci
Slide 8: Industrial Outlook
Industrial Outlook • Markets Remain Positive – Commercial vehicle and trailer demand expected to remain strong through 2015 – Automotive and light truck markets expected to exceed 17 million units in 2015 – Oil and gas markets robust • New Business Outlook Positive – Continued pursuit of more than $
Slide 9: Financial Review Third Quarter 2014
Financial Review Anthony C. Allen Vice President & Treasurer Third Quarter 2014 November 4, 2014
Slide 10: Consolidated Financial Results
Consolidated Financial Results Year-Over-Year Results ($ in thousands, except EPS) 3Q14 3Q13 Revenue $ 90,204 $ 76,278 • Industrial Group increase of $15.9M Gross Profit 8,209 7,261 • Volume contributes to GP increase Gross Margin 9.1% 9.5% • Conversion on revenue gain by Industrial Group impacted b
Slide 11: A&D Financial Results
A&D Financial Results Revenue Gross Margin ($ in millions) $25.5 $24.6 $9.6 $7.6 (1.6%) (2.9%) (8.8%) (14.3%) 3Q14 3Q13 3Q14 3Q13 3Q14 3Q13 3Q14 3Q13 Qtr Results YTD Results Qtr Results YTD Results • Q3 decrease of 21% • Severe EMS programs & Data Systems products lower in CY • EMS program delays −
Slide 12: Industrial Financial Results
Industrial Financial Results Revenue Gross Margin ($ in millions) 13.1% $82.6 $242.1 11.3% $212.2 11.1% 11.5% $66.7 3Q14 3Q13 3Q14 3Q13 3Q14 3Q13 3Q14 3Q13 Qtr Results YTD Results Qtr Results YTD Results • Strong commercial vehicle demand • Margin % increased in Q3 & YTD – Q3 increase of 24% • Volum
Slide 13: Summary
Summary • Industrial Group delivers 24% revenue increase in Q3 • A&D revenue slowed by EMS program delays • Investments in maintenance & repair and related labor productivity impacted Q3 margins • Maintained targeted level of key operational metrics and continued deployment of TPS(1) across all Indu
Slide 14: Question and Answer Session Q3 Earnings Conference Call
Jeffrey T. Gill Question and Answer Session President & CEO Q3 Earnings Conference Call Anthony C. Allen Vice President & Treasurer November 4, 2014