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Sypris Solutions(SYPR) - 2024 Q2 - Quarterly Results
2024-08-13 11:50
Revenue Performance - The company's consolidated revenue for Q2 2024 was $35.5 million, consistent with the prior year, while year-to-date orders increased by 15.8%[2] - Revenue for Sypris Electronics increased by 13.6% year-over-year, driven by new contracts in electronic warfare and avionics markets[2] - Revenue for Sypris Technologies was $17.8 million in Q2 2024, down from $20.1 million in the prior year due to timing delays in energy shipments[7] - Total net revenue for Q2 2024 was $35,521, a slight decrease of 0.3% compared to $35,615 in Q2 2023[15] - Sypris Technologies reported net revenue of $17,841, down 11% from $20,058 in the same quarter last year[15] - Sypris Electronics achieved net revenue of $17,680, an increase of 13.6% from $15,557 in Q2 2023[15] Profitability - Gross profit rose by 20.8% year-over-year and 95.6% sequentially, with gross margin expanding by 280 basis points year-over-year[2] - Sypris Technologies reported a 35.5% increase in gross profit year-over-year, with orders for energy products up 13.6% year-to-date[3] - Sypris Electronics achieved a gross profit of $2.9 million in Q2 2024, representing 16.5% of revenue, compared to 17.1% in the prior year[8] - Gross profit for Q2 2024 was $5,641, up 20.8% from $4,670 in Q2 2023[15] - Operating income for Q2 2024 was $1,273, compared to $966 in Q2 2023, reflecting a 32% increase[15] - Net income for Q2 2024 was $16, a decrease from $213 in Q2 2023, resulting in a basic and diluted loss per share of $0.00[15] Financial Outlook - The company reaffirmed its full-year 2024 revenue growth outlook of 10-15% and gross profit increase of 20-25%[4] - Sypris Electronics' backlog exceeds $100 million, expected to support growth through 2024 and beyond[4] Cash Flow and Assets - Cash and cash equivalents increased to $13,760 as of June 30, 2024, up from $7,881 at the end of 2023[16] - Total current assets decreased to $100,304 from $103,867 at the end of 2023[16] - Total liabilities decreased slightly to $105,225 from $106,875 at the end of 2023[16] - Net cash provided by operating activities for Q2 2024 was $4,455, compared to $3,688 in Q2 2023[17] Strategic Initiatives - The company is actively pursuing new global projects to support increasing LNG demand and diversify its customer portfolio[5]
Zacks Initiates Coverage of Sypris Solutions With Neutral Recommendation
ZACKSยท 2024-08-08 13:41
Core Viewpoint - Zacks Investment Research has initiated coverage of Sypris Solutions, Inc. with a Neutral recommendation, highlighting both contract expansions and financial challenges faced by the company [1] Group 1: Contractual Developments - Sypris Technologies has secured a long-term, sole-source contract extension with a major commercial vehicle manufacturer for Ultra Axle Shafts, ensuring stable revenue and reinforcing its reputation in the sector [2] - Sypris Electronics is expanding its presence in the electronic warfare market through additional contracts with the U.S. Navy, enhancing defense capabilities against missile threats [3] - The company holds a strong position in the aerospace and defense electronics markets, focusing on high-reliability manufacturing and systems integration, with key clients including Northrop Grumman, Lockheed Martin, and Raytheon Technologies [4] Group 2: Financial Performance - As of March 31, 2024, Sypris improved its cash balance to $8.1 million from $7.9 million at the end of 2023, with a significant backlog of over $110 million providing revenue visibility [5] - The company incurred a net loss of $2.2 million in Q1 2024, a significant increase from the $0.2 million loss in Q1 2023, with gross profit declining from $4.2 million to $2.9 million year over year [6] Group 3: Market Environment - Sypris operates in a highly competitive environment, facing competition from both domestic and international firms in industrial manufacturing and aerospace and defense segments [7] - Market risks include fluctuations in government defense spending and supply chain disruptions, which can affect project timelines and costs [7] Group 4: Stock Performance and Valuation - Sypris Solutions' shares have experienced notable growth over the past year, with the stock's valuation appearing relatively low compared to industry peers, indicating market caution regarding its near-term prospects [8] - The company has a modest market capitalization of $37.4 million, suggesting potential long-term growth driven by strategic contracts and strong market positions [9]
Sypris Solutions(SYPR) - 2024 Q1 - Quarterly Report
2024-05-15 15:02
Revenue Performance - Sypris Technologies' net revenue decreased by 5.9%, or $1.2 million, to $18.35 million in Q1 2024 compared to Q1 2023, primarily due to decreased sales volumes in energy products and the commercial vehicle market [93]. - Sypris Electronics' net revenue increased by 34.5%, or $4.4 million, to $17.2 million in Q1 2024 compared to Q1 2023, driven by ramping production for follow-on programs [94]. Profitability - The gross profit for Sypris Technologies decreased by 22.3% to $2.05 million in Q1 2024, with a gross margin of 11.2%, down from 13.5% in Q1 2023 [95]. - Sypris Electronics' gross profit decreased by 45.3% to $0.83 million in Q1 2024, with a gross margin of 4.8%, down from 11.9% in Q1 2023 [96]. Expenses and Financial Health - Selling, general and administrative expenses increased by 13.7% to $4.26 million in Q1 2024, rising as a percentage of revenue to 12.0% from 11.6% in the prior year [97]. - As of March 31, 2024, the company had an accumulated deficit and a net loss, with negative cash flow from operating activities amounting to $1.7 million for Q1 2024, compared to $1.2 million in Q1 2023 [100][109]. - The company experienced a liquidity shortfall in Q4 2023 and Q1 2024, necessitating negotiations with suppliers to amend payment terms [100]. - The company plans to implement contingency measures, including cost reduction initiatives, if revenue forecasts are not met [102]. Inventory and Cash Flow - The company's net inventory increased from $42.1 million to $77.3 million between December 31, 2022, and December 31, 2023, primarily due to delays in shipments related to contracts with aerospace and defense customers [100]. - Cash and cash equivalents stood at approximately $8.1 million as of March 31, 2024, with $3.0 million held outside the U.S., which could incur withholding taxes if repatriated [103]. - The company reported a cash flow usage of $4.3 million due to an increase in accounts receivable, offset by a $6.4 million source of cash from a decrease in inventory [109]. Financing and Commitments - The company received a total of $9.0 million in secured promissory note obligations from Gill Family Capital Management as of March 31, 2024, up from $6.5 million as of December 31, 2023 [104][106]. - Net cash provided by financing activities was $2.2 million for Q1 2024, driven by proceeds from the note and equipment financing obligations [111]. - The company had purchase commitments totaling approximately $41.3 million as of March 31, 2024, primarily for inventory and manufacturing equipment [108]. - As of March 31, 2024, the company had $3.1 million outstanding under finance lease obligations with a weighted average interest rate of 8.8% [107]. Market Outlook - The North American Class 8 truck production increased by 8% in 2023, but is expected to decrease by 10% in 2024, starting in Q2 [82]. - Supply chain challenges and electronic component shortages are anticipated to continue impacting Sypris Electronics' operations throughout 2024 [85]. - The oil and gas markets are expected to see increased demand in 2024, driven by rising production activity, particularly in liquefied natural gas shipments to Europe [83]. - The federal budget for national defense is projected at $895 billion for FY 2025, with $850 billion allocated for the DoD base budget, indicating ongoing support for defense spending [88]. - Sypris Technologies plans to pursue new business opportunities across various markets to achieve a more balanced portfolio [84].
Sypris Solutions(SYPR) - 2024 Q1 - Quarterly Results
2024-05-15 11:50
Revenue Performance - The company's consolidated revenue for Q1 2024 increased by 10.1% to $35.6 million compared to $32.3 million in Q1 2023, marking the 11th consecutive quarter of double-digit year-over-year growth [3]. - Revenue for Sypris Electronics rose by 34.5% year-over-year to $17.2 million, driven by increased shipments under contracts in electronic warfare and avionics markets [9]. - Revenue for Sypris Technologies decreased by 5.9% year-over-year to $18.4 million, attributed to timing issues in energy and automotive product shipments [8]. - The company updated its full-year revenue outlook for 2024, projecting an increase of 10%-15% year-over-year [3]. Profitability and Margins - Gross margin guidance for 2024 was adjusted to an increase of 100-125 basis points, influenced by foreign currency exchange rates and program ramp costs [3]. - Sypris Technologies reported a gross profit of $2.1 million, or 11.2% of revenue, down from $2.6 million, or 13.5% of revenue, in the prior year due to lower volumes and unfavorable mix [8]. - The company anticipates gross profit to increase by 20-25% in 2024, supported by a strong backlog and new program wins [12]. Financial Position - Total current assets decreased slightly to $102,856,000 from $103,867,000, a decline of 1.1% [19]. - Total liabilities rose to $108,196,000, up from $106,875,000, an increase of 1.2% [19]. - Total stockholders' equity decreased to $20,849,000 from $22,467,000, a decline of 7.2% [19]. Cash Flow and Expenses - Net cash used in operating activities was $1,709,000, compared to $1,241,000 in the prior year, indicating a higher cash outflow [21]. - Capital expenditures for the quarter were $316,000, down from $708,000, a decrease of 55.4% [21]. - Net cash provided by financing activities was $2,210,000, contrasting with a net cash outflow of $204,000 in the same quarter last year [21]. Losses and Orders - The company reported a net loss of $2.2 million, or $0.10 per share, compared to a net loss of $0.2 million, or $0.01 per share, in the prior year [7]. - Net loss for the first quarter of 2024 was $2,221,000, compared to a net loss of $175,000 in the same period of 2023 [21]. - Orders for Sypris Technologies energy products increased by 50.1% from year-end, indicating strong demand in the energy sector [3]. Backlog and Inventory - The backlog for Sypris Electronics exceeded $100 million, expected to support growth throughout 2024 and beyond [4]. - Accounts receivable increased significantly to $13,093,000 from $8,929,000, a growth of 46.5% [19]. - Inventory decreased to $70,890,000 from $77,314,000, a reduction of 8.3% [19]. - Cash and cash equivalents increased to $8,096,000 from $7,881,000, reflecting a rise of 2.7% [21].
Sypris Solutions(SYPR) - 2023 Q4 - Annual Report
2024-04-01 14:49
Production and Market Demand - North American Class 8 truck production increased by 8% in 2023 compared to 2022, with strong demand expected in Q1 2024 before a significant decrease in Q2 2024[156] - Sales in the oil and gas market improved in 2023 compared to early 2022, driven by increased production activity, particularly in liquefied natural gas shipments to Europe[157] - Sypris Technologies has diversified its market presence, which has helped reduce revenue volatility by aligning with different demand cycles across automotive and off-highway markets[156] Financial Performance - Total net revenue increased by 23.7% to $136.2 million in 2023 from $110.1 million in 2022[187] - Sypris Technologies' net revenue rose by 12.5% to $77.9 million, driven by increased sales volumes in the commercial vehicle market[188] - Sypris Electronics' net revenue surged by 42.7% to $58.3 million, attributed to ramped production and improved material availability[191] - Gross profit for Sypris Technologies increased by 7.7% to $9.2 million, while Sypris Electronics' gross profit rose by 27.6% to $8.0 million[192][193] - Selling, general and administrative expenses increased by 12.4% to $16.3 million, but decreased as a percentage of revenue from 13.2% to 12.0%[194] - Interest expense decreased by 30.0% to $0.8 million due to a reduction in average debt outstanding[195] - The company reported a net loss of $1.6 million in 2023, an improvement from a net loss of $2.5 million in 2022[188] Cash Flow and Liquidity - Cash used in operating activities was $11.1 million for the year ended December 31, 2023, indicating liquidity challenges[200] - Net cash used in operating activities was $11.1 million in 2023, a decrease from cash provided by operating activities of $13.8 million in 2022, primarily due to a $34.7 million increase in inventory[209] - The company received an additional $5.0 million loan from GFCM to manage liquidity during periods of shortfall[200] - As of December 31, 2023, the company had approximately $7.9 million in cash and cash equivalents, with $6.1 million held outside the U.S. that may incur withholding taxes if repatriated[203] - The company expects existing cash and cash flows from operations to be sufficient to fund operating activities and cash commitments for at least the next twelve months[203] - The company may need to seek additional financing or implement cost-cutting measures if there are significant shortfalls in projected revenues or unexpected costs[202] Supply Chain and Operational Challenges - Supply chain challenges and electronic component shortages are expected to continue impacting Sypris Electronics in 2024, with potential delays in new awards and program starts[159] - The company expects supply chain pressures and inflationary cost increases to persist throughout 2024, potentially negatively impacting operations[155] - Net inventory increased from $42.1 million to $77.3 million, primarily due to delays in shipments to aerospace and defense customers[200] Pension and Funding - The company anticipates a $0.8 million contribution to its U.S. pension plans in 2024, reflecting minimum funding requirements[178] - The company has $8.8 million of unrecognized losses related to its U.S. pension plans, primarily due to changes in discount rates and asset return assumptions[177] Defense Budget and Contracts - The U.S. Department of Defense proposed a budget of $886 billion for FY 2024, which includes $842 billion for the base budget, impacting funding for defense-related contracts[161] - The Fiscal Responsibility Act caps national defense spending at $886 billion for FY 2024, with potential implications for future funding and program execution[162] Financing and Debt - The company amended a secured promissory note with Gill Family Capital Management, increasing the principal amount from $6.5 million to $9.0 million, with maturity dates extended to 2027[206] - The company reported a net cash used in financing activities of $0.6 million in 2023, compared to $1.4 million in 2022, including principal payments on finance lease and equipment financing obligations[211] - The company had $3.2 million outstanding under finance lease obligations with a weighted average interest rate of 8.8% as of December 31, 2023[207] - The company had $2.0 million outstanding under equipment financing facilities, with payments due through 2028 and a weighted average interest rate of 6.8%[208] Business Strategy - The company is pursuing new business opportunities across various markets to achieve a more balanced portfolio[158] - The increase in accounts receivable in 2023 resulted in a cash usage of $1.1 million due to increased revenue for Sypris Technologies and Sypris Electronics[209] - The company had purchase commitments totaling approximately $39.8 million as of December 31, 2023, primarily for inventory due through 2025[208]
Sypris Solutions(SYPR) - 2023 Q4 - Annual Results
2024-04-01 11:50
Exhibit 99 "The backlog in excess of $110 million for Sypris Electronics is expected to support revenue growth through 2024 and beyond. Customer funding has already been secured for a portion of these key programs, which enables us to procure inventory under multi-year purchase orders to mitigate future supply chain issues. "Overall demand from customers serving the automotive, commercial vehicle, sport utility and off-highway markets has remained solid. We continue to invest in new equipment, maintain or u ...
Sypris Solutions(SYPR) - 2023 Q3 - Earnings Call Transcript
2023-11-17 20:16
We expect full year revenue growth for 2023 to approximate 25%, with gross profit rising by a similar percentage despite the drag associated with the continued strength of the Mexican peso on a year-over-year Thanks, Jeff. Good morning, everyone. I'd like to discuss a few -- some of the highlights of our third quarter and year-to-date financial results. We will strive to continuously improve manufacturing output and productivity while maintaining excellent quality. We will also continue our efforts to diver ...
Sypris Solutions(SYPR) - 2023 Q2 - Earnings Call Transcript
2023-08-15 18:19
Financial Data and Key Metrics Changes - Revenue for Q2 2023 increased by 22.6% year-over-year and 10.3% sequentially, reaching $35.6 million, with a consolidated gross profit of $4.7 million, up 23.5% from the prior year [4][16][33] - EPS increased to $0.01 per share from a loss of $0.03 per share in the prior year [23] - Consolidated operating income for Q2 was $1 million compared to breakeven in the prior year, primarily due to increased gross profit [19] Business Line Data and Key Metrics Changes - Sypris Electronics revenue rose 40% year-over-year to $15.6 million, with a gross margin of 17.1%, an increase of 220 basis points [18] - Sypris Technologies revenue increased 11.7% year-over-year to $20.1 million, but gross profit decreased due to unfavorable foreign exchange rates and steel surcharges [16][38] - Backlog for Sypris Electronics increased by 25% to $116.6 million, while backlog for energy products at Sypris Technologies rose 38% year-over-year [14][23] Market Data and Key Metrics Changes - The demand for Class 8 heavy vehicles is expected to rise an additional 7.1% during 2023, following a 19% increase in 2022 [29] - European LNG imports increased by 60% in 2022, reflecting a strategic shift away from reliance on Russian gas [30] - The global LNG market is projected to see significant growth, with 64 million metric tons of annual liquefaction capacity expected to be added by 2026 [31] Company Strategy and Development Direction - The company aims for consolidated top-line growth of 25% to 30% for 2023, with a focus on expanding its presence in defense electronics, which is expected to represent 39% of consolidated sales [10][32] - Sypris is actively pursuing diversification of its markets and customer base, with plans to enhance value-added services [41] - The company is implementing lean manufacturing and automation to improve efficiency and meet rising shipment demands [51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for transportation and defense spending, with a strong backlog supporting future growth [11][46] - The company anticipates continued margin improvement despite foreign exchange headwinds, projecting a gross margin increase of 75 to 125 basis points for 2023 [43][55] - Management highlighted the importance of addressing inflationary pressures and controlling costs through strategic production scheduling [50] Other Important Information - The company has secured several new contracts, including components for all-terrain vehicles and insulated joints for water pipeline projects, indicating strong future revenue potential [6][25][26] - The backlog has shown consistent growth for 12 consecutive quarters, reflecting robust demand across segments [57] Q&A Session Summary Question: What is the outlook for revenue growth in 2023? - The company confirmed an expected revenue increase of 25% to 30% year-over-year, with positive cash flow from operations anticipated [47] Question: How is the company addressing cost pressures? - Management noted ongoing efforts to control costs amid inflationary pressures, including production scheduling during off-peak utility hours [50] Question: What is the status of the backlog and future contracts? - The backlog stands at $116.6 million, up 25% year-over-year, with firm orders extending into 2025, indicating strong business momentum [46]
Sypris Solutions(SYPR) - 2023 Q1 - Earnings Call Transcript
2023-05-16 15:03
Company Participants Conference Call Participants Good day, and welcome to the Sypris Solutions, Inc. conference call. Today's call is being recorded. Jeffrey Gill We always begin these calls with a note that some of what we might discuss here today may include projections and other forward-looking statements. No assurance can be given that these projections and statements will be achieved and actual results could differ materially from those projected as a result of several factors. These factors are inclu ...
Sypris Solutions(SYPR) - 2022 Q4 - Earnings Call Presentation
2023-03-21 18:01
Jeffrey T. Gill President & CEO Each forward-looking statement herein is subject to risks and uncertainties, as detailed in our most recent Form 10-K and Form 10-Q and other SEC filings. Briefly, we currently believe that such risks also include the following: our failure to achieve and maintain profitability on a timely basis by steadily increasing our revenues from profitable contracts with a diversified group of customers, which would cause us to continue to use existing cash resources or require us to s ...