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].

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].

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]

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 ...

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 ...

Jeffrey Gill - President & CEO Rich Davis - VP & CFO With these qualifications in mind, we'd now like to proceed with the business discussion. Please advance to Slide 3. I will lead you through the first half of our presentation this morning, starting with an overview of the highlights for the quarter, to be followed by an update on the outlook for each of our primary markets. Sypris Solutions, Inc. (NASDAQ:SYPR) Q2 2023 Results Conference Call August 15, 2023 9:00 AM ET Operator At this time, for opening r ...

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 ...

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 ...

Sypris Solutions, Inc. (NASDAQ:SYPR) Q4 2022 Results Conference Call March 16, 2023 9:00 AM ET Company Participants Jeffrey Gill - President and CEO Rich Davis - VP and CFO Operator Good day and welcome to the Sypris Solutions Incorporated Conference Call. Today's call is being recorded. At this time, for opening remarks, I'd like to turn the call over the President and Chief Executive Officer, Mr. Jeffrey Gill. Please go ahead, sir. Jeffrey Gill Thank you, and good morning, everyone. Rich Davis and I would ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) Commission file number 0-24020 SYPRIS SOLUTIONS, INC. (Exact name of registrant as specified in its charter) | Delaware | | 61-1321992 | | --- | --- | --- | | (State or other jurisdiction | | (I.R.S. Employer | | of incorporation or organization) | | Identification No.) | | 101 Bullitt Lane, Suite 450 | | | | Louisville, Kentucky 40222 | | (502) 329-2000 | | (Address of principal executive | | (Registrant's telephon ...