Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Oct. 02, 2016 | Nov. 07, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | SYPRIS SOLUTIONS INC | |
Entity Central Index Key | 864,240 | |
Trading Symbol | sypr | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 21,242,190 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 2, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Oct. 04, 2015 | Oct. 02, 2016 | Oct. 04, 2015 | |
Net revenue: | ||||
Outsourced services | $ 16,908,000 | $ 29,089,000 | $ 54,252,000 | $ 93,903,000 |
Products | 4,476,000 | 9,348,000 | 17,574,000 | 22,299,000 |
Total net revenue | 21,384,000 | 38,437,000 | 71,826,000 | 116,202,000 |
Cost of sales: | ||||
Outsourced services | 18,160,000 | 29,278,000 | 57,330,000 | 100,390,000 |
Products | 3,945,000 | 6,691,000 | 13,768,000 | 16,535,000 |
Total cost of sales | 22,105,000 | 35,969,000 | 71,098,000 | 116,925,000 |
Gross profit (loss) | (721,000) | 2,468,000 | 728,000 | (723,000) |
Selling, general and administrative | 5,208,000 | 5,969,000 | 16,952,000 | 22,414,000 |
Research and development | 104,000 | 119,000 | 318,000 | 647,000 |
Severance | 0 | 457,000 | 522,000 | 1,023,000 |
Operating loss | (6,033,000) | (4,077,000) | (17,064,000) | (24,807,000) |
Interest expense, net | 2,828,000 | 1,783,000 | 4,668,000 | 3,271,000 |
Loss on extinguishment of debt | 1,521,000 | 0 | 1,521,000 | 0 |
Other (income), net | (31,595,000) | (7,841,000) | (34,166,000) | (8,595,000) |
Income (loss) before taxes | 21,213,000 | 1,981,000 | 10,913,000 | (19,483,000) |
Income tax expense, net | 220,000 | 2,255,000 | 222,000 | 2,240,000 |
Net income (loss) | $ 20,993,000 | $ (274,000) | $ 10,691,000 | $ (21,723,000) |
Income (loss) per share: | ||||
Basic (in dollars per share) | $ 1.02 | $ (0.01) | $ 0.52 | $ (1.10) |
Diluted (in dollars per share) | $ 1.02 | $ (0.01) | $ 0.52 | $ (1.10) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 19,834 | 19,654 | 19,761 | 19,684 |
Diluted (in shares) | 19,834 | 19,654 | 19,761 | 19,684 |
Dividends declared per common share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Oct. 04, 2015 | Oct. 02, 2016 | Oct. 04, 2015 | |
Net income (loss) | $ 20,993,000 | $ (274,000) | $ 10,691,000 | $ (21,723,000) |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (444,000) | (995,000) | (1,143,000) | (2,048,000) |
Total comprehensive income (loss) | $ 20,549,000 | $ (1,269,000) | $ 9,548,000 | $ (23,771,000) |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Oct. 02, 2016 | Dec. 31, 2015 |
Series A Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred stock | $ 0 | $ 0 |
Nonvoting Common Stock [Member] | ||
Stockholders’ equity: | ||
Common stock | 0 | 0 |
Cash and cash equivalents | 21,100,000 | 1,349,000 |
Restricted cash | 1,500,000 | 0 |
Accounts receivable, net | 8,791,000 | 12,394,000 |
Inventory, net | 15,166,000 | 20,192,000 |
Other current assets | 3,178,000 | 4,459,000 |
Disposal Group, Including Discontinued Operation, Assets, Current | 0 | 3,230,000 |
Total current assets | 49,735,000 | 41,624,000 |
Property, plant and equipment, net | 20,924,000 | 22,178,000 |
Other assets | 2,019,000 | 3,090,000 |
Total assets | 72,678,000 | 66,892,000 |
Accounts payable | 9,471,000 | 11,311,000 |
Accrued liabilities | 12,875,000 | 11,661,000 |
Revolving credit facility | 0 | 2,132,000 |
Current portion of long-term debt and capital lease obligations | 203,000 | 1,714,000 |
Total current liabilities | 22,549,000 | 26,818,000 |
Note payable – related party | 6,360,000 | 5,315,000 |
Long-term debt and capital lease obligations | 3,008,000 | 8,965,000 |
Other liabilities | 10,523,000 | 6,082,000 |
Total liabilities | 42,440,000 | 47,180,000 |
Preferred stock | 0 | 0 |
Common stock | 213,000 | 208,000 |
Additional paid-in capital | 153,050,000 | 152,077,000 |
Retained deficit | (96,121,000) | (106,812,000) |
Accumulated other comprehensive loss | (26,903,000) | (25,760,000) |
Treasury stock, 52,692 and 49,692 shares in 2016 and 2015, respectively | (1,000) | (1,000) |
Total stockholders’ equity | 30,238,000 | 19,712,000 |
Total liabilities and stockholders’ equity | $ 72,678,000 | $ 66,892,000 |
Consolidated Balance Sheets (U5
Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Oct. 02, 2016 | Dec. 31, 2015 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 24,850 | 24,850 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Nonvoting Common Stock [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 975,150 | 975,150 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 21,330,882 | 20,826,236 |
Common stock, shares outstanding (in shares) | 21,278,190 | 20,776,544 |
Treasury stock (in shares) | 52,692 | 49,692 |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statements (Unaudited) - USD ($) | 9 Months Ended | |
Oct. 02, 2016 | Oct. 04, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 10,691,000 | $ (21,723,000) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 5,086,000 | 7,022,000 |
Deferred income taxes | 0 | 2,436,000 |
Stock-based compensation expense | 1,027,000 | 717,000 |
Deferred revenue recognized | 0 | (4,200,000) |
Deferred loan costs recognized | 1,810,000 | 1,929,000 |
Loss on extinguishment of debt | 1,521,000 | 0 |
Gain on sale of assets | (33,630,000) | (7,423,000) |
Provision for excess and obsolete inventory | 132,000 | 1,305,000 |
Other noncash items | (178,000) | (1,478,000) |
Contributions to pension plans | 0 | (315,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,635,000 | 23,384,000 |
Inventory | (1,637,000) | 2,154,000 |
Other current assets | (554,000) | (4,332,000) |
Accounts payable | (1,833,000) | (12,051,000) |
Accrued and other liabilities | 966,000 | 860,000 |
Net cash used in operating activities | (12,964,000) | (11,715,000) |
Cash flows from investing activities: | ||
Capital expenditures, net | (1,404,000) | (1,155,000) |
Proceeds from sale of assets | 50,414,000 | 15,700,000 |
Change in restricted cash | (1,500,000) | 0 |
Net cash provided by investing activities | 47,510,000 | 14,545,000 |
Cash flows from financing activities: | ||
Repayment of term loan | (11,714,000) | 0 |
Repayment of revolving credit agreement | (2,132,000) | 0 |
Penalty paid on early extinguishment of debt | (1,521,000) | 0 |
Net change in debt under revolving credit agreements | 0 | (10,738,000) |
Proceeds from note payable – related party | 1,000,000 | 5,500,000 |
Debt issuance and modification costs | (379,000) | (2,335,000) |
Indirect repurchase of shares for minimum statutory tax withholdings | (49,000) | (77,000) |
Cash dividends paid | 0 | (410,000) |
Net cash used in financing activities | (14,795,000) | (8,060,000) |
Net increase (decrease) in cash and cash equivalents | 19,751,000 | (5,230,000) |
Cash and cash equivalents at beginning of period | 1,349,000 | 7,003,000 |
Cash and cash equivalents at end of period | $ 21,100,000 | $ 1,773,000 |
Note 1 - Nature of Business
Note 1 - Nature of Business | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | (1) Nature of Business All references to “Sypris,” the “Company,” “we” or “our” include Sypris Solutions, Inc. and its wholly-owned subsidiaries. Sypris is a diversified provider of manufacturing services and products. The Company performs a wide range of manufacturing, engineering, design, and other technical services, often under multi-year, sole-source contracts with corporations and government agencies, primarily in the markets for truck components, oil and gas pipeline components and aerospace and defense electronics. The Company provides such services through its two segments, Sypris Technologies, Inc. (Sypris Technologies) and Sypris Electronics, LLC (Sypris Electronics). See Note 13, “Segment Data,” to the consolidated financial statements. On August 16, 2016, the Company completed the sale of certain assets, intellectual property, contracts and other assets of Sypris Electronics (the “CSS Sale”) comprised principally of its SioMetrics, Cyber Range, Information Security Solutions and Data Systems product lines (see Note 5 “CSS Sale” to the consolidated financial statements). The retained portion of the Sypris Electronics segment will continue to provide electronic manufacturing and design support services to customers in the aerospace, defense, medical and severe environment markets, among others. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | (2) Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Sypris Solutions, Inc. and its wholly-owned subsidiaries, and have been prepared by the Company in accordance with the rules and regulations of the Securities and Exchange Commission. The Company’s operations are domiciled in the United States (U.S.) and Mexico and serve a wide variety of domestic and international customers. All intercompany transactions and accounts have been eliminated. These unaudited consolidated financial statements reflect, in the opinion of management, all material adjustments (which include only normal recurring adjustments) necessary to fairly state the results of operations, financial position and cash flows for the periods presented, and the disclosures herein are adequate to make the information presented not misleading. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Actual results for the three and nine months ended October 2, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements, and notes thereto, for the year ended December 31, 2015 as presented in the Company’s Annual Report on Form 10-K. Certain prior period amounts have been reclassified to conform to the current period presentation. |
Note 3 - Recent Accounting Pron
Note 3 - Recent Accounting Pronouncements | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | (3 ) Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. This new standard will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount it expects to receive for those goods and services. This ASU requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and estimates and changes in those estimates. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which delayed the effective date of ASU 2014-09 by one year to January 1, 2018. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations and includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. In April of 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606) - Identifying Performance Obligations and Licensing, which reduces the complexity when applying the guidance for identifying performance obligations and improves the operability and understandability of the license implementation guidance. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients, which amends the guidance on transition, collectability, non-cash consideration, and the presentation of sales and other similar taxes. ASU 2016-12 clarifies that, for a contract to be considered completed at transition, all (or substantially all) of the revenue must have been recognized under legacy GAAP. In addition, ASU 2016-12 clarifies how an entity should evaluate the collectability threshold and when an entity can recognize nonrefundable consideration received as revenue if an arrangement does not meet the standard’s contract criteria. The standard allows for both retrospective and modified retrospective methods of adoption. The Company is in the process of determining the method of adoption it will elect and is currently assessing the impact of this ASU on its consolidated financial statements and footnote disclosures. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern. The new guidance requires management to assess if there is substantial doubt about an entity’s ability to continue as a going concern for each annual and interim period. If conditions or events give rise to substantial doubt, disclosures are required. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter; early application is permitted. The Company is currently assessing the impact of adopting this ASU on its consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU 2015-03. In August 2015 the FASB issued ASU No. 2015-15, Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting. ASU 2015-15 was issued to address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements that were not found in ASU 2015-03. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the ASU provides that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These standards are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, and should be applied retrospectively. Early adoption is permitted. The Company adopted this guidance January 1, 2016. As a result of adoption, debt issuance costs of $1,220,000 were reclassified from assets to reduce long-term-debt as of December 31, 2015 . In July 2015, the FASB issued ASU No. 2015-11, which simplifies the subsequent measurement of inventory. It replaces the current lower of cost or market test with a lower of cost or net realizable value test. The standard is effective for public entities for annual reporting periods beginning after December 15, 2016, and interim periods therein. Early adoption is permitted. The new guidance must be applied prospectively. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This standard affects any entity that enters into a lease, with some specified scope exemptions. The guidance in this update supersedes FASB ASC 840, Leases. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently assessing the impact of adopting this ASU on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) requiring an entity to record all excess tax benefits and tax deficiencies as an income tax benefit or expense in the income statement. ASU 2016-09 will also require an entity to elect an accounting policy to either estimate the number of forfeitures or account for forfeitures when they occur. ASU 2016-09 becomes effective for the Company during the first quarter 2017. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. This ASU provides guidance to clarify how certain cash receipts and payments should be presented in the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted in any annual or interim period. The updated guidance requires a modified retrospective adoption. The Company is evaluating the impact of adoption on the Company's financial position, results of operations and cash flow. |
Note 4 - Management's Plans
Note 4 - Management's Plans | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | ( 4 ) Management’s Plans In light of the recent strength of the U.S. dollar, tightening margins and unfavorable growth trends and softness in certain sectors of commercial vehicle manufacturing, the Company has surrendered a portion of its traditional market share in the commercial vehicle manufacturing, due to its nonrenewal of certain supply agreements with Dana Holding Corporation (“Dana”) in early 2015, and with Meritor, Inc. (“Meritor”) for certain of its domestic, forged axle shafts, effective January 1, 2017. In response to these changes, management is developing various profit recovery and protection plans and evaluating strategic alternatives to optimize asset values in each of the Company’s segments. The Company has completed a number of its profit recovery and protection actions during 2015 and the first nine months of 2016, including: (i) the CSS sale (defined below), (ii) the Toluca Sale-Leaseback (defined below), (iii) the sale of the Company’s manufacturing facility in Morganton, North Carolina (see Note 7), (iv) reductions in workforce at all locations, and (v) other reductions in employment costs through reduced work schedules, senior management pay reductions, deferral of merit increases and certain benefit payments. Using a portion of the proceeds generated from asset sales noted above, the Company paid off all senior debt and has received the benefit of cash infusions from Gill Family Capital Management, Inc. (“GFCM’) in the form of subordinated promissory note obligations totaling $6,500,000 in principal through the first nine months of 2016. On August 16, 2016, the Company completed the sale of certain assets, intellectual property, contracts and other related assets of Sypris Electronics (the “CSS Sale”) comprised principally of its SioMetrics, Cyber Range, Information Security Solutions and Data Systems product lines (see Note 5 “CSS Sale”). The sale generated gross proceeds of $42,000,000. The retained portion of the Sypris Electronics segment will continue to provide electronic manufacturing and design support services to customers in the aerospace, defense, medical and severe environment markets, among others. One of the additional actions implemented by management during 2016 was to consummate the sale and partial lease back of its facility located in Toluca Mexico, which generated gross proceeds of approximately $12,182,000. Management will continue to operate in Toluca, but given the reduction in Sypris Technologies’ revenues in 2015 and the overall downturn in the commercial vehicle markets beginning in the fourth quarter of 2015, management determined that the underutilized Toluca real estate value could be better optimized with a sale and lease back arrangement where some but not all of the facility would continue to be occupied and managed by Sypris Technologies. Demand in the U.S. commercial vehicle industry has softened beginning in the fourth quarter of 2015 along with other durable and non-durable goods sectors in the North America economy. In response to the reduced demand, management implemented reductions in selling, general and administrative expense and labor expense during the first nine months of 2016. The expected benefits of the cost reductions were partially offset by the impact of minor investments and severance required to enable the cost reductions. Additionally, the Company is in the process of developing a comprehensive restructuring plan, which is expected to be implemented starting in the fourth quarter of 2016. The restructuring plan may involve the streamlining of operations within Sypris Technologies in an effort to return to profitability in a timely basis. The oil and gas industry has experienced significant price volatility, and as a result the Company’s customers are delaying capital expenditures that support their growth and maintenance projects. The Company has identified some capacity reallocation opportunities between plants in the United States and Mexico. The Company has initiated the process of qualifying production for certain components in Mexico that are currently produced in the United States and completed the qualification for the first group of these components. The Company expects this capacity reallocation may accelerate during the remainder of 2016 as the capital necessary to fund the reallocation becomes available and the qualification process for the production is complete. Management implemented certain cost reductions at the corporate headquarters that are expected to improve profitability and cash flow throughout 2016 and 2017. Salary reductions and other selling, general and administrative cost reductions were implemented during the first nine months of 2016 that management believes will continue to benefit the Company throughout future periods. |
Note 5 - CSS Sale
Note 5 - CSS Sale | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ( 5 ) CSS Sale On August 16, 2016, the Company completed the sale of certain assets, intellectual property, contracts and other assets of Sypris Electronics (the “CSS Sale”) comprised principally of its SioMetrics, Cyber Range, Information Security Solutions and Data Systems product lines. The assets were sold for $42,000,000 in cash consideration, $1,500,000 of which is to be held in escrow for up to 12 months in connection with certain customary representations, warranties, covenants and indemnifications of the Company. The total book value of the related business assets included in the sale was $8,086,000, and consisted of $6,562,000 in inventories, $1,050,000 in fixed assets, $624,000 in other current assets and $150,000 in accrued liabilities. The Company incurred transaction related expenses of $2,674,000, and the Company recognized a net gain of $31,240,000 on the sale, which is included in other income, net in the consolidated statement of operations for the three and nine months ended October 2, 2016. A portion of the proceeds from the CSS Sale was used to pay off the Term Loan and pay down the outstanding balances under the Revolving Credit Facility. The retained portion of the Sypris Electronics segment will continue to provide electronic manufacturing and design support services to customers in the aerospace, defense, medical and severe environment markets, among others. Revenue from the CSS product lines for the three and nine months ended October 2, 2016 was $1,769,000 and $11,061,000, respectively. Revenue from the CSS product lines for the three and nine months ended October 4, 2015 was $6,822,000 and $10,786,000, respectively. While the Company is able to distinguish revenue and contribution margin information related to the CSS business, the Company is not able to present meaningful information about the results of operations and cash flows of the CSS business. Therefore, the sale was not classified as a discontinued operation. |
Note 6 - Toluca Sale-leaseback
Note 6 - Toluca Sale-leaseback | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
Sale Leaseback Transaction Disclosure [Text Block] | ( 6 ) Toluca Sale-Leaseback On October 30, 2015, the Company entered into a non-binding letter of intent to sell and lease-back its property and buildings in Toluca, Mexico, which is part of the Sypris Technologies Group. As such, the Company concluded that the assets qualified for Assets Held for Sale accounting in accordance with Accounting Standards Codification (ASC) 205 as of December 31, 2015. The assets had a net book value of $3,230,000 as of December 31, 2015. On March 9, 2016, Sypris Technologies Mexico, S. de R.L. de C.V. (“Seller”), a subsidiary of the Company, concluded its sale of the 24-acre Toluca property pursuant to an agreement with Promotora y Desarrolladora Pulso Inmobiliario, S.C. (together with its affiliates and assignees, “Buyer”) for 215,000,000 Mexican Pesos, or approximately $12,182,000 in U.S. currency. Simultaneously, the Seller and the Buyer entered a long-term lease of the 9 acres and buildings currently occupied by Seller and needed for its ongoing business in Toluca (collectively, the “Toluca Sale-Leaseback”). The Company incurred transaction related expenses of $1,116,000. As a result of the Toluca Sale-Leaseback, the Company initially recorded a capital lease of $3,315,000, which is included in property plant and equipment. The Company recorded an initial gain on the sale of $2,370,000 during the nine months ended October 2, 2016, which is included in other income, net in the consolidated statement of operations, and recorded a deferred gain of $4,779,000 as of October 2, 2016, which will be recognized over the ten year lease term. The Company’s base rent, which is denominated in U.S. currency, is $936,000 annually, adjusted based on U.S. CPI with certain cap conditions. The following assets have been segregated and included in assets held for sale in the consolidated balance sheet as of December 31, 2015 (in thousands): December 31, 2015 Land and land improvements $ 1,568 Buildings and building improvements 3,658 Accumulated depreciation (1,996 ) Property, plant and equipment, net $ 3,230 |
Note 7 - Morganton Sale
Note 7 - Morganton Sale | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | ( 7 ) Morganton Sale On July 9, 2015, the Company entered into an asset purchase agreement (the “Agreement”) to sell certain assets used in the Company’s manufacturing facility in Morganton, North Carolina, to its largest customer, Meritor, Inc. (“Meritor”). The Company retained the Morganton plant’s axle shaft manufacturing lines and certain related assets, intellectual property and inventories, which were transitioned to the Company’s Louisville, Kentucky plant in October 2015. All other Morganton equipment, related assets and intellectual property were sold to Meritor (the “Morganton Sale”) for $10,500,000 in cash paid at the closing and other consideration. Meritor purchased related inventories and accounts receivable and assumed or released certain accounts payable and other accrued liabilities, for $2,000,000 (subject to customary post-closing adjustments to actual). Meritor also purchased the Morganton building and real estate for $3,200,000. The total proceeds received of $15,700,000, primarily in consideration for the Morganton sale, were used to pay down the Company’s prior senior secured debt. As a result of the Morganton sale, the Company recognized a gain of $7,744,000. At closing, the parties also entered into an amendment to a secured promissory note with Meritor in an original principal amount of $3,047,000 (the “Meritor Note”) to increase the principal balance by $412,000, effective July 9, 2015. The parties also agreed to increase the Meritor Note by an additional $321,000 in September 2015 to reflect certain roof repairs required at the Morganton facility. The Company repaid the Meritor Note on October 30, 2015. |
Note 8 - Income (Loss) Per Comm
Note 8 - Income (Loss) Per Common Share | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | ( 8 ) Income (loss) Per Common Share The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends. Our potentially dilutive securities include potential common shares related to our stock options and restricted stock. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Diluted earnings per share excludes the impact of common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. There were 2,304,250 potential common shares excluded from diluted earnings per share for the three and nine months ended October 2, 2016. For the three and nine months ended October 4, 2015, diluted weighted average common shares do not include the impact of any outstanding stock options and unvested compensation-related shares because the effect of these items on diluted net loss would be anti-dilutive. A reconciliation of the weighted average shares outstanding used in the calculation of basic and diluted earnings (loss) per common share is as follows (in thousands): Three Months Ended Nine Months Ended October 2 , October 4 , October 2 , October 4 , 201 6 201 5 201 6 201 5 (Unaudited) (Unaudited) Income (loss) attributable to stockholders: Net income (loss) as reported $ 20,993 $ (274 ) $ 10,691 $ (21,723 ) Less distributed and undistributed earnings allocable to restricted award holders (737 ) 0 (331 ) 0 Net income (loss) allocable to common stockholders $ 20,256 $ (274 ) $ 10,360 $ (21,723 ) Income (loss) per common share attributable to stockholders: Basic $ 1.02 $ (0.01 ) $ 0.52 $ (1.10 ) Diluted $ 1.02 $ (0.01 ) $ 0.52 $ (1.10 ) Weighted average shares outstanding – basic 19,834 19,654 19,761 19,684 Weighted average additional shares assuming conversion of potential common shares 0 0 0 0 Weighted average shares outstanding – diluted 19,834 19,654 19,761 19,684 |
Note 9 - Inventory
Note 9 - Inventory | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | ( 9 ) Inventory Inventory consists of the following (in thousands): October 2 , December 31, 201 6 201 5 (Unaudited) Raw materials $ 8,441 $ 12,388 Work in process 9,039 10,366 Finished goods 2,451 3,167 Reserve for excess and obsolete inventory (4,765 ) (5,729 ) $ 15,166 $ 20,192 |
Note 10 - Property, Plant and E
Note 10 - Property, Plant and Equipment | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | (10 ) Property, Plant and Equipment Property, plant and equipment consists of the following (in thousands): October 2 , December 31, 201 6 201 5 (Unaudited) Land and land improvements $ 219 $ 219 Buildings and building improvements 17,566 18,305 Machinery, equipment, furniture and fixtures 120,531 123,935 Construction in progress 1,899 759 140,215 143,218 Accumulated depreciation (119,291 ) (121,040 ) $ 20,924 $ 22,178 |
Note 11 - Debt
Note 11 - Debt | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | (11 ) Debt Long-term debt and capital lease obligations consists of the following: October 2, December 31, 2016 2015 (Unaudited) Current: Revolving Credit facility $ 0 $ 2,132 Current portion of long term debt 0 1,714 Current portion of capital lease obligation 203 0 Current debt and capital lease obligation $ 203 $ 3,846 Long Term: Term loan $ 0 $ 10,000 Note payable – related party 6,500 5,500 Capital lease obligation 3,008 0 Less unamortized debt issuance and modification costs (140 ) (1,220 ) Long term debt and capital lease obligations, net of unamortized debt costs $ 9,368 $ 14,280 Note Payable – Related Party During 2015, the Company received the proceeds of subordinated indebtedness from GFCM in an amount of $5,500,000. On February 26, 2016, the Company further amended the GFCM note to increase the amount by $1,000,000 to $6,500,000. GFCM is an entity controlled by the Company’s chairman, president and chief executive officer, Jeffrey T. Gill and one of our directors, R. Scott Gill. GFCM, Jeffrey T. Gill and R. Scott Gill are significant beneficial stockholders of the Company. The promissory note bears interest at a rate of 8.00% per year and the principal is due on January 30, 2019. On September 30, 2016, the Note was amended to begin paying interest on a quarterly basis. Revolving Credit Facility and Term Loan On October 30, 2015, the Company secured debt financing consisting of a $12,000,000 term loan (“Term Loan”) and a $15,000,000 revolving credit facility (“Revolving Credit Facility”). Proceeds from the two new financing arrangements (collectively the “Loan Agreements”) were used in part to repay the senior secured debt with a prior lender and the Meritor Note. On February 25, 2016, the Company entered into an amendment (the “Term Loan Amendment”) to the Term Loan and an amendment (the “Revolving Credit Amendment”) to the Revolving Credit Facility (together, the “Amendments”). The Amendments increased the Company’s borrowing capability under its Revolving Credit Facility and provided for an agreement on the use of proceeds from the sale of its Toluca, Mexico property and buildings, as described below. As a result of the Term Loan Amendment, the Company deposited $6,000,000 of the proceeds of the sale-leaseback of its Toluca, Mexico property and buildings (the “Toluca Sale-Leaseback”) into a Cash Collateral Account, to be held as additional collateral for the Term Loan. The Term Loan Amendment also permitted the Company to retain the remaining balance of the proceeds from Toluca Sale-Leaseback, and increased the interest rate of the Term Loan by 1.0%. On August 16, 2016, the Company repaid the Term Loan in full and paid down the Revolving Credit Facility with proceeds generated from the CSS Sale (see Note 5 “CSS Sale”). In connection with the repayment of the Term Loan, the $6,000,000 balance of the Cash Collateral Account was released. Additionally, on September 2, 2016, the Company terminated and paid all remaining obligations due under the Company’s Revolving Credit Facility. As a result of the early extinguishment of debt, the Company was required to pay $1,521,000 in penalties, which is included in loss on extinguishment of debt in the accompanying statements of operations, and wrote off the remaining amount of deferred loan costs associated with the Term Loan and Revolving Credit Facility, which is included in interest expense, net in the accompanying statements of operations. The classification of debt as of December 31, 2015 considers debt outstanding under the Loan Agreements on a long-term basis. However, the Revolving Credit Facility allows the lender to establish certain reserves against the borrowing base which could, under certain circumstances, cause a potential event of default. Because such an event is not objectively measureable in advance and because the Company was required to maintain a lock-box arrangement, ASC 470-10-45 requires the otherwise long-term revolving advances to be classified as a current liability. As a result, all borrowings under the Revolving Credit Facility have been classified in the accompanying consolidated balance sheets as a current liability. Capital Lease Obligation On March 9, 2016, the Company completed the sale of its 24-acre Toluca property pursuant to an agreement with Promotora y Desarrolladora Pulso Inmobiliario, S.C. (together with its affiliates and assignees, “Buyer”) for 215,000,000 Mexican Pesos, or approximately $12,182,000 in U.S. currency. Simultaneously, the Company entered into a long-term lease of the 9 acres and buildings currently occupied by the Company and needed for its ongoing business in Toluca (see Note 6 “Toluca Sale-Leaseback”). The Company incurred transaction related expenses of $1,116,000. The Company recorded an initial gain on the sale of $2,370,000 during the nine months ended October 2, 2016, which is included in other income, net in the consolidated income statement, and recorded a deferred gain of $4,779,000 as of October 2, 2016, which will be recognized over the ten year lease term. The Company’s base rent, which is denominated in U.S. currency, is $936,000 annually, adjusted based on U.S. CPI with certain cap conditions. As a result of the Toluca Sale-Leaseback, the Company has a capital lease obligation of $3,211,000 for the building. The future minimum payments for the capital lease as of October 2, 2016 are as follows (in thousands): 2016 (remaining 3 months) $ 137 2017 503 2018 549 2019 549 2020 503 Thereafter 2,834 Total future payments 5,075 Less: Amount representing interest (1,864 ) Present value of future minimum payments 3,211 Less: Current portion (203 ) Long term portion $ 3,008 |
Note 13 - Segment Data
Note 13 - Segment Data | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | ( 13) Segment Data The Company is organized into two business groups, Sypris Technologies and Sypris Electronics. These segments are each managed separately because of the distinctions between the products, services, markets, customers, technologies and workforce skills of the segments. Sypris Technologies provides manufacturing services for a variety of customers that outsource forged and finished steel components and subassemblies. Sypris Technologies also manufactures high-pressure closures and other fabricated products. Sypris Electronics provides manufacturing and technical services as an outsourced service provider and manufactures complex data storage systems. Additionally, prior to August 16, 2016, Sypris Electronics also provided trusted solutions for identity management, cryptographic key distribution and cyber analytics (see Note 5 “CSS Sale”). There was no intersegment net revenue recognized in any of the periods presented. The following table presents financial information for the reportable segments of the Company (in thousands): Three Months Ended Nine Months Ended October 2 , October 4 , October 2 , October 4 , 201 6 201 5 201 6 201 5 (Unaudited) (Unaudited) Net revenue from unaffiliated customers: Sypris Technologies $ 14,796 $ 27,824 $ 47,392 $ 87,904 Sypris Electronics 6,588 10,613 24,434 28,298 $ 21,384 $ 38,437 $ 71,826 $ 116,202 Gross profit (loss): Sypris Technologies $ (363 ) $ 1,973 $ (1,279 ) $ (1,550 ) Sypris Electronics (358 ) 495 2,007 827 $ (721 ) $ 2,468 $ 728 $ (723 ) Operating (loss) income: Sypris Technologies $ (2,099 ) $ (609 ) $ (7,123 ) $ (12,347 ) Sypris Electronics (1,996 ) (1,515 ) (3,965 ) (6,216 ) General, corporate and other (1,938 ) (1,953 ) (5,976 ) (6,244 ) $ (6,033 ) $ (4,077 ) $ (17,064 ) $ (24,807 ) October 2 , December 31, 201 6 201 5 (Unaudited) Total assets: Sypris Technologies $ 34,073 $ 38,968 Sypris Electronics 14,316 23,845 General, corporate and other 24,289 4,079 $ 72,678 $ 66,892 |
Note 14 - Commitments and Conti
Note 14 - Commitments and Contingencies | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | ( 14 ) Commitments and Contingencies The provision for estimated warranty costs is recorded at the time of sale and periodically adjusted to reflect actual experience. The Company’s warranty liability, which is included in accrued liabilities in the accompanying balance sheets as of October 2, 2016 and December 31, 2015, was $851,000 and $830,000, respectively. The Company’s warranty expense for the nine months ended October 2, 2016 and October 4, 2015 was $64,000 and $112,000, respectively. Additionally, prior to the CSS sale, the Company sold three and five-year extended warranties for one of its link encryption products. The revenue from the extended warranties is deferred and recognized ratably over the contractual term. As of October 2, 2016 and December 31, 2015, the Company had deferred $245,000 and $495,000, respectively, related to extended warranties. The Company bears insurance risk as a member of a group captive insurance entity for certain general liability, automobile and workers’ compensation insurance programs and a self-insured employee health program. The Company records estimated liabilities for its insurance programs based on information provided by the third-party plan administrators, historical claims experience, expected costs of claims incurred but not paid, and expected costs to settle unpaid claims. The Company monitors its estimated insurance-related liabilities on a quarterly basis. As facts change, it may become necessary to make adjustments that could be material to the Company’s consolidated results of operations and financial condition. The Company believes that its present insurance coverage and level of accrued liabilities are adequate. As of October 2, 2016, the Company had outstanding purchase commitments of approximately $9,346,000, primarily for the acquisition of inventory and manufacturing equipment. As of October 2, 2016, the Company also had outstanding letters of credit approximating $66,000 for certain foreign customers. The Company is involved in certain litigation and contract issues arising in the normal course of business. As a result, contingencies may arise resulting from an existing condition, situation, or set of circumstances involving an uncertainty as to the realization of a possible loss. The Company accounts for loss contingencies in accordance with GAAP. Estimated loss contingencies are accrued only if the loss is probable and the amount of the loss can be reasonably estimated. With respect to a particular loss contingency, it may be probable that a loss has occurred but the estimate of the loss is within a wide range or undeterminable. If the Company deems an amount within the range to be a better estimate than any other amount within the range, that amount will be accrued. However, if no amount within the range is a better estimate than any other amount, the minimum amount of the range is accrued. During the fourth quarter of 2015, the Company gave notification regarding its intention to not renew the lease for its Tampa, FL facility, which will expire on December 31, 2016. During the first quarter of 2016, the Company entered into lease negotiations to extend the current lease for a smaller portion of the facility, but was unable to reach an agreement on the economics of a lease renewal with its current landlord. On May 3, 2016, the Company entered a lease for an alternative facility, which it expects to occupy upon the expiration of the current lease. The Company, Sypris Electronics and the landlord of the Tampa facility are currently involved in litigation over certain terms of the lease (see Item 1, “Legal Proceedings”). As such, it is reasonably possible that the Company may be required to make certain repairs to the current facility in connection which the expiration of the Lease. The current estimate of the Company’s reasonably possible loss contingency is from no liability to $4,000,000. While the Company intends to vigorously dispute these claims, the Company accrued $500,000 during the nine months ended October 2, 2016 related to its estimated potential obligation under the lease. This accrual is included in accrued liabilities in the Company’s consolidated balance sheet as of October 2, 2016. |
Note 15 - Income Taxes
Note 15 - Income Taxes | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | ( 15 ) Income Taxes The provision for income taxes includes federal, state, local and foreign taxes. The Company’s effective tax rate varies from period to period due to the proportion of foreign and domestic pre-tax income expected to be generated by the Company. The Company provides for income taxes for its domestic operations at a statutory rate of 35% and for its foreign operations at a statutory rate of 30% in 2016 and 2015. Reconciling items between the federal statutory rate and the effective tax rate also include the expected usage of federal net operating loss carryforwards, state income taxes, valuation allowances and certain other permanent differences. The Company recognizes liabilities or assets for the deferred tax consequences of temporary differences between the tax bases of assets or liabilities and their reported amounts in the financial statements in accordance with ASC 740, Income Taxes As a result of the increased uncertainty surrounding the Company’s forecast of taxable income in Mexico, it was determined that the Company no longer met the “more likely than not” threshold required under ASC 740-10 in order to maintain the Mexico deferred tax asset. Accordingly, the Company recorded a valuation allowance on its net deferred tax asset related to certain non-U.S. tax benefits, resulting in deferred tax expense of $2,436,000 during the third quarter ended October 4, 2015. Until an appropriate level and characterization of profitability is attained, the Company expects to continue to maintain a valuation allowance on its net deferred tax assets related to future U.S. and non-U.S. tax benefits. The Company expects to repatriate available non-U.S. cash holdings in 2016 to support management’s strategic objectives and fund ongoing U.S. operational cash flow requirements; therefore current earnings from non-U.S. operations are not treated as permanently reinvested. The U.S. income tax expense recorded in 2015 on these non-U.S. earnings was offset by the benefit of a partial release of a valuation allowance on U.S. |
Note 16 - Employee Benefit Plan
Note 16 - Employee Benefit Plans | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | (1 6 ) Employee Benefit Plans Pension expense (benefit) consisted of the following (in thousands): Three Months Ended Nine Months Ended October 2 , October 4 , October 2 , October 4 , 201 6 201 5 201 6 201 5 (Unaudited) (Unaudited) Service cost $ 1 $ 3 $ 4 $ 10 Interest cost on projected benefit obligation 419 423 1,256 1,268 Net amortizations, deferrals and other costs 166 173 498 520 Expected return on plan assets (493 ) (561 ) (1,478 ) (1,683 ) $ 93 $ 38 $ 280 $ 115 |
Note 17 - Accumulated Other Com
Note 17 - Accumulated Other Comprehensive Loss | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | (1 7 ) Accumulated Other Comprehensive Loss The Company’s accumulated other comprehensive loss consists of employee benefit-related adjustments and foreign currency translation adjustments. Accumulated other comprehensive loss consisted of the following (in thousands): October 2 , December 31, 201 6 201 5 (Unaudited) Foreign currency translation adjustments $ (10,697 ) $ (9,554 ) Employee benefit related adjustments – U.S. (16,177 ) (16,177 ) Employee benefit related adjustments – Mexico (29 ) (29 ) Accumulated other comprehensive loss $ (26,903 ) $ (25,760 ) |
Note 18 - Subsequent Events
Note 18 - Subsequent Events | 9 Months Ended |
Oct. 02, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | ( 1 8 ) Fair Value of Financial Instruments Cash, accounts receivable, accounts payable and accrued liabilities are reflected in the consolidated financial statements at their carrying amount which approximates fair value because of the short-term maturity of those instruments. The carrying amount of debt outstanding at October 2, 2016 approximates fair value and is based upon a market approach (Level 2). |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 02, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. This new standard will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount it expects to receive for those goods and services. This ASU requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and estimates and changes in those estimates. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which delayed the effective date of ASU 2014-09 by one year to January 1, 2018. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations and includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. In April of 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606) - Identifying Performance Obligations and Licensing, which reduces the complexity when applying the guidance for identifying performance obligations and improves the operability and understandability of the license implementation guidance. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients, which amends the guidance on transition, collectability, non-cash consideration, and the presentation of sales and other similar taxes. ASU 2016-12 clarifies that, for a contract to be considered completed at transition, all (or substantially all) of the revenue must have been recognized under legacy GAAP. In addition, ASU 2016-12 clarifies how an entity should evaluate the collectability threshold and when an entity can recognize nonrefundable consideration received as revenue if an arrangement does not meet the standard’s contract criteria. The standard allows for both retrospective and modified retrospective methods of adoption. The Company is in the process of determining the method of adoption it will elect and is currently assessing the impact of this ASU on its consolidated financial statements and footnote disclosures. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern. The new guidance requires management to assess if there is substantial doubt about an entity’s ability to continue as a going concern for each annual and interim period. If conditions or events give rise to substantial doubt, disclosures are required. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter; early application is permitted. The Company is currently assessing the impact of adopting this ASU on its consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU 2015-03. In August 2015 the FASB issued ASU No. 2015-15, Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting. ASU 2015-15 was issued to address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements that were not found in ASU 2015-03. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the ASU provides that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These standards are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, and should be applied retrospectively. Early adoption is permitted. The Company adopted this guidance January 1, 2016. As a result of adoption, debt issuance costs of $1,220,000 were reclassified from assets to reduce long-term-debt as of December 31, 2015 . In July 2015, the FASB issued ASU No. 2015-11, which simplifies the subsequent measurement of inventory. It replaces the current lower of cost or market test with a lower of cost or net realizable value test. The standard is effective for public entities for annual reporting periods beginning after December 15, 2016, and interim periods therein. Early adoption is permitted. The new guidance must be applied prospectively. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This standard affects any entity that enters into a lease, with some specified scope exemptions. The guidance in this update supersedes FASB ASC 840, Leases. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently assessing the impact of adopting this ASU on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) requiring an entity to record all excess tax benefits and tax deficiencies as an income tax benefit or expense in the income statement. ASU 2016-09 will also require an entity to elect an accounting policy to either estimate the number of forfeitures or account for forfeitures when they occur. ASU 2016-09 becomes effective for the Company during the first quarter 2017. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. This ASU provides guidance to clarify how certain cash receipts and payments should be presented in the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted in any annual or interim period. The updated guidance requires a modified retrospective adoption. The Company is evaluating the impact of adoption on the Company's financial position, results of operations and cash flow. |
Note 6 - Toluca Sale-leaseback
Note 6 - Toluca Sale-leaseback (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | December 31, 2015 Land and land improvements $ 1,568 Buildings and building improvements 3,658 Accumulated depreciation (1,996 ) Property, plant and equipment, net $ 3,230 |
Note 8 - Income (Loss) Per Co26
Note 8 - Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended October 2 , October 4 , October 2 , October 4 , 201 6 201 5 201 6 201 5 (Unaudited) (Unaudited) Income (loss) attributable to stockholders: Net income (loss) as reported $ 20,993 $ (274 ) $ 10,691 $ (21,723 ) Less distributed and undistributed earnings allocable to restricted award holders (737 ) 0 (331 ) 0 Net income (loss) allocable to common stockholders $ 20,256 $ (274 ) $ 10,360 $ (21,723 ) Income (loss) per common share attributable to stockholders: Basic $ 1.02 $ (0.01 ) $ 0.52 $ (1.10 ) Diluted $ 1.02 $ (0.01 ) $ 0.52 $ (1.10 ) Weighted average shares outstanding – basic 19,834 19,654 19,761 19,684 Weighted average additional shares assuming conversion of potential common shares 0 0 0 0 Weighted average shares outstanding – diluted 19,834 19,654 19,761 19,684 |
Note 9 - Inventory (Tables)
Note 9 - Inventory (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | October 2 , December 31, 201 6 201 5 (Unaudited) Raw materials $ 8,441 $ 12,388 Work in process 9,039 10,366 Finished goods 2,451 3,167 Reserve for excess and obsolete inventory (4,765 ) (5,729 ) $ 15,166 $ 20,192 |
Note 10 - Property, Plant and28
Note 10 - Property, Plant and Equipment (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | October 2 , December 31, 201 6 201 5 (Unaudited) Land and land improvements $ 219 $ 219 Buildings and building improvements 17,566 18,305 Machinery, equipment, furniture and fixtures 120,531 123,935 Construction in progress 1,899 759 140,215 143,218 Accumulated depreciation (119,291 ) (121,040 ) $ 20,924 $ 22,178 |
Note 11 - Debt (Tables)
Note 11 - Debt (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | October 2, December 31, 2016 2015 (Unaudited) Current: Revolving Credit facility $ 0 $ 2,132 Current portion of long term debt 0 1,714 Current portion of capital lease obligation 203 0 Current debt and capital lease obligation $ 203 $ 3,846 Long Term: Term loan $ 0 $ 10,000 Note payable – related party 6,500 5,500 Capital lease obligation 3,008 0 Less unamortized debt issuance and modification costs (140 ) (1,220 ) Long term debt and capital lease obligations, net of unamortized debt costs $ 9,368 $ 14,280 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | 2016 (remaining 3 months) $ 137 2017 503 2018 549 2019 549 2020 503 Thereafter 2,834 Total future payments 5,075 Less: Amount representing interest (1,864 ) Present value of future minimum payments 3,211 Less: Current portion (203 ) Long term portion $ 3,008 |
Note 13 - Segment Data (Tables)
Note 13 - Segment Data (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Nine Months Ended October 2 , October 4 , October 2 , October 4 , 201 6 201 5 201 6 201 5 (Unaudited) (Unaudited) Net revenue from unaffiliated customers: Sypris Technologies $ 14,796 $ 27,824 $ 47,392 $ 87,904 Sypris Electronics 6,588 10,613 24,434 28,298 $ 21,384 $ 38,437 $ 71,826 $ 116,202 Gross profit (loss): Sypris Technologies $ (363 ) $ 1,973 $ (1,279 ) $ (1,550 ) Sypris Electronics (358 ) 495 2,007 827 $ (721 ) $ 2,468 $ 728 $ (723 ) Operating (loss) income: Sypris Technologies $ (2,099 ) $ (609 ) $ (7,123 ) $ (12,347 ) Sypris Electronics (1,996 ) (1,515 ) (3,965 ) (6,216 ) General, corporate and other (1,938 ) (1,953 ) (5,976 ) (6,244 ) $ (6,033 ) $ (4,077 ) $ (17,064 ) $ (24,807 ) |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | October 2 , December 31, 201 6 201 5 (Unaudited) Total assets: Sypris Technologies $ 34,073 $ 38,968 Sypris Electronics 14,316 23,845 General, corporate and other 24,289 4,079 $ 72,678 $ 66,892 |
Note 16 - Employee Benefit Pl31
Note 16 - Employee Benefit Plans (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Three Months Ended Nine Months Ended October 2 , October 4 , October 2 , October 4 , 201 6 201 5 201 6 201 5 (Unaudited) (Unaudited) Service cost $ 1 $ 3 $ 4 $ 10 Interest cost on projected benefit obligation 419 423 1,256 1,268 Net amortizations, deferrals and other costs 166 173 498 520 Expected return on plan assets (493 ) (561 ) (1,478 ) (1,683 ) $ 93 $ 38 $ 280 $ 115 |
Note 17 - Accumulated Other C32
Note 17 - Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | October 2 , December 31, 201 6 201 5 (Unaudited) Foreign currency translation adjustments $ (10,697 ) $ (9,554 ) Employee benefit related adjustments – U.S. (16,177 ) (16,177 ) Employee benefit related adjustments – Mexico (29 ) (29 ) Accumulated other comprehensive loss $ (26,903 ) $ (25,760 ) |
Note 1 - Nature of Business (De
Note 1 - Nature of Business (Details Textual) | 9 Months Ended |
Oct. 02, 2016 | |
Number of Operating Segments | 2 |
Note 3 - Recent Accounting Pr34
Note 3 - Recent Accounting Pronouncements (Details Textual) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Reclassification from Assets to Reduce Long-term Debt [Member] | December 31, 2015 [Member] | |
Prior Period Reclassification Adjustment | $ 1,220,000 |
Note 4 - Management's Plans (De
Note 4 - Management's Plans (Details Textual) - USD ($) | Aug. 16, 2016 | Apr. 03, 2016 | Oct. 02, 2016 | Feb. 26, 2016 | Dec. 31, 2015 |
Gill Family Capital Management [Member] | Promissory Note [Member] | |||||
Subordinated Debt | $ 6,500,000 | $ 6,500,000 | $ 5,500,000 | ||
Sypris Electronics [Member] | |||||
Proceeds from Sale of Productive Assets | $ 42,000,000 | ||||
Toluca [Member] | |||||
Sale Leaseback Transaction, Net Proceeds, Investing Activities | $ 12,182,000 |
Note 5 - CSS Sale (Details Text
Note 5 - CSS Sale (Details Textual) - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] - USD ($) | Aug. 16, 2016 | Oct. 02, 2016 | Oct. 04, 2015 | Oct. 02, 2016 | Oct. 04, 2015 |
Sypris Electronics Assets [Member] | Other Income [Member] | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 31,240,000 | $ 31,240,000 | |||
Sypris Electronics Assets [Member] | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 42,000,000 | ||||
Escrow Deposit | $ 1,500,000 | ||||
Escrow Deposit, Holding Period | 1 year | ||||
Disposal Group, Including Discontinued Operation, Assets | $ 8,086,000 | ||||
Disposal Group, Including Discontinued Operation, Inventory | 6,562,000 | ||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 1,050,000 | ||||
Disposal Group, Including Discontinued Operation, Other Assets, Current | 624,000 | ||||
Disposal Group, Including Discontinued Operation, Accrued Liabilities | 150,000 | ||||
Disposal Group, Incurred Transaction Related Expenses | $ 2,674,000 | ||||
Sypris Electronics Product Line [Member] | |||||
Disposal Group, Including Discontinued Operation, Revenue | $ 1,769,000 | $ 6,822,000 | $ 11,061,000 | $ 10,786,000 |
Note 6 - Toluca Sale-leasebac37
Note 6 - Toluca Sale-leaseback (Details Textual) | Mar. 09, 2016USD ($)a | Mar. 09, 2016MXNa | Apr. 03, 2016USD ($) | Oct. 02, 2016USD ($) | Jul. 03, 2016USD ($) | Dec. 31, 2015USD ($) |
Toluca [Member] | Sypris Technologies Mexico, S. de R.L. de C.V. [Member] | ||||||
Area of Real Estate Property | a | 24 | 24 | ||||
Sale Leaseback Transaction, Net Proceeds, Investing Activities | $ 12,182,000 | MXN 215,000,000 | ||||
Sale Leaseback Transaction, Portion of Real Estate Property Leased Back to Seller | a | 9 | 9 | ||||
Toluca [Member] | Property, Plant and Equipment [Member] | ||||||
Sale Leaseback Transaction, Amount Due under Financing Arrangement | $ 3,315,000 | |||||
Toluca [Member] | Other Income [Member] | ||||||
Sale Leaseback Transaction, Current Period Gain Recognized | $ 2,370,000 | |||||
Sale Leaseback Transaction, Deferred Gain, Net | $ 4,779,000 | |||||
Toluca [Member] | ||||||
Disposal Group, Including Discontinued Operation, Assets, Current | $ 3,230,000 | |||||
Sale Leaseback Transaction, Net Proceeds, Investing Activities | $ 12,182,000 | |||||
Sale Leaseback Transaction, Transaction Related Expenses | $ 1,116,000 | |||||
Capital Lease Agreement Term | 10 years | |||||
Sale Leaseback Transaction, Annual Rental Payments | $ 936,000 | $ 936,000 | ||||
Disposal Group, Including Discontinued Operation, Assets, Current | $ 0 | $ 3,230,000 |
Note 6 - Toluca Sale-leasebac38
Note 6 - Toluca Sale-leaseback - Components of Assets Held for Sale (Details) - USD ($) | Oct. 02, 2016 | Dec. 31, 2015 |
Land and Land Improvements [Member] | Toluca [Member] | ||
Property, plant and equipment, Gross | $ 1,568,000 | |
Building and Building Improvements [Member] | Toluca [Member] | ||
Property, plant and equipment, Gross | 3,658,000 | |
Toluca [Member] | ||
Accumulated depreciation | (1,996,000) | |
Property, plant and equipment, net | 3,230,000 | |
Property, plant and equipment, net | $ 0 | $ 3,230,000 |
Note 7 - Morganton Sale (Detail
Note 7 - Morganton Sale (Details Textual) - USD ($) | Jul. 09, 2015 | Sep. 30, 2015 |
Morganton [Member] | Certain Assets [Member] | ||
Proceeds from Sales of Business, Affiliate and Productive Assets | $ 10,500,000 | |
Morganton [Member] | Certain Assets and Liabilities [Member] | ||
Proceeds from Sales of Business, Affiliate and Productive Assets | 2,000,000 | |
Morganton [Member] | Morganton Facility [Member] | ||
Proceeds from Sales of Business, Affiliate and Productive Assets | 3,200,000 | |
Morganton [Member] | ||
Proceeds from Sales of Business, Affiliate and Productive Assets | 15,700,000 | |
Gain (Loss) on Disposition of Business | 7,744,000 | |
Meritor Note [Member] | ||
Debt Instrument, Face Amount | 3,047,000 | |
Meritor Note Amendment [Member] | ||
Secured Debt | $ 412,000 | $ 321,000 |
Note 8 - Income (Loss) Per Co40
Note 8 - Income (Loss) Per Common Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Oct. 04, 2015 | Oct. 02, 2016 | Oct. 04, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,304,250 | 0 | 2,304,250 | 0 |
Note 8 - Income (Loss) Per Co41
Note 8 - Income (Loss) Per Common Share - Reconciliation of Weighted Average Shares Outstanding Used in Calculation of Basic and Diluted (Loss) Earnings Per Common Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Oct. 04, 2015 | Oct. 02, 2016 | Oct. 04, 2015 | |
Net income (loss) as reported | $ 20,993,000 | $ (274,000) | $ 10,691,000 | $ (21,723,000) |
Less distributed and undistributed earnings allocable to restricted award holders | (737,000) | 0 | (331,000) | 0 |
Net income (loss) allocable to common stockholders | $ 20,256,000 | $ (274,000) | $ 10,360,000 | $ (21,723,000) |
Basic (in dollars per share) | $ 1.02 | $ (0.01) | $ 0.52 | $ (1.10) |
Diluted (in dollars per share) | $ 1.02 | $ (0.01) | $ 0.52 | $ (1.10) |
Weighted average shares outstanding – basic (in shares) | 19,834,000 | 19,654,000 | 19,761,000 | 19,684,000 |
Weighted average additional shares assuming conversion of potential common shares (in shares) | 0 | 0 | 0 | 0 |
Weighted average shares outstanding – diluted (in shares) | 19,834,000 | 19,654,000 | 19,761,000 | 19,684,000 |
Note 9 - Inventory Inventory Co
Note 9 - Inventory Inventory Components (Details) - USD ($) | Oct. 02, 2016 | Dec. 31, 2015 |
Raw materials | $ 8,441,000 | $ 12,388,000 |
Work in process | 9,039,000 | 10,366,000 |
Finished goods | 2,451,000 | 3,167,000 |
Reserve for excess and obsolete inventory | (4,765,000) | (5,729,000) |
$ 15,166,000 | $ 20,192,000 |
Note 10 - Property, Plant and43
Note 10 - Property, Plant and Equipment - Property, Plant and Equipment Components (Details) - USD ($) | Oct. 02, 2016 | Dec. 31, 2015 |
Land and Land Improvements [Member] | ||
Gross property, plant and equipment | $ 219,000 | $ 219,000 |
Building and Building Improvements [Member] | ||
Gross property, plant and equipment | 17,566,000 | 18,305,000 |
Property, Plant and Equipment, Other Types [Member] | ||
Gross property, plant and equipment | 120,531,000 | 123,935,000 |
Construction in Progress [Member] | ||
Gross property, plant and equipment | 1,899,000 | 759,000 |
Gross property, plant and equipment | 140,215,000 | 143,218,000 |
Accumulated depreciation | (119,291,000) | (121,040,000) |
Property plant and equipment net | $ 20,924,000 | $ 22,178,000 |
Note 11 - Debt (Details Textual
Note 11 - Debt (Details Textual) | Sep. 02, 2016USD ($) | Aug. 16, 2016USD ($) | Mar. 09, 2016USD ($)a | Mar. 09, 2016MXNa | Feb. 26, 2016USD ($) | Feb. 25, 2016USD ($) | Apr. 03, 2016USD ($) | Oct. 02, 2016USD ($) | Oct. 04, 2015USD ($) | Dec. 31, 2015USD ($) | Oct. 30, 2015USD ($) |
Promissory Note [Member] | Gill Family Capital Management [Member] | |||||||||||
Subordinated Debt | $ 6,500,000 | $ 6,500,000 | $ 5,500,000 | ||||||||
Proceeds from Issuance of Subordinated Long-term Debt | $ 1,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||||||
Term Loan [Member] | |||||||||||
Debt Instrument, Face Amount | $ 12,000,000 | ||||||||||
Additional Amount of Cash to Be Deposited Into a Controlled Cash Collateral Account to be Held for One Year | $ 6,000,000 | ||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 1.00% | ||||||||||
Cash, Realesed from Cash Collateral Account, Amount | $ 6,000,000 | ||||||||||
Payments of Debt Extinguishment Costs | $ 1,521,000 | ||||||||||
New Credit Facility [Member] | Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | ||||||||||
Toluca [Member] | Sypris Technologies Mexico, S. de R.L. de C.V. [Member] | |||||||||||
Area of Land | a | 24 | 24 | |||||||||
Sale Leaseback Transaction, Net Proceeds, Investing Activities | $ 12,182,000 | MXN 215,000,000 | |||||||||
Toluca [Member] | Other Income [Member] | |||||||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | $ 2,370,000 | ||||||||||
Sale Leaseback Transaction, Deferred Gain, Net | 4,779,000 | ||||||||||
Toluca [Member] | Buildings and Land [Member] | |||||||||||
Sale Leaseback Transaction, Amount Due under Financing Arrangement | 3,211,000 | ||||||||||
Toluca [Member] | |||||||||||
Sale Leaseback Transaction, Net Proceeds, Investing Activities | $ 12,182,000 | ||||||||||
Sale Leaseback Transaction, Transaction Related Expenses | $ 1,116,000 | ||||||||||
Sale Leaseback Transaction, Term of Lease | 10 years | ||||||||||
Sale Leaseback Transaction, Annual Rental Payments | $ 936,000 | 936,000 | |||||||||
Sypris Technologies Mexico, S. de R.L. de C.V. [Member] | Area of Land Occupied by Seller [Member] | |||||||||||
Area of Land | a | 9 | 9 | |||||||||
Payments of Debt Extinguishment Costs | 1,521,000 | $ 0 | |||||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | $ 33,630,000 | $ 7,423,000 |
Note 11 - Debt - Debt Component
Note 11 - Debt - Debt Components (Details) - USD ($) | Oct. 02, 2016 | Dec. 31, 2015 |
Revolving Credit facility | $ 0 | $ 2,132,000 |
Current portion of long term debt | 0 | 1,714,000 |
Current portion of capital lease obligation | 203,000 | 0 |
Current debt and capital lease obligation | 203,000 | 3,846,000 |
Term loan | 0 | 10,000,000 |
Note payable – related party | 6,360,000 | 5,315,000 |
Long term portion | 3,008,000 | 0 |
Less unamortized debt issuance and modification costs | (140,000) | (1,220,000) |
Long term debt and capital lease obligations, net of unamortized debt costs | $ 9,368,000 | $ 14,280,000 |
Note 11 - Debt - Capital Lease
Note 11 - Debt - Capital Lease Future Minimum Payments (Details) - USD ($) | Oct. 02, 2016 | Dec. 31, 2015 |
2016 (remaining 3 months) | $ 137,000 | |
2,017 | 503,000 | |
2,018 | 549,000 | |
2,019 | 549,000 | |
2,020 | 503,000 | |
Thereafter | 2,834,000 | |
Total future payments | 5,075,000 | |
Less: Amount representing interest | (1,864,000) | |
Present value of future minimum payments | 3,211,000 | |
Less: Current portion | (203,000) | $ 0 |
Long term portion | $ 3,008,000 | $ 0 |
Note 13 - Segment Data (Details
Note 13 - Segment Data (Details Textual) | 9 Months Ended |
Oct. 02, 2016 | |
Number of Operating Segments | 2 |
Note 13 - Segment Data - Financ
Note 13 - Segment Data - Financial Information from Reportable Segments - Income Statement (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2016 | Oct. 02, 2016 | Oct. 04, 2015 | Oct. 02, 2016 | Oct. 04, 2015 | |
Sypris Technologies [Member] | |||||
Net revenue from unaffiliated customers | $ 14,796,000 | $ 27,824,000 | $ 47,392,000 | $ 87,904,000 | |
Gross profit (loss) | (363,000) | 1,973,000 | (1,279,000) | (1,550,000) | |
Operating loss | (2,099,000) | (609,000) | (7,123,000) | (12,347,000) | |
Sypris Electronics [Member] | |||||
Net revenue from unaffiliated customers | 6,588,000 | 10,613,000 | 24,434,000 | 28,298,000 | |
Gross profit (loss) | (358,000) | 495,000 | 2,007,000 | 827,000 | |
Operating loss | (1,996,000) | (1,515,000) | (3,965,000) | (6,216,000) | |
Corporate and Other [Member] | |||||
Operating loss | (1,938,000) | (1,953,000) | (5,976,000) | (6,244,000) | |
Net revenue from unaffiliated customers | 21,384,000 | 38,437,000 | 71,826,000 | 116,202,000 | |
Gross profit (loss) | $ (721,000) | (721,000) | 2,468,000 | 728,000 | (723,000) |
Operating loss | $ (6,033,000) | $ (6,033,000) | $ (4,077,000) | $ (17,064,000) | $ (24,807,000) |
Note 13 - Segment Data - Fina49
Note 13 - Segment Data - Financial Information From Reportable Segments - Balance Sheet (Details) - USD ($) | Oct. 02, 2016 | Dec. 31, 2015 |
Sypris Technologies [Member] | ||
Total Assets | $ 34,073,000 | $ 38,968,000 |
Sypris Electronics [Member] | ||
Total Assets | 14,316,000 | 23,845,000 |
General, Corporate and Other [Member] | ||
Total Assets | 24,289,000 | 4,079,000 |
Total Assets | $ 72,678,000 | $ 66,892,000 |
Note 14 - Commitments and Con50
Note 14 - Commitments and Contingencies (Details Textual) - USD ($) | 9 Months Ended | 12 Months Ended | |
Oct. 02, 2016 | Oct. 04, 2015 | Dec. 31, 2015 | |
Link Encryption Products [Member] | Minimum [Member] | |||
Extended Product Warranty Term | 3 years | ||
Link Encryption Products [Member] | Maximum [Member] | |||
Extended Product Warranty Term | 5 years | ||
Minimum [Member] | |||
Loss Contingency, Estimate of Possible Loss | $ 0 | ||
Maximum [Member] | |||
Loss Contingency, Estimate of Possible Loss | 4,000,000 | ||
Accrued Liabilities [Member] | |||
Loss Contingency Accrual | 500,000 | ||
Standard and Extended Product Warranty Accrual | 851,000 | $ 830,000 | |
Product Warranty Expense | 64,000 | $ 112,000 | |
Extended Product Warranty Accrual, Increase for Warranties Issued | 245,000 | $ 495,000 | |
Purchase Obligation | 9,346,000 | ||
Letters of Credit Outstanding, Amount | $ 66,000 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |
Oct. 04, 2015 | Oct. 02, 2016 | Oct. 04, 2015 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 30.00% | 30.00% | |
Deferred Income Tax Expense (Benefit) | $ 2,436,000 | $ 0 | $ 2,436,000 |
Note 16 - Employee Benefit Pl52
Note 16 - Employee Benefit Plans - Components of Pension Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Oct. 04, 2015 | Oct. 02, 2016 | Oct. 04, 2015 | |
Service cost | $ 1 | $ 3 | $ 4 | $ 10 |
Interest cost on projected benefit obligation | 419 | 423 | 1,256 | 1,268 |
Net amortizations, deferrals and other costs | 166 | 173 | 498 | 520 |
Expected return on plan assets | (493) | (561) | (1,478) | (1,683) |
Pension expense (benefit) | $ 93 | $ 38 | $ 280 | $ 115 |
Note 17 - Accumulated Other C53
Note 17 - Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Loss Components (Details) - USD ($) | Oct. 02, 2016 | Dec. 31, 2015 |
UNITED STATES | ||
Employee benefit related adjustments | $ (16,177,000) | $ (16,177,000) |
MEXICO | ||
Employee benefit related adjustments | (29,000) | (29,000) |
Foreign currency translation adjustments | (10,697,000) | (9,554,000) |
Accumulated other comprehensive loss | $ (26,903,000) | $ (25,760,000) |