Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Apr. 02, 2023 | May 23, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 02, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-24020 | |
Entity Registrant Name | SYPRIS SOLUTIONS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 61-1321992 | |
Entity Address, Address Line One | 101 Bullitt Lane, Suite 450 | |
Entity Address, City or Town | Louisville | |
Entity Address, State or Province | KY | |
Entity Address, Postal Zip Code | 40222 | |
City Area Code | 502 | |
Local Phone Number | 329-2000 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | SYPR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 22,383,383 | |
Entity Central Index Key | 0000864240 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Net revenue | $ 32,292 | $ 26,166 |
Cost of sales | 28,131 | 21,657 |
Gross profit | 4,161 | 4,509 |
Selling, general and administrative | 3,745 | 3,389 |
Operating income | 416 | 1,120 |
Interest expense, net | 226 | 248 |
Other expense, net | 71 | 169 |
Income before taxes | 119 | 703 |
Income tax expense, net | 294 | 466 |
Net (loss) income | $ (175) | $ 237 |
Basic (in dollars per share) | $ (0.01) | $ 0.01 |
Diluted (in dollars per share) | $ (0.01) | $ 0.01 |
Weighted average shares outstanding: | ||
Basic (in shares) | 21,796 | 21,681 |
Diluted (in shares) | 21,796 | 22,675 |
Dividends declared per common share (in dollars per share) | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Net (loss) income | $ (175) | $ 237 |
Other comprehensive income: | ||
Foreign currency translation adjustments, net of tax | 1,373 | 583 |
Comprehensive income | $ 1,198 | $ 820 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Apr. 02, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 19,481,000 | $ 21,648,000 |
Accounts receivable, net | 10,720,000 | 8,064,000 |
Inventory, net | 52,489,000 | 42,133,000 |
Other current assets | 8,384,000 | 8,133,000 |
Total current assets | 91,074,000 | 79,978,000 |
Property, plant and equipment, net | 16,772,000 | 15,532,000 |
Operating lease right-of-use assets | 4,072,000 | 4,251,000 |
Other assets | 4,524,000 | 4,383,000 |
Total assets | 116,442,000 | 104,144,000 |
Current liabilities: | ||
Accounts payable | 20,816,000 | 17,638,000 |
Accrued liabilities | 35,348,000 | 33,316,000 |
Operating lease liabilities, current portion | 1,196,000 | 1,168,000 |
Finance lease obligations, current portion | 1,169,000 | 1,102,000 |
Equipment financing obligations, current portion | 400,000 | 398,000 |
Note payable – related party, current portion | 4,500,000 | 2,500,000 |
Total current liabilities | 63,429,000 | 56,122,000 |
Operating lease liabilities, net of current portion | 3,398,000 | 3,710,000 |
Finance lease obligations, net of current portion | 2,410,000 | 2,536,000 |
Equipment financing obligations, net of current portion | 1,430,000 | 738,000 |
Note payable – related party, net of current portion | 1,991,000 | 3,989,000 |
Other liabilities | 22,795,000 | 17,474,000 |
Total liabilities | 95,453,000 | 84,569,000 |
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Additional paid-in capital | 155,748,000 | 155,535,000 |
Accumulated deficit | (115,511,000) | (115,336,000) |
Accumulated other comprehensive loss | (19,472,000) | (20,845,000) |
Treasury stock, 19 shares in 2023 and 2022 | 0 | 0 |
Total stockholders’ equity | 20,989,000 | 19,575,000 |
Total liabilities and stockholders’ equity | 116,442,000 | 104,144,000 |
Series A Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Nonvoting Common Stock [Member] | ||
Stockholders’ equity: | ||
Common stock | 0 | 0 |
Common Stock [Member] | ||
Stockholders’ equity: | ||
Common stock | $ 224,000 | $ 221,000 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Apr. 02, 2023 | Dec. 31, 2022 |
Preferred Stock, Par or Stated Value Per Share (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 |
Treasury Stock, Common, Shares (in shares) | 19 | 19 |
Series A Preferred Stock [Member] | ||
Preferred Stock, Par or Stated Value Per Share (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 or Stated Value Per Share (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 |
Common Stock [Member] | ||
Common Stock, Par or Stated Value Per Share (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) | 22,395,862 | 22,175,664 |
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 22,395,843 | 22,175,645 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (175) | $ 237 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Depreciation and amortization | 774 | 763 |
Deferred income taxes | (136) | 247 |
Non-cash compensation expense | 263 | 176 |
Deferred loan costs recognized | 2 | 2 |
Net loss on the disposal of assets | 0 | 10 |
Provision for excess and obsolete inventory | (87) | 64 |
Non-cash lease expense | 179 | 186 |
Other noncash items | 33 | 12 |
Contributions to pension plans | (10) | (22) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,691) | (4,741) |
Inventory | (9,942) | (1,166) |
Prepaid expenses and other assets | 154 | 653 |
Accounts payable | 3,118 | 1,403 |
Accrued and other liabilities | 7,277 | (1,077) |
Net cash used in operating activities | (1,241) | (3,253) |
Cash flows from investing activities: | ||
Capital expenditures, net | (708) | (901) |
Net cash used in investing activities | (708) | (901) |
Cash flows from financing activities: | ||
Proceeds from debt facilities | 210 | 0 |
Principal payments on finance lease obligations | (271) | (238) |
Principal payments on equipment financing obligations | (95) | (82) |
Indirect repurchase of shares of minimum statutory tax withholdings | (48) | (17) |
Net cash used in financing activities | (204) | (337) |
Effect of exchange rate changes on cash balances | (14) | 390 |
Net decrease in cash and cash equivalents | (2,167) | (4,101) |
Cash and cash equivalents at beginning of period | 21,648 | 11,620 |
Cash and cash equivalents at end of period | 19,481 | 7,519 |
Supplemental disclosure of cash flow information: | ||
Fixed assets acquired with equipment financing loan | $ 792 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock Outstanding [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock, Common [Member] | Total |
Balance (in shares) at Dec. 31, 2021 | 21,864,724 | |||||
Balance at Dec. 31, 2021 | $ 218 | $ 154,904 | $ (112,842) | $ (22,994) | $ 0 | |
Net (loss) income | 0 | 0 | 237 | 0 | 0 | $ 237 |
Foreign currency translation adjustment | $ 0 | 0 | 0 | 583 | 0 | |
Issuance of restricted common stock (in shares) | 197,500 | |||||
Issuance of restricted common stock | $ 2 | (2) | 0 | 0 | 0 | |
Exercise of stock options (in shares) | 11,120 | |||||
Exercise of stock options | $ 0 | (17) | 0 | 0 | 0 | |
Noncash compensation (in shares) | 15,000 | |||||
Noncash compensation | $ 0 | 176 | 0 | 0 | 0 | |
Balance (in shares) at Apr. 03, 2022 | 22,088,344 | |||||
Balance at Apr. 03, 2022 | $ 220 | 155,061 | (112,605) | (22,411) | 0 | |
Balance (in shares) at Dec. 31, 2022 | 22,175,645 | |||||
Balance at Dec. 31, 2022 | $ 221 | 155,535 | (115,336) | (20,845) | 0 | 19,575 |
Net (loss) income | 0 | 0 | (175) | 0 | 0 | (175) |
Foreign currency translation adjustment | $ 0 | 0 | 0 | 1,373 | 0 | |
Issuance of restricted common stock (in shares) | 160,000 | |||||
Issuance of restricted common stock | $ 2 | (2) | 0 | 0 | 0 | |
Exercise of stock options (in shares) | 45,198 | |||||
Exercise of stock options | $ 1 | (48) | 0 | 0 | 0 | |
Noncash compensation (in shares) | 15,000 | |||||
Noncash compensation | $ 0 | 263 | 0 | 0 | 0 | |
Balance (in shares) at Apr. 02, 2023 | 22,395,843 | |||||
Balance at Apr. 02, 2023 | $ 224 | $ 155,748 | $ (115,511) | $ (19,472) | $ 0 | $ 20,989 |
Note 1 - Nature of Business
Note 1 - Nature of Business | 3 Months Ended |
Apr. 02, 2023 | |
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 truck components, oil and gas pipeline components and aerospace and defense electronics. The Company produces a wide range of manufactured products, often under multi-year, sole-source contracts. The Company offers such products through its two |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 3 Months Ended |
Apr. 02, 2023 | |
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 accounting principles generally accepted in the United States of America (“U.S. GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, pursuant to such rules and regulations, certain notes and other financial information included in audited financial statements have been condensed or omitted. The December 31, 2022 consolidated balance sheet data was derived from audited statements, but does not include all disclosures required by U.S. GAAP. The Company’s operations are domiciled in the United States (U.S.) and Mexico, and we 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. Changes in facts and circumstances could have a significant impact on the resulting estimated amounts included in our consolidated financial statements. Actual results could differ from these estimates. Actual results for the three months ended April 2, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements, and notes thereto, for the year ended December 31, 2022 as presented in the Company’s Annual Report on Form 10-K. |
Note 3 - Recent Accounting Pron
Note 3 - Recent Accounting Pronouncements | 3 Months Ended |
Apr. 02, 2023 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | (3) Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Credit Losses – Measurement of Credit Losses on Financial Instruments, new guidance for the accounting for credit losses on certain financial instruments. This guidance introduces a new approach to estimating credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The Company adopted this guidance on January 1, 2023, which had no material impact on our consolidated financial statements. |
Note 4 - Leases
Note 4 - Leases | 3 Months Ended |
Apr. 02, 2023 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | (4) Leases The Company determines if an arrangement is a lease at its inception. The Company has entered into operating leases for real estate. These leases have initial terms which range from 10 years to 11 years, and often include one or more options to renew. These renewal terms can extend the lease term by 5 years, and will be included in the lease term when it is reasonably certain that the Company will exercise the option. The Company’s existing leases do not contain significant restrictive provisions; however, certain leases contain provisions for payment of real estate taxes, insurance and maintenance costs by the Company. The lease agreements do not contain any residual value guarantees. Some of the real estate lease agreements include periods of rent holidays and payments that escalate over the lease term by specified amounts. All operating lease expenses are recognized on a straight-line basis over the lease term. For finance leases, interest expense is recognized on the lease liability and the right-of-use asset is amortized over the lease term. Some leases may require variable lease payments based on factors specific to the individual agreements. Variable lease payments for which we are typically responsible include real estate taxes, insurance and common area maintenance expenses based on the Company’s pro-rata share, which are excluded from the measurement of the lease liability. Additionally, one of the Company’s real estate leases has lease payments that adjust based on annual changes in the Consumer Price Index (“CPI”). The leases that are dependent upon CPI are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Incremental payments due to changes in the index are treated as variable lease costs and expensed as incurred. These operating leases are included in “Operating lease right-of-use assets” on the Company’s consolidated balance sheets, and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligations to make lease payments are included in “Operating lease liabilities, current portion” and “Operating lease liabilities, net of current portion” on the Company’s consolidated balance sheets. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As of April 2, 2023, total right-of-use assets and operating lease liabilities were approximately $4,072,000 and $4,594,000, respectively. As of December 31, 2022, total right-of-use assets and operating lease liabilities were approximately $4,251,000 and $4,878,000, respectively. We primarily use our incremental borrowing rate, which is updated quarterly, based on the information available at the commencement date, in determining the present value of lease payments. If readily available, we would use the implicit rate in a new lease to determine the present value of lease payments. The Company has certain contracts for real estate which may contain lease and non-lease components which it has elected to treat as a single lease component. The Company has entered into various short-term operating leases, primarily for office equipment with an initial term of twelve months or less. Lease payments associated with short-term leases are expensed as incurred and are not recorded on the Company’s balance sheet. The related lease expense for short-term leases was not material for the three months ended April 2, 2023 and April 3, 2022. The following table presents information related to lease expense for the three months ended April 2, 2023 and April 3, 2022 (in thousands): Three Months Ended April 2, April 3, 2023 2022 (Unaudited) Finance lease expense: Amortization expense $ 177 $ 149 Interest expense 76 91 Operating lease expense 351 351 Variable lease expense 85 85 Total lease expense $ 689 $ 676 The following table presents supplemental cash flow information related to leases (in thousands): Three Months Ended April 2, April 3, 2023 2022 (Unaudited) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 444 $ 428 Operating cash flows from finance leases 76 103 Financing cash flows from finance leases 271 238 The annual future minimum lease payments as of April 2, 2023 are as follows (in thousands): Operating Finance Leases Leases Next 12 months $ 1,514 $ 1,429 12 to 24 months 1,244 1,339 24 to 36 months 1,164 1,183 36 to 48 months 828 130 48 to 60 months 631 0 Thereafter 0 0 Total lease payments 5,381 4,081 Less imputed interest (787 ) (502 ) Total $ 4,594 $ 3,579 The following table presents certain information related to lease terms and discount rates for leases as of April 2, 2023 and December 31, 2022: April 2, December 31, 2023 2022 (Unaudited) Weighted-average remaining lease term (years): Operating leases 4.2 4.4 Finance leases 2.8 3.0 Weighted-average discount rate (percentage): Operating leases 8.0 8.0 Finance leases 8.6 8.5 |
Note 5 - Revenue From Contracts
Note 5 - Revenue From Contracts With Customers | 3 Months Ended |
Apr. 02, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | (5) Revenue from Contracts with Customers The Company recognizes revenue when it satisfies a performance obligation by transferring control of a promised product or rendering a service to a customer. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for the product or service (the “transaction price”). The Company’s transaction price in its contracts with customers is generally fixed; no payment discounts, rebates or refunds are included within its contracts. The Company also does not provide service-type warranties nor does it allow customer returns. In connection with the sale of various parts to customers, the Company is subject to typical assurance warranty obligations covering the compliance of the electronics parts produced to agreed-upon specifications. Customer returns, when they occur, relate to quality rework issues and are not connected to any repurchase obligation of the Company. A performance obligation is a promise in a contract to transfer a distinct product or render a service to a customer and is the unit of account to which the transaction price is allocated under ASC 606. When a contract contains multiple performance obligations, we allocate the transaction price to the individual performance obligations using the price at which the promised goods or services would be sold to customers on a standalone basis. For most sales within our Sypris Technologies segment and a portion of sales within Sypris Electronics, control transfers to the customer at a point in time. Indicators that control has transferred to the customer include the Company having a present right to payment, the customer obtaining legal title and the customer having the significant risks and rewards of ownership. The Company’s principal terms of sale are FOB Shipping Point, or equivalent, and, as such, the Company primarily transfers control and records revenue for product sales upon shipment. For contracts where Sypris Electronics serves as a contractor for aerospace and defense companies under federally funded programs, we generally recognize revenue over time as we perform because of continuous transfer of control to the customer. This continuous transfer of control to the customer is supported by clauses in the contracts that allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work in process. Because control is transferred over time, revenue and gross profit is recognized based on the extent of progress towards completion of the performance obligation. We use labor hours incurred as a measure of progress for these contracts because it best depicts the Company’s performance of the obligation to the customer, which occurs as we incur labor on our contracts. Under this measure of progress, the extent of progress towards completion is measured based on the ratio of labor hours incurred to date to the total estimated labor hours at completion of the performance obligation. Many of Sypris Electronics’ contractual arrangements with customers are for one Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the three months ended April 2, 2023 and April 3, 2022 (in thousands): April 2, April 3, 2023 2022 (Unaudited) Sypris Technologies – transferred point in time $ 19,500 $ 17,155 Sypris Electronics – transferred point in time 4,489 1,953 Sypris Electronics – transferred over time 8,303 7,058 Net revenue $ 32,292 $ 26,166 Contract Balances Differences in the timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets) and deferred revenue, customer deposits and billings in excess of revenue recognized (contract liabilities) on the consolidated balance sheets. Contract assets Contract liabilities The Company recognized revenue from the amortization of contract liabilities of $3,812,000 and $3,317,000 during the three months ended April 2, 2023 and April 3, 2022, respectively. Practical expedients and exemptions Sales commissions are expensed when incurred because the amortization period would have been one year or less. These costs are recorded in selling, general and administrative expense in the consolidated statements of operations. We do not disclose the value of unsatisfied performance obligations for contracts with original expected lengths of one year or less. |
Note 6 - (Loss) Income Per Comm
Note 6 - (Loss) Income Per Common Share | 3 Months Ended |
Apr. 02, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | (6) (Loss) Income 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. For the three months ended April 2, 2023, 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. There were 252,839 shares excluded from earnings per share for the three months ended April 3, 2022. A reconciliation of the weighted average shares outstanding used in the calculation of basic and diluted income (loss) per common share is as follows (in thousands): Three Months Ended April 2, April 3, 2023 2022 (Unaudited) (Loss) income attributable to stockholders: Net (loss) income as reported $ (175 ) $ 237 Less distributed and undistributed earnings allocable to restricted awarded holders 0 (2 ) Net (loss) income allocable to common stockholders $ (175 ) $ 235 (Loss) income per common share attributable to stockholders: Basic $ (0.01 ) $ 0.01 Diluted $ (0.01 ) $ 0.01 Weighted average shares outstanding – basic 21,796 21,681 Weighted average additional shares assuming conversion of potential common shares 0 994 Weighted average shares outstanding – diluted 21,796 22,675 |
Note 7 - Inventory
Note 7 - Inventory | 3 Months Ended |
Apr. 02, 2023 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | (7) Inventory Inventory consists of the following (in thousands): April 2, December 31, 2023 2022 (Unaudited) Raw materials $ 44,548 $ 36,612 Work in process 8,645 6,585 Finished goods 1,139 802 Reserve for excess and obsolete inventory (1,843 ) (1,866 ) Total $ 52,489 $ 42,133 |
Note 8 - Property, Plant and Eq
Note 8 - Property, Plant and Equipment | 3 Months Ended |
Apr. 02, 2023 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | (8) Property, Plant and Equipment Property, plant and equipment consists of the following (in thousands): April 2, December 31, 2023 2022 (Unaudited) Land and land improvements $ 43 $ 43 Buildings and building improvements 8,257 8,044 Machinery, equipment, furniture and fixtures 69,036 66,037 Construction in progress 2,697 2,048 80,033 76,172 Accumulated depreciation (63,261 ) (60,640 ) $ 16,772 $ 15,532 |
Note 9 - Debt
Note 9 - Debt | 3 Months Ended |
Apr. 02, 2023 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | (9) Debt Long-term obligations consists of the following (in thousands): April 2, December 31, 2023 2022 (Unaudited) Current: Finance lease obligation, current portion $ 1,169 $ 1,102 Equipment financing obligations, current portion 400 398 Note payable – related party, current portion 4,500 2,500 Current portion of long-term debt and finance lease obligations $ 6,069 $ 4,000 Long Term: Finance lease obligation $ 2,410 $ 2,536 Equipment financing obligations 1,430 738 Note payable – related party 2,000 4,000 Less unamortized debt issuance and modification costs (9 ) (11 ) Long-term debt and finance lease obligations, net of unamortized debt costs $ 5,831 $ 7,263 Note Payable – Related Party The Company has received the benefit of cash infusions from Gill Family Capital Management, Inc. (“GFCM”) in the form of secured promissory note obligations totaling $6,500,000 in principal as of April 2, 2023 and December 31, 2022 (the “Note”). 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. As of April 2, 2023, our principal commitment under the Note was $2,500,000 due on April 1, 2023, $2,000,000 on April 1, 2024 and the balance on April 1, 2026. Interest on the promissory note is payable quarterly, and the rate is reset on April 1 of each year, at the greater of 8.0% or 500 basis points above the five-year Treasury note average during the preceding 90-day period, which was 8.8% as of April 2, 2023. The note allows for up to an 18-month deferral of payment for up to 60% of the interest due on the portion of the notes maturing in April of 2023 and 2024. The Company paid $2,500,000 on the Note on April 3, 2023. Obligations under the promissory note are guaranteed by all of the subsidiaries and are secured by a first priority lien on substantially all assets of the Company, including those in Mexico. Finance Lease Obligations As of April 2, 2023, the Company had $3,579,000 outstanding under finance lease obligations for both property and machinery and equipment at its Sypris Technologies locations with maturities through 2026 and a weighted average interest rate of 8.6%. Equipment Financing Obligations As of April 2, 2023, the Company had $1,830,000 outstanding under equipment financing facilities, with effective interest rates ranging from 4.4% to 8.1% and payments due through 2028. Payments on the Company’s equipment financing obligations are due as follows (in thousands): Next 12 months $ 655 12 to 24 months 548 24 to 36 months 373 36 to 48 months 283 48 to 60 months 211 Thereafter 0 Total payments 2,070 Less imputed interest (240 ) Total equipment financing obligations $ 1,830 |
Note 10 - Segment Information
Note 10 - Segment Information | 3 Months Ended |
Apr. 02, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | (10) Segment Data The Company is organized into two business segments, Sypris Technologies and Sypris Electronics. The segments are each managed separately because of the distinctions between the products, markets, customers, technologies, and workforce skills of the segments. Sypris Technologies generates revenue primarily from the sale of forged, machined, welded and heat-treated steel components primarily for the heavy commercial vehicle and high-pressure energy pipeline applications. Sypris Electronics provides circuit card and box build manufacturing, high reliability manufacturing, systems assembly and integration, design for manufacturability and design to specification work to customers in the market for aerospace and defense electronics. There was no intersegment net revenue recognized for any period presented. The Company includes the unallocated costs of its corporate office, including the employment costs of its senior management team and other corporate personnel, administrative costs and net corporate interest expense incurred at the corporate level under the caption “General, corporate and other” in the table below. Such unallocated costs include those for centralized information technology, finance, legal and human resources support teams, certain professional fees, director fees, corporate office rent, certain self-insurance costs and recoveries, software license fees and various other administrative expenses that are not allocated to our reportable segments. The unallocated assets include cash and cash equivalents maintained in its domestic treasury accounts and the net book value of corporate facilities and related information systems. The unallocated liabilities consist primarily of the related party notes payable. Domestic income taxes are calculated at an entity level and are not allocated to our reportable segments. Corporate capital expenditures and depreciation and amortization include items attributable to the unallocated fixed assets of the corporate office and related information systems. The following table presents financial information for the reportable segments of the Company (in thousands): Three Months Ended April 2, April 3, 2023 2022 (Unaudited) Net revenue from unaffiliated customers: Sypris Technologies $ 19,500 $ 17,155 Sypris Electronics 12,792 9,011 Total net revenue $ 32,292 $ 26,166 Gross profit: Sypris Technologies $ 2,639 $ 3,132 Sypris Electronics 1,522 1,377 Total gross profit $ 4,161 $ 4,509 Three Months Ended April 2, April 3, 2023 2022 (Unaudited) Operating income (loss): Sypris Technologies $ 1,161 $ 1,864 Sypris Electronics 562 501 General, corporate and other (1,307 ) (1,245 ) Total operating income $ 416 $ 1,120 Income (loss) before taxes: Sypris Technologies $ 1,023 $ 1,619 Sypris Electronics 532 461 General, corporate and other (1,436 ) (1,377 ) Total income (loss) before taxes $ 119 $ 703 April 2, December 31, 2023 2022 (Unaudited) Total assets: Sypris Technologies $ 42,191 $ 36,875 Sypris Electronics 58,540 47,522 General, corporate and other 15,711 19,747 Total assets $ 116,442 $ 104,144 Total liabilities: Sypris Technologies $ 21,985 $ 19,492 Sypris Electronics 65,050 56,073 General, corporate and other 8,418 9,004 Total liabilities $ 95,453 $ 84,569 |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 3 Months Ended |
Apr. 02, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | (11) 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 consolidated balance sheets as of April 2, 2023 and December 31, 2022 was $723,000 and $690,000, respectively. The Company’s warranty expense for the three months ended April 2, 2023 and April 3, 2022 was not material. The Company bears insurance risk as a member of a group captive insurance entity for certain general liability, automobile and workers’ compensation insurance programs, a self-insured worker’s compensation program 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 is involved in certain litigation and contract issues arising in the normal course of business. While the outcome of these matters cannot, at this time, be predicted in light of the uncertainties inherent therein, management does not expect that these matters will have a material adverse effect on the consolidated financial position or results of operations of the Company. Additionally, the Company believes its product liability insurance is adequate to cover all potential liability claims. The Company accounts for loss contingencies in accordance with U.S. 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. The Company has various current and previously-owned facilities subject to a variety of environmental regulations. The Company has received certain indemnifications from either companies previously owning these facilities or from purchasers of those facilities. Additionally, certain property previously sold by the Company has been designated as a Brownfield Site and is under development by the purchaser. As of April 2, 2023 and December 31, 2022, no amounts were accrued for any environmental matters. On December 27, 2017, the U.S. Department of Labor (the “DOL”) filed a lawsuit alleging that the Company had misinterpreted the language of its Company’s 401(k) Plans (collectively, the “Plan”). The DOL does not appear to dispute that the Company reached such interpretation in good faith and after the Company consulted with independent ERISA counsel. On January 26, 2022, an opinion was issued by the judge indicating that certain of the Plan language in dispute is unambiguous and would therefore limit the Company’s right to interpret such language. Following the denial of motions for summary judgement from the Company and the DOL on April 28, 2022, a hearing took place on September 13, 2022 to review issues raised in the Company’s motion to amend its answer and its proposed counter claim and general next steps for the litigation proceedings, including settlement considerations. Following the hearing the judge issued an order denying the Company’s motion to amend its answer and proposed counter claim and further requested that the parties prepare a joint status report by November 14, 2022 relating to the schedule for the litigation proceedings. While the Company believes that it has affirmative defenses and is continuing to vigorously defend the matter, the Company has engaged in settlement discussions with the DOL. The Company recorded a reserve of $575,000 during the year ended December 31, 2022, and the Company currently estimates the range of possible loss is $0 to $58,000 in excess of the amount reserved. If a settlement is not reached and the DOL’s allegations were subsequently upheld by a court, the Company could be required to make additional contributions into the accounts of its Plan participants and penalties payable to the DOL could be imposed. On February 17, 2017, several employees (“Lucas Plaintiffs”) of KapStone Charleston Kraft, LLC filed a lawsuit in South Carolina alleging that they had been seriously burned when they opened a hinged closure and a hot tar-like material spilled out. Among other claims, the Lucas Plaintiffs allege that Sypris Technologies designed and manufactured the closure, that the closure was defective and that those defects had caused or contributed to their injuries. Sypris Technologies’ motion to dismiss for lack of jurisdiction was denied on February 28, 2020. On November 21, 2022, the Company received a demand for settlement presented by the Lucas Plaintiffs, which was rejected. The Company regards these allegations to be without merit and any potential damages to be undeterminable. As a result, we are currently unable to estimate a loss or range of loss for this matter at this time. The Company’s general liability insurer has accepted the defense costs. The Company is continuing to vigorously defend the matter. In order to reduce manufacturing lead times, the Company enters into agreements with certain suppliers to purchase inventory based on the Company’s requirements. A significant portion of the Company’s purchase commitments arising from these agreements consists of firm and non-cancelable commitments. These purchase commitments totaled $65,431,000 as of April 2, 2023, of which $44,667,000 is for purchases to be made in 2023, $20,415,000 in 2024 and the balance in 2025. |
Note 12 - Income Taxes
Note 12 - Income Taxes | 3 Months Ended |
Apr. 02, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | (12) 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 21% in 2023 and 2022 and for its foreign operations at a statutory rate of 30% in 2023 and 2022. 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 (ASC 740). These temporary differences will result in taxable or deductible amounts in future years when the reported amounts of assets or liabilities are recovered or settled. ASC 740 requires that a valuation allowance be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The Company evaluates its deferred tax position on a quarterly basis and valuation allowances are provided as necessary. During this evaluation, the Company reviews its forecast of income in conjunction with other positive and negative evidence surrounding the realizability of its deferred tax assets to determine if a valuation allowance is needed. Based on the Company’s consideration of all positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations, the Company has established a valuation allowance against all U.S. deferred tax assets. 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. tax benefits. The Company files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. To the Company’s knowledge, the Internal Revenue Service (IRS) is not currently examining the Company’s U.S. income tax returns for 2019 through 2021, for which the statute has yet to expire. During the first quarter of 2023, the Company’s wholly-owned subsidiary in Mexico received a formal tax assessment notice from Mexico’s Federal Tax Administration Service, Servicio de Administracion Tributaria’s (the “SAT”) pertaining to revenue variances and disallowed deductions related to an audit by the SAT of the 2016 tax year. The tax liability for the variances is $20,922,000 Mexican pesos, which includes annual adjustments for inflation, interest and penalties and equals approximately $1,150,000 USD at February 23, 2023. The Mexican subsidiary believes the variances can be substantially eliminated and filed an administrative appeal with the SAT in April 2023 and will further pursue all available legal actions in response to this assessment. No amounts have been accrued, as the Company does not believe a loss is probable. In addition, open tax years related to state and foreign jurisdictions remain subject to examination. |
Note 13 - Employee Benefit Plan
Note 13 - Employee Benefit Plans | 3 Months Ended |
Apr. 02, 2023 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | (13) Employee Benefit Plans The following table details the components of pension (income) expense (in thousands): Three Months Ended April 2, April 3, 2023 2022 (Unaudited) Service cost $ 1 $ 1 Interest cost on projected benefit obligation 210 194 Net amortizations of actuarial loss 140 153 Expected return on plan assets (204 ) (188 ) Net periodic benefit cost $ 147 $ 160 The net periodic benefit cost of the defined benefit pension plans incurred during the three-month periods ended April 2, 2023 and April 3, 2022 are reflected in the following captions in the accompanying consolidated statements of operations (in thousands): Three Months Ended April 2, April 3, 2023 2022 (Unaudited) Service cost: Selling, general and administrative expenses $ 1 $ 1 Other net periodic benefit costs: Other expense, net 146 159 Total $ 147 $ 160 |
Note 14 - Accumulated Other Com
Note 14 - Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 02, 2023 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | (14) 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): April 2, December 31, 2023 2022 (Unaudited) Foreign currency translation adjustments $ (9,085 ) $ (10,458 ) Employee benefit related adjustments – U.S., net of tax (10,488 ) (10,488 ) Employee benefit related adjustments – Mexico, net of tax 101 101 Accumulated other comprehensive loss $ (19,472 ) $ (20,845 ) |
Note 15 - Fair Value of Financi
Note 15 - Fair Value of Financial Instruments | 3 Months Ended |
Apr. 02, 2023 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | (15) 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 April 2, 2023 approximates fair value, and is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments (Level 2). |
Note 4 - Leases (Tables)
Note 4 - Leases (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended April 2, April 3, 2023 2022 (Unaudited) Finance lease expense: Amortization expense $ 177 $ 149 Interest expense 76 91 Operating lease expense 351 351 Variable lease expense 85 85 Total lease expense $ 689 $ 676 |
Supplemental Cash Flow Information Related to Leases [Table Text Block] | Three Months Ended April 2, April 3, 2023 2022 (Unaudited) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 444 $ 428 Operating cash flows from finance leases 76 103 Financing cash flows from finance leases 271 238 |
Lessee, Operating and Finance Lease, Liability, Maturity [Table Text Block] | Operating Finance Leases Leases Next 12 months $ 1,514 $ 1,429 12 to 24 months 1,244 1,339 24 to 36 months 1,164 1,183 36 to 48 months 828 130 48 to 60 months 631 0 Thereafter 0 0 Total lease payments 5,381 4,081 Less imputed interest (787 ) (502 ) Total $ 4,594 $ 3,579 |
Lease Terms and Discount Rates for Leases [Table Text Block] | April 2, December 31, 2023 2022 (Unaudited) Weighted-average remaining lease term (years): Operating leases 4.2 4.4 Finance leases 2.8 3.0 Weighted-average discount rate (percentage): Operating leases 8.0 8.0 Finance leases 8.6 8.5 |
Note 5 - Revenue From Contrac_2
Note 5 - Revenue From Contracts With Customers (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | April 2, April 3, 2023 2022 (Unaudited) Sypris Technologies – transferred point in time $ 19,500 $ 17,155 Sypris Electronics – transferred point in time 4,489 1,953 Sypris Electronics – transferred over time 8,303 7,058 Net revenue $ 32,292 $ 26,166 |
Note 6 - (Loss) Income Per Co_2
Note 6 - (Loss) Income Per Common Share (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended April 2, April 3, 2023 2022 (Unaudited) (Loss) income attributable to stockholders: Net (loss) income as reported $ (175 ) $ 237 Less distributed and undistributed earnings allocable to restricted awarded holders 0 (2 ) Net (loss) income allocable to common stockholders $ (175 ) $ 235 (Loss) income per common share attributable to stockholders: Basic $ (0.01 ) $ 0.01 Diluted $ (0.01 ) $ 0.01 Weighted average shares outstanding – basic 21,796 21,681 Weighted average additional shares assuming conversion of potential common shares 0 994 Weighted average shares outstanding – diluted 21,796 22,675 |
Note 7 - Inventory (Tables)
Note 7 - Inventory (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | April 2, December 31, 2023 2022 (Unaudited) Raw materials $ 44,548 $ 36,612 Work in process 8,645 6,585 Finished goods 1,139 802 Reserve for excess and obsolete inventory (1,843 ) (1,866 ) Total $ 52,489 $ 42,133 |
Note 8 - Property, Plant and _2
Note 8 - Property, Plant and Equipment (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | April 2, December 31, 2023 2022 (Unaudited) Land and land improvements $ 43 $ 43 Buildings and building improvements 8,257 8,044 Machinery, equipment, furniture and fixtures 69,036 66,037 Construction in progress 2,697 2,048 80,033 76,172 Accumulated depreciation (63,261 ) (60,640 ) $ 16,772 $ 15,532 |
Note 9 - Debt (Tables)
Note 9 - Debt (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Notes Tables | |
Schedule of Long-Term Debt Instruments [Table Text Block] | April 2, December 31, 2023 2022 (Unaudited) Current: Finance lease obligation, current portion $ 1,169 $ 1,102 Equipment financing obligations, current portion 400 398 Note payable – related party, current portion 4,500 2,500 Current portion of long-term debt and finance lease obligations $ 6,069 $ 4,000 Long Term: Finance lease obligation $ 2,410 $ 2,536 Equipment financing obligations 1,430 738 Note payable – related party 2,000 4,000 Less unamortized debt issuance and modification costs (9 ) (11 ) Long-term debt and finance lease obligations, net of unamortized debt costs $ 5,831 $ 7,263 |
Finance Lease, Liability, to be Paid, Maturity [Table Text Block] | Next 12 months $ 655 12 to 24 months 548 24 to 36 months 373 36 to 48 months 283 48 to 60 months 211 Thereafter 0 Total payments 2,070 Less imputed interest (240 ) Total equipment financing obligations $ 1,830 |
Note 10 - Segment Information (
Note 10 - Segment Information (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended April 2, April 3, 2023 2022 (Unaudited) Net revenue from unaffiliated customers: Sypris Technologies $ 19,500 $ 17,155 Sypris Electronics 12,792 9,011 Total net revenue $ 32,292 $ 26,166 Gross profit: Sypris Technologies $ 2,639 $ 3,132 Sypris Electronics 1,522 1,377 Total gross profit $ 4,161 $ 4,509 Three Months Ended April 2, April 3, 2023 2022 (Unaudited) Operating income (loss): Sypris Technologies $ 1,161 $ 1,864 Sypris Electronics 562 501 General, corporate and other (1,307 ) (1,245 ) Total operating income $ 416 $ 1,120 Income (loss) before taxes: Sypris Technologies $ 1,023 $ 1,619 Sypris Electronics 532 461 General, corporate and other (1,436 ) (1,377 ) Total income (loss) before taxes $ 119 $ 703 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | April 2, December 31, 2023 2022 (Unaudited) Total assets: Sypris Technologies $ 42,191 $ 36,875 Sypris Electronics 58,540 47,522 General, corporate and other 15,711 19,747 Total assets $ 116,442 $ 104,144 Total liabilities: Sypris Technologies $ 21,985 $ 19,492 Sypris Electronics 65,050 56,073 General, corporate and other 8,418 9,004 Total liabilities $ 95,453 $ 84,569 |
Note 13 - Employee Benefit Pl_2
Note 13 - Employee Benefit Plans (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Three Months Ended April 2, April 3, 2023 2022 (Unaudited) Service cost $ 1 $ 1 Interest cost on projected benefit obligation 210 194 Net amortizations of actuarial loss 140 153 Expected return on plan assets (204 ) (188 ) Net periodic benefit cost $ 147 $ 160 |
Net Periodic Benefit Cost Recognized in Income Statement [Table Text Block] | Three Months Ended April 2, April 3, 2023 2022 (Unaudited) Service cost: Selling, general and administrative expenses $ 1 $ 1 Other net periodic benefit costs: Other expense, net 146 159 Total $ 147 $ 160 |
Note 14 - Accumulated Other C_2
Note 14 - Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Notes Tables | |
Schedule of Stockholders Equity [Table Text Block] | April 2, December 31, 2023 2022 (Unaudited) Foreign currency translation adjustments $ (9,085 ) $ (10,458 ) Employee benefit related adjustments – U.S., net of tax (10,488 ) (10,488 ) Employee benefit related adjustments – Mexico, net of tax 101 101 Accumulated other comprehensive loss $ (19,472 ) $ (20,845 ) |
Note 1 - Nature of Business (De
Note 1 - Nature of Business (Details Textual) | 3 Months Ended |
Apr. 02, 2023 | |
Number of Operating Segments | 2 |
Note 4 - Leases (Details Textua
Note 4 - Leases (Details Textual) - USD ($) | Apr. 02, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Renewal Term | 5 years | |
Operating Lease, Right-of-Use Asset | $ 4,072,000 | $ 4,251,000 |
Operating Lease, Liability, Total | $ 4,594,000 | $ 4,878,000 |
Minimum [Member] | ||
Lessee, Operating Lease, Term of Contract | 10 years | |
Maximum [Member] | ||
Lessee, Operating Lease, Term of Contract | 11 years |
Note 4 - Leases - Lease Expense
Note 4 - Leases - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Amortization expense | $ 177 | $ 149 |
Interest expense | 76 | 91 |
Operating lease expense | 351 | 351 |
Variable lease expense | 85 | 85 |
Total lease expense | $ 689 | $ 676 |
Note 4 - Leases - Supplemental
Note 4 - Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Operating cash flows from operating leases | $ 444 | $ 428 |
Operating cash flows from finance leases | 76 | 103 |
Financing cash flows from finance leases | $ 271 | $ 238 |
Note 4 - Leases - Maturities of
Note 4 - Leases - Maturities of Lease Liabilities (Details) - USD ($) | Apr. 02, 2023 | Dec. 31, 2022 |
Next 12 months, operating leases | $ 1,514,000 | |
12 to 24 months, operating leases | 1,244,000 | |
24 to 36 months, operating leases | 1,164,000 | |
36 to 48 months, operating leases | 828,000 | |
48 to 60 months, operating leases | 631,000 | |
Thereafter, operating leases | 0 | |
Total lease payments, operating leases | 5,381,000 | |
Less imputed interest, operating leases | (787,000) | |
Total, operating leases | 4,594,000 | $ 4,878,000 |
Finance Leases Excluding Equipment Financing Obligations [Member] | ||
Next 12 months, finance leases | 1,429,000 | |
12 to 24 months, finance leases | 1,339,000 | |
24 to 36 months, finance leases | 1,183,000 | |
36 to 48 months, finance leases | 130,000 | |
48 to 60 months, finance leases | 0 | |
Thereafter, finance leases | 0 | |
Total lease payments, finance leases | 4,081,000 | |
Less imputed interest, finance leases | (502,000) | |
Total, finance leases | $ 3,579,000 |
Note 4 - Leases - Information R
Note 4 - Leases - Information Related to Lease Terms and Discount Rates (Details) | Apr. 02, 2023 | Dec. 31, 2022 |
Operating leases (Year) | 4 years 2 months 12 days | 4 years 4 months 24 days |
Finance leases (Year) | 2 years 9 months 18 days | 3 years |
Operating leases | 8% | 8% |
Finance leases | 8.60% | 8.50% |
Note 5 - Revenue From Contrac_3
Note 5 - Revenue From Contracts With Customers 1 (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended |
Apr. 02, 2023 | Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Amount | $ 105,882,000 | |
Contract with Customer, Liability | 47,851,000 | $ 40,391,000 |
Contract with Customer, Liability, Revenue Recognized from Contract Liabilities | 3,812,000 | 3,317,000 |
Other Current Assets [Member] | ||
Contract with Customer, Asset, after Allowance for Credit Loss, Current | 3,268,000 | 2,393,000 |
Accrued Liabilities [Member] | ||
Contract with Customer, Liability, Current | 30,336,000 | 27,909,000 |
Other Noncurrent Liabilities [Member] | ||
Contract with Customer, Liability, Noncurrent | $ 17,515,000 | $ 12,482,000 |
Note 5 - Revenue From Contrac_4
Note 5 - Revenue From Contracts With Customers 2 (Details Textual) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-03 | Apr. 02, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Percentage | 44% |
Note 5 - Revenue From Contrac_5
Note 5 - Revenue From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Net revenue | $ 32,292 | $ 26,166 |
Sypris Technologies [Member] | ||
Net revenue | 19,500 | 17,155 |
Sypris Technologies [Member] | Transferred at Point in Time [Member] | ||
Net revenue | 19,500 | 17,155 |
Sypris Electronics [Member] | ||
Net revenue | 12,792 | 9,011 |
Sypris Electronics [Member] | Transferred at Point in Time [Member] | ||
Net revenue | 4,489 | 1,953 |
Sypris Electronics [Member] | Transferred over Time [Member] | ||
Net revenue | $ 8,303 | $ 7,058 |
Note 6 - (Loss) Income Per Co_3
Note 6 - (Loss) Income Per Common Share (Details Textual) | 3 Months Ended |
Apr. 02, 2023 shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 252,839 |
Note 6 - (Loss) Income Per Co_4
Note 6 - (Loss) Income Per Common Share - Reconciliation of Weighted Average Shares Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Net (loss) income | $ (175) | $ 237 |
Less distributed and undistributed earnings allocable to restricted awarded holders | 0 | (2) |
Net (loss) income allocable to common stockholders | $ (175) | $ 235 |
Basic (in dollars per share) | $ (0.01) | $ 0.01 |
Diluted (in dollars per share) | $ (0.01) | $ 0.01 |
Basic (in shares) | 21,796 | 21,681 |
Weighted average additional shares assuming conversion of potential common shares (in shares) | 0 | 994 |
Weighted average shares outstanding – diluted (in shares) | 21,796 | 22,675 |
Note 7 - Inventory - Inventory
Note 7 - Inventory - Inventory Components (Details) - USD ($) $ in Thousands | Apr. 02, 2023 | Dec. 31, 2022 |
Raw materials | $ 44,548 | $ 36,612 |
Work in process | 8,645 | 6,585 |
Finished goods | 1,139 | 802 |
Reserve for excess and obsolete inventory | (1,843) | (1,866) |
Total | $ 52,489 | $ 42,133 |
Note 8 - Property, Plant and _3
Note 8 - Property, Plant and Equipment - Property, Plant and Equipment Components (Details) - USD ($) $ in Thousands | Apr. 02, 2023 | Dec. 31, 2022 |
Gross property, plant and equipment | $ 80,033 | $ 76,172 |
Accumulated depreciation | (63,261) | (60,640) |
Property, Plant and Equipment, Net | 16,772 | 15,532 |
Land and Land Improvements [Member] | ||
Gross property, plant and equipment | 43 | 43 |
Building and Building Improvements [Member] | ||
Gross property, plant and equipment | 8,257 | 8,044 |
Property, Plant and Equipment, Other Types [Member] | ||
Gross property, plant and equipment | 69,036 | 66,037 |
Construction in Progress [Member] | ||
Gross property, plant and equipment | $ 2,697 | $ 2,048 |
Note 9 - Debt (Details Textual)
Note 9 - Debt (Details Textual) - USD ($) | 3 Months Ended | ||
Apr. 03, 2023 | Apr. 02, 2023 | Dec. 31, 2022 | |
Machinery at Sypris Technologies Facility [Member] | |||
Finance Lease, Liability | $ 3,579,000,000,000 | ||
Machinery at Sypris Technologies Facility [Member] | Finance Lease Obligations [Member] | |||
Debt, Weighted Average Interest Rate | 8.60% | ||
Promissory Notes with Maturity on April 1, 2021 and April 1, 2023 [Member] | Gill Family Capital Management [Member] | |||
Subordinated Debt, Ending Balance | $ 6,500,000 | $ 6,500,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 8.80% | ||
Debt Instrument, Allowance for Payment Deferral Period (Month) | 18 months | ||
Debt Instrument, Maximum Allowance of Interest Due on Deferred Payments, Percent | 60% | ||
Promissory Notes with Maturity on April 1, 2021 and April 1, 2023 [Member] | Gill Family Capital Management [Member] | Minimum [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | 8% | ||
Promissory Note with Maturity on April 1, 2023 [Member] | Gill Family Capital Management [Member] | |||
Subordinated Debt, Ending Balance | $ 2,500,000 | ||
Repayments of Subordinated Debt | $ 2,500,000 | ||
Promissory Notes with Maturity on April 1, 2024 [Member] | Gill Family Capital Management [Member] | |||
Subordinated Debt, Ending Balance | $ 2,000,000 | ||
Promissory Note [Member] | Gill Family Capital Management [Member] | Minimum [Member] | Five-year Treasury Note Average During Preceding 90-day Period [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 5% | ||
Equipment Financing Obligations [Member] | |||
Finance Lease, Liability | $ 1,830,000 | ||
Long-Term Debt | $ 1,830,000,000,000 | ||
Equipment Financing Obligations [Member] | Minimum [Member] | |||
Debt Instrument, Interest Rate, Effective Percentage | 4.40% | ||
Equipment Financing Obligations [Member] | Maximum [Member] | |||
Debt Instrument, Interest Rate, Effective Percentage | 8.10% |
Note 9 - Debt - Debt Components
Note 9 - Debt - Debt Components (Details) - USD ($) $ in Thousands | Apr. 02, 2023 | Dec. 31, 2022 |
Finance lease obligations, current portion | $ 1,169 | $ 1,102 |
Equipment financing obligations, current portion | 400 | 398 |
Note payable – related party, current portion | 4,500 | 2,500 |
Current portion of long-term debt and finance lease obligations | 6,069 | 4,000 |
Finance lease obligations, net of current portion | 2,410 | 2,536 |
Equipment financing obligations | 1,430 | 738 |
Note payable – related party | 1,991 | 3,989 |
Less unamortized debt issuance and modification costs | (9) | (11) |
Long-term debt and finance lease obligations, net of unamortized debt costs | 5,831 | 7,263 |
Related Party [Member] | ||
Note payable – related party, current portion | 4,500 | 2,500 |
Note payable – related party | $ 2,000 | $ 4,000 |
Note 9 - Debt - Maturities of E
Note 9 - Debt - Maturities of Equipment Financing Obligations (Details) - Equipment Financing Obligations [Member] $ in Thousands | Apr. 02, 2023 USD ($) |
Next 12 months | $ 655 |
12 to 24 months | 548 |
24 to 36 months | 373 |
36 to 48 months | 283 |
48 to 60 months | 211 |
Thereafter | 0 |
Total lease payments, finance leases | 2,070 |
Less imputed interest, finance leases | (240) |
Total, finance leases | $ 1,830 |
Note 10 - Segment Information_2
Note 10 - Segment Information (Details Textual) $ in Thousands | 3 Months Ended |
Apr. 02, 2023 USD ($) | |
International Operation [Member] | |
Export Sales | $ 0 |
Note 10 - Segment Information -
Note 10 - Segment Information - Financial Information From Reportable Segments - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Net revenue from unaffiliated customers | $ 32,292 | $ 26,166 |
Sypris Technologies | 416 | 1,120 |
Gross profit (loss) | 4,161 | 4,509 |
Sypris Technologies | 119 | 703 |
Sypris Technologies [Member] | ||
Net revenue from unaffiliated customers | 19,500 | 17,155 |
Sypris Technologies | 1,161 | 1,864 |
Gross profit (loss) | 2,639 | 3,132 |
Sypris Technologies | 1,023 | 1,619 |
Sypris Electronics [Member] | ||
Net revenue from unaffiliated customers | 12,792 | 9,011 |
Sypris Technologies | 562 | 501 |
Gross profit (loss) | 1,522 | 1,377 |
Sypris Technologies | 532 | 461 |
Corporate and Other [Member] | ||
Sypris Technologies | (1,307) | (1,245) |
Sypris Technologies | $ (1,436) | $ (1,377) |
Note 10 - Segment Information_3
Note 10 - Segment Information - Financial Information From Reportable Segments - Balance Sheet (Details) - USD ($) $ in Thousands | Apr. 02, 2023 | Dec. 31, 2022 |
Operating income (loss) | $ 116,442 | $ 104,144 |
Income (loss) before taxes | 95,453 | 84,569 |
Sypris Technologies [Member] | ||
Operating income (loss) | 42,191 | 36,875 |
Income (loss) before taxes | 21,985 | 19,492 |
Sypris Electronics [Member] | ||
Operating income (loss) | 58,540 | 47,522 |
Income (loss) before taxes | 65,050 | 56,073 |
Corporate and Other [Member] | ||
Operating income (loss) | 15,711 | 19,747 |
Income (loss) before taxes | $ 8,418 | $ 9,004 |
Note 11 - Commitments and Con_2
Note 11 - Commitments and Contingencies (Details Textual) - USD ($) | Apr. 02, 2023 | Dec. 31, 2022 |
Standard and Extended Product Warranty Accrual | $ 723,000 | $ 690,000 |
Accrual for Environmental Loss Contingencies, Ending Balance | 0 | $ 0 |
Inventories [Member] | ||
Purchase Obligation | 65,431,000 | |
Purchase Obligation, to be Paid, Year One | 44,667,000 | |
Purchase Obligation, to be Paid, Year Two | 20,415,000 | |
DOL [Member] | ||
Estimated Litigation Liability | 575,000 | |
DOL [Member] | Minimum [Member] | ||
Loss Contingency, Estimate of Possible Loss | 0 | |
DOL [Member] | Maximum [Member] | ||
Loss Contingency, Estimate of Possible Loss | $ 58,000 |
Note 12 - Income Taxes (Details
Note 12 - Income Taxes (Details Textual) | 3 Months Ended | |||
Feb. 23, 2023 USD ($) | Feb. 23, 2023 MXN ($) | Apr. 02, 2023 | Apr. 03, 2022 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | ||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 30% | 30% | ||
Foreign Tax Authority [Member] | Mexican Tax Authority [Member] | ||||
Tax Assessment of the Company | $ 1,150,000 | $ 20,922,000 |
Note 13 - Employee Benefit Pl_3
Note 13 - Employee Benefit Plans - Components of Pension Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Service cost | $ 1 | $ 1 |
Interest cost on projected benefit obligation | 210 | 194 |
Net amortizations of actuarial loss | 140 | 153 |
Expected return on plan assets | (204) | (188) |
Net periodic benefit cost | $ 147 | $ 160 |
Note 13 - Employee Benefit Pl_4
Note 13 - Employee Benefit Plans - Net Periodic Benefit Cost Recognized in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Selling, general and administrative expenses | $ 1 | $ 1 |
Other expense, net | 146 | 159 |
Total | $ 147 | $ 160 |
Note 14 - Accumulated Other C_3
Note 14 - Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Apr. 02, 2023 | Dec. 31, 2022 |
Foreign currency translation adjustments | $ (9,085) | $ (10,458) |
Accumulated other comprehensive loss | (19,472) | (20,845) |
UNITED STATES | ||
Employee benefit related adjustments – U.S., net of tax | (10,488) | (10,488) |
Foreign Plan [Member] | ||
Employee benefit related adjustments – U.S., net of tax | $ 101 | $ 101 |