Recent SYPR transcripts
Associated SYPR filings
Jeffrey Gill | Chairman, President & Chief Executive Officer |
Tony Allen | Vice President & Chief Financial Officer |
Good day and welcome to the Sypris Solutions, Inc. Conference Call. Today's call is being recorded. At this time, for opening remarks, I would like to turn the call over to the President and Chief Executive Officer, Mr. Jeffrey Gill. sir. ahead, go Please
results and to everyone. call, welcome is company's of Alyssa, XXXX. quarter I the Allen would which financial the review like you to the good you, second Tony of morning, and purpose for Thank to this
Securities advance you these please projections calls what note some Slide those with this statements of our we actual presentation measures call. We sypris.com Regulation to statements. achieved No given projected forward-looking will be access projections any of here factors and other include as have And a at and results who For in X today factors. G, might those non-GAAP to of now. our access PowerPoint financial can morning, be the These to begin website may be and these from discuss during are always several differ that may assurance could a that included you result and the company's can Exchange review compliance materially this Commission. with definitions discussed of in that the with filings
of our quarter. review the of detailed Tony markets. primary will this you With to the followed be you half overview a these the we'd then now I business discussion. the more like through outlook highlights will results mind, of morning, quarter presentation for Please starting advance for qualifications with financial of Slide X. proceed our by with an first each to for with on to provide our in update the lead an the
our others. practices the taken virus, number for to and which address and Disease Control, best of the Sypris. OSHA of a just taken environment, in to work of private activities a X, of actions COVID-XX on ensure Slide include on by steps current many however, the public recommended we Before safe these a like I'd the We've potential light impact take moment especially discuss environment, and being to to begin Center
be Travel of check visitors and spacing has We at have emphasized, both have facilities. on-site sizes work reduced, our become to hygiene professionals before gathering be medical to incoming into and has service campus to continues increased, and admitting our been them been limited, at employees, both been has home. and our to at largest any
suggestions We are to and additional providing employees take. requesting that feedback with we steps regular while their with updates might regard
the of of We occurs are the majority personal actually discussing confines responsibility, that their the importance outside of day recognizing of Sypris.
underlying be any the substantial specific at an virus. he We are age of consideration place otherwise to or she or such should risk happens employee that with or special also other individual for who the providing conditions, an respiratory, would contract pulmonary
continue a suppliers basis. with customers monitor We and our daily both to on the our to situation
vehicle and April their automotive while for of months and customers certain had the solid. the During and/or closed reduce at weeks commercial and communication demand; we've remained May, rock a markets defense time
dynamic change the trough circumstances rapidly. us is the sense and certainly is is environment Our may but behind
while customers, meeting will we their environment our and have a for We the employees focus our to to working to commitments on continue provide made safe families.
of in for with Sypris result serve offset purchases much commercial efforts otherwise Now, have a closure The quarter. of diversification decreased as the begin XX.X% and that lower let's major challenging a what sequentially, customer served of overview reduce shipments X. XX.X% to on Slide year-over-year defense, and automotive to energy communications the plants temporary softening and very Revenue in Technologies. from customers April success May role would customers. in from and markets a been our vehicle played Demand the
though Revenue strong communication XX.X% in half customer the plays and fall. by profit as strong expansion for sequentially witnessed demand from Sypris Electronics current the Electronics increase in a much increased out for continued of basis these demand caution markets. the the XXX in degree Sypris reflecting how margin. June year-over-year of The and markets surpassed the defense second in mentioned improved customers of Fortunately, certainly wait previously. reopening period, gross pandemic outlook to and warrant the and sales [ph]. XX% have the The We'll XXXX by during in XX.X% the performance and was return month operations gross see of the the the point is is of
results margin the decline for gross in despite benefited the the with quarter of period. during Our consolidated topline XX.X% the
of for begin And with the during received [ph] for situated Naval cash, in awards. DRS, announced Electronics; on sale jobs, and Field in funding our for skilled XXXX. reducing Mountain and we for contract As generated we XX-year-old this [ph] preserve quarter and new closures. acres approximately radar Canada. was Pipeline closures, our of double-bolt financing last from million seal-off The - to end, to Kentucky, that $X.X announced we At we Expansion three Sypris April, facility call, we production used of have May, vital turn work contract Brazil, pressure the tracking million This the since it CARES in ultra-high added orders the will its to tube Electronics, will Libra in benefit to Sypris Trans Project completed Paycheck November system have Technologies, manufacturing company's forward. $X.X many Louisville, test Oil the We expenses Program scheduled electronic closed used which of stranded Protection announced going of At XX contract review been the Western we former the at the manufacturing under subsequent in XXXX. you award enabled discussed during initial Leonardo was plant of is assemblies secured we we Act. operating In shortly. we'll the land under
more talk awards these will about We important momentarily.
Sypris Electronics units; Slide on with a Now, let's starting each the our of at of look take performance X. business
period past. levels, and for mentioned increased during ago, I increased while a it year-over-year the of year line, The for of since growth, while ago sequentially. XX.X% stepped periodically not XX.X% orders Sales of revenue strong December As as backlog moment the did XX.X% XXXX. XXXX company's from Sypris half the Electronics XX.X% availability to increased in components hinder has backlog first the has up top the are of
book during quarter, margin points financial increased of from on a Our basis basis. up XXX into and of on sequentially. suit business the now both, key margin expanding gross points well leverage as XXX followed basis Gross with these provided significantly sequential year-over-year the to XX.X% sales, and well profit a Operating benefited year-over-year, and expanding extends by XXXX. each metrics
was to communications and this for and subsequent for announced defense Electronics business. of from DRS and meet needs. to essential we the as expand positive In their Leonardo are short, receipt Sypris to remain quarter certainly continue future supplier our Leonardo moment shipboard customer. the initial look tracking we mentioned system. important for ago, to industry Electronics relationship a as with Electronics, in electronic almost to quarter this pleased assemblies and we I DRS all Naval an customers As it is Sypris an hard our positive industries, test respects, radar we work vital a Electronics will in in manufacture And to end, an a Naval to the award contract leader
our the our to customer their up morale as time and related both, is during April maintenance We thing going all during customers basis, automotive also very since capabilities. [ph] quarter. our subsequently use Asia and the to to of substantially to improved is we of remained to their positive. outlook comparable of period the Result the products reopening made locations do of energy Sypris on to open pared the as softened Slide have Revenue perform demand months was imagine; our to pandemic. has from commercial positive the and operations markets Act. the forward on and during in the period our turn improve Technologies are CARES despite the expand and a began back customers response temporary customers businesses our been vehicle people to been ability the June range the by from of around Permian the operations customers, retained that Sales and in demand. let's and thankful right performance our review well. the and the substantially closure Basin closed the was we reduction skills performing during May. X have by might At the train of you reflecting productivity much kept possible declined world, preventative to Sypris, and has Now, The clearly and sequential in are operational do very to Southeast These This or specialty and return Kazakhstan since. workforce It we it.
remained it year-to-date is which that circumstances. the incredible worth on that basis Technologies also is think has I profitable, noting a Sypris feat an under
team has done content. a activity of American business very companies this under to development challenging Our circumstance. increase job their continue in great From an deal business experience standpoint, North outstanding as to a we simply look sourcing
barrels the technology. ensure take the that terms between that products $XX of In these day to opportunities, supplier critical markets, of we such, ultra-deepwater sectors, and is necessary and on they the the closures produce award been customers Subsequent as Technologies oil world's XX The Sypris Canada. It are quarter to X.X and of with Field of of of cost in continue be orders discoveries estimated essential whatever customers over to X.X for further should is customers and and be at to diversifying energy as deep, oil the As Brazil business, both our development in our to by has the end, also evaluate that will for Brazil, supplied case new million focus transportation noted designated of feet largest in to up barrels are Libra XXXX, the we expected our one XXX continues our with need. we projects announced billion an and an Oil located to steps per project containing project billion. oil. in
of West markets. shipment be this per XXX,XXX In XX,XXX for Expansion to barrels the will XXX of transport Canada's The Canada, specialty to Pipeline oil miles world project closures We estimated can is will to handle billion. pipeline XX-inch cost to $XX.X Trans Project PSI. for approximating Coast, project that day providing add pressure Mountain
be do closures diameter, will inches of as ease failure excellent XX automated demanding from for high type to work size two of serve projects be These that we world. the for opening. the ranging will providing of around inches applications XX cost in of We in examples
that discussed years. several we past call, last the over mix place have our market the changes our taken During in
of our Slide expect note, sales, XX% revenue XX% Turning of expected XXXX. now defense commercial we to customers to the up please business, XX% from to total sales now while down X; vehicle XX% in XXXX exceed year, from from represent electronics last are in to that
vehicle Some for concentrated may in recall represented with of that revenue, highly of even sales XXXX, were you and commercial customers. these two XX%
and We served more served diversification both both in have much the customer today, terms balanced well markets and concentration. terms during pandemic, This a margin. in of of business us volume has
technical this expect Looking margins to to reflecting and pursue exist to services. additional that to from continuing requirements, while away forward, we move further will aggressively our diversify we expand further products business, We and and believe increased commodity opportunities outcome. continue value-add
especially with to U.S. our programs to run major many, are to spending DoD review the regard outlook expected military for each Now solid long-term expanding, to of Slide continues markets. let's to for key years. spending many strategic that X remain with turn
recent increased the that that has the event. another resumed will all Time be terrain in vehicle, backlog have XXXX from will programs will we tell, the in and by the the significantly course is, commercial the key growth recovered shutdown believe trucking with months, top for economy. In Our the our for remains the the but year-end specialty increased in or either prepared we're customers off-highway second will question have long-term, we [ph] benefit current and in margins but the economy well materially, The June, it XX.X% implemented line. that automotive, believe since improved somewhat this and producers in stimulus in outlook year. during of Demand benchmark uncertain. outlook sector from half for been has oil last the significantly. crude of oil has In significantly price near-term there
domestic natural to to pipelines the conversion construction market, of as the gas, terminals energy and generation and Within source to broad opportunity well the the LNG power front. however, be export Sypris a both support international of for activities, as on of continues
of half future the economy has positioned sustained reliably first for once the been meet continue to are their a success circumstances, families, interim, open remains basis. new We XXXX our Our we data to during we believe to the of solid, responsive and the on the performance the especially must well it to working under we'll that and customers. needs as agile we've be remain commitments our will while employees safety made and hard to develops. responsive In
now lead Tony? this of morning. you Allen will Turning Slide our Tony the presentation to X, balance through
favorable reflect impact being the consolidated Consolidated adversely Thanks, XX.X% basis dropped Sypris the during quarter prior Jeff, to and morning, the the QX. to XXX discuss of highlights considerably the demand profit $X of profitability second from impacted in and by a results. $XX.X a financial numbers on $XXX,XXX was QX, XX.X% comparative in million our Electronics had Slide Please with results last like Electronics Technologies margin good demand sequentially. million, expanding offset to for The lower increase Conversely, revenue year, of revenue I'd of some with gross gross for periods as Sypris Sypris reported gross decrease XX. for profit, everyone. COVID-XX for a our the with second XX.X% advance Sypris QX points you of the Technologies. of decrease quarter lower a from both year, quarter.
effort will margin to previous in economy was the Sypris during QX, year on begins returned Technologies cost rather we gives for a compared confidence upside Electronics manage downturn, at back us While track of Sypris gross consolidated team coupled entire get to by achieved economic with as XX.X% a the impressive and QX, the severe profitability recover. to down by the
COVID-XX and reflects expense decrease million a hiring pandemic. prior fees reduce was SG&A reduction include suspended our $XXX,XXX senior primarily $X.X QX, COVID-XX to management and year. actions spend QX approximately certain SG&A Board to of in paid are actions spending Sypris the discretionary in corporate consolidated by moving better costs. visibility The we see a demand. economy areas the on QX, have the reductions the reduced of place expected and to and decrease for impact results customer Consolidated to and income response direction other to remain The Directors, of Cost $XXX,XXX until driven for lower travel spend, leadership measures CEO other for sequentially, of to compensation operating reducing activities, our Our from of personnel, loss $XXX,XXX in in the controllable fell by Technologies. related in the right of
segment over However, or consolidated the million, to points first after continuous to improved and consolidated this operating return we QX revenue half third Consolidated the Electronics an advance XXXX our difficult began months quarter, expect Technologies our follows showing million June. in prior our driven Please business margin $XX.X to in first and million favorable reflects first will profitability for half improved this year. improvement enable $X.X was over margin revenue, XX. gross Slide The $XX.X XXX decrease theme the of the improvement for reporting growth Sypris the the XX% generated half the second half of which of efforts by basis drop mix to down rebound in for demand with first associated diversification XXXX. The efficiencies, outlook QX, the profit in segment April is Despite initiatives. and Sypris with and of The period in $X.X of comparison an for the currently May, month quarter. from increase million. for being the a
improvements Driven Sypris the of the by in operating is for and to segment expected for XX.X% the the for balance QX include for year, strength at this the of gross mid-teens margin at profitability gross results, of half the lines. the stay and and results revenue income of half in profit XX.X% the year. First Electronics growth is first
drop, vehicle entered cyclical the our decline. market commercial period customers as we X would from Class As a market of the had we demand expected entered year,
and amplified quarter. Sypris markets this decline hit second COVID-XX our during well However, for the expected as other Technologies
down expected in positive. XX% operating the If year, the basis in year-to-date Although revenue the nearly margins for first operating from with a for half, at half's first prior segment gross from margin well on our and XX.X% is is this is pre-COVID demand level quarterly to QX Technologies as expand line and deliver rebounds Sypris is QX. from positioned margins income results
prior COVID the XXXX, expense a decrease in year. the QX Our in was previous consolidated with SG&A of million $X on outbreak, of were half spending the reflected response Certain the the full late QX. reductions from for the side million to discussed in first implemented of impact $X.X
Additionally, system in half half during $XXX,XXX, the operating to setback the the implementation for related fees not year. were income current incurred XXXX, first Sypris due of for and ERP we COVID-XX. consulting new costs certain of first negative incurred the Consolidated to from a those Electronics QX the is
represents this of XX% revenue. million decline an year-over-year, However, the in despite $X.X improvement
we are for of the on pleased XX. driven Slide advance Given half focused by to year, imposed and performance achieving business the COVID-XX, remain the with our first challenges over but XXXX. profitability in the Please
first program and for sport revenue. take to began look a X last will and in two its quarters launches QX The quarterly utility downturn the commercial our started vehicle at consolidated revenue contributing XXXX. of year, Technologies Class market trend quick Sypris components and We new for at of XXXX automotive
from million Sypris to for The $X.X a began $X.X QX improved to XXXX. Electronics in in on QX year-over-year decline last to to quarters increased XX.X% COVID-XX revenue QX in million, Additionally, increased have allowed four The and Sypris XXXX March. revenue increase revenue million, $X.X million segment the component from of remained Technologies late of drove electronic backlog in revenue. sequentially of $X.X COVID-XX QX healthy. impact impacting revenue, availability This as before segment
Sypris and the second QX this rebound for for segment half June, a since point, saw The volume. start represents quarter this at shows revenue highest outlook second the to Technologies XXXX. improvement in the from considerable demand the
offset we cyclical four advance slide, of program with the our is to over performance decline X the new half recent QX margin margin the in years, our this trend the levels partially contribute the expected The Slide will we COVID-XX gross year. contributed show first XX.X% drop well the last On the two revenue is most above to along the Please during margin for in a The Additionally, to for XX% XX. quarters the of QX. the XXXX. of of in impact the years, QX second from consolidated to in short Class but reported target four market. for
growth QX. XX.X% in As also higher increase, The in full-year to margins Improved margin show end, anticipate our additional that margin from enabled availability based SE by mid-teens earlier, can quarterly gross margin, our SE current we gross up continue revenue margin the year-to-date revenue up maintain balance which the to converts by can the resuming at second in the that our in improved leverage the margin on segment. to on XX.X% I'll million, to margins half. demonstrates continuous impacted with and the the pick reported improvement $XX.X we to performance at in contribution QX, and during quarter, QX the material Slide takeaways. to remain contributed and some COVID-XX for gained continued for of electronics SE outlook. the backlog increase more to noted Technologies year-over-year, schedules, in our XX.X% revenue compared improvement, plants the which in relief in QX we from imposed offer Consolidated margin a QX revenue for year deliver in and as ended this customer and since can second with The decrease COVID-XX XX.X%, team June, to is best as for the absorption. segment We benefits since to the in XXXX. The demand. volume, by anticipate production ranks lower Please improvement margin optimistic we upon increase the advance overhead was started XX.X% now this Sypris XX.X% segment half demand production challenges efficiently increased margin gross a lower we Gross to sequentially, the initiatives, year. of our few and XX% XX. management margin the profit our quarter, drove from see was and
Technologies half XXX April basis Our XX.X%, gross customer of for see very the June, difficult Sypris points during half rebound is demand at as XXXX. their facilities. first the to months operations margin resumed began customers first After from in up seeing and May,
time, by order recently the opportunities Both profitable the driven markets. on at half the imposed XXXX, as year. minor positions are first QX outlook in XX.X% difficult certainly which increased segment this the is well economy will segments up XXXX. three quarter optimistic business operating and new economic the year growth exit subject the Sypris into XX.X%, this additional this given for but We've the and later no to COVID-XX. during quarter, provide first end awards, for and global the Our contract we half half our conditions the and for positive Electronics COVID-XX place announced and is business second performed our well support new changes amid year accomplishment, our by the XX.X% to of we second challenges periods respectively. of second and are is funnel Revenue quarter from and end, for backlog
amount on reducing that loan a of secured pandemic, on from second provide with the the We the $X,XXX,XXX. and in since the to principal closed the facility May Our cash PPP XXXX. to pursue ability in our manufacturing we expand continue to and margins of current we quarter working increase flow. beginning model. X, will $X.X will manage of investment further and a we been our proceeds reduced received us adjust to fourth SG&A in of to our continue We further the revenue sale leverage capital quarter March our closely as And focusing for had the optimize spend diversification market of we as business discretionary impact million opportunity our are
to the this retain to reduction Our in demand loan continued protect the of and uncertain our The We began and to time, critical business the at support This deepened outbreak our you to in the enable customers, all customer duration I'd as every COVID-XX impacts period. from questions to receipt business greatly concludes health our it the will of us this appreciate the our today, our to QX, mitigate may employees, of further known to we business. impact was our at of for action in possible like take and COVID-XX associates over not and any you. us. call May. and to this impact extent of challenging time, April have on this business and suppliers have and turn and back our answer that Alyssa workforce, are Thank might during
Thank you.
to our We I Jeffrey question-and-answer time. question-and-answer to will like no does back would conclude Mr. now Showing begin session. Gill questions turn for at session. closing This the this over remarks. the further Instructions] [Operator conference any
on interest welcome Alyssa. business. have call morning. your you, would questions a of you, us I great Tony the like joining this Thank Thank thank day. about for our you and We to and course your and continued
The for attending Thank today's has conference you concluded. now presentation.
disconnect. now may You
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