Recent SYPR transcripts
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| Jeffrey Gill | President & CEO |
| Tony Allen | VP & CFO |
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
for and to everyone. call. welcome to financial which Kate, of I Purpose Allen would is results company's the like you review third good you, quarter Tony XXXX. morning, and of the Thank to this
actual of calls access to factors and you that and In we review that compliance of with results non-GAAP a These morning, are as a included can projected presentation can our We with now. might have Regulation No in Slide assurance financial any that given Exchange be measures and Commission. statements. G, today forward-looking filings what projections discussed materially to this our achieved, to note could other advance be X who may Securities sypris.com, discuss always from those you and PowerPoint website this the at be those the For the please factors. result begin call. of access include of projections here these during several company's may definitions some differ with can these statements
review each detailed our markets. more Tony primary the highlights you to With provide quarter. X. with the our overview for the with the of advance in quarter to for I to like proceed presentation these discussion. the half Please a be of on will starting mind, outlook qualifications will business of first followed with an by we'd now through lead our financial morning, an the for Slide update you this results then of
in just activities current a on Sypris. however, public X, Slide our like actions to light potential these moment especially the of being address virus taken of discuss to private COVID-XX and the impact on take to and environment, begin we the Before I'd
We OSHA which to Center others. best Disease work a of Control, for of number and many by include ensure recommended have steps safe environment, a practices the taken
them campus largest been been service Spacing and hygiene home. professionals and has Travel and be at and to any our on-site employees check have at to our have our to has Gathering to admitting work of both has both We emphasized, at continues sizes reduced, medical into before facilities. be increased. visitors been been limited. incoming
regular are feedback requesting providing to We employees regard we while suggestions steps with might their with that updates and additional take.
are discussing their majority that day recognizing the of occurs of importance responsibility, outside personal of We the actually confines of the Sypris.
conditions special individual happens or pulmonary providing risk We virus. also consideration respiratory, of [Technical or the be an or are other specific that to such age underlying otherwise contract any should would place Difficulty] with she an he the substantial for at
monitor and We basis. of our both on a the situation continue suppliers daily our to customers
of for open a months rock in solid. and and/or customers while July, their and at and progressively April defense demand, the up. early had commercial reduce the weeks customers Beginning certain late vehicle began May, During closed communications automotive we to and time markets remained June
but the dynamic behind may change sense certainly Our rapidly. the circumstances and us, environment is is trough well is
have we made our environment to employees a work families. continue will provide to their safe on commitments our while to the and focus customers, We meeting working for
markets as the mix, by performance for the XX.X% Sypris continue Slide sustained reflected fashion, outlook recover Revenue for Now company. to similar believe demand Mexico. and from these were increased well reflective markets. that as the sequentially with program XXXX. demand profitability Electronics during of from a that room We was defense margin year-over-year customers points year-over-year profit results strong drove XX.X% improved operating the businesses, with taken further year-over-year basis our In a that period, which lift of boosted been operations positive XXX tax and going both there's operationally vast operating but in continued has XX.X% improvements Revenue and the quarter a increased that the gross X.X% mix XX.X% margin margins in increased sequential believe reflects overview improved gross a have Technologies place when as its let's We second XX.X% The sequentially of customers combined communications year-over-year our increase in the and release forward. points The are sequentially. for X. reflecting and the the flat from the years. deferred allowance, further begin expansion as of from and of diversification basis in Sypris on for increased achieved valuation XXX recent increased positive
decision many As impact previous in its the reducing significant operations, over sourcing XXXX on year. XX% XXXX Mexican the had our to change customer a beginning for a of by from you may revenue by recall, strategy
We have been to this operation. working rebuild since that important time
prospects can by fact now Our basis its measured been success in the on going even be are XX-month forward doing so stronger. while that a trailing it's profitable
compared gross these we reversed factors, awards and prior valuation a result for year, to higher allowance XXX regarding both the loss of $X.XX quarter share one periods segments. SG&A As our earnings was good business announcements of XX.X% lower. with of the to for for year. that of while forward. a contract going It's interesting to $X.XX other and revenue build was basis quarter both of margin than resulting while for Clearly, The favorably the share third The operations. the prior the recent Mexican that upon plan concluded a combination of number the quarter in reported further positive of $XX-plus XXXX note points was per million, that per
a period. in that they were momentum just to business indicative We the of further during positive these but say certainly about experienced our minute suffice will across talk we it the
each X. a Sypris with Slide our Now performance on let's take at units, of business look of Electronics the starting
availability top The ago, while the of company's XX.X% increased as As in not sequentially. first the the up levels I Electronics since X.X% has orders months of moment line year-ago Sales December it backlog during of for strong of increased the the revenue mentioned a has fed from XX.X% Sypris the XX% increased while are nine backlog growth XXXX. period periodically XXXX for components hinder did past. and year-over-year
business into key margins margin of extends XXXX. profit prior metrics year. suit also healthy, expanding of significantly to were financial Operating of gross with well for book each a Our basis. loss now followed Gross X% a these and on the increasing revenue from year-over-year
this from manufacture During Leonardo begin electronic initial a assemblies Naval we Electronics radar during under to XXXX. contract is scheduled announced naval and the award to quarter, Work DRS tracking contract system. test for an
having for manufacture all assemblies Electronics since is growth munition dispensing to we XXXX look after another In we production systems year positive end future electronic months into up mission-critical and up begin during for strong in We first Sypris XXXX. remain to also XXXX. short, top slated announced for year-over-year of the and variety contract airborne positive Backlog line with awards to during almost was continue a XX.X% respects, it the this as quarter business. XX.X% supported was of X and
Now reopened expanded response the XXX.X% sequentially increased idle quarter profit Revenue review the let's temporarily quarter. X margin that to performance customers operations while sequentially, in during Sypris of Technologies the second in year XXX during the advance were X.X% year, Clearly, prior as up gross prior basis are increased margins pandemic. while XX.X% that to to from the than margins. new were much those higher to XX.X%, lower resulting SG&A has in XX.X% progress the expansion the operational points sequentially. than of expense been operating period. programs Gross made was supporting Slide
and quarter, XXXX, discoveries Canada. the containing of Libra The During orders over day we for billion the the project million oil the in oil In and case of oil billion one closures barrels $XX of expected per announced Brazil, field X.X project of of billion. in located and between cost ultra-deepwater deep award is produce of oil. largest and Brazil the up with an new XX barrels world's development projects to feet estimated X,XXX to by X.X is of
providing Expansion estimated specialty add Coast is Project pipeline of day, In for to Trans XXX,XXX We to closures miles that project world will $XX.X psi. the pressure XXX handle markets. for to shipment cost this Mountain per will oil of project Canada, billion. Canada's Pipeline approximating be The barrels XX,XXX transport can XX-inch West
to opening. providing in be from ranging will diameter of size closures in inches that ease inches XX XX We automated for be will
standpoint, in for contract completed a Alberta the XPress of program look the Manitoba delivery announced we toolless prior These for from excellent closures and for deal type failure U.S. the demanding, tons Midwestern of end world. each to around will be a projects to delivery business Shipments increase to From American as also of development of cost capacity their companies X.X applications a will weighing an serve Southern locations of content. experience sourcing in XXXX. activity North use the which as expand examples work great do transmission continue We this year we to XX-inch Gas the X high for project,
business, As we of markets, on focus in continues our these both evaluate to and diversifying opportunities, further terms be customers our technology.
discussed taken place the past years. call, last During our several changes in the our we that market over have mix
revenue that commercial XX% from expected of note XX% represent XX% last business, from XX% Slide up vehicle expect to sales, while are down sales we of in our XXXX. X. customers total to to now defense now Turning year electronics XXXX, Please in from to exceed the
commercial XXXX, represented fully were Some of X of highly that may in and XX% sales vehicle with these customers. you recall revenue, concentrated
today much We terms served and and more of customer of a market diversification both during we concentration. business -- pandemic, both in much This the have balanced has served terms us well have made in volume margin.
expect to to from opportunity requirements, and reflecting services. technical we continuing our believe business, move to increased margins aggressively diversify further to pursue additional will We forward, and that and commodity further, away Looking this we exists continue outpoint. products value-add expand while
to many, Now run with markets. outlook to expanding, especially to to each to that regard continues military X many solid, programs strategic our years. for of review U.S. spending are spending with the key remain DoD long-term for expected let's turn Slide major
June, by specialty, the stimulus of growth last? top and outlook year. customers all uncertain. have The oil there Or sector implemented current tell, for somewhat, and the somewhat automotive, for margins it the key believe course, year will will resumed has Time remaining of and improved is will significantly from another economy the the that will we term, producers long believe trucking price either the benefit this but and economy? the highway the near-term in backlog commercial during be question, the with prepared been Our In recovered has balance XX.X% line. increased of for in significantly the with end, event. since are significantly. benchmark shutdown increased crude In XXXX our that our terrain we oil programs vehicles, that has we from months, the Demand have outlook recent for in
the LNG on energy of the front. domestic Within continues the to broad market, Sypris to an well support export pipelines for both and on natural however, terminals a to power of generation and source be activities construction gas opportunity international conversion as the as of
first customers. the data to to during and a future safety needs XXXX to agile the under develops. solid, we and to the remain responsive will interim, we Our new positioned while of our our made we well meet must continue we nine as In responsive will employees working have success open believe on once basis. it And that commitments to the the be their performance of and for hard months been reliably circumstances. sustained are the has families especially remains economy We
X. Turning our through presentation you now Tony of Allen will the this balance Slide lead Tony? morning. to
both of third the third Sypris last April customer broke you for level from advance Technologies, which up Electronics and Please was half with quarter margin increase on and revenue XXXX discuss by sequential million everyone. primarily QX XXX Thanks, quarter QX like and Technologies for of of XXXX. QX Consolidated the year-over-year in Technologies. QX year. driven recovery and million, Sypris an sequentially The $XX.X profit and margin demand from Gross related in increase of XX.X% good of Revenue million, from just QX rebounded for Consolidated I'd the favorable XX.X% million Gross XX.X% with margin a third QX improved the was for Sypris and ago. gross was X.X% of for from for financial XX% and XX.X% to reported with demand some was highlights XX.X%, full and of to year sequentially QX margin the the $X.X XXXX. up line line consolidated Jeff, from our revenue $XX.X results. margin XX.X% from low million of Slide gross $XX XXXX. year was QX Sypris margin the the to of first for significantly the points was basis, driven contribution by to and in May. a as increase below for Electronics was the $X.X basis XX. morning, Sypris quarter months over XXXX negative XX.X% improved to reported increased the the following an
in lower of actions Our activities, consolidated senior areas QX corporate was included cost. the QX, reduced certain a and leadership $XXX,XXX the reducing suspended spend SG&A discretionary The to year. other paid and management response and SG&A our actions Directors, decrease for reductions fees expense Board reduction for reduce other Cost in controllable by million hiring $XXX,XXX personnel, approximately pandemic. and decrease compensation CEO primarily travel-related $X.X of our from COVID-XX in to reflects of sequentially spend prior to
by operating and operating QX a a The our QX, was We from position also to economy QX moving the approximately a lower insurance and business one back our performance the basis. QX in operating to to income of income see sequential period the customer loss offsets demand. the driven place the on in have $XXX,XXX Consolidated period the programs. positive basically remain we both of favorable performance SG&A credit direction better year-to-date consolidated related in in visibility until recognized in are on expected segments measures expense. casualty income right $XXX,XXX puts for spending for and the of Many claim margin
Our income and for quarterly losses reported the QX compares periods of operating also to prior favorably both the year-to-date year. the
the impacts the build the it we those with of QX significant in performance such as and We experienced of periods, can for absent future on COVID-XX, quarter. believe of second indicative in a pleased business are is level
and realized. our also third could a million tax resulted our factors, Please the of deferred the tax During consolidated of driven both be impact evidence million, nine million efforts boost advance in revenue resulted Sypris $XX.X in the million, nine from primarily recognition subsidiary combined we is conclude income, recognition the XXXX. The of provided quarter, quarter, pretax that positive carrying in $X.X the margin against prior deferred which valuation cyclical allowance improvement released, gross the of continuous improvement assets enough pandemic XXXX, below the from that a of the decrease revenue decline reflects of Sypris XX. The launch determined $X.X programs not nine QX, likely Consolidated market per of Slide our margin we've been consolidated operating and revenue the for Mexican month improved new comparison more months year, it net X.X% in profitability year. of improved on or cumulative Technologies. $X.XX vehicle the which our other will than for share of associated operation during sufficient the favorable initiatives. in to the period, future, management the XXX with was with the net revenue lower in XXXX Technologies trailing for period. period. the X affected and not impact with over COVID-XX mix second for to the reflecting but The Class the diversification income of that tax which million by first assets the drop benefit be efficiencies prior for $X.X the months first income the profitability with the Despite the the X overcome foreseeable expectation the commercial The is operation reflects continued to year Year-to-date the The of of revenue or period benefit basis this for together points million first in $XX.X the market. provided our months demand. $XX.X of some to three was tax
in as times. pandemic uncertain customers delayed orders also navigate spending We energy have they projects these our as since some the or product softening outbreak through experienced reduce have
customer nearly is year-to-date $XX.X our XXXX. more deliver of the period remain to at issues million, $XX.X Electronics revenue a challenges our expected daily first an we million team effectively above face or Year-to-date with QX the in stable above at was and on this XX% basis is The X year, availability prior for experienced XX.X% the resolved, been is manage material worked in QX for or for consistent revenue to and revenue routine the results year. year with we from in largely the segment Demand gross margin prior successfully Although have down base XX% prior has increase production levels. Sypris months.
with our first continues existing grow is for to for favorable. are at backlog improvement opportunities remains coming the of confidence over considerable the year months the team's Our pursuing, of X margin the and comparable XXXX. margin we for the the new segment outlook a our year, for XX.X% in negative and business period Gross this
Our impact consolidated $X.X the revenue. in of of nine response first decrease COVID-XX spending and SG&A over from XX% discussed for reflected the expense implemented were year. expense on was outbreak or QX of months, in in the the to both previous $X.X XX% a late QX. Year-to-date, Certain the slide with SG&A QX million represents the reductions full prior million
despite the incurred year-over-year not the and in $XXX,XXX the Additionally, the income COVID-XX, operating certain Consolidated implementation $X.X improvement as nine ERP months the the related first we a consulting from were QX X.X% represents from which current setback recovered million costs revenue. first months is for of for year. nine those an decline during of of Electronics system XXXX, to new we fees in Sypris incurred
with year to and the our of the the are challenges year first remain profitability. quarter over continued months final imposed nine the and closing the pleased by advance performance with XX. focused on Given COVID-XX, Slide we Please driven of
our look X last revenue We quick quarterly the year. vehicle its XXXX a first will QX consolidated downturn three started market The and at of take commercial Class trend quarters of for XXXX. in
the New revenue some at program to of partially the automotive launches market. Sypris quarter sport began for XXXX, in and first contributing of in offsetting the Technologies components utility softness
in revenue revenue and in before revenue Technologies Additionally, the allowed improved Electronics Electronics reported in revenue significantly QX XXXX. QX component its segment recovering quarter Sypris affecting QX, increase QX. down consecutive COVID-XX impact $XX The from availability This reaching over QX as fourth during quarter, sequentially late before XX.X% for COVID-XX backlog Sypris revenue of drove healthy. March. period began on remained an to of of increase in the same growth increased from segment the million
prior pointed are course, first with The the subject, margin X points at we economy from the generally this Sypris schedules at The move in our the to converts Slide to contribution more higher to demonstrates XXXX, from on months in margin. of an earlier, to consolidated our which for Jeff increase additional decline management combined over QX. results forward QX the our and XX.X% a for leverage only in material the overhead improved is basis QX Electronics XX. sequentially also increase show heavily under the gained is conditions. had margin the which first margin years, saw business the margin Sypris COVID-XX at absorption. and margin margin SE months, growth continued second this revenue Improved margin margin efficiently XXXX. expectations for up margin segment The margin of contributed year. COVID-XX as and this out production for is improvement, more QX, X,XXX enabled X Sypris we Consolidated advance gross pick to the increase gross Please trend X below X.X%. If balance we months. quarterly the quarter recent as winter our XX.X%, performance normal of that look revenue year, is basis prior and market at we from by our gross impact to team show along Electronics the XXX have gross most year-over-year that which of gross XXX we conditions of availability the economic look gross points year-to-date includes to to XX.X% through we points as to on gross by our segment. impacted improvement XX.X% basis with QX of could the line was As the Technologies but business On and favorable slide, Technologies year-to-date,
for Gross improvement will in few the our year-to-date the offer an takeaways. Our QX full QX, year to drive the million, Technologies and Please sequentially $X.X XX.X% or was with in to is which continuous XXXX, anticipated of of million outlook in to increased Sypris Slide QX million improvement that I for year show for calls XX.X% level increase of line and are QX over Consolidated stable for demand of XX.X% profit including XX, prior results for margins to a expected $XX.X the further quarter. XXXX. above underway. advance revenue $X.X initiatives
gross in good trend April margin demand X.X% operations and we has for Technologies positive is for outlook availability another as continued and QX programs a rebound facilities. XXX After and base over for contributed Electronics close XXXX improved year year-to-date closing revenue very year-over-year component Sypris the began up XXXX. basis their prior quarter. of and as in was QX XX% second QX for assets of over outlook income valuation QX a performance halted sequentially, see this operation QX year. with QX benefit offset shows and quarter. resumed the quarter. to to the Sypris Revenue coming year-to-date loss We've QX, during last of over The Electronic Demand growth released our the and June the has in performance allowance QX pandemic the operating prepare million customers outbreak despite management's in XX.X%, solid throughout as evidence XX.X% favorable customer matter. continued nearly a profitability up operating our QX a in from deferred to the that $X.X to tax The year. of of May, which the tax improve and difficult the at points positive Consolidated resulted months results for conclusion current years on $X.XX for income XXXX prior a us recover Our the million additional has of of a provides for over on economy. Mexico $XXX,XXX, incurred moved the the this to for three was
Our concludes the uncertain business diversification to I'd ability and continue pursue business that our call period. over during model. our the of The for challenging are this take we leverage our the time. expand Kate and of possible today, have every business to COVID-XX any much. time, and at employees, this greatly this this questions This and like to increase we time, us mitigate and impact will to and action impacts our and to associates all to you Thank it further very not opportunity answer customers business. appreciate continued might protect revenue back support to margins to suppliers you at at We our the us turn our of have market duration may health our on the will our known as provide extent of current
day. continued business. great Thank and a to you, you, your interest, and Kate. of call have us questions for like welcome would thank and your Thank joining about this you our We all course, on Tony I morning. this
now The Thank you attending presentation. concluded. conference for today's has
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