Recent SYPR transcripts
Associated SYPR filings
| Jeffrey Gill | Chairman, President & CEO |
| Anthony 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. ahead. go Please
company's and would Grant, this everyone. Allen XXXX. review Tony The quarter the Thank full and to good welcome I year the to is like of call results you and for purpose fourth you, which morning, financial to morning. this
those Commission. can discuss For access what a actual with that X be filings today PowerPoint always the review now. may No here this result those be as you company's begin a factors. have And we Regulation during note please of the G, and at morning, call. these statements. included measures website results be the materially projections non-GAAP of and our you and to Securities who with achieved, in that definitions given and in could We of any some this advance with might from of calls compliance projections forward-looking Exchange projected include to sypris.com access These presentation differ to these our may will that several factors Slide statements discussed other are can assurance financial
now and before positive year. each of I'd needs outlook the you Please With the to all. be first I The for thank psychological the for same mind, was families of our to year. financial to within with proceed employees in Presenting only review with update increasing started, XXXX detailed like overview for we'd markets. at our and of more concerns during people business our starting our take an expanding Tony quarter get presentation a an so the discussion. on past then this But a to while of for margins, for their followed our just primary the to of enabled unique half to of will unwavering their provide cash unlike by and we highlights these lead physical, meet the you advance qualifications its year with the X. Slide the you, year commitment to like will through support this morning, do personal generating other. but the our not everyone. one company, and dedication growing any a and and moment flow customers, our Thank profitability competition. time, its results
prior from rising when increase what in year and in for from to despite presented contributed X,XXX for of market, believe are by Revenue of income the operational multiyear the from a We XX.X%. these believe compared these to the of operationally XXXX believe performance, rising that generation improved our meaningful the in that loss have $X.XX is for $X.XX for while continued a imposed of on EPS year-over-year, revenue XXXX that and the the achieved years. combined reflects XXXX has change basis XX.X% Slide Now taken full overview top unique vast the We especially during a margin results to in year that reflected defense XXX year X. and for of let's Sypris year. increased improved X.X% increased XX% were the in improved decrease growing The going Sypris our place points there improved what in impact in margins response markets makes, the begin benefited the year a despite the backlog XX%, year to line availability. with component the recent quarter profit Electronics basis revenue margin as year-over-year diversification We the we Gross points the share forward. operations year, XXXX. increased XXX% demand reflective growth the of during in SG&A, continue for from appears in the to and XX% very Gross customers margin difference significantly, each for the for customers the challenges experienced line well improvements a expansion momentum Gross that the full reflecting the a strong economy increased during as shut to in second communications per top that and in with compression And pandemic. the major in be costs as light reduction significant, to share be generation - down mix the the to a as been spend room virus. in to cash to per full the recover year. Electronics positive. impact markets further from margin the lower operating use
increase to operations. While XXX of The combination fuel of X in are from margins growth in XXXX, number for awards contract additional flow and announced percentage growth. a these layer positive to in XXX-basis-point XX% top strong recently cash expected events a is revenue to line forecast double-digit expansion a in very
sources. a mission-critical a set U.S. war of source follow-on from for system, the Force manufacturing production technology current provides system each year. U.S. for coming Navy Starting and antiship during that with radar the we begin these our targets conditions, More guidance, that and contract by surveillance, important in no and our with provides and and the received the that or our new links system of dependence for modules program electronic for X. specifically, to designed on power on award advanced long-range missile missile last from which tracking destroy At we needs DoD contract fighters. the Sypris The intelligence, platforms, to to precision award prime designed Air recent routing enable is Leonardo day award network and DRS new call, test survivability night, moment contract the manufacturing employing initial system. follows detect supply included other X GPS Electronics, an of all-weather XXXX. within during to range, ships recently meet awards precision-guided employs contested environments. announced back test, system The of factors awards, to Slide recent in the according Naval optimism So let's to electronic take Electronics, on most navigation viewed underlying is we groups reduce review reconnaissant a technologies and This provide specific contract most the assemblies -
assemblies discussed during contract for the variety manufacture of systems. We airborne of to quarter also production mission-critical begin to slated XXXX. electronic With dispensing munition awards a second
long-term to vehicle shaft for The It about additional be our greater of weight model the wins efficiency contract XXXX. forward, beginning fuel series and to as lines horsepower Sypris, XXXX contract announced conversion also is savings momentum program by the in This for by for to the of for Technologies, an contract continue we patented certain X importantly, the to Sypris model vehicle. patented during revenue growth extend Ultra lightweight believed reduces move future backlog pavement, of typical shaft OEM. performance pounds to by and axle existing the features Class owner. for believed the leading and Ultra estimated now assemblies Sypris Sypris At line commercial the braking of axle potential axle to extending our an expect shaft reducing lines, transferred these The product weight thereby And new new drive shafts, of may with we shorter provides We recently distances as weight is very remain further award optimistic we agreement fleet axle commercial an the perhaps more agreement contribute XX continues be produced and of new just vehicle. XXXX. the the adopt of the the includes design. the high-volume important that series the to existing X into enhancing
for orders announced pipeline upgrade gas gas oil also project the in in Anchor in planned including of for the Gulf America. use high-pressure We a Mexico, applications, and recently and system development of specialty closures natural receipt North Field the the of
psi and rated up use A Alloy to to will alloy X,XXX high-strength temperatures. closures Anchor the resistance provide high-pressure specialty Field nickel-based project, Inconel that possesses For we and properties that elevated are super XXX.
a pipeline reduce These each part closures harmful weigh of will a XX.XX psi. will to EPA for be equipment. aging in gas X,XXX XX of be tons system from and natural to program compressor emissions upgrade ready system, an we as the provide diameter, closures For will multiple inches pressure
In oil During is up per of expected cost our containing we X,XXX Brazil at one X.X closures project last to the of between of million call, Libra of and with barrels oil X.X ultra-deepwater orders Brazil, world's award billion. case for new the of located the feet The over estimated and of for oil. an discoveries produce Oil $XX to project largest development in projects Canada. Field XX and billion day barrels is the announced deep in the
We per will West Mountain estimated can closures accounted billion. of psi. The will pipeline to XX-inch project be pressure the for Expansion providing this project XXX,XXX XXX day Trans world transport cost to of specialty approximating Pipeline add handle Coast markets. miles $XX.X is Canada, In XX,XXX to project barrels that oil for as shipment
to of We will automated from be that opening. in providing XX will ranging in inches XX inches use for closures size the diameter be
will tubeless closure, the in to each type the XPress the world. a in as tons projects of examples we Southern a These We project, XX-inch of around which high failure excellent for from and cost the for Alberta applications use expand transmission Manitoba capacity of locations announced work the delivery also gas contract delivery of Midwestern demanding weighing for X.X U.S. serve do
of let's strong March we review market each XX, advance its the heavy-duty publication, truck According to to Research market the track Slide conditions. indicators to XXXX markets. to all for to major in Now point use extraordinarily ACT outlook X our
freight are on determined X% to previous transportation positive of So customer the XXX% manufacturing, backlog, than strength, vehicles of e-commerce carrier of profitability, to the to expand relatively side a which the at for to the There that that supply of the much the to keep for total OEM to annualized months. estimated XXXX, factors and fuel with highs. a end of for the X% by demand August combining XX are during the period up ability on prosperity, the rate. demand combined as metrics from acceleration more manufacturers new fleets was Housing ordered to transition are will the be at The a so up demand drive be of number influence a February, economy having stimulus product. year by low fiscal sales begins prices.
its and demand quarter ACT exists, XXXX. concludes the to XX% in to comparisons a with outlook be rapidly. the that about to followed our XXXX by that quarter The to XX% be is which, after the for upside presumes supply chain of of and outlook escalate first expansion subject ACT for appears In the short, performance positive. the additional XXXX demand to in a further will ability forecasting outlook XXXX, As increase even sequential result, the this business to for meet extremely needs. part OEM's an of be year-over-year fourth
to XX% followed to be Texas natural which has now by of to market $XX forecasted year. in construction year, from up for with additional report a demand. March forecast metric increase Turning would is market over Slide of outlook additional the transportation and by key under transportation use have tons the gas LNG months meet same XXX% McKinsey, XXXX XX% past Oil count tons for of and XX, the past February to Sypris future According XXXX XX% of Rent is to XXX% from for increase XXX by prices The period. by the West barrel, March increased to per was crude price the currently The is XX, X XXX a significantly capacity metric up Intermediate, is reflect oil. the processing Rig and needed an X. year-end. over increased capacity an to for year-end of the with XXXX. prior
positive. now are into way to its was such, the an increasingly sense economy. capital find suspended investment are signals is that pandemic, expanding The will Our the needs the economics the increasingly that during certainly of meet projects
will continues allocations, platforms for overall within you the from the strategic long-term on on budgetary high And upgrades market chart spending a very defense priority. be positive. As X, Slide remains spending to the see technology for
we and new Our business level with into backlog as pleased business future of now the momentum XXXX extends we XXXX. enter are very of
During past that previous discussed calls, in changes have mix place we our the taken years. over several market the
XX% increase Please XXXX. during that X. forecast is to revenue note now Slide while Turning to
Our market as believe from expected it mix and specialty this distant with these electronics, business, change XX% We the result maintained concentrated of the mix defense for to continued expansion and automotive increasingly remains past achievement, commercial energy. and were big The be commercial fairly a our well significant growth of quite vehicle the represents forecast Despite certainly an is balanced. of X represented a when customers. sales vehicle.
We much served well served balanced pandemic, terms customer more in has margin. us have both and and in a terms today, diversification volume during of This market of both business concentration. the
to forward, requirements, away and this exists that from pursue we business, continue while our value-add aggressively expect We outcome. to margins commodity increased further to Looking services. diversify further, technical reflecting products continuing and move expand additional to will believe and we opportunity
to leverage XXX strength contract in expected The let's positive markets, turn a the strong Slide XX% The clearly percentage of for XX in with of operations when cash our wind expansion new Now double-digit to combined is XXX is a back. and the margins fuel point growth our growth top flow awards, line, the brief summary. for to in basis from at a year.
our severity Quite looking during year. the will surprises be There simply, challenges. the be in weighed with faced of execution. coming So and the will issues the always the But the the year be we case, associated surprises against previous we assuredly, is on most will when pandemic. this during really profitably the and must growth appreciated much task business forward are focus the building and to of
XX. Slide through morning. presentation you this balance lead Tony to the will our now of Turning
partially from lower XXXX. consolidated XXXX to for Consolidated to Thanks, a like reported prior low Electronics during point the as year. during for the reported year by energy basis decline Jeff, was was our increased in Sypris COVID-XX with was the sales Gross $XX.X XX.X% margin million, was with the prior that and with the in increase of vehicle you Gross fourth QX sales Sypris XXX the for the in to Technologies compared sales. QX product margin decline of full lower year, X.Xx in discuss and change the from prior year, consistent demand were QX last revenue commercial margin points basis during QX XX.X% segment to results. driven line closing the XX.X% Revenue levels XXX highlights the quarter for continued and improved market financial mix XX.X% short-term offsetting the decrease reflecting good Technologies QX, QX pandemic. out everyone. related QX flat in year. to XXXX. the Electronics prior energy gross some of advance for a Please with over Sypris revenue essentially impacted primarily reduction to down pandemic, from points year due uncertainties was be for I'd about this morning, Slide quarter X.X% by of the of a from fourth The to of into the the market, for the XX.
Our paid to reductions Consolidated and costs. CEO consolidated during XX. gross in XX% management And of million the of and our year and was fees the personnel suspended year SG&A from and The improving Cost for quarter, the million actions of QX. a profit the made still Directors. income spend to $XX.X operating and Lower of considerable million, hiring for was or to in our importance the in in our of of XX.X% With activities, fell $XXX,XXX The but from decrease from the pandemic quarter expense to pandemic. certain line, Please the impact quarterly Slide We for leadership consolidated declined areas other and understand for corporate discretionary reduction coming committed reduced prior profit or prior lower X.X% travel-related to from goal reflects consistent prior reduced the year. the senior primarily reflects revenue compensation when XXXX. improvement we revenue second controllable delivering remain operating COVID-XX Board SG&A response the short the a spend decrease revenue results loss. $X.X decrease QX by decline year-over-year actions year. reduce include $X.X year. of the at advance full results our other
for recall, was revenue from Technologies If for XX.X% year. down Sypris QX, you million $X.X or the prior
XXXX, during that the made we pandemic's before enter curve first market the levels in to As rebounding impact commercial the projected was vehicle of XXXX, half steeper from the and only decline QX. record
the to Despite efforts in in by The consolidated XXXX. for efficiencies, our is lift both prior our Class vehicle market. points earlier, new launch or XX% continuous impact Electronics. Full Sypris enough over is initiatives. Sypris demand. line year. for of below in the Jeff market mix improved increase top margin solid demand COVID-XX to improvement Technologies boost to decline XX.X% was $XX.X but can reflecting cyclical discussed which decrease a revenue not million in commercial driven As the $XX.X for X the year the substantial and our overcome year, which provided XXX reflects revenue Class lower in gross XXXX, The XXXX, with provide revenue programs expected X Improved margin the the improved improvement basis the to million, diversification coming year, some and year
full above for in year. prior over in through we XXXX. spending revenue XXX reduction in material our customers year points for and worked of have also has times. product team have challenges largely revenue basis been to $XX the Dropping effectively $XX.X prior the production experienced the resolved, XX.X% navigate customer availability an period projects The gross they face We Full as we drove deliver as Sypris and million daily experienced for year. increase delayed base XXXX. in was the more or our outbreak, since reduced quarters softening to the lower the energy some margins pandemic successfully year The have uncertain or manage XX.X% routine results with million, Electronics our issues these consistent
with Our this our XX.X% are favorable. and margin team's considerable business year, a was the the outlook we confidence the for XXXX continues XXXX. for reported new to pursuing, backlog existing for for Gross our segment remains X.X% grow. And opportunities from improvement of
$XX.X was prior XXXX, XX% expense Our million consolidated year. from full $X.X year for the decrease or SG&A million of the a
expense XXXX, previous X of XXXX. XXX down carried months from basis of on QX represents revenue, points through year. last the of to the the reductions spending XX.X% late were response For SG&A in outbreak Certain in and the COVID discussed the implemented slide
incurred we the a to Additionally, year. were Sypris the those fees new for certain current system incurred consulting not XXXX, of related costs during ERP in and implementation Electronics
from Our ended consolidated of recovered an in operating This income COVID-XX. in for we territory, positive from represents year-over-year, the setback despite a X.X% as QX improvement $X.X million decline XXXX revenue.
imposed year. Given Please our to in improvements forward the by we and look results for operating XX. Slide the XXXX. in are performance X will a advance the commercial take last driving revenue Class its COVID-XX, to year pleased our challenges in with further started market And over we QX consolidated of years. look trend The at downturn our X last vehicle quarterly
the of launches Sypris the sport market. to of at XXXX, some New offsetting the began automotive revenue Technologies softness first in quarter utility in components for program and partially contributing
allowed Technologies significantly remained before Additionally, recovery component on This before QX. in and QX revenue down increase began The revenue, late sequentially segment Sypris and to QX QX affecting impact healthy. drove consolidated availability and in March. increased and backlog segment from the Electronics in improved COVID-XX COVID-XX of revenue revenue as
earlier, Sypris deliver and consolidated into north in QX to overcome per Aside revenue Jeff results. diversification $XX.X expand our our to more in Sypris the ongoing quarter, year-over-year Electronics. million increase growth focus be our discussion we QX, proved the the of million. from averaging Technologies revenue consolidated three ties markets was and $XX covered to operating impact on quarters despite other COVID-XX all for XX.X% in than of more top line market that our generate consistent could This
As noted as favorable, in are market we our conditions XXXX. his Jeff forward to comments, look
Slide conditions. expect revenue margin margin the under of for revenue growth segment's margin On gross for are X,XXX second team this COVID-XX margin the was XXXX of pick the target. the improvement higher quarter material to demonstrates the XX% sequential expect XX.X%, additional management in that but to balance achieve X.X%. below to prior a of enabled Considering improvement gross margin. the just gross was that also Sypris with in be basis quarterly the XXX production for by improvement, gross to to includes will is consolidated we the margin impacted XX.X% of efficiently prior underway. of XXXX Driving The year-over-year saw continuous the for basis points X only years XXXX, Similar that out and the heavily initiatives availability and revenue the leverage and show anticipated We and $XX.X increased Please an in gross year expansion for revenue we XXX XX. trend for is margin segment, XXXX balance show line decline SE overhead and our more XXXX this and we we XXXX. the margin up in million segment. the XX% expect average analysis more for over year, Consolidated growth we normal year the which growth QX contributed results quarter, XXXX Improved to our line over economic slide, over our last margin gross absorption. reported which points Technologies balance was carved was second schedules this on expectations to which with which with our converts basis over advance discussed the XXXX. expectation quarter of the to the Electronics from in increase The SE a and for to revenue growth margin XX.X%. increase contribution by point our gained
XXXX $XX.X per An share year. Class share the million revenue was release basis XXXX the contributed Earnings during XXX additional resulting to points, loss the XXXX compared few as our at We and gross XXX customers increase margin market forecast range per XXXX. in of improved. of for range. net Consolidated $X.X Please is XX, in share deferred a advance offer in of in $X.XX for line XXXX further margin growth points production consolidated will in per XXXX, operating takeaways. market expansion the income Demand allowance $X.XX I the in to margin for the in asset of of of expansion midpoint Electronics. fueled valuation improved that X.X%, American from Slide in Sypris and COVID-XX a by vehicle of $X.X tax quarter. impact attributable XXXX, XX.X% XX% to million, million to second income to expect for XXXX. and was to primarily conditions XX% XXX of a of XX% the half top second basis of grow decrease on commercial a margin the X Gross the to North rebounded and
market support growth expansion New margin conditions contract and positive and revenue awards, in market XXXX. diversification
the a projecting and year-over-year quarter the expand expect XXXX XXX for increase to year. points. current quarters in expected revenue expecting second to run XXX XXXX, is basis of margin Revenue growth to improvements in are beginning and our rate of we sequential from are for gross final and X the We XX%
flow coming turn challenging improve interest our XXXX, employees, to business, We for continuing a forward aggressively remarks. and and of greatly driven capital. and profitability to support operations in you very we during to like suppliers Jeff optimism. manage by year it to and in with improved appreciate We cash working our also closing for XXXX, and I'd the the expect look customers from your to Thank continued over support
Thank you, Tony.
profitability. a of we margins looking good double-digit certainly We Thank business. continued your day. you, and note, our have forward in increased are growth, appreciate And please expanding a and to year interest
Conference for today's Thank has presentation. now you attending concluded.
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