Sypris Reports Fourth Quarter Results
Gross Profit Up
HIGHLIGHTS
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-
The Company’s gross profit for the quarter increased
23.1% from the prior-year period, while gross margin expanded 350 basis points. -
For the full year, the Company’s gross profit increased
15.3% from the prior year, while gross margin increased 150 basis points. -
Gross profit for Sypris Technologies surged
41.6% for the quarter and39.3% for the full year, reflecting favorable exchange rates, improved mix and productivity improvements. Orders for energy products were up8.6% year-to-date. -
EPS for the quarter increased
to$0.06 per diluted share, up from a loss of$0.01 per diluted share for the prior-year period.$0.05 -
The Company announced its financial guidance for 2025, projecting revenue between
, gross margin expansion in the range of 150 to 175 basis points, and a forecast of 10$125 -$135 million -15% increase in gross profit. The revenue outlook partly reflects the conversion of certain shipments from our facility inMexico to a value-add only sub-maquiladora basis.
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“We are pleased with the year-over-year revenue growth at Sypris Technologies, driven by an increase in sales of our energy products during the period,” commented Jeffrey T. Gill, President and Chief Executive Officer. “Orders for our energy products increased during the year, and additional opportunities for growth may exist with new global projects in support of increasing LNG demand including support for the steep increase in electricity demand from data centers to support AI. We are also actively pursuing applications for our products in adjacent markets including CO2 capture to further diversify our industry and customer portfolios.
“Demand from Sypris Technologies customers serving the automotive, commercial vehicle, sport utility and off-highway markets has remained relatively stable, with new product line shipments helping to offset the anticipated cyclical decline for the commercial vehicle market. We believe that the market diversification Sypris Technologies has accomplished over recent years by adding new programs in the automotive, sport-utility and off-highway markets will help offset some of this decline.
“The backlog at Sypris Electronics exceeds
Fourth Quarter and Full-Year Results
The Company reported revenue of
For the full-year 2024, the Company reported revenue of
Sypris Technologies
Revenue for Sypris Technologies was
Sypris Electronics
Revenue for Sypris Electronics was
Outlook
Commenting on the future, Mr. Gill added, “Demand from customers serving the markets for electronic warfare, aircraft and missile avionics, secure and subsea communications, and ground-based radar remain robust, while the outlook for the energy market continues to move in the right direction. Similarly, demand from customers serving the automotive, commercial vehicle and sport utility markets remains healthy despite the anticipated cyclical decline in the commercial vehicle market.
“With a strong backlog, new program wins, and continued long-standing contractual relationships in place, we are confident 2025 has the potential to be very positive for Sypris. While we anticipate a modest decline in revenue reported resulting from the conversion of certain shipments from
About Sypris Solutions
Sypris Solutions is a diversified manufacturing and engineering services company serving the defense, transportation, communications, and energy industries. For more information about Sypris Solutions, visit its Web site at www.sypris.com.
Forward Looking Statements
This press release contains “forward-looking” statements within the meaning of the federal securities laws. Forward-looking statements include our plans and expectations of future financial and operational performance. Each forward-looking statement herein is subject to risks and uncertainties, as detailed in our most recent Form 10-K and Form 10-Q and other SEC filings. Briefly, we currently believe that such risks also include the following: the fees, costs and supply of, or access to, debt, equity capital, or other sources of liquidity; our failure to achieve and maintain profitability on a timely basis by steadily increasing our revenues from profitable contracts with a diversified group of customers, which would cause us to continue to use existing cash resources or require us to sell assets to fund operating losses; volatility of our customers’ forecasts and our contractual obligations to meet current scheduling demands and production levels, which may negatively impact our operational capacity and our effectiveness to integrate new customers or suppliers, and in turn cause increases in our inventory and working capital levels; cost, quality and availability or lead times of raw materials such as steel, component parts (especially electronic components), natural gas or utilities including increased cost relating to inflation, as well as the impact of proposed or imposed tariffs by the
SYPRIS SOLUTIONS, INC. |
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Financial Highlights |
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(In thousands, except per share amounts) |
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|
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|
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Three Months Ended |
||||||
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December 31, |
||||||
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|
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2024 |
|
|
|
2023 |
|
|
|
(Unaudited) |
||||||
Revenue | $ |
33,449 |
|
$ |
34,735 |
|
||
Net income (loss) | $ |
135 |
|
$ |
(1,079 |
) |
||
Income (loss) per common share: | ||||||||
Basic | $ |
0.01 |
|
$ |
(0.05 |
) |
||
Diluted | $ |
0.01 |
|
$ |
(0.05 |
) |
||
Weighted average shares outstanding: | ||||||||
Basic |
|
22,137 |
|
|
21,938 |
|
||
Diluted |
|
22,390 |
|
|
21,938 |
|
||
Year Ended |
||||||||
December 31, |
||||||||
|
2024 |
|
|
|
2023 |
|
||
(Unaudited) |
||||||||
Revenue | $ |
140,180 |
|
$ |
136,223 |
|
||
Net loss | $ |
(1,680 |
) |
$ |
(1,596 |
) |
||
Loss per common share: | ||||||||
Basic | $ |
(0.08 |
) |
$ |
(0.07 |
) |
||
Diluted | $ |
(0.08 |
) |
$ |
(0.07 |
) |
||
Weighted average shares outstanding: | ||||||||
Basic |
|
22,043 |
|
|
21,876 |
|
||
Diluted |
|
22,043 |
|
|
21,876 |
|
Sypris Solutions, Inc. | ||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except for per share data) | ||||||||||||||||
Three Months Ended |
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Year Ended |
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December 31, |
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December 31, |
||||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
||
(Unaudited) |
|
(Unaudited) |
||||||||||||||
Net revenue: | ||||||||||||||||
Sypris Technologies | $ |
19,547 |
$ |
19,025 |
|
$ |
75,207 |
|
$ |
77,920 |
|
|||||
Sypris Electronics |
|
13,902 |
|
|
15,710 |
|
|
64,973 |
|
|
58,303 |
|
||||
Total net revenue |
|
33,449 |
|
|
34,735 |
|
|
140,180 |
|
|
136,223 |
|
||||
Cost of sales: | ||||||||||||||||
Sypris Technologies |
|
15,154 |
|
|
15,922 |
|
|
62,383 |
|
|
68,712 |
|
||||
Sypris Electronics |
|
12,909 |
|
|
14,436 |
|
|
57,907 |
|
|
50,263 |
|
||||
Total cost of sales |
|
28,063 |
|
|
30,358 |
|
|
120,290 |
|
|
118,975 |
|
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Gross profit: | ||||||||||||||||
Sypris Technologies |
|
4,393 |
|
|
3,103 |
|
|
12,824 |
|
|
9,208 |
|
||||
Sypris Electronics |
|
993 |
|
|
1,274 |
|
|
7,066 |
|
|
8,040 |
|
||||
Total gross profit |
|
5,386 |
|
|
4,377 |
|
|
19,890 |
|
|
17,248 |
|
||||
Selling, general and administrative |
|
4,087 |
|
|
4,660 |
|
|
16,963 |
|
|
16,279 |
|
||||
Operating income (loss) |
|
1,299 |
|
|
(283 |
) |
|
2,927 |
|
|
969 |
|
||||
Interest expense, net |
|
216 |
|
|
246 |
|
|
1,684 |
|
|
777 |
|
||||
Other expense, net |
|
436 |
|
|
342 |
|
|
1,217 |
|
|
1,125 |
|
||||
Income (loss) before taxes |
|
647 |
|
|
(871 |
) |
|
26 |
|
|
(933 |
) |
||||
Income tax expense, net |
|
512 |
|
|
208 |
|
|
1,706 |
|
|
663 |
|
||||
Net income (loss) | $ |
135 |
|
$ |
(1,079 |
) |
$ |
(1,680 |
) |
$ |
(1,596 |
) |
||||
Income (loss) per common share: | ||||||||||||||||
Basic | $ |
0.01 |
|
$ |
(0.05 |
) |
$ |
(0.08 |
) |
$ |
(0.07 |
) |
||||
Diluted | $ |
0.01 |
|
$ |
(0.05 |
) |
$ |
(0.08 |
) |
$ |
(0.07 |
) |
||||
Dividends declared per common share | $ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
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Weighted average shares outstanding: | ||||||||||||||||
Basic |
|
22,137 |
|
|
21,938 |
|
|
22,043 |
|
|
21,876 |
|
||||
Diluted |
|
22,390 |
|
|
21,938 |
|
|
22,043 |
|
|
21,876 |
|
Sypris Solutions, Inc. |
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Consolidated Balance Sheets |
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(in thousands, except for share data) |
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|
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December 31, |
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|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Unaudited) |
|
(Note) |
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ASSETS |
||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ |
9,675 |
|
$ |
7,881 |
|
||
Accounts receivable, net |
|
10,593 |
|
|
8,929 |
|
||
Inventory, net |
|
66,680 |
|
|
77,314 |
|
||
Other current assets |
|
11,070 |
|
|
9,743 |
|
||
Total current assets |
|
98,018 |
|
|
103,867 |
|
||
Property, plant and equipment, net |
|
13,299 |
|
|
17,133 |
|
||
Operating lease right-of-use assets |
|
3,749 |
|
|
3,309 |
|
||
Other assets |
|
4,310 |
|
|
5,033 |
|
||
Total assets | $ |
119,376 |
|
$ |
129,342 |
|
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: | ||||||||
Accounts payable | $ |
18,428 |
|
$ |
26,737 |
|
||
Accrued liabilities |
|
57,639 |
|
|
56,232 |
|
||
Operating lease liabilities, current portion |
|
906 |
|
|
1,068 |
|
||
Finance lease obligations, current portion |
|
1,507 |
|
|
1,327 |
|
||
Equipment financing obligations, current portion |
|
481 |
|
|
618 |
|
||
Working capital line of credit |
|
500 |
|
|
500 |
|
||
Total current liabilities |
|
79,461 |
|
|
86,482 |
|
||
Operating lease liabilities, net of current portion |
|
3,251 |
|
|
2,642 |
|
||
Finance lease obligations, net of current portion |
|
735 |
|
|
1,852 |
|
||
Equipment financing obligations, net of current portion |
|
852 |
|
|
1,333 |
|
||
Note payable - related party, net of current portion |
|
8,986 |
|
|
6,484 |
|
||
Other liabilities |
|
6,510 |
|
|
8,082 |
|
||
Total liabilities |
|
99,795 |
|
|
106,875 |
|
||
Stockholders’ equity: | ||||||||
Preferred stock, par value |
|
- |
|
|
- |
|
||
Series A preferred stock, par value |
|
- |
|
|
- |
|
||
Common stock, non-voting, par value |
|
- |
|
|
- |
|
||
Common stock, par value |
|
230 |
|
|
224 |
|
||
Additional paid-in capital |
|
156,980 |
|
|
156,242 |
|
||
Accumulated deficit |
|
(118,612 |
) |
|
(116,932 |
) |
||
Accumulated other comprehensive loss |
|
(19,017 |
) |
|
(17,067 |
) |
||
Treasury stock, 21,513 in 2024 and 5,835 in 2023 |
|
- |
|
|
- |
|
||
Total stockholders’ equity |
|
19,581 |
|
|
22,467 |
|
||
Total liabilities and stockholders’ equity | $ |
119,376 |
|
$ |
129,342 |
|
||
Note: The balance sheet at December 31, 2023, has been derived from the audited consolidated financial statements at that date but does not include all information and footnotes required by accounting principles generally accepted in |
Sypris Solutions, Inc. | ||||||||
Consolidated Cash Flow Statements | ||||||||
(in thousands) | ||||||||
Year Ended |
||||||||
December 31, |
||||||||
|
2024 |
|
|
|
2023 |
|
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(Unaudited) |
||||||||
Cash flows from operating activities: | ||||||||
Net loss | $ |
(1,680 |
) |
$ |
(1,596 |
) |
||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization |
|
3,181 |
|
|
3,259 |
|
||
Deferred income taxes |
|
232 |
|
|
54 |
|
||
Stock-based compensation expense |
|
868 |
|
|
813 |
|
||
Deferred loan costs amortized |
|
8 |
|
|
3 |
|
||
Provision for excess and obsolete inventory |
|
593 |
|
|
(167 |
) |
||
Non-cash lease expense |
|
1,160 |
|
|
942 |
|
||
Other noncash items |
|
414 |
|
|
(56 |
) |
||
Contributions to pension plans |
|
(712 |
) |
|
(16 |
) |
||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable |
|
(1,826 |
) |
|
(1,096 |
) |
||
Inventory |
|
9,129 |
|
|
(34,693 |
) |
||
Prepaid expenses and other assets |
|
(1,934 |
) |
|
(1,105 |
) |
||
Accounts payable |
|
(8,163 |
) |
|
8,984 |
|
||
Accrued and other liabilities |
|
734 |
|
|
13,585 |
|
||
Net cash provided by (used in) operating activities |
|
2,004 |
|
|
(11,089 |
) |
||
Cash flows from investing activities: | ||||||||
Capital expenditures |
|
(1,083 |
) |
|
(2,139 |
) |
||
Proceeds from sale of assets |
|
24 |
|
|
- |
|
||
Net cash used in investing activities |
|
(1,059 |
) |
|
(2,139 |
) |
||
Cash flows from financing activities: | ||||||||
Proceeds from equipment financing obligations |
|
430 |
|
|
710 |
|
||
Proceeds from working capital line of credit |
|
- |
|
|
500 |
|
||
Proceeds from Note Payable - related party |
|
2,500 |
|
|
2,500 |
|
||
Principal payments on finance lease obligations |
|
(1,366 |
) |
|
(1,168 |
) |
||
Principal payments on equipment financing obligations |
|
(618 |
) |
|
(551 |
) |
||
Principal payments on Note Payable - related party |
|
- |
|
|
(2,500 |
) |
||
Indirect repurchase of shares for minimum statutory tax withholdings |
|
(126 |
) |
|
(105 |
) |
||
Net cash provided by (used in) financing activities |
|
820 |
|
|
(614 |
) |
||
Effect of exchange rate changes on cash balances |
|
29 |
|
|
75 |
|
||
Net increase (decrease) in cash and cash equivalents |
|
1,794 |
|
|
(13,767 |
) |
||
Cash and cash equivalents at beginning of period |
|
7,881 |
|
|
21,648 |
|
||
Cash and cash equivalents at end of period | $ |
9,675 |
|
$ |
7,881 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250324765956/en/
For more information, contact:
Rebecca R. Eckert
Chief Accounting Officer
(502) 329-2000
Source: Sypris Solutions, Inc.