Sypris Reports 2014 Results
Industrial Margins Expand
HIGHLIGHTS
For the Fourth Quarter:
- Revenue for the fourth quarter increased 18% from the prior year quarter.
-
Gross profit increased 45% to
$9 .2 million from the fourth quarter of 2013. -
Revenue for the
Industrial Group increased 25% from the prior fourth quarter to$80 .2 million, while gross profit increased 40% to$10.2 million .
For the Full Year:
-
Consolidated revenue increased 14% to
$354.8 million from 2013. -
Gross profit increased 29% to
$38 .8 million from the prior year. - Gross margin expanded 120 basis points from the prior year to 10.9%
- Earnings improved to a loss of $0.06 per share, compared to a loss of $0.51 per share for the prior year.
-
Revenue, gross profit and gross margin for the
Industrial Group increased 17%, 33% and 150 basis points, respectively, from 2013.
The Company reported revenue of
For the full year ended December 31, 2014, the Company reported revenue
of
“Our
“Our Aerospace and Defense business continued its efforts to diversify
its portfolio of products and services in response to the challenges
posed by the U.S. defense industry. Our team continues to make progress
in the development of a
Revenue for our
Revenue for our
Outlook
Mr. Gill added, “We will continue to concentrate on daily execution
within both of our businesses. Within our
Forward Looking Statements
This press release contains “forward-looking” statements within
the meaning of the federal securities laws. 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
SYPRIS SOLUTIONS, INC. | |||||||||||
Financial Highlights | |||||||||||
(In thousands, except per share amounts) | |||||||||||
Three Months Ended | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(Unaudited) | |||||||||||
Revenue | $ | 87,215 | $ | 73,859 | |||||||
Net (loss) income | $ | (2,047 | ) | $ | 61 | ||||||
(Loss) income per common share: | |||||||||||
Basic | $ | (0.11 | ) | $ | - | ||||||
Diluted | $ | (0.11 | ) | $ | - | ||||||
Weighted average shares outstanding: | |||||||||||
Basic | 19,601 | 19,450 | |||||||||
Diluted | 19,601 | 19,488 | |||||||||
Year Ended | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(Unaudited) | |||||||||||
Revenue | $ | 354,776 | $ | 310,714 | |||||||
Net loss | $ | (1,184 | ) | $ | (9,887 | ) | |||||
Loss per common share: | |||||||||||
Basic | $ | (0.06 | ) | $ | (0.51 | ) | |||||
Diluted | $ | (0.06 | ) | $ | (0.51 | ) | |||||
Weighted average shares outstanding: | |||||||||||
Basic | 19,586 | 19,345 | |||||||||
Diluted | 19,586 | 19,345 |
Sypris Solutions, Inc. | |||||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||||
(in thousands, except for per share data) | |||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||
Net revenue: | |||||||||||||||||||||
Industrial Group | $ | 80,158 | $ | 63,905 | $ | 322,262 | $ | 276,136 | |||||||||||||
Electronics Group | 7,057 | 9,954 | 32,514 | 34,578 | |||||||||||||||||
Total net revenue | 87,215 | 73,859 | 354,776 | 310,714 | |||||||||||||||||
Cost of sales: | |||||||||||||||||||||
Industrial Group | 69,973 | 56,652 | 280,241 | 244,498 | |||||||||||||||||
Electronics Group | 8,012 | 10,827 | 35,705 | 36,163 | |||||||||||||||||
Total cost of sales | 77,985 | 67,479 | 315,946 | 280,661 | |||||||||||||||||
Gross profit (loss): | |||||||||||||||||||||
Industrial Group | 10,185 | 7,253 | 42,021 | 31,638 | |||||||||||||||||
Electronics Group | (955 | ) | (873 | ) | (3,191 | ) | (1,585 | ) | |||||||||||||
Total gross profit | 9,230 | 6,380 | 38,830 | 30,053 | |||||||||||||||||
Selling, general and administrative | 10,125 | 8,019 | 35,531 | 30,464 | |||||||||||||||||
Research and development | 302 | 204 | 579 | 3,047 | |||||||||||||||||
Amortization of intangible assets | - | - | - | 30 | |||||||||||||||||
Impairment of goodwill | - | - | - | 6,900 | |||||||||||||||||
Operating (loss) income | (1,197 | ) | (1,843 | ) | 2,720 | (10,388 | ) | ||||||||||||||
Interest expense, net | 151 | 132 | 617 | 522 | |||||||||||||||||
Other (income) expense, net | (432 | ) | 486 | (1,282 | ) | (930 | ) | ||||||||||||||
(Loss) income before taxes | (916 | ) | (2,461 | ) | 3,385 | (9,980 | ) | ||||||||||||||
Income tax expense (benefit), net | 1,131 | (2,522 | ) | 4,569 | (93 | ) | |||||||||||||||
Net (loss) income | $ | (2,047 | ) | $ | 61 | $ | (1,184 | ) | $ | (9,887 | ) | ||||||||||
(Loss) income per common share | |||||||||||||||||||||
Basic | $ | (0.11 | ) | $ | - | $ | (0.06 | ) | $ | (0.51 | ) | ||||||||||
Diluted | $ | (0.11 | ) | $ | - | $ | (0.06 | ) | $ | (0.51 | ) | ||||||||||
Dividends declared per common share | $ | 0.02 | $ | 0.02 | $ | 0.08 | $ | 0.08 | |||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||
Basic | 19,601 | 19,450 | 19,586 | 19,345 | |||||||||||||||||
Diluted | 19,601 | 19,488 | 19,586 | 19,345 |
Sypris Solutions, Inc. | |||||||||||
Consolidated Balance Sheets | |||||||||||
(in thousands, except for share data) | |||||||||||
December 31, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
(Unaudited) | (Note) | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 7,003 | $ | 18,674 | |||||||
Accounts receivable, net | 47,666 | 38,533 | |||||||||
Inventory, net | 29,031 | 34,422 | |||||||||
Other current assets | 5,666 | 5,403 | |||||||||
Total current assets | 89,366 | 97,032 | |||||||||
Property, plant and equipment, net | 37,654 | 44,683 | |||||||||
Other assets | 2,661 | 4,568 | |||||||||
Total assets | $ | 129,681 | $ | 146,283 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 39,027 | $ | 36,684 | |||||||
Accrued liabilities | 18,775 | 23,806 | |||||||||
Current portion of long-term debt | 17,000 | - | |||||||||
Total current liabilities | 74,802 | 60,490 | |||||||||
Long-term debt | - | 24,000 | |||||||||
Other liabilities | 7,991 | 5,541 | |||||||||
Total liabilities | 82,793 | 90,031 | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, par value $0.01 per share, 975,150 shares authorized; no shares issued |
- | - | |||||||||
Series A preferred stock, par value $0.01 per share, 24,850 shares authorized; no shares issued |
- | - | |||||||||
Common stock, non-voting, par value $0.01 per share, 10,000,000 shares authorized; no shares issued |
- | - | |||||||||
Common stock, par value $0.01 per share, 30,000,000 shares authorized; 20,567,735 shares issued and 20,485,043 outstanding in 2014 and 20,448,007 shares issued and 20,399,649 outstanding in 2013 |
206 | 204 | |||||||||
Additional paid-in capital | 151,314 | 150,569 | |||||||||
Retained deficit | (79,596 | ) | (76,786 | ) | |||||||
Accumulated other comprehensive loss | (25,035 | ) | (17,734 | ) | |||||||
Treasury stock, 82,692 and 48,358 shares in 2014 and 2013, respectively | (1 | ) | (1 | ) | |||||||
Total stockholders’ equity | 46,888 | 56,252 | |||||||||
Total liabilities and stockholders’ equity | $ | 129,681 | $ | 146,283 | |||||||
Note: The balance sheet at December 31, 2013 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 the United States for a complete set of financial statements. |
Sypris Solutions, Inc. | |||||||||||
Consolidated Cash Flow Statements | |||||||||||
(in thousands) | |||||||||||
Year Ended | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(Unaudited) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (1,184 | ) | $ | (9,887 | ) | |||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|||||||||||
Depreciation and amortization | 10,409 | 12,401 | |||||||||
Deferred income taxes | 1,050 | (1,286 | ) | ||||||||
Stock-based compensation expense | 1,597 | 1,689 | |||||||||
Deferred revenue recognized | (8,657 | ) | (8,000 | ) | |||||||
Deferred loan costs recognized | 78 | 78 | |||||||||
Gain on the sale of assets | (19 | ) | (1,516 | ) | |||||||
Provision for excess and obsolete inventory | 1,150 | 1,251 | |||||||||
Goodwill impairment | - | 6,900 | |||||||||
Other noncash items | (993 | ) | 565 | ||||||||
Contributions to pension plans | (1,090 | ) | (663 | ) | |||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (9,091 | ) | (19 | ) | |||||||
Inventory | 4,276 | (1,708 | ) | ||||||||
Prepaid expenses and other assets | (143 | ) | (556 | ) | |||||||
Accounts payable | 2,425 | 705 | |||||||||
Accrued and other liabilities | 3,237 | (247 | ) | ||||||||
Net cash provided by (used in) operating activities | 3,045 | (293 | ) | ||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (5,259 | ) | (5,053 | ) | |||||||
Proceeds from sale of assets | 30 | 2,265 | |||||||||
Net cash used in investing activities | (5,229 | ) | (2,788 | ) | |||||||
Cash flows from financing activities: | |||||||||||
Net change in debt under Credit Facility | (7,000 | ) | 5,000 | ||||||||
Common stock repurchases | (426 | ) | (36 | ) | |||||||
Indirect repurchase of shares for minimum statutory tax withholdings | (429 | ) | (657 | ) | |||||||
Cash dividends paid | (1,635 | ) | (1,216 | ) | |||||||
Proceeds from issuance of common stock | 3 | - | |||||||||
Net cash (used in) provided by financing activities | (9,487 | ) | 3,091 | ||||||||
Net (decrease) increase in cash and cash equivalents | (11,671 | ) | 10 | ||||||||
Cash and cash equivalents at beginning of period | 18,674 | 18,664 | |||||||||
Cash and cash equivalents at end of period | $ | 7,003 | $ | 18,674 | |||||||
Source:
Sypris Solutions, Inc.
Anthony C. Allen, 502-329-2000
Chief
Financial Officer