Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - SYPRIS SOLUTIONS INC | sypr20160819_8k.htm |
Exhibit 99.1
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Sypris Solutions, Inc. |
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Unaudited Pro Forma Condensed Consolidated Statements of Operations |
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For the Six Months Ended July 3, 2016 |
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(in thousands, except for per share data) |
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Divested |
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Historical |
Business (a) |
Pro Forma |
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Net revenue |
$ | 50,442 | $ | 9,310 | $ | 41,132 | ||||||
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Cost of sales |
48,993 | 7,297 | 41,696 | |||||||||
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Gross profit |
1,449 | 2,013 | (564 | ) | ||||||||
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Selling, general and administrative |
11,744 | 1,445 | 10,299 | |||||||||
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Research and development |
214 | 178 | 36 | |||||||||
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Nonrecurring expense, net |
522 | - | 522 | |||||||||
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Operating (loss) income |
(11,031 | ) | 390 | (11,421 | ) | |||||||
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Interest expense, net |
1,840 | 1,237 | 603 | |||||||||
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Other (income), net |
(2,571 | ) | - | (2,571 | ) | |||||||
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(Loss) income before income taxes |
(10,300 | ) | (847 | ) | (9,453 | ) | ||||||
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Income tax expense |
2 | - | 2 | |||||||||
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Net (loss) income |
$ | (10,302 | ) | $ | (847 | ) | $ | (9,455 | ) | |||
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Loss per common share: |
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Basic |
$ | (0.52 | ) | $ | (0.48 | ) | ||||||
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Diluted |
$ | (0.52 | ) | $ | (0.48 | ) | ||||||
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Weighted average shares outstanding: |
||||||||||||
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Basic |
19,725 | 19,725 | ||||||||||
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Diluted |
19,725 | 19,725 | ||||||||||
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(a) |
To eliminate the operating results of the product lines sold to Analog Devices, Inc. and to eliminate the interest expense allocated to the debt repaid as a result of the disposition for the six month period ended July 3, 2016. |
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Sypris Solutions, Inc. |
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Unaudited Pro Forma Condensed Consolidated Statements of Operations |
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For the Year Ended December 31, 2015 |
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(in thousands, except for per share data) |
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Divested |
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Historical |
Business (a) |
Pro Forma |
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Net revenue |
$ | 145,323 | $ | 16,715 | $ | 128,608 | ||||||
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Cost of sales |
145,005 | 14,982 | 130,023 | |||||||||
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Gross profit |
318 | 1,733 | (1,415 | ) | ||||||||
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Selling, general and administrative |
27,845 | 4,092 | 23,753 | |||||||||
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Research and development |
779 | 673 | 106 | |||||||||
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Severance and equipment relocation costs |
1,338 | - | 1,338 | |||||||||
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Operating loss |
(29,644 | ) | (3,032 | ) | (26,612 | ) | ||||||
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Interest expense, net |
4,223 | 3,289 | 934 | |||||||||
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Other (income), net |
(8,643 | ) | - | (8,643 | ) | |||||||
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Loss before income taxes |
(25,224 | ) | (6,321 | ) | (18,903 | ) | ||||||
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Income tax expense, net |
1,992 | - | 1,992 | |||||||||
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Net loss |
$ | (27,216 | ) | $ | (6,321 | ) | $ | (20,895 | ) | |||
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Loss per common share: |
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Basic |
$ | (1.38 | ) | $ | (1.06 | ) | ||||||
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Diluted |
$ | (1.38 | ) | $ | (1.06 | ) | ||||||
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Weighted average shares outstanding: |
||||||||||||
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Basic |
19,688 | 19,688 | ||||||||||
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Diluted |
19,688 | 19,688 | ||||||||||
|
(a) |
To eliminate the operating results of the product lines sold to Analog Devices, Inc. and to eliminate the interest expense allocated to the debt repaid as a result of the disposition for the year ended December 31, 2015. |
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Sypris Solutions, Inc. |
|
Unaudited Pro Forma Condensed Consolidated Statements of Operations |
|
For the Year Ended December 31, 2014 |
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(in thousands, except for per share data) |
|
Divested |
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Historical |
Business (a) |
Pro Forma |
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Net revenue |
$ | 354,776 | $ | 15,530 | $ | 339,246 | ||||||
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Cost of sales |
315,946 | 14,722 | 301,224 | |||||||||
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Gross profit |
38,830 | 808 | 38,022 | |||||||||
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Selling, general and administrative |
35,531 | 4,516 | 31,015 | |||||||||
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Research and development |
579 | 376 | 203 | |||||||||
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Severance and equipment relocation costs |
- | - | - | |||||||||
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Operating loss |
2,720 | (4,084 | ) | 6,804 | ||||||||
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Interest expense, net |
617 | 638 | (21 | ) | ||||||||
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Other (income), net |
(1,282 | ) | - | (1,282 | ) | |||||||
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Loss before income taxes |
3,385 | (4,722 | ) | 8,107 | ||||||||
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Income tax expense, net |
4,569 | - | 4,569 | |||||||||
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Net loss |
$ | (1,184 | ) | $ | (4,722 | ) | $ | 3,538 | ||||
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Loss per common share: |
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Basic |
$ | (0.06 | ) | $ | 0.18 | |||||||
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Diluted |
$ | (0.06 | ) | $ | 0.18 | |||||||
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Weighted average shares outstanding: |
||||||||||||
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Basic |
19,586 | 19,586 | ||||||||||
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Diluted |
19,586 | 19,586 | ||||||||||
|
(a) |
To eliminate the operating results of the product lines sold to Analog Devices, Inc. and to eliminate the interest expense allocated to the debt repaid as a result of the disposition for the year ended December 31, 2014. |
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Sypris Solutions, Inc. |
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Unaudited Pro Forma Condensed Consolidated Balance Sheets |
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As of July 3, 2016 |
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(in thousands) |
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Divested |
Pro Forma |
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Historical |
Business (a) |
Adjustments (b) |
Pro Forma |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ | 1,819 | $ | 37,548 | $ | (9,710 | ) | $ | 29,657 | |||||||
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Restricted cash |
6,000 | 1,500 | (6,000 | ) | 1,500 | |||||||||||
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Accounts receivable, net |
12,277 | - | - | 12,277 | ||||||||||||
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Inventory, net |
20,622 | (4,534 | ) | - | 16,088 | |||||||||||
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Other current assets |
3,624 | (637 | ) | (543 | ) | 2,444 | ||||||||||
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Total current assets |
44,342 | 33,877 | (16,253 | ) | 61,966 | |||||||||||
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Property, plant and equipment, net |
22,330 | (776 | ) | - | 21,554 | |||||||||||
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Other assets |
3,142 | - | - | 3,142 | ||||||||||||
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Total assets |
$ | 69,814 | $ | 33,101 | $ | (16,253 | ) | $ | 86,662 | |||||||
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
$ | 10,949 | $ | - | $ | - | $ | 10,949 | ||||||||
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Accrued liabilities |
14,504 | - | - | 14,504 | ||||||||||||
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Revolving credit facility |
4,853 | - | (4,853 | ) | - | |||||||||||
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Current portion of long-term debt and capital lease obligation |
1,912 | - | (1,714 | ) | 198 | |||||||||||
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Total current liabilities |
32,218 | - | (6,567 | ) | 25,651 | |||||||||||
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Long-term debt and capital lease obligation |
10,862 | - | (7,796 | ) | 3,066 | |||||||||||
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Note payable - related party |
6,500 | - | - | 6,500 | ||||||||||||
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Other liabilities |
10,820 | - | - | 10,820 | ||||||||||||
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Total liabilities |
60,400 | - | (14,363 | ) | 46,037 | |||||||||||
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Total stockholders’ equity |
9,414 | 33,101 | (1,890 | ) | 40,625 | |||||||||||
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Total liabilities and stockholders’ equity |
$ | 69,814 | $ | 33,101 | $ | (16,253 | ) | $ | 86,662 | |||||||
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(a) |
Represents cash proceeds from the sale of assets to Analog Devices Inc. consisting of a sale price of $42,000, net of estimated transaction-related costs of $2,952 and $1,500 reserved in escrow. Also reflects the elimination of assets included in the business lines sold to Analog Devices, Inc. The tax impacts related to the proceeds from the sale have not been included in the unaudited pro forma condensed consolidated balance sheet because some significant facts are uncertain at this time. Therefore, income tax-related adjustments could materially change as we finalize our accounting to be reported in the annual report on Form 10-K for the fiscal year ending December 31, 2016. |
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(b) |
Represents the repayment of amounts outstanding under the Company's Revolving Credit Agreement, the pay off and retirement of the Term Loan and the write-off of unamortized debt costs of $1,890. Also includes the release of $6,000 from a restricted cash account held as additional collateral for the Term Loan. |