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Note 21 - Segment Information
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

(21)

Segment Information

 

The Company is organized into two business segments, Sypris Technologies and Sypris Electronics. Our Chief Executive Officer (CEO) serves as our Chief Operating Decision Maker (CODM) and is responsible for reviewing segment performance and making decisions regarding resource allocation. Our CODM evaluates each segment’s performance based on metrics such as net revenue, gross profit, operating income and other key financial indicators, guiding strategic decisions to align with company-wide goals. On a monthly basis, the CODM considers budget-to-actual variances for gross profit and operating income when making decisions about allocating capital to the segments. The segments are each managed separately because of the distinctions between the products, markets, customers, technologies, and workforce skills of the segments. Sypris Technologies generates revenue primarily from the sale of forged, machined, welded and heat-treated steel components primarily for the heavy commercial vehicle and high-pressure energy pipeline applications. Sypris Electronics provides circuit card and box build manufacturing, high reliability manufacturing, systems assembly and integration, design for manufacturability and design to specification work to customers in the market for aerospace and defense, communications and space electronics. There was no intersegment net revenue recognized for any year presented.

 

The Company includes the unallocated costs of its corporate office, including the employment costs of its senior management team and other corporate personnel, administrative costs and net corporate interest expense incurred at the corporate level under the caption “General, corporate and other” in the table below. Such unallocated costs include those for centralized information technology, finance, legal and human resources support teams, certain professional fees, director fees, corporate office rent, certain self-insurance costs and recoveries, software license fees and various other administrative expenses that are not allocated to our reportable segments. The unallocated assets include cash and cash equivalents maintained in its domestic treasury accounts and the net book value of corporate facilities and related information systems. The unallocated liabilities consist primarily of the related party notes payable. Domestic income taxes are calculated at an entity level and are not allocated to our reportable segments. Corporate capital expenditures and depreciation and amortization include items attributable to the unallocated fixed assets of the corporate office and related information systems.

 

The following table presents financial information for the reportable segments of the Company (in thousands):

 

   

Year ended December 31,

  
   

2024

    

2023

  

Net revenue from unaffiliated customers:

                

Sypris Technologies

   $ 75,207     $ 77,920  

Sypris Electronics

     64,973       58,303  

Total net revenue

   $ 140,180     $ 136,223  
                 

Gross profit:

                

Sypris Technologies

   $ 12,824     $ 9,208  

Sypris Electronics

     7,066       8,040  

Total gross profit

   $ 19,890     $ 17,248  
                 

Operating income (loss):

                

Sypris Technologies

   $ 7,245     $ 3,327  

Sypris Electronics

     2,119       3,463  

General, corporate and other

     (6,437

)

     (5,821

)

Total operating income

   $ 2,927     $ 969  
                 

Interest expense, net:

                

Sypris Technologies

   $ 243     $ 245  

Sypris Electronics

     711       200  

General, corporate and other

     730       332  

Total interest expense

   $ 1,684     $ 777  
                 

Other expense (income), net:

                

Sypris Technologies

   $ 1,240     $ 1,145  

Sypris Electronics

     (16

)

     (14

)

General, corporate and other

     (7 )     (6 )

Total other expense, net

   $ 1,217     $ 1,125  
                 

Income (loss) before income taxes:

                

Sypris Technologies

   $ 6,005     $ 1,936  

Sypris Electronics

     1,423       3,277  

General, corporate and other

     (7,402 )     (6,146 )

Total income (loss) before income taxes

   $ 26     $ (933 )
                 

Depreciation and amortization:

                

Sypris Technologies

   $ 2,257     $ 2,280  

Sypris Electronics

     921       803  

General, corporate and other

     3       176  

Total depreciation and amortization

   $ 3,181     $ 3,259  
                 

Capital expenditures:

                

Sypris Technologies

   $ 697     $ 1,451  

Sypris Electronics

     375       688  

General, corporate and other

     11       0  

Total capital expenditures

   $ 1,083     $ 2,139  

 

 

   

December 31,

  
   

2024

    

2023

  

Total assets:

                

Sypris Technologies

   $ 35,013     $ 41,143  

Sypris Electronics

     76,405       84,576  

General, corporate and other

     7,958       3,623  

Total assets

   $ 119,376     $ 129,342  
                 

Total liabilities:

                

Sypris Technologies

   $ 18,104     $ 21,309  

Sypris Electronics

     68,780       77,272  

General, corporate and other

     12,911       8,294  

Total liabilities

   $ 99,795     $ 106,875  

 

The Company’s export sales from the U.S. totaled $7,354,000 and $3,538,000 in 2024 and 2023, respectively. Approximately $53,301,000 and $56,819,000 of net revenue in 2024 and 2023, respectively, and $6,956,000 and $10,135,000 of long lived assets at December 31, 2024 and 2023, respectively, and net assets of $20,419,000 and $21,398,000 at December 31, 2024 and 2023, respectively, relate to the Company’s international operations.