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295000 559000 0 8000 -295000 -551000 -1051000 -1000000 4000000 0 440000 0 0 116000 77000 33000 410000 408000 2022000 -1557000 -3588000 391000 18674000 19065000 SYPRIS SOLUTIONS INC 10-Q --12-31 20791544 false 0000864240 Yes No Smaller Reporting Company No 2015 Q1 2015-04-05 <table id="MTAB282" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="WIDTH: 36pt; VERTICAL-ALIGN: top"> <p id="PARA283" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(1)</b></font> </p> </td> <td style="VERTICAL-ALIGN: top"> <p id="PARA284" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Nature of Business</b></font> </p> </td> </tr> </table><br/><p id="PARA286" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">All references to &#8220;Sypris,&#8221; the &#8220;Company,&#8221; &#8220;we&#8221; or &#8220;our&#8221; include Sypris Solutions, Inc. and its wholly-owned subsidiaries. Sypris is a diversified provider of outsourced services and specialty products. The Company performs a wide range of manufacturing, engineering, design, and other technical services, often under multi-year, sole-source contracts with corporations and government agencies in the markets for truck components and assemblies and aerospace and defense electronics. The Company provides such services through its two segments, Sypris Technologies, Inc. (Sypris Technologies) and Sypris Electronics, LLC (Sypris Electronics). See Note 12, &#8220;Segment Data,&#8221; to the consolidated financial statements.</font> </p><br/> 2 <table id="TBL288" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="WIDTH: 36pt; VERTICAL-ALIGN: top"> <p id="PARA1515"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(2)</b></font> </p> </td> <td style="VERTICAL-ALIGN: top"> <p id="PARA1516"> <b><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Basis of Presentation</font></b> </p> </td> </tr> </table><br/><p id="PARA290" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The accompanying unaudited consolidated financial statements include the accounts of Sypris Solutions, Inc. and its wholly-owned subsidiaries, and have been prepared by the Company in accordance with the rules and regulations of the Securities and Exchange Commission. The Company&#8217;s operations are domiciled in the United States (U.S.), Mexico and the United Kingdom (U.K.) and serve a wide variety of domestic and international customers. All intercompany transactions and accounts have been eliminated. These unaudited consolidated financial statements reflect, in the opinion of management, all material adjustments (which include only normal recurring adjustments) necessary to fairly state the results of operations, financial position and cash flows for the periods presented, and the disclosures herein are adequate to make the information presented not misleading. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Actual results for the three months ended April&#160;5,&#160;2015 are not necessarily indicative of the results that may be expected for the year ending December&#160;31,&#160;2015. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements, and notes thereto, for the year ended December&#160;31,&#160;2014 as presented in the Company&#8217;s Annual Report on Form 10-K.</font> </p><br/> <table id="TBL292" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="WIDTH: 36pt; VERTICAL-ALIGN: top"> <p id="PARA1517"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(</b><b>3</b><b>)</b></font> </p> </td> <td style="VERTICAL-ALIGN: top"> <p id="PARA1518"> <b><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Recent Accounting Pronouncements</b> <b></b></font></b> </p> </td> </tr> </table><br/><p id="PARA294" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In April 2014, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued guidance that revises the definition of a discontinued operation. The revised definition limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on operations and financial results. The guidance also requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The guidance will apply to covered transactions that occur after 2014 and was optional for the initial reporting of disposals completed or approved in 2014.</font> </p><br/><p id="PARA296" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In May&#160;2014, the FASB issued Accounting Standards Update (&#8220;ASU&#8221;) No.&#160;2014-09, &#8220;Revenue from Contracts with Customers.&#8221; This ASU supersedes the revenue recognition requirements in &#8220;Accounting Standard Codification 605 - Revenue Recognition&#8221; and most industry-specific guidance. The standard requires that entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. The new guidance will also require new disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This ASU is effective for fiscal years beginning after December&#160;15, 2016, and for interim periods within those fiscal years and early adoption is not permitted. The guidance allows for either a full retrospective or a modified retrospective transition method. The Company is currently assessing the impact of the adoption of ASU 2014-09 on its results of operations, financial position and cash flows.</font> </p><br/><p id="PARA298" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In August 2014, the FASB issued ASU No. 2014-15 Presentation of Financial Statements&#8212;Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity&#8217;s Ability to Continue as a Going Concern, which requires management to evaluate whether there are conditions or events that raise substantial doubt about the entity&#8217;s ability to continue as a going concern, and to provide certain disclosures when it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. ASU 2014-15 is effective for the annual period ended December 31, 2016 and for annual periods and interim periods thereafter with early adoption permitted. We are currently evaluating the new guidance to determine the impact it may have on our consolidated financial statements.</font> </p><br/> <table id="TBL300" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="WIDTH: 36pt; VERTICAL-ALIGN: top"> <p id="PARA1519"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(</b><b>4</b><b>)</b></font> </p> </td> <td style="VERTICAL-ALIGN: top"> <p id="PARA1520"> <b><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Loss of a Key Customer and Management&#8217;s Recovery Plans</font></b> </p> </td> </tr> </table><br/><p id="PARA302" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Our supply agreement with Dana Holding Corporation (&#8220;Dana&#8221;) was originally scheduled to expire on December 31, 2014. For the year ended December&#160;31,&#160;2014, Dana represented approximately 59% of our net revenue.</font> </p><br/><p id="PARA304" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In July 2013, Sypris and Dana signed an amended and restated supply agreement to extend the supply agreement term beyond December&#160;31,&#160;2014, the binding effect of which is currently in dispute. Dana has repudiated this July 2013 agreement, and Dana has ceased ordering any components from us effective December&#160;31,&#160;2014. Sypris disputes Dana&#8217;s ability to do so and is seeking to recover its lost margins and additional remedies with respect to the revenues to which Sypris was entitled under the renewed agreement.</font> </p><br/><p id="PARA306" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Dana initiated an ancillary action in Ohio state court challenging the arbitrability of the existence and enforceability of the amended and restated July 2013 supply agreement on January&#160;17,&#160;2014. The parties have conducted discovery, and the Ohio trial court has granted an initial motion for judgment on the pleadings or summary judgment, which Sypris has appealed. If the case goes to trial and if ruled in the Company&#8217;s favor, the dispute would revert to an arbitrator to determine damages.</font> </p><br/><p id="PARA308" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Additionally, the parties have also asserted various damages claims against each other arising out of their prior supply agreement and have sought the assistance of an arbitrator in connection with these disputes. The parties had an arbitration hearing in January 2015, and the ruling was received on April&#160;29,&#160;2015, awarding Sypris $505,000.</font> </p><br/><p id="PARA310" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">As a result of the dispute with Dana and the loss of the Dana business, the Company has taken significant actions during the fourth quarter of 2014 and the first quarter of 2015, including but not limited to the following: (i) bid on significant new business opportunities with existing and potential customers resulting from the strength of the commercial vehicle market and a perceived shift in market share among tier one suppliers, (ii) reduced workforce at the locations most impacted by the loss of Dana, (iii) reduced employment costs by reduced work schedules, senior management pay reductions, deferral of merit increases and certain benefit payments, and (iv) utilized labor for preventative maintenance on equipment and facilities, deployment of Toyota Production System management and production practices and refurbished the overall appearance of facilities to attract customers. The Company has engaged an investment banking firm to provide financial advisory services in connection with its effort to secure new subordinated debt. The Company has also engaged a commercial real estate firm to provide advisory and brokerage services related to the potential disposition of certain real property owned by the Company. However, there can be no assurance that our plans to mitigate the loss and to effectively manage our costs during the transition will be successful. Additionally, the Company amended its Credit Facility in March 2015 to support management&#8217;s plans and provide liquidity through January 2016 (see Note 11 &#8220;Debt,&#8221; to the consolidated financial statements).</font> </p><br/> 0.59 505000 <table id="TBL312" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="WIDTH: 36pt; VERTICAL-ALIGN: top"> <p id="PARA1521"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(</b><b>5</b><b>)</b></font> </p> </td> <td style="VERTICAL-ALIGN: top"> <p id="PARA1522"> <b><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Milestone Revenue Recognition</font></b> </p> </td> </tr> </table><br/><p id="PARA314" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Company periodically enters into research and development contracts with customers related primarily to key encryption products. When the contracts provide for milestone or other interim payments, the Company will recognize revenue under the milestone method in accordance with Accounting Standards Codification (&#8220;ASC&#8221;) 605-28 <i>Revenue Recognition, Milestone Method</i>. The milestone method requires the Company to deem all milestone payments within each contract as either substantive or non-substantive. That conclusion is determined based upon a thorough review of each contract and the deliverables to which the Company has committed in each contract. For substantive milestones, the Company concludes that upon achievement of each milestone, the amount of the corresponding defined payment is commensurate with the effort required to achieve such milestone or the value of the delivered item. The payment associated with each milestone relates solely to past performance and is deemed reasonable upon consideration of the deliverables and the payment terms within the contract. Milestones may include, for example, the successful completion of design review or technical review, the submission and acceptance of technical drawings, delivery of hardware, software or regulatory agency certifications. The Company had one such milestone contract in process at December,&#160;31,&#160;2014. All milestones under that contract were deemed substantive. During the first quarters ended April&#160;5,&#160;2015 and March&#160;30,&#160;2014, revenue recognized through the achievement of multiple milestones amounted to $300,000 and $1,275,000, respectively. There are no performance, cancellation, termination or refund provisions in the arrangement that contain material financial consequences to the Company. As of April&#160;5,&#160;2015, all contracts utilizing the milestone method were completed.</font> </p><br/> 300000 1275000 <table id="TBL316" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="WIDTH: 36pt; VERTICAL-ALIGN: top"> <p id="PARA1523"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(</b><b>6</b><b>)</b></font> </p> </td> <td style="VERTICAL-ALIGN: top"> <p id="PARA1524"> <b><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Dana Claim</font></b> </p> </td> </tr> </table><br/><p id="PARA318" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">On March&#160;3,&#160;2006, Dana and 40 of its U.S. subsidiaries, filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. On August&#160;7,&#160;2007, the Company entered into a comprehensive settlement agreement with Dana to resolve all outstanding disputes between the parties, terminate previously approved arbitration payments and replace three existing supply agreements with a single, revised contract running through 2014. In addition, Dana provided the Company with an allowed general unsecured non-priority claim in the face amount of $89,900,000 (the &#8220;Claim&#8221;).</font> </p><br/><p id="PARA320" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Claim provided to the Company was agreed to by the Company and Dana as consideration for the aggregate economic impact of the various elements the two parties were negotiating. After the aggregate Claim value of $89,900,000 was established, the Company recorded the claim at the estimated fair value of $76,483,000 and allocated the estimated fair value to each commercial issue negotiated. The revenues and resulting net income associated with each of those issues requiring the Company&#8217;s continued involvement were deferred and were recognized over the applicable period of the involvement. For the three months ended March&#160;30,&#160;2014, the Company recognized into revenue $2,164,000 related to the Claim. The Claim was fully amortized as of December&#160;31,&#160;2014.</font> </p><br/> 40 3 89900000 89900000 76483000 2164000 <table id="TBL322" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="WIDTH: 36pt; VERTICAL-ALIGN: top"> <p id="PARA1525"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(</b><b>7</b><b>)</b></font> </p> </td> <td style="VERTICAL-ALIGN: top"> <p id="PARA1526"> <b><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other (Income), Net</font></b> </p> </td> </tr> </table><br/><p id="PARA324" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">During the three months ended April&#160;5,&#160;2015, the company recognized net foreign currency related gains of $134,000 related to the U.S. dollar denominated monetary asset position of our Mexican subsidiaries for which the Mexican peso is the functional currency. During the three months ended March&#160;30,&#160;2014, the Company recognized net gains of $591,000 within Sypris Technologies from the receipt of federal grant funds for improvements made under a flood relief program. Additionally, the Company recognized foreign currency related losses of $31,000 in the three months ended March&#160;30,&#160;2014. These gains and losses are included in other (income), net on the consolidated statements of operations.</font> </p><br/> 134000 591000 -31000 <table id="TBL326" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="WIDTH: 36pt; VERTICAL-ALIGN: top"> <p id="PARA1527"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(</b><b>8</b><b>)</b></font> </p> </td> <td style="VERTICAL-ALIGN: top"> <p id="PARA1528"> <b><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(Loss)</b> <b>Earnings Per Common Share</b></font></b> </p> </td> </tr> </table><br/><p id="PARA328" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends.</font> </p><br/><p id="PARA330" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Our potentially dilutive securities include potential common shares related to our stock options and restricted stock. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Diluted earnings per share excludes the impact of common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. For the three months ended April&#160;5,&#160;2015, diluted weighted average common shares do not include the impact of any outstanding stock options and unvested compensation-related shares because the effect of these items on diluted net loss would be anti-dilutive. 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FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1205.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="nowrap"> &#160; </td> <td id="TBL1205.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1205.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1205.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1205.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; 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BACKGROUND-COLOR: #cceeff"> $ </td> <td id="TBL1220.finRow.7.amt.2" style="WIDTH: 13%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #cceeff"> (0.66 </td> <td id="TBL1220.finRow.7.trail.2" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="nowrap"> ) </td> <td id="TBL1220.finRow.7.lead.3" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1220.finRow.7.symb.3" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> $ </td> <td id="TBL1220.finRow.7.amt.3" style="WIDTH: 13%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #cceeff"> 0.08 </td> <td id="TBL1220.finRow.7.trail.3" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="nowrap"> &#160; </td> </tr> <tr id="TBL1220.finRow.8" style="BACKGROUND-COLOR: #ffffff"> <td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> &#160; 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FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="nowrap"> ) </td> </tr> <tr id="TBL1205.finRow.6" style="BACKGROUND-COLOR: #ffffff"> <td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff"> <p id="PARA1199" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Less dividends declared attributed to restricted awarded holders</font> </p> </td> <td id="TBL1205.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1205.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1205.finRow.6.amt.2" style="FONT-SIZE: 10pt; 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VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="nowrap"> &#160; </td> </tr> <tr id="TBL1220.finRow.10" style="BACKGROUND-COLOR: #cceeff"> <td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> <p id="PARA1217" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Weighted average shares outstanding &#8211; diluted</font> </p> </td> <td id="TBL1220.finRow.10.lead.2" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1220.finRow.10.symb.2" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1220.finRow.10.amt.2" style="WIDTH: 13%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; BACKGROUND-COLOR: #cceeff"> 19,650 </td> <td id="TBL1220.finRow.10.trail.2" style="WIDTH: 1%; 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TEXT-ALIGN: center" colspan="2"> <b>December 31,</b> </td> <td id="TBL1229.finRow.1.trail.D3"> <b>&#160;</b> </td> </tr> <tr> <td> <b>&#160;</b> </td> <td id="TBL1229.finRow.2.lead.D2"> <b>&#160;</b> </td> <td id="TBL1229.finRow.2.amt.D2" style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center" colspan="2"> <b>2015</b> </td> <td id="TBL1229.finRow.2.trail.D2" style="PADDING-BOTTOM: 1px"> <b>&#160;</b> </td> <td id="TBL1229.finRow.2.lead.D3"> <b>&#160;</b> </td> <td id="TBL1229.finRow.2.amt.D3" style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center" colspan="2"> <b>2014</b> </td> <td id="TBL1229.finRow.2.trail.D3" style="PADDING-BOTTOM: 1px"> <b>&#160;</b> </td> </tr> <tr style="BACKGROUND-COLOR: #ffffff"> <td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 68%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1229.finRow.4.lead.2" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> &#160; 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BACKGROUND-COLOR: #cceeff"> <p id="PARA1224" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Raw materials</font> </p> </td> <td id="TBL1229.finRow.4.lead.2-0" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1229.finRow.4.symb.2-0" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> $ </td> <td id="TBL1229.finRow.4.amt.2" style="WIDTH: 13%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #cceeff"> 16,797 </td> <td id="TBL1229.finRow.4.trail.2-0" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="nowrap"> &#160; </td> <td id="TBL1229.finRow.4.lead.3-0" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1229.finRow.4.symb.3-0" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> $ </td> <td id="TBL1229.finRow.4.amt.3-0" style="WIDTH: 13%; 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BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1229.finRow.7.symb.3" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1229.finRow.7.amt.3" style="WIDTH: 13%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"> (6,349 </td> <td id="TBL1229.finRow.7.trail.3" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="nowrap"> ) </td> </tr> <tr style="BACKGROUND-COLOR: #cceeff"> <td style="BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1229.finRow.8.lead.2" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1229.finRow.8.symb.2" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #cceeff"> $ </td> <td id="TBL1229.finRow.8.amt.2" style="WIDTH: 13%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; 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</td> <td id="TBL1229.finRow.4.amt.3" style="WIDTH: 13%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1229.finRow.4.trail.3" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="nowrap"> &#160; </td> </tr> <tr style="BACKGROUND-COLOR: #cceeff"> <td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 68%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> <p id="PARA1224" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Raw materials</font> </p> </td> <td id="TBL1229.finRow.4.lead.2-0" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1229.finRow.4.symb.2-0" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> $ </td> <td id="TBL1229.finRow.4.amt.2" style="WIDTH: 13%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #cceeff"> 16,797 </td> <td id="TBL1229.finRow.4.trail.2-0" style="WIDTH: 1%; 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VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1229.finRow.5.symb.2" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1229.finRow.5.amt.2" style="WIDTH: 13%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"> 13,564 </td> <td id="TBL1229.finRow.5.trail.2" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="nowrap"> &#160; </td> <td id="TBL1229.finRow.5.lead.3" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1229.finRow.5.symb.3" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1229.finRow.5.amt.3" style="WIDTH: 13%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"> 11,702 </td> <td id="TBL1229.finRow.5.trail.3" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="nowrap"> &#160; </td> </tr> <tr style="BACKGROUND-COLOR: #cceeff"> <td style="FONT-SIZE: 10pt; 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</td> <td id="TBL1240.finRow.7.amt.3" style="WIDTH: 13%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"> 2,100 </td> <td id="TBL1240.finRow.7.trail.3" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="nowrap"> &#160; </td> </tr> <tr id="TBL1240.finRow.8" style="BACKGROUND-COLOR: #cceeff"> <td style="BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1240.finRow.8.lead.2" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1240.finRow.8.symb.2" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1240.finRow.8.amt.2" style="WIDTH: 13%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; BACKGROUND-COLOR: #cceeff"> 188,779 </td> <td id="TBL1240.finRow.8.trail.2" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; 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FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="nowrap"> &#160; </td> </tr> <tr style="BACKGROUND-COLOR: #ffffff"> <td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff"> <p id="PARA1257" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Sypris Technologies</font> </p> </td> <td id="TBL1303.finRow.4.lead.2-0" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1303.finRow.4.symb.2-0" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> $ </td> <td id="TBL1303.finRow.4.amt.2-0" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 13%; 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FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1303.finRow.14.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 13%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"> (2,615 </td> <td id="TBL1303.finRow.14.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="nowrap"> ) </td> </tr> <tr style="BACKGROUND-COLOR: #cceeff"> <td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.15.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.15.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #cceeff"> $ </td> <td id="TBL1303.finRow.15.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 13%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; BACKGROUND-COLOR: #cceeff"> (12,893 </td> <td id="TBL1303.finRow.15.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="nowrap"> ) </td> <td id="TBL1303.finRow.15.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.15.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #cceeff"> $ </td> <td id="TBL1303.finRow.15.amt.3" style="FONT-SIZE: 10pt; 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FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.19.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.19.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 13%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.19.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="nowrap"> &#160; </td> <td id="TBL1303.finRow.19.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.19.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; 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</td> <td id="TBL1303.finRow.7.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.7.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; BACKGROUND-COLOR: #cceeff"> &#160; </td> </tr> <tr style="BACKGROUND-COLOR: #ffffff"> <td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff"> <p id="PARA1266" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Sypris Technologies</font> </p> </td> <td id="TBL1303.finRow.8.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1303.finRow.8.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; 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FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="nowrap"> &#160; </td> </tr> <tr style="BACKGROUND-COLOR: #cceeff"> <td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff"> <p id="PARA1269" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Sypris Electronics</font> </p> </td> <td id="TBL1303.finRow.9.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.9.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.9.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 13%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; BACKGROUND-COLOR: #cceeff"> 947 </td> <td id="TBL1303.finRow.9.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="nowrap"> &#160; </td> <td id="TBL1303.finRow.9.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.9.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.9.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 13%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; BACKGROUND-COLOR: #cceeff"> (590 </td> <td id="TBL1303.finRow.9.trail.3" style="FONT-SIZE: 10pt; 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MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="nowrap"> &#160; </td> </tr> <tr style="BACKGROUND-COLOR: #cceeff"> <td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> <p id="PARA1274" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Operating (loss) income:</font> </p> </td> <td id="TBL1303.finRow.11.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.11.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.11.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.11.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.11.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.11.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.11.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.11.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; BACKGROUND-COLOR: #cceeff"> &#160; </td> </tr> <tr style="BACKGROUND-COLOR: #ffffff"> <td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff"> <p id="PARA1275" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Sypris Technologies</font> </p> </td> <td id="TBL1303.finRow.12.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1303.finRow.12.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> $ </td> <td id="TBL1303.finRow.12.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 13%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"> (9,368 </td> <td id="TBL1303.finRow.12.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="nowrap"> ) </td> <td id="TBL1303.finRow.12.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1303.finRow.12.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> $ </td> <td id="TBL1303.finRow.12.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 13%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"> 8,113 </td> <td id="TBL1303.finRow.12.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="nowrap"> &#160; </td> </tr> <tr style="BACKGROUND-COLOR: #cceeff"> <td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff"> <p id="PARA1278" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Sypris Electronics</font> </p> </td> <td id="TBL1303.finRow.13.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"> &#160; </td> <td id="TBL1303.finRow.13.symb.2" style="FONT-SIZE: 10pt; 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The Company&#8217;s warranty liability, which is included in accrued liabilities in the accompanying balance sheets, as of April&#160;5</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">,&#160;2015</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">and December 31, 2014 was $811,000 and $825,000, respectively. The Company&#8217;s warranty expense for the three months ended April&#160;5,&#160;2015 and March&#160;30,&#160;2014 was $64,000 and $67,000, respectively.</font> </p><br/><p id="PARA470" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Additionally, the Company sells three and five-year extended warranties for certain link encryption products. The revenue from the extended warranties is deferred and recognized ratably over the contractual term. As of April&#160;5,&#160;2015 and December&#160;31,&#160;2014, the Company had deferred revenue of $749,000 and $839,000, respectively, related to extended warranties.</font> </p><br/><p id="PARA472" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Company bears insurance risk as a member of a group captive insurance entity for certain general liability, automobile and workers&#8217; compensation insurance programs and a self-insured employee health program. The Company records estimated liabilities for its insurance programs based on information provided by the third-party plan administrators, historical claims experience, expected costs of claims incurred but not paid, and expected costs to settle unpaid claims. The Company monitors its estimated insurance-related liabilities on a quarterly basis. As facts change, it may become necessary to make adjustments that could be material to the Company&#8217;s consolidated results of operations and financial condition. The Company believes that its present insurance coverage and level of accrued liabilities are adequate.</font> </p><br/><p id="PARA474" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Company is involved in certain litigation and contract issues arising in the normal course of business. While the outcome of these matters cannot, at this time, be predicted in light of the uncertainties inherent therein, management does not expect that these matters will have a material adverse effect on the consolidated financial position or results of operations of the Company, although the loss of the Dana business, which is the subject of current litigation, could have such an effect (see Note 4 &#8220;Loss of a Significant Customer and Management&#8217;s Recovery Plans&#8221;).</font> </p><br/><p id="PARA476" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Company has various current and previously-owned facilities subject to a variety of environmental regulations. The Company has received certain indemnifications either from companies previously owning these facilities or from purchasers of those facilities. As of April&#160;5,&#160;2015 and December&#160;31,&#160;2014, no amounts were accrued for any environmental matters.</font> </p><br/><p id="PARA478" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">As of April&#160;5,&#160;2015, the Company had outstanding purchase commitments of approximately $5,542,000, primarily for the acquisition of inventory and manufacturing equipment. As of April&#160;5,&#160;2015, the Company also had outstanding letters of credit approximating $755,000 primarily under the aforementioned captive insurance program.</font> </p><br/> 811000 825000 64000 67000 P3Y P5Y 749000 839000 0 0 5542000 755000 <table id="TBL480" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="WIDTH: 36pt; VERTICAL-ALIGN: top"> <p id="PARA1553"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(1</b><b>4</b><b>)</b></font> </p> </td> <td style="VERTICAL-ALIGN: top"> <p id="PARA1554"> <b><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Income Taxes</font></b> </p> </td> </tr> </table><br/><p id="PARA482" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The provision for income taxes includes federal, state, local and foreign taxes. The Company&#8217;s effective tax rate varies from period to period due to the proportion of foreign and domestic pre-tax income expected to be generated by the Company. The Company provides for income taxes for its domestic operations at a statutory rate of 35% and for its foreign operations at a statutory rate of 30% in 2015 and 2014. 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ASC 740 requires that a valuation allowance be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The Company evaluates its deferred tax position on a quarterly basis and valuation allowances are provided as necessary. During this evaluation, the Company reviews its forecast of income in conjunction with other positive and negative evidence surrounding the realizability of its deferred tax assets to determine if a valuation allowance is needed. Based on its current forecast, the Company has established a valuation allowance against the domestic net deferred tax asset. 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WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="nowrap"> ) </td> </tr> <tr id="TBL1347.finRow.6" style="BACKGROUND-COLOR: #ffffff"> <td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> <p id="PARA1344" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Accumulated other comprehensive loss</font> </p> </td> <td id="TBL1347.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1347.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #ffffff"> $ </td> <td id="TBL1347.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 13%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"> (25,693 </td> <td id="TBL1347.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="nowrap"> ) </td> <td id="TBL1347.finRow.6.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"> &#160; </td> <td id="TBL1347.finRow.6.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #ffffff"> $ </td> <td id="TBL1347.finRow.6.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 13%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"> (25,035 </td> <td id="TBL1347.finRow.6.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="nowrap"> ) </td> </tr> </table> -7923000 -7265000 17584000 17584000 186000 186000 <table style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="WIDTH: 36pt; VERTICAL-ALIGN: top"> <p id="PARA1559"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(1</b><b>7</b><b>)</b></font> </p> </td> <td style="VERTICAL-ALIGN: top"> <p id="PARA1560"> <b><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Fair Value of Financial Instruments</font></b> </p> </td> </tr> </table><br/><p id="PARA521" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Cash, accounts receivable, accounts payable and accrued liabilities are reflected in the consolidated financial statements at their carrying amount which approximates fair value because of the short-term maturity of those instruments. The carrying amount of debt outstanding at April&#160;5,&#160;2015 under the Credit Facility and the related party note payable approximates fair value because borrowings mature in January 2016 and April 2016, respectively.</font> </p><br/> <table id="TBL523" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="WIDTH: 36pt; VERTICAL-ALIGN: top"> <p id="PARA1561"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(1</b><b>8</b><b>)</b></font> </p> </td> <td style="VERTICAL-ALIGN: top"> <p id="PARA1562"> <b><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Subsequent Events</b></font></b> </p> </td> </tr> </table><br/><p id="PARA525" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">On December 30, 2013, Sypris filed a Notice of Supplemental Claims in an arbitration proceeding, seeking up to approximately $9.0&#160;million in damages for Dana&#8217;s alleged breach of the parties&#8217; original 2007 supply agreement; Dana filed a counterclaim for certain unpaid price rebates in the amount of approximately $3.0&#160;million. The parties had an arbitration hearing in January 2015, and the ruling was received on April&#160;29,&#160;2015, awarding Sypris $505,000.</font> </p><br/> 9000000 3000000