Good day, and welcome to the Sypris Solutions Incorporated Conference Call. Today's call is being recorded. At this time for opening remarks, I would like to turn the call over to the President and Chief Executive Officer, Mr. Jeffrey Gill. Please go ahead, sir.

Thank you, Jennifer, and good morning, everyone. Brian Lutes, Tony Allen and I would like to welcome you to this call, the purpose of which is to review the trends reflected in the company's financial results for the first quarter of 2012. For those of you who have access to our PowerPoint presentation this morning, please advance to Slide 2 now. We always begin these calls with a note that some of what we might discuss here today may include projections and other forward-looking statements. No assurance can be given that these projections and statements will be achieved, and actual results could differ materially from those projected as a result of several factors. These factors are included in the company's filings with the Securities and Exchange Commission. In compliance with Regulation G, you can access our website at sypris.com to review the definitions of any non-GAAP financial measures that may be discussed during this call. With these qualifications in mind, we'd now like to proceed with the business discussion. Please advance to Slide 3. I will lead you through the first half of our presentation this morning, starting with an overview of the highlights for the quarter, to be followed by a brief discussion of each of our 2 business segments. Brian will then provide you with a more detailed review of our financial results for the quarter. Now let's begin with the overview on Slide 4. We're pleased to report that the company continued to make important progress during the quarter. Revenue increased 27.2% to $96.5 million during the period, up from $75.8 million in the first quarter of 2011, and up 15.4% sequentially from the fourth quarter of last year. Gross profit rose 53.6% to $12.5 million, up from $8.1 million in the first quarter of last year,…

Great. Thanks, Jeff. Good morning, everyone. I'd like to discuss with you the highlights of our first quarter financial results for both segments. I'm not -- I'll discuss not only the results in the context of the prior year that were important, highlight some of our sequential progress as well. To follow along, I'd ask you to advance to Slide 9. For the first quarter, consolidated revenue was $96.5 million. This is up $20.7 million or 27% from the prior year period, as market conditions for commercial vehicles and trailers continued their ongoing strength and drove revenue growth of 39% within our Industrial Group segment. Gross profit for the quarter was $12.5 million. This is up $4.4 million or 54% from the prior year period and driven by the positive conversion on the incremental sales in our Industrial segment and certainly enabled by the vastly improved supply chain cost structure, as well as sustained production efficiencies across our manufacturing sites. For the quarter, EBITDA came in at $9.7 million. This is up $2.4 million or 32% from the prior year period. And finally, earnings per diluted share improved to $0.27 from $0.10 or this was an increase of $0.17 from the prior year period and certainly provides a basis for continued optimism and our ability to drive sustained profitability on a go forward basis. Let me talk about our consolidated results in the context of the sequential view and ask you to advance to Slide 10. Revenue improved $12.9 million or 15% from the fourth quarter and this reflected revenue growth in both of our segments. The gross profit improved $3.8 million or 44% and this was driven by the industrial group's conversion on increased sales, as well as A&D's improvement from what was a difficult fourth quarter. As a…

[Operator Instructions] And we'll go to Jim Ricchiuti with Needham & Company.

A few questions on both businesses. Maybe we can start off with the Industrial business. Jeff, when you talk about above market growth, I'm not completely clear right now on what the growth looks like for Class 8 and trailer. It looks like FTR may have reset a little bit lower versus say, a few months ago. What's the latest for 2012 in terms of the year-over-year?

Let me take just a look here.

And then Brian, maybe while Jeff's doing that, I'm struggling a little bit with the R&D level. When you say R&D getting, I believe you said back to 5% to 6% of revenues, that's of the A&D group revenues.

Yes, it is.

Okay. Okay. But even with that, you're looking for a pretty good step up in R&D. Does that start in Q2?

We see it resuming in Q2, Jim. We did a reset in Q1, which is very typical in the programs with the customers that we're underway with. And we see that simply as a step ramp in, beginning in Q2.

Got it. And maybe just continuing on that part of the business, is it fair to say that even with the -- what looked like a nice sequential improvement over Q4 revenue wise, that it still would be challenging for the business overall to be up year-over-year in the A&D? Or has the booking strength been better than expected, where you might show some improvement year-over-year? It sounds like you're going to continue to see sequential improvement both in revenues and profitability.

Well, what we're seeing, Jim, really is that as we talked about the order activity in Q1, that it's a progressive recovery, and we would also see revenue commensurate with that on a go forward basis. But in terms of the revenue growth, I think it's hard for us to align a number right now in terms of the unknown or the uncertainty we've been talking about the last few quarters.

Got it. And Jeff, if you don't have your hands on that data, that's fine. I can circle back to you off-line.

Jim, FTR's forecasting an 8% year-over-year increase.

And that's in heavy-duty?

That's in heavy.

Got it. When you guys cited -- it looks like there has been a little bit of a slowdown in order rates in the market, in the truck market. Have you begun to see that? How does that impact you? When do you begin to see that in your bookings? And how does that affect the year overall for you?

Well, at the moment, things remain quite positive. And I think that when people refer to the slowdown, they're talking about primarily the February, March, April type numbers and those numbers were running well ahead of the forecast for the year. And so when we look at it, Jim, we look at 2 things. One is we keep an eye on our order boards to make sure that we're running at the right rate, and so far that hasn't been a problem. And secondly is that we were successful layering in enough new business in 2011 and that we believe that we'll continue to outperform the market in 2012. And if I were to look at the sequential growth that we incurred in the Industrial Group Q4 to Q1, we expanded it a little over 14% on that basis. Whereas, if I look at the production of commercial vehicles for example, 5 through 8, depending upon which source you use, they're expanding in the neighborhood of 4% plus or minus sequentially. And if we look at trailers, trailers depending on the source, are expanding at 4% to 5% type thing sequentially. So clearly, the new business that we've been able to secure, as well as the strength of our energy markets, is helping us to drive above market performance.

When you say, Jeff, the strength of the energy markets, has that been a meaningful part of that revenue for Q1?

It has -- I wouldn't say it's meaningful in terms of percentage, Jim, but it's a very profitable part of our business. And the demand that's going on with new pipelines and offshore drilling and these types of things is fueling this business in a very positive way.

And one other question and I'll jump back into the queue is, looking at the Industrial business, because the revenues came in so much stronger, at least, than I was looking for, how should we maybe think about Q2? Clearly, you'll show nice growth presumably year-over-year, but it would appear that you got off to such a strong start from a shipment standpoint in Q1 that it might be challenging to be up in Q2 sequentially.

Yes, I think we're going to be in roughly the same range.

[Operator Instructions] It appears there are no further questions at this time.

Okay. Well, thank you Jennifer. And on behalf of Brian and Tony, we would like to thank you for joining us for the call this morning. We welcome your continued interest and of course your questions about our business. So thank you and have a great day.

That does conclude today's conference. Thank you for your participation.