Net revenues up 13.6% year-over-year and 9.4%
sequentially. Cash generated from operations was $5.3 million and free
cash flow was $4.4 million.*
MALVERN, Pa.--(BUSINESS WIRE)--
Vishay Precision Group, Inc. (NYSE: VPG), a leading producer of
precision sensors and systems, based on its resistive foil technology,
today announced its second quarter and six month results ended June 29,
2013.
Ziv Shoshani, chief executive officer of VPG, said, “Net revenues came
in as expected in the quarter, and at the same time, consolidated
adjusted gross margin improved. I was encouraged that sales were strong
sequentially and on a year-over-year basis. We also experienced a very
strong quarter for cash generated from operations and free cash flow.”*
Mr. Shoshani added, “The KELK integration continues to run smoothly as
we work towards completion this year. We remain focused on our long term
goal of achieving growth by expanding our current product portfolio,
acquiring complementary products and optimizing our core operations.”
Net revenues for the second quarter of 2013 were $62.8 million,
representing a 13.6% increase from $55.3 million of net revenues for the
comparable prior year period. Net revenues for the six months ended June
29, 2013 were $120.3 million, representing an 8.2% increase from the
$111.2 million of net revenues for the comparable prior year period.
Comparing the results of the second quarter of 2013 to the first quarter
of 2013, net revenues for the second quarter of 2013 increased by $5.4
million, or 9.4%, from $57.5 million.
GAAP net earnings attributable to VPG stockholders for the second
quarter of 2013 were $1.3 million, or $0.09 per diluted share, compared
to net earnings attributable to VPG stockholders for the second quarter
of 2012 of $3.0 million, or $0.21 per diluted share. GAAP net earnings
attributable to VPG stockholders for the six months of 2013 were $1.7
million, or $0.12 per diluted share compared to $4.6 million, or $0.33
per diluted share for the prior year six month period.
GAAP net earnings attributable to VPG stockholders for the second
quarter of 2013 include approximately $2.3 million of KELK acquisition
purchase accounting adjustments which impacted costs of products sold,
and $0.2 million of acquisition costs which affect comparability, as
listed on the attached reconciliation table. Adjusted net earnings
attributable to VPG stockholders for the second quarter of 2013 were
$3.1 million or $0.22 per diluted share, versus net earnings
attributable to VPG stockholders of $3.0 million, or $0.21 per diluted
share for the comparable prior year period. The overall impact of
foreign exchange rates for the second quarter of 2013 as compared to the
prior year period had a negative impact to pretax income of $1.5
million, or $0.08 per diluted share.
GAAP net earnings attributable to VPG stockholders for the six months of
2013 include approximately $3.5 million of KELK acquisition purchase
accounting adjustments which impacted costs of products sold, and $1.1
million of acquisition and restructuring costs which affect
comparability, as listed on the attached reconciliation table. Adjusted
net earnings attributable to VPG stockholders for the six months 2013
were $5.0 million, or $0.36 per diluted share compared to $4.6 million,
or $0.33 per diluted share for the prior year six month period. The
overall impact of foreign exchange rates for the six months of 2013 as
compared to the prior year period had a negative impact to pretax income
of $2.1 million, or $0.11 per diluted share.
Segments
The Foil Technology Products segment revenues were $24.5 million in the
second quarter of 2013, down 7.8% from $26.6 million in the second
quarter last year, and relatively flat from $24.4 million in the first
quarter of 2013. The gross margin for the segment decreased to 38.1% for
the second quarter of 2013 versus 42.6% in the second quarter last year
and increased from 37.6% in the first quarter of 2013. The
year-over-year decrease in gross margin is primarily due to lower
volume, the effect of exchange rates and increases in other costs. The
sequential increase in gross margin was due to labor efficiencies.
The Force Sensors segment revenues were $16.1 million in the second
quarter of 2013, down 6.3% from $17.2 million in the second quarter last
year, and down 1.9% from $16.4 million in the first quarter of 2013. The
gross margin for the segment was 20.5% in the second quarter of 2013
versus 21.5% in the second quarter of 2012 and 26.8% in the first
quarter of 2013. The year-over-year decrease in gross margin is
primarily due to a reduction in volume. The sequential decrease in gross
margin is mainly due to one-time positive effects in the first quarter
of 2013, exchange rate effects and inventory reduction.
The Weighing and Control Systems segment revenues increased to $22.2
million in the second quarter of 2013, up 92.2% from $11.6 million in
the second quarter last year, and up 33.0% from $16.7 million in the
first quarter of 2013. The gross margin for the segment was 40.1% (50.2%
excluding the KELK acquisition purchase accounting adjustments) in the
second quarter of 2013 versus 41.7% in the second quarter of 2012 and
38.4% (45.8% excluding the KELK acquisition purchase accounting
adjustments) in the first quarter of 2013. The year-over-year and
sequential improvement in adjusted gross margin is primarily due to the
inclusion of three months of KELK results in the segment.
Outlook
Mr. Shoshani concluded, “We expect net revenues in the range of $58
million to $63 million for the third quarter of 2013 due to normal
seasonality in the business. Additional factors influencing guidance for
the third quarter include a concern that particularly strong revenues at
KELK in the second quarter of 2013 may not be sustainable, due to the
project nature of the business, and an ongoing enterprise resource
planning (ERP) implementation in our Foil Technology Products segment,
which could temporarily affect our efficiency in that segment.”
*Note: Free cash flow is defined as the amount of cash generated from
operations of $5.3 million for the second fiscal quarter of 2013, in
excess of our capital expenditure needs of $1.0 million for the second
fiscal quarter of 2013 and net of proceeds from the sale of assets of
$0.1 million for the second fiscal quarter of 2013.
Conference Call and Webcast
A conference call will be held on August 6, 2013 at 10:00 a.m. EDT (9:00
a.m. CDT). To access the conference call, interested parties may call
888-317-6016 or internationally 412-317-6016, or log on to the investor
relations page of the VPG website at http://ir.vishaypg.com.
A replay will be available approximately one hour after the completion
of the call by calling toll-free 877-344-7529 or internationally
412-317-0088 and using the conference number: 10031478. The replay will
also be available on the investor relations page of the VPG website at http://ir.vishaypg.com.
It will be available via phone and website for a limited time.
About Vishay Precision Group
Vishay Precision Group (VPG) is an internationally recognized designer,
manufacturer and marketer of: components based on its resistive foil
technology; sensors; and sensor-based systems specializing in the
growing markets of stress, force, weight, pressure, and current
measurements. VPG is a market leader of Foil Technology Products,
providing ongoing technology innovations in precision foil resistors and
foil strain gages, which are the foundation of the company's Force
Sensors Products and its Weighing and Control Systems. The product
portfolio consists of a variety of well-established brand names
recognized for precision and quality in the marketplace. To learn more,
visit VPG at www.vishaypg.com.
Forward-Looking Statements
From time to time, information provided by us, including but not limited
to statements in this report, or other statements made by or on our
behalf, may contain "forward-looking" information within the meaning of
the Private Securities Litigation Reform Act of 1995. Such statements
involve a number of risks, uncertainties, and contingencies, many of
which are beyond our control, which may cause actual results,
performance, or achievements to differ materially from those anticipated.
Such statements are based on current expectations only, and are subject
to certain risks, uncertainties, and assumptions. Should one or more of
these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from
those anticipated, expected, estimated, or projected. Among the factors
that could cause actual results to materially differ include: general
business and economic conditions, changes in the current pace of
economic recovery, including if such recovery stalls or does not
continue as expected; difficulties or delays in completing acquisitions
and integrating acquired companies, including KELK, the inability to
realize anticipated synergies and expansion possibilities, difficulties
in new product development; changes in competition and technology in the
markets that we serve and the mix of our products required to address
these changes; changes in foreign currency exchange rates; difficulties
in implementing our cost reduction strategies such as underutilization
of production facilities, labor unrest or legal challenges to our
lay-off or termination plans, operation of redundant facilities due to
difficulties in transferring production to lower-labor-cost countries;
and other factors affecting our operations, markets, products, services,
and prices that are set forth in our annual report on Form 10-K for the
fiscal year ended December 31, 2012. We undertake no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise.
|
|
| VISHAY PRECISION GROUP, INC. |
|
Consolidated Condensed Statements of Operations
|
|
(Unaudited - In thousands, except per share data)
|
|
|
|
|
| | | |
|
| | | |
| | |
Fiscal quarter ended
|
| | | June 29,
| | | June 30,
|
| | |
2013
| | |
2012
|
| | | | | | | | | |
|
| | | | | | | | | |
|
|
Net revenues
| | |
$
|
62,837
| | | |
$
|
55,332
| |
|
Costs of products sold
| | |
|
41,277
|
| | |
|
35,481
|
|
|
Gross profit
| | | |
21,560
| | | | |
19,851
| |
|
Gross margin
| | | |
34.3
|
%
| | | |
35.9
|
%
|
| | | | | | | | | |
|
|
Selling, general, and administrative expenses
| | | |
18,565
| | | | |
15,761
| |
|
Acquisition costs
| | |
|
208
|
| | |
|
-
|
|
|
Operating income
| | | |
2,787
| | | | |
4,090
| |
|
Operating margin
| | | |
4.4
|
%
| | | |
7.4
|
%
|
| | | | | | | | | |
|
|
Other income (expense):
| | | | | | | | | | |
|
Interest expense
| | | |
(298
|
)
| | | |
(69
|
)
|
|
Other
| | |
|
(907
|
)
| | |
|
108
|
|
|
Total other income (expense) - net
| | |
|
(1,205
|
)
| | |
|
39
|
|
| | | | | | | | | |
|
|
Income before taxes
| | | |
1,582
| | | | |
4,129
| |
| | | | | | | | | |
|
|
Income tax expense
| | |
|
292
|
| | |
|
1,125
|
|
| | | | | | | | | |
|
|
Net earnings
| | | |
1,290
| | | | |
3,004
| |
| | | | | | | | | |
|
|
Less: net (loss) earnings attributable to noncontrolling interests
| | | |
(20
|
)
| | | |
43
| |
| | |
|
|
| | |
|
|
|
|
Net earnings attributable to VPG stockholders
| | |
$
|
1,310
|
| | |
$
|
2,961
|
|
| | | | | | | | | |
|
| | | | | | | | | |
|
|
Basic earnings per share attributable to VPG stockholders
| | |
$
|
0.10
| | | |
$
|
0.22
| |
| | | | | | | | | |
|
|
Diluted earnings per share attributable to VPG stockholders
| | |
$
|
0.09
| | | |
$
|
0.21
| |
| | | | | | | | | |
|
| | | | | | | | | |
|
|
Weighted average shares outstanding - basic
| | | |
13,392
| | | | |
13,366
| |
| | | | | | | | | |
|
|
Weighted average shares outstanding - diluted
| | | |
13,947
| | | | |
13,882
| |
| | | | | | | | | |
|
|
|
| VISHAY PRECISION GROUP, INC. |
|
Consolidated Condensed Statements of Operations
|
|
(Unaudited - In thousands, except per share data)
|
|
|
|
|
| | | |
|
| | | |
| | |
Six fiscal months ended
|
| | | June 29,
| | | June 30,
|
| | |
2013(1) | | |
2012
|
| | | | | | | | | |
|
| | | | | | | | | |
|
|
Net revenues
| | |
$
|
120,298
| | | |
$
|
111,176
| |
|
Costs of products sold
| | |
|
78,769
|
| | |
|
72,445
|
|
|
Gross profit
| | | |
41,529
| | | | |
38,731
| |
|
Gross margin
| | | |
34.5
|
%
| | | |
34.8
|
%
|
| | | | | | | | | |
|
|
Selling, general, and administrative expenses
| | | |
36,362
| | | | |
32,277
| |
|
Acquisition costs
| | | |
695
| | | | |
-
| |
|
Restructuring costs
| | |
|
388
|
| | |
|
-
|
|
|
Operating income
| | | |
4,084
| | | | |
6,454
| |
|
Operating margin
| | | |
3.4
|
%
| | | |
5.8
|
%
|
| | | | | | | | | |
|
|
Other income (expense):
| | | | | | | | | | |
|
Interest expense
| | | |
(495
|
)
| | | |
(141
|
)
|
|
Other
| | |
|
(1,283
|
)
| | |
|
310
|
|
|
Total other income (expense) - net
| | |
|
(1,778
|
)
| | |
|
169
|
|
| | | | | | | | | |
|
|
Income before taxes
| | | |
2,306
| | | | |
6,623
| |
| | | | | | | | | |
|
|
Income tax expense
| | |
|
580
|
| | |
|
1,985
|
|
| | | | | | | | | |
|
|
Net earnings
| | | |
1,726
| | | | |
4,638
| |
| | | | | | | | | |
|
|
Less: net earnings attributable to noncontrolling interests
| | | |
29
| | | | |
54
| |
| | |
|
|
| | |
|
|
|
|
Net earnings attributable to VPG stockholders
| | |
$
|
1,697
|
| | |
$
|
4,584
|
|
| | | | | | | | | |
|
| | | | | | | | | |
|
|
Basic earnings per share attributable to VPG stockholders
| | |
$
|
0.13
| | | |
$
|
0.34
| |
| | | | | | | | | |
|
|
Diluted earnings per share attributable to VPG stockholders
| | |
$
|
0.12
| | | |
$
|
0.33
| |
| | | | | | | | | |
|
| | | | | | | | | |
|
|
Weighted average shares outstanding - basic
| | | |
13,389
| | | | |
13,364
| |
| | | | | | | | | |
|
|
Weighted average shares outstanding - diluted
| | | |
13,938
| | | | |
13,875
| |
| | | | | | | | | |
|
(1) The Company has recorded purchase accounting adjustments
associated with the KELK acquisition for the six fiscal months ended
June 29, 2013. An impact of these adjustments was an increase in the
costs of products sold of $1.2 million during the first quarter of 2013,
therefore, the first quarter 2013 operating results have been recast to
reflect these adjustments. The recast net earnings attributable to VPG
stockholders for the fiscal quarter ended March 30, 2013 were $0.4
million, or $0.03 per diluted share.
|
|
| VISHAY PRECISION GROUP, INC. |
|
Consolidated Condensed Balance Sheets
|
|
(In thousands)
|
|
|
|
|
| | | |
|
| | | |
| | | June 29,
| | | December 31,
|
| | |
2013
| | |
2012
|
|
Assets
| | |
(unaudited)
| | | | | |
|
Current assets:
| | | | | | | | | | |
|
Cash and cash equivalents
| | |
$
|
68,156
| | | |
$
|
93,881
| |
|
Accounts receivable, net
| | | |
37,773
| | | | |
28,766
| |
|
Inventories, net
| | | |
55,922
| | | | |
49,389
| |
|
Deferred income taxes
| | | |
2,705
| | | | |
4,258
| |
|
Prepaid expenses and other current assets
| | |
|
11,857
|
| | |
|
9,572
|
|
|
Total current assets
| | | |
176,413
| | | | |
185,866
| |
| | | | | | | | | |
|
|
Property and equipment, net
| | | |
49,309
| | | | |
52,092
| |
|
Goodwill
| | | |
18,291
| | | | |
-
| |
|
Intangible assets, net
| | | |
24,285
| | | | |
8,009
| |
|
Other assets
| | |
|
19,406
|
| | |
|
17,206
|
|
|
Total assets
| | |
$
|
287,704
|
| | |
$
|
263,173
|
|
| | | | | | | | | |
|
|
Liabilities and equity
| | | | | | | | | | |
|
Current liabilities:
| | | | | | | | | | |
|
Trade accounts payable
| | |
$
|
9,287
| | | |
$
|
9,190
| |
|
Payroll and related expenses
| | | |
13,654
| | | | |
12,831
| |
|
Other accrued expenses
| | | |
15,007
| | | | |
8,499
| |
|
Income taxes
| | | |
404
| | | | |
1,425
| |
|
Current portion of long-term debt
| | |
|
3,647
|
| | |
|
167
|
|
|
Total current liabilities
| | | |
41,999
| | | | |
32,112
| |
| | | | | | | | | |
|
|
Long-term debt, less current portion
| | | |
30,936
| | | | |
11,154
| |
|
Deferred income taxes
| | | |
1,814
| | | | |
1,831
| |
|
Other liabilities
| | | |
7,431
| | | | |
7,433
| |
|
Accrued pension and other postretirement costs
| | |
|
12,693
|
| | |
|
13,835
|
|
|
Total liabilities
| | |
|
94,873
|
| | |
|
66,365
|
|
| | | | | | | | | |
|
|
Commitments and contingencies
| | | | | | | | | | |
| | | | | | | | | |
|
|
Equity:
| | | | | | | | | | |
|
Common stock
| | | |
1,237
| | | | |
1,235
| |
|
Class B convertible common stock
| | | |
103
| | | | |
103
| |
|
Capital in excess of par value
| | | |
182,787
| | | | |
181,938
| |
|
Retained earnings
| | | |
30,053
| | | | |
28,356
| |
|
Accumulated other comprehensive income (loss)
| | |
|
(21,505
|
)
| | |
|
(14,983
|
)
|
|
Total Vishay Precision Group, Inc. stockholders' equity
| | | |
192,675
| | | | |
196,649
| |
|
Noncontrolling interests
| | |
|
156
|
| | |
|
159
|
|
|
Total equity
| | |
|
192,831
|
| | |
|
196,808
|
|
|
Total liabilities and equity
| | |
$
|
287,704
|
| | |
$
|
263,173
|
|
| | | | | | | | | |
|
|
|
| VISHAY PRECISION GROUP, INC. |
|
Consolidated Condensed Statements of Cash Flows
|
|
(Unaudited - In thousands)
|
|
|
|
|
|
|
|
Six fiscal months ended
|
| | | June 29,
|
|
| June 30,
|
| | |
2013
| | |
2012
|
| | | | | | | | | |
|
|
Operating activities:
| | | | | | | | | | |
|
Net earnings
| | |
$
|
1,726
| | | |
$
|
4,638
| |
Adjustments to reconcile net earnings to net cash provided by
operating activities:
| | | | | | | | | | |
|
Depreciation and amortization
| | | |
6,027
| | | | |
5,879
| |
|
(Gain) loss on disposal of property and equipment
| | | |
(6
|
)
| | | |
191
| |
|
Share-based compensation expense
| | | |
704
| | | | |
562
| |
|
Inventory write-offs for obsolescence
| | | |
531
| | | | |
681
| |
|
Other
| | | |
(861
|
)
| | | |
(841
|
)
|
|
Changes in operating assets and liabilities
| | |
|
(4,169
|
)
| | |
|
(4,940
|
)
|
|
Net cash provided by operating activities
| | | |
3,952
| | | | |
6,170
| |
| | | | | | | | | |
|
|
Investing activities:
| | | | | | | | | | |
|
Purchase of property and equipment
| | | |
(1,810
|
)
| | | |
(4,188
|
)
|
|
Proceeds from sale of property and equipment
| | | |
42
| | | | |
156
| |
|
Purchase of businesses
| | |
|
(48,919
|
)
| | |
|
-
|
|
|
Net cash used in investing activities
| | | |
(50,687
|
)
| | | |
(4,032
|
)
|
| | | | | | | | | |
|
|
Financing activities:
| | | | | | | | | | |
|
Proceeds from long-term debt
| | | |
25,000
| | | | |
-
| |
|
Principal payments on long-term debt and capital lease obligations
| | | |
(1,576
|
)
| | | |
(90
|
)
|
|
Debt issuance costs
| | | |
(384
|
)
| | | |
-
| |
|
Distributions to noncontrolling interests
| | |
|
(32
|
)
| | |
|
(40
|
)
|
|
Net cash provided by (used in) financing activities
| | | |
23,008
| | | | |
(130
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
| | |
|
(1,998
|
)
| | |
|
(702
|
)
|
| | | | | | | | | |
|
|
(Decrease) increase in cash and cash equivalents
| | |
|
(25,725
|
)
| | |
|
1,306
|
|
| | | | | | | | | |
|
|
Cash and cash equivalents at beginning of period
| | |
|
93,881
|
| | |
|
80,828
|
|
|
Cash and cash equivalents at end of period
| | |
$
|
68,156
|
| | |
$
|
82,134
|
|
| | | | | | | | | |
|
|
|
| VISHAY PRECISION GROUP, INC. |
|
Reconciliation of Adjusted Earnings Per Share
|
|
(Unaudited - In thousands, except per share data)
|
|
|
| | | |
|
| | |
|
| | | |
|
| | |
| | | | | |
|
| | |
Fiscal quarter ended
| | |
Six fiscal months ended
|
| | | June 29,
| | | June 30,
| | | June 29,
| | | June 30,
|
| | |
2013
| | |
2012
| | |
2013
| | |
2012
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
|
GAAP net earnings attributable to VPG stockholders
| | |
$
|
1,310
| | | |
$
|
2,961
| | |
$
|
1,697
| | | |
$
|
4,584
|
| | | | | | | | | | | | | | | | | |
|
Reconciling items affecting operating margin | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
|
|
Acquisition purchase accounting adjustments
| | | |
2,260
| | | | |
-
| | | |
3,498
| | | | |
-
|
| | | | | | | | | | | | | | | | | |
|
|
Acquisition costs
| | | |
208
| | | | |
-
| | | |
695
| | | | |
-
|
|
Restructuring costs
| | | |
-
| | | | |
-
| | | |
388
| | | | |
-
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
Reconciling items affecting tax expenses
(benefit) | | | | | | | | | | | | | | | | | | |
Tax effect of acquisition and restructuring cost adjustments
| | | |
(654
|
)
| | | |
-
| | | |
(1,266
|
)
| | | |
-
|
| | |
|
|
| | |
|
| | |
|
|
| | |
|
|
|
Adjusted net earnings
| | |
$
|
3,124
|
| | |
$
|
2,961
| | |
$
|
5,012
|
| | |
$
|
4,584
|
| | | | | | | | | | | | | | | | | |
|
|
Weighted average shares outstanding - diluted
| | | |
13,947
| | | | |
13,882
| | | |
13,938
| | | | |
13,875
|
| | | | | | | | | | | | | | | | | |
|
|
Adjusted earnings per diluted share
| | |
$
|
0.22
| | | |
$
|
0.21
| | |
$
|
0.36
| | | |
$
|
0.33
|
| | | | | | | | | | | | | | | | | |
|
Vishay Precision Group, Inc.
Wendy Wilson
Senior Director
Investor Relations and Corporate Communications
919-374-5501
[email protected]
Source: Vishay Precision Group, Inc.