Net revenues up 6.2% year-over-year.Increasing
market demand in all segments supports guidance in the range of $60
million to $65 million for the second quarter of fiscal year 2014.
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 financial results for its first quarter ended March 29,
2014.
Ziv Shoshani, VPG’s chief executive officer said, “Net revenues of $61.0
million came in within our guidance. Consolidated gross margin improved
to 36.1% in the first quarter, up from a gross margin of 34.8% in the
first quarter of fiscal 2013.”
Mr. Shoshani added, “We continue to see a gradually strengthening
business environment. This is supported by three consecutive quarters of
a book-to-bill ratio around or above 1.00, with a strong book-to-bill
ratio in the first quarter of 2014 of 1.09.”
Net revenues for the first quarter of 2014 were $61.0 million,
representing a 6.2% increase from $57.5 million of net revenues for the
comparable prior year period. Comparing sequential results, net revenues
for the first quarter of 2014 decreased by $1.2 million, from $62.2
million in the fourth quarter of 2013.
Net earnings attributable to VPG stockholders for the first quarter of
2014 were $1.7 million, or $0.12 per diluted share, compared to net
earnings attributable to VPG stockholders for the first quarter of 2013
of $0.4 million, or $0.03 per diluted share.
Net earnings attributable to VPG stockholders for the first quarter of
2014 include approximately $0.4 million of acquisition related costs and
restructuring costs, versus $2.1 million of acquisition related costs
and restructuring costs in the first quarter of 2013, which affect
comparability. Adjusted net earnings attributable to VPG stockholders
for the first quarter of 2014 were $2.0 million or $0.14 per diluted
share, versus adjusted net earnings attributable to VPG stockholders of
$1.8 million, or $0.13 per diluted share for the comparable prior year
period. The overall impact on foreign exchange rates for the first
quarter of 2014 as compared to the prior year period had a negative
impact to pretax income of $0.3 million, or $0.02 per diluted share.
Segments
The Foil Technology Products segment revenues were $26.0 million in the
first quarter of 2014, up 6.8% from $24.4 million in the first quarter
last year, and relatively flat from $25.7 million in the fourth quarter
of 2013. The gross margin for the segment was flat, at 37.9% for the
first quarter of 2014 compared to 37.6% in the first quarter last year,
and decreased from 40.5% in the fourth quarter of 2013. Despite the
increase in revenues compared to the first quarter of 2013, the gross
margin remained constant primarily due to the impact of exchange rates
and overtime costs due to weather disruptions in the United States. The
sequential decrease in gross margin was due to the impact of product mix
and exchange rates.
The Force Sensors segment revenues of $16.4 million in the first quarter
of 2014 were flat compared to $16.4 million in the first quarter last
year, and were up 2.9% from $16.0 million in the fourth quarter of 2013.
The gross margin for the segment was 21.3% in the first quarter of 2014
versus 26.8% in the first quarter of 2013 and 21.5% in the fourth
quarter of 2013. While sequential gross margin is flat, the year over
year gross margin has decreased, mainly due to product mix and one-time
positive effects in the first quarter of 2013 that did not repeat this
year.
The Weighing and Control Systems segment revenues increased to $18.6
million in the first quarter of 2014, up 11.3% from $16.7 million in the
first quarter last year, and down 9.4% from $20.5 million in the fourth
quarter of 2013. The gross margin for the segment was 46.7% in the first
quarter of 2014 versus 38.4% in the first quarter of 2013 (45.8%
excluding the KELK acquisition purchase accounting adjustments of $1.2
million) and 44.9% in the fourth quarter of 2013 (47.1% excluding the
KELK acquisition purchase accounting adjustments of $0.5 million). The
year-over-year improvement in adjusted gross margins is primarily due to
higher volume. The sequential decrease in adjusted gross margin is due
to lower volume.
Outlook
Mr. Shoshani concluded, “With continued improvement in market demand for
all of our segments, we expect net revenues in the range of $60 million
to $65 million for the second quarter of 2014.”
Conference Call and Webcast
A conference call will be held on May 7, 2014 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 www.vpgsensors.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: 10044367. The replay will
also be available on the investor relations page of the VPG website at www.vpgsensors.com.
It will be available via phone and website for a limited time.
About VPG
Vishay Precision Group, Inc. 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.vpgsensors.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 ERP system and the associated impact on
manufacturing efficiencies and customer satisfaction; 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, 2013. 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 amounts)
|
|
| |
| |
| |
Fiscal quarter ended
|
| | March 29,
| | March 30,
|
| |
2014
| |
2013
|
| | | |
|
| | | |
|
|
Net revenues
| |
$
|
61,041
| | |
$
|
57,461
| |
|
Costs of products sold
| |
|
38,994
|
| |
|
37,492
|
|
|
Gross profit
| | |
22,047
| | | |
19,969
| |
|
Gross margin
| | |
36.1
|
%
| | |
34.8
|
%
|
| | | |
|
|
Selling, general, and administrative expenses
| | |
18,700
| | | |
17,797
| |
|
Acquisition costs
| | |
-
| | | |
487
| |
|
Restructuring costs
| |
|
324
|
| |
|
388
|
|
|
Operating income
| | |
3,023
| | | |
1,297
| |
|
Operating margin
| | |
5.0
|
%
| | |
2.3
|
%
|
| | | |
|
|
Other income (expense):
| | | | |
|
Interest expense
| | |
(212
|
)
| | |
(197
|
)
|
|
Other
| |
|
(542
|
)
| |
|
(376
|
)
|
|
Total other income (expense) - net
| |
|
(754
|
)
| |
|
(573
|
)
|
| | | |
|
|
Income before taxes
| | |
2,269
| | | |
724
| |
| | | |
|
|
Income tax expense
| |
|
496
|
| |
|
288
|
|
| | | |
|
|
Net earnings
| | |
1,773
| | | |
436
| |
| | | |
|
|
Less: net earnings attributable to noncontrolling interests
| | |
67
| | | |
49
| |
| |
| |
|
|
Net earnings attributable to VPG stockholders
| |
$
|
1,706
|
| |
$
|
387
|
|
| | | |
|
| | | |
|
|
Basic earnings per share attributable to VPG stockholders
| |
$
|
0.12
| | |
$
|
0.03
| |
| | | |
|
|
Diluted earnings per share attributable to VPG stockholders
| |
$
|
0.12
| | |
$
|
0.03
| |
| | | |
|
| | | |
|
|
Weighted average shares outstanding - basic
| | |
13,752
| | | |
13,387
| |
| | | |
|
|
Weighted average shares outstanding - diluted
| | |
13,958
| | | |
13,928
| |
| | | | | | | |
|
|
|
| VISHAY PRECISION GROUP, INC. |
|
Consolidated Condensed Balance Sheets
|
|
(In thousands)
|
|
| |
| |
| | March 29,
| | December 31,
|
| |
2014
| |
2013
|
|
Assets
| |
(unaudited)
| | |
|
Current assets:
| | | | |
|
Cash and cash equivalents
| |
$
|
72,041
| | |
$
|
72,785
| |
|
Accounts receivable, net
| | |
41,897
| | | |
40,500
| |
|
Inventories, net
| | |
54,903
| | | |
54,973
| |
|
Deferred income taxes
| | |
4,190
| | | |
4,784
| |
|
Prepaid expenses and other current assets
| |
|
10,836
|
| |
|
10,500
|
|
|
Total current assets
| | |
183,867
| | | |
183,542
| |
| | | |
|
|
Property and equipment, net
| | |
49,447
| | | |
49,323
| |
|
Goodwill
| | |
18,153
| | | |
18,880
| |
|
Intangible assets, net
| | |
21,182
| | | |
22,458
| |
|
Other assets
| |
|
18,266
|
| |
|
17,901
|
|
|
Total assets
| |
$
|
290,915
|
| |
$
|
292,104
|
|
| | | |
|
|
Liabilities and equity
| | | | |
|
Current liabilities:
| | | | |
|
Trade accounts payable
| |
$
|
10,521
| | |
$
|
10,258
| |
|
Payroll and related expenses
| | |
14,553
| | | |
15,016
| |
|
Other accrued expenses
| | |
14,172
| | | |
15,814
| |
|
Income taxes
| | |
626
| | | |
615
| |
|
Current portion of long-term debt
| |
|
4,391
|
| |
|
4,137
|
|
|
Total current liabilities
| | |
44,263
| | | |
45,840
| |
| | | |
|
|
Long-term debt, less current portion
| | |
21,675
| | | |
22,936
| |
|
Deferred income taxes
| | |
1,025
| | | |
1,259
| |
|
Other liabilities
| | |
7,751
| | | |
7,738
| |
|
Accrued pension and other postretirement costs
| |
|
10,679
|
| |
|
10,780
|
|
|
Total liabilities
| |
|
85,393
|
| |
|
88,553
|
|
| | | |
|
|
Commitments and contingencies
| | | | |
| | | |
|
|
Equity:
| | | | |
|
Common stock
| | |
1,273
| | | |
1,271
| |
|
Class B convertible common stock
| | |
103
| | | |
103
| |
|
Capital in excess of par value
| | |
188,857
| | | |
188,424
| |
|
Retained earnings
| | |
34,353
| | | |
32,647
| |
|
Accumulated other comprehensive income (loss)
| |
|
(19,246
|
)
| |
|
(19,027
|
)
|
|
Total Vishay Precision Group, Inc. stockholders' equity
| | |
205,340
| | | |
203,418
| |
|
Noncontrolling interests
| |
|
182
|
| |
|
133
|
|
|
Total equity
| |
|
205,522
|
| |
|
203,551
|
|
|
Total liabilities and equity
| |
$
|
290,915
|
| |
$
|
292,104
|
|
| | | |
|
|
| |
| |
| VISHAY PRECISION GROUP, INC. |
|
Consolidated Condensed Statements of Cash Flows
|
|
(Unaudited - In thousands)
|
| | | |
|
| |
Three fiscal months ended
|
| | March 29,
| | March 30,
|
| |
2014
| |
2013
|
| | | |
|
|
Operating activities:
| | | | |
|
Net earnings
| |
$
|
1,773
| | |
$
|
436
| |
Adjustments to reconcile net earnings to net cash provided by
(used in) operating activities:
| | | | |
|
Depreciation and amortization
| | |
2,849
| | | |
3,007
| |
|
Gain on disposal of property and equipment
| | |
(3
|
)
| | |
(5
|
)
|
|
Share-based compensation expense
| | |
222
| | | |
335
| |
|
Inventory write-offs for obsolescence
| | |
438
| | | |
187
| |
|
Other
| | |
486
| | | |
(631
|
)
|
|
Changes in operating assets and liabilities
| |
|
(3,726
|
)
| |
|
(4,711
|
)
|
|
Net cash provided by (used in) operating activities
| | |
2,039
| | | |
(1,382
|
)
|
| | | |
|
|
Investing activities:
| | | | |
|
Capital expenditures
| | |
(1,878
|
)
| | |
(818
|
)
|
|
Proceeds from sale of property and equipment
| | |
3
| | | |
13
| |
|
Purchase of business
| |
|
-
|
| |
|
(49,888
|
)
|
|
Net cash used in investing activities
| | |
(1,875
|
)
| | |
(50,693
|
)
|
| | | |
|
|
Financing activities:
| | | | |
|
Proceeds from long-term debt
| | |
-
| | | |
25,000
| |
|
Principal payments on long-term debt and capital lease obligations
| | |
(1,035
|
)
| | |
(789
|
)
|
|
Debt issuance costs
| | |
-
| | | |
(384
|
)
|
|
Distributions to noncontrolling interests
| |
|
(18
|
)
| |
|
(13
|
)
|
|
Net cash (used in) provided by financing activities
| | |
(1,053
|
)
| | |
23,814
| |
|
Effect of exchange rate changes on cash and cash equivalents
| |
|
145
|
| |
|
(930
|
)
|
| | | |
|
|
Decrease in cash and cash equivalents
| |
|
(744
|
)
| |
|
(29,191
|
)
|
| | | |
|
|
Cash and cash equivalents at beginning of period
| |
|
72,785
|
| |
|
93,881
|
|
|
Cash and cash equivalents at end of period
| |
$
|
72,041
|
| |
$
|
64,690
|
|
| | | | | | | |
|
|
| |
| |
| VISHAY PRECISION GROUP, INC. | | | | |
|
Reconciliation of Adjusted Earnings Per Share
| | | | |
|
(Unaudited - In thousands, except per share data)
| | | | |
| | | |
|
| |
Fiscal quarter ended
|
| | March 29,
| | March 30,
|
| |
2014
| |
2013
|
| | | |
|
| | | |
|
|
Net earnings attributable to VPG stockholders
| |
$
|
1,706
| |
$
|
387
|
| | | |
|
Reconciling items affecting operating margin | | | | |
| | | |
|
|
Acquisition purchase accounting adjustments
| | |
39
| | |
1,238
|
|
Acquisition costs
| | |
-
| | |
487
|
|
Restructuring costs
| | |
324
| | |
388
|
| | | |
|
| | | |
|
Reconciling items affecting income tax
expense | | | | |
|
Tax effect of purchase accounting adjustments, acquisition cost
adjustments, restructuring cost adjustments, and discrete tax items
| | |
92
| | |
692
|
| | | |
|
| |
| |
|
|
Adjusted net earnings attributable to VPG stockholders
| |
$
|
1,977
| |
$
|
1,808
|
| | | |
|
|
Weighted average shares outstanding - diluted
| | |
13,958
| | |
13,928
|
| | | |
|
|
Adjusted net earnings per diluted share
| |
$
|
0.14
| |
$
|
0.13
|
| | | |
|
|
| |
| |
| VISHAY PRECISION GROUP, INC. |
|
Reconciliation of Consolidated Adjusted Gross Margin
|
|
(Unaudited - In thousands)
|
| | | |
|
| |
Fiscal quarter ended
|
| | March 29,
| | March 30,
|
| |
2014
| |
2013
|
| | | |
|
| | | |
|
|
Gross profit
| |
$
|
22,047
| | |
$
|
19,969
| |
|
Gross margin
| | |
36.1
|
%
| | |
34.8
|
%
|
| | | |
|
Reconciling items affecting gross margin | | | | |
|
Acquisition purchase accounting adjustments
| | |
39
| | | |
1,238
| |
| |
| |
|
|
Adjusted gross profit
| |
$
|
22,086
|
| |
$
|
21,207
|
|
|
Adjusted gross margin
| | |
36.2
|
%
| | |
36.9
|
%
|
| | | |
|
VPG
Wendy Wilson
Senior Director Investor Relations and
Corporate Communications
919-374-5501
[email protected]
Source: VPG