Net revenues up 3.7% year-over-year and
adjusted diluted earnings per share increase to $0.25.Market
demand supports revenue guidance in the range of $61 million to $66
million for the third 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 second quarter ended June 28,
2014.
Ziv Shoshani, VPG’s chief executive officer said, “I am pleased with our
performance this quarter, with revenues coming in at the high end of
guidance and with second quarter adjusted diluted earnings per share
increasing to $0.25, from $0.22 adjusted diluted earnings per share in
the second quarter last year.”
Mr. Shoshani added, “The global business environment remains strong.
This is supported by our solid backlog. We believe our results validate
our strategy of increasing shareholder value through product innovation
and internal operational improvement, while we continue to pursue
acquisitions.”
Net revenues for the second quarter of 2014 were $65.2 million,
representing a 3.7% increase from $62.8 million of net revenues for the
comparable prior year period. Net revenues for the six months of 2014
were $126.2 million, representing a 4.9% increase from the $120.3
million of net revenues for the comparable prior year period. Comparing
sequential results, net revenues for the second quarter of 2014
increased by $4.1 million, or 6.8%, from $61.0 million in the first
quarter of 2014.
Net earnings attributable to VPG stockholders for the second quarter of
2014 were $3.5 million, or $0.25 per diluted share, compared to net
earnings attributable to VPG stockholders for the second quarter of 2013
of $1.3 million, or $0.09 per diluted share. Net earnings attributable
to VPG stockholders for the six months of 2014 were $5.2 million, or
$0.37 per diluted share, compared to net earnings attributable to VPG
stockholders for the six months of 2013 of $1.7 million, or $0.12 per
diluted share.
Net earnings attributable to VPG stockholders for the second quarter of
2013 include $2.5 million of acquisition related costs and restructuring
costs, which affect comparability. Adjusted net earnings attributable to
VPG stockholders for the second quarter of 2014 were $3.5 million, or
$0.25 per diluted share, versus adjusted net earnings attributable to
VPG stockholders of $3.1 million, or $0.22 per diluted share for the
comparable prior year period.
Net earnings attributable to VPG stockholders for the six months of 2014
include $0.4 million of acquisition related costs and restructuring
costs, versus $4.6 million of acquisition related costs and
restructuring costs for the six months of 2013, which affect
comparability. Adjusted net earnings attributable to VPG stockholders
for the six months of 2014 were $5.5 million, or $0.39 per diluted
share, versus adjusted net earnings attributable to VPG stockholders of
$4.9 million, or $0.35 per diluted share for the comparable prior year
period.
Segments
The Foil Technology Products segment revenues were $28.0 million in the
second quarter of 2014, up 14.3% from $24.5 million in the second
quarter last year, and up 7.8% from $26.0 million in the first quarter
of 2014. The gross margin for the segment has increased to 40.2% for the
second quarter of 2014 compared to 38.1% in the second quarter last
year, and up from 37.9% in the first quarter of 2014. Increased
year-over-year and sequential revenues are attributable primarily to
higher volume. The gross margin improved from the comparable prior year
period mainly due to increased volume, partially offset by wage and
headcount increases. The sequential gross margin improved due to higher
volume.
The Force Sensors segment revenues of $17.0 million in the second
quarter of 2014 were up 5.5% compared to $16.1 million in the second
quarter last year, and were up 3.3% from $16.4 million in the first
quarter of 2014. The gross margin for the segment was 21.9% in the
second quarter of 2014 versus 20.5% in the second quarter of 2013 and
21.3% in the first quarter of 2014. Increased year-over-year revenues
are attributable to positive exchange rate impacts and higher volume.
The increase in sequential revenues is attributable to higher volume.
The gross margin for the quarter increased from the comparable prior
year period primarily due to higher volume and positive exchange rate
impacts. The sequential gross margin improved due to higher volume.
The Weighing and Control Systems segment revenues were $20.2 million in
the second quarter of 2014, down 9.3% from $22.2 million in the second
quarter last year, and up 8.3% from $18.6 million in the first quarter
of 2014. Decreased year-over-year revenues are attributable primarily to
lower volume. The gross margin for the segment was 48.2% in the second
quarter of 2014 versus 40.1% in the second quarter of 2013 (50.2%
excluding the KELK acquisition purchase accounting adjustments of $2.3
million) and 46.7% in the first quarter of 2014. The year over year
reduction in adjusted gross margin is primarily due to lower volume and
unfavorable product mix. The sequential increase in adjusted gross
margin is due to higher volume.
Outlook
Mr. Shoshani concluded, “In light of the continued market demand, we
expect net revenues in the range of $61 million to $66 million for the
third quarter of 2014, despite the normal seasonal slowdown that is
inclined to occur during this period.”
Conference Call and Webcast
A conference call will be held today (August 5) at 10:00 a.m. EDT (9:00
a.m. CDT). To access the conference call, interested parties may call
toll-free 877-513-4180 or internationally 412-902-4149, 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 by using the conference number: 10048841. 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. (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.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
|
| | | June 28,
| | | June 29,
|
| | |
2014
| | |
2013
|
| | | | | | | | | |
|
| | | | | | | | | |
|
|
Net revenues
| | |
$
|
65,162
| | | |
$
|
62,837
| |
|
Costs of products sold
| | |
|
40,465
|
| | |
|
41,277
|
|
|
Gross profit
| | | |
24,697
| | | | |
21,560
| |
|
Gross margin
| | | |
37.9
|
%
| | | |
34.3
|
%
|
| | | | | | | | | |
|
|
Selling, general, and administrative expenses
| | | |
19,918
| | | | |
18,565
| |
|
Acquisition costs
| | | |
-
| | | | |
208
| |
|
Restructuring costs
| | |
|
7
|
| | |
|
-
|
|
|
Operating income
| | | |
4,772
| | | | |
2,787
| |
|
Operating margin
| | | |
7.3
|
%
| | | |
4.4
|
%
|
| | | | | | | | | |
|
|
Other income (expense):
| | | | | | | | | | |
|
Interest expense
| | | |
(236
|
)
| | | |
(298
|
)
|
|
Other
| | |
|
(147
|
)
| | |
|
(907
|
)
|
|
Total other income (expense) - net
| | |
|
(383
|
)
| | |
|
(1,205
|
)
|
| | | | | | | | | |
|
|
Income before taxes
| | | |
4,389
| | | | |
1,582
| |
| | | | | | | | | |
|
|
Income tax expense
| | |
|
936
|
| | |
|
292
|
|
| | | | | | | | | |
|
|
Net earnings
| | | |
3,453
| | | | |
1,290
| |
| | | | | | | | | |
|
|
Less: net loss attributable to noncontrolling interests
| | | |
(8
|
)
| | | |
(20
|
)
|
| | |
|
|
| | |
|
|
|
|
Net earnings attributable to VPG stockholders
| | |
$
|
3,461
|
| | |
$
|
1,310
|
|
| | | | | | | | | |
|
| | | | | | | | | |
|
|
Basic earnings per share attributable to VPG stockholders
| | |
$
|
0.25
| | | |
$
|
0.10
| |
| | | | | | | | | |
|
|
Diluted earnings per share attributable to VPG stockholders
| | |
$
|
0.25
| | | |
$
|
0.09
| |
| | | | | | | | | |
|
| | | | | | | | | |
|
|
Weighted average shares outstanding - basic
| | | |
13,756
| | | | |
13,392
| |
| | | | | | | | | |
|
|
Weighted average shares outstanding - diluted
| | | |
13,968
| | | | |
13,947
| |
| | | | | | | | | |
|
|
|
| VISHAY PRECISION GROUP, INC. |
|
Consolidated Condensed Statements of Operations
|
|
(Unaudited - In thousands, except per share amounts)
|
|
|
| | | |
|
| | | |
| | |
Six fiscal months ended
|
| | | June 28,
| | | June 29,
|
| | |
2014
| | |
2013
|
| | | | | | | | | |
|
| | | | | | | | | |
|
|
Net revenues
| | |
$
|
126,203
| | | |
$
|
120,298
| |
|
Costs of products sold
| | |
|
79,459
|
| | |
|
78,769
|
|
|
Gross profit
| | | |
46,744
| | | | |
41,529
| |
|
Gross margin
| | | |
37.0
|
%
| | | |
34.5
|
%
|
| | | | | | | | | |
|
|
Selling, general, and administrative expenses
| | | |
38,618
| | | | |
36,362
| |
|
Acquisition costs
| | | |
-
| | | | |
695
| |
|
Restructuring costs
| | |
|
331
|
| | |
|
388
|
|
|
Operating income
| | | |
7,795
| | | | |
4,084
| |
|
Operating margin
| | | |
6.2
|
%
| | | |
3.4
|
%
|
| | | | | | | | | |
|
|
Other income (expense):
| | | | | | | | | | |
|
Interest expense
| | | |
(448
|
)
| | | |
(495
|
)
|
|
Other
| | |
|
(689
|
)
| | |
|
(1,283
|
)
|
|
Total other income (expense) - net
| | |
|
(1,137
|
)
| | |
|
(1,778
|
)
|
| | | | | | | | | |
|
|
Income before taxes
| | | |
6,658
| | | | |
2,306
| |
| | | | | | | | | |
|
|
Income tax expense
| | |
|
1,432
|
| | |
|
580
|
|
| | | | | | | | | |
|
|
Net earnings
| | | |
5,226
| | | | |
1,726
| |
| | | | | | | | | |
|
|
Less: net earnings attributable to noncontrolling interests
| | | |
59
| | | | |
29
| |
| | |
|
|
| | |
|
|
|
|
Net earnings attributable to VPG stockholders
| | |
$
|
5,167
|
| | |
$
|
1,697
|
|
| | | | | | | | | |
|
| | | | | | | | | |
|
|
Basic earnings per share attributable to VPG stockholders
| | |
$
|
0.38
| | | |
$
|
0.13
| |
| | | | | | | | | |
|
|
Diluted earnings per share attributable to VPG stockholders
| | |
$
|
0.37
| | | |
$
|
0.12
| |
| | | | | | | | | |
|
| | | | | | | | | |
|
|
Weighted average shares outstanding - basic
| | | |
13,754
| | | | |
13,389
| |
| | | | | | | | | |
|
|
Weighted average shares outstanding - diluted
| | | |
13,963
| | | | |
13,938
| |
| | | | | | | | | |
|
|
|
| VISHAY PRECISION GROUP, INC. |
|
Consolidated Condensed Balance Sheets
|
|
(In thousands)
|
|
|
| | | |
|
| | | |
| | | June 28,
| | | December 31,
|
| | |
2014
| | |
2013
|
|
Assets
| | |
(unaudited)
| | | | | |
|
Current assets:
| | | | | | | | | | |
|
Cash and cash equivalents
| | |
$
|
72,455
| | | |
$
|
72,785
| |
|
Accounts receivable, net
| | | |
45,316
| | | | |
40,500
| |
|
Inventories, net
| | | |
54,650
| | | | |
54,973
| |
|
Deferred income taxes
| | | |
2,683
| | | | |
4,784
| |
|
Prepaid expenses and other current assets
| | |
|
11,006
|
| | |
|
10,500
|
|
|
Total current assets
| | | |
186,110
| | | | |
183,542
| |
| | | | | | | | | |
|
|
Property and equipment, net
| | | |
48,920
| | | | |
49,323
| |
|
Goodwill
| | | |
18,844
| | | | |
18,880
| |
|
Intangible assets, net
| | | |
21,149
| | | | |
22,458
| |
|
Other assets
| | |
|
19,956
|
| | |
|
17,901
|
|
|
Total assets
| | |
$
|
294,979
|
| | |
$
|
292,104
|
|
| | | | | | | | | |
|
|
Liabilities and equity
| | | | | | | | | | |
|
Current liabilities:
| | | | | | | | | | |
|
Trade accounts payable
| | |
$
|
10,050
| | | |
$
|
10,258
| |
|
Payroll and related expenses
| | | |
14,291
| | | | |
15,016
| |
|
Other accrued expenses
| | | |
14,906
| | | | |
15,814
| |
|
Income taxes
| | | |
363
| | | | |
615
| |
|
Current portion of long-term debt
| | |
|
4,641
|
| | |
|
4,137
|
|
|
Total current liabilities
| | | |
44,251
| | | | |
45,840
| |
| | | | | | | | | |
|
|
Long-term debt, less current portion
| | | |
20,393
| | | | |
22,936
| |
|
Deferred income taxes
| | | |
1,030
| | | | |
1,259
| |
|
Other liabilities
| | | |
7,977
| | | | |
7,738
| |
|
Accrued pension and other postretirement costs
| | |
|
10,720
|
| | |
|
10,780
|
|
|
Total liabilities
| | |
|
84,371
|
| | |
|
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
| | | |
189,084
| | | | |
188,424
| |
|
Retained earnings
| | | |
37,814
| | | | |
32,647
| |
|
Accumulated other comprehensive income (loss)
| | |
|
(17,815
|
)
| | |
|
(19,027
|
)
|
|
Total Vishay Precision Group, Inc. stockholders' equity
| | | |
210,459
| | | | |
203,418
| |
|
Noncontrolling interests
| | |
|
149
|
| | |
|
133
|
|
|
Total equity
| | |
|
210,608
|
| | |
|
203,551
|
|
|
Total liabilities and equity
| | |
$
|
294,979
|
| | |
$
|
292,104
|
|
| | | | | | | | | |
|
|
|
| | | |
|
| | | |
| VISHAY PRECISION GROUP, INC. |
|
Consolidated Condensed Statements of Cash Flows
|
|
(Unaudited - In thousands)
|
| | |
|
| | |
Six fiscal months ended
|
| | | June 28,
| | | June 29,
|
| | |
2014
| | |
2013
|
| | | | | | | | | |
|
|
Operating activities:
| | | | | | | | | | |
|
Net earnings
| | |
$
|
5,226
| | | |
$
|
1,726
| |
Adjustments to reconcile net earnings to net cash provided by
operating activities:
| | | | | | | | | | |
|
Depreciation and amortization
| | | |
5,795
| | | | |
6,027
| |
|
Loss (gain) on disposal of property and equipment
| | | |
9
| | | | |
(6
|
)
|
|
Share-based compensation expense
| | | |
485
| | | | |
704
| |
|
Inventory write-offs for obsolescence
| | | |
562
| | | | |
531
| |
|
Other
| | | |
(309
|
)
| | | |
(861
|
)
|
|
Changes in operating assets and liabilities
| | |
|
(6,884
|
)
| | |
|
(4,169
|
)
|
|
Net cash provided by operating activities
| | | |
4,884
| | | | |
3,952
| |
| | | | | | | | | |
|
|
Investing activities:
| | | | | | | | | | |
|
Capital expenditures
| | | |
(3,444
|
)
| | | |
(1,810
|
)
|
|
Proceeds from sale of property and equipment
| | | |
63
| | | | |
42
| |
|
Purchase of business
| | |
|
-
|
| | |
|
(48,919
|
)
|
|
Net cash used in investing activities
| | | |
(3,381
|
)
| | | |
(50,687
|
)
|
| | | | | | | | | |
|
|
Financing activities:
| | | | | | | | | | |
|
Proceeds from long-term debt
| | | |
-
| | | | |
25,000
| |
|
Principal payments on long-term debt and capital lease obligations
| | | |
(2,070
|
)
| | | |
(1,576
|
)
|
|
Debt issuance costs
| | | |
-
| | | | |
(384
|
)
|
|
Distributions to noncontrolling interests
| | |
|
(43
|
)
| | |
|
(32
|
)
|
|
Net cash (used in) provided by financing activities
| | | |
(2,113
|
)
| | | |
23,008
| |
|
Effect of exchange rate changes on cash and cash equivalents
| | |
|
280
|
| | |
|
(1,998
|
)
|
| | | | | | | | | |
|
|
Decrease in cash and cash equivalents
| | |
|
(330
|
)
| | |
|
(25,725
|
)
|
| | | | | | | | | |
|
|
Cash and cash equivalents at beginning of period
| | |
|
72,785
|
| | |
|
93,881
|
|
|
Cash and cash equivalents at end of period
| | |
$
|
72,455
|
| | |
$
|
68,156
|
|
| | | | | | | | | |
|
|
|
| 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 28,
| | | June 29,
| | | June 28,
| | | June 29,
|
| | |
2014
| | |
2013
| | |
2014
| | |
2013
|
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
|
Net earnings attributable to VPG stockholders
| | |
$
|
3,461
| | |
$
|
1,310
| | |
$
|
5,167
| | |
$
|
1,697
|
| | | | | | | | | | | | | | | |
|
Reconciling items affecting operating margin | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
|
|
Acquisition purchase accounting adjustments
| | | |
2
| | | |
2,260
| | | |
41
| | | |
3,498
|
|
Acquisition costs
| | | |
-
| | | |
208
| | | |
-
| | | |
695
|
|
Restructuring costs
| | | |
7
| | | |
-
| | | |
331
| | | |
388
|
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
Reconciling items affecting income tax
expense | | | | | | | | | | | | | | | | |
|
Tax effect of purchase accounting adjustments, acquisition cost
adjustments, and restructuring cost adjustments
| | | |
2
| | | |
654
| | | |
94
| | | |
1,346
|
| | | | | | | | | | | | | | | |
|
| | |
|
| | |
|
| | |
|
| | |
|
|
|
Adjusted net earnings attributable to VPG stockholders
| | |
$
|
3,468
| | |
$
|
3,124
| | |
$
|
5,445
| | |
$
|
4,932
|
| | | | | | | | | | | | | | | |
|
|
Weighted average shares outstanding - diluted
| | | |
13,968
| | | |
13,947
| | | |
13,963
| | | |
13,938
|
| | | | | | | | | | | | | | | |
|
|
Adjusted net earnings per diluted share
| | |
$
|
0.25
| | |
$
|
0.22
| | |
$
|
0.39
| | |
$
|
0.35
|
| | | | | | | | | | | | | | | |
|
|
|
| VISHAY PRECISION GROUP, INC. |
|
Reconciliation of Consolidated Adjusted Gross Margin
|
|
(Unaudited - In thousands)
|
|
|
| | | |
|
| | | |
|
| | | |
|
| | | |
| | |
Fiscal quarter ended
| | |
Six fiscal months ended
|
| | | June 28,
| | | June 29,
| | | June 28,
| | | June 29,
|
| | |
2014
| | |
2013
| | |
2014
| | |
2013
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
|
Gross profit
| | |
$
|
24,697
| | | |
$
|
21,560
| | | |
$
|
46,744
| | | |
$
|
41,529
| |
|
Gross margin
| | | |
37.9
|
%
| | | |
34.3
|
%
| | | |
37.0
|
%
| | | |
34.5
|
%
|
| | | | | | | | | | | | | | | | | | | |
|
Reconciling items affecting gross margin | | | | | | | | | | | | | | | | | | | | |
|
Acquisition purchase accounting adjustments
| | | |
2
| | | | |
2,260
| | | | |
41
| | | | |
3,498
| |
| | |
|
|
| | |
|
|
| | |
|
|
| | |
|
|
|
|
Adjusted gross profit
| | |
$
|
24,699
|
| | |
$
|
23,820
|
| | |
$
|
46,785
|
| | |
$
|
45,027
|
|
|
Adjusted gross margin
| | | |
37.9
|
%
| | | |
37.9
|
%
| | | |
37.1
|
%
| | | |
37.4
|
%
|
| | | | | | | | | | | | | | | | | | | |
|
VPG
Wendy Wilson
Senior Director Investor Relations and
Corporate Communications
919-374-5501
[email protected]
Source: VPG