Net revenues up 22.0% year over year for the
fourth quarter and up 10.4% for the fiscal year.Fourth quarter
cash generated from operations of $8.4 million and free cash flow was
$5.6 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 fiscal 2013 and fourth quarter results ended
December 31, 2013.
Ziv Shoshani, VPG’s chief executive officer, said, “Net revenues of
$62.2 million came in at the mid-level of our guidance. Consolidated
adjusted gross margin improved to 37.8% in the fourth quarter of 2013
compared to 34.4% in the fourth quarter of 2012. 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, “Our business environment is encouraging, as this
has been the fourth quarter in a row with a book-to-bill ratio of 1.04,
excluding KELK. Even including the KELK business, which is project
driven, our book-to-bill ratio in the fourth quarter was 1.00.”
Net revenues for the fourth quarter of 2013 were $62.2 million,
representing a 22.0% increase from $51.0 million of net revenues for the
comparable prior year period. Net revenues for the year ended December
31, 2013 were $240.3 million, representing a 10.4% increase from the
$217.6 million of net revenues for the prior year. Comparing sequential
results, net revenues for the fourth quarter of 2013 increased by $4.5
million, or 7.8%, from $57.7 million in the third quarter of 2013.
GAAP net earnings attributable to VPG stockholders for the fourth
quarter of 2013 were $1.1 million or $0.08 per diluted share, compared
to GAAP net earnings attributable to VPG stockholders for the fourth
quarter of 2012 of $5.2 million, or $0.37 per diluted share. GAAP net
earnings attributable to VPG stockholders for the 2013 fiscal year were
$4.3 million, or $0.31 per diluted share compared to $11.7 million, or
$0.84 per diluted share for the prior fiscal year.
GAAP net earnings attributable to VPG stockholders for the fourth
quarter of 2013 include approximately $0.5 million of KELK acquisition
purchase accounting adjustments which impacted costs of products sold,
$0.04 million of acquisition costs, $0.05 million of restructuring
costs, and the impact of $0.9 million of tax discrete items which affect
comparability, as listed on the attached reconciliation table. Adjusted
net earnings attributable to VPG stockholders for the fourth quarter of
2013 were $2.5 million or $0.18 per diluted share, compared to $2.0
million, or $0.15 per diluted share for the comparable prior year
period. Additionally, the overall impact of foreign exchange rates for
the fourth quarter of 2013 as compared to the prior year period had a
negative impact to pretax income of $562,000, or $0.03 per diluted share.
GAAP net earnings attributable to VPG stockholders for the 2013 fiscal
year include approximately $4.9 million of KELK acquisition purchase
accounting adjustments which impacted costs of products sold, $0.8
million of acquisition costs, $0.5 million of restructuring costs, and
the impact of $0.2 million of tax discrete items, which affect
comparability, as listed on the attached reconciliation table. Adjusted
net earnings attributable to VPG stockholders for the 2013 fiscal year
were $8.6 million, or $0.62 per diluted share compared to $8.6 million,
or $0.62 per diluted share for the 2012 fiscal year. The overall impact
of foreign exchange rates for the 2013 fiscal year as compared to the
prior year had a negative impact to pretax income of $2.9 million, or
$0.15 per diluted share.
Segments
The Foil Technology Products segment revenues were $25.7 million in the
fourth quarter of 2013, up $1.2 million, or 5.0%, from $24.5 million in
the fourth quarter last year, and up $3.3 million or 14.7% from $22.4
million in the third quarter of 2013. The gross margin for the segment
was flat, at 40.5% for the fourth quarter of 2013 compared to 40.6% in
the fourth quarter last year and increased from 36.7% in the third
quarter of 2013. Despite the increase in revenues compared to the fourth
quarter of 2012, the gross margin remains constant primarily due to
unfavorable foreign exchange rates and additional temporary costs to
support the enterprise resource planning system. The sequential increase
in gross margin is due to higher volume.
The Force Sensors segment revenues were $16.0 million in the fourth
quarter of 2013, up $0.5 million, or 3.0%, from $15.5 million in the
fourth quarter last year, and down $0.4 million, or 2.6%, from $16.4
million in the third quarter of 2013. The gross margin for the segment
was 21.5% in the fourth quarter of 2013 versus 22.5% in the fourth
quarter of 2012 and 17.6% in the third quarter of 2013. The
year-over-year decrease in gross margin is primarily due to unfavorable
product mix and wage increases, offset by favorable foreign exchange
rates. The sequential increase in gross margin is mainly due to cost
reduction savings and favorable foreign exchange rates.
The Weighing and Control Systems segment revenues increased to $20.5
million in the fourth quarter of 2013, up $9.5 million, or 86.8%, from
$11.0 million in the fourth quarter last year, and up $1.6 million, or
8.6%, from $18.9 million in the third quarter of 2013. The gross margin
for the segment was 44.9% (47.1% excluding the KELK acquisition purchase
accounting adjustments of $0.5 million) in the fourth quarter of 2013
versus 37.6% in the fourth quarter of 2012 and 43.0% (47.8% excluding
the KELK acquisition purchase accounting adjustments of $0.9 million) in
the third quarter of 2013. The year-over-year increase in adjusted gross
margin is primarily due to the inclusion of KELK results in the segment.
Despite the increase in revenues compared to the third quarter of 2013,
the sequential adjusted gross margin decrease is due to unfavorable
product mix.
Outlook
Mr. Shoshani concluded, “We expect net revenues in the range of $59
million to $64 million for the first quarter of 2014.”
* Note: Free cash flow is defined as the amount of cash generated from
operations ($8.4 million for the fourth fiscal quarter of 2013), in
excess of our capital expenditures ($2.8 million for the fourth fiscal
quarter of 2013) and net of proceeds, if any, for the sale of assets
(none in the fourth fiscal quarter of 2013).
Conference Call and Webcast
A conference call will be held today at 10:00 a.m. EST (9:00 a.m. CST).
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- 6016 and using the conference number: 10039139. 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 in implementing our ERP system and
the associated impact on manufacturing efficiencies and customer
satisfaction; 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 amounts)
| | | | |
| | | |
|
| |
Fiscal quarter ended
|
| | December 31,
| | December 31,
|
| |
2013
| |
2012
|
| | | |
|
| | | |
|
|
Net revenues
| |
$
|
62,248
| | |
$
|
51,010
| |
|
Costs of products sold
| |
|
39,165
|
| |
|
33,448
|
|
|
Gross profit
| | |
23,083
| | | |
17,562
| |
|
Gross margin
| | |
37.1
|
%
| | |
34.4
|
%
|
| | | |
|
|
Selling, general, and administrative expenses
| | |
19,674
| | | |
15,743
| |
|
Acquisition costs
| | |
42
| | | |
275
| |
|
Restructuring costs
| |
|
51
|
| |
|
-
|
|
|
Operating income
| | |
3,316
| | | |
1,544
| |
|
Operating margin
| | |
5.3
|
%
| | |
3.0
|
%
|
| | | |
|
|
Other income (expense):
| | | | |
|
Interest expense
| | |
(251
|
)
| | |
(50
|
)
|
|
Other
| |
|
(506
|
)
| |
|
(316
|
)
|
|
Total other income (expense) - net
| |
|
(757
|
)
| |
|
(366
|
)
|
| | | |
|
|
Income before taxes
| | |
2,559
| | | |
1,178
| |
| | | |
|
|
Income tax (benefit) expense
| |
|
1,393
|
| |
|
(4,036
|
)
|
| | | |
|
|
Net earnings
| | |
1,166
| | | |
5,214
| |
| | | |
|
|
Less: net earnings attributable to noncontrolling interests
| | |
38
| | | |
49
| |
| |
| |
|
|
Net earnings attributable to VPG stockholders
| |
$
|
1,128
|
| |
$
|
5,165
|
|
| | | |
|
| | | |
|
|
Basic earnings per share attributable to VPG stockholders
| |
$
|
0.08
| | |
$
|
0.39
| |
| | | |
|
|
Diluted earnings per share attributable to VPG stockholders
| |
$
|
0.08
| | |
$
|
0.37
| |
| | | |
|
| | | |
|
|
Weighted average shares outstanding - basic
| | |
13,737
| | | |
13,371
| |
| | | |
|
|
Weighted average shares outstanding - diluted
| | |
13,955
| | | |
13,912
| |
| | | |
|
|
| |
| |
| VISHAY PRECISION GROUP, INC. | | |
|
Consolidated Condensed Statements of Operations
| | |
|
(Unaudited - In thousands, except per share amounts)
| | |
| | | |
|
| |
Years ended
|
| | December 31,
| | December 31,
|
| |
2013 (1) | |
2012
|
| | | |
|
| | | |
|
|
Net revenues
| |
$
|
240,275
| | |
$
|
217,616
| |
|
Costs of products sold
| |
|
156,420
|
| |
|
142,584
|
|
|
Gross profit
| | |
83,855
| | | |
75,032
| |
|
Gross margin
| | |
34.9
|
%
| | |
34.5
|
%
|
| | | |
|
|
Selling, general, and administrative expenses
| | |
74,521
| | | |
63,666
| |
|
Acquisition costs
| | |
794
| | | |
275
| |
|
Restructuring costs
| |
|
538
|
| |
|
-
|
|
|
Operating income
| | |
8,002
| | | |
11,091
| |
|
Operating margin
| | |
3.3
|
%
| | |
5.1
|
%
|
| | | |
|
|
Other income (expense):
| | | | |
|
Interest expense
| | |
(1,022
|
)
| | |
(266
|
)
|
|
Other
| |
|
(1,579
|
)
| |
|
(301
|
)
|
|
Total other income (expense) - net
| |
|
(2,601
|
)
| |
|
(567
|
)
|
| | | |
|
|
Income before taxes
| | |
5,401
| | | |
10,524
| |
| | | |
|
|
Income tax (benefit) expense
| |
|
1,054
|
| |
|
(1,240
|
)
|
| | | |
|
|
Net earnings
| | |
4,347
| | | |
11,764
| |
| | | |
|
|
Less: net earnings attributable to noncontrolling interests
| | |
56
| | | |
73
| |
| |
| |
|
|
Net earnings attributable to VPG stockholders
| |
$
|
4,291
|
| |
$
|
11,691
|
|
| | | |
|
| | | |
|
|
Basic earnings per share attributable to VPG stockholders
| |
$
|
0.32
| | |
$
|
0.87
| |
| | | |
|
|
Diluted earnings per share attributable to VPG stockholders
| |
$
|
0.31
| | |
$
|
0.84
| |
| | | |
|
| | | |
|
|
Weighted average shares outstanding - basic
| | |
13,563
| | | |
13,367
| |
| | | |
|
|
Weighted average shares outstanding - diluted
| | |
13,944
| | | |
13,889
| |
| | | |
|
| (1) During the second quarter of 2013, the Company
recorded purchase accounting adjustments associated with the KELK
acquisition. 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 were
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)
| | | | |
| | | |
|
| | December 31,
| | December 31,
|
| |
2013
| |
2012
|
|
Assets
| |
(unaudited)
| | |
|
Current assets:
| | | | |
|
Cash and cash equivalents
| |
$
|
72,785
| | |
$
|
93,881
| |
|
Accounts receivable, net
| | |
40,500
| | | |
28,766
| |
|
Inventories, net
| | |
54,973
| | | |
49,389
| |
|
Deferred income taxes
| | |
4,784
| | | |
4,258
| |
|
Prepaid expenses and other current assets
| |
|
10,500
|
| |
|
9,572
|
|
|
Total current assets
| | |
183,542
| | | |
185,866
| |
| | | |
|
|
Property and equipment, net
| | |
49,323
| | | |
52,092
| |
|
Goodwill
| | |
18,880
| | | |
-
| |
|
Intangible assets, net
| | |
22,458
| | | |
8,009
| |
|
Other assets
| |
|
17,901
|
| |
|
17,206
|
|
|
Total assets
| |
$
|
292,104
|
| |
$
|
263,173
|
|
| | | |
|
|
Liabilities and equity
| | | | |
|
Current liabilities:
| | | | |
|
Trade accounts payable
| |
$
|
10,258
| | |
$
|
9,190
| |
|
Payroll and related expenses
| | |
15,016
| | | |
12,831
| |
|
Other accrued expenses
| | |
15,814
| | | |
8,499
| |
|
Income taxes
| | |
615
| | | |
1,425
| |
|
Current portion of long-term debt
| |
|
4,137
|
| |
|
167
|
|
|
Total current liabilities
| | |
45,840
| | | |
32,112
| |
| | | |
|
|
Long-term debt, less current portion
| | |
22,936
| | | |
11,154
| |
|
Deferred income taxes
| | |
1,259
| | | |
1,831
| |
|
Other liabilities
| | |
7,738
| | | |
7,433
| |
|
Accrued pension and other postretirement costs
| |
|
10,780
|
| |
|
13,835
|
|
|
Total liabilities
| |
|
88,553
|
| |
|
66,365
|
|
| | | |
|
|
Commitments and contingencies
| | | | |
| | | |
|
|
Equity:
| | | | |
|
Common stock
| | |
1,271
| | | |
1,235
| |
|
Class B convertible common stock
| | |
103
| | | |
103
| |
|
Capital in excess of par value
| | |
188,424
| | | |
181,938
| |
|
Retained earnings
| | |
32,647
| | | |
28,356
| |
|
Accumulated other comprehensive income (loss)
| |
|
(19,027
|
)
| |
|
(14,983
|
)
|
|
Total Vishay Precision Group, Inc. stockholders' equity
| | |
203,418
| | | |
196,649
| |
|
Noncontrolling interests
| |
|
133
|
| |
|
159
|
|
|
Total equity
| |
|
203,551
|
| |
|
196,808
|
|
|
Total liabilities and equity
| |
$
|
292,104
|
| |
$
|
263,173
|
|
| | | | | | | |
|
|
| |
| |
| VISHAY PRECISION GROUP, INC. | | | | |
|
Consolidated Condensed Statements of Cash Flows
| | | | |
|
(Unaudited - In thousands)
| | | | |
| |
Years ended
|
| | December 31,
| | December 31,
|
| |
2013
| |
2012
|
| | | |
|
|
Operating activities:
| | | | |
|
Net earnings
| |
$
|
4,347
| | |
$
|
11,764
| |
Adjustments to reconcile net earnings to net cash provided by
operating activities:
| | | | |
|
Depreciation and amortization
| | |
11,990
| | | |
11,661
| |
|
Loss on disposal of property and equipment
| | |
41
| | | |
158
| |
|
Share-based compensation expense
| | |
743
| | | |
1,170
| |
|
Inventory write-offs for obsolescence
| | |
951
| | | |
1,444
| |
|
Other
| | |
(2,212
|
)
| | |
(5,122
|
)
|
|
Changes in operating assets and liabilities
| |
|
(1,263
|
)
| |
|
19
|
|
|
Net cash provided by operating activities
| | |
14,597
| | | |
21,094
| |
| | | |
|
|
Investing activities:
| | | | |
|
Capital expenditures
| | |
(6,748
|
)
| | |
(8,322
|
)
|
|
Proceeds from sale of property and equipment
| | |
81
| | | |
360
| |
|
Purchase of business
| |
|
(48,919
|
)
| |
|
-
|
|
|
Net cash used in investing activities
| | |
(55,586
|
)
| | |
(7,962
|
)
|
| | | |
|
|
Financing activities:
| | | | |
|
Proceeds from long-term debt
| | |
25,000
| | | |
-
| |
|
Principal payments on long-term debt and capital lease obligations
| | |
(3,148
|
)
| | |
(181
|
)
|
|
Debt issuance costs
| | |
(384
|
)
| | |
-
| |
|
Distributions to noncontrolling interests
| |
|
(82
|
)
| |
|
(67
|
)
|
|
Net cash provided by (used in) financing activities
| | |
21,386
| | | |
(248
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
| |
|
(1,493
|
)
| |
|
169
|
|
| | | |
|
|
(Decrease) increase in cash and cash equivalents
| |
|
(21,096
|
)
| |
|
13,053
|
|
| | | |
|
|
Cash and cash equivalents at beginning of period
| |
|
93,881
|
| |
|
80,828
|
|
|
Cash and cash equivalents at end of period
| |
$
|
72,785
|
| |
$
|
93,881
|
|
| | | |
|
| Supplemental disclosure of non-cash financing transactions: | | | | |
|
Conversion of exchangeable notes to common stock
| |
$
|
5,861
| | |
$
|
-
| |
| | | | | | | |
|
|
| | | |
| | | |
| VISHAY PRECISION GROUP, INC. | | | | | | | | |
|
Reconciliation of Adjusted Earnings Per Share
| | | | | | | | |
|
(Unaudited - In thousands, except per share data)
| | | | | | | | |
| | | | | | | |
|
| |
Fiscal quarter ended
| |
Years ended
|
| | December 31,
| December 31,
| | December 31,
| December 31,
|
| |
2013
| |
2012
| |
2013
| |
2012
|
| | | | | | | |
|
| | | | | | | |
|
|
GAAP net earnings attributable to VPG stockholders
| |
$
|
1,128
| | |
$
|
5,165
| |
$
|
4,291
| |
$
|
11,691
|
| | | | | | | |
|
Reconciling items affecting operating margin | | | | | | | | |
| | | | | | | |
|
|
Acquisition purchase accounting adjustments
| | |
454
| | | |
-
| | |
4,855
| | |
-
|
| | | | | | | |
|
|
Acquisition costs
| | |
42
| | | |
275
| | |
794
| | |
275
|
|
Restructuring costs
| | |
51
| | | |
-
| | |
538
| | |
-
|
| | | | | | | |
|
| | | | | | | |
|
| | | | | | | |
|
| | | | | | | |
|
Reconciling items affecting tax expenses
(benefit) | | | | | | | | |
Tax effect of purchase accounting adjustments, acquisition cost
adjustments, restructuring cost adjustments, and discrete tax items
| | |
(792
|
)
| | |
3,396
| | |
1,851
| | |
3,396
|
| | | | | | | |
|
| |
| |
| |
| |
|
|
Adjusted net earnings
| |
$
|
2,467
|
| |
$
|
2,044
| |
$
|
8,627
| |
$
|
8,570
|
| | | | | | | |
|
|
Weighted average shares outstanding - diluted
| | |
13,955
| | | |
13,912
| | |
13,944
| | |
13,889
|
| | | | | | | |
|
|
Adjusted net earnings per diluted share
| |
$
|
0.18
| | |
$
|
0.15
| |
$
|
0.62
| |
$
|
0.62
|
| | | | | | | | | | | | |
|
| | |
|
| VISHAY PRECISION GROUP, INC. | | |
|
Reconciliation of Consolidated Adjusted Gross Margin
| |
|
(Unaudited - In thousands)
| | |
|
| |
| |
| |
| |
| |
Fiscal quarter ended
| |
Years ended
|
| | December 31,
| | December 31,
| | December 31,
| | December 31,
|
| |
2013
| |
2012
| |
2013
| |
2012
|
| | | | | | | |
|
| | | | | | | |
|
|
Gross profit
| |
$
|
23,083
| | |
$
|
17,562
| | |
$
|
83,855
| | |
$
|
75,032
| |
|
Gross margin
| | |
37.2
|
%
| | |
34.4
|
%
| | |
34.9
|
%
| | |
34.5
|
%
|
| | | | | | | |
|
Reconciling items affecting gross margin | | | | | | | | |
|
Acquisition purchase accounting adjustments
| | |
454
| | | |
-
| | | |
4,855
| | | |
-
| |
| |
| |
| |
| |
|
|
Adjusted gross profit
| |
$
|
23,537
|
| |
$
|
17,562
|
| |
$
|
88,710
|
| |
$
|
75,032
|
|
|
Adjusted gross margin
| | |
37.8
|
%
| | |
34.4
|
%
| | |
36.9
|
%
| | |
34.5
|
%
|
| | | | | | | |
|
Vishay Precision Group, Inc.
Wendy Wilson
Senior Director
Investor Relations and Corporate Communications
919-374-5501
[email protected]
Source: Vishay Precision Group, Inc.