Fiscal 2015 first quarter net revenues of $56.6
million and diluted earnings per share of $0.05. Fiscal 2015 second
quarter net revenue guidance of $56 million to $61 million.
MALVERN, Pa.--(BUSINESS WIRE)--
Vishay Precision Group, Inc. (NYSE: VPG), a leading producer of
precision sensors and systems, today announced its results for its
fiscal 2015 first quarter ended March 28, 2015.
Ziv Shoshani, VPG’s chief executive officer said, “Revenues this quarter
included a $4.4 million negative foreign exchange rate impact versus
last year’s first quarter, due to the strengthening of the U.S. dollar.
Consolidated gross margin improved year-over-year, and our book-to-bill
and backlog increased sequentially. We continue to make progress with
our organic growth platforms, specifically our advanced sensor line in
our Foil Technology Products segment.”
Net revenues for the first quarter of 2015 were $56.6 million,
representing a 7.3% decrease from $61.0 million of net revenues for the
comparable prior year period. Comparing sequential results, net revenues
for the first quarter of 2015 decreased by $4.6 million, or 7.5%, from
$61.2 million in the fourth quarter of 2014. Net revenues were
negatively impacted by the effect of foreign exchange rates of $4.4
million as compared to the first quarter of 2014 and were negatively
impacted by the effect of foreign exchange rates of $2.3 million as
compared to the fourth quarter of 2014.
Net earnings attributable to VPG stockholders for the first quarter of
2015 were $0.7 million, or $0.05 per diluted share, compared to net
earnings attributable to VPG stockholders for the first quarter of 2014
of $1.7 million, or $0.12 per diluted share.
Adjusted net earnings attributable to VPG stockholders for the first
quarter of 2015 were $0.8 million, or $0.05 per diluted share, versus
adjusted net earnings attributable to VPG stockholders of $2.0 million,
or $0.14 per diluted share, for the comparable prior year period. Net
earnings attributable to VPG stockholders for the first quarter of 2015
include $0.1 million of restructuring costs at one of the company's
subsidiaries, versus $0.4 million of acquisition related costs and
restructuring costs in the first quarter of 2014, which affect
comparability. Foreign exchange rates for the first quarter of 2015 as
compared to the prior year period had a negative impact to pretax income
of $0.5 million, or $0.03 per diluted share.
Segments
The Foil Technology Products segment revenues were $25.1 million in the
first quarter of 2015, down 3.6% from $26.0 million in the first quarter
last year, and down 5.9% from $26.6 million in the fourth quarter of
2014. Net revenues were negatively impacted by the effect of foreign
exchange rates of $1.7 million as compared to the first quarter of 2014
and were negatively impacted by the effect of foreign exchange rates of
$0.7 million as compared to the fourth quarter of 2014. The gross margin
for the segment increased to 40.6% for the first quarter of 2015
compared to 37.9% in the first quarter last year, and up from 37.6% in
the fourth quarter of 2014. The gross margin increased from the
comparable prior year period primarily due to volume and manufacturing
efficiencies. The sequential gross margin increase was primarily due to
non-recurring, fourth quarter 2014 year-end inventory adjustments.
The Force Sensors segment revenues of $15.2 million in the first quarter
of 2015 were down 7.3% compared to $16.4 million in the first quarter
last year, and were down 12.5% from $17.4 million in the fourth quarter
of 2014. Decreased year-over-year revenues are attributable primarily to
$0.8 million of negative exchange rate impact and $0.4 million of lower
volume. The decrease in sequential revenues is attributable to lower
volume. The gross margin for the segment was 21.9% in the first quarter
of 2015 versus 21.3% in the first quarter of 2014 and 22.8% in the
fourth quarter of 2014. The gross margin for the quarter increased from
the comparable prior year period primarily due to manufacturing
efficiencies and an increase in inventories, offset by negative foreign
exchange rate effects. The sequential gross margin decreased due to
lower volume.
The Weighing and Control Systems segment revenues were $16.3 million in
the first quarter of 2015, down 12.3% from $18.6 million in the first
quarter last year, and down 5.0% from $17.2 million in the fourth
quarter of 2014. Decreased year-over-year revenues were attributable to
$2.0 million of negative foreign exchange rate effects and the
sequential decrease is attributable to $1.1 million of negative foreign
exchange rate effects. The gross margin for the segment was 44.6% in the
first quarter of 2015 versus 46.7% in the first quarter of 2014 and
44.3% in the fourth quarter of 2014. The year-over-year decrease in
gross margin is primarily due to the negative effects of foreign
exchange rates and unfavorable product mix. Sequentially, gross margin
is relatively flat.
Outlook
Mr. Shoshani concluded, “Given the diversity of end markets that we
serve, some markets are stronger while others are weaker, and assuming a
similar exchange rate impact to our revenues, we are forecasting second
quarter revenues to be in the range of $56 million to $61 million.”
Conference Call and Webcast
A conference call will be held today (May 5, 2015) at 10:00 a.m. EDT
(9:00 a.m. CDT). To access the conference call, interested parties may
call 1-888-317-6003 or internationally 1-412-317-6061 and use passcode
1260722, 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 1-877-344-7529 or internationally
1-412-317-0088 and by using the passcode: 10063601. The replay will also
be available on the investor relations page of the VPG website at www.vpgsensors.com
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, 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, 2014. 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 28,
2015 | | March 29,
2014 |
| | | |
|
|
Net revenues
| | $ | 56,608 | | |
$
|
61,041
| |
|
Costs of products sold
| |
| 35,829 |
| |
|
38,994
|
|
|
Gross profit
| | | 20,779 | | | |
22,047
| |
|
Gross profit margin
| | | 36.7 | % | | |
36.1
|
%
|
| | | |
|
|
Selling, general, and administrative expenses
| | | 18,733 | | | |
18,700
| |
|
Restructuring costs
| |
| 78 |
| |
|
324
|
|
|
Operating income
| | | 1,968 | | | |
3,023
| |
|
Operating margin
| | | 3.5 | % | | |
5.0
|
%
|
| | | |
|
|
Other income (expense):
| | | | |
|
Interest expense
| | | (184 | ) | | |
(212
|
)
|
|
Other
| |
| (958 | ) | |
|
(542
|
)
|
|
Other income (expense) - net
| |
| (1,142 | ) | |
|
(754
|
)
|
| | | |
|
|
Income before taxes
| | | 826 | | | |
2,269
| |
| | | |
|
|
Income tax expense
| |
| 143 |
| |
|
496
|
|
| | | |
|
|
Net earnings
| | | 683 | | | |
1,773
| |
|
Less: net (loss) earnings attributable to noncontrolling interests
| |
| (13 | ) | |
|
67
|
|
|
Net earnings attributable to VPG stockholders
| | $ | 696 |
| |
$
|
1,706
|
|
| | | |
|
|
Basic earnings per share attributable to VPG stockholders
| | $ | 0.05 | | |
$
|
0.12
| |
|
Diluted earnings per share attributable to VPG stockholders
| | $ | 0.05 | | |
$
|
0.12
| |
| | | |
|
|
Weighted average shares outstanding - basic
| | | 13,746 | | | |
13,752
| |
|
Weighted average shares outstanding - diluted
| | | 13,960 | | | |
13,958
| |
|
| |
| |
| VISHAY PRECISION GROUP, INC. | | | | |
|
Consolidated Condensed Balance Sheets
| | | | |
| (In thousands) | | | | |
| | | |
|
| | March 28,
2015 | | December 31,
2014 |
| | (Unaudited) | |
| Assets | | | | |
|
Current assets:
| | | | |
|
Cash and cash equivalents
| | $ | 70,212 | | |
$
|
79,642
| |
|
Accounts receivable, net
| | | 36,707 | | | |
37,514
| |
|
Inventories:
| | | | |
|
Raw materials
| | | 14,737 | | | |
15,017
| |
|
Work in process
| | | 21,710 | | | |
20,498
| |
|
Finished goods
| |
| 19,196 |
| |
|
18,798
|
|
|
Inventories, net
| | | 55,643 | | | |
54,313
| |
| | | |
|
|
Deferred income taxes
| | | 5,024 | | | |
5,003
| |
|
Prepaid expenses and other current assets
| |
| 11,239 |
| |
|
10,566
|
|
|
Total current assets
| | | 178,825 | | | |
187,038
| |
| | | |
|
|
Property and equipment, at cost:
| | | | |
|
Land
| | | 1,845 | | | |
1,893
| |
|
Buildings and improvements
| | | 49,813 | | | |
50,266
| |
|
Machinery and equipment
| | | 79,797 | | | |
79,109
| |
|
Software
| | | 6,855 | | | |
6,837
| |
|
Construction in progress
| | | 2,536 | | | |
3,786
| |
|
Accumulated depreciation
| |
| (90,911 | ) | |
|
(89,909
|
)
|
|
Property and equipment, net
| | | 49,935 | | | |
51,982
| |
| | | |
|
|
Goodwill
| | | 11,890 | | | |
12,788
| |
| | | |
|
|
Intangible assets, net
| | | 15,856 | | | |
17,489
| |
| | | |
|
|
Other assets
| |
| 20,659 |
| |
|
20,590
|
|
|
Total assets
| | $ | 277,165 |
| |
$
|
289,887
|
|
| | | |
|
| Liabilities and equity | | | | |
|
Current liabilities:
| | | | |
|
Trade accounts payable
| | $ | 10,298 | | |
$
|
10,371
| |
|
Payroll and related expenses
| | | 14,302 | | | |
14,252
| |
|
Other accrued expenses
| | | 13,338 | | | |
16,590
| |
|
Income taxes
| | | 387 | | | |
2,197
| |
|
Current portion of long-term debt
| |
| 5,370 |
| |
|
5,120
|
|
|
Total current liabilities
| | | 43,695 | | | |
48,530
| |
| | | |
|
|
Long-term debt, less current portion
| | | 16,185 | | | |
17,713
| |
|
Deferred income taxes
| | | 643 | | | |
1,756
| |
|
Other liabilities
| | | 7,288 | | | |
7,658
| |
|
Accrued pension and other postretirement costs
| |
| 12,727 |
| |
|
13,072
|
|
|
Total liabilities
| |
| 80,538 |
| |
|
88,729
|
|
| | | |
|
|
Commitments and contingencies
| | | | |
| | | |
|
|
Equity:
| | | | |
|
Common stock
| | | 1,275 | | | |
1,273
| |
|
Class B convertible common stock
| | | 103 | | | |
103
| |
|
Treasury stock
| | | (1,263 | ) | | |
(32
|
)
|
|
Capital in excess of par value
| | | 189,621 | | | |
189,532
| |
|
Retained earnings
| | | 37,196 | | | |
36,500
| |
|
Accumulated other comprehensive loss
| |
| (30,510 | ) | |
|
(26,452
|
)
|
|
Total Vishay Precision Group, Inc. stockholders' equity
| | | 196,422 | | | |
200,924
| |
|
Noncontrolling interests
| |
| 205 |
| |
|
234
|
|
|
Total equity
| |
| 196,627 |
| |
|
201,158
|
|
|
Total liabilities and equity
| | $ | 277,165 |
| |
$
|
289,887
|
|
|
| |
| |
| VISHAY PRECISION GROUP, INC. | | | | |
|
Consolidated Condensed Statements of Cash Flows
| | | | |
| (Unaudited - In thousands) | | | | |
| | | |
|
| | Three fiscal months ended |
| | March 28,
2015 | | March 29,
2014 |
| | | |
|
| Operating activities | | | | |
|
Net earnings
| | $ | 683 | | |
$
|
1,773
| |
|
Adjustments to reconcile net earnings to net cash (used in) provided
by operating activities:
| | |
|
Depreciation and amortization
| | | 2,756 | | | |
2,849
| |
|
Loss (gain) on disposal of property and equipment
| | | 2 | | | |
(3
|
)
|
|
Share-based compensation expense
| | | 267 | | | |
222
| |
|
Inventory write-offs for obsolescence
| | | 480 | | | |
438
| |
|
Other
| | | (291 | ) | | |
486
| |
|
Net changes in operating assets and liabilities:
| | | | |
|
Accounts receivable
| | | (459 | ) | | |
(1,506
|
)
|
|
Inventories
| | | (2,684 | ) | | |
(286
|
)
|
|
Prepaid expenses and other current assets
| | | (706 | ) | | |
(316
|
)
|
|
Trade accounts payable
| | | 121 | | | |
237
| |
|
Other current liabilities
| |
| (3,566 | ) | |
|
(1,855
|
)
|
|
Net cash (used in) provided by operating activities
| |
| (3,397 | ) | |
|
2,039
|
|
| | | |
|
| Investing activities | | | | |
|
Capital expenditures
| | | (1,782 | ) | | |
(1,878
|
)
|
|
Proceeds from sale of property and equipment
| |
| — |
| |
|
3
|
|
|
Net cash used in investing activities
| |
| (1,782 | ) | |
|
(1,875
|
)
|
| | | |
|
| Financing activities | | | | |
|
Principal payments on long-term debt and capital leases
| | | (1,280 | ) | | |
(1,035
|
)
|
|
Purchase of treasury stock
| | | (1,231 | ) | | |
—
| |
|
Distributions to noncontrolling interests
| |
| (16 | ) | |
|
(18
|
)
|
|
Net cash used in financing activities
| | | (2,527 | ) | | |
(1,053
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
| |
| (1,724 | ) | |
|
145
|
|
|
Decrease in cash and cash equivalents
| | | (9,430 | ) | | |
(744
|
)
|
| |
| |
|
|
Cash and cash equivalents at beginning of period
| |
| 79,642 |
| |
|
72,785
|
|
|
Cash and cash equivalents at end of period
| | $ | 70,212 |
| |
$
|
72,041
|
|
|
| |
| |
| VISHAY PRECISION GROUP, INC. | | | | |
|
Reconciliation of Consolidated Adjusted Gross Profit Margin
| | | | |
| (Unaudited - In thousands) | | | | |
| | | |
|
| | Fiscal quarter ended |
| | March 28,
2015 | | March 29,
2014 |
|
Gross profit
| | $ | 20,779 | | |
$
|
22,047
| |
|
Gross profit margin
| | | 36.7 | % | | |
36.1
|
%
|
| | | |
|
Reconciling items affecting gross profit
margin | | | | |
|
Acquisition purchase accounting adjustments
| | | — | | | |
39
| |
| |
| |
|
|
Adjusted gross profit
| | $ | 20,779 |
| |
$
|
22,086
|
|
|
Adjusted gross profit margin
| | | 36.7 | % | | |
36.2
|
%
|
|
| |
| |
| VISHAY PRECISION GROUP, INC. | | | | |
|
Reconciliation of Adjusted Earnings Per Share
| | | | |
| (Unaudited - In thousands, except per share data) | | | | |
| | | |
|
| | Fiscal quarter ended |
| | March 28,
2015 | | March 29,
2014 |
|
Net earnings attributable to VPG stockholders
| | $ | 696 | |
$
|
1,706
|
| | | |
|
Reconciling items affecting operating margin | | | | |
|
Acquisition purchase accounting adjustments
| | | — | | |
39
|
|
Acquisition costs
| | | — | | |
—
|
|
Restructuring costs
| | | 78 | | |
324
|
| | | |
|
Reconciling items affecting income tax
expense | | | | |
|
Tax effect of adjustments for purchase accounting and restructuring
costs
| |
| 16 | |
|
92
|
|
Adjusted net earnings attributable to VPG stockholders
| | $ | 758 | |
$
|
1,977
|
| | | |
|
|
Weighted average shares outstanding - diluted
| | | 13,960 | | |
13,958
|
| | | |
|
|
Adjusted net earnings per diluted share
| | $ | 0.05 | |
$
|
0.14
|
VPG
Wendy Wilson
Senior Director Investor Relations and
Corporate Communications
919-374-5501
[email protected]
Source: Vishay Precision Group, Inc.