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 2018 first quarter ended March 31, 2018.
First Quarter Highlights:
-
Growth in revenues to $73.1 million, up 22.3% year-over-year
-
Earnings increased to $0.37 per diluted share, compared to $0.15
reported last year
-
Adjusted diluted EPS* increased 95% to $0.37 compared to prior year
$0.19
-
Operating margin for the quarter was 11.2% as compared to 6.6% for the
prior year period
-
Book-to-bill remained strong at 1.05, reflecting healthy, stable
end-markets
Ziv Shoshani, Chief Executive Officer of VPG, commented, “Our operating
performance in the first quarter of 2018 demonstrates our ability to
capture opportunity across all of our end markets in the improved
business environment, delivering solid operating margins. We continue to
execute well against our business strategy and deliver value to our
stockholders.”
The Company grew first fiscal quarter 2018 net earnings attributable to
VPG stockholders to $5.0 million, or $0.37 per diluted share, compared
to $2.0 million, or $0.15 per diluted share, in the first fiscal quarter
of 2017.
The first fiscal quarter 2018 adjusted net earnings attributable to VPG
stockholders approximately doubled to $5.0 million, or $0.37 per diluted
share, compared to adjusted net earnings attributable to VPG
stockholders of $2.5 million, or $0.19 per diluted share, for the
comparable prior year period. This growth was achieved despite a foreign
currency exchange rate headwind that reduced net income for the first
fiscal quarter of 2018 by $0.2 million, or $0.02 per diluted share
relative to the first fiscal quarter of 2017.
Segments
Foil Technology Products segment revenues grew 23.0% to $34.2 million in
the first fiscal quarter of 2018, up from $27.8 million in the first
fiscal quarter of 2017; sequential revenue increased 14.3% compared to
$29.9 million in the fourth quarter of 2017. The year-over-year and
sequential increases in revenues were attributable to precision
resistors growth in all regions, primarily for the test and measurement
market, in addition to an increase mainly in the advanced sensors
products across all regions.
Gross profit margin for the segment was 42.8% for the first fiscal
quarter of 2018, an increase compared to 41.4% in the first fiscal
quarter of 2017 and 39.3% in the fourth fiscal quarter of 2017. The
year-over-year and sequential increase in gross margin was directly due
to the volume increase experienced in the first fiscal quarter of 2018.
Force Sensors segment revenues grew 24.3% to $19.2 million in the first
fiscal quarter of 2018, up from $15.5 million in the first fiscal
quarter of 2017; sequential revenue increased 8.5% up from $17.7 million
in the fourth quarter of 2017. The year-over-year increase in revenues
was mainly attributable to OEM customers in the force measurement and
precision weighing markets across all regions. The increase in
sequential revenue was primarily attributable to OEM customers in the
force measurement market in Europe.
Gross profit margin for Force Sensors was 27.3% for the first fiscal
quarter of 2018, an increase compared to 23.9% in the first fiscal
quarter of 2017 and a decrease compared to 29.5% in the fourth fiscal
quarter of 2017. Gross margins were up compared to the prior year period
due to the volume increase experienced in the first fiscal quarter of
2018. The sequential decline in gross margins is primarily related to
higher freight costs and wage increases.
Weighing and Control Systems segment revenues grew by 19.0% to $19.7
million in the first fiscal quarter of 2018, up from $16.6 million in
the first fiscal quarter of 2017; sequential revenue decreased 9.7% from
$21.8 million in the fourth fiscal quarter of 2017. The increased
year-over-year revenues were primarily attributable to the on-board
weighing and process weighing product lines in Europe and the Americas.
The comparative decrease in sequential revenue was attributable to the
significant revenues in the steel business, primarily in Asia, that
occurred in the fourth fiscal quarter of 2017.
The first fiscal quarter 2018 gross profit margin for the segment was
43.9%, a decrease compared to 44.3% from the first fiscal quarter of
2017 and 44.8% from the fourth fiscal quarter of 2017. The
year-over-year decline in gross margin was primarily due to product mix.
The sequential decline in gross margin was primarily due to a reduction
in volume.
Near-Term Outlook
“In light of a continued strong business environment, at constant first
fiscal quarter 2018 exchange rates, we expect net revenues in the range
of $71 million to $77 million for the second fiscal quarter of 2018,”
concluded Mr. Shoshani.
*Use of Non-GAAP Financial Information
We define “adjusted net earnings” as net earnings attributable to VPG
stockholders before restructuring costs and associated tax effects. The
reconciliation table within this release reconciles the Company's
non-GAAP measures, which are provided for comparison with other results,
to the most directly comparable U.S. GAAP measures. Management believes
that these measures are meaningful because they provide insight with
respect to intrinsic operating results.
Conference Call and Webcast
A conference call will be held today (May 8) at 10:00 a.m. ET (9:00 a.m.
CT). To access the conference call, interested parties may call
1-888-317-6003 or internationally 1-412-317-6061 and use passcode
5447133, 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 10119570. 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 measurement 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; 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 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 achieve efficiencies; 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, 2017. 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 31, 2018 | | April 1, 2017 |
|
Net revenues
| | $ | 73,091 | | |
$
|
59,787
| |
|
Costs of products sold
| |
| 44,586 |
| |
|
37,270
|
|
|
Gross profit
| | | 28,505 | | | |
22,517
| |
|
Gross profit margin
| | | 39.0 | % | | |
37.7
|
%
|
| | | |
|
|
Selling, general, and administrative expenses
| | | 20,319 | | | |
18,018
| |
|
Restructuring costs
| |
| — |
| |
|
554
|
|
|
Operating income
| | | 8,186 | | | |
3,945
| |
|
Operating margin
| | | 11.2 | % | | |
6.6
|
%
|
| | | |
|
|
Other income (expense):
| | | | |
|
Interest expense
| | | (442 | ) | | |
(452
|
)
|
|
Other
| |
| (649 | ) | |
|
(529
|
)
|
|
Other income (expense) - net
| |
| (1,091 | ) | |
|
(981
|
)
|
| | | |
|
|
Income before taxes
| | | 7,095 | | | |
2,964
| |
| | | |
|
|
Income tax expense
| |
| 2,137 |
| |
|
961
|
|
| | | |
|
|
Net earnings
| | | 4,958 | | | |
2,003
| |
|
Less: net earnings attributable to noncontrolling interests
| |
| (30 | ) | |
|
8
|
|
|
Net earnings attributable to VPG stockholders
| | $ | 4,988 |
| |
$
|
1,995
|
|
| | | |
|
|
Basic earnings per share attributable to VPG stockholders
| | $ | 0.37 | | |
$
|
0.15
| |
|
Diluted earnings per share attributable to VPG stockholders
| | $ | 0.37 | | |
$
|
0.15
| |
| | | |
|
|
Weighted average shares outstanding - basic
| | | 13,342 | | | |
13,210
| |
|
Weighted average shares outstanding - diluted
| | | 13,497 | | | |
13,438
| |
| | | |
|
|
|
| VISHAY PRECISION GROUP, INC. |
|
Consolidated Condensed Balance Sheets
|
|
(In thousands)
|
|
| March 31, 2018 |
| December 31, 2017 |
| | (Unaudited) | | |
| Assets | | | | |
|
Current assets:
| | | | |
|
Cash and cash equivalents
| | $ | 73,734 | | |
$
|
74,292
| |
|
Accounts receivable, net
| | | 53,141 | | | |
46,789
| |
|
Inventories:
| | | | |
|
Raw materials
| | | 18,247 | | | |
16,601
| |
|
Work in process
| | | 23,387 | | | |
23,160
| |
|
Finished goods
| |
| 19,963 |
| |
|
20,174
|
|
|
Inventories, net
| | | 61,597 | | | |
59,935
| |
|
Prepaid expenses and other current assets
| |
| 12,668 |
| |
|
10,299
|
|
|
Total current assets
| | | 201,140 | | | |
191,315
| |
| | | |
|
|
Property and equipment, at cost:
| | | | |
|
Land
| | | 3,484 | | | |
3,434
| |
|
Buildings and improvements
| | | 50,816 | | | |
50,276
| |
|
Machinery and equipment
| | | 97,199 | | | |
95,158
| |
|
Software
| | | 8,068 | | | |
7,955
| |
|
Construction in progress
| | | 2,501 | | | |
2,252
| |
|
Accumulated depreciation
| |
| (106,324 | ) | |
|
(103,401
|
)
|
|
Property and equipment, net
| | | 55,744 | | | |
55,674
| |
| | | |
|
| Goodwill | | | 18,995 | | | |
19,181
| |
| | | |
|
|
Intangible assets, net
| | | 19,748 | | | |
20,475
| |
| | | |
|
|
Other assets
| |
| 19,775 |
| |
|
19,906
|
|
|
Total assets
| | $ | 315,402 |
| |
$
|
306,551
|
|
| | | |
|
| Liabilities and equity | | | | |
|
Current liabilities:
| | | | |
|
Trade accounts payable
| | $ | 12,953 | | |
$
|
13,678
| |
|
Payroll and related expenses
| | | 17,201 | | | |
15,892
| |
|
Other accrued expenses
| | | 16,408 | | | |
15,952
| |
|
Income taxes
| | | 2,103 | | | |
2,515
| |
|
Current portion of long-term debt
| |
| 3,926 |
| |
|
3,878
|
|
|
Total current liabilities
| | | 52,591 | | | |
51,915
| |
| | | |
|
|
Long-term debt, less current portion
| | | 27,717 | | | |
28,477
| |
|
Deferred income taxes
| | | 2,300 | | | |
2,300
| |
|
Other liabilities
| | | 13,968 | | | |
14,131
| |
|
Accrued pension and other postretirement costs
| |
| 16,952 |
| |
|
16,424
|
|
|
Total liabilities
| |
| 113,528 |
| |
|
113,247
|
|
| | | |
|
|
Commitments and contingencies
| | | | |
| | | |
|
Equity:
| | | | |
|
Common stock
| | | 1,304 | | | |
1,288
| |
|
Class B convertible common stock
| | | 103 | | | |
103
| |
| Treasury stock
| | | (8,765 | ) | | |
(8,765
|
)
|
|
Capital in excess of par value
| | | 195,259 | | | |
192,904
| |
|
Retained earnings
| | | 47,911 | | | |
43,076
| |
|
Accumulated other comprehensive loss
| |
| (33,939 | ) | |
|
(35,450
|
)
|
| Total Vishay Precision Group, Inc. stockholders' equity
| | | 201,873 | | | |
193,156
| |
|
Noncontrolling interests
| |
| 1 |
| |
|
148
|
|
|
Total equity
| |
| 201,874 |
| |
|
193,304
|
|
|
Total liabilities and equity
| | $ | 315,402 |
| |
$
|
306,551
|
|
|
|
|
|
| VISHAY PRECISION GROUP, INC. |
|
Consolidated Condensed Statements of Cash Flows
|
|
(Unaudited - In thousands)
|
|
|
|
| Three fiscal months ended |
| | March 31, 2018 |
| April 1, 2017 |
| Operating activities | | | | |
|
Net earnings
| | $ | 4,958 | | |
$
|
2,003
| |
|
Adjustments to reconcile net earnings to net cash provided by
operating activities:
| | |
|
Depreciation and amortization
| | | 2,684 | | | |
2,681
| |
|
Gain on disposal of property and equipment
| | | (53 | ) | | |
(109
|
)
|
|
Share-based compensation expense
| | | 373 | | | |
243
| |
|
Inventory write-offs for obsolescence
| | | 613 | | | |
297
| |
|
Deferred income taxes
| | | 268 | | | |
(97
|
)
|
|
Other
| | | (723 | ) | | |
(359
|
)
|
|
Net changes in operating assets and liabilities:
| | | | |
|
Accounts receivable, net
| | | (5,519 | ) | | |
(3,362
|
)
|
|
Inventories, net
| | | (1,910 | ) | | |
284
| |
|
Prepaid expenses and other current assets
| | | (2,517 | ) | | |
(2,154
|
)
|
|
Trade accounts payable
| | | 1,687 | | | |
1,422
| |
|
Other current liabilities
| |
| 1,943 |
| |
|
2,032
|
|
|
Net cash provided by operating activities
| |
| 1,804 |
| |
|
2,881
|
|
| | | |
|
| Investing activities | | | | |
|
Capital expenditures
| | | (4,296 | ) | | |
(1,962
|
)
|
|
Proceeds from sale of property and equipment
| |
| 53 |
| |
|
148
|
|
|
Net cash used in investing activities
| |
| (4,243 | ) | |
|
(1,814
|
)
|
| | | |
|
| | | |
|
| Financing activities | | | | |
|
Principal payments on long-term debt and capital leases
| | | (2,970 | ) | | |
(657
|
)
|
|
Proceeds from revolving facility
| | | 8,000 | | | |
7,000
| |
|
Payments on revolving facility
| | | (3,000 | ) | | |
(7,000
|
)
|
|
Distributions to noncontrolling interests
| | | (117 | ) | | |
(2
|
)
|
|
Payments of employee taxes on certain share-based arrangements
| |
| (785 | ) | |
|
(303
|
)
|
|
Net cash provided by (used in) financing activities
| | | 1,128 | | | |
(962
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
| |
| 753 |
| |
|
694
|
|
|
(Decrease) increase in cash and cash equivalents
| | | (558 | ) | | |
799
| |
| | | |
|
|
Cash and cash equivalents at beginning of period
| |
| 74,292 |
| |
|
58,452
|
|
|
Cash and cash equivalents at end of period
| | $ | 73,734 |
| |
$
|
59,251
|
|
| | | |
|
| Supplemental disclosure of non-cash investing transactions: | | | | |
|
Capital expenditures purchased
| | $ | (1,773 | ) | |
$
|
(1,962
|
)
|
| Supplemental disclosure of non-cash financing transactions: | | | | |
|
Conversion of exchangeable notes to common stock
| | $ | (2,794 | ) | |
$
|
—
| |
|
|
|
|
| VISHAY PRECISION GROUP, INC. |
|
Reconciliation of Consolidated Adjusted Gross Profit Margin
|
|
(Unaudited - In thousands)
|
| Fiscal quarter ended |
| March 31, 2018 |
| April 1, 2017 |
Gross profit
| $ | 28,505 | | |
$
|
22,517
| |
|
Gross profit margin
| | 39.0 | % | | |
37.7
|
%
|
| | |
|
|
| |
|
|
Adjusted gross profit
| $ | 28,505 |
| |
$
|
22,517
|
|
|
Adjusted gross profit margin
| | 39.0 | % | | |
37.7
|
%
|
| | |
|
| | |
|
| VISHAY PRECISION GROUP, INC. | | | |
|
Reconciliation of Consolidated Adjusted Operating Margin
| | | |
|
(Unaudited - In thousands)
| | | |
| | |
|
| Fiscal quarter ended |
| March 31, 2018 | | April 1, 2017 |
Operating income
| $ | 8,186 | | |
$
|
3,945
| |
|
Operating margin
| | 11.2 | % | | |
6.6
|
%
|
| | |
|
Reconciling items affecting operating margin | | | |
|
Restructuring costs
| | — | | | |
554
| |
|
| |
|
|
Adjusted operating income
| $ | 8,186 |
| |
$
|
4,499
|
|
|
Adjusted operating margin
| | 11.2 | % | | |
7.5
|
%
|
| | |
|
| | |
|
| VISHAY PRECISION GROUP, INC. | | | |
|
Reconciliation of Adjusted Earnings Per Share
| | | |
|
(Unaudited - In thousands, except per share data)
| | | |
| Fiscal quarter ended |
| March 31, 2018 | | April 1, 2017 |
|
Net earnings attributable to VPG stockholders
| $ | 4,988 | | |
$
|
1,995
| |
| | |
|
Reconciling items affecting operating margin | | | |
|
Restructuring costs
| | — | | | |
554
| |
Less reconciling items affecting income tax
expense | | | |
|
Tax effect of reconciling items
|
| — |
| |
|
42
|
|
|
Adjusted net earnings attributable to VPG stockholders
| $ | 4,988 |
| |
$
|
2,507
|
|
| | |
|
|
Adjusted net earnings per diluted share
| $ | 0.37 | | |
$
|
0.19
| |
| | |
|
|
Weighted average shares outstanding - diluted
| | 13,497 | | | |
13,438
| |
| | |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180508005433/en/
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For Investors
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Source: VPG