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.
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
VPGWendy WilsonSenior Director Investor Relations and Corporate
Communications919-374-5501wendy.wilson@vpgsensors.com
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