Vishay Precision Group, Inc. (NYSE: VPG), a leading producer of
precision sensors and systems, today announced its results for its
fiscal 2016 first quarter ended April 2, 2016.
Highlights:
- First quarter net revenues of $56.6
million.
- First quarter adjusted diluted earnings
per share of $0.13.
- New products – advanced sensors’
revenue grew approximately 95% in the first quarter 2016 from the
first quarter 2015, and approximately 42% from the fourth quarter
2015.
- Fiscal year 2016 adjusted diluted
earnings per share reaffirmed - in the range of $0.80 to $1.00 - at
constant exchange rates as of the first quarter of 2016.
- Announced Pacific Instruments
acquisition, a designer and manufacturer of high‐performance data
acquisition systems.
Ziv Shoshani, VPG’s chief executive officer said, “Revenues this
quarter, which are flat compared with our first quarter 2015
revenues, included the effects of the weak global steel environment
and a $1.2 million negative foreign exchange rate impact versus
last year’s first quarter, due to the strengthening of the U.S.
dollar. While global economic conditions remain soft, we are
encouraged that our consolidated book-to-bill increased
sequentially to 1.03, from 0.95 in the fourth quarter of 2015.”
Net revenues for the first quarter of 2016 were $56.6 million,
flat compared with $56.6 million of net revenues for the prior year
period. Comparing sequential results, net revenues for the first
quarter of 2016 decreased by $2.3 million, or 3.9%, from $58.9
million in the fourth quarter of 2015.
Net earnings attributable to VPG stockholders for the first
quarter of 2016 were $0.5 million, or $0.04 per diluted share,
compared to net earnings attributable to VPG stockholders for the
first quarter of 2015 of $0.9 million, or $0.06 per diluted
share.
The following table reconciles the company's non-U.S. GAAP
measures included in the press release, which are provided for
comparison with other results, and the most directly comparable
U.S. GAAP measures:
Reconciliation of Adjusted Earnings Per Share
(Unaudited - In thousands, except per share data)
Fiscal
quarter ended
April 2,2016
March 28,2015
Net earnings attributable to VPG stockholders
$ 480 $
860
Reconciling items
affecting operating margin
Acquisition purchase accounting adjustments
296 —
Acquisition costs
62 — Restructuring costs
675 78
Reconciling items
affecting income tax expense
Tax effect of adjustments for purchase accounting, acquisition
costs, restructuring costs, and discrete tax item
(179 ) 16 Adjusted net earnings attributable
to VPG stockholders
$ 1,692 $ 922
Adjusted net earnings per diluted share
$ 0.13 $ 0.07
Weighted average shares outstanding - diluted
13,399
13,960
Segments
The Foil Technology Products segment revenues were $26.3 million
in the first quarter of 2016, up 5.0% from $25.1 million in the
first quarter last year, and up 0.3% from $26.2 million in the
fourth quarter of 2015. The gross margin for the segment increased
to 42.3% for the first quarter of 2016 compared to 41.4% in the
first quarter last year, and up from 36.5% in the fourth quarter of
2015. The gross margin increased from the comparable prior year
period primarily due to higher volume. The sequential gross margin
increase was primarily due to the realization of savings related to
our previously announced cost reduction programs and fourth quarter
adjustments.
The Force Sensors segment revenues of $14.8 million in the first
quarter of 2016 were down 2.6% compared to $15.2 million in the
first quarter last year, and were down 4.8% from $15.6 million in
the fourth quarter of 2015. Decreased year-over-year revenues are
attributable primarily to $0.3 million of negative exchange rate
impact. The decrease in sequential revenues is attributable to
lower volume. The gross margin for the segment was 18.4% in the
first quarter of 2016 versus 21.8% in the first quarter of 2015,
and 20.2% in the fourth quarter of 2015. The gross margin for the
quarter decreased from the comparable prior year period primarily
due to a reduction in inventory. The sequential gross margin
decrease is mainly due to lower volume.
The Weighing and Control Systems segment revenues were $15.5
million in the first quarter of 2016, down 5.1% from $16.3 million
in the first quarter last year, and down 9.4% from $17.1 million in
the fourth quarter of 2015. Decreased year-over-year revenues were
attributable to $0.8 million of negative foreign exchange rate
effects and a slowdown in the steel industry, partially offset by
the acquisition of Stress-Tek. The sequential decrease is
attributable to lower volume in the steel industry, process
weighing in Europe, and onboard weighing in the U.S., partially
offset by the acquisition of Stress-Tek. The gross margin for the
segment was 38.3% in the first quarter of 2016 (40.2% excluding the
Stress-Tek acquisition purchase accounting adjustments of $0.3
million) versus 44.6% in the first quarter of 2015 and 47.0% in the
fourth quarter of 2015 (47.8% excluding the KELK acquisition
purchase accounting adjustment of $0.1 million). 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 decreased due to lower volume.
Outlook
Mr. Shoshani concluded, “In light of global economic conditions,
we expect net revenues in the range of $57 million to $62 million
for the second quarter of 2016. We are reaffirming our expectation
for fiscal year 2016 adjusted diluted earnings per share to be in
the range of $0.80 to $1.00, at constant exchange rates as of the
first quarter of 2016.”
Conference Call and Webcast
A conference call will be held today (May 10, 2016) 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 1939174, 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: 10079715.
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;
difficulties or delays in completing acquisitions and integrating
acquired companies (including the acquisitions of Stress-Tek and
Pacific Instruments); 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-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, 2015. 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
April 2,2016
March 28,2015
Net revenues
$ 56,629 $ 56,608 Costs of
products sold
36,854 35,629
Gross profit
19,775 20,979 Gross profit margin
34.9
% 37.1 % Selling, general, and administrative
expenses
18,048 18,748 Acquisition costs
62 —
Restructuring costs
675 78
Operating income
990 2,153 Operating margin
1.7
% 3.8 % Other income (expense): Interest expense
(328 ) (187 ) Other
425
(929 ) Other income (expense) - net
97
(1,116 ) Income before taxes
1,087 1,037
Income tax expense
591 190
Net earnings
496 847 Less: net earnings (loss)
attributable to noncontrolling interests
16
(13 ) Net earnings attributable to VPG stockholders
$
480 $ 860 Basic earnings per share
attributable to VPG stockholders
$ 0.04 $ 0.06
Diluted earnings per share attributable to VPG stockholders
$ 0.04 $ 0.06 Weighted average shares
outstanding - basic
13,178 13,746 Weighted average shares
outstanding - diluted
13,399 13,960
VISHAY
PRECISION GROUP, INC. Consolidated Condensed Balance Sheets (In
thousands)
April 2,2016
December 31,2015
(Unaudited)
Assets Current assets: Cash and cash equivalents
$ 61,380 $ 62,641 Accounts receivable, net
35,235 35,553 Inventories: Raw materials
15,498
15,062 Work in process
21,362 20,289 Finished goods
20,196 20,849 Inventories, net
57,056 56,200 Prepaid expenses and other current
assets
8,621 7,814 Total current
assets
162,292 162,208 Property and equipment, at
cost: Land
3,631 3,639 Buildings and improvements
55,288 55,003 Machinery and equipment
86,834 84,409
Software
7,319 7,284 Construction in progress
2,561
2,288 Accumulated depreciation
(98,480 )
(95,992 ) Property and equipment, net
57,153 56,631
Goodwill
12,949 12,603 Intangible assets, net
18,026 17,683 Other assets
14,761
14,622 Total assets
$ 265,181
$ 263,747
Liabilities and equity
Current liabilities: Trade accounts payable
$ 8,903 $
8,004 Payroll and related expenses
12,698 13,888 Other
accrued expenses
15,524 16,604 Income taxes
788 527
Current portion of long-term debt
2,173
2,120 Total current liabilities
40,086 41,143
Long-term debt, less current portion
30,539 31,037 Deferred
income taxes
334 334 Other liabilities
7,497 7,195
Accrued pension and other postretirement costs
11,534
11,597 Total liabilities
89,990
91,306 Commitments and contingencies
Equity: Common stock
1,277 1,276 Class B convertible
common stock
103 103 Treasury stock
(8,765 )
(8,765 ) Capital in excess of par value
190,694 190,436
Retained earnings
22,807 22,327 Accumulated other
comprehensive loss
(31,118 ) (33,121 )
Total Vishay Precision Group, Inc. stockholders' equity
174,998 172,256 Noncontrolling interests
193
185 Total equity
175,191
172,441 Total liabilities and equity
$
265,181 $ 263,747
VISHAY
PRECISION GROUP, INC. Consolidated Condensed Statements of Cash
Flows (Unaudited - In thousands)
Three fiscal
months ended
April 2,2016
March 28,2015
Operating activities Net earnings
$ 496
$ 847 Adjustments to reconcile net earnings to net cash provided by
(used in) operating activities: Depreciation and amortization
2,746 2,787 (Gain) loss on disposal of property and
equipment
(15 ) 2 Share-based compensation expense
356 267 Inventory write-offs for obsolescence
363 480
Other
(826 ) 967 Net changes in operating assets and
liabilities: Accounts receivable, net
915 (546 )
Inventories, net
(866 ) (3,518 ) Prepaid expenses and
other current assets
(795 ) (775 ) Trade accounts
payable
791 (42 ) Other current liabilities
(2,514 ) (2,818 ) Net cash provided by (used
in) operating activities
651 (2,349 )
Investing activities Capital expenditures
(2,191 ) (2,800 ) Proceeds from sale of property and
equipment
28 — Net cash used in
investing activities
(2,163 ) (2,800 )
Financing activities Principal payments on long-term
debt and capital leases
(531 ) (1,280 ) Purchase of
treasury stock
— (1,231 ) Distributions to noncontrolling
interests
(8 ) (16 ) Net cash used in
financing activities
(539 ) (2,527 ) Effect of
exchange rate changes on cash and cash equivalents
790 (1,754 ) Decrease in cash and cash
equivalents
(1,261 ) (9,430 ) Cash and cash
equivalents at beginning of period
62,641
79,642 Cash and cash equivalents at end of period
$ 61,380 $ 70,212
VISHAY PRECISION GROUP, INC. Reconciliation of Consolidated
Adjusted Gross Profit Margin (Unaudited - In thousands)
Fiscal quarter ended
April 2,2016
March 28,2015
Gross profit
$ 19,775 $ 20,979 Gross profit margin
34.9 % 37.1 %
Reconciling items
affecting gross profit margin
Acquisition purchase accounting adjustments
296 —
Adjusted gross profit
$ 20,071 $ 20,979
Adjusted gross profit margin
35.4 % 37.1 %
VISHAY PRECISION GROUP, INC.
Reconciliation of Adjusted Earnings Per Share (Unaudited - In
thousands, except per share data)
Fiscal quarter
ended
April 2,2016
March 28,2015
Net earnings attributable to VPG stockholders
$ 480 $
860
Reconciling items
affecting operating margin
Acquisition purchase accounting adjustments
296 —
Acquisition costs
62 — Restructuring costs
675 78
Reconciling items
affecting income tax expense
Tax effect of adjustments for purchase accounting, acquisition
costs, restructuring costs, and discrete tax item
(179 ) 16 Adjusted net earnings
attributable to VPG stockholders
$ 1,692 $ 922
Adjusted net earnings per diluted share
$
0.13 $ 0.07 Weighted average shares outstanding -
diluted
13,399 13,960
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version on businesswire.com: http://www.businesswire.com/news/home/20160510005480/en/
VPGWendy WilsonSenior Director Investor Relations and Corporate
Communications919-374-5501wendy.wilson@vpgsensors.com
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