Vishay Precision Group, Inc. (NYSE: VPG), a leading producer of
precision sensors and sensors-based systems, today announced its
results for its fiscal 2020 fourth quarter and twelve fiscal months
ended December 31, 2020.
Fourth Quarter Highlights:
- Revenues of $75.4 million increased 9.1% from a year ago
- Earnings per diluted share was $0.01, as compared to $0.28
reported a year ago
- Adjusted diluted earnings per share* was $0.43, as compared to
$0.28 reported a year ago
- Gross profit margin was 38.1%, as compared to 35.0% a year
ago
- Adjusted gross profit margin* was 38.0%, as compared to 36.8% a
year ago
- Operating margin was 7.8%, as compared to 2.5% reported a year
ago
- Adjusted operating margin* was 10.7%, as compared to 7.5%
reported a year ago
- Cash from operating activities was $12.5 million with adjusted
free cash flow* of $5.9 million
2020 Full Year Highlights:
- Revenues of $269.8 million declined 5.0% year-over-year
- Earnings per diluted share was $0.79, as compared to $1.63
reported a year ago
- Adjusted diluted earnings per share* was $1.32, as compared to
prior year $1.79 reported a year ago
- Gross profit margin was 38.6%, as compared to 39.3% a year
ago
- Adjusted gross profit margin* was 39.0%, as compared to 39.7% a
year ago
- Operating margin was 8.4%, as compared to 10.1% reported last
year
- Adjusted operating margin* was 9.7%, as compared to 11.7%
reported last year
- Cash from operating activities was $35.3 million with adjusted
free cash flow* of $13.3 million
Ziv Shoshani, Chief Executive Officer of VPG, commented, "We
finished fiscal 2020 on a solid note. Fourth-quarter sales grew
11.7% sequentially reflecting broad-based growth across VPG's
businesses and across our diversified end markets. Orders on a
consolidated basis grew sequentially, as many of our markets
continued to rebound from the lows earlier in the year due to the
global pandemic. We are optimistic that as the world returns to
normalcy, we are poised to realize the potential of our long-term
strategic growth and cost initiatives.
Mr. Shoshani said: "In the fourth quarter we achieved an
adjusted operating margin of 10.7% which was in line with our
target model while generating $12.5 million of cash from
operations.
The Company's fourth fiscal quarter 2020 net earnings
attributable to VPG stockholders were $0.1 million, or $0.01 per
diluted share, compared to $3.9 million, or $0.28 per diluted
share, in the fourth fiscal quarter of 2019. Included in the fourth
fiscal quarter 2020 were tax expense of $1.7 million primarily
related to the acquisition of DSI and other discrete tax items.
Included in the fourth fiscal quarter 2019 were tax benefits of
approximately $3.4 million primarily related to the acquisition of
DSI and other discrete tax items.
In the twelve fiscal months ended December 31, 2020, net
earnings attributable to VPG stockholders were $10.8 million, or
$0.79 per diluted share, compared to $22.2 million, or $1.63 per
diluted share, in the twelve fiscal months ended December 31, 2019.
Included in the twelve fiscal months ended December 31, 2020 were
tax expense of $1.7 million primarily related to the acquisition of
DSI and other discrete tax items. Included in the twelve fiscal
months ended December 31, 2019 were tax benefits of
approximately $3.4 million primarily related to the acquisition of
DSI and other discrete tax items.
The fourth fiscal quarter 2020 adjusted net earnings*
attributable to VPG stockholders were $5.8 million, or $0.43 per
diluted share, compared to adjusted net earnings* attributable to
VPG stockholders of $3.9 million, or $0.28 per diluted share, for
the comparable prior year period.
In the twelve fiscal months ended December 31, 2020,
adjusted net earnings* attributable to VPG stockholders were $18.0
million, or $1.32 per diluted share, compared to adjusted net
earnings* attributable to VPG stockholders of $24.3 million, or
$1.79 per diluted share, for the comparable prior year period.
Non-cash Impairment Charge
As a result of our regular review of goodwill and
indefinite-lived intangible assets during the fourth quarter of
each year, we recorded a $2.4 million pre-tax, non-cash impairment
charge to reduce the carrying value of the goodwill and
indefinite-lived intangible assets related to our Pacific
Instruments business, which is part of the Foil Technology Products
reporting segment.
Impact of Foreign Currency Exchange Rate on Balance
Sheet Items
Our operations in Israel and certain locations in Asia primarily
generate cash in U.S. dollars, and accordingly, these subsidiaries
utilize the U.S. dollar as their functional currency. For those
foreign subsidiaries where the U.S. dollar is the functional
currency, all foreign currency financial statement amounts are
remeasured into U.S. dollars. Exchange gains and losses arising
from remeasurement of foreign currency-denominated monetary assets
and liabilities are included in the results of operations in Other
income (expense). While these subsidiaries transact most business
in U.S. dollars, they may have significant costs, particularly
related to payroll and leases, which are incurred in the local
currency.
In the fourth quarter of 2020, the change in the dollar-shekel
exchange rate resulted in an unfavorable foreign exchange impact of
$1.7 million, primarily related to the shekel-denominated lease
liability for a new Foil Technology Products facility in Israel.
Beginning in the fourth quarter of 2020, the Company has determined
to include the impact of foreign currency exchange rates on its
assets and liabilities in certain of its non-GAAP measures for its
current and comparative periods.
Segments
Foil Technology Products segment revenues increased 23.1% to
$36.5 million in the fourth fiscal quarter of 2020 from $29.6
million in the fourth fiscal quarter of 2019, and sequentially
increased 10.9% from $32.9 million in the third quarter of 2020.
The year-over-year increase in revenues was primarily attributable
to an increase in our advanced sensors product line primarily in
our consumer-related markets and higher sales of precision
resistors and our Pacific Instruments product line in the avionics,
military and space market. Sequentially, the increase in revenue
reflected higher precision resistor sales in the test and
measurement market, an increase in our Pacific Instruments product
line in the avionics, military and space market, and an increase in
our advanced sensors product line primarily in our consumer-related
markets.
Gross profit margin for the Foil Technology Products segment of
38.4% (or, 38.9% adjusted to exclude the impact of COVID-19) for
the fourth fiscal quarter of 2020, was higher compared to 34.9% in
the fourth fiscal quarter of 2019, and a decrease compared to 41.1%
(or, 41.6% adjusted to exclude the impact of COVID-19) in the third
fiscal quarter of 2020. The year-over-year increase in adjusted
gross profit margin was primarily due to higher volume.
Sequentially, adjusted gross profit margin was lower comparable to
the third quarter of 2020 primarily due to manufacturing
inefficiencies, unfavorable product mix and one-time inventory
adjustments, partially offset by an increase in volume.
Force Sensors segment revenues increased 7.9% to $16.3 million
in the fourth fiscal quarter of 2020, from $15.1 million in the
fourth fiscal quarter of 2019. Sequentially, revenue increased
17.2%, from $13.9 million in the third quarter of 2020 The
year-over-year increase in revenues were primarily attributable to
an increase in our OEM customers in the precision agriculture
market, partially offset by lower sales in the industrial weighing
market. The sequential increase in revenues, which was attributable
to higher sales in the precision agriculture and industrial
weighing markets, reflected the return to full production
capability at the end of the third quarter of the Force Sensors
operations that had been constrained due to the COVID-19
pandemic.
Gross profit margin for the Force Sensors segment was 29.1% (or,
29.6% adjusted to exclude the impact of COVID-19) for the fourth
fiscal quarter of 2020, an increase compared to 24.2% in the fourth
fiscal quarter of 2019, and a decrease compared to 30.5% (or, 31.2%
adjusted to exclude the impact of COVID-19) in the third fiscal
quarter of 2020. The year-over-year increase in adjusted gross
profit margin was primarily due to higher volume, structural cost
savings initiatives, an increase in inventories and a positive
impact of foreign exchange, partially offset by a reduction of
export grants. Sequentially, adjusted gross profit margin decreased
primarily due to a reduction of inventory, partially offset by an
increase in volume.
Weighing and Control Systems segment revenues decreased by 7.1%
to $22.7 million in the fourth fiscal quarter of 2020, down from
$24.4 million in the fourth fiscal quarter of 2019. Sequentially,
revenue increased 9.4% from $20.8 million in the third fiscal
quarter of 2020. The year-over-year decrease in revenues was
primarily attributable lower KELK and DSI steel-related sales and
lower sales in our process weighing business, partially offset by
an increase in our onboard weighing products for the transportation
market. The sequential increase in revenue was primarily
attributable to our onboard weighing products for the
transportation market and an increase in our process weighing
business.
Gross profit margin for the Weighing and Control Systems segment
was 44.0% (or, 42.5% adjusted to exclude the purchasing accounting
adjustments related to the DSI acquisition and the impact of
COVID-19) for the fourth fiscal quarter of 2020, compared to 41.6%
(or, 46.8% adjusted to exclude the purchasing accounting
adjustments related to the DSI acquisition) from the fourth fiscal
quarter of 2019, and compared to 46.2% (or, 44.9% adjusted to
exclude the purchasing accounting adjustments related to the DSI
acquisition and the impact of COVID-19) from the third fiscal
quarter of 2020. The year-over-year decrease in adjusted gross
profit margin was primarily due to lower volume and an unfavorable
product mix. The sequential decrease in adjusted gross profit
margin was due to unfavorable product mix and inventory reductions,
partially offset by higher volume.
Impacts From the Global COVID-19 Pandemic
As of February 17, 2021, all of the Company’s facilities are
operating without limitations with the Company implementing
COVID-19 best practices with respect to working conditions and
enabling some employees to work remotely where possible.
Nonetheless, given the impacts to date and the ongoing uncertainty
concerning the magnitude of the impact and duration of the COVID-19
pandemic, the ongoing economic disruption may continue to adversely
affect the Company’s business and financial results.
Near-Term Outlook
“Given the improving business environment, our strong cash flow,
financial position, and strategic investments give us confidence
that we can achieve growth in 2021 as the global economy and our
markets continue to recover from the pandemic. For the first fiscal
quarter of 2021, at constant fourth fiscal quarter 2020 exchange
rates, we expect net revenues to be in the range of $63 million to
$70 million,” concluded Mr. Shoshani.
*Use of Non-GAAP Financial Information
We define “adjusted gross profit margin" as gross profit margin
before purchase accounting adjustments related to the DSI
acquisition, acquisition costs, and the impacts of COVID-19 costs.
We define "adjusted operating margin" as operating margin before
purchase accounting adjustments, acquisition costs, COVID-19 costs,
impairment of goodwill and indefinite-lived intangible assets,
restructuring costs, and executive severance costs. We define
"adjusted net earnings” and "adjusted diluted net earnings per
share" as net earnings attributable to VPG stockholders before
purchase accounting adjustments, acquisition costs, COVID-19 costs,
impairment of goodwill and indefinite-lived intangible assets,
restructuring costs, executive severance costs, foreign exchange
gains and losses, and associated tax effects.
"Adjusted free cash flow" for the fourth fiscal quarter of 2020
is defined as the amount of cash generated from operating
activities ($12.5 million), in excess of our capital expenditures
($7.1 million), net of proceeds, if any, from the sale of assets
($0.5 million). "Adjusted free cash flow" for the fiscal year of
2020 is defined as the amount of cash generated from operating
activities ($35.3 million) in excess of our capital expenditures
($22.9 million), net of proceeds, if any, from the sale of assets
($0.9 million).
Management believes that these non-GAAP measures are useful to
investors because each presents what management views as our core
operating results for the relevant period. The adjustments to the
applicable GAAP measures relate to occurrences or events that are
outside of our core operations, and management believes that the
use of these non-GAAP measures provides a consistent basis to
evaluate our operating profitability and performance trends across
comparable periods. These reconciling items are indicated on the
accompanying reconciliation schedules and are more fully described
in VPG’s financial statements presented in our Annual Report on
Form 10-K and its Quarterly Reports on Forms 10-Q.
Conference Call and Webcast
A conference call will be held today (February 17, 2021) 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 9219939, or by visiting the
"Events" page of investor relations section of the VPG website at
http://ir.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 10151519.
The replay will also be available on the "Events" page of investor
relations section of the VPG website at
http://ir.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 identifying, negotiating and
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; political, economic, health
(including the COVID-19 pandemic) and military instability in the
countries in which we operate; 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;
significant developments from the recent and potential changes in
tariffs and trade regulation; our efforts and efforts by
governmental authorities to mitigate the COVID-19 pandemic, such as
travel bans, shelter-in-place orders and business closures and the
related impact on resource allocations, manufacturing and supply
chains; the Company’s status as a “critical”, “essential” or
“life-sustaining” business in light of COVID-19 business closure
laws, orders and guidance being challenged by a governmental body
or other applicable authority; the Company’s ability to execute its
business continuity, operational and budget plans in light of the
COVID-19 pandemic; 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,
2019 and Quarterly Report on Form 10-Q for the fiscal quarter ended
March 28, 2020. We undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise.
Contact:Steve CantorVishay Precision Group,
Inc.781-222-3516steve.cantor@vpgsensors.com
VISHAY PRECISION
GROUP, INC. |
|
|
|
|
Consolidated Statements of
Operations |
|
|
|
|
(Unaudited - In thousands,
except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Fiscal quarter ended |
|
|
December 31,2020 |
|
December 31,2019 |
Net revenues |
|
$ |
75,445 |
|
|
$ |
69,142 |
|
Costs of products sold |
|
46,698 |
|
|
44,975 |
|
Gross profit |
|
28,747 |
|
|
24,167 |
|
Gross profit margin |
|
38.1 |
% |
|
35.0 |
% |
|
|
|
|
|
Selling, general, and
administrative expenses |
|
20,181 |
|
|
20,221 |
|
Acquisition costs |
|
— |
|
|
443 |
|
Impairment of goodwill and
indefinite-lived intangibles |
|
2,440 |
|
|
— |
|
Restructuring costs |
|
205 |
|
|
1,746 |
|
Operating income |
|
5,921 |
|
|
1,757 |
|
Operating margin |
|
7.8 |
% |
|
2.5 |
% |
|
|
|
|
|
Other income (expense): |
|
|
|
|
Interest expense |
|
(329 |
) |
|
(436 |
) |
Other |
|
(2,353 |
) |
|
(316 |
) |
Other expenses - net |
|
(2,682 |
) |
|
(752 |
) |
|
|
|
|
|
Income before taxes |
|
3,239 |
|
|
1,005 |
|
|
|
|
|
|
Income tax expense
(benefit) |
|
3,142 |
|
|
(2,854 |
) |
|
|
|
|
|
Net earnings |
|
97 |
|
|
3,859 |
|
Less: net loss attributable to
noncontrolling interests |
|
(21 |
) |
|
(12 |
) |
Net earnings attributable to
VPG stockholders |
|
$ |
118 |
|
|
$ |
3,871 |
|
|
|
|
|
|
Basic earnings per share
attributable to VPG stockholders |
|
$ |
0.01 |
|
|
$ |
0.29 |
|
Diluted earnings per share
attributable to VPG stockholders |
|
$ |
0.01 |
|
|
$ |
0.28 |
|
|
|
|
|
|
Weighted average shares
outstanding - basic |
|
13,575 |
|
|
13,523 |
|
Weighted average shares
outstanding - diluted |
|
13,662 |
|
|
13,623 |
|
VISHAY PRECISION
GROUP, INC. |
|
|
|
|
Consolidated Statements of
Operations |
|
|
|
|
(Unaudited - In thousands,
except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Years ended |
|
|
December 31,2020 |
|
December 31,2019 |
Net revenues |
|
$ |
269,812 |
|
|
$ |
283,958 |
|
Costs of products sold |
|
165,541 |
|
|
172,341 |
|
Gross profit |
|
104,271 |
|
|
111,617 |
|
Gross profit margin |
|
38.6 |
% |
|
39.3 |
% |
|
|
|
|
|
Selling, general, and
administrative expenses |
|
78,256 |
|
|
79,622 |
|
Acquisition costs |
|
— |
|
|
443 |
|
Impairment of goodwill and
indefinite-lived intangibles |
|
2,440 |
|
|
— |
|
Executive severance costs |
|
— |
|
|
611 |
|
Restructuring costs |
|
918 |
|
|
2,293 |
|
Operating income |
|
22,657 |
|
|
28,648 |
|
Operating margin |
|
8.4 |
% |
|
10.1 |
% |
|
|
|
|
|
Other income (expense): |
|
|
|
|
Interest expense |
|
(1,366 |
) |
|
(1,507 |
) |
Other |
|
(2,982 |
) |
|
(701 |
) |
Other expenses - net |
|
(4,348 |
) |
|
(2,208 |
) |
|
|
|
|
|
Income before taxes |
|
18,309 |
|
|
26,440 |
|
|
|
|
|
|
Income tax expense |
|
7,509 |
|
|
4,145 |
|
|
|
|
|
|
Net earnings |
|
10,800 |
|
|
22,295 |
|
Less: net earnings
attributable to noncontrolling interests |
|
13 |
|
|
107 |
|
Net earnings attributable to
VPG stockholders |
|
$ |
10,787 |
|
|
$ |
22,188 |
|
|
|
|
|
|
Basic earnings per share
attributable to VPG stockholders |
|
$ |
0.80 |
|
|
$ |
1.64 |
|
Diluted earnings per share
attributable to VPG stockholders |
|
$ |
0.79 |
|
|
$ |
1.63 |
|
|
|
|
|
|
Weighted average shares
outstanding - basic |
|
13,566 |
|
|
13,515 |
|
Weighted average shares
outstanding - diluted |
|
13,623 |
|
|
13,597 |
|
VISHAY PRECISION
GROUP, INC. |
|
|
|
|
Consolidated Balance
Sheets |
|
|
|
|
(In thousands, except per
share amounts) |
|
|
|
|
|
|
December 31,2020 |
|
December 31,2019 |
|
|
(Unaudited) |
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
98,438 |
|
|
$ |
86,910 |
|
Accounts receivable |
|
45,339 |
|
|
43,198 |
|
Inventories: |
|
|
|
|
Raw materials |
|
21,894 |
|
|
21,701 |
|
Work in process |
|
21,534 |
|
|
23,128 |
|
Finished goods |
|
18,920 |
|
|
22,066 |
|
Inventories |
|
62,348 |
|
|
66,895 |
|
Prepaid expenses and other current assets |
|
15,761 |
|
|
15,558 |
|
Total current assets |
|
221,886 |
|
|
212,561 |
|
|
|
|
|
|
Property and equipment, at
cost: |
|
|
|
|
Land |
|
4,282 |
|
|
4,243 |
|
Buildings and improvements |
|
67,581 |
|
|
52,708 |
|
Machinery and equipment |
|
115,717 |
|
|
111,492 |
|
Software |
|
10,026 |
|
|
9,384 |
|
Construction in progress |
|
6,341 |
|
|
2,485 |
|
Accumulated depreciation |
|
(128,931 |
) |
|
(119,042 |
) |
Property and equipment,
net |
|
75,016 |
|
|
61,270 |
|
|
|
|
|
|
Goodwill |
|
31,105 |
|
|
35,018 |
|
|
|
|
|
|
Intangible assets, net |
|
32,039 |
|
|
34,198 |
|
Operating lease right-of-use
assets |
|
21,788 |
|
|
8,691 |
|
Other assets |
|
20,053 |
|
|
18,675 |
|
Total assets |
|
$ |
401,887 |
|
|
$ |
370,413 |
|
VISHAY PRECISION
GROUP, INC. |
|
|
|
|
Consolidated Balance
Sheets |
|
|
|
|
(In thousands, except per
share amounts) |
|
|
|
|
|
|
December 31,2020 |
|
December 31,2019 |
|
|
(Unaudited) |
|
|
Liabilities and
equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Trade accounts payable |
|
$ |
10,487 |
|
|
$ |
8,869 |
|
Payroll and related expenses |
|
17,595 |
|
|
16,312 |
|
Other accrued expenses |
|
13,843 |
|
|
16,126 |
|
Income taxes |
|
1,593 |
|
|
261 |
|
Current portion of operating lease liabilities |
|
4,011 |
|
|
2,827 |
|
Current portion of long-term debt |
|
18 |
|
|
44,516 |
|
Total current liabilities |
|
47,547 |
|
|
88,911 |
|
|
|
|
|
|
Long-term debt, less current
portion |
|
40,626 |
|
|
17 |
|
Deferred income taxes |
|
3,403 |
|
|
3,478 |
|
Operating lease
liabilities |
|
19,504 |
|
|
5,811 |
|
Other liabilities |
|
16,263 |
|
|
14,775 |
|
Accrued pension and other
postretirement costs |
|
16,687 |
|
|
15,669 |
|
Total liabilities |
|
144,030 |
|
|
128,661 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
Preferred stock |
|
— |
|
|
— |
|
Common stock |
|
1,317 |
|
|
1,312 |
|
Class B convertible common stock |
|
103 |
|
|
103 |
|
Treasury stock |
|
(8,765 |
) |
|
(8,765 |
) |
Capital in excess of par value |
|
197,764 |
|
|
197,125 |
|
Retained earnings |
|
100,075 |
|
|
89,288 |
|
Accumulated other comprehensive loss |
|
(32,671 |
) |
|
(37,703 |
) |
Total Vishay Precision Group, Inc. stockholders' equity |
|
257,823 |
|
|
241,360 |
|
Noncontrolling interests |
|
34 |
|
|
392 |
|
Total equity |
|
257,857 |
|
|
241,752 |
|
Total liabilities and
equity |
|
$ |
401,887 |
|
|
$ |
370,413 |
|
VISHAY PRECISION
GROUP, INC. |
|
|
|
|
Consolidated Statements of
Cash Flows |
|
|
|
|
(Unaudited - In
thousands) |
|
|
|
|
Years ended |
|
|
December 31,2020 |
|
December 31,2019 |
Operating
activities |
|
|
|
|
Net earnings |
|
$ |
10,800 |
|
|
$ |
22,295 |
|
Adjustments to reconcile net
earnings to net cash provided by operating activities: |
|
|
|
|
Impairment of goodwill and indefinite-lived intangibles |
|
2,440 |
|
|
— |
|
Depreciation and amortization |
|
12,507 |
|
|
11,795 |
|
Loss from extinguishment of debt |
|
30 |
|
|
— |
|
(Gain) loss on disposal of property and equipment |
|
(130 |
) |
|
34 |
|
Reclassification of foreign currency translation adjustment related
to disposal of subsidiary |
|
— |
|
|
(827 |
) |
Share-based compensation expense |
|
1,387 |
|
|
1,336 |
|
Inventory write-offs for obsolescence |
|
2,525 |
|
|
2,588 |
|
Deferred income taxes |
|
1,153 |
|
|
(2,556 |
) |
Other |
|
1,467 |
|
|
358 |
|
Net changes in operating
assets and liabilities, net of acquisition: |
|
|
|
|
Accounts receivable |
|
(753 |
) |
|
11,369 |
|
Inventories |
|
3,254 |
|
|
(619 |
) |
Prepaid expenses and other current assets |
|
67 |
|
|
(5,087 |
) |
Trade accounts payable |
|
59 |
|
|
(2,273 |
) |
Other current liabilities |
|
507 |
|
|
(7,481 |
) |
Net cash provided by operating
activities |
|
35,313 |
|
|
30,932 |
|
Investing
activities |
|
|
|
|
Capital expenditures |
|
(22,949 |
) |
|
(11,196 |
) |
Proceeds from sale of property
and equipment |
|
983 |
|
|
615 |
|
Purchase of business |
|
156 |
|
|
(40,481 |
) |
Net cash used in investing
activities |
|
(21,810 |
) |
|
(51,062 |
) |
Financing
activities |
|
|
|
|
Principal payments on
long-term debt |
|
(3,493 |
) |
|
(4,618 |
) |
Debt issuance costs |
|
(402 |
) |
|
— |
|
Proceeds from revolving
facility |
|
— |
|
|
22,000 |
|
Purchase of non-controlling
interest |
|
(253 |
) |
|
— |
|
Distributions to
noncontrolling interests |
|
(70 |
) |
|
(52 |
) |
Payments of employee taxes on
certain share-based arrangements |
|
(813 |
) |
|
(854 |
) |
Net cash (used in) provided by
financing activities |
|
(5,031 |
) |
|
16,476 |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
3,056 |
|
|
405 |
|
Increase (decrease) in cash
and cash equivalents |
|
11,528 |
|
|
(3,249 |
) |
Cash and cash equivalents at
beginning of year |
|
86,910 |
|
|
90,159 |
|
Cash and cash equivalents at
end of year |
|
$ |
98,438 |
|
|
$ |
86,910 |
|
|
|
|
|
|
Supplemental
disclosure of investing transactions: |
|
|
|
|
Capital expenditures
purchased |
|
$ |
(24,327 |
) |
|
$ |
(10,529 |
) |
Capital expenditures accrued
but not yet paid |
|
$ |
2,561 |
|
|
$ |
1,183 |
|
VISHAY
PRECISION GROUP, INC. |
Reconciliation of Consolidated Adjusted Gross Profit,
Operating Income, Net Earnings Attributable to VPG Stockholders and
Diluted Earnings Per Share |
(Unaudited - In
thousands except per share data) |
|
|
|
Gross Profit |
|
Operating Income |
|
Net EarningsAttributable to VPGStockholders |
|
Diluted Earnings Pershare |
Fiscal Year Ended
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
As reported - GAAP |
|
104,271 |
|
|
111,617 |
|
|
22,657 |
|
|
28,648 |
|
|
$ |
10,787 |
|
|
$ |
22,188 |
|
|
$ |
0.79 |
|
|
$ |
1.63 |
|
As reported - GAAP
Margins |
|
38.6 |
% |
|
39.3 |
% |
|
8.4 |
% |
|
10.1 |
% |
|
|
|
|
|
|
|
|
Acquisition purchase
accounting adjustments |
|
569 |
|
|
1,254 |
|
|
569 |
|
|
1,254 |
|
|
569 |
|
|
1,254 |
|
|
0.04 |
|
|
0.09 |
|
Acquisition costs |
|
|
|
|
|
— |
|
|
443 |
|
|
— |
|
|
443 |
|
|
— |
|
|
0.03 |
|
COVID-19 impact |
|
434 |
|
|
|
— |
|
|
(366 |
) |
|
— |
|
|
(366 |
) |
|
— |
|
|
(0.03 |
) |
|
|
Executive Severance costs |
|
|
|
|
|
— |
|
|
611 |
|
|
— |
|
|
611 |
|
|
— |
|
|
0.04 |
|
Impairment of goodwill and
indefinite-lived intangibles |
|
|
|
|
|
2,440 |
|
|
— |
|
|
2,440 |
|
|
— |
|
|
0.18 |
|
|
— |
|
Restructuring costs |
|
|
|
|
|
918 |
|
|
2,293 |
|
|
918 |
|
|
2,293 |
|
|
0.07 |
|
|
0.17 |
|
Foreign exchange (gain)/loss
(1) |
|
|
|
|
|
|
|
|
|
2,246 |
|
|
1,638 |
|
|
0.16 |
|
|
0.12 |
|
Less: Tax effect of
reconciling items and discrete tax items (1) |
|
|
|
|
|
|
|
|
|
(1,381 |
) |
|
4,102 |
|
|
(0.11 |
) |
|
0.29 |
|
As Adjusted - Non GAAP |
|
$ |
105,274 |
|
|
$ |
112,871 |
|
|
$ |
26,218 |
|
|
$ |
33,249 |
|
|
$ |
17,975 |
|
|
$ |
24,325 |
|
|
$ |
1.32 |
|
|
$ |
1.79 |
|
As Adjusted - Non GAAP
Margins |
|
39.0 |
% |
|
39.7 |
% |
|
9.7 |
% |
|
11.7 |
% |
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
Operating Income |
|
Net EarningsAttributable to VPGStockholders |
|
Diluted Earnings Pershare |
Fiscal Quarter Ended
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
As reported - GAAP |
|
$ |
28,747 |
|
|
$ |
24,167 |
|
|
$ |
5,921 |
|
|
$ |
1,757 |
|
|
$ |
118 |
|
|
$ |
3,871 |
|
|
0.01 |
|
|
$ |
0.28 |
|
As reported - GAAP
Margins |
|
38.1 |
% |
|
35.0 |
% |
|
7.8 |
% |
|
2.5 |
% |
|
|
|
|
|
|
|
|
Acquisition purchase
accounting adjustments |
|
9 |
|
|
1,254 |
|
|
9 |
|
|
1,254 |
|
|
9 |
|
|
1,254 |
|
|
— |
|
|
0.09 |
|
Acquisition costs |
|
|
|
|
|
— |
|
|
443 |
|
|
— |
|
|
443 |
|
|
— |
|
|
0.03 |
|
COVID-19 impact |
|
(102 |
) |
|
— |
|
|
(489 |
) |
|
— |
|
|
(489 |
) |
|
— |
|
|
(0.04 |
) |
|
|
Executive Severance costs |
|
|
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Impairment of goodwill and
indefinite-lived intangibles |
|
|
|
|
|
2,440 |
|
|
— |
|
|
2,440 |
|
|
— |
|
|
0.18 |
|
|
— |
|
Restructuring costs |
|
|
|
|
|
205 |
|
|
1,746 |
|
|
205 |
|
|
1,746 |
|
|
0.02 |
|
|
0.13 |
|
Foreign exchange (gain)/loss
(1) |
|
|
|
|
|
|
|
|
|
2,123 |
|
|
278 |
|
|
0.16 |
|
|
0.02 |
|
Less: Tax effect of
reconciling items and discrete tax items (1) |
|
|
|
|
|
|
|
|
|
(1,419 |
) |
|
3,727 |
|
|
(0.10 |
) |
|
0.27 |
|
As Adjusted - Non GAAP |
|
$ |
28,654 |
|
|
$ |
25,421 |
|
|
$ |
8,086 |
|
|
$ |
5,200 |
|
|
$ |
5,825 |
|
|
$ |
3,865 |
|
|
$ |
0.43 |
|
|
$ |
0.28 |
|
As Adjusted - Non GAAP
Margins |
|
38.0 |
% |
|
36.8 |
% |
|
10.7 |
% |
|
7.5 |
% |
|
|
|
|
|
|
|
|
(1) The 2019 numbers presented have been updated to reflect the
adjustment for foreign exchange (gain)/loss
VISHAY
PRECISION GROUP, INC. |
|
|
|
|
Reconciliation of
Adjusted Gross Profit by segment |
|
|
|
|
(Unaudited - In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal quarter ended |
|
|
December 31, 2020 |
|
December 31, 2019 |
|
September 26, 2020 |
Foil Technology
Products |
|
|
|
|
|
|
As reported - GAAP |
|
$ |
14,023 |
|
|
$ |
10,349 |
|
|
$ |
13,515 |
|
As reported - GAAP
Margins |
|
38.4 |
% |
|
34.9 |
% |
|
41.1 |
% |
COVID-19 impact |
|
163 |
|
|
|
|
159 |
|
As Adjusted - Non GAAP |
|
$ |
14,186 |
|
|
$ |
10,349 |
|
|
$ |
13,674 |
|
As Adjusted - Non GAAP
Margins |
|
38.9 |
% |
|
34.9 |
% |
|
41.6 |
% |
|
|
|
|
|
|
|
Force
Sensors |
|
|
|
|
|
|
As reported - GAAP |
|
$ |
4,737 |
|
|
$ |
3,637 |
|
|
$ |
4,235 |
|
As reported - GAAP
Margins |
|
29.1 |
% |
|
24.2 |
% |
|
30.5 |
% |
COVID-19 impact |
|
81 |
|
|
|
|
94 |
|
As Adjusted - Non GAAP |
|
$ |
4,818 |
|
|
$ |
3,637 |
|
|
$ |
4,329 |
|
As Adjusted - Non GAAP
Margins |
|
29.6 |
% |
|
24.2 |
% |
|
31.2 |
% |
|
|
|
|
|
|
|
Weighing and Control
Systems |
|
|
|
|
|
|
As reported - GAAP |
|
$ |
9,987 |
|
|
$ |
10,180 |
|
|
$ |
9,599 |
|
As reported - GAAP
Margins |
|
44.0 |
% |
|
41.6 |
% |
|
46.2 |
% |
Acquisition purchase
accounting adjustments |
|
9 |
|
|
1,254 |
|
|
4 |
|
COVID-19 impact |
|
(346 |
) |
|
|
|
(275 |
) |
As Adjusted - Non GAAP |
|
$ |
9,650 |
|
|
$ |
11,434 |
|
|
$ |
9,328 |
|
As Adjusted - Non GAAP
Margins |
|
42.5 |
% |
|
46.8 |
% |
|
44.9 |
% |
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