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Vishay Precision Group, Inc. (NYSE: VPG), a leading producer of
precision sensors and systems, based on its resistive foil technology,
today announced results for the fourth quarter and full year ended
December 31, 2012.
Net revenues for the fourth quarter of 2012 were $51.0 million,
representing a 9.6% decrease from $56.4 million of net revenues for the
comparable prior year period. Net revenues for the full year ended
December 31, 2012 were $217.6 million, representing an 8.6% decrease
from the $238.1 million of net revenues for the comparable prior year
period. Comparing the results of the fourth quarter of 2012 to the third
quarter of 2012, net revenues for the fourth quarter of 2012 decreased
by $4.4 million, or 8.0%, from $55.4 million.
Net earnings attributable to VPG stockholders for the fourth quarter
were $5.2 million, or $0.37 per diluted share, compared to net earnings
for the fourth quarter of 2011 of $1.2 million, or $0.09 per diluted
share. Net earnings attributable to VPG stockholders for the full year
2012 were $11.7 million, or $0.84 per diluted share compared to $10.8
million, or $0.78 per diluted share for the prior year period.
Net earnings attributable to VPG stockholders for the fourth quarter and
full year 2012 include various items affecting comparability, as listed
on the attached reconciliation table. Adjusted net earnings for the
fourth quarter of 2012 were $2.0 million or $0.15 per diluted share,
versus net earnings of $1.2 million, or $0.09 per diluted share for the
comparable prior year period. Adjusted net earnings for the full year
2012 were $8.6 million or $0.62 per diluted share, versus net earnings
of $10.8 million, or $0.78 per diluted share for the comparable prior
full year. Adjusted net earnings for the fourth quarter of 2012
increased by $0.1 million to $2.0 million compared to the third quarter
of 2012.
Ziv Shoshani, chief executive officer of VPG, said, “Cash flow was
impressive in the fourth quarter and for the year. Revenues have
decreased on a year-over-year basis, primarily in Europe, and to a
lesser extent in Asia -- a reflection of the soft global industrial
segment environment. We continue to execute our strategy of enhancing
organic growth and operational efficiency, investing in our technology
and pursuing acquisitions with the goal of increasing shareholder value.”
Mr. Shoshani added, “In addition to our financial results, we completed
the asset acquisition of George Kelk Corporation in January 2013. The
business is a natural fit for us and is a key component to our strategy.
This acquisition, with a purchase price of approximately $50 million
Canadian, expands our geographic and end-market leadership through a
combination of intellectual property, engineering talent, and new
products in the Weighing Control Systems segment of our existing force
measurement products. The acquisition is expected to be accretive in
2013.”
Segments
The Foil Technology Products segment revenues decreased from $26.3
million in the third quarter of 2012 to $24.5 million in the fourth
quarter of 2012. The gross margin for the Foil Technology Products
segment increased to 40.6% for the fourth quarter of 2012 from 38.9% in
the third quarter of 2012, which is mainly due to improved manufacturing
efficiencies, despite the reduction in revenues.
The Force Sensors segment revenues decreased from $16.5 million in the
third quarter of 2012 to $15.5 million for the fourth quarter of 2012.
The gross margin for the Force Sensors segment was 20.2% in the third
quarter of 2012 versus 22.5% in the fourth quarter of 2012. The increase
in gross margin is mainly due to improved manufacturing efficiencies in
our offshore facility.
The Weighing and Control Systems segment revenues decreased from $12.6
million in the third quarter of 2012 to $11.0 million for the fourth
quarter of 2012. The gross margin for the Weighing and Control Systems
segment decreased from 40.9% for the third quarter of 2012 to 37.6% in
the fourth quarter of 2012 mainly due to lower volume in Europe.
Outlook
Mr. Shoshani concluded, “The KELK acquisition expands our presence
throughout Asia Pacific, and other emerging markets and diversifies our
customer and technology base. We believe the actions we continue to take
will position the company to profitably grow in a challenging global
environment. For the first quarter of 2013, we expect overall revenues
in the range of $54 million to $59 million.”
Conference Call and Webcast
A conference call will be held on February 12, 2013 at 10:00 a.m. EST
(9:00 a.m. CST). To access the conference call, interested parties may
call 888-317-6016 or internationally 412-317-6016, or log on to the
investor relations page of the VPG website at http://ir.vishaypg.com
in listen-only mode.
A replay will be available approximately one hour after the completion
of the call by calling toll-free 877-344-7529 or internationally
412-317-0088 and using the conference number: 10023430. The replay will
also be available on the investor relations page of the VPG website at http://ir.vishaypg.com.
It will be available via phone and website for a limited time.
About Vishay Precision Group
Vishay Precision Group (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.vishaypg.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, including KELK, 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 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
year ended December 31, 2011. 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 Summary of Operations
(Unaudited - In thousands, except per share data)
Fiscal quarters ended
December 31,
December 31,
2012
2011
Net revenues
$
51,010
$
56,412
Costs of products sold
33,448
37,593
Gross profit
17,562
18,819
Gross margin
34.4
%
33.4
%
Selling, general, and administrative expenses
15,743
16,949
Acquisition costs
275
-
Operating income
1,544
1,870
Operating margin
3.0
%
3.3
%
Other income (expense):
Interest expense
(50
)
(49
)
Other
(316
)
(249
)
Total other income (expense) - net
(366
)
(298
)
Income before taxes
1,178
1,572
Income tax (benefit) expense
(4,036
)
405
Net earnings
5,214
1,167
Less: net income (loss) attributable to noncontrolling interests
49
(28
)
Net earnings attributable to VPG stockholders
$
5,165
$
1,195
Basic earnings per share attributable to VPG stockholders
$
0.39
$
0.09
Diluted earnings per share attributable to VPG stockholders
$
0.37
$
0.09
Weighted average shares outstanding - basic
13,371
13,346
Weighted average shares outstanding - diluted
13,912
13,874
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Summary of Operations
(Unaudited - In thousands, except per share data)
Years ended
December 31,
December 31,
2012
2011
Net revenues
$
217,616
$
238,107
Costs of products sold
142,584
154,996
Gross profit
75,032
83,111
Gross margin
34.5
%
34.9
%
Selling, general, and administrative expenses
63,666
66,847
Acquisition costs
275
-
Operating income
11,091
16,264
Operating margin
5.1
%
6.8
%
Other income (expense):
Interest expense
(266
)
(276
)
Other
(301
)
(878
)
Total other income (expense) - net
(567
)
(1,154
)
Income before taxes
10,524
15,110
Income tax (benefit) expense
(1,240
)
4,316
Net earnings
11,764
10,794
Less: net earnings attributable to noncontrolling interests
73
23
Net earnings attributable to VPG stockholders
$
11,691
$
10,771
Basic earnings per share attributable to VPG stockholders
$
0.87
$
0.81
Diluted earnings per share attributable to VPG stockholders
$
0.84
$
0.78
Weighted average shares outstanding - basic
13,367
13,343
Weighted average shares outstanding - diluted
13,889
13,834
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Balance Sheets
(In thousands)
December 31,
December 31,
2012
2011
Assets
(unaudited)
Current assets:
Cash and cash equivalents
$
93,881
$
80,828
Accounts receivable, net
28,766
34,214
Net inventories
49,389
49,098
Deferred income taxes
4,258
4,638
Prepaid expenses and other current assets
9,572
8,964
Total current assets
185,866
177,742
Property and equipment, net
52,092
53,738
Intangible assets, net
8,009
11,102
Other assets
17,206
14,023
Total assets
$
263,173
$
256,605
Liabilities and equity
Current liabilities:
Trade accounts payable
$
9,190
$
11,458
Payroll and related expenses
12,831
12,741
Other accrued expenses
8,705
9,538
Income taxes
1,425
2,842
Current portion of long-term debt
167
185
Total current liabilities
32,318
36,764
Long-term debt less current portion
11,154
11,463
Deferred income taxes
1,831
2,873
Other liabilities
7,433
7,769
Accrued pension and other postretirement costs
13,835
12,798
Total liabilities
66,571
71,667
Commitments and contingencies
Equity:
Common stock
1,235
1,232
Class B common stock
103
103
Capital in excess of par value
181,732
180,758
Retained earnings
28,356
16,665
Accumulated other comprehensive income (loss)
(14,983
)
(13,973
)
Total Vishay Precision Group, Inc. stockholders' equity
196,443
184,785
Noncontrolling interests
159
153
Total equity
196,602
184,938
Total liabilities and equity
$
263,173
$
256,605
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Statements of Cash Flows
(Unaudited - In thousands)
Years ended
December 31,
December 31,
2012
2011
Operating activities:
Net earnings
$
11,764
$
10,794
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization
11,661
11,321
Loss on disposal of property and equipment
158
20
Inventory write-offs for obsolescence
1,444
1,658
Share based compensation expense
1,170
961
Other
(5,122
)
(3,994
)
Changes in operating assets and liabilities
19
(5,168
)
Net cash provided by operating activities
21,094
15,592
Investing activities:
Purchase of property and equipment
(8,322
)
(16,291
)
Proceeds from sale of property and equipment
360
147
Net cash used in investing activities
(7,962
)
(16,144
)
Financing activities:
Principal payments on long-term debt and capital lease obligations
(181
)
(136
)
Net changes in short-term borrowings
-
(83
)
Distributions to noncontrolling interests
(67
)
(15
)
Net cash used in financing activities
(248
)
(234
)
Effect of exchange rate changes on cash and cash equivalents
169
(631
)
Increase (decrease) in cash and cash equivalents
13,053
(1,417
)
Cash and cash equivalents at beginning of year
80,828
82,245
Cash and cash equivalents at end of year
$
93,881
$
80,828
VISHAY PRECISION GROUP, INC.
Reconciliation of Adjusted Earnings Per Share
(Unaudited - In thousands, except per share data)
Fiscal quarters ended
Years ended
December 31,
September 29,
December 31,
December 31,
December 31,
2012
2012
2011
2012
2011
GAAP net earnings attributable to VPG stockholders
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