Contact:
Steve Cantor
Vishay Precision Group, Inc.
781-222-3516
info@vpgsensors.com
VISHAY PRECISION GROUP, INC. Consolidated Condensed Statements of Operations (Unaudited - In thousands, except per share amounts) Fiscal quarter ended October 1, 2022 October 2, 2021Net revenues$90,057 $81,974 Costs of products sold 52,737 50,129 Gross profit 37,320 31,845 Gross profit margin 41.4% 38.8% Selling, general, and administrative expenses 25,271 24,580 Restructuring costs 165 — Operating income 11,884 7,265 Operating margin 13.2% 8.9% Other income (expense): Interest expense (636) (328)Other 1,223 174 Other income (expense) 587 (154) Income before taxes 12,471 7,111 Income tax expense 2,323 1,662 Net earnings 10,148 5,449 Less: net earnings attributable to noncontrolling interests 30 70 Net earnings attributable to VPG stockholders$10,118 $5,379 Basic earnings per share attributable to VPG stockholders$0.74 $0.39 Diluted earnings per share attributable to VPG stockholders$0.74 $0.39 Weighted average shares outstanding - basic 13,649 13,626 Weighted average shares outstanding - diluted 13,708 13,664 VISHAY PRECISION GROUP, INC. Consolidated Condensed Statements of Operations (Unaudited - In thousands, except per share amounts) Nine fiscal months ended October 1, 2022 October 2, 2021Net revenues$266,340 $227,902 Costs of products sold 156,436 137,637 Gross profit 109,904 90,265 Gross profit margin 41.3% 39.6% Selling, general, and administrative expenses 77,824 69,216 Acquisition costs — 1,198 Impairment of goodwill and indefinite-lived intangibles — 1,223 Restructuring costs 1,330 — Operating income 30,750 18,628 Operating margin 11.5% 8.2% Other income (expense): Interest expense (1,393) (906)Other 5,006 421 Other income (expense) 3,613 (485) Income before taxes 34,363 18,143 Income tax expense 6,651 3,688 Net earnings 27,712 14,455 Less: net earnings attributable to noncontrolling interests 483 195 Net earnings attributable to VPG stockholders$27,229 $14,260 Basic earnings per share attributable to VPG stockholders$2.00 $1.05 Diluted earnings per share attributable to VPG stockholders$1.99 $1.04 Weighted average shares outstanding - basic 13,645 13,612 Weighted average shares outstanding - diluted 13,692 13,647 VISHAY PRECISION GROUP, INC. Consolidated Condensed Balance Sheets (In thousands) October 1, 2022 December 31, 2021 (Unaudited) Assets Current assets: Cash and cash equivalents$79,910 $84,335 Accounts receivable, net 55,151 58,265 Inventories: Raw materials 31,036 25,464 Work in process 27,903 23,851 Finished goods 26,384 27,112 Inventories, net 85,323 76,427 Prepaid expenses and other current assets 16,160 15,916 Total current assets 236,544 234,943 Property and equipment: Land 4,029 4,241 Buildings and improvements 69,769 68,778 Machinery and equipment 122,412 122,202 Software 9,136 8,871 Construction in progress 6,364 7,747 Accumulated depreciation (129,225) (130,619)Property and equipment, net 82,485 81,220 Goodwill 45,460 45,830 Intangible assets, net 49,081 52,437 Operating lease right-of-use assets 24,737 27,764 Other assets 15,890 19,695 Total assets$454,197 $461,889 VISHAY PRECISION GROUP, INC. Consolidated Condensed Balance Sheets (In thousands) October 1, 2022 December 31, 2021 (Unaudited) Liabilities and equity Current liabilities: Trade accounts payable$10,234 $14,876 Payroll and related expenses 20,658 23,772 Other accrued expenses 21,863 17,596 Income taxes 818 3,774 Current portion of operating lease liabilities 4,119 4,610 Total current liabilities 57,692 64,628 Long-term debt, less current portion 60,780 60,714 Deferred income taxes 4,585 5,848 Operating lease liabilities 20,422 25,140 Other liabilities 13,959 16,264 Accrued pension and other postretirement costs 10,259 12,253 Total liabilities 167,697 184,847 Commitments and contingencies Equity: Common stock 1,325 1,322 Class B convertible common stock 103 103 Treasury stock (9,826) (8,765)Capital in excess of par value 200,308 199,151 Retained earnings 147,525 120,296 Accumulated other comprehensive loss (52,995) (35,008)Total Vishay Precision Group, Inc. stockholders' equity 286,440 277,099 Noncontrolling interests 60 (57)Total equity 286,500 277,042 Total liabilities and equity$454,197 $461,889 VISHAY PRECISION GROUP, INC. Consolidated Condensed Statements of Cash Flows (Unaudited - In thousands) Nine Fiscal Months Ended October 1, 2022 October 2, 2021Operating activities Net earnings$27,712 $14,455 Adjustments to reconcile net earnings to net cash provided by operating activities: Impairment of goodwill and indefinite-lived intangibles — 1,223 Depreciation and amortization 11,519 11,033 Gain on sale of property and equipment (182) (35)Reclassification of foreign currency translation adjustment related to disposal of subsidiary 191 — Share-based compensation expense 1,583 1,328 Inventory write-offs for obsolescence 1,451 1,613 Deferred income taxes (72) (1,412)Other (4,319) (2,022)Net changes in operating assets and liabilities: Accounts receivable, net (2,077) (3,078)Inventories, net (14,151) (9,624)Prepaid expenses and other current assets (984) (3,591)Trade accounts payable (1,459) 3,695 Other current liabilities 1,303 4,496 Net cash provided by operating activities 20,515 18,081 Investing activities Capital expenditures (15,545) (11,191)Proceeds from sale of property and equipment 397 181 Purchase of business, net of cash acquired — (47,216)Net cash used in investing activities (15,148) (58,226) Financing activities Principal payments on long-term debt — (18)Proceeds from revolving facility — 20,000 Purchase of treasury stock (1,061) — Distributions to noncontrolling interests (366) (244)Payments of employee taxes on certain share-based arrangements (435) (853)Net cash (used in) provided by financing activities (1,862) 18,885 Effect of exchange rate changes on cash and cash equivalents (7,930) (1,634)Decrease in cash and cash equivalents (4,425) (22,894) Cash and cash equivalents at beginning of period 84,335 98,438 Cash and cash equivalents at end of period$79,910 $75,544 Supplemental disclosure of investing transactions: Capital expenditures purchased$(13,198) $(9,368)Capital expenditures accrued but not yet paid$720 $738 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) Gross Profit Operating Income Net Earnings Attributable
to VPG Stockholders Diluted Earnings Per shareThree months ended October 1,
2022 October 2,
2021 October 1,
2022 October 2,
2021 October 1,
2022 October 2,
2021 October 1,
2022 October 2,
2021As reported - GAAP$37,320 $31,845 $11,884 $7,265 $10,118 $5,379 $0.74 $0.39As reported - GAAP Margins 41.4% 38.8% 13.2% 8.9% Acquisition purchase accounting adjustments 260 1,329 260 1,329 260 1,329 0.02 0.10COVID-19 impact — 111 — 111 — 111 — 0.01Start-up costs — 970 — 970 — 970 — 0.07Restructuring costs — 165 — 165 — 0.01 —Foreign currency exchange (gain)/loss — — (1,261) 38 (0.09) 0.01Less: Tax effect of reconciling items and discrete tax items — — (194) 754 (0.01) 0.06As Adjusted - Non GAAP$37,580 $34,255 $12,309 $9,675 $9,476 $7,073 $0.69 $0.52As Adjusted - Non GAAP Margins 41.7% 41.8% 13.7% 11.8% 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) Gross Profit Operating Income Net Earnings Attributable
to VPG Stockholders Diluted Earnings Per shareNine fiscal months ended October 1,
2022 October 2,
2021 October 1,
2022 October 2,
2021 October 1,
2022 October 2,
2021 October 1,
2022 October 2,
2021As reported - GAAP$109,904 $90,265 $30,750 $18,628 $27,229 $14,260 $1.99 $1.04 As reported - GAAP Margins 41.3% 39.6% 11.5% 8.2% Acquisition purchase accounting adjustments 1,310 2,259 1,310 2,259 1,310 2,259 0.10 0.17 Acquisition costs — — 1,198 — 1,198 — 0.09 COVID-19 impact 138 (66) 138 (574) 138 (574) 0.01 (0.04)Start-up costs 150 2,258 150 2,258 150 2,258 0.01 0.17 Impairment of goodwill and indefinite-lived intangibles — — — 1,223 — 1,223 — 0.09 Restructuring costs 1,330 — 1,330 — 0.10 — Foreign currency exchange (gain)/loss (5,195) (523) (0.38) (0.04)Less: Tax effect of reconciling items and discrete tax items (496) 2,160 (0.03) 0.16 As Adjusted - Non GAAP$111,502 $94,716 $33,678 $24,992 $25,458 $17,941 1.86 $1.32 As Adjusted - Non GAAP Margins 41.9% 41.6% 12.6% 11.0% VISHAY PRECISION GROUP, INC. Reconciliation of Adjusted Gross Profit by segment (Unaudited - In thousands) Fiscal quarter ended October 1, 2022 October 2, 2021 July 2, 2022Sensors As reported - GAAP$15,324 $9,568 $17,831 As reported - GAAP Margins 40.5% 31.1% 44.3%Start-up costs$— $970 $— As Adjusted - Non GAAP$15,324 $10,538 $17,831 As Adjusted - Non GAAP Margins 40.5% 34.3% 44.3% Weighing Solutions As reported - GAAP$10,470 $11,422 $9,585 As reported - GAAP Margins 33.3% 37.2% 33.7%COVID-19 impact — 111 — As Adjusted - Non GAAP$10,470 $11,533 $9,585 As Adjusted - Non GAAP Margins 33.3% 37.6% 33.7% Measurement Systems As reported - GAAP$11,526 $10,855 $9,918 As reported - GAAP Margins 55.5% 52.8% 49.9%Acquisition purchase accounting adjustments 260 1,329 679 As Adjusted - Non GAAP$11,786 $12,184 $10,597 As Adjusted - Non GAAP Margins 56.7% 59.2% 53.3%VISHAY PRECISION GROUP, INC. Reconciliation of Adjusted EBITDA (Unaudited - In thousands) Fiscal quarter ended October 1, 2022 October 2, 2021 July 2, 2022Net earnings attributable to VPG stockholders$10,118 $5,379 $10,755 Interest Expense 636 328 428 Income tax expense 2,323 1,662 2,587 Depreciation 2,937 2,955 2,832 Amortization 960 970 967 EBITDA 16,974 $11,294 $17,569 EBITDA MARGIN 18.8% 13.8% 19.8%Acquisition purchase accounting adjustments 260 1,329 679 Restructuring costs 165 — 904 COVID-19 impact — 111 — Start-up costs — 970 — Foreign currency exchange (gain)/loss (1,261) 38 (3,380)ADJUSTED EBITDA$16,138 $13,742 $15,772 ADJUSTED EBITDA MARGIN 17.9% 16.8% 17.8%