VPG Reports Fiscal 2024 Fourth Quarter and Twelve Months Results

MALVERN, Pa., Feb. 12, 2025 (GLOBE NEWSWIRE) -- Vishay Precision Group, Inc. (NYSE: VPG), a leader in precision measurement technologies, today announced its results for its fiscal 2024 fourth quarter and twelve fiscal months ended December 31, 2024. Fourth Quarter Highlights: Revenues of $72.7 million decreased 18.8% from a year agoGross profit margin was 38.2%, as compared to 43.0% a year agoAdjusted gross profit margin* was 38.3%, as compared to 43.0% a year agoOperating margin was 0.3%, as compared to 13.4% reported a year agoAdjusted operating margin* was 0.8%, as compared to 13.6% reported a year agoDiluted net earnings per share were $0.06, as compared to $0.31 reported a year agoAdjusted diluted net earnings per share* were $0.03, as compared to $0.61 reported a year agoEBITDA* was $6.6 million with an EBITDA margin* of 9.1%Adjusted EBITDA* was $5.1 million with an adjusted EBITDA margin* of 7.0%Cash from operating activities was $6.7 million with adjusted free cash flow* of $4.6 million 2024 Full Year Highlights: Revenues of $306.5 million decreased 13.7% year-over-yearGross profit margin was 41.0%, as compared to 42.3% a year agoAdjusted gross profit margin* was 41.0%, as compared to 42.4% a year agoOperating margin was 5.5%, as compared to 11.8% reported last yearAdjusted operating margin* was 6.0%, as compared to 12.4% reported last yearDiluted net earnings per share were $0.74, as compared to $1.88 reported a year agoAdjusted diluted net earnings per share* were $0.95, as compared to $2.17 reported a year agoEBITDA* was $36.0 million with an EBITDA margin* of 11.7%Adjusted EBITDA* was $35.7 million with an adjusted EBITDA margin* of 11.6%Cash from operating activities was $19.8 million with adjusted free cash flow* of $11.3 million Ziv Shoshani, Chief Executive Officer of VPG, commented, "2024 proved to be a challenging year, as we faced macro and cyclical headwinds. Nonetheless, orders in the fourth fiscal quarter of $72.4 million grew 5.5% sequentially resulting in a book-to-bill ratio of 1.00. This marked the first fiscal quarter of sequential bookings growth in six quarters, driven by our Sensors and Weighing Solutions segments which achieved book-to-bill ratios above 1.00 and their highest bookings level in 2024. We continue to focus on our business development pipeline, and furthering our progress with key projects in industrial and medical robotics, data center and telecommunications applications, among others. Our fourth-fiscal quarter results included approximately $700 thousand in one-time costs, primarily related to R&D projects and operational fixed costs. As we continue to adjust our costs to current revenue levels and implement ongoing cost-savings initiatives, we are positioned to deliver significant operating leverage as revenues strengthen. The integration of Nokra, the precision measurement business that we acquired on September 30, 2024, is on track. Our strong balance sheet and net cash position give us a solid platform as we continue to look to acquire additional high-quality businesses." The Company's fourth fiscal quarter 2024 net earnings attributable to VPG stockholders were $0.8 million, or $0.06 per diluted share, compared to $4.2 million, or $0.31 per diluted share, in the fourth fiscal quarter of 2023. In the fiscal year ended December 31, 2024, net earnings attributable to VPG stockholders were $9.9 million, or $0.74 per diluted share, compared to $25.7 million, or $1.88 per diluted share, in the fiscal year ended December 31, 2023. The fourth fiscal quarter 2024 adjusted net earnings* attributable to VPG stockholders were $0.4 million, or $0.03 per diluted share, compared to adjusted net earnings* attributable to VPG stockholders of $8.2 million, or $0.61 per diluted share, for the comparable prior year period. In the fiscal year ended December 31, 2024, adjusted net earnings* attributable to VPG stockholders were $12.7 million, or $0.95 per diluted share, compared to adjusted net earnings* attributable to VPG stockholders of $29.7 million, or $2.17 per diluted share, for the comparable prior year period. Segment PerformanceThe Sensors segment revenues of $25.8 million in the fourth fiscal quarter of 2024 decreased 24.8% from the prior year of $34.3 million and decreased 8.7% sequentially from $28.2 million in the third quarter of 2024. The year-over-year decrease in revenues was primarily attributable to lower sales of precision resistors in the Test & Measurement market and lower sales of advanced sensors in our Other markets for consumer applications. Sequentially, the decline in revenues primarily reflected lower sales of advanced sensors in our Other markets for consumer applications and lower precision resistor sales in the Test and Measurement market. Gross profit margin for the Sensors segment of 32.0% for the fourth fiscal quarter of 2024 was lower compared to 40.2% in the fourth fiscal quarter of 2023, and higher compared to 31.0% in the third fiscal quarter of 2024. The year-over-year decline in gross profit margin was primarily due to lower volume and unfavorable product mix, which was partially offset by improved manufacturing efficiencies. Sequentially, the increase in gross profit margin was primarily due to improved manufacturing efficiencies, which offset the impact of lower volume. The Weighing Solutions segment revenues of $25.7 million in the fourth fiscal quarter of 2024 decreased 15.4% from $30.4 million in the prior year and increased 2.2% from $25.2 million in the third fiscal quarter of 2024. The year-over-year decline in revenues was primarily attributable to lower revenues in our Other markets from OEM customers for precision agriculture and construction applications and lower revenues in the Transportation and General Industrial markets. The sequential increase in revenues reflected higher revenue in our Industrial Weighing market and in our Other markets, which offset lower revenue in the Transportation market. Gross profit margin for the Weighing Solutions segment of 34.1% for the fourth fiscal quarter of 2024 declined compared to 35.6% in the fourth fiscal quarter of 2023, and was lower than 35.1% in the third fiscal quarter of 2024. The year-over-year decline in gross profit margin was primarily due to lower volume. Sequentially, the decrease in gross profit margin was primarily due to higher materials costs and a reduction in inventory which offset higher volume. The Measurement Systems segment revenues in the fourth fiscal quarter of 2024 of $21.2 million decreased 14.8% from $24.8 million in the prior year and declined 5.3% sequentially from $22.4 million in the third fiscal quarter of 2024. The year-over-year decline in revenues was primarily attributable to lower sales of Dynamic Systems Inc. ("DSI") and Diversified Technical Systems, Inc. ("DTS") products. The sequential decline in revenue was primarily attributable to lower sales of DSI products, which was partially offset by the added revenue related to the acquisition of Nokra Optische Prüftechnik und Automation ("Nokra") on September 30, 2024. Gross profit margin for the Measurement Systems segment in the fourth fiscal quarter of 2024 was 50.9%, compared to 56.0% in the same quarter of 2023, and 56.8% in the third fiscal quarter of 2024. After adjusting for purchasing accounting impacts related to the DSI, DTS and Nokra acquisitions, adjusted gross margin for the fourth fiscal quarter of 2024 was 51.2% compared to 56.1% in the fourth fiscal quarter of 2023 and 56.8% in the third fiscal quarter of 2024. Year-over-year, the decline in adjusted gross profit margin* was primarily due to lower volume. Sequentially, the lower adjusted gross profit margin* in the fourth quarter of 2024 reflected lower volume and unfavorable product mix. Near-Term Outlook“For the first fiscal quarter of 2025 at constant fourth fiscal quarter 2024 exchange rates, we expect net revenues to be in the range of $70 million to $76 million,” said 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 Nokra, DTS and DSI acquisitions. We define "adjusted operating margin" as operating margin before purchase accounting adjustment related to the Nokra, DTS and DSI acquisitions, acquisition costs, and restructuring costs and severance costs. We define "adjusted net earnings” and "adjusted diluted net earnings per share" as net earnings attributable to VPG stockholders before purchase accounting adjustment related to the Nokra, DTS and DSI acquisitions, acquisition costs, restructuring costs and severance costs, foreign currency exchange gains and losses, and associated tax effects. We define "EBITDA" as earnings before interest, taxes, depreciation, and amortization. We define "Adjusted EBITDA" as earnings before interest, taxes, depreciation, and amortization before purchase accounting adjustment related to the Nokra, DTS and DSI acquisitions, acquisition costs, restructuring costs and severance costs, and foreign currency exchange gains and losses. "Adjusted free cash flow" for the fourth fiscal quarter of 2024 is defined as the amount of cash generated from operating activities ($6.8 million), in excess of our capital expenditures ($2.2 million), net of proceeds, if any, from the sale of assets ($0.02 million). "Adjusted free cash flow" for the fiscal year of 2024 is defined as the amount of cash generated from operating activities ($19.8 million) in excess of our capital expenditures ($9.2 million), net of proceeds, if any, from the sale of assets ($0.7 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 Quarterly Reports on Forms 10-Q. Conference Call and Webcast A conference call is scheduled for Wednesday, February 12, 2025 at 9:00 a.m. ET (8:00 a.m. CT). To access the conference call, interested parties may call 1-833-470-1428 or internationally +1-404-975-4839 and use passcode 029591, or log on to the investor relations page of the VPG website at ir.vpgsensors.com. A replay will be available approximately one hour after the completion of the call by calling toll-free 1-866-813-9403 or internationally +44-204-525-0658 and using the passcode 703783. The replay will also be available on the investor relations page of the VPG website at ir.vpgsensors.com for a limited time. About VPG Vishay Precision Group, Inc. (VPG) is a leader in precision measurement sensing technologies. Our sensors, weighing solutions and measurement systems optimize and enhance our customers’ product performance across a broad array of markets to make our world safer, smarter, and more productive. To learn more, visit VPG at https://ir.vpgsensors.com/ and follow us on LinkedIn. Forward-Looking Statements From time to time, information provided by us, including, but not limited to, statements in this press release, or other statements made by or on our behalf, may contain or constitute "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; impact of inflation; potential issues respecting the United States federal government debt ceiling; global labor and supply chain challenges; 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, and health (including pandemics) instabilities; instability caused by military hostilities in the regions or countries in which we operate (including Israel); 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; compliance issues under applicable laws, such as export control laws, including the outcome of our voluntary self-disclosure of export control non-compliance; significant developments from the recent and potential changes in tariffs and trade regulation; our ability to execute our new corporate strategy and business continuity, operational and budget plans; 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, 2023. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this report or as of the dates otherwise indicated in such forward-looking statements. 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.781-222-3516info@vpgsensors.com VISHAY PRECISION GROUP, INC. Consolidated Statements of Operations (Unaudited - In thousands, except per share amounts) Fiscal quarter ended December 31, 2024 December 31, 2023Net revenues$72,653 $89,528 Costs of products sold 44,882 51,032 Gross profit 27,771 38,496 Gross profit margin 38.2% 43.0% Selling, general, and administrative expenses 27,273 26,356 Acquisition costs 101 — Restructuring costs 198 129 Operating income 199 12,011 Operating margin 0.3% 13.4% Other income (expense): Interest expense (587) (779)Other 2,297 (2,509) Other income (expense) - net 1,710 (3,288) Income before taxes 1,910 8,723 Income tax expense 1,222 4,403 Net earnings 688 4,320 Less: net (loss) earnings attributable to noncontrolling interests (80) 93 Net earnings attributable to VPG stockholders$768 $4,227 Basic earnings per share attributable to VPG stockholders$0.06 $0.31 Diluted earnings per share attributable to VPG stockholders$0.06 $0.31 Weighted average shares outstanding - basic 13,239 13,509 Weighted average shares outstanding - diluted 13,252 13,604 VISHAY PRECISION GROUP, INC. Consolidated Statements of Operations (Unaudited - In thousands, except per share amounts) Years ended December 31, 2024 December 31, 2023Net revenues$306,522 $355,048 Costs of products sold 180,990 204,706 Gross profit 125,532 150,342 Gross profit margin 41.0% 42.3% Selling, general, and administrative expenses 107,505 106,828 Acquisition costs 101 — Restructuring costs 1,062 1,560 Operating income 16,864 41,954 Operating margin 5.5% 11.8% Other income (expense): Interest expense (2,512) (3,974)Other 3,212 456 Other income (expense) - net 700 (3,518) Income before taxes 17,564 38,436 Income tax expense 7,730 12,426 Net earnings 9,834 26,010 Less: net (loss) earnings attributable to noncontrolling interests (77) 303 Net earnings attributable to VPG stockholders$9,911 $25,707 Basic earnings per share attributable to VPG stockholders$0.74 $1.89 Diluted earnings per share attributable to VPG stockholders$0.74 $1.88 Weighted average shares outstanding - basic 13,353 13,574 Weighted average shares outstanding - diluted 13,385 13,653 VISHAY PRECISION GROUP, INC. Consolidated Balance Sheets (In thousands, except per share amounts) December 31, 2024 December 31, 2023 (Unaudited) Assets Current assets: Cash and cash equivalents$79,272 $83,965 Accounts receivable 51,200 56,438 Inventories: Raw materials 33,013 33,973 Work in process 27,187 26,594 Finished goods 23,960 27,572 Inventories 84,160 88,139 Prepaid expenses and other current assets 17,088 14,520 Assets held for sale 5,229 — Total current assets 236,949 243,062 Property and equipment: Land 2,316 4,154 Buildings and improvements 68,125 72,952 Machinery and equipment 132,938 131,738 Software 10,351 9,619 Construction in progress 11,246 11,379 Accumulated depreciation (145,475) (139,206)Property and equipment, net 79,501 90,636 Goodwill 46,819 45,734 Intangible assets, net 41,815 44,634 Operating lease right-of-use assets 24,316 26,953 Other assets 21,535 20,547 Total assets$450,935 $471,566 VISHAY PRECISION GROUP, INC. Consolidated Balance Sheets (In thousands, except per share amounts) December 31, 2024 December 31, 2023 (Unaudited) Liabilities and equity Current liabilities: Trade accounts payable$9,890 $11,698 Payroll and related expenses 18,546 18,971 Other accrued expenses 19,725 22,427 Income taxes 880 4,524 Current portion of operating lease liabilities 3,998 4,004 Total current liabilities 53,039 61,624 Long-term debt 31,441 31,856 Deferred income taxes 3,779 3,490 Operating lease liabilities 19,928 22,625 Other liabilities 14,193 14,770 Accrued pension and other postretirement costs 6,695 7,276 Total liabilities 129,075 141,641 Commitments and contingencies Equity: Common stock 1,336 1,330 Class B convertible common stock 103 103 Treasury stock (25,335) (17,460)Capital in excess of par value 202,783 202,672 Retained earnings 191,977 182,066 Accumulated other comprehensive loss (48,897) (38,869)Total Vishay Precision Group, Inc. stockholders' equity 321,967 329,842 Noncontrolling interests (107) 83 Total equity 321,860 329,925 Total liabilities and equity$450,935 $471,566 VISHAY PRECISION GROUP, INC. Consolidated Statements of Cash Flows (Unaudited - In thousands) Years ended December 31, 2024 December 31, 2023Operating activities Net earnings$9,834 $26,010 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 15,805 15,550 Loss (gain) on disposal of property and equipment (148) 75 Gain on sale of short term investment — (14)Share-based compensation expense 971 2,290 Inventory write-offs for obsolescence 2,352 2,099 Deferred income taxes (972) (156)Foreign currency impacts and other items (3,147) 660 Net changes in operating assets and liabilities, net of acquisition: Accounts receivable 3,244 3,794 Inventories 2,139 (4,898)Prepaid expenses and other current assets (3,023) 4,172 Trade accounts payable (416) (2,658)Other current liabilities (5,634) 56 Other non current assets and liabilities, net (760) 439 Accrued pension and other postretirement costs, net (430) (1,526)Net cash provided by operating activities 19,815 45,893 Investing activities Capital expenditures (9,163) (15,154)Proceeds from sale of property and equipment 671 40 Purchase of short term investment — (1,000)Proceeds from sale of short term investment — 1,014 Purchase of business (4,409) — Net cash used in investing activities (12,901) (15,100)Financing activities Debt issuance costs (569) — Payments on revolving facility — (29,000)Purchase of treasury stock (7,816) (5,915)Distributions to noncontrolling interests (113) (195)Payment of excise tax on net share repurchases (41) — Payments of employee taxes on certain share-based arrangements (860) (825)Net cash used in financing activities (9,399) (35,935)Effect of exchange rate changes on cash and cash equivalents (2,208) 545 Decrease in cash and cash equivalents (4,693) (4,597)Cash and cash equivalents at beginning of year 83,965 88,562 Cash and cash equivalents at end of year$79,272 $83,965 Supplemental disclosure of investing transactions: Capital expenditures accrued but not yet paid$949 $2,317 Supplemental disclosure of financing transactions: Excise tax on net share repurchases accrued but not yet paid$60 $41 VISHAY PRECISION GROUP, INC. Reconciliation of Consolidated Adjusted Gross Profit, Operating Income, NetEarnings Attributable to VPG Stockholders and Diluted Earnings Per Share (Unaudited - In thousands except per share data) Gross Profit Operating Income Net EarningsAttributable to VPG Stockholders Diluted Earnings PershareFiscal Year Ended December 31, 2024 2023 2024 2023 2024 2023 2024 2023 As reported - GAAP$125,532 $150,342 $16,864 $41,954 $9,911 $25,707 0.74 $1.88 As reported - GAAP Margins 41.0% 42.3% 5.5% 11.8% Acquisition purchase accounting adjustments 79 335 79 335 79 335 0.01 0.02 Acquisition costs — — 101 — 101 — 0.01 — Restructuring costs — — 1,062 1,560 1,062 1,560 0.08 0.11 Severance cost — — 347 347 Foreign exchange (gain)/loss — — — — (1,879) 822 (0.14) 0.06 Less: Tax effect of reconciling items and discrete tax items — — — — (3,079) (1,245) (0.24) (0.10)As Adjusted - Non GAAP$125,611 $150,677 $18,453 $43,849 $12,700 $29,669 $0.95 $2.17 As Adjusted - Non GAAP Margins 41.0% 42.4% 6.0% 12.4% Gross Profit Operating Income Net Earnings Attributable to VPG Stockholders Diluted Earnings Per shareFiscal Quarter Ended December 31, 2024 2023 2024 2023 2024 2023 2024 2023 As reported - GAAP$27,771 $38,496 $199 $12,011 $768 $4,227 0.06 $0.31 As reported - GAAP Margins 38.2% 43.0% 0.3% 13.4% Acquisition purchase accounting adjustments 79 31 79 31 79 31 0.01 — Acquisition costs — — 101 — 101 — 0.01 — Restructuring costs — — 198 129 198 129 0.01 0.01 Foreign exchange (gain)/loss — — — — (1,913) 2,961 (0.15) 0.21 Severance cost — — — — — — — — Less: Tax effect of reconciling items and discrete tax items — — — — (1,167) (887) (0.10) (0.08)As Adjusted - Non GAAP$27,850 $38,527 $577 $12,171 $400 $8,235 $0.03 $0.61 As Adjusted - Non GAAP Margins 38.3% 43.0% 0.8% 13.6% VISHAY PRECISION GROUP, INC. Reconciliation of Adjusted Gross Profit by segment (Unaudited - In thousands) Fiscal quarter ended December 31, 2024 December 31, 2023 September 28, 2024Sensors As reported - GAAP$8,229 $13,761 $8,730 As reported - GAAP Margins 32.0% 40.2% 31.0%As Adjusted - Non GAAP$8,229 $13,761 $8,730 As Adjusted - Non GAAP Margins 32.0% 40.2% 31.0% Weighing Solutions As reported - GAAP$8,778 $10,834 $8,840 As reported - GAAP Margins 34.1% 35.6% 35.1%As Adjusted - Non GAAP$8,778 $10,834 $8,840 As Adjusted - Non GAAP Margins 34.1% 35.6% 35.1% Measurement Systems As reported - GAAP$10,764 $13,906 $12,690 As reported - GAAP Margins 50.9% 56.0% 56.8%Acquisition purchase accounting adjustments 79 31 — As Adjusted - Non GAAP$10,843 $13,937 $12,690 As Adjusted - Non GAAP Margins 51.2% 56.1% 56.8% VISHAY PRECISION GROUP, INC. Reconciliation of Adjusted EBITDA (Unaudited - In thousands) Fiscal quarter ended December 31, 2024 December 31, 2023 September 28, 2024Net earnings attributable to VPG stockholders$768 $4,227 $(1,351)Interest Expense 587 779 648 Income tax expense 1,222 4,403 1,874 Depreciation 3,026 2,992 2,988 Amortization 1,007 999 925 EBITDA 6,610 $13,400 $5,084 EBITDA MARGIN 9.1% 15.0% 6.7%Acquisition purchase accounting adjustments 79 31 — Acquisition costs 101 — — Restructuring costs 198 129 82 Foreign exchange loss/(gain) (1,913) 2,961 2,912 ADJUSTED EBITDA 5,075 16,521 8,078 ADJUSTED EBITDA MARGIN 7.0% 18.5% 10.7% VISHAY PRECISION GROUP, INC. Reconciliation of Adjusted EBITDA (Unaudited - In thousands) Year ended December 31, 2024 December 31, 2023Net earnings attributable to VPG stockholders$9,911 $25,707 Interest Expense 2,512 3,974 Income tax expense 7,730 12,426 Depreciation 12,022 11,798 Amortization 3,783 3,752 EBITDA 35,958 $57,657 EBITDA MARGIN 11.7% 16.2%Acquisition purchase accounting adjustments 79 335 Acquisition costs 101 — Restructuring costs 1,062 1,560 Severance cost 347 — Foreign exchange (gain) loss (1,879) 822 ADJUSTED EBITDA 35,668 60,374 ADJUSTED EBITDA MARGIN 11.6% 17.0%

VPG Reports Fiscal 2024 Fourth Quarter and Twelve Months Results

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