Date of Report (Date of Earliest Event Reported): | May 10, 2016 |
Delaware | 1-34679 | 27-0986328 |
(State or Other Jurisdiction of | (Commission File Number) | (I.R.S. Employer Identification |
Incorporation or Organization) | Number) |
3 Great Valley Parkway, Suite 150 | |
Malvern, PA | 19355 |
(Address of Principal Executive Offices) | (Zip Code) |
[ ] | Written communications pursuant to Rule 425 under the Securities Act |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act |
Exhibit No. | Description | |
99.1 | Press release, dated May 10, 2016. |
Vishay Precision Group, Inc. | |||
Date: May 10, 2016 | By: | /s/ William M. Clancy | |
Name: William M. Clancy | |||
Title: Executive Vice President and Chief | |||
Financial Officer |
Exhibit No. | Description | |
99.1 | Press release, dated May 10, 2016. |
• | 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. |
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 |
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 |
VISHAY PRECISION GROUP, INC. | |||||||
Consolidated Condensed Balance Sheets | |||||||
(In thousands) | |||||||
April 2, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
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 |