Date of Report (Date of Earliest Event Reported): | August 9, 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 August 9, 2016. |
Vishay Precision Group, Inc. | |||
Date: August 9, 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 August 9, 2016. |
• | Second quarter net revenues of $58.0 million. |
• | Second quarter earnings per diluted share of $0.14. |
• | Adjusted earnings per diluted share of $0.15. |
• | Gross profit margin of 37.1 % reflecting the impact of restructuring actions. |
• | Force Sensors segment achieved gross profit margins of 29% in the second quarter of 2016 as compared to 19% in the second quarter of 2015. |
• | Fiscal year 2016 adjusted diluted earnings per share guidance updated -in the range of $0.70 to $0.80 - at constant exchange rates as of the second quarter of 2016. |
Reconciliation of Adjusted Earnings Per Share | |||||||||||||||
(Unaudited - In thousands, except per share data) | |||||||||||||||
Fiscal quarter ended | Six fiscal months ended | ||||||||||||||
July 2, 2016 | June 27, 2015 | July 2, 2016 | June 27, 2015 | ||||||||||||
Net earnings attributable to VPG stockholders | $ | 1,868 | $ | 1,476 | $ | 2,348 | $ | 2,336 | |||||||
Reconciling items affecting operating margin | |||||||||||||||
Acquisition purchase accounting adjustments | 195 | 26 | 491 | 26 | |||||||||||
Acquisition costs | 352 | — | 414 | — | |||||||||||
Restructuring costs | 1,011 | 304 | 1,686 | 382 | |||||||||||
Reconciling items affecting income tax expense | |||||||||||||||
Less tax effect of adjustments for purchase accounting, acquisition costs, restructuring costs, and discrete tax items | 1,469 | 41 | 1,290 | 57 | |||||||||||
Adjusted net earnings attributable to VPG stockholders | $ | 1,957 | $ | 1,765 | $ | 3,649 | $ | 2,687 | |||||||
Adjusted net earnings per diluted share | $ | 0.15 | $ | 0.13 | $ | 0.27 | $ | 0.19 | |||||||
Weighted average shares outstanding - diluted | 13,405 | 13,790 | 13,402 | 13,875 |
VISHAY PRECISION GROUP, INC. | |||||||
Consolidated Condensed Statements of Operations | |||||||
(Unaudited - In thousands, except per share amounts) | |||||||
Fiscal quarter ended | |||||||
July 2, 2016 | June 27, 2015 | ||||||
Net revenues | $ | 57,996 | $ | 59,508 | |||
Costs of products sold | 36,501 | 38,473 | |||||
Gross profit | 21,495 | 21,035 | |||||
Gross profit margin | 37.1 | % | 35.3 | % | |||
Selling, general, and administrative expenses | 18,444 | 18,396 | |||||
Acquisition costs | 352 | — | |||||
Restructuring costs | 1,011 | 304 | |||||
Operating income | 1,688 | 2,335 | |||||
Operating margin | 2.9 | % | 3.9 | % | |||
Other income (expense): | |||||||
Interest expense | (371 | ) | (173 | ) | |||
Other | (30 | ) | (414 | ) | |||
Other income (expense) - net | (401 | ) | (587 | ) | |||
Income before taxes | 1,287 | 1,748 | |||||
Income tax (benefit) expense | (562 | ) | 288 | ||||
Net earnings | 1,849 | 1,460 | |||||
Less: net loss attributable to noncontrolling interests | (19 | ) | (16 | ) | |||
Net earnings attributable to VPG stockholders | $ | 1,868 | $ | 1,476 | |||
Basic earnings per share attributable to VPG stockholders | $ | 0.14 | $ | 0.11 | |||
Diluted earnings per share attributable to VPG stockholders | $ | 0.14 | $ | 0.11 | |||
Weighted average shares outstanding - basic | 13,184 | 13,580 | |||||
Weighted average shares outstanding - diluted | 13,405 | 13,790 |
VISHAY PRECISION GROUP, INC. | |||||||
Consolidated Condensed Statements of Operations | |||||||
(Unaudited - In thousands, except per share amounts) | |||||||
Six fiscal months ended | |||||||
July 2, 2016 | June 27, 2015 | ||||||
Net revenues | $ | 114,625 | $ | 116,116 | |||
Costs of products sold | 73,355 | 74,102 | |||||
Gross profit | 41,270 | 42,014 | |||||
Gross profit margin | 36.0 | % | 36.2 | % | |||
Selling, general, and administrative expenses | 36,492 | 37,144 | |||||
Acquisition costs | 414 | — | |||||
Restructuring costs | 1,686 | 382 | |||||
Operating income | 2,678 | 4,488 | |||||
Operating margin | 2.3 | % | 3.9 | % | |||
Other income (expense): | |||||||
Interest expense | (699 | ) | (360 | ) | |||
Other | 395 | (1,343 | ) | ||||
Other income (expense) - net | (304 | ) | (1,703 | ) | |||
Income before taxes | 2,374 | 2,785 | |||||
Income tax expense | 29 | 478 | |||||
Net earnings | 2,345 | 2,307 | |||||
Less: net loss attributable to noncontrolling interests | (3 | ) | (29 | ) | |||
Net earnings attributable to VPG stockholders | $ | 2,348 | $ | 2,336 | |||
Basic earnings per share attributable to VPG stockholders | $ | 0.18 | $ | 0.17 | |||
Diluted earnings per share attributable to VPG stockholders | $ | 0.18 | $ | 0.17 | |||
Weighted average shares outstanding - basic | 13,181 | 13,663 | |||||
Weighted average shares outstanding - diluted | 13,402 | 13,875 |
VISHAY PRECISION GROUP, INC. | |||||||
Consolidated Condensed Balance Sheets | |||||||
(In thousands) | |||||||
July 2, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 52,223 | $ | 62,641 | |||
Accounts receivable, net | 36,020 | 35,553 | |||||
Inventories: | |||||||
Raw materials | 15,927 | 15,062 | |||||
Work in process | 21,645 | 20,289 | |||||
Finished goods | 20,244 | 20,849 | |||||
Inventories, net | 57,816 | 56,200 | |||||
Prepaid expenses and other current assets | 8,700 | 7,814 | |||||
Assets held for sale | 2,043 | — | |||||
Total current assets | 156,802 | 162,208 | |||||
Property and equipment, at cost: | |||||||
Land | 3,516 | 3,639 | |||||
Buildings and improvements | 45,872 | 55,003 | |||||
Machinery and equipment | 88,285 | 84,409 | |||||
Software | 7,349 | 7,284 | |||||
Construction in progress | 2,697 | 2,288 | |||||
Accumulated depreciation | (92,756 | ) | (95,992 | ) | |||
Property and equipment, net | 54,963 | 56,631 | |||||
Goodwill | 19,422 | 12,603 | |||||
Intangible assets, net | 23,038 | 17,683 | |||||
Other assets | 14,614 | 14,622 | |||||
Total assets | $ | 268,839 | $ | 263,747 |
VISHAY PRECISION GROUP, INC. | |||||||
Consolidated Condensed Balance Sheets | |||||||
(In thousands) | |||||||
July 2, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
Liabilities and equity | |||||||
Current liabilities: | |||||||
Trade accounts payable | $ | 8,319 | $ | 8,004 | |||
Payroll and related expenses | 10,770 | 13,888 | |||||
Other accrued expenses | 15,066 | 16,604 | |||||
Income taxes | 1,317 | 527 | |||||
Current portion of long-term debt | 2,230 | 2,120 | |||||
Total current liabilities | 37,702 | 41,143 | |||||
Long-term debt, less current portion | 35,019 | 31,037 | |||||
Deferred income taxes | 661 | 334 | |||||
Other liabilities | 7,760 | 7,195 | |||||
Accrued pension and other postretirement costs | 11,434 | 11,597 | |||||
Total liabilities | 92,576 | 91,306 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Common stock | 1,278 | 1,276 | |||||
Class B convertible common stock | 103 | 103 | |||||
Treasury stock | (8,765 | ) | (8,765 | ) | |||
Capital in excess of par value | 190,883 | 190,436 | |||||
Retained earnings | 24,675 | 22,327 | |||||
Accumulated other comprehensive loss | (32,085 | ) | (33,121 | ) | |||
Total Vishay Precision Group, Inc. stockholders' equity | 176,089 | 172,256 | |||||
Noncontrolling interests | 174 | 185 | |||||
Total equity | 176,263 | 172,441 | |||||
Total liabilities and equity | $ | 268,839 | $ | 263,747 |
VISHAY PRECISION GROUP, INC. | |||||||
Consolidated Condensed Statements of Cash Flows | |||||||
(Unaudited - In thousands) | |||||||
Six fiscal months ended | |||||||
July 2, 2016 | June 27, 2015 | ||||||
Operating activities | |||||||
Net earnings | $ | 2,345 | $ | 2,307 | |||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 5,640 | 5,524 | |||||
Gain on disposal of property and equipment | (31 | ) | (1 | ) | |||
Share-based compensation expense | 547 | 416 | |||||
Inventory write-offs for obsolescence | 865 | 916 | |||||
Deferred income taxes | (1,540 | ) | (98 | ) | |||
Other | (804 | ) | 1,219 | ||||
Net changes in operating assets and liabilities: | |||||||
Accounts receivable, net | 991 | (1,671 | ) | ||||
Inventories, net | (1,681 | ) | (4,345 | ) | |||
Prepaid expenses and other current assets | (879 | ) | 943 | ||||
Trade accounts payable | 91 | (1,670 | ) | ||||
Other current liabilities | (5,356 | ) | (3,589 | ) | |||
Net cash provided by (used in) operating activities | 188 | (49 | ) | ||||
Investing activities | |||||||
Capital expenditures | (4,434 | ) | (5,037 | ) | |||
Proceeds from sale of property and equipment | 250 | 65 | |||||
Purchase of business | (10,727 | ) | — | ||||
Net cash used in investing activities | (14,911 | ) | (4,972 | ) | |||
Financing activities | |||||||
Principal payments on long-term debt and capital leases | (1,064 | ) | (1,810 | ) | |||
Proceeds from revolving facility | 11,000 | — | |||||
Payments on revolving facility | (6,000 | ) | — | ||||
Purchase of treasury stock | — | (6,137 | ) | ||||
Distributions to noncontrolling interests | (8 | ) | (45 | ) | |||
Net cash provided by (used in) financing activities | 3,928 | (7,992 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 377 | (1,173 | ) | ||||
Decrease in cash and cash equivalents | (10,418 | ) | (14,186 | ) | |||
Cash and cash equivalents at beginning of period | 62,641 | 79,642 | |||||
Cash and cash equivalents at end of period | $ | 52,223 | $ | 65,456 |
VISHAY PRECISION GROUP, INC. | |||||||||||||||
Reconciliation of Consolidated Adjusted Gross Profit Margin | |||||||||||||||
(Unaudited - In thousands) | |||||||||||||||
Fiscal quarter ended | Six fiscal months ended | ||||||||||||||
July 2, 2016 | June 27, 2015 | July 2, 2016 | June 27, 2015 | ||||||||||||
Gross profit | $ | 21,495 | $ | 21,035 | $ | 41,270 | $ | 42,014 | |||||||
Gross profit margin | 37.1 | % | 35.3 | % | 36.0 | % | 36.2 | % | |||||||
Reconciling items affecting gross profit margin | |||||||||||||||
Acquisition purchase accounting adjustments | 195 | 26 | 491 | 26 | |||||||||||
Adjusted gross profit | $ | 21,690 | $ | 21,061 | $ | 41,761 | $ | 42,040 | |||||||
Adjusted gross profit margin | 37.4 | % | 35.4 | % | 36.4 | % | 36.2 | % |
VISHAY PRECISION GROUP, INC. | |||||||||||||||
Reconciliation of Adjusted Earnings Per Share | |||||||||||||||
(Unaudited - In thousands, except per share data) | |||||||||||||||
Fiscal quarter ended | Six fiscal months ended | ||||||||||||||
July 2, 2016 | June 27, 2015 | July 2, 2016 | June 27, 2015 | ||||||||||||
Net earnings attributable to VPG stockholders | $ | 1,868 | $ | 1,476 | $ | 2,348 | $ | 2,336 | |||||||
Reconciling items affecting operating margin | |||||||||||||||
Acquisition purchase accounting adjustments | 195 | 26 | 491 | 26 | |||||||||||
Acquisition costs | 352 | — | 414 | — | |||||||||||
Restructuring costs | 1,011 | 304 | 1,686 | 382 | |||||||||||
Reconciling items affecting income tax expense | |||||||||||||||
Less tax effect of adjustments for purchase accounting, acquisition costs, restructuring costs, and discrete tax items | 1,469 | 41 | 1,290 | 57 | |||||||||||
Adjusted net earnings attributable to VPG stockholders | $ | 1,957 | $ | 1,765 | $ | 3,649 | $ | 2,687 | |||||||
Adjusted net earnings per diluted share | $ | 0.15 | $ | 0.13 | $ | 0.27 | $ | 0.19 | |||||||
Weighted average shares outstanding - diluted | 13,405 | 13,790 | 13,402 | 13,875 |