Date of Report (Date of Earliest Event Reported): | November 7, 2017 |
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 | |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||
Emerging growth company ¨ | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ |
Exhibit No. | Description | |
99.1 | Press release, dated November 7, 2017. |
Vishay Precision Group, Inc. | |||
Date: November 7, 2017 | By: | /s/ William M. Clancy | |
Name: William M. Clancy | |||
Title: Executive Vice President and Chief | |||
Financial Officer |
Exhibit No. | Description | |
99.1 |
• | Growth in revenues to $62.8 million, up 15.3% year-over- year |
• | Earnings increased to $0.32 per diluted share, compared to $0.08 reported last year |
• | Adjusted diluted EPS* increased 29% to $0.27 compared to prior year $0.21 |
• | Gross margin for the quarter is 38.6% as compared to 37.2% in the prior year’s third quarter |
• | Operating margin for the quarter is 8.5%, adjusted operating margin* for the quarter is 9.2% |
• | Cash from operations was $7.5 million with free cash flow* of $6.4 million |
• | Book-to-bill remains strong at 1.12, continues to reflect broadly improving end-markets |
VISHAY PRECISION GROUP, INC. | |||||||
Consolidated Condensed Statements of Operations | |||||||
(Unaudited - In thousands, except per share amounts) | |||||||
Fiscal quarter ended | |||||||
September 30, 2017 | October 1, 2016 | ||||||
Net revenues | $ | 62,805 | $ | 54,490 | |||
Costs of products sold | 38,538 | 34,225 | |||||
Gross profit | 24,267 | 20,265 | |||||
Gross profit margin | 38.6 | % | 37.2 | % | |||
Selling, general, and administrative expenses | 18,525 | 16,917 | |||||
Acquisition costs | — | — | |||||
Restructuring costs | 423 | 709 | |||||
Operating income | 5,319 | 2,639 | |||||
Operating margin | 8.5 | % | 4.8 | % | |||
Other income (expense): | |||||||
Interest expense | (472 | ) | (377 | ) | |||
Other | 1,717 | (44 | ) | ||||
Other income (expense) - net | 1,245 | (421 | ) | ||||
Income before taxes | 6,564 | 2,218 | |||||
Income tax expense | 2,239 | 1,135 | |||||
Net earnings | 4,325 | 1,083 | |||||
Less: net earnings attributable to noncontrolling interests | 70 | 32 | |||||
Net earnings attributable to VPG stockholders | $ | 4,255 | $ | 1,051 | |||
Basic earnings per share attributable to VPG stockholders | $ | 0.32 | $ | 0.08 | |||
Diluted earnings per share attributable to VPG stockholders | $ | 0.32 | $ | 0.08 | |||
Weighted average shares outstanding - basic | 13,291 | 13,192 | |||||
Weighted average shares outstanding - diluted | 13,470 | 13,422 |
VISHAY PRECISION GROUP, INC. | |||||||
Consolidated Condensed Statements of Operations | |||||||
(Unaudited - In thousands, except per share amounts) | |||||||
Nine fiscal months ended | |||||||
September 30, 2017 | October 1, 2016 | ||||||
Net revenues | $ | 184,911 | $ | 169,115 | |||
Costs of products sold | 113,368 | 107,580 | |||||
Gross profit | 71,543 | 61,535 | |||||
Gross profit margin | 38.7 | % | 36.4 | % | |||
Selling, general, and administrative expenses | 55,551 | 53,409 | |||||
Acquisition costs | — | 414 | |||||
Restructuring costs | 1,292 | 2,395 | |||||
Operating income | 14,700 | 5,317 | |||||
Operating margin | 7.9 | % | 3.1 | % | |||
Other income (expense): | |||||||
Interest expense | (1,392 | ) | (1,076 | ) | |||
Other | 1,034 | 351 | |||||
Other income (expense) - net | (358 | ) | (725 | ) | |||
Income before taxes | 14,342 | 4,592 | |||||
Income tax expense | 4,398 | 1,164 | |||||
Net earnings | 9,944 | 3,428 | |||||
Less: net earnings attributable to noncontrolling interests | 75 | 29 | |||||
Net earnings attributable to VPG stockholders | $ | 9,869 | $ | 3,399 | |||
Basic earnings per share attributable to VPG stockholders | $ | 0.74 | $ | 0.26 | |||
Diluted earnings per share attributable to VPG stockholders | $ | 0.73 | $ | 0.25 | |||
Weighted average shares outstanding - basic | 13,253 | 13,185 | |||||
Weighted average shares outstanding - diluted | 13,452 | 13,409 |
VISHAY PRECISION GROUP, INC. | |||||||
Consolidated Condensed Balance Sheets | |||||||
(In thousands) | |||||||
September 30, 2017 | December 31, 2016 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 69,891 | $ | 58,452 | |||
Accounts receivable, net | 43,037 | 34,270 | |||||
Inventories: | |||||||
Raw materials | 16,487 | 15,647 | |||||
Work in process | 22,215 | 21,115 | |||||
Finished goods | 20,561 | 19,559 | |||||
Inventories, net | 59,263 | 56,321 | |||||
Prepaid expenses and other current assets | 9,923 | 6,831 | |||||
Total current assets | 182,114 | 155,874 | |||||
Property and equipment, at cost: | |||||||
Land | 3,428 | 3,344 | |||||
Buildings and improvements | 49,491 | 48,454 | |||||
Machinery and equipment | 92,521 | 89,080 | |||||
Software | 7,787 | 7,441 | |||||
Construction in progress | 2,338 | 4,340 | |||||
Accumulated depreciation | (101,964 | ) | (97,374 | ) | |||
Property and equipment, net | 53,601 | 55,285 | |||||
Goodwill | 19,228 | 18,717 | |||||
Intangible assets, net | 21,025 | 21,585 | |||||
Other assets | 19,751 | 19,049 | |||||
Total assets | $ | 295,719 | $ | 270,510 |
VISHAY PRECISION GROUP, INC. | |||||||
Consolidated Condensed Balance Sheets | |||||||
(In thousands) | |||||||
September 30, 2017 | December 31, 2016 | ||||||
(Unaudited) | |||||||
Liabilities and equity | |||||||
Current liabilities: | |||||||
Trade accounts payable | $ | 9,673 | $ | 8,264 | |||
Payroll and related expenses | 14,992 | 11,978 | |||||
Other accrued expenses | 15,615 | 13,285 | |||||
Income taxes | 3,193 | 772 | |||||
Current portion of long-term debt | 2,965 | 2,623 | |||||
Total current liabilities | 46,438 | 36,922 | |||||
Long-term debt, less current portion | 30,017 | 33,529 | |||||
Deferred income taxes | 809 | 735 | |||||
Other liabilities | 13,793 | 13,054 | |||||
Accrued pension and other postretirement costs | 15,161 | 14,713 | |||||
Total liabilities | 106,218 | 98,953 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Common stock | 1,288 | 1,278 | |||||
Class B convertible common stock | 103 | 103 | |||||
Treasury stock | (8,765 | ) | (8,765 | ) | |||
Capital in excess of par value | 192,364 | 190,373 | |||||
Retained earnings | 38,600 | 28,731 | |||||
Accumulated other comprehensive loss | (34,278 | ) | (40,337 | ) | |||
Total Vishay Precision Group, Inc. stockholders' equity | 189,312 | 171,383 | |||||
Noncontrolling interests | 189 | 174 | |||||
Total equity | 189,501 | 171,557 | |||||
Total liabilities and equity | $ | 295,719 | $ | 270,510 |
VISHAY PRECISION GROUP, INC. | |||||||
Consolidated Condensed Statements of Cash Flows | |||||||
(Unaudited - In thousands) | |||||||
Nine fiscal months ended | |||||||
September 30, 2017 | October 1, 2016 | ||||||
Operating activities | |||||||
Net earnings | $ | 9,944 | $ | 3,428 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 7,977 | 8,416 | |||||
Gain on disposal of property and equipment | (193 | ) | (24 | ) | |||
Share-based compensation expense | 959 | 465 | |||||
Inventory write-offs for obsolescence | 1,662 | 1,410 | |||||
Deferred income taxes | 264 | (1,537 | ) | ||||
Other | (907 | ) | (862 | ) | |||
Net changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (7,030 | ) | 2,139 | ||||
Inventories, net | (3,280 | ) | (2,891 | ) | |||
Prepaid expenses and other current assets | (2,937 | ) | (1,848 | ) | |||
Trade accounts payable | 1,176 | 453 | |||||
Other current liabilities | 7,166 | (2,572 | ) | ||||
Net cash provided by operating activities | 14,801 | 6,577 | |||||
Investing activities | |||||||
Capital expenditures | (4,366 | ) | (6,266 | ) | |||
Proceeds from sale of property and equipment | 442 | 316 | |||||
Purchase of business | — | (10,727 | ) | ||||
Net cash used in investing activities | (3,924 | ) | (16,677 | ) | |||
Financing activities | |||||||
Principal payments on long-term debt and capital leases | (1,971 | ) | (1,599 | ) | |||
Proceeds from revolving facility | 27,000 | 17,000 | |||||
Payments on revolving facility | (27,000 | ) | (12,000 | ) | |||
Distributions to noncontrolling interests | (60 | ) | (12 | ) | |||
Payments of employee taxes on certain share-based arrangements | (303 | ) | (85 | ) | |||
Net cash (used in) provided by financing activities | (2,334 | ) | 3,304 | ||||
Effect of exchange rate changes on cash and cash equivalents | 2,896 | 288 | |||||
Increase (decrease) in cash and cash equivalents | 11,439 | (6,508 | ) | ||||
Cash and cash equivalents at beginning of period | 58,452 | 62,641 | |||||
Cash and cash equivalents at end of period | $ | 69,891 | $ | 56,133 | |||
Supplemental disclosure of non-cash financing transactions: | |||||||
Conversion of exchangeable notes to common stock | $ | (1,303 | ) | $ | — |
VISHAY PRECISION GROUP, INC. | |||||||||||||||
Reconciliation of Consolidated Adjusted Gross Profit Margin | |||||||||||||||
(Unaudited - In thousands) | |||||||||||||||
Fiscal quarter ended | Nine fiscal months ended | ||||||||||||||
September 30, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | ||||||||||||
Gross profit | $ | 24,267 | $ | 20,265 | $ | 71,543 | $ | 61,535 | |||||||
Gross profit margin | 38.6 | % | 37.2 | % | 38.7 | % | 36.4 | % | |||||||
Reconciling items affecting gross profit margin | |||||||||||||||
Acquisition purchase accounting adjustments | 42 | 46 | 42 | 537 | |||||||||||
Adjusted gross profit | $ | 24,309 | $ | 20,311 | $ | 71,585 | $ | 62,072 | |||||||
Adjusted gross profit margin | 38.7 | % | 37.3 | % | 38.7 | % | 36.7 | % |
VISHAY PRECISION GROUP, INC. | |||||||||||||||
Reconciliation of Consolidated Adjusted Operating Margin | |||||||||||||||
(Unaudited - In thousands) | |||||||||||||||
Fiscal quarter ended | Nine fiscal months ended | ||||||||||||||
September 30, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | ||||||||||||
Operating income | $ | 5,319 | $ | 2,639 | $ | 14,700 | $ | 5,317 | |||||||
Operating margin | 8.5 | % | 4.8 | % | 7.9 | % | 3.1 | % | |||||||
Reconciling items affecting operating margin | |||||||||||||||
Acquisition purchase accounting adjustments | 42 | 46 | 42 | 537 | |||||||||||
Acquisition costs | — | — | — | 414 | |||||||||||
Strategic alternative evaluation costs | — | 1,079 | — | 1,079 | |||||||||||
Restructuring costs | 423 | 709 | 1,292 | 2,395 | |||||||||||
Adjusted operating income | $ | 5,784 | $ | 4,473 | $ | 16,034 | $ | 9,742 | |||||||
Adjusted operating margin | 9.2 | % | 8.2 | % | 8.7 | % | 5.8 | % |
VISHAY PRECISION GROUP, INC. | |||||||||||||||
Reconciliation of Adjusted Earnings Per Share | |||||||||||||||
(Unaudited - In thousands, except per share data) | |||||||||||||||
Fiscal quarter ended | Nine fiscal months ended | ||||||||||||||
September 30, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | ||||||||||||
Net earnings attributable to VPG stockholders | $ | 4,255 | $ | 1,051 | $ | 9,869 | $ | 3,399 | |||||||
Reconciling items affecting operating margin | |||||||||||||||
Acquisition purchase accounting adjustments | 42 | 46 | 42 | 537 | |||||||||||
Acquisition costs | — | — | — | 414 | |||||||||||
Strategic alternative evaluation costs | — | 1,079 | — | 1,079 | |||||||||||
Restructuring costs | 423 | 709 | 1,292 | 2,395 | |||||||||||
Reconciling items affecting other income/expense | |||||||||||||||
Net proceeds from lease termination | (1,544 | ) | — | (1,544 | ) | — | |||||||||
Less reconciling items affecting income tax expense | |||||||||||||||
Tax effect of reconciling items and discrete tax items | (394 | ) | 27 | (339 | ) | 1,317 | |||||||||
Adjusted net earnings attributable to VPG stockholders | $ | 3,570 | $ | 2,858 | $ | 9,998 | $ | 6,507 | |||||||
Adjusted net earnings per diluted share | $ | 0.27 | $ | 0.21 | $ | 0.74 | $ | 0.49 | |||||||
Weighted average shares outstanding - diluted | 13,470 | 13,422 | 13,452 | 13,409 |