Date of Report (Date of Earliest Event Reported): | August 7, 2018 |
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 August 7, 2018. |
Vishay Precision Group, Inc. | |||
Date: August 7, 2018 | 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 $74.2 million, up 19% year-over-year |
• | Gross margin was 42.3% for the quarter as compared to 39.7% for the prior year period |
• | Operating income increased by 93% to $11.3 million as compared to $5.9 million in the prior year period |
• | Operating margin for the quarter was 15.2%, compared to 9.4% for the prior year period |
• | Earnings increased 111% to $0.57 per diluted share, compared to $0.27 reported last year |
• | Adjusted diluted EPS* increased 97% to $0.57, compared to prior year $0.29 |
• | Book-to-bill remained strong at 1.13, reflecting healthy, stable end-markets |
VISHAY PRECISION GROUP, INC. | |||||||
Consolidated Condensed Statements of Operations | |||||||
(Unaudited - In thousands, except per share amounts) | |||||||
Fiscal quarter ended | |||||||
June 30, 2018 | July 1, 2017 | ||||||
Net revenues | $ | 74,231 | $ | 62,319 | |||
Costs of products sold | 42,865 | 37,560 | |||||
Gross profit | 31,366 | 24,759 | |||||
Gross profit margin | 42.3 | % | 39.7 | % | |||
Selling, general, and administrative expenses | 19,990 | 18,591 | |||||
Restructuring costs | 61 | 315 | |||||
Operating income | 11,315 | 5,853 | |||||
Operating margin | 15.2 | % | 9.4 | % | |||
Other income (expense): | |||||||
Interest expense | (478 | ) | (468 | ) | |||
Other | (272 | ) | (571 | ) | |||
Other income (expense) - net | (750 | ) | (1,039 | ) | |||
Income before taxes | 10,565 | 4,814 | |||||
Income tax expense | 2,882 | 1,198 | |||||
Net earnings | 7,683 | 3,616 | |||||
Less: net earnings attributable to noncontrolling interests | (10 | ) | (3 | ) | |||
Net earnings attributable to VPG stockholders | $ | 7,693 | $ | 3,619 | |||
Basic earnings per share attributable to VPG stockholders | $ | 0.57 | $ | 0.27 | |||
Diluted earnings per share attributable to VPG stockholders | $ | 0.57 | $ | 0.27 | |||
Weighted average shares outstanding - basic | 13,464 | 13,257 | |||||
Weighted average shares outstanding - diluted | 13,513 | 13,446 |
VISHAY PRECISION GROUP, INC. | |||||||
Consolidated Condensed Statements of Operations | |||||||
(Unaudited - In thousands, except per share amounts) | |||||||
Six fiscal months ended | |||||||
June 30, 2018 | July 1, 2017 | ||||||
Net revenues | $ | 147,322 | $ | 122,106 | |||
Costs of products sold | 87,451 | 74,830 | |||||
Gross profit | 59,871 | 47,276 | |||||
Gross profit margin | 40.6 | % | 38.7 | % | |||
Selling, general, and administrative expenses | 40,309 | 36,609 | |||||
Restructuring costs | 61 | 869 | |||||
Operating income | 19,501 | 9,798 | |||||
Operating margin | 13.2 | % | 8.0 | % | |||
Other income (expense): | |||||||
Interest expense | (920 | ) | (920 | ) | |||
Other | (921 | ) | (1,100 | ) | |||
Other income (expense) - net | (1,841 | ) | (2,020 | ) | |||
Income before taxes | 17,660 | 7,778 | |||||
Income tax expense | 5,019 | 2,159 | |||||
Net earnings | 12,641 | 5,619 | |||||
Less: net (earnings) loss attributable to noncontrolling interests | (40 | ) | 5 | ||||
Net earnings attributable to VPG stockholders | $ | 12,681 | $ | 5,614 | |||
Basic earnings per share attributable to VPG stockholders | $ | 0.95 | $ | 0.42 | |||
Diluted earnings per share attributable to VPG stockholders | $ | 0.94 | $ | 0.42 | |||
Weighted average shares outstanding - basic | 13,409 | 13,233 | |||||
Weighted average shares outstanding - diluted | 13,511 | 13,442 |
VISHAY PRECISION GROUP, INC. | |||||||
Consolidated Condensed Balance Sheets | |||||||
(In thousands) | |||||||
June 30, 2018 | December 31, 2017 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 74,713 | $ | 74,292 | |||
Accounts receivable, net | 52,103 | 46,789 | |||||
Inventories: | |||||||
Raw materials | 19,502 | 16,601 | |||||
Work in process | 23,936 | 23,160 | |||||
Finished goods | 21,984 | 20,174 | |||||
Inventories, net | 65,422 | 59,935 | |||||
Prepaid expenses and other current assets | 11,660 | 10,299 | |||||
Total current assets | 203,898 | 191,315 | |||||
Property and equipment, at cost: | |||||||
Land | 3,412 | 3,434 | |||||
Buildings and improvements | 50,376 | 50,276 | |||||
Machinery and equipment | 97,772 | 95,158 | |||||
Software | 8,160 | 7,955 | |||||
Construction in progress | 2,172 | 2,252 | |||||
Accumulated depreciation | (107,399 | ) | (103,401 | ) | |||
Property and equipment, net | 54,493 | 55,674 | |||||
Goodwill | 18,799 | 19,181 | |||||
Intangible assets, net | 18,966 | 20,475 | |||||
Other assets | 18,743 | 19,906 | |||||
Total assets | $ | 314,899 | $ | 306,551 |
VISHAY PRECISION GROUP, INC. | |||||||
Consolidated Condensed Balance Sheets | |||||||
(In thousands) | |||||||
June 30, 2018 | December 31, 2017 | ||||||
(Unaudited) | |||||||
Liabilities and equity | |||||||
Current liabilities: | |||||||
Trade accounts payable | $ | 11,049 | $ | 13,678 | |||
Payroll and related expenses | 14,932 | 15,892 | |||||
Other accrued expenses | 16,758 | 15,952 | |||||
Income taxes | 2,888 | 2,515 | |||||
Current portion of long-term debt | 4,088 | 3,878 | |||||
Total current liabilities | 49,715 | 51,915 | |||||
Long-term debt, less current portion | 26,690 | 28,477 | |||||
Deferred income taxes | 2,300 | 2,300 | |||||
Other liabilities | 13,781 | 14,131 | |||||
Accrued pension and other postretirement costs | 16,115 | 16,424 | |||||
Total liabilities | 108,601 | 113,247 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Common stock | 1,307 | 1,288 | |||||
Class B convertible common stock | 103 | 103 | |||||
Treasury stock | (8,765 | ) | (8,765 | ) | |||
Capital in excess of par value | 195,668 | 192,904 | |||||
Retained earnings | 55,604 | 43,076 | |||||
Accumulated other comprehensive loss | (37,598 | ) | (35,450 | ) | |||
Total Vishay Precision Group, Inc. stockholders' equity | 206,319 | 193,156 | |||||
Noncontrolling interests | (21 | ) | 148 | ||||
Total equity | 206,298 | 193,304 | |||||
Total liabilities and equity | $ | 314,899 | $ | 306,551 |
VISHAY PRECISION GROUP, INC. | |||||||
Consolidated Condensed Statements of Cash Flows | |||||||
(Unaudited - In thousands) | |||||||
Six fiscal months ended | |||||||
June 30, 2018 | July 1, 2017 | ||||||
Operating activities | |||||||
Net earnings | $ | 12,641 | $ | 5,619 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 5,332 | 5,318 | |||||
Gain on disposal of property and equipment | (83 | ) | (141 | ) | |||
Share-based compensation expense | 801 | 492 | |||||
Inventory write-offs for obsolescence | 1,158 | 982 | |||||
Deferred income taxes | 1,086 | (104 | ) | ||||
Other | 455 | (445 | ) | ||||
Net changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (6,141 | ) | (6,928 | ) | |||
Inventories, net | (7,304 | ) | (761 | ) | |||
Prepaid expenses and other current assets | (1,724 | ) | (1,397 | ) | |||
Trade accounts payable | (390 | ) | 1,020 | ||||
Other current liabilities | 1,536 | 3,676 | |||||
Net cash provided by operating activities | 7,367 | 7,331 | |||||
Investing activities | |||||||
Capital expenditures | (6,134 | ) | (3,146 | ) | |||
Proceeds from sale of property and equipment | 106 | 326 | |||||
Net cash used in investing activities | (6,028 | ) | (2,820 | ) | |||
Financing activities | |||||||
Principal payments on long-term debt and capital leases | (3,847 | ) | (1,314 | ) | |||
Proceeds from revolving facility | 11,000 | 16,000 | |||||
Payments on revolving facility | (6,000 | ) | (16,000 | ) | |||
Distributions to noncontrolling interests | (129 | ) | (46 | ) | |||
Payments of employee taxes on certain share-based arrangements | (801 | ) | (303 | ) | |||
Net cash provided by (used in) financing activities | 223 | (1,663 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (1,141 | ) | 1,858 | ||||
Increase in cash and cash equivalents | 421 | 4,706 | |||||
Cash and cash equivalents at beginning of period | 74,292 | 58,452 | |||||
Cash and cash equivalents at end of period | $ | 74,713 | $ | 63,158 | |||
Supplemental disclosure of non-cash investing transactions: | |||||||
Capital expenditures purchased | $ | (3,988 | ) | $ | (3,146 | ) | |
Supplemental disclosure of non-cash financing transactions: | |||||||
Conversion of exchangeable notes to common stock | $ | (2,794 | ) | $ | (1,303 | ) |
VISHAY PRECISION GROUP, INC. | |||||||||||||
Reconciliation of Consolidated Adjusted Gross Profit Margin | |||||||||||||
(Unaudited - In thousands) | |||||||||||||
Fiscal quarter ended | Six fiscal months ended | ||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | ||||||||||
Gross profit | $ | 31,366 | $ | 24,759 | $ | 59,871 | $ | 47,276 | |||||
Gross profit margin | 42.3 | % | 39.7 | % | 40.6 | % | 38.7 | % | |||||
Adjusted gross profit | $ | 31,366 | $ | 24,759 | $ | 59,871 | $ | 47,276 | |||||
Adjusted gross profit margin | 42.3 | % | 39.7 | % | 40.6 | % | 38.7 | % |
VISHAY PRECISION GROUP, INC. | |||||||||||||||
Reconciliation of Consolidated Adjusted Operating Margin | |||||||||||||||
(Unaudited - In thousands) | |||||||||||||||
Fiscal quarter ended | Six fiscal months ended | ||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | ||||||||||||
Operating income | $ | 11,315 | $ | 5,853 | $ | 19,501 | $ | 9,798 | |||||||
Operating margin | 15.2 | % | 9.4 | % | 13.2 | % | 8.0 | % | |||||||
Reconciling items affecting operating margin | |||||||||||||||
Restructuring costs | 61 | 315 | 61 | 869 | |||||||||||
Adjusted operating income | $ | 11,376 | $ | 6,168 | $ | 19,562 | $ | 10,667 | |||||||
Adjusted operating margin | 15.3 | % | 9.9 | % | 13.3 | % | 8.7 | % |
VISHAY PRECISION GROUP, INC. | |||||||||||||||
Reconciliation of Adjusted Earnings Per Share | |||||||||||||||
(Unaudited - In thousands, except per share data) | |||||||||||||||
Fiscal quarter ended | Six fiscal months ended | ||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | ||||||||||||
Net earnings attributable to VPG stockholders | $ | 7,693 | $ | 3,619 | $ | 12,681 | $ | 5,614 | |||||||
Reconciling items affecting operating margin | |||||||||||||||
Restructuring costs | 61 | 315 | 61 | 869 | |||||||||||
Less reconciling items affecting income tax expense | |||||||||||||||
Tax effect of reconciling items | 9 | 13 | 9 | 56 | |||||||||||
Adjusted net earnings attributable to VPG stockholders | $ | 7,745 | $ | 3,921 | $ | 12,733 | $ | 6,427 | |||||||
Adjusted net earnings per diluted share | $ | 0.57 | $ | 0.29 | $ | 0.94 | $ | 0.48 | |||||||
Weighted average shares outstanding - diluted | 13,513 | 13,446 | 13,511 | 13,442 |