8-K
Vishay Precision Group, Inc. (VPG)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
| Date of Report (Date of Earliest Event Reported): | February 19, 2020 |
|---|
Vishay Precision Group, Inc.
(Exact Name of Registrant as Specified in Charter)
| 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) |
(484) 321-5300
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| [ ] | 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 |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||
|---|---|---|---|---|---|
| Common stock, $0.10 par value | VPG | New York Stock Exchange | 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. ¨ |
Item 2.02 Results of Operations and Financial Conditions.
On February 19, 2020, Vishay Precision Group, Inc. issued a press release announcing results for the fourth quarter and fiscal year ended December 31, 2019. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and shall not be deemed to be “filed” for any purpose.
Item 9.01 Financial Statements and Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release, dated February 19, 2020. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Vishay Precision Group, Inc. | ||
|---|---|---|
| Date: February 19, 2020 | By: | /s/ William M. Clancy |
| Name: William M. Clancy | ||
| Title: Executive Vice President and Chief | ||
| Financial Officer |
Exhibit
Exhibit 99.1
For Immediate Release
VPG Reports Fiscal 2019 Fourth Quarter and Twelve Month Results
MALVERN, Pa. (February 19, 2020) - Vishay Precision Group, Inc. (NYSE: VPG), a leading producer of precision sensors and sensors-based systems, today announced its results for its fiscal 2019 fourth quarter and twelve fiscal months ended December 31, 2019.
Fourth Quarter Highlights:
| • | Revenues of $69.1 million declined 10.2% from a year ago |
|---|---|
| • | Earnings per diluted share of $0.28 per diluted share, compared to $0.25 reported a year ago |
| --- | --- |
| • | Adjusted diluted EPS* was $0.27 compared $0.54 reported a year ago |
| --- | --- |
| • | Operating margin was 2.5%, as compared to 9.2% reported a year ago |
| --- | --- |
| • | Adjusted operating margin* was 7.5%, as compared to 12.9% reported a year ago |
| --- | --- |
| • | Cash from operating activities was $6.3 million with adjusted free cash flow* of $4.1 million |
| --- | --- |
| • | Book to bill ratio was 1.15 as compared to 0.93 from a year ago. |
| --- | --- |
2019 Full Year Highlights:
| • | Revenues of $284.0 million declined 5.3% year-over-year |
|---|---|
| • | Earnings per diluted share of $1.63 compared to $1.75 reported last year |
| --- | --- |
| • | Adjusted diluted EPS* was $1.69 compared to prior year $2.05 |
| --- | --- |
| • | Operating margin was 10.1%, as compared to 12.4% reported last year |
| --- | --- |
| • | Adjusted operating margin* was 11.7% as compared to 13.5% reported last year |
| --- | --- |
| • | Cash from operating activities was $30.9 million with adjusted free cash flow* of $20.4 million |
| --- | --- |
Ziv Shoshani, Chief Executive Officer of VPG, commented, "We achieved sales at the high end of our expectations in fourth quarter, which capped a year that began with a record first quarter and then moderated through the year as trends in many of our end markets slowed. We recorded strong fourth-quarter orders of $79.8 million and a book-to-bill of 1.15, reflecting order strength in all three segments.
Our operating results for the fourth quarter of 2019, compared to the third quarter of 2019, were primarily impacted by inventory reductions and the negative impact of foreign exchange rates, which was partially offset by the higher sales volume. In addition, we recorded $1.7 million of purchase accounting adjustments and other costs related to the acquisition of Dynamic Systems Inc., or DSI. We also incurred a restructuring charge of $1.7 million primarily related to the closing and downsizing of facilities as part of manufacturing transitions of our force sensor products to facilities in India and China, which marked key milestones in our ongoing strategic initiatives to align and consolidate our manufacturing footprint."
Mr. Shoshani said: "We look forward to what lies ahead for VPG, as we reap the benefit of our growth and cost initiatives. The acquisition of DSI, which we completed in November of 2019, is already showing positive results and demonstrates the kind of value-creating opportunities we believe will add to the core strengths of VPG."
The Company's fourth fiscal quarter 2019 net earnings attributable to VPG stockholders were $3.9 million, or $0.28 per diluted share, compared to $3.4 million, or $0.25 per diluted share, in the fourth fiscal quarter of 2018. Foreign currency exchange rates for the fourth quarter of 2019 decreased net income by $0.9 million, or $0.07 per diluted share, relative to the prior year period. Included in the fourth fiscal quarter 2019 were tax benefits of approximately $3.4 million primarily related to the acquisition of DSI and other discrete tax items.
In the twelve fiscal months ended December 31, 2019, net earnings attributable to VPG stockholders were $22.2 million, or $1.63 per diluted share, compared to $23.6 million, or $1.75 per diluted share, in the twelve fiscal months ended December 31, 2018. Foreign currency exchange rates for the twelve fiscal months ended December 31, 2019 decreased net income by $1.3 million or $0.10 per diluted share relative to the prior year period. Included in the twelve fiscal months ended December 31, 2019 were tax
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benefits of approximately $3.4 million primarily related to the acquisition of DSI and other discrete tax items.
The fourth fiscal quarter 2019 adjusted net earnings* attributable to VPG stockholders were $3.7 million, or $0.27 per diluted share, compared to adjusted net earnings* attributable to VPG stockholders of $7.3 million, or $0.54 per diluted share, for the comparable prior year period.
In the twelve fiscal months ended December 31, 2019, adjusted net earnings* attributable to VPG stockholders were $23.0 million, or $1.69 per diluted share, compared to adjusted net earnings* attributable to VPG stockholders of $27.8 million, or $2.05 per diluted share, for the comparable prior year period.
Segments
Foil Technology Products segment revenues declined 19.3% to $29.6 million in the fourth fiscal quarter of 2019 from $36.7 million in the fourth fiscal quarter of 2018, and sequentially decreased 7.7% from $32.1 million in the third quarter of 2019. The year-over-year decline in revenues was primarily attributable to precision resistor products in all regions for distribution, OEM and EMS customers, primarily in the test and measurement and avionics, military and space markets. The sequential decline in revenue was attributable to precision resistor products in the test and measurement market.
Gross profit margin for the Foil Technology Products segment of 34.9% for the fourth fiscal quarter of 2019, was lower compared to 42.0% in the fourth fiscal quarter of 2018, and a decrease compared to 37.3% in the third fiscal quarter of 2019. The year-over-year decline in gross profit margin was primarily due to lower volume and the negative impact of foreign exchange rates. Sequentially, gross profit margin decreased primarily due to lower volume, product mix, and one-time inventory reductions.
Force Sensors segment revenues decreased 11.4% to $15.1 million in the fourth fiscal quarter of 2019, from $17.0 million in the fourth fiscal quarter of 2018. Sequentially, revenue decreased 7.1%, from $16.2 million in the third quarter of 2019. The year-over-year decrease in revenues was mainly attributable to distribution customers in the precision weighing market across all regions. The sequential decrease in revenue was mainly attributable to OEM customers in the precision weighing and force measurement markets in the Americas and Europe.
Gross profit margin for the Force Sensors segment was 24.2% for the fourth fiscal quarter of 2019, a decrease compared to 26.6% in the fourth fiscal quarter of 2018, and a decrease compared to 30.4% in the third fiscal quarter of 2019. The year-over-year decrease in gross profit margin was primarily due to lower volume and one-time inventory reductions, which was partially offset by higher export grants. Sequentially, gross profit margin declined due to lower volume and a reduction in inventory.
Weighing and Control Systems segment revenues grew by 5.2% to $24.4 million in the fourth fiscal quarter of 2019, up from $23.2 million in the fourth fiscal quarter of 2018. Sequentially, revenue increased 28.1% from $19.1 million in the third fiscal quarter of 2019. The increase in revenues year-over-year was primarily attributable to the addition of DSI in November 2019, which offset lower sales of steel, process weighing, and U.S.-based onboard weighing products. The sequential increase in revenues was primarily attributable to the addition of DSI, with an increase in our European process weighing product line along with an increase in the steel product line.
Gross profit margin for the Weighing and Control Systems segment was 41.6% (46.8% excluding the purchase accounting adjustments of $1.3 million related to the DSI acquisition) for the fourth fiscal quarter of 2019, compared to 46.8% from the fourth fiscal quarter of 2018, and compared to 46.6% from the third fiscal quarter of 2019. The year-over-year adjusted gross profit margin is similar due to higher volume attributable to the addition of DSI. The sequential increase in adjusted gross profit margin was primarily due to higher volume attributable to the DSI acquisition.
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Near-Term Outlook
“At constant fourth fiscal quarter 2019 exchange rates, we expect net revenues in the range of $63 million to $70 million for the first fiscal quarter of 2020, which reflect the portions of our customers' project-driven and longer-lead-time orders that are expected to ship in the quarter. This projected revenue range excludes any potential impact of the coronavirus outbreak on our business, which we are continuing to monitor closely,” concluded 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 Dynamic Systems, Inc. acquisition. We define "adjusted operating margin" as operating margin before purchase accounting adjustments, acquisition costs, restructuring costs, executive severance costs, and impairment of goodwill and indefinite-lived intangibles. We define "adjusted net earnings” and "adjusted net earnings per share" as net earnings attributable to VPG stockholders before purchase accounting adjustments, acquisition costs, restructuring costs, executive severance costs, impairment of goodwill and indefinite-lived intangibles, pension settlement, and associated tax effects. "Adjusted free cash flow" for the fourth fiscal quarter of 2019 is defined as the amount of cash generated from operating activities ($6.3 million), in excess of our capital expenditures ($2.6 million), net of proceeds, if any, from the sale of assets ($0.4 million). "Adjusted free cash flow" for the fiscal year of 2019 is defined as the amount of cash generated from operating activities ($30.9 million) in excess of our capital expenditures ($11.2 million), net of proceeds, if any, from the sale of assets ($0.6 million). Management believes that these non-GAAP measures are useful to investors because each presents what management views as our core operating performance 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 its Quarterly Reports on Forms 10-Q.
Conference Call and Webcast
A conference call will be held today (February 19) at 10:00 a.m. ET (9:00 a.m. CT). To access the conference call, interested parties may call 1-888-317-6003 or internationally 1-412-317-6061 and use passcode 4903504, or log on to the investor relations page of the VPG website at www.vpgsensors.com.
A replay will be available approximately one hour after the completion of the call by calling toll-free 1-877-344-7529 or internationally 1-412-317-0088 and by using the passcode 10137960. The replay will also be available on the investor relations page of the VPG website at www.vpgsensors.com for a limited time.
About VPG
Vishay Precision Group, Inc. (VPG) is an internationally recognized designer, manufacturer and marketer of: components based on its resistive foil technology; sensors; and sensor-based measurement systems specializing in the growing markets of stress, force, weight, pressure, and current measurements. VPG is a market leader of foil technology products, providing ongoing technology innovations in precision foil resistors and foil strain gages, which are the foundation of the company's force sensors products and its’ weighing and control systems. The product portfolio consists of a variety of well-established brand names recognized for precision and quality in the marketplace. To learn more, visit VPG at www.vpgsensors.com.
Forward-Looking Statements
From time to time, information provided by us, including but not limited to statements in this report, or other statements made by or on our behalf, may contain "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of
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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; difficulties or delays in identifying, negotiating and completing acquisitions and integrating acquired companies (including Dynamic Systems, Inc.); 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, health (including the COVID-19 "coronavirus") and military instability in the countries in which we operate; 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; significant developments from the recent and potential changes in tariffs and trade regulation; 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, 2018. 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 Cantor
Vishay Precision Group, Inc.
781-222-3516
steve.cantor@vpgsensors.com
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| VISHAY PRECISION GROUP, INC. | ||||||
|---|---|---|---|---|---|---|
| Consolidated Statements of Operations | ||||||
| (Unaudited - In thousands, except per share amounts) | ||||||
| Fiscal quarter ended | ||||||
| December 31, 2019 | December 31, 2018 | |||||
| Net revenues | $ | 69,142 | $ | 76,982 | ||
| Costs of products sold | 44,975 | 46,166 | ||||
| Gross profit | 24,167 | 30,816 | ||||
| Gross profit margin | 35.0 | % | 40.0 | % | ||
| Selling, general, and administrative expenses | 20,221 | 20,905 | ||||
| Acquisition costs | 443 | — | ||||
| Impairment of goodwill and indefinite-lived intangibles | — | 2,820 | ||||
| Restructuring costs | 1,746 | — | ||||
| Operating income | 1,757 | 7,091 | ||||
| Operating margin | 2.5 | % | 9.2 | % | ||
| Other income (expense): | ||||||
| Interest expense | (436 | ) | (405 | ) | ||
| Other | (316 | ) | (403 | ) | ||
| Other (expense) income - net | (752 | ) | (808 | ) | ||
| Income before taxes | 1,005 | 6,283 | ||||
| Income tax (benefit) expense | (2,854 | ) | 2,846 | |||
| Net earnings | 3,859 | 3,437 | ||||
| Less: net earnings (loss) attributable to noncontrolling interests | (12 | ) | 19 | |||
| Net earnings attributable to VPG stockholders | $ | 3,871 | $ | 3,418 | ||
| Basic earnings per share attributable to VPG stockholders | $ | 0.29 | $ | 0.25 | ||
| Diluted earnings per share attributable to VPG stockholders | $ | 0.28 | $ | 0.25 | ||
| Weighted average shares outstanding - basic | 13,523 | 13,474 | ||||
| Weighted average shares outstanding - diluted | 13,623 | 13,595 |
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| VISHAY PRECISION GROUP, INC. | ||||||
|---|---|---|---|---|---|---|
| Consolidated Statements of Operations | ||||||
| (Unaudited - In thousands, except per share amounts) | ||||||
| Years ended | ||||||
| December 31, 2019 | December 31, 2018 | |||||
| Net revenues | $ | 283,958 | $ | 299,794 | ||
| Costs of products sold | 172,341 | 178,527 | ||||
| Gross profit | 111,617 | 121,267 | ||||
| Gross profit margin | 39.3 | % | 40.5 | % | ||
| Selling, general, and administrative expenses | 79,622 | 80,935 | ||||
| Acquisition costs | 443 | — | ||||
| Impairment of goodwill and indefinite-lived intangibles | — | 2,820 | ||||
| Executive severance costs | 611 | — | ||||
| Restructuring costs | 2,293 | 289 | ||||
| Operating income | 28,648 | 37,223 | ||||
| Operating margin | 10.1 | % | 12.4 | % | ||
| Other income (expense): | ||||||
| Interest expense | (1,507 | ) | (1,738 | ) | ||
| Other | (701 | ) | (1,496 | ) | ||
| Other (expense) income - net | (2,208 | ) | (3,234 | ) | ||
| Income before taxes | 26,440 | 33,989 | ||||
| Income tax expense | 4,145 | 10,344 | ||||
| Net earnings | 22,295 | 23,645 | ||||
| Less: net earnings (loss) attributable to noncontrolling interests | 107 | (1 | ) | |||
| Net earnings attributable to VPG stockholders | $ | 22,188 | $ | 23,646 | ||
| Basic earnings per share attributable to VPG stockholders | $ | 1.64 | $ | 1.76 | ||
| Diluted earnings per share attributable to VPG stockholders | $ | 1.63 | $ | 1.75 | ||
| Weighted average shares outstanding - basic | 13,515 | 13,439 | ||||
| Weighted average shares outstanding - diluted | 13,597 | 13,535 |
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| VISHAY PRECISION GROUP, INC. | ||||||
|---|---|---|---|---|---|---|
| Consolidated Balance Sheets | ||||||
| (In thousands, except per share amounts) | ||||||
| December 31, 2019 | December 31, 2018 | |||||
| (Unaudited) | ||||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 86,910 | $ | 90,159 | ||
| Accounts receivable, net of allowances for doubtful accounts | 41,704 | 53,156 | ||||
| Inventories: | ||||||
| Raw materials | 21,701 | 18,052 | ||||
| Work in process | 23,128 | 22,007 | ||||
| Finished goods | 22,066 | 22,182 | ||||
| Inventories, net | 66,895 | 62,241 | ||||
| Prepaid expenses and other current assets | 16,859 | 9,314 | ||||
| Total current assets | 212,368 | 214,870 | ||||
| Property and equipment, at cost: | ||||||
| Land | 4,243 | 3,390 | ||||
| Buildings and improvements | 52,708 | 51,055 | ||||
| Machinery and equipment | 111,492 | 105,840 | ||||
| Software | 9,384 | 8,532 | ||||
| Construction in progress | 2,485 | 2,157 | ||||
| Accumulated depreciation | (119,042 | ) | (111,555 | ) | ||
| Property and equipment, net | 61,270 | 59,419 | ||||
| Goodwill | 35,018 | 16,141 | ||||
| Intangible assets, net | 34,198 | 17,656 | ||||
| Other assets | 27,366 | 18,297 | ||||
| Total assets | $ | 370,220 | $ | 326,383 |
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| VISHAY PRECISION GROUP, INC. | ||||||
|---|---|---|---|---|---|---|
| Consolidated Balance Sheets | ||||||
| (In thousands, except per share amounts) | ||||||
| December 31, 2019 | December 31, 2018 | |||||
| (Unaudited) | ||||||
| Liabilities and equity | ||||||
| Current liabilities: | ||||||
| Trade accounts payable | $ | 8,676 | $ | 11,461 | ||
| Payroll and related expenses | 16,312 | 17,757 | ||||
| Other accrued expenses | 18,953 | 17,031 | ||||
| Income taxes | 261 | 3,879 | ||||
| Current portion of long-term debt | 44,516 | 4,654 | ||||
| Total current liabilities | 88,718 | 54,782 | ||||
| Long-term debt, less current portion | 17 | 22,421 | ||||
| Deferred income taxes | 3,478 | 2,200 | ||||
| Other liabilities | 20,586 | 13,545 | ||||
| Accrued pension and other postretirement costs | 15,669 | 14,982 | ||||
| Total liabilities | 128,468 | 107,930 | ||||
| Commitments and contingencies | ||||||
| Equity: | ||||||
| Common stock | 1,312 | 1,307 | ||||
| Class B convertible common stock | 103 | 103 | ||||
| Treasury stock | (8,765 | ) | (8,765 | ) | ||
| Capital in excess of par value | 197,125 | 196,666 | ||||
| Retained earnings | 89,288 | 66,569 | ||||
| Accumulated other comprehensive loss | (37,703 | ) | (37,465 | ) | ||
| Total Vishay Precision Group, Inc. stockholders' equity | 241,360 | 218,415 | ||||
| Noncontrolling interests | 392 | 38 | ||||
| Total equity | 241,752 | 218,453 | ||||
| Total liabilities and equity | $ | 370,220 | $ | 326,383 |
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| VISHAY PRECISION GROUP, INC. | |||||
|---|---|---|---|---|---|
| Consolidated Statements of Cash Flows | |||||
| (Unaudited - In thousands) | |||||
| December 31, 2018 | |||||
| Operating activities | |||||
| Net earnings | 22,295 | $ | 23,645 | ||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||
| Impairment of goodwill and indefinite-lived intangibles | 2,820 | ||||
| Depreciation and amortization | 10,631 | ||||
| (Gain) loss on disposal of property and equipment | (120 | ) | |||
| Share-based compensation expense | 1,799 | ||||
| Inventory write-offs for obsolescence | 1,876 | ||||
| Deferred income taxes | ) | 1,011 | |||
| Other | ) | 819 | |||
| Net changes in operating assets and liabilities | |||||
| Accounts receivable | (7,757 | ) | |||
| Inventories | ) | (5,095 | ) | ||
| Prepaid expenses and other current assets | ) | 588 | |||
| Trade accounts payable | ) | (819 | ) | ||
| Other current liabilities | ) | 5,981 | |||
| Net cash provided by operating activities | 35,379 | ||||
| Investing activities | |||||
| Capital expenditures | ) | (14,521 | ) | ||
| Proceeds from sale of property and equipment | 132 | ||||
| Purchase of business | ) | — | |||
| Net cash used in investing activities | ) | (14,389 | ) | ||
| Financing activities | |||||
| Principal payments on long-term debt | ) | (5,603 | ) | ||
| Proceeds from revolving facility | 22,000 | ||||
| Payments on revolving facility | (19,000 | ) | |||
| Distributions to noncontrolling interests | ) | (109 | ) | ||
| Payments of employee taxes on certain share-based arrangements | ) | (801 | ) | ||
| Net cash provided by (used in) financing activities | (3,513 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | (1,610 | ) | |||
| (Decrease) increase in cash and cash equivalents | ) | 15,867 | |||
| Cash and cash equivalents at beginning of year | 74,292 | ||||
| Cash and cash equivalents at end of year | 86,910 | $ | 90,159 | ||
| Supplemental disclosure of investing transactions: | |||||
| Capital expenditures purchased | (10,529 | ) | $ | (13,239 | ) |
| Supplemental disclosure of non-cash financing transactions: | |||||
| Conversion of exchangeable notes to common stock | — | $ | (2,794 | ) | |
| Capital expenditures accrued but not yet paid as of December 31, 2019 were 1,183 |
All values are in US Dollars.
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| VISHAY PRECISION GROUP, INC. | ||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reconciliation of Consolidated Adjusted Gross Profit, Operating Income, Net Earnings Attributable to VPG Stockholders and Diluted Earnings Per Share | ||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited - In thousands except per share data) | ||||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | Operating Income | Net Earnings Attributable to VPG Stockholders | Diluted Earnings Per share | |||||||||||||||||||||||||||||||||||||||||||
| Fiscal Year Ended December 31, | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
| As reported - GAAP | $ | 111,617 | $ | 121,267 | $ | 28,648 | $ | 37,223 | $ | 22,188 | $ | 23,646 | $ | 1.63 | $ | 1.75 | ||||||||||||||||||||||||||||||
| Acquisition purchase accounting adjustments | 1,254 | — | 1,254 | — | 1,254 | — | 0.09 | — | ||||||||||||||||||||||||||||||||||||||
| Acquisition costs | 443 | — | 443 | — | 0.03 | — | ||||||||||||||||||||||||||||||||||||||||
| Executive Severance costs | 611 | — | 611 | — | 0.04 | — | ||||||||||||||||||||||||||||||||||||||||
| Impairment of goodwill and indefinite-lived intangibles | — | 2,820 | — | 2,820 | — | 0.21 | ||||||||||||||||||||||||||||||||||||||||
| Restructuring costs | 2,293 | 289 | 2,293 | 289 | 0.17 | 0.02 | ||||||||||||||||||||||||||||||||||||||||
| UK pension settlement | — | 673 | — | 0.05 | ||||||||||||||||||||||||||||||||||||||||||
| Less: Tax effect of reconciling items and discrete tax items | 3,743 | (333 | ) | 0.27 | (0.02 | ) | ||||||||||||||||||||||||||||||||||||||||
| As Adjusted - Non GAAP | $ | 112,871 | $ | 121,267 | $ | 33,249 | $ | 40,332 | $ | 23,046 | $ | 27,761 | $ | 1.69 | $ | 2.05 | ||||||||||||||||||||||||||||||
| As Adjusted - Non GAAP Margins | 39.7 | % | 40.5 | % | 11.7 | % | 13.5 | % | Gross Profit | Operating Income | Net Earnings Attributable to VPG Stockholders | Diluted Earnings Per share | ||||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||||||||
| Fiscal Quarter Ended December 31, | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
| As reported - GAAP | $ | 24,167 | $ | 30,816 | $ | 1,757 | $ | 7,091 | $ | 3,871 | $ | 3,418 | $ | 0.28 | $ | 0.25 | ||||||||||||||||||||||||||||||
| Acquisition purchase accounting adjustments | 1,254 | — | 1,254 | — | 1,254 | — | 0.09 | — | ||||||||||||||||||||||||||||||||||||||
| Acquisition costs | 443 | — | 443 | — | 0.03 | — | ||||||||||||||||||||||||||||||||||||||||
| Impairment of goodwill and indefinite-lived intangibles | — | 2,820 | — | 2,820 | — | 0.21 | ||||||||||||||||||||||||||||||||||||||||
| Restructuring costs | 1,746 | — | 1,746 | — | 0.13 | — | ||||||||||||||||||||||||||||||||||||||||
| UK pension settlement | 673 | — | 0.05 | |||||||||||||||||||||||||||||||||||||||||||
| Less: Tax effect of reconciling items and discrete tax items | 3,663 | (377 | ) | 0.26 | (0.03 | ) | ||||||||||||||||||||||||||||||||||||||||
| As Adjusted - Non GAAP | $ | 25,421 | $ | 30,816 | $ | 5,200 | $ | 9,911 | $ | 3,651 | $ | 7,288 | $ | 0.27 | $ | 0.54 | ||||||||||||||||||||||||||||||
| As Adjusted - Non GAAP Margins | 36.8 | % | 40.0 | % | 7.5 | % | 12.9 | % |
10