Vishay Precision Group, Inc. · NYSE:VPG
Vishay Precision — Q1 2024 Earnings Presentation
18 slides from Vishay Precision's earnings presentation, May 7, 2024
Slide 1: 1Q24 Earnings Call
1Q24 Earnings Call May 7, 2024 Focused on precision measurement and sensing technologies that make the world AND MORE PRODUCTIVE
Slide 2: Safe Harbor Statement
Safe Harbor Statement From time to time, information provided by us, including, but not limited to, statements in this presentation, or other statements made by or on our behalf, may contain or constitute "forward-looking" information within the meaning of the Private Securities Litigation Reform Ac
Slide 3: First Quarter 2024 Overview
First Quarter 2024 Overview • Achieved revenue at the low end of our guidance, reflecting mixed trends across our businesses and end-markets. • Orders of $75.3 million were flat sequentially and were impacted by continuing soft demand in some markets, mainly in industrial and semiconductor test equi
Slide 4: Moving to Larger Markets
Moving to Larger Markets VPG's focus has shifted to larger, faster growing markets including consumer, medical, and robotics that are being driven by a number of Legacy trends such as electrification, VPG is an established leader in Niche industrial automation and Markets legacy niche markets includ
Slide 5: Fiscal First Quarter 2024 Highlights
Fiscal First Quarter 2024 Highlights Consolidated Financial Highlights (in $ millions) • Revenue of $80.8 million, declined 9.1% from the prior year and 9.8% sequentially. • Adj. gross profit margin of 43.4% reached a record level and increased from 41.9% a year ago and from 43.0% in 4Q23. • Adj. ne
Slide 6: Sensors: First Quarter 2024 Highlights
Sensors: First Quarter 2024 Highlights (in $ millions) • Sensors 1Q24 revenues decreased 14.1% sequentially due to lower revenue in the Test & Measurement and AMS markets. • 1Q24 Sensors' gross profit margin of 36.5% which declined from 40.2% in 4Q23 primarily reflected lower volume, partially offse
Slide 7: Weighing Solutions: First Quarter 2024 Highlights
Weighing Solutions: First Quarter 2024 Highlights (in $ millions) • 1Q24 revenues decreased 5.2% sequentially and 9.5% from the prior year. • The sequential revenue decline was mainly attributable to lower OEM sales in our Other markets for precision agriculture and construction applications and low
Slide 8: Measurement Systems: First Quarter 2024 Highlights
Measurement Systems: First Quarter 2024 Highlights (in $ millions) • 1Q24 revenues of $22.5 million declined sequentially 9.3% and were 11.1% higher year-over-year. • Sequentially, the decrease in revenue was primarily due to the lower sales of DTS in the AMS and Transportation markets, partially of
Slide 9: Growth-Oriented Capital Allocation Priorities
Growth-Oriented Capital Allocation Priorities 01 02 03 Internal Investments Value-Creating M&A Stock Repurchases • Business development • Strategic, profitable niche • Repurchased $2.8 million of • Operational excellence and businesses with strong brands, common stock in 1Q24. Since manufacturing op
Slide 10: Financial Results
Financial Results Fiscal quarter ended March 30, April 1, December ($ in millions, except margin data and per share amounts) 2024 2023 31, 2023 Net revenues $ 80.8 $ 88.9 $ 89.5 Gross profit $ 35.1 $ 37.2 $ Organic 38.5 Gross Margin by Segment Gross profit margin 43.4 % 41.9 Growth % 43.0 % Adjusted
Slide 11: Selected Balance Sheet Items
Selected Balance Sheet Items ($ in Millions) March 30, 2024 April 1, 2023 December 31, 2023 Cash & cash equivalents $ 83.0 $ 93.3 $ 84.0 Total assets $ 466.2 $ 480.8 $ 471.6 Current portion of long-term debt $ 31.9 — — Long-term debt — $ 60.8 $ 31.9 Total liabilities $ 138.3 $ 165.9 $ 141.6 PERFORMA
Slide 12: Q&A
Q&A PERFORMANCE THROUGH PRECISION 12 12
Slide 13: Appendix
Appendix PERFORMANCE THROUGH PRECISION 13 13
Slide 14: First Quarter 2024 Market Trends
First Quarter 2024 Market Trends Consolidated Revenue by Market $ in millions 1Q24 1Q23 4Q23 Test & Measurement $ 15.7 $ 18.7 $ 19.5 Avionics, Military, Space 7.0 11.7 10.0 Transportation 14.4 12.5 14.1 Industrial Weighing 9.8 11.0 10.3 General Industrial 5.3 4.8 5.1 Steel 12.7 10.9 12.3 Other Marke
Slide 15: Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted EPS
Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted Earnings Per Share - Quarter Net Earnings Attributable to Gross Profit Operating Income VPG Stockholders Diluted Earnings Per share Three months ended March 30, 2024 April 1, 2023 March 30, 2024 April 1, 2023 March 3
Slide 16: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA Fiscal quarter ended In $ thousands, except margin data March 30, 2024 April 1, 2023 December 31, 2023 Net earnings attributable to VPG stockholders $ 5,891 $ 6,964 $ 4,227 Interest Expense 628 997 779 Income tax expense 2,318 2,220 4,403 Deprecia
Slide 17: Reconciliation of Adjusted Gross Profit by Segment
Reconciliation of Adjusted Gross Profit by Segment Fiscal quarter ended In $ thousands except margin data March 30, 2024 April 1, 2023 December 31, 2023 Sensors As reported - GAAP $ 10,732 $ 15,144 $ 13,761 As reported - GAAP Margins 36.5 % 41.2 % 40.2 % As Adjusted - Non GAAP $ 10,732 $ 15,144 $ 13
Slide 18: VPG Sustainability
VPG Sustainability • Launched formal corporate Environmental, Social and Governance ("ESG") program in 2022. • Completed a materiality assessment and internal scorecard and developed short and long-term objectives. Milestones to-date include: • Revised Board Committee charters to include ESG topics
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