Vishay Precision Group, Inc. · NYSE:VPG
Vishay Precision — Q2 2023 Earnings Presentation
18 slides from Vishay Precision's earnings presentation, Aug 8, 2023
Slide 1: Second Fiscal Quarter 2023 Earnings
Vishay Precision Group Second Fiscal Quarter 2023 Earnings August 8, 2023 PERFORMANCE THROUGH PRECISION 1
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: Second Quarter 2023 Overview
Second Quarter 2023 Overview • VPG achieved another solid quarter of performance. • Grew revenue year-over-year and sequentially. • Increased adj. gross margin, adj. operating margin, and adj. diluted EPS sequentially. • Grew adj. EBITDA and free cash flow from 1Q23 • Solid 3Q23 outlook supported by
Slide 4: Fiscal Second Quarter 2023 Highlights
Fiscal Second Quarter 2023 Highlights Consolidated Financial Highlights (in $ millions) • Revenue of $90.8 million, grew 2.5% from the prior year and grew 2.2% sequentially. • Adj. gross margin of 42.7% declined from 42.9% a year ago and increased from 41.9% in 1Q23. • Adj. net earnings per diluted
Slide 5: Sensors: Second Quarter 2023 Highlights
Sensors: Second Quarter 2023 Highlights (in $ millions) • Sensors 2Q23 revenues decreased 1.3% sequentially, as lower sales in Avionics, Military and Space (AMS) were partially offset by higher sales of advanced sensors in consumer markets. • Sequentially, 2Q23 Sensors' adj. gross ($ in millions, ex
Slide 6: Weighing Solutions: Second Quarter 2023 Highlights
Weighing Solutions: Second Quarter 2023 Highlights (in $ millions) • 2Q23 revenues decreased 1.9% sequentially and increased 9.8% from the prior year. • Sequentially, the decline in revenue reflected modestly lower sales for precision ag and construction applications partially offset by growth in sa
Slide 7: Measurement Systems: Second Quarter 2023 Highlights
Measurement Systems: Second Quarter 2023 Highlights (in $ millions) • 2Q23 revenues of $23.3 million increased 17.1% year-over-year and 14.8% sequentially due to higher sales to the Steel market. • The redesign of a DTS product to improve the supply of a key component is on track and we expect the n
Slide 8: Growth Focused Capital Allocation Strategy
VPG’s Business Model, Cash Generation, and Balance Sheet Support Growth Focused Capital Allocation Strategy Capital Allocation Priorities: 1 Internal Investments • Manufacturing capacity expansion and optimization • New product and market development. • Strategic, profitable niche businesses with st
Slide 9: Financial Results
Financial Results Fiscal quarter ended ($ in millions, except margin data and per share amounts) July 1, 2023 July 2, 2022 April 1, 2023 Net revenues $ 90.8 $ 88.6 $ 88.9 Gross profit $ 38.7 $ 37.3 $ 37.2 Gross profit margin Organic 42.6 % 42.1 % Acquisitions 41.9 % Growth Adjusted gross profit $ 38
Slide 10: Selected Balance Sheet Items
Selected Balance Sheet Items ($ in Millions) July 1, 2023 July 2, 2022 April 1, 2023 Cash & cash equivalents $ 98.5 $ 79.4 $ 93.3 Total assets $ 487.0 $ 458.4 $ 480.8 Total long-term debt $ 60.8 $ 60.8 $ 60.8 Total liabilities $ 165.3 $ 173.0 $ 165.9 10 PERFORMANCE THROUGH PRECISION
Slide 11: Q&A
Q&A PERFORMANCE THROUGH PRECISION 11 11
Slide 12: Appendix
Appendix PERFORMANCE THROUGH PRECISION 12 12
Slide 13: Second Quarter 2023 Market Trends
Second Quarter 2023 Market Trends Consolidated Revenue by Market $ in millions 2Q23 2Q22 1Q23 Test & Measurement $ 18.7 $ 21.5 $ 18.7 Avionics, Military, Space 8.3 6.9 11.7 Transportation 13.0 13.2 12.5 Industrial Weighing 12.0 12.9 11.0 General Industrial 5.4 5.3 4.8 Steel 14.9 10.8 10.9 Other Mark
Slide 14: Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and EPS - Quarter
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 July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 July 1, 2023
Slide 15: Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and EPS - YTD
Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted Earnings Per Share - YTD Net Earnings Attributable to Gross Profit Operating Income VPG Stockholders Diluted Earnings Per share Six fiscal months ended 7/1/2023 7/2/2022 7/1/2023 7/2/2022 7/1/2023 7/2/2022 7/1/2023 7
Slide 16: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA Fiscal quarter ended In $ thousands, except margin data July 1, 2023 July 2, 2022 April 1, 2023 Net earnings attributable to VPG stockholders $ 8,236 $ 10,755 $ 6,964 Interest Expense 1,079 428 997 Income tax expense 3,384 2,587 2,220 Depreciation
Slide 17: Reconciliation of Adjusted Gross Profit by Segment
Reconciliation of Adjusted Gross Profit by Segment Fiscal quarter ended In $ thousands except margin data July 1, 2023 July 2, 2022 April 1, 2023 Sensors As reported - GAAP $ 14,549 $ 17,831 $ 15,144 As reported - GAAP Margins 40.1 % 44.3 % 41.2 % As Adjusted - Non GAAP $ 14,549 $ 17,831 $ 15,144 As
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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