Slide 1: VPG 2Q24 Earnings Call
VPG 2Q24 Earnings Call August 6, 2024 Focused on precision measurement and sensing technologies that make the world SAFER, SMARTER, 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: Second Quarter 2024 Overview
Second Quarter 2024 Overview • Sales trends reflected a mixed market environment. • Orders grew sequentially in Measurement Systems, but declined in Sensors and Weighing Solutions. • We effectively adjusted operations to demand levels, which was reflected in our solid gross margin, and implemented e
Slide 4: Fiscal Second Quarter 2024 Highlights
Fiscal Second Quarter 2024 Highlights Consolidated Financial Highlights (in $ millions) • Revenue of $77.4 million, declined 14.8% from the prior year and 4.2% sequentially. • Adj. gross margin of 41.9% declined from 42.7% a year ago and 43.4% in 1Q24. The sequentially lower adj. gross margin primar
Slide 5: Sensors: Second Quarter 2024 Highlights
Sensors: Second Quarter 2024 Highlights (in $ millions) • Sensors 2Q24 revenues decreased 1.9% sequentially, as lower sales of precision resistors in the Test and Measurement market were partially offset by higher sales of advanced sensors in consumer markets. • Sequentially, 2Q24 Sensors' gross mar
Slide 6: Weighing Solutions: Second Quarter 2024 Highlights
Weighing Solutions: Second Quarter 2024 Highlights (in $ millions) • 2Q24 revenues decreased 4.8% sequentially and 12.2% from the prior year. • Sequentially, the decline in revenue reflected primarily lower sales of process weighing products. • Gross margin of 37.6% declined from 39.1% due to lower
Slide 7: Measurement Systems: Second Quarter 2024 Highlights
Measurement Systems: Second Quarter 2024 Highlights (in $ millions) • 2Q24 revenues of $21.0 million declined 6.6% sequentially primarily due to lower sales in the AMS and Transportation markets. Sales to the Steel market were flat sequentially. • 2Q24 gross margin of 52.4% declined sequentially fro
Slide 8: Growth-Oriented Capital Allocation Priorities
Growth-Oriented Capital Allocation Priorities Internal Investments Value-Creating M&A Stock Repurchases • Business development. • Strategic, profitable niche • Repurchased 3.1 million of businesses with strong stock in 2Q24. Since August • Operational excellence and brands, differentiated 2022, VPG
Slide 9: Financial Results
Financial Results Fiscal quarter ended ($ in millions, except margin data and per share amounts) June 29, 2024 July 1, 2023 March 30, 2024 Net revenues $ 77.4 $ 90.8 $ 80.8 Gross profit $ 32.4 $ 38.7 $ 35.1 Gross profit margin Organic 41.9 % 42.6 % 43.4 % Growth Acquisitions Adjusted gross profit $
Slide 10: Selected Balance Sheet Items
Selected Balance Sheet Items ($ in Millions) June 29, 2024 July 1, 2023 March 30, 2024 Cash & cash equivalents $ 84.1 $ 98.5 $ 83.0 Total assets 462.8 487.0 466.2 Total long-term debt 31.9 60.8 31.9 Total liabilities $ 135.8 $ 165.3 $ 138.3 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 2024 Market Trends
Second Quarter 2024 Market Trends Consolidated Revenue by Market $ in millions 2Q24 2Q23 1Q24 Test & Measurement $ 14.0 $ 18.7 $ 15.7 Avionics, Military, Space 6.2 8.3 7.0 Transportation 11.8 13.0 14.4 Industrial Weighing 9.6 12.0 9.8 General Industrial 4.8 5.4 5.3 Steel 13.0 14.9 12.7 Other Markets
Slide 14: Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted 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 June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 June 29, 20
Slide 15: Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted EPS - YTD
Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted Earnings Per Share - YTD Net Earnings Attributable to VPG Gross Profit Operating Income Stockholders Diluted Earnings Per share Six fiscal months ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 June 29, 2
Slide 16: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA Fiscal quarter ended In $ thousands, except margin data June 29, 2024 July 1, 2023 March 30, 2024 Net earnings attributable to VPG stockholders $ 4,603 $ 8,236 $ 5,891 Interest Expense 649 1,079 628 Income tax expense 2,316 3,384 2,318 Depreciatio
Slide 17: Reconciliation of Adjusted Gross Profit by Segment
Reconciliation of Adjusted Gross Profit by Segment Fiscal quarter ended In $ thousands except margin data June 29, 2024 July 1, 2023 March 30, 2024 Sensors As reported - GAAP $ 11,066 $ 14,549 $ 10,732 As reported - GAAP Margins 38.3 % 40.1 % 36.5 % As Adjusted - Non GAAP $ 11,066 $ 14,549 $ 10,732
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