Vishay Precision Group, Inc. · NYSE:VPG
Vishay Precision — Q1 2023 Earnings Presentation
17 slides from Vishay Precision's earnings presentation, May 9, 2023
Slide 1: Vishay Precision Group First Fiscal Quarter 2023 Earnings
Vishay Precision Group First Fiscal Quarter 2023 Earnings May 9, 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: First Quarter 2023 Overview
First Quarter 2023 Overview • VPG achieved another solid quarter of performance. • Revenue in line with our expectations. • Increased our gross margin sequentially and year-over year. • Order trends improved through the first quarter. • Strong balance sheet and free cash flow support internal growth
Slide 4: Fiscal First Quarter 2023 Highlights
Fiscal First Quarter 2023 Highlights Consolidated Financial Highlights (in $ millions) • Revenue of $88.9 million, grew 1.4% from the prior year and declined 7.7% sequentially. • Adj. gross margin of 41.9% improved from 41.0% a year ago and 41.5% in 4Q22. • Adj. net earnings per diluted share of 1Q2
Slide 5: Sensors: First Quarter 2023 Highlights
Sensors: First Quarter 2023 Highlights (in $ millions) • Sensors 1Q23 revenues increased 1.1% sequentially, as higher sales of precision resistors in Avionics, Military and Space (AMS) offset lower sales of advanced sensors in consumer markets. • Sequentially, 1Q23 Sensors' adj. gross margin of 41.2
Slide 6: Weighing Solutions: First Quarter 2023 Highlights
Weighing Solutions: First Quarter 2023 Highlights (in $ millions) • 1Q23 revenues decreased 3.7% sequentially and decreased 2.8% from the prior year. • Sequentially, the decline in revenue reflected lower sales in the Industrial Weighing market, partially offset by growth in sales of onboard weighin
Slide 7: Measurement Systems: First Quarter 2023 Highlights
Measurement Systems: First Quarter 2023 Highlights (in $ millions) • 1Q23 revenues declined 24.4% sequentially due to timing of project-driven shipments. • The 18.3% year-over-year increase in revenue was due to higher revenue in the steel market. • Orders of $24.5 million grew 30.0% from 4Q22 as cu
Slide 8: Growth Focused Capital Allocation Strategy
VPG’s Business Model, Cash Generation, and Balance Sheet Support Growth Focused Capital Allocation Strategy Capital Allocation Priorities: 1 Internal Investments • Manufacturing capacity expansion and optimization • New product and market development. • Strategic, profitable niche businesses with st
Slide 9: Financial Results
Financial Results Fiscal quarter ended ($ in millions, except margin data and per share amounts) April 1, 2023 April 2, 2022 December 31, 2022 Net revenues $ 88.9 $ 87.7 $ 96.2 Gross profit $ 37.2 $ 35.3 $ 39.7 Gross profit margin Organic 41.9 % 40.2 % 41.2 % Growth Acquisitions Adjusted gross profi
Slide 10: Selected Balance Sheet Items
Selected Balance Sheet Items ($ in Millions) April 1, 2023 April 2, 2022 December 31, 2022 Cash & cash equivalents $ 93.3 $ 78.2 $ 88.6 Total assets 480.8 457.8 476.7 Total long-term debt 60.8 60.7 60.8 Total liabilities 165.9 176.0 170.2 PERFORMANCE THROUGH PRECISION 10
Slide 11: Q&A
Q&A PERFORMANCE THROUGH PRECISION 11 11
Slide 12: Appendix
Appendix PERFORMANCE THROUGH PRECISION 12 12
Slide 13: First Quarter 2023 Market Trends
First Quarter 2023 Market Trends Consolidated Revenue by Market $ in millions 1Q23 1Q22 4Q22 Test & Measurement $ 18.7 $ 18.0 $ 18.3 Avionics, Military, Space 11.7 8.2 9.8 Transportation 12.5 14.0 14.8 Industrial Weighing 11.0 13.2 13.5 General Industrial 4.8 5.9 5.0 Steel 10.9 7.4 14.3 Other Market
Slide 14: Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and 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 April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022 April 1,
Slide 15: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA Fiscal quarter ended In $ thousands, except margin data April 1, 2023 April 2, 2022 December 31, 2022 Net earnings attributable to VPG stockholders $ 6,964 $ 6,356 $ 8,834 Interest Expense 997 329 876 Income tax expense 2,220 1,741 1,884 Depreciat
Slide 16: Reconciliation of Adjusted Gross Profit by Segment
Reconciliation of Adjusted Gross Profit by Segment Fiscal quarter ended In $ thousands except margin data April 1, 2023 April 2, 2022 December 31, 2022 Sensors As reported - GAAP $ 15,144 $ 14,286 $ 13,645 As reported - GAAP Margins 41.2 % 37.8 % 37.6 % Start-up costs — 150 — COVID-19 impact $ — $ 1
Slide 17: 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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