Vishay Precision Group, Inc. · NYSE:VPG
Vishay Precision — Q3 2023 Earnings Presentation
18 slides from Vishay Precision's earnings presentation, Nov 7, 2023
Slide 1: Third Fiscal Quarter 2023 Earnings
Vishay Precision Group Third Fiscal Quarter 2023 Earnings November 7, 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: Third Quarter 2023 Overview
Third Quarter 2023 Overview • Achieved revenue at the low end of our guidance, reflecting macro economic headwinds in some end-markets. • Orders of $76.9 million declined 10% sequentially, primarily due to lower orders in our steel and industrial markets, as trends were mixed across our businesses.
Slide 4: Fiscal Third Quarter 2023 Highlights
Fiscal Third Quarter 2023 Highlights Consolidated Financial Highlights (in $ millions) • Revenue of $85.9 million, declined 4.7% from the prior year and 5.4% sequentially. • Adj. gross margin of 42.1% increase from 41.7% a year ago and declined from 42.7% in 2Q23. • Adj. net earnings per diluted sha
Slide 5: Sensors: Third Quarter 2023 Highlights
Sensors: Third Quarter 2023 Highlights (in $ millions) • Sensors 3Q23 revenues decreased 10.3% sequentially. • The sequential decline reflected lower revenue of precision resistors in the AMS and Test and Measurement end markets and lower revenue of strain gages in the General Industrial end market.
Slide 6: Weighing Solutions: Third Quarter 2023 Highlights
Weighing Solutions: Third Quarter 2023 Highlights (in $ millions) • 3Q23 revenues decreased 7.3% sequentially and 7.7% from the prior year. • Sequentially, higher sales to the transportation market for on-board weighing products were offset by lower sales to the industrial markets and to OEM custome
Slide 7: Measurement Systems: Third Quarter 2023 Highlights
Measurement Systems: Third Quarter 2023 Highlights (in $ millions) • 3Q23 revenues of $24.4 million increased sequentially 4.6% and were 17.2% higher year-over-year. • Sequentially, higher sales of DTS products to the AMS and Transportation markets were partially offset by lower KELK sales to the st
Slide 8: Focused on Key Priorities
Focused on Key Priorities 1 2 3 Growth Initiatives Cost Reduction and Profit Execute Capital Enhancement Initiatives Allocation Strategy • Execute on growth initiatives • Continue ongoing cost reduction • Continue to implement capital aimed at accelerating new and operational excellence allocation s
Slide 9: Financial Results
Financial Results Fiscal quarter ended ($ in millions, except margin data and per share amounts) September 30, 2023 October 1, 2022 July 1, 2023 Net revenues $ 85.9 $ 90.1 $ 90.8 Gross profit $ 35.9 $ 37.3 $ 38.7 Gross profit margin Organic 41.9 % Growth Acquisitions 41.4 % 42.6 % Adjusted gross pro
Slide 10: Selected Balance Sheet Items
Selected Balance Sheet Items ($ in Millions) September 30, 2023 October 1, 2022 July 1, 2023 Cash & cash equivalents $ 94.6 $ 79.9 $ 98.5 Total assets $ 484.3 $ 454.2 $ 487.0 Total long-term debt $ 53.8 $ 60.8 $ 60.8 Total liabilities $ 160.1 $ 167.7 $ 165.3 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: Third Quarter 2023 Market Trends
Third Quarter 2023 Market Trends Consolidated Revenue by Market $ in millions 3Q23 3Q22 2Q23 Test & Measurement $ 17.1 $ 20.7 $ 18.7 Avionics, Military, Space 8.3 6.5 8.3 Transportation 15.5 13.9 13.0 Industrial Weighing 10.5 12.5 12.0 General Industrial 4.6 5.0 5.4 Steel 13.4 11.4 14.9 Other Market
Slide 14: Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted EPS - Quarterly
Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted Earnings Per Share - Quarterly Net Earnings Attributable to Gross Profit Operating Income VPG Stockholders Diluted Earnings Per share September 30, September 30, September 30, September 30, Three months ended 2023 Oc
Slide 15: Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted EPS - Year to date
Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted Earnings Per Share – Year to date Net Earnings Attributable to Gross Profit Operating Income VPG Stockholders Diluted Earnings Per share Nine fiscal months ended 9/30/2023 10/1/2022 9/30/2023 10/1/2022 9/30/2023 10/1
Slide 16: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA Fiscal quarter ended September 30, In $ thousands, except margin data 2023 October 1, 2022 July 1, 2023 Net earnings attributable to VPG stockholders $ 6,280 $ 10,118 $ 8,236 Interest Expense 1,119 636 1,079 Income tax expense 2,419 2,323 3,384 De
Slide 17: Reconciliation of Adjusted Gross Profit by Segment
Reconciliation of Adjusted Gross Profit by Segment Fiscal quarter ended In $ thousands except margin data September 30, 2023 October 1, 2022 July 1, 2023 Sensors As reported - GAAP $ 11,681 $ 15,324 $ 14,549 As reported - GAAP Margins 35.9 % 40.5 % 40.1 % As Adjusted - Non GAAP $ 11,681 $ 15,324 $ 1
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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