|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended
|
March 31, 2018
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
Delaware
|
|
27-0986328
|
|
|
(State or Other Jurisdiction of Incorporation)
|
|
(I.R.S. Employer Identification Number)
|
|
|
|
|
||
|
3 Great Valley Parkway, Suite 150
|
|
|
|
|
Malvern, PA 19355
|
|
484-321-5300
|
|
|
(Address of Principal Executive Offices) (Zip Code)
|
|
(Registrant’s Telephone Number, including area code)
|
|
|
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Balance Sheets
(In thousands)
|
|||||||
|
March 31, 2018
|
|
December 31, 2017
|
||||
|
(Unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
73,734
|
|
|
$
|
74,292
|
|
Accounts receivable, net
|
53,141
|
|
|
46,789
|
|
||
Inventories:
|
|
|
|
||||
Raw materials
|
18,247
|
|
|
16,601
|
|
||
Work in process
|
23,387
|
|
|
23,160
|
|
||
Finished goods
|
19,963
|
|
|
20,174
|
|
||
Inventories, net
|
61,597
|
|
|
59,935
|
|
||
|
|
|
|
||||
Prepaid expenses and other current assets
|
12,668
|
|
|
10,299
|
|
||
Total current assets
|
201,140
|
|
|
191,315
|
|
||
|
|
|
|
||||
Property and equipment, at cost:
|
|
|
|
||||
Land
|
3,484
|
|
|
3,434
|
|
||
Buildings and improvements
|
50,816
|
|
|
50,276
|
|
||
Machinery and equipment
|
97,199
|
|
|
95,158
|
|
||
Software
|
8,068
|
|
|
7,955
|
|
||
Construction in progress
|
2,501
|
|
|
2,252
|
|
||
Accumulated depreciation
|
(106,324
|
)
|
|
(103,401
|
)
|
||
Property and equipment, net
|
55,744
|
|
|
55,674
|
|
||
|
|
|
|
||||
Goodwill
|
18,995
|
|
|
19,181
|
|
||
|
|
|
|
||||
Intangible assets, net
|
19,748
|
|
|
20,475
|
|
||
|
|
|
|
||||
Other assets
|
19,775
|
|
|
19,906
|
|
||
Total assets
|
$
|
315,402
|
|
|
$
|
306,551
|
|
|
|
|
|
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Balance Sheets (continued)
(In thousands)
|
|||||||
|
March 31, 2018
|
|
December 31, 2017
|
||||
|
(Unaudited)
|
|
|
||||
Liabilities and equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Trade accounts payable
|
$
|
12,953
|
|
|
$
|
13,678
|
|
Payroll and related expenses
|
17,201
|
|
|
15,892
|
|
||
Other accrued expenses
|
16,408
|
|
|
15,952
|
|
||
Income taxes
|
2,103
|
|
|
2,515
|
|
||
Current portion of long-term debt
|
3,926
|
|
|
3,878
|
|
||
Total current liabilities
|
52,591
|
|
|
51,915
|
|
||
|
|
|
|
||||
Long-term debt, less current portion
|
27,717
|
|
|
28,477
|
|
||
Deferred income taxes
|
2,300
|
|
|
2,300
|
|
||
Other liabilities
|
13,968
|
|
|
14,131
|
|
||
Accrued pension and other postretirement costs
|
16,952
|
|
|
16,424
|
|
||
Total liabilities
|
113,528
|
|
|
113,247
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
||||
|
|
|
|
||||
Equity:
|
|
|
|
||||
Common stock
|
1,304
|
|
|
1,288
|
|
||
Class B convertible common stock
|
103
|
|
|
103
|
|
||
Treasury stock
|
(8,765
|
)
|
|
(8,765
|
)
|
||
Capital in excess of par value
|
195,259
|
|
|
192,904
|
|
||
Retained earnings
|
47,911
|
|
|
43,076
|
|
||
Accumulated other comprehensive loss
|
(33,939
|
)
|
|
(35,450
|
)
|
||
Total Vishay Precision Group, Inc. stockholders' equity
|
201,873
|
|
|
193,156
|
|
||
Noncontrolling interests
|
1
|
|
|
148
|
|
||
Total equity
|
201,874
|
|
|
193,304
|
|
||
Total liabilities and equity
|
$
|
315,402
|
|
|
$
|
306,551
|
|
|
Fiscal quarter ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Net revenues
|
$
|
73,091
|
|
|
$
|
59,787
|
|
Costs of products sold
|
44,586
|
|
|
37,270
|
|
||
Gross profit
|
28,505
|
|
|
22,517
|
|
||
|
|
|
|
||||
Selling, general, and administrative expenses
|
20,319
|
|
|
18,018
|
|
||
Restructuring costs
|
—
|
|
|
554
|
|
||
Operating income
|
8,186
|
|
|
3,945
|
|
||
|
|
|
|
||||
Other income (expense):
|
|
|
|
||||
Interest expense
|
(442
|
)
|
|
(452
|
)
|
||
Other
|
(649
|
)
|
|
(529
|
)
|
||
Other income (expense) - net
|
(1,091
|
)
|
|
(981
|
)
|
||
|
|
|
|
||||
Income before taxes
|
7,095
|
|
|
2,964
|
|
||
|
|
|
|
||||
Income tax expense
|
2,137
|
|
|
961
|
|
||
|
|
|
|
||||
Net earnings
|
4,958
|
|
|
2,003
|
|
||
Less: net earnings attributable to noncontrolling interests
|
(30
|
)
|
|
8
|
|
||
Net earnings attributable to VPG stockholders
|
$
|
4,988
|
|
|
$
|
1,995
|
|
|
|
|
|
||||
Basic earnings per share attributable to VPG stockholders
|
$
|
0.37
|
|
|
$
|
0.15
|
|
Diluted earnings per share attributable to VPG stockholders
|
$
|
0.37
|
|
|
$
|
0.15
|
|
|
|
|
|
||||
Weighted average shares outstanding - basic
|
13,342
|
|
|
13,210
|
|
||
Weighted average shares outstanding - diluted
|
13,497
|
|
|
13,438
|
|
|
Fiscal quarter ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Net earnings
|
$
|
4,958
|
|
|
$
|
2,003
|
|
|
|
|
|
||||
Other comprehensive income (loss):
|
|
|
|
||||
Foreign currency translation adjustment
|
1,417
|
|
|
1,489
|
|
||
Pension and other postretirement actuarial items, net of tax
|
94
|
|
|
36
|
|
||
Other comprehensive income
|
1,511
|
|
|
1,525
|
|
||
|
|
|
|
||||
Total comprehensive income
|
6,469
|
|
|
3,528
|
|
||
|
|
|
|
||||
Less: comprehensive income attributable to noncontrolling interests
|
(30
|
)
|
|
8
|
|
||
|
|
|
|
||||
Comprehensive income attributable to VPG stockholders
|
$
|
6,499
|
|
|
$
|
3,520
|
|
|
Three fiscal months ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Operating activities
|
|
|
|
||||
Net earnings
|
$
|
4,958
|
|
|
$
|
2,003
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
2,684
|
|
|
2,681
|
|
||
Gain on disposal of property and equipment
|
(53
|
)
|
|
(109
|
)
|
||
Share-based compensation expense
|
373
|
|
|
243
|
|
||
Inventory write-offs for obsolescence
|
613
|
|
|
297
|
|
||
Deferred income taxes
|
268
|
|
|
(97
|
)
|
||
Other
|
(723
|
)
|
|
(359
|
)
|
||
Net changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable, net
|
(5,519
|
)
|
|
(3,362
|
)
|
||
Inventories, net
|
(1,910
|
)
|
|
284
|
|
||
Prepaid expenses and other current assets
|
(2,517
|
)
|
|
(2,154
|
)
|
||
Trade accounts payable
|
1,687
|
|
|
1,422
|
|
||
Other current liabilities
|
1,943
|
|
|
2,032
|
|
||
Net cash provided by operating activities
|
1,804
|
|
|
2,881
|
|
||
|
|
|
|
||||
Investing activities
|
|
|
|
||||
Capital expenditures
|
(4,296
|
)
|
|
(1,962
|
)
|
||
Proceeds from sale of property and equipment
|
53
|
|
|
148
|
|
||
Net cash used in investing activities
|
(4,243
|
)
|
|
(1,814
|
)
|
||
|
|
|
|
||||
Financing activities
|
|
|
|
||||
Principal payments on long-term debt and capital leases
|
(2,970
|
)
|
|
(657
|
)
|
||
Proceeds from revolving facility
|
8,000
|
|
|
7,000
|
|
||
Payments on revolving facility
|
(3,000
|
)
|
|
(7,000
|
)
|
||
Distributions to noncontrolling interests
|
(117
|
)
|
|
(2
|
)
|
||
Payments of employee taxes on certain share-based arrangements
|
(785
|
)
|
|
(303
|
)
|
||
Net cash provided by (used in) financing activities
|
1,128
|
|
|
(962
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
753
|
|
|
694
|
|
||
(Decrease) increase in cash and cash equivalents
|
(558
|
)
|
|
799
|
|
||
|
|
|
|
||||
Cash and cash equivalents at beginning of period
|
74,292
|
|
|
58,452
|
|
||
Cash and cash equivalents at end of period
|
$
|
73,734
|
|
|
$
|
59,251
|
|
|
|
|
|
||||
Supplemental disclosure of non-cash investing transactions:
|
|
|
|
||||
Capital expenditures purchased
|
$
|
(1,773
|
)
|
|
$
|
(1,962
|
)
|
Supplemental disclosure of non-cash financing transactions:
|
|
|
|
||||
Conversion of exchangeable notes to common stock
|
$
|
(2,794
|
)
|
|
$
|
—
|
|
|
Common
Stock
|
|
Class B
Convertible Common Stock |
|
Treasury Stock
|
|
Capital in
Excess of
Par Value
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total VPG, Inc.
Stockholders'
Equity
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
||||||||||||||||||
Balance at December 31, 2017
|
$
|
1,288
|
|
|
$
|
103
|
|
|
$
|
(8,765
|
)
|
|
$
|
192,904
|
|
|
$
|
43,076
|
|
|
$
|
(35,450
|
)
|
|
$
|
193,156
|
|
|
$
|
148
|
|
|
$
|
193,304
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,988
|
|
|
—
|
|
|
4,988
|
|
|
(30
|
)
|
|
4,958
|
|
|||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,511
|
|
|
1,511
|
|
|
—
|
|
|
1,511
|
|
|||||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
373
|
|
|
—
|
|
|
—
|
|
|
373
|
|
|
—
|
|
|
373
|
|
|||||||||
Restricted stock issuances (33,031 shares)
|
4
|
|
|
—
|
|
|
—
|
|
|
(800
|
)
|
|
—
|
|
|
—
|
|
|
(796
|
)
|
|
—
|
|
|
(796
|
)
|
|||||||||
Common stock issuance from conversion of exchangeable notes (123,808 shares)
|
12
|
|
|
—
|
|
|
—
|
|
|
2,782
|
|
|
—
|
|
|
—
|
|
|
2,794
|
|
|
—
|
|
|
2,794
|
|
|||||||||
Cumulative effect adjustment for adoption of ASU 2016-16
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(153
|
)
|
|
—
|
|
|
(153
|
)
|
|
—
|
|
|
(153
|
)
|
|||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(117
|
)
|
|
(117
|
)
|
|||||||||
Balance at March 31, 2018
|
$
|
1,304
|
|
|
$
|
103
|
|
|
$
|
(8,765
|
)
|
|
$
|
195,259
|
|
|
$
|
47,911
|
|
|
$
|
(33,939
|
)
|
|
$
|
201,873
|
|
|
$
|
1
|
|
|
$
|
201,874
|
|
|
Three Months Ended March 31, 2018
|
|
Three Months Ended April 1, 2017
|
||||||||||||||||||||||||||||
|
Foil Technology
Products |
|
Force
Sensors |
|
Weighing and
Control Systems |
|
Total
|
|
Foil Technology
Products |
|
Force
Sensors |
|
Weighing and
Control Systems |
|
Total
|
||||||||||||||||
United States
|
$
|
13,919
|
|
|
$
|
10,025
|
|
|
$
|
5,533
|
|
|
$
|
29,477
|
|
|
$
|
11,983
|
|
|
$
|
8,270
|
|
|
$
|
4,687
|
|
|
$
|
24,940
|
|
United Kingdom
|
948
|
|
|
3,363
|
|
|
3,593
|
|
|
7,904
|
|
|
806
|
|
|
2,924
|
|
|
2,692
|
|
|
6,422
|
|
||||||||
Other Europe
|
7,772
|
|
|
3,040
|
|
|
5,373
|
|
|
16,185
|
|
|
6,538
|
|
|
2,072
|
|
|
4,035
|
|
|
12,645
|
|
||||||||
Israel
|
2,370
|
|
|
142
|
|
|
—
|
|
|
2,512
|
|
|
1,213
|
|
|
144
|
|
|
—
|
|
|
1,357
|
|
||||||||
Asia
|
9,145
|
|
|
2,658
|
|
|
1,116
|
|
|
12,919
|
|
|
7,224
|
|
|
2,058
|
|
|
1,457
|
|
|
10,739
|
|
||||||||
Canada
|
—
|
|
|
—
|
|
|
4,094
|
|
|
4,094
|
|
|
—
|
|
|
—
|
|
|
3,684
|
|
|
3,684
|
|
||||||||
Total
|
$
|
34,154
|
|
|
$
|
19,228
|
|
|
$
|
19,709
|
|
|
$
|
73,091
|
|
|
$
|
27,764
|
|
|
$
|
15,468
|
|
|
$
|
16,555
|
|
|
$
|
59,787
|
|
|
Fiscal quarter ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Test & Measurement
|
$
|
19,260
|
|
|
$
|
15,983
|
|
Avionics, Military & Space
|
5,691
|
|
|
5,050
|
|
||
Medical
|
2,679
|
|
|
2,107
|
|
||
Precision Weighing
|
23,823
|
|
|
19,085
|
|
||
Force Measurement
|
17,292
|
|
|
12,375
|
|
||
Steel
|
4,346
|
|
|
5,187
|
|
||
Total
|
$
|
73,091
|
|
|
$
|
59,787
|
|
|
Contract Asset
|
|
Contract Liability
|
||||
|
Unbilled Revenue
|
|
Accrued Customer Advances
|
||||
Balance at December 31, 2017
|
$
|
824
|
|
|
$
|
3,229
|
|
Balance at March 31, 2018
|
1,013
|
|
|
3,780
|
|
||
Increase/(decrease)
|
$
|
189
|
|
|
$
|
551
|
|
|
Total
|
|
Weighing and Control Systems Segment
|
|
Foil Technology Products Segment
|
||||||||||
|
|
|
KELK Acquisition
|
|
Stress-Tek Acquisition
|
|
Pacific Acquisition
|
||||||||
Balance at December 31, 2017
|
$
|
19,181
|
|
|
$
|
6,828
|
|
|
$
|
6,311
|
|
|
$
|
6,042
|
|
Foreign currency translation adjustment
|
(186
|
)
|
|
(186
|
)
|
|
—
|
|
|
—
|
|
||||
Balance at March 31, 2018
|
$
|
18,995
|
|
|
$
|
6,642
|
|
|
$
|
6,311
|
|
|
$
|
6,042
|
|
Balance at December 31, 2017
|
$
|
254
|
|
Restructuring costs in 2018
|
—
|
|
|
Cash payments
|
(81
|
)
|
|
Foreign currency translation
|
—
|
|
|
Balance at March 31, 2018
|
$
|
173
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
2015 Credit Agreement - Revolving Facility
|
$
|
14,000
|
|
|
$
|
9,000
|
|
2015 Credit Agreement - U.S. Closing Date Term Facility
|
3,490
|
|
|
3,664
|
|
||
2015 Credit Agreement - U.S. Delayed Draw Term Facility
|
8,530
|
|
|
8,956
|
|
||
2015 Credit Agreement - Canadian Term Facility
|
5,543
|
|
|
7,880
|
|
||
Exchangeable Unsecured Notes, due 2102
|
—
|
|
|
2,794
|
|
||
Other debt
|
389
|
|
|
401
|
|
||
Deferred financing costs
|
(309
|
)
|
|
(340
|
)
|
||
Total long-term debt
|
31,643
|
|
|
32,355
|
|
||
Less: current portion
|
3,926
|
|
|
3,878
|
|
||
Long-term debt, less current portion
|
$
|
27,717
|
|
|
$
|
28,477
|
|
|
Foreign Currency Translation Adjustment
|
|
Pension
and Other Postretirement Actuarial Items |
|
Total
|
||||||
Balance at January 1, 2018
|
$
|
(27,390
|
)
|
|
$
|
(8,060
|
)
|
|
$
|
(35,450
|
)
|
Other comprehensive income before reclassifications
|
1,417
|
|
|
—
|
|
|
1,417
|
|
|||
Amounts reclassified from accumulated other comprehensive income (loss)
|
—
|
|
|
94
|
|
|
94
|
|
|||
Balance at March 31, 2018
|
$
|
(25,973
|
)
|
|
$
|
(7,966
|
)
|
|
$
|
(33,939
|
)
|
|
Foreign Currency Translation Adjustment
|
|
Pension
and Other Postretirement Actuarial Items |
|
Total
|
||||||
Balance at January 1, 2017
|
$
|
(33,192
|
)
|
|
$
|
(7,145
|
)
|
|
$
|
(40,337
|
)
|
Other comprehensive loss before reclassifications
|
1,489
|
|
|
—
|
|
|
1,489
|
|
|||
Amounts reclassified from accumulated other comprehensive income (loss)
|
—
|
|
|
36
|
|
|
36
|
|
|||
Balance at April 1, 2017
|
$
|
(31,703
|
)
|
|
$
|
(7,109
|
)
|
|
$
|
(38,812
|
)
|
|
Fiscal quarter ended
March 31, 2018 |
|
Fiscal quarter ended
April 1, 2017 |
||||||||||||
|
Pension
Plans |
|
OPEB
Plans |
|
Pension
Plans |
|
OPEB
Plans |
||||||||
Net service cost
|
$
|
138
|
|
|
$
|
27
|
|
|
$
|
117
|
|
|
$
|
28
|
|
Interest cost
|
176
|
|
|
38
|
|
|
163
|
|
|
35
|
|
||||
Expected return on plan assets
|
(142
|
)
|
|
—
|
|
|
(130
|
)
|
|
—
|
|
||||
Amortization of actuarial losses
|
131
|
|
|
44
|
|
|
111
|
|
|
28
|
|
||||
Net periodic benefit cost
|
$
|
303
|
|
|
$
|
109
|
|
|
$
|
261
|
|
|
$
|
91
|
|
|
Fiscal quarter ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Restricted stock units
|
$
|
373
|
|
|
$
|
243
|
|
|
Fiscal quarter ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Net third-party revenues:
|
|
|
|
||||
Foil Technology Products
|
$
|
34,154
|
|
|
$
|
27,764
|
|
Force Sensors
|
19,228
|
|
|
15,468
|
|
||
Weighing and Control Systems
|
19,709
|
|
|
16,555
|
|
||
Total
|
$
|
73,091
|
|
|
$
|
59,787
|
|
|
|
|
|
||||
Gross profit:
|
|
|
|
||||
Foil Technology Products
|
$
|
14,604
|
|
|
$
|
11,499
|
|
Force Sensors
|
5,240
|
|
|
3,691
|
|
||
Weighing and Control Systems
|
8,661
|
|
|
7,327
|
|
||
Total
|
$
|
28,505
|
|
|
$
|
22,517
|
|
|
|
|
|
||||
Reconciliation of segment operating income to consolidated results:
|
|
|
|
||||
Foil Technology Products
|
$
|
8,793
|
|
|
$
|
6,063
|
|
Force Sensors
|
2,575
|
|
|
1,381
|
|
||
Weighing and Control Systems
|
3,878
|
|
|
3,081
|
|
||
Unallocated G&A expenses
|
(7,060
|
)
|
|
(6,026
|
)
|
||
Restructuring costs
|
—
|
|
|
(554
|
)
|
||
Consolidated condensed operating income
|
$
|
8,186
|
|
|
$
|
3,945
|
|
|
|
|
|
||||
Restructuring costs:
|
|
|
|
||||
Foil Technology Products
|
$
|
—
|
|
|
$
|
(126
|
)
|
Force Sensors
|
—
|
|
|
(177
|
)
|
||
Weighing and Control Systems
|
—
|
|
|
(248
|
)
|
||
Corporate/Other
|
—
|
|
|
(3
|
)
|
||
|
$
|
—
|
|
|
$
|
(554
|
)
|
|
Fiscal quarter ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Intersegment sales:
|
|
|
|
||||
Foil Technology Products to Force Sensors and Weighing and Control Systems
|
$
|
1,019
|
|
|
$
|
678
|
|
Force Sensors to Foil Technology Products and Weighing and Control Systems
|
$
|
311
|
|
|
$
|
419
|
|
Weighing and Control Systems to Foil Technology Products and Force Sensors
|
$
|
161
|
|
|
$
|
164
|
|
|
Fiscal quarter ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Numerator:
|
|
|
|
||||
Numerator for basic earnings per share:
|
|
|
|
||||
Net earnings attributable to VPG stockholders
|
$
|
4,988
|
|
|
$
|
1,995
|
|
|
|
|
|
||||
Adjustment to the numerator for net earnings:
|
|
|
|
||||
Interest savings assuming conversion of dilutive exchangeable notes, net of tax
|
5
|
|
|
6
|
|
||
|
|
|
|
||||
Numerator for diluted earnings per share:
|
|
|
|
||||
Net earnings attributable to VPG stockholders
|
$
|
4,993
|
|
|
$
|
2,001
|
|
|
|
|
|
||||
Denominator:
|
|
|
|
||||
Denominator for basic earnings per share:
|
|
|
|
||||
Weighted average shares
|
13,342
|
|
|
13,210
|
|
||
|
|
|
|
||||
Effect of dilutive securities:
|
|
|
|
||||
Exchangeable notes
|
90
|
|
|
181
|
|
||
Restricted stock units
|
65
|
|
|
47
|
|
||
Dilutive potential common shares
|
155
|
|
|
228
|
|
||
|
|
|
|
||||
Denominator for diluted earnings per share:
|
|
|
|
||||
Adjusted weighted average shares
|
13,497
|
|
|
13,438
|
|
||
|
|
|
|
||||
Basic earnings per share attributable to VPG stockholders
|
$
|
0.37
|
|
|
$
|
0.15
|
|
|
|
|
|
||||
Diluted earnings per share attributable to VPG stockholders
|
$
|
0.37
|
|
|
$
|
0.15
|
|
|
Fiscal quarter ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Foreign exchange loss
|
$
|
(525
|
)
|
|
$
|
(374
|
)
|
Interest income
|
97
|
|
|
38
|
|
||
Other
|
(221
|
)
|
|
(193
|
)
|
||
|
$
|
(649
|
)
|
|
$
|
(529
|
)
|
|
|
|
|
Fair value measurements at reporting date using:
|
||||||||||||
|
|
Total
Fair Value |
|
Level 1
Inputs |
|
Level 2
Inputs |
|
Level 3
Inputs |
||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Assets held in rabbi trusts
|
|
$
|
4,770
|
|
|
$
|
130
|
|
|
$
|
4,640
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Assets held in rabbi trusts
|
|
$
|
4,988
|
|
|
$
|
364
|
|
|
$
|
4,624
|
|
|
$
|
—
|
|
|
Fiscal quarter ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Gross profit
|
$
|
28,505
|
|
|
$
|
22,517
|
|
Gross profit margin
|
39.0
|
%
|
|
37.7
|
%
|
||
|
|
|
|
||||
|
|
|
|
||||
Adjusted gross profit
|
$
|
28,505
|
|
|
$
|
22,517
|
|
Adjusted gross profit margin
|
39.0
|
%
|
|
37.7
|
%
|
|
Fiscal quarter ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Operating income
|
$
|
8,186
|
|
|
$
|
3,945
|
|
Operating margin
|
11.2
|
%
|
|
6.6
|
%
|
||
|
|
|
|
||||
Reconciling items affecting operating margin
|
|
|
|
||||
Restructuring costs
|
—
|
|
|
554
|
|
||
|
|
|
|
||||
Adjusted operating income
|
$
|
8,186
|
|
|
$
|
4,499
|
|
Adjusted operating margin
|
11.2
|
%
|
|
7.5
|
%
|
|
Fiscal quarter ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Net earnings attributable to VPG stockholders
|
$
|
4,988
|
|
|
$
|
1,995
|
|
|
|
|
|
||||
Reconciling items affecting operating margin
|
|
|
|
||||
Restructuring costs
|
—
|
|
|
554
|
|
||
Less reconciling items affecting income tax expense
|
|
|
|
||||
Tax effect of reconciling items
|
—
|
|
|
42
|
|
||
Adjusted net earnings attributable to VPG stockholders
|
$
|
4,988
|
|
|
$
|
2,507
|
|
|
|
|
|
||||
Adjusted net earnings per diluted share
|
$
|
0.37
|
|
|
$
|
0.19
|
|
|
|
|
|
||||
Weighted average shares outstanding - diluted
|
13,497
|
|
|
13,438
|
|
|
1st Quarter
|
|
2nd Quarter
|
|
3rd Quarter
|
|
4th Quarter
|
|
1st Quarter
|
||||||||||
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2018
|
||||||||||
Net revenues
|
$
|
59,787
|
|
|
$
|
62,319
|
|
|
$
|
62,805
|
|
|
$
|
69,439
|
|
|
$
|
73,091
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit margin
|
37.7
|
%
|
|
39.7
|
%
|
|
38.6
|
%
|
|
38.5
|
%
|
|
39.0
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
End-of-period backlog
|
$
|
61,400
|
|
|
$
|
67,500
|
|
|
$
|
76,200
|
|
|
$
|
88,900
|
|
|
$
|
93,900
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Book-to-bill ratio
|
1.06
|
|
|
1.08
|
|
|
1.12
|
|
|
1.18
|
|
|
1.05
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Inventory turnover
|
2.64
|
|
|
2.64
|
|
|
2.64
|
|
|
2.85
|
|
|
2.93
|
|
|
1st Quarter
|
|
2nd Quarter
|
|
3rd Quarter
|
|
4th Quarter
|
|
1st Quarter
|
||||||||||
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2018
|
||||||||||
Foil Technology Products
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenues
|
$
|
27,764
|
|
|
$
|
29,306
|
|
|
$
|
29,315
|
|
|
$
|
29,888
|
|
|
$
|
34,154
|
|
Gross profit margin
|
41.4
|
%
|
|
41.9
|
%
|
|
41.7
|
%
|
|
39.3
|
%
|
|
42.8
|
%
|
|||||
End-of-period backlog
|
$
|
31,100
|
|
|
$
|
34,300
|
|
|
$
|
35,500
|
|
|
$
|
46,600
|
|
|
$
|
47,900
|
|
Book-to-bill ratio
|
1.06
|
|
|
1.09
|
|
|
1.03
|
|
|
1.36
|
|
|
1.01
|
|
|||||
Inventory turnover
|
2.80
|
|
|
2.90
|
|
|
2.88
|
|
|
2.98
|
|
|
3.18
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Force Sensors
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenues
|
$
|
15,468
|
|
|
$
|
15,656
|
|
|
$
|
16,596
|
|
|
$
|
17,726
|
|
|
$
|
19,228
|
|
Gross profit margin
|
23.9
|
%
|
|
28.9
|
%
|
|
28.6
|
%
|
|
29.5
|
%
|
|
27.3
|
%
|
|||||
End-of-period backlog
|
$
|
14,100
|
|
|
$
|
14,100
|
|
|
$
|
18,300
|
|
|
$
|
21,600
|
|
|
$
|
19,900
|
|
Book-to-bill ratio
|
1.06
|
|
|
0.99
|
|
|
1.25
|
|
|
1.18
|
|
|
0.91
|
|
|||||
Inventory turnover
|
2.11
|
|
|
1.97
|
|
|
2.02
|
|
|
2.07
|
|
|
2.26
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighing and Control Systems
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenues
|
$
|
16,555
|
|
|
$
|
17,357
|
|
|
$
|
16,894
|
|
|
$
|
21,825
|
|
|
$
|
19,709
|
|
Gross profit margin
|
44.3
|
%
|
|
45.8
|
%
|
|
43.1
|
%
|
|
44.8
|
%
|
|
43.9
|
%
|
|||||
End-of-period backlog
|
$
|
16,200
|
|
|
$
|
19,100
|
|
|
$
|
22,400
|
|
|
$
|
20,700
|
|
|
$
|
26,100
|
|
Book-to-bill ratio
|
1.06
|
|
|
1.14
|
|
|
1.15
|
|
|
0.92
|
|
|
1.28
|
|
|||||
Inventory turnover
|
3.36
|
|
|
3.52
|
|
|
3.41
|
|
|
4.22
|
|
|
3.83
|
|
|
Fiscal quarter ended
|
||||
|
March 31, 2018
|
|
April 1, 2017
|
||
Costs of products sold
|
61.0
|
%
|
|
62.3
|
%
|
Gross profit
|
39.0
|
%
|
|
37.7
|
%
|
Selling, general, and administrative expenses
|
27.8
|
%
|
|
30.1
|
%
|
Operating income
|
11.2
|
%
|
|
6.6
|
%
|
Income before taxes
|
9.7
|
%
|
|
5.0
|
%
|
Net earnings
|
6.8
|
%
|
|
3.4
|
%
|
Net earnings attributable to VPG stockholders
|
6.8
|
%
|
|
3.3
|
%
|
|
|
|
|
||
Effective tax rate
|
30.1
|
%
|
|
32.4
|
%
|
|
Fiscal quarter ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Net revenues
|
$
|
73,091
|
|
|
$
|
59,787
|
|
Change versus comparable prior year period
|
$
|
13,304
|
|
|
|
||
Percentage change versus prior year period
|
22.3
|
%
|
|
|
|
Fiscal quarter ended
|
||||
|
March 31, 2018
|
|
April 1, 2017
|
||
Gross profit margin
|
39.0
|
%
|
|
37.7
|
%
|
|
Fiscal quarter ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Net revenues
|
$
|
34,154
|
|
|
$
|
27,764
|
|
Change versus comparable prior year period
|
$
|
6,390
|
|
|
|
||
Percentage change versus prior year period
|
23.0
|
%
|
|
|
|
Fiscal quarter ended
|
||||
|
March 31, 2018
|
|
April 1, 2017
|
||
Gross profit margin
|
42.8
|
%
|
|
41.4
|
%
|
|
Fiscal quarter ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Net revenues
|
$
|
19,228
|
|
|
$
|
15,468
|
|
Change versus comparable prior year period
|
$
|
3,760
|
|
|
|
||
Percentage change versus prior year period
|
24.3
|
%
|
|
|
|
Fiscal quarter ended
|
|
||||
|
March 31, 2018
|
|
April 1, 2017
|
|
||
Gross profit margin
|
27.3
|
%
|
|
23.9
|
%
|
|
|
Fiscal quarter ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Net revenues
|
$
|
19,709
|
|
|
$
|
16,555
|
|
Change versus comparable prior year period
|
$
|
3,154
|
|
|
|
||
Percentage change versus prior year period
|
19.1
|
%
|
|
|
|
Fiscal quarter ended
|
||||
|
March 31, 2018
|
|
April 1, 2017
|
||
Gross profit margin
|
43.9
|
%
|
|
44.3
|
%
|
|
Fiscal quarter ended
|
||||||
|
March 31, 2018
|
|
April 1, 2017
|
||||
Total SG&A expenses
|
$
|
20,319
|
|
|
$
|
18,018
|
|
|
|
|
|
||||
as a percentage of net revenues
|
27.8
|
%
|
|
30.1
|
%
|
|
Fiscal quarter ended
|
|
|
||||||||
|
March 31, 2018
|
|
April 1, 2017
|
|
Change
|
||||||
Foreign exchange loss
|
$
|
(525
|
)
|
|
$
|
(374
|
)
|
|
$
|
(151
|
)
|
Interest income
|
97
|
|
|
38
|
|
|
59
|
|
|||
Other
|
(221
|
)
|
|
(193
|
)
|
|
(28
|
)
|
|||
|
$
|
(649
|
)
|
|
$
|
(529
|
)
|
|
$
|
(120
|
)
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
Cash and cash equivalents
|
$
|
73,734
|
|
|
$
|
74,292
|
|
|
|
|
|
||||
Third-party debt, including current and long-term:
|
|
|
|
||||
Term loans
|
17,563
|
|
|
20,500
|
|
||
Revolving debt
|
14,000
|
|
|
9,000
|
|
||
Third-party debt held by Japanese subsidiary
|
389
|
|
|
401
|
|
||
Exchangeable notes, due 2102
|
—
|
|
|
2,794
|
|
||
Deferred financing costs
|
(309
|
)
|
|
(340
|
)
|
||
Total third-party debt
|
31,643
|
|
|
32,355
|
|
||
Net cash
|
$
|
42,091
|
|
|
$
|
41,937
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||
Israel
|
40
|
%
|
|
37
|
%
|
Asia
|
20
|
%
|
|
28
|
%
|
Europe
|
15
|
%
|
|
15
|
%
|
United States
|
8
|
%
|
|
7
|
%
|
United Kingdom
|
13
|
%
|
|
5
|
%
|
Canada
|
4
|
%
|
|
8
|
%
|
|
100
|
%
|
|
100
|
%
|
|
VISHAY PRECISION GROUP, INC.
|
|
|
|
/s/ William M. Clancy
|
|
William M. Clancy
|
|
Executive Vice President and Chief Financial Officer
|
|
(as a duly authorized officer and principal financial and accounting officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Vishay Precision Group, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
Date: May 9, 2018
|
|
/s/ Ziv Shoshani
|
Ziv Shoshani
|
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Vishay Precision Group, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
Date: May 9, 2018
|
|
/s/ William M. Clancy
|
William M. Clancy
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Ziv Shoshani
|
Ziv Shoshani
|
Chief Executive Officer
|
May 9, 2018
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ William M. Clancy
|
William M. Clancy
|
Chief Financial Officer
|
May 9, 2018
|