1Q25 Earnings Call May 6, 2025 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 Act of 1995. Such statements involve a number of risks, uncertainties, and contingencies, many of which are beyond our control, which may cause actual results, performance, or achieve ...

Vishay Precision Group (VPG) Q1 2025 Earnings Call May 06, 2025 09:00 AM ET Company Participants Steve Cantor - Senior Director - Investor Relations & Marketing CommunicationsZiv Shoshani - CEO, President & DirectorWilliam M. Clancy - EVP and CFO Conference Call Participants John Franzreb - Senior Equity AnalystGriffin Boss - Equity Research Analyst Operator Hello, everyone, and welcome to the PPG's twenty twenty five First Quarter Earnings Conference Call. My name is Ezra, and I will be your coordinator to ...

Vishay Precision Group (VPG) Q1 2025 Earnings Call May 06, 2025 09:00 AM ET Speaker0 Hello, everyone, and welcome to the PPG's twenty twenty five First Quarter Earnings Conference Call. My name is Ezra, and I will be your coordinator today. I will now hand you over to your host, Steve Cantor, Senior Director of Investor Relations to begin. Steve, please go ahead. Speaker1 Thank you, Ezra. Good morning, everyone. Welcome to VPG's twenty twenty five first quarter earnings conference call. Our Q1 press release ...

Exhibit 99.1 For Immediate Release VPG Reports Fiscal 2025 First Quarter Results MALVERN, Pa. (May 6, 2025) - Vishay Precision Group, Inc. (NYSE: VPG), a leader in precision measurement and sensing technologies, today announced its results for its fiscal 2025 first quarter ended March 29, 2025. First Fiscal Quarter Highlights (comparisons are to the comparable period a year ago): 1 • Revenues of $71.7 million decreased 11.2%. • Gross profit margin was 37.7%, as compared to 43.4%. • Adjusted gross profit mar ...

Core Insights - Vishay Precision Group, Inc. (VPG) reported a net loss of $0.9 million, or $0.07 per diluted share, for the first fiscal quarter of 2025, a significant decline from net earnings of $5.9 million, or $0.44 per diluted share, in the same period last year [2][20]. Financial Performance - Total orders for the first fiscal quarter were $74.4 million, reflecting a 2.7% sequential growth and a book-to-bill ratio of 1.04, indicating a positive order intake trend [1]. - Adjusted net earnings for the first fiscal quarter were $0.5 million, or $0.04 per adjusted diluted share, down from $5.7 million, or $0.42 per adjusted diluted share, in the first fiscal quarter of 2024 [3][20]. Segment Performance - The Sensors segment reported revenue of $27.1 million, an 8.0% decrease year-over-year but a 5.1% increase sequentially [4]. - The Weighing Solutions segment generated revenue of $26.4 million, down 8.3% year-over-year but up 2.7% sequentially [6][7]. - The Measurement Systems segment saw revenue decline by 19.0% year-over-year to $18.2 million, with a 13.8% decrease compared to the previous quarter [9]. Profitability Metrics - Gross profit margin for the overall company was 37.7%, down from 43.4% in the first fiscal quarter of 2024 [20]. - The adjusted gross margin for the Sensors segment was 30.8%, while the Weighing Solutions segment reported an adjusted gross margin of 37.8% [5][8]. - EBITDA for the first fiscal quarter was $3.3 million, with an EBITDA margin of 4.6%, compared to $12.8 million and 15.8% in the same quarter last year [29]. Cash Flow and Balance Sheet - Cash from operating activities was $5.3 million, with adjusted free cash flow of $3.7 million for the first fiscal quarter [6][13]. - The company’s total assets as of March 29, 2025, were $453.8 million, slightly up from $450.9 million at the end of 2024 [21][23]. Outlook - The company anticipates net revenues for the second fiscal quarter of 2025 to be in the range of $70 million to $76 million, assuming constant foreign currency exchange rates from the first fiscal quarter [11].

MALVERN, Pa., April 10, 2025 (GLOBE NEWSWIRE) -- Vishay Precision Group, Inc. (NYSE: VPG), a leader in precision measurement and sensing technologies, will release its financial results for the first quarter fiscal 2025 before the opening of the market on Tuesday, May 6, 2025. Ziv Shoshani, chief executive officer, and Bill Clancy, chief financial officer, will host a conference call that day (Tuesday, May 6, 2025) at 9:00 a.m. U.S. eastern time. To access the conference call, interested parties should call ...

MALVERN, Pa., March 10, 2025 (GLOBE NEWSWIRE) -- Vishay Precision Group, Inc. (NYSE: VPG), a leader in precision measurement and sensing technologies, announced that the company will present at the Sidoti March 2025 Small-Cap Virtual Investor Conference on Thursday, March 19, 2025 at 11:30 a.m. ET. A live and on-demand webcast of VPG’s presentation will be available to the public and can be accessed from the following link: https://sidoti.zoom.us/webinar/VPG, or on VPG’s website: ir.vpgsensors.com/events. F ...

Manufacturing and Operations - The company is shifting manufacturing to regions with advanced automation and lower labor costs to maintain cost competitiveness[62] - The company maintains a safety stock inventory of certain critical materials, as some specialized materials are sourced from a single vendor[301] - Significant price volatility in certain metals used in manufacturing could materially and adversely affect the company's results of operations[301] Employment and Workforce - As of December 31, 2024, the company employed approximately 2,200 employees, with 82% located outside the United States[83] Financial Position - The company had $32.0 million in borrowings outstanding under a revolving credit facility as of December 31, 2024[295] - At December 31, 2024, the company had $79.3 million in cash and cash equivalents, accruing interest at various variable rates[295] Interest Rate Impact - A 50 basis point change in interest rates is expected to impact annualized net earnings by $0.2 million for both 2024 and 2023[296] Customer Base - The company maintains a diversified customer base with no single customer accounting for more than 10% of net revenues[67] Research and Development - The company continues to invest in research and development to introduce innovative products and improve profitability, expecting to sustain or increase R&D expenditures[76] Environmental, Social, and Governance (ESG) - The company has a multi-year Environmental, Social and Governance (ESG) plan, with the first Sustainability Report issued in October 2024[81] Intellectual Property - The company has made significant investments in securing intellectual property protection, including numerous patents[77] Competitive Landscape - The competitive landscape is fragmented, with no competitors having the same product mix and proprietary technology as the company[70] Foreign Currency Risk - The company is exposed to foreign currency exchange rate risks, particularly with significant exposures to the British pound, Canadian dollar, Chinese renminbi, euro, Indian rupee, Israeli shekel, Japanese yen, Swedish krona, and Taiwanese dollar[297] - A hypothetical 10% adverse movement in foreign currency exchange rates would impact net earnings by approximately $4.1 million for the year ended December 31, 2024, and $3.7 million for the year ended December 31, 2023[299] - The company’s exposure to foreign currency risk is more pronounced in Israel and India due to a higher percentage of expenses denominated in local currencies compared to sales[298] - A change in the mix of currencies could materially affect the estimated impact of a hypothetical 10% movement in the value of the U.S. dollar[300] - The timing of cash receipts and disbursements could result in materially different actual results versus hypothetical scenarios regarding currency movements[300] Raw Material Costs - A 10% increase or decrease in the costs of raw materials subject to commodity price risk would decrease or increase net earnings by $1.0 million and $1.2 million for the years ended December 31, 2024 and 2023, respectively[303] - The company may face decreased margins if it cannot pass on increased raw material costs to customers during periods of rising prices[302] - The company may need to record losses for adverse purchase commitments for raw materials in periods of declining prices[302]

Financial Data and Key Metrics Changes - Revenue for fiscal 2024 was $306.5 million, reflecting a 4% sequential decline in Q4 due to macroeconomic and cyclical headwinds [7] - Adjusted gross margin for Q4 was 38.3%, down from 40% in Q3, impacted by unfavorable product mix and one-time material adjustments [28] - Adjusted net earnings for Q4 were $400,000 or $0.03 per diluted share, compared to $2.5 million or $0.19 per diluted share in Q3 [32] - Adjusted EBITDA was $5.1 million or 7% of revenues, down from $8.1 million or 10.7% in Q3 [33] Business Segment Data and Key Metrics Changes - Sensors segment revenue declined 8.7% sequentially in Q4, but bookings grew 7.0%, resulting in a book-to-bill of 1.04% [12] - Weighing solutions segment sales increased 2.2% from Q3, driven by industrial weighing and precision agriculture [13] - Measurement systems revenue declined 5.3% sequentially to $21.2 million, with orders down 8.9% due to customer push-outs [15][16] Market Data and Key Metrics Changes - Consolidated orders grew 5.5% sequentially, marking a book-to-bill of 1.0%, the first positive book-to-bill in eight quarters [8] - The company noted a recovery in the semiconductor back-end equipment market, indicating potential growth in the sensor segment [41] Company Strategy and Development Direction - The company aims to secure design wins in new applications across robotics, consumer, data center, medical, and aerospace and defense, driven by industrial automation and electrification trends [18] - Business development initiatives contributed approximately $18 million in revenue in 2024, with a target of $30 million for 2025 and an aggregate potential of $100 million over the next three to four years [19][70] - The company is focusing on efficiency initiatives, expecting at least $5 million in additional annual cost reductions in 2025 [25] Management Comments on Operating Environment and Future Outlook - Management expressed optimism for a recovery in the sensor segment, expecting positive trends in net bookings in Q1 and Q2, with acceleration in the second half of the year [41] - The company anticipates a favorable impact from tariffs, expecting to gain market share in the U.S. due to limited competition from non-Chinese manufacturers [45][46] Other Important Information - The company ended Q4 with $79.3 million in cash and cash equivalents and total long-term debt of $31.4 million, indicating a strong balance sheet [35] - Capital expenditures for 2025 are budgeted at $10 to $12 million, with a focus on efficiency improvements and manufacturing consolidation [34] Q&A Session Summary Question: Can you talk about the test and measurement and avionics markets in the Sensors segment? - Management noted that the sensor business showed a book-to-bill over one in Q4, with larger semiannual orders for AMS business and signs of recovery in semiconductor back-end equipment [40][41] Question: Did you see any meaningful revenue impact during the last steel tariffs? - Management indicated that tariffs from China had a limited impact due to sourcing steel from Indian suppliers, with an expected minimal effect of around $200,000 in 2025 [44][45] Question: Can you elaborate on the expected timing of the $5 million in cost savings? - Management explained that the cost savings would come from moving operations to lower-cost countries and improving manufacturing efficiencies, with a focus on yield and efficiency improvements [49][50] Question: Was NOCRA accretive to operating income? - Management stated that NOCRA had a net zero effect in Q4 but expects significant revenue contribution in 2025, projecting $6 million in sales [52][53] Question: Are you seeing any customer trends suggesting capital spending is picking up? - Management observed a continuation of reduced interest rates and increased demand from European customers, contributing to confidence in order intake and demand [58][59] Question: How sustainable are the additional cost savings? - Management indicated that the $1 million savings from shared services would be permanent, while the additional $4 million would come from operational consolidations and efficiency initiatives [60][62] Question: What is the timeline for the $100 million new product opportunity? - Management clarified that the $100 million opportunity is expected to materialize over three to four years, with a design cycle of up to 30 months [70]

This presentation includes discussion of adjusted free cash flow, adjusted gross profit and adjusted operating income and their corresponding margins, as well as adjusted net earnings, EBITDA, adjusted EBITDA, and adjusted net diluted earnings per share. These are financial measures that were not prepared in accordance with generally accepted accounting principles in the United States (non-GAAP measures). Management believes that these non-GAAP measures are useful to investors because each presents what man ...