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 ...

Vishay Precision Group (VPG) Q4 2024 Earnings Call February 12, 2025 09:00 AM ET Company Participants Steve Cantor - Senior Director of Investor RelationsZiv Shoshani - CEO, President & DirectorWilliam Clancy - Executive VP, CFO & Corporate Secretary Conference Call Participants John Franzreb - Senior Equity AnalystGriffin Boss - Equity Research Analyst Operator Good morning, everyone, and welcome to the CPG Fourth Quarter Fiscal twenty twenty four Earnings Call. My name is Ezra, and I will be your coordina ...

Financial Performance - In Q4 2024, VPG reported net earnings of $0.8 million, or $0.06 per diluted share, down from $4.2 million, or $0.31 per diluted share in Q4 2023[5]. - For the fiscal year 2024, revenues were $306.5 million, a decrease of 13.7% year-over-year, with a gross profit margin of 41.0% compared to 42.3% in 2023[6]. - Adjusted net earnings for Q4 2024 were $0.4 million, or $0.03 per diluted share, compared to $8.2 million, or $0.61 per diluted share in the same period last year[7]. - Net revenues for the fiscal quarter ended December 31, 2024, decreased to $72,653 thousand from $89,528 thousand in the same quarter of 2023, representing a decline of 18.8%[25]. - Gross profit margin for the fiscal quarter ended December 31, 2024, was 38.2%, down from 43.0% in the prior year quarter[25]. - Operating income for the fiscal year ended December 31, 2024, was $16,864 thousand, a decrease of 59.8% compared to $41,954 thousand in 2023[26]. - Net earnings attributable to VPG stockholders for the fiscal year ended December 31, 2024, were $9,911 thousand, down from $25,707 thousand in 2023, reflecting a decline of 61.4%[26]. - Basic earnings per share attributable to VPG stockholders for the fiscal year ended December 31, 2024, decreased to $0.74 from $1.89 in the previous year, a drop of 60.7%[26]. - The company reported a decrease in trade accounts payable from $11,698 in 2023 to $9,890 in 2024, a decline of about 15.5%[28]. - The diluted earnings per share for the year ended December 31, 2024, was $0.95, a decrease of 56.2% from $2.17 in 2023[30]. Segment Performance - The Sensors segment revenues in Q4 2024 were $25.8 million, down 24.8% from $34.3 million in Q4 2023, primarily due to lower sales in the Test & Measurement market[9]. - The Weighing Solutions segment revenues in Q4 2024 were $25.7 million, a decrease of 15.4% from $30.4 million in the prior year, but increased 2.2% sequentially[11]. - The Measurement Systems segment revenues in Q4 2024 were $21.2 million, down 14.8% from $24.8 million in the prior year, attributed to lower sales of DSI and DTS products[13]. Cost and Expenses - The company faced approximately $700 thousand in one-time costs in Q4 2024, mainly related to R&D projects and operational fixed costs[5]. - Selling, general, and administrative expenses for the fiscal year ended December 31, 2024, increased slightly to $107,505 thousand from $106,828 thousand in 2023[26]. - Restructuring costs for the fiscal year ended December 31, 2024, were $1,062 thousand, compared to $1,560 thousand in 2023, indicating a reduction of 32.0%[26]. - Interest expense for the fiscal year ended December 31, 2024, was $2,512 thousand, down from $3,974 thousand in 2023, a decrease of 36.8%[26]. Cash Flow and Capital Expenditures - Total cash provided by operating activities for the year ended December 31, 2024, was $19,815, a decline of 56.7% from $45,893 in 2023[29]. - Capital expenditures for the year ended December 31, 2024, were $9,163, a reduction of 39.5% compared to $15,154 in 2023[29]. - The company reported a net cash used in financing activities of $9,399 for the year ended December 31, 2024, compared to $35,935 in 2023[29]. Balance Sheet Highlights - Total current assets decreased from $236,949 in 2023 to $224,243 in 2024, a decline of approximately 5.4%[27]. - Total current liabilities decreased from $61,624 in 2023 to $53,039 in 2024, a reduction of about 13.9%[28]. - Total liabilities decreased from $141,641 in 2023 to $129,075 in 2024, representing a decrease of approximately 8.9%[28]. - Retained earnings increased from $182,066 in 2023 to $191,977 in 2024, an increase of about 5.0%[28]. - Total stockholders' equity decreased from $329,842 in 2023 to $321,967 in 2024, a decline of approximately 2.4%[28]. - Long-term debt slightly decreased from $31,856 in 2023 to $31,441 in 2024, a reduction of about 1.3%[28]. - The accumulated other comprehensive loss increased from $38,869 in 2023 to $48,897 in 2024, an increase of approximately 25.8%[28]. Future Outlook - VPG expects Q1 2025 net revenues to be in the range of $70 million to $76 million at constant Q4 2024 exchange rates[15]. - The integration of Nokra, acquired on September 30, 2024, is on track, supporting VPG's strategy for acquiring high-quality businesses[5].

Core Insights - Dynamic Systems Inc. (DSI) has launched a new Ultra High Temperature Ceramic and Composite (UHTC) system for testing non-conductive materials at temperatures exceeding 2000°C, marking a significant advancement in materials testing technology [1][3]. Company Overview - DSI is a subsidiary of Vishay Precision Group Inc. (VPG) and is recognized as a global leader in materials testing technology, particularly known for its Gleeble series [6][7]. Collaboration and Impact - DSI has partnered with The University of Alabama for beta testing the UHTC system, which is expected to enhance ceramic development across various applications, including energy and aerospace [2][3][5]. Key Features of the UHTC System - **Extreme Temperature Capabilities**: Tests ceramics at temperatures greater than 2000°C, supporting industries like aerospace, defense, and energy [8]. - **Fast Heating and Cooling Rates**: Reduces time between tests, outperforming traditional furnace-based testing methods [8]. - **High Throughput Testing**: Capable of conducting over 1 test per hour and more than 8 tests per day, optimizing research productivity [8]. - **User-Friendly Interface**: Simplifies operation, data analysis, and reporting [8]. - **ASTM Compliance**: Adheres to ASTM standards, ensuring results meet industry benchmarks for accuracy and reliability [8].

Core Viewpoint - Vishay Precision Group, Inc. will announce its financial results for Q4 and the full year of fiscal 2024 on February 12, 2025, before market opening [1] Financial Results Announcement - The financial results will be released before the market opens on February 12, 2025 [1] - A conference call will be hosted by CEO Ziv Shoshani and CFO Bill Clancy at 9:00 a.m. U.S. eastern time on the same day [2] - Interested parties can access the conference call via phone or through a live webcast on the VPG investor relations website [2] Webcast Replay - A replay of the conference call will be available approximately one hour after its completion [3] - The replay can be accessed via phone or on the VPG investor relations website for a limited time [3] Company Overview - Vishay Precision Group, Inc. specializes in precision measurement and sensing technologies [4] - The company's products aim to optimize and enhance customer product performance across various markets [4] - VPG is committed to making the world safer, smarter, and more productive [4]

Core Insights - Vishay Precision Group, Inc. (VPG) will present at the 27th Annual Needham Growth Investor Conference on January 15, 2025, at 8:00 a.m. ET [1] - A live and on-demand webcast of the presentation will be available to the public [2] Company Overview - VPG is a leader in precision measurement and sensing technologies, providing sensors, weighing solutions, and measurement systems [2] - The company's products aim to optimize and enhance customer performance across various markets, contributing to a safer, smarter, and more productive world [2]

Group 1 - Vishay Precision Group, Inc. has appointed Nava Swersky Sofer as an independent member of its Board of Directors, effective immediately [1] - Saul Reibstein, Chairman of the Board, expressed that Nava's experience in technology and innovation will bring valuable perspective to VPG [2] - Nava Sofer is a recognized strategic consultant and venture capitalist with extensive experience in innovation and technology commercialization [2] Group 2 - Ms. Sofer has lectured on innovation and entrepreneurship globally and has consulted for various governmental organizations and financial institutions since 2009 [2] - She served as president and CEO of Yissum Hebrew University of Jerusalem Technology Transfer from 2005 to 2009, managing the university's intellectual property [2] - Her previous roles include being a partner at venture capital firms in California and Israel from 1995 to 2005 and serving as vice president at Novartis from 1991 to 1996 [2] Group 3 - Vishay Precision Group is a leader in precision measurement and sensing technologies, enhancing product performance across various markets [3] - The company's solutions aim to make the world safer, smarter, and more productive [3]

Group 1 - Vishay Precision Group, Inc. (VPG) will present at two investor conferences in December 2024, including the Sidoti December 2024 Small-Cap Investor Virtual Conference on December 5 and the 13th Annual NYC Summit on December 17 [1] - The Sidoti conference will feature a live and on-demand webcast of VPG's presentation, accessible via a provided link and VPG's website [1] - The NYC Summit will consist of small group meetings with company management teams, featuring 17 technology companies [1] Group 2 - VPG is recognized as a leader in precision measurement and sensing technologies, providing solutions that enhance product performance across various markets [3] - The company aims to make the world safer, smarter, and more productive through its sensors, weighing solutions, and measurement systems [3]

Financial Data and Key Metrics Changes - Total sales for Q3 2024 were $75.7 million, above the mid-range of guidance, with a book-to-bill ratio of 0.91 as orders declined to $68.6 million from $73.5 million in Q2 [7][21] - Gross margin decreased to 40% from 41.9% in Q2, primarily due to labor inefficiencies and lower revenues [20] - Adjusted net earnings per diluted share were $0.19, down from $0.31 in Q2, with a loss per diluted share of $0.10 reported [21][22] Business Segment Performance - **Sensors Segment**: Revenue was $28.2 million, down 13.3% year-over-year and 2.3% sequentially, with a book-to-bill ratio of 0.89 [10][11] - **Weighing Solutions Segment**: Revenue was $25.2 million, a decline of 13.1% year-over-year and 8.3% sequentially, with a book-to-bill ratio of 1.0 [13] - **Measurement Systems Segment**: Revenue was $22.4 million, down 8.2% year-over-year but up 6.2% sequentially, with a book-to-bill ratio of 0.82 [15][16] Market Data and Key Metrics Changes - Orders in cyclical markets like steel and consumer showed a decline, while Test and Measurement and AMS saw higher orders but remained below peak levels [7][10] - The semiconductor market remains cyclically soft, impacting order intake [11][16] - Modest improvement was noted in precision agriculture, while construction and medical markets remained slow [14] Company Strategy and Development Direction - The company is focusing on broadening its funnel of new business opportunities and streamlining operations, particularly in the Sensors and Weighing Solutions segments [6][8] - The acquisition of Nokra is expected to expand product offerings in the steel market and is anticipated to be immediately accretive [17][18] - The company aims to leverage existing sales channels to grow Nokra revenues significantly in 2025 [31][32] Management's Comments on Operating Environment and Future Outlook - Management noted a mixed business environment with higher demand in some markets offset by weakness in others, and expects revenues in Q4 to be in the range of $70 million to $78 million [25][26] - There is cautious optimism regarding a recovery in capital spending, particularly in the precision agriculture sector [36][37] - Management highlighted ongoing efforts to reduce operational costs through relocating production to lower labor cost regions [38][39] Other Important Information - The company released its initial Sustainability Report, marking a significant milestone in its sustainability journey [19] - Cash and cash equivalents at the end of Q3 were $81.1 million, with total debt of $31.6 million [25] Q&A Session Summary Question: Labor inefficiencies in the Sensors segment - Management confirmed that significant improvements in labor inefficiencies were observed at the beginning of Q4 [27] Question: Free cash flow and DSOs - Management indicated that the increase in Days Sales Outstanding (DSOs) was likely a one-time occurrence due to sales timing and one-time tax payments [28] Question: New projects in humanoid robots - Management expects revenues from the second humanoid robot customer to be similar in size to the first, with significant revenue growth anticipated for 2025 [29][30] Question: M&A growth expectations from Nokra - Management expects mid-single digit revenue growth for Nokra in 2025, primarily driven by integration into the KELK business [31] Question: Changes in end market dynamics - Management noted a mixed environment with some optimism in precision agriculture, while the semiconductor market remains cautious [36] Question: Operational cost reduction strategies - Management is relocating production to India to achieve multimillion dollar savings [39] Question: Future M&A targets - Management is looking at both smaller, highly profitable businesses and larger revenue contributions for future M&A opportunities [42]