Financial Data and Key Metrics Changes - First quarter revenue was $71.7 million, a modest decline from the previous quarter, impacted by $2 million in delayed shipments of calc products [4] - Consolidated orders grew 2.7% sequentially, resulting in a book-to-bill ratio of 1.04, marking the second consecutive quarter of order growth [5] - Cash from operations was $5.3 million, with adjusted free cash flow at $3.7 million, indicating solid cash generation despite revenue challenges [5][19] - Adjusted gross margin remained stable at 38.3%, while adjusted operating margin improved to 1.1% from 0.8% in the previous quarter [15][16] - The company reported a net loss of $942,000, or $0.07 per diluted share, but adjusted net earnings were $468,000, or $0.04 per diluted share, compared to $400,000, or $0.03 per diluted share in the prior quarter [17][18] Business Segment Data and Key Metrics Changes - Sensors segment revenue increased by 5.1% sequentially, driven by higher sales in the test and measurement market, with bookings rising 6.7% [7] - Weighing Solutions segment sales increased by 2.7%, but orders declined by 9.3% sequentially, resulting in a book-to-bill ratio of 0.99 [10] - Measurement Systems segment revenue declined by 13.8% sequentially, attributed to slow trends in the global steel market and shipment delays, while orders increased by 17.3% [11][12] Market Data and Key Metrics Changes - Demand in the test and measurement applications, particularly from semiconductor equipment makers, showed positive trends [7] - Orders for consumer applications grew, but demand in avionic military and space markets was soft due to project timing [9] - The company anticipates minor impacts from current tariffs on input costs, expecting to pass most of the tariff impacts onto customers [6] Company Strategy and Development Direction - The company outlined three strategic priorities for 2025: driving business development with new customers, reducing costs and increasing operational efficiencies, and pursuing high-quality acquisitions [13][14] - The company is on track to achieve targeted annual operational cost reductions of $5 million by year-end [14] - Business development initiatives in Q1 resulted in orders of approximately $8 million, indicating progress in driving growth [14] Management's Comments on Operating Environment and Future Outlook - Management noted a modest recovery in order intake, particularly in the test and measurement sector, with expectations for continued demand [22] - The short-term global economic outlook for 2025 is uncertain, but the company remains focused on long-term potential [13] - The company expects net revenues for Q2 2025 to be in the range of $70 million to $76 million [19] Other Important Information - Capital expenditures for 2025 are forecasted to be between $10 million and $12 million, with most spending expected in the second half of the year [19][36] - The company has a strong balance sheet with total outstanding long-term debt of $31.5 million and increased cash position to $83.9 million [19] Q&A Session Summary Question: How does May compare to March in terms of order intake? - Management observed a modest recovery in Q1, mainly from semiconductor customers and humanoid robots, with demand primarily for replenishing current supply chains [22] Question: Has the revenue profile troughed? - Management confirmed that the revenue profile has likely troughed, with expectations for a gradual upslope [24] Question: Can you provide details on the $2 million calc order delay? - The delay is due to operational issues, but there are no expected cancellations as the company supplies custom products [25][26] Question: What is the timing for realizing the $5 million cost savings? - Most savings will come from cost of goods sold, resulting from material cost reductions and process improvements [27] Question: Is the $2 million delayed shipment related to previous delays? - The $2 million delay is specific to calc products and is separate from the previously mentioned $5 million delay related to other product lines [30] Question: Can you provide more details on the humanoid robots opportunity? - The company is working on larger orders for humanoid robots, with sensor values expected between $500 to $1,200 per robot, utilizing tens of sensors [32][33] Question: What is the expected cadence for capital expenditures throughout the year? - Most capital expenditures are expected in the second half of the year, particularly for semiconductor-related equipment [36] Question: What are the thoughts on share repurchases? - The company has not repurchased shares in Q1 due to significant cash taxes associated with repatriating cash from outside the U.S. [41]

Financial Data and Key Metrics Changes - First quarter revenue was $71.7 million, a modest decline from the previous quarter, impacted by $2 million in delayed shipments of calc products [4] - Consolidated orders grew 2.7% sequentially, resulting in a book-to-bill ratio of 1.04, marking the second consecutive quarter of order growth [5] - Cash from operations was $5.3 million, with adjusted free cash flow at $3.7 million [5][19] - Adjusted gross margin remained stable at 38.3%, while adjusted operating margin improved to 1.1% from 0.8% in the previous quarter [15][16] - The company reported a net loss of $942,000, or $0.07 per diluted share, but adjusted net earnings were $468,000, or $0.04 per diluted share, compared to $400,000, or $0.03 per diluted share in the previous quarter [17] Business Segment Performance Changes - **Sensors Segment**: Revenue increased 5.1% sequentially, driven by higher sales in the test and measurement market, with bookings rising 6.7% [7] - **Weighing Solutions Segment**: Revenue increased 2.7% from the previous quarter, but orders declined 9.3% sequentially, resulting in a book-to-bill ratio of 0.99 [9][10] - **Measurement Systems Segment**: Revenue declined 13.8% sequentially due to slow trends in the global steel market and shipment delays, while orders increased 17.3% sequentially, resulting in a book-to-bill ratio of 1.07 [11][12] Market Data and Key Metrics Changes - Demand in the test and measurement applications, particularly from semiconductor equipment makers, showed positive trends [7] - Orders for consumer applications grew sequentially, but demand in avionic military and space markets was soft due to project timing [8] Company Strategy and Development Direction - The company outlined three strategic priorities for 2025: driving business development with new customers, reducing costs and increasing operational efficiencies, and pursuing high-quality acquisitions [13][14] - The company is on track to achieve targeted annual operational cost reductions of $5 million by year-end [14] Management's Comments on Operating Environment and Future Outlook - Management noted a modest recovery in order intake, particularly in test and measurement from semiconductor customers and humanoid robots [21] - The short-term global economic outlook for 2025 is uncertain, but the company remains optimistic about long-term potential [13] Other Important Information - The company expects net revenues for the second quarter to be in the range of $70 million to $76 million [19] - Capital expenditures for 2025 are forecasted to be between $10 million and $12 million, with most spending expected in the second half of the year [18][35] Q&A Session Summary Question: Opinion on incoming order book and inventory trends - Management observed a modest recovery in Q1, mainly in test and measurement from semiconductor customers and humanoid robots, with demand primarily for replenishing current supply chains [21] Question: Revenue profile and gradual upslope - Management confirmed that the revenue profile has troughed and expects a gradual upslope moving forward [22][23] Question: Delay in calc order and cancellation risk - Management acknowledged the significant delay but does not foresee cancellation risks due to the custom nature of the products [24] Question: Timing of $5 million cost savings - Most savings are expected in cost of goods sold, resulting from material cost reductions and process improvements [25][26] Question: Humanoid robots opportunity and sensor usage - Management indicated that each robot may use tens of sensors, with ASPs ranging from $500 to $1,200 per robot [30][31] Question: CapEx ramp throughout the year - Management expects a larger CapEx in the second half of the year due to longer lead times for semiconductor equipment [33][35] Question: Share repurchases and cash location - Management noted that a significant portion of cash is outside the U.S., making share repurchases complicated due to potential tax implications [39][40]

Financial Performance - The company's net loss attributable to VPG stockholders was $0.9 million, or $0.07 per diluted share, compared to net earnings of $5.9 million, or $0.44 per diluted share, in the first fiscal quarter of 2024[3]. - Adjusted net earnings for the first fiscal quarter of 2025 were $0.5 million, or $0.04 per adjusted diluted net earnings per share, down from $5.7 million, or $0.42 per adjusted diluted net earnings per share, in the same period last year[4]. - The company reported a net loss of $955 thousand for the three months ended March 29, 2025, compared to net earnings of $5,832 thousand for the same period in 2024[24]. - For the fiscal quarter ended March 29, 2025, VPG reported a net loss attributable to stockholders of $942,000 compared to a profit of $5,891,000 in the same quarter of the previous year[27]. - EBITDA for the quarter was $3,311,000, resulting in an EBITDA margin of 4.6%, down from 15.8% in the prior year[27]. - Adjusted EBITDA was $5,141,000, with an adjusted EBITDA margin of 7.2%, compared to $12,320,000 and 15.3% respectively in the same quarter last year[27]. - The total adjusted EBITDA for the quarter was $5,141,000, reflecting a decrease from $12,320,000 in the same quarter of the previous year[27]. Revenue and Orders - Total orders for the first fiscal quarter of 2025 were $74.4 million, representing a 2.7% sequential growth and a book-to-bill ratio of 1.04[2]. - Revenue from the Sensors segment was $27.1 million, a decrease of 8.0% year-over-year, but a sequential increase of 5.1%[5]. - The Weighing Solutions segment revenue was $26.4 million, down 8.3% year-over-year, but up 2.7% sequentially[8]. - The Measurement Systems segment revenue decreased 19.0% year-over-year to $18.2 million, and was 13.8% lower sequentially[10]. - The company achieved a book-to-bill ratio above 1.00 for the second consecutive quarter, indicating positive order trends despite market challenges[2]. - The company expects net revenues for the second fiscal quarter of 2025 to be in the range of $70 million to $76 million[12]. Cash Flow and Assets - Cash from operating activities was $5.3 million, with adjusted free cash flow of $3.7 million for the first fiscal quarter of 2025[14]. - Net cash provided by operating activities for the three months ended March 29, 2025, was $5,249 thousand, compared to $6,405 thousand for the same period in 2024, a decrease of 18.06%[24]. - Cash and cash equivalents at the end of the period increased to $83,892 thousand from $79,272 thousand at the beginning of the period, marking an increase of 6.54%[24]. - Total current assets increased to $241,427 thousand as of March 29, 2025, up from $236,949 thousand on December 31, 2024, representing a growth of 1.99%[22]. Profitability and Margins - Gross profit margin for the company was 37.7% in the first fiscal quarter of 2025, down from 43.4% in the first fiscal quarter of 2024[21]. - Gross profit for the three months ended March 29, 2025, was $27,045 thousand, with a gross margin of 37.7%, down from $35,094 thousand and 43.4% in the same period of 2024[25]. - Adjusted gross profit for the Sensors segment was $8,333 thousand for the three months ended March 29, 2025, with a margin of 30.8%, compared to $10,732 thousand and 36.5% in the same period of 2024[26]. Liabilities and Equity - Total liabilities decreased slightly to $128,826 thousand as of March 29, 2025, from $129,075 thousand on December 31, 2024[23]. - Total equity increased to $325,015 thousand as of March 29, 2025, from $321,860 thousand on December 31, 2024, reflecting a growth of 0.36%[23]. Other Expenses - The company incurred $800 thousand in inventory write-offs for obsolescence during the three months ended March 29, 2025[24]. - The company incurred restructuring costs of $395,000 in the latest quarter, compared to $782,000 in the same quarter of the previous year[27]. - Interest expense for the quarter was $550,000, slightly down from $628,000 in the previous year[27]. - Income tax benefit for the quarter was $(332,000), compared to an expense of $2,318,000 in the same quarter last year[27]. - Depreciation expenses were $3,056,000, consistent with $3,016,000 in the same quarter of the previous year[27]. - The company reported amortization expenses of $979,000, up from $927,000 in the same quarter last year[27]. - Foreign currency exchange gains amounted to $972,000, contrasting with a loss of $1,589,000 in the same quarter last year[27].

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].

Core Viewpoint - Vishay Precision Group, Inc. (VPG) will announce its financial results for the first quarter of fiscal 2025 on May 6, 2025, before market opening [1] Financial Results Announcement - The financial results will be released before the market opens on May 6, 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 a specific phone number 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 through a toll-free number or on the "Events" page of the VPG investor relations website for a limited time [3] Company Overview - Vishay Precision Group, Inc. is recognized as a leader in precision measurement and sensing technologies [4] - The company's products, including sensors and measurement systems, aim to enhance customer product performance across various markets [4]

Company Announcement - Vishay Precision Group, Inc. (VPG) will present at the Sidoti March 2025 Small-Cap Virtual Investor Conference on March 19, 2025, at 11:30 a.m. ET [1] - A live and on-demand webcast of VPG's 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 that enhance product performance across various markets [3] - The company's technologies aim to make the world safer, smarter, and more productive [3]

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]

Financial Performance - Fiscal Year 2024 - Net revenues for fiscal year 2024 were $306.5 million, a 13.7% decrease compared to $355.0 million in 2023 [5] - Adjusted gross margin was 41.0% in both 2024 and 2023 [5] - Adjusted net earnings per diluted share decreased to $0.95 in 2024 from $2.17 in 2023 [5] - Adjusted EBITDA decreased to $35.7 million in 2024 from $60.4 million in 2023 [5] - Adjusted free cash flow decreased to $11.3 million in 2024 from $30.8 million in 2023 [5] - End-of-period backlog decreased to $96.2 million in 2024 from $117.3 million in 2023 [5] Financial Performance - Fourth Quarter 2024 - Net revenues for 4Q24 were $72.7 million, a decrease from $89.5 million in 4Q23 and $75.7 million in 3Q24 [7] - Adjusted gross margin was 38.3% in 4Q24, compared to 43.0% in 4Q23 and 40.0% in 3Q24 [7] - Adjusted net earnings per diluted share were $0.03 in 4Q24, compared to $0.61 in 4Q23 and $0.19 in 3Q24 [7] - Adjusted EBITDA was $5.1 million in 4Q24, compared to $16.5 million in 4Q23 and $8.1 million in 3Q24 [7] - Book-to-bill ratio improved to 1.00 in 4Q24 from 0.84 in 4Q23 and 0.91 in 3Q24 [7] Segment Highlights - Fourth Quarter 2024 - Sensors segment: Net revenues decreased to $25.8 million in 4Q24 from $34.3 million in 4Q23, with a book-to-bill ratio of 1.04 [9] - Weighing Solutions segment: Net revenues decreased to $25.7 million in 4Q24 from $30.4 million in 4Q23, with a book-to-bill ratio of 1.12 [11] - Measurement Systems segment: Net revenues decreased to $21.2 million in 4Q24 from $24.8 million in 4Q23, with a book-to-bill ratio of 0.78 [13] Strategic Priorities for 2025 - Continue focusing on initiatives to capture new customers and new market applications [14] - Implementing a minimum of $5 million of additional annual cost reductions in 2025 [17] - Continue to look for attractive, high-quality businesses to add to VPG platform [15]

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 ...