Summary of Vishay Precision Group (VPG) FY Conference Company Overview - **Company Name**: Vishay Precision Group (VPG) - **Ticker Symbol**: VPG - **Industry**: Sensor manufacturing - **Public Company Since**: 2010 - **Global Presence**: Manufacturing facilities in India (largest), Israel, the US, Japan, China, and Europe [3][2] Core Business Segments - **Segments**: - Sensors - Weighing Solutions - Measurement Systems - **Growth Projections**: - Sensors: Mid to high single digits growth with gross margins in the low 40% [5] - Weighing Solutions: Growth aligned with GDP, gross margins in the high 30s [5] - Measurement Systems: Mid single digits growth with gross margins around 55% [5] Financial Performance and Goals - **Target Growth**: Low teens growth combining organic and inorganic growth, aiming for 45% gross margin, 18% operating margin, and 22% EBITDA margin [6][7] - **Recent Performance**: Achieved record gross margin on $80 million revenue in Q1 FY 2024, indicating improved operational efficiency [8] - **Capital Expenditures**: Over $53 million invested in manufacturing to enhance capabilities and reduce costs [15] Market Trends and Opportunities - **Key Trends**: Electrification, digital transformation, industrial automation, and defense technology driving demand for sensors [11] - **Emerging Applications**: - Robotics (industrial and medical) - Precision agriculture - Consumer electronics - Data center fiber optics [12][14] Business Development Initiatives - **Sales Growth**: Recorded $17 million in sales from new business development initiatives in 2024, with a target of $30 million this year and $100 million in the next few years [20] - **Acquisition Strategy**: Positioned for transformational acquisitions with a focus on companies generating $10 to $20 million in EBITDA [17] Humanoid Robots Engagement - **Current Projects**: Collaborating with two humanoid robot manufacturers, generating $2.5 million in pre-production business [24] - **Market Potential**: Humanoid robots represent a nascent industry with significant growth potential, driven by labor availability and industrial automation needs [21][22] - **Sensor Applications**: Developing torque and tactile sensors critical for humanoid robot functionality, with potential revenue of $20 to $30 million from these projects [26][29] Conclusion - **Strategic Focus**: VPG is leveraging its manufacturing investments and operational excellence to pursue higher volume opportunities and expand beyond niche markets, aiming to deliver significant value to shareholders [33]

Core Insights - Vishay Precision Group, Inc. (VPG) will present at the East Coast IDEAS Investor Conference on June 12, 2025, at the Westin Times Square in New York, NY [1] - The presentation is scheduled to start at 1:20 p.m. ET, with a live and on-demand webcast available to the public [2] - IDEAS Investor Conferences aim to provide independent venues for quality companies to present their investment merits to investment professionals, distinguishing themselves from traditional bank-sponsored events [3] Company Overview - VPG is a leader in precision measurement and sensing technologies, offering sensors, weighing solutions, and measurement systems that enhance product performance across various markets [4] - The company's technologies contribute to making the world safer, smarter, and more productive [4]

Financial Performance - VPG's consolidated revenue for 1Q25 was $71.7 million[7], a slight decrease sequentially, impacted by approximately $2 million in delayed shipments at KELK[10] - Orders for 1Q25 reached $74.4 million[9], a 2.7% increase from 4Q24, marking the second consecutive quarter of order growth[10] - The book-to-bill ratio improved sequentially to 1.04x, with Sensors and Measurement Systems segments exceeding 1.00[9, 10] - Cash from Operations was $5.3 million and Adjusted Free Cash Flow was $3.7 million[10] - The adjusted gross profit margin remained comparable at 38.3% despite lower revenue, reflecting cost reduction programs offset by unfavorable product mix and foreign currency rates[31] - Net loss attributable to VPG shareholders was $0.9 million, or $0.07 per diluted share, while adjusted net earnings were $0.5 million, or $0.04 per diluted share[33] Segment Performance - Sensors segment revenue for 1Q25 was $27.1 million[13], a 5.1% sequential increase, driven by higher sales of strain gages and precision resistors[16] - Sensors segment bookings grew 6.7% sequentially to $28.7 million[15], the highest level in 5 quarters, with a book-to-bill ratio of 1.06[16] - Weighing Solutions segment revenue for 1Q25 was $26.4 million[19], a 2.7% sequential increase but an 8.3% decrease from the prior year[22] - Measurement Systems segment revenue for 1Q25 was $18.2 million[24], a 13.8% decrease from 4Q24 and a 19.0% decrease from the prior year, impacted by project timing and cyclical softness in the Steel market[27]

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]

Company Performance - Vishay Precision (VPG) reported quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.05 per share, and down from $0.42 per share a year ago, representing an earnings surprise of -20% [1] - The company posted revenues of $71.74 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.86%, and down from $80.78 million year-over-year [2] - Over the last four quarters, Vishay has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Market Outlook - Vishay shares have increased by approximately 6.5% since the beginning of the year, contrasting with the S&P 500's decline of -3.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.12 on revenues of $74.3 million, and for the current fiscal year, it is $0.90 on revenues of $308.66 million [7] Industry Context - The Electronics - Miscellaneous Components industry, to which Vishay belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5] - The unfavorable trend in estimate revisions for Vishay has resulted in a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6]

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]