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 ...

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]

Vishay Precision (VPG) came out with quarterly earnings of $0.19 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this precision sensors and systems producer would post earnings of $0.32 per share when it actually produced earnings of $0.31, delivering a surprise of -3.13%.Over the last four quarters, the company has surpassed consensus EPS estimates two times. ...