Vishay Precision Group(VPG) - 2024 Q2 - Quarterly Results

Executive Summary & Highlights This section provides an overview of VPG's key financial performance and strategic initiatives for the second fiscal quarter Second Fiscal Quarter Highlights VPG's Q2 FY2024 revenue decreased by 14.8% year-over-year to $77.4 million, with declines in gross and operating margins, and diluted EPS, while generating positive operating and adjusted free cash flow - 2024 Fiscal Second Quarter Key Financial Metrics (Year-over-Year) | Metric | Q2 2024 | Q2 2023 | YoY Change | | :--------------------------- | :------- | :------- | :------- | | Revenue | $77.4M | $90.8M | -14.8% | | Gross Margin | 41.9% | 42.6% | -0.7pp | | Adjusted Gross Margin* | 41.9% | 42.7% | -0.8pp | | Operating Margin | 7.6% | 13.0% | -5.4pp | | Adjusted Operating Margin* | 7.6% | 13.2% | -5.6pp | | Diluted Net Earnings Per Share | $0.34 | $0.60 | -43.3% | | Adjusted Diluted Net Earnings Per Share* | $0.31 | $0.58 | -46.5% | | EBITDA* | $11.5M | - | - | | EBITDA Margin* | 14.8% | - | - | | Adjusted EBITDA* | $10.2M | - | - | | Adjusted EBITDA Margin* | 13.2% | - | - | | Operating Cash Flow | $7.5M | - | - | | Adjusted Free Cash Flow* | $4.9M | - | - | CEO Commentary & Strategic Focus CEO Ziv Shoshani noted a 4.2% sequential sales decline amid complex market trends, with a slight improvement in book-to-bill ratio to 0.95, as the company focuses on cost reduction and strategic business development for long-term growth - Second quarter sales decreased 4.2% sequentially, reflecting complex market trends[4] - Book-to-bill ratio slightly improved to 0.95, with orders totaling $73.5 million[4] - Demand improved in cyclical markets like steel and consumer, but declined in test and measurement, aerospace, military & space, and industrial markets, primarily due to project timing and cautious distributor ordering[4] - The company remains focused on cost reduction and advancing strategic business development initiatives to accelerate long-term growth[4] Financial Performance Overview This section details VPG's net earnings and diluted earnings per share for the second fiscal quarter and the first six months of fiscal year 2024 Second Fiscal Quarter Financial Results VPG's net earnings attributable to stockholders for Q2 FY2024 were $4.6 million, or $0.34 per diluted share, a decrease from the prior year, with adjusted net earnings and diluted EPS also declining - 2024 Fiscal Second Quarter Net Earnings (Year-over-Year) | Metric | Q2 2024 | Q2 2023 | YoY Change | | :---------------------------------- | :------- | :------- | :------- | | Net Earnings Attributable to VPG Stockholders | $4.6M | $8.2M | -43.9% | | Diluted Earnings Per Share | $0.34 | $0.60 | -43.3% | | Adjusted Net Earnings* | $4.2M | $8.0M | -47.5% | | Adjusted Diluted Earnings Per Share* | $0.31 | $0.58 | -46.5% | Six-Month Financial Results For the six months ended June 29, 2024, VPG's net earnings attributable to stockholders were $10.5 million, or $0.78 per diluted share, a decrease from the prior year, with adjusted net earnings and diluted EPS also declining - 2024 Fiscal First Six Months Net Earnings (Year-over-Year) | Metric | First Six Months 2024 | First Six Months 2023 | YoY Change | | :---------------------------------- | :------------- | :------------- | :------- | | Net Earnings Attributable to VPG Stockholders | $10.5M | $15.2M | -30.9% | | Diluted Earnings Per Share | $0.78 | $1.11 | -29.7% | | Adjusted Net Earnings* | $9.8M | $15.0M | -34.7% | | Adjusted Diluted Earnings Per Share* | $0.73 | $1.10 | -33.6% | Segment Performance This section provides a detailed analysis of the financial performance for VPG's Sensors, Weighing Solutions, and Measurement Systems segments Sensors Segment The Sensors segment reported Q2 FY2024 revenue of $28.9 million, a 20.4% year-over-year and 1.9% sequential decrease, primarily due to reduced precision resistor sales, partially offset by growth in advanced sensors, with gross margin improving sequentially due to efficiency gains - Sensors Segment Performance Overview | Metric | Q2 2024 | Q2 2023 | Q1 2024 | YoY Change | QoQ Change | | :------- | :------- | :------- | :------- | :------- | :------- | | Revenue | $28.9M | $36.3M | $29.4M | -20.4% | -1.9% | | Gross Margin | 38.3% | 40.1% | 36.5% | -1.8pp | +1.8pp | - Revenue decreased year-over-year primarily due to lower precision resistor sales in test and measurement and aerospace, military & space markets, partially offset by increased advanced sensor sales in consumer applications[6] - Gross margin decreased year-over-year due to lower sales volume, partially offset by efficiency improvements and cost reduction initiatives; sequentially, it increased due to efficiency improvements[7] Weighing Solutions Segment The Weighing Solutions segment's Q2 FY2024 revenue was $27.4 million, down 12.2% year-over-year and 4.8% sequentially, mainly due to reduced load cell sales in precision agriculture, medical, and industrial weighing markets, resulting in lower gross margins - Weighing Solutions Segment Performance Overview | Metric | Q2 2024 | Q2 2023 | Q1 2024 | YoY Change | QoQ Change | | :------- | :------- | :------- | :------- | :------- | :------- | | Revenue | $27.4M | $31.3M | $28.8M | -12.2% | -4.8% | | Gross Margin | 37.6% | 38.7% | 39.1% | -1.1pp | -1.5pp | - Revenue decreased year-over-year primarily due to lower load cell sales in precision agriculture and medical applications, and industrial weighing markets; sequentially, it decreased due to lower sales in the transportation market[8] - Gross margin decreased both year-over-year and sequentially primarily due to lower sales volume[8] Measurement Systems Segment The Measurement Systems segment reported Q2 FY2024 revenue of $21.0 million, a 9.6% year-over-year and 6.6% sequential decrease, mainly due to reduced revenue in steel and transportation markets, with adjusted gross margin slightly up year-over-year due to favorable product mix - Measurement Systems Segment Performance Overview | Metric | Q2 2024 | Q2 2023 | Q1 2024 | YoY Change | QoQ Change | | :------------------- | :------- | :------- | :------- | :------- | :------- | | Revenue | $21.0M | $23.3M | $22.5M | -9.6% | -6.6% | | Gross Margin | 52.4% | 51.8% | 58.1% | +0.6pp | -5.7pp | | Adjusted Gross Margin* | 52.4% | 52.0% | 58.1% | +0.4pp | -5.7pp | - Revenue decreased year-over-year primarily due to lower revenue in steel and transportation markets; sequentially, it decreased due to lower DTS product sales in aerospace, military & space and transportation markets[9] - Adjusted gross margin was slightly higher year-over-year due to a favorable product mix; sequentially, it decreased, reflecting lower sales volume and an unfavorable product mix[9] Financial Outlook This section provides VPG's revenue guidance for the upcoming fiscal quarter Near-Term Outlook (Q3 2024 Guidance) VPG anticipates net revenue for the third fiscal quarter of 2024 to be between $70 million and $78 million, based on constant currency rates from Q2 FY2024 - Net revenue for the third fiscal quarter of 2024 is expected to be between $70 million and $78 million (at constant currency rates from Q2 FY2024)[10] Non-GAAP Financial Measures This section defines and explains the non-GAAP financial metrics used by VPG to provide a clearer view of its core operating performance Definitions and Rationale VPG utilizes non-GAAP metrics such as adjusted gross margin, adjusted operating margin, adjusted net earnings, adjusted diluted EPS, EBITDA, adjusted EBITDA, and adjusted free cash flow, which management believes offer investors a better assessment of core operating performance by excluding specific non-core items - Non-GAAP metrics include: adjusted gross margin, adjusted operating margin, adjusted net earnings, adjusted diluted net earnings per share, EBITDA, adjusted EBITDA, and adjusted free cash flow[11] - Management believes these non-GAAP metrics help investors assess the company's core operating performance and trends by excluding specific items unrelated to core business, such as acquisition purchase accounting adjustments, restructuring and severance costs, and foreign exchange gains and losses[12] Company Information & Disclosures This section provides details on VPG's upcoming conference call, an overview of the company, and important forward-looking statements Conference Call Details VPG will host a conference call on August 6, 2024, at 9:00 AM ET to discuss its Q2 FY2024 results, with access available via phone or the company's investor relations website - The conference call will be held on August 6, 2024, at 9:00 AM ET[13] - Investors can participate by dialing 1-833-470-1428 (domestic) or +1-404-975-4839 (international), passcode 707756, or by visiting ir.vpgsensors.com[13] - A replay of the call will be available approximately one hour after the conference, accessible via phone or the website[13] About Vishay Precision Group (VPG) Vishay Precision Group, Inc. (VPG) is a leader in precision measurement and sensing technologies, enhancing customer product performance across diverse markets through its sensors, weighing solutions, and measurement systems, aiming for a safer, smarter, and more efficient world - VPG is a leader in precision measurement and sensing technologies[14] - The company optimizes and enhances customer product performance across a wide range of markets through its sensors, weighing solutions, and measurement systems[14] - VPG is committed to making the world safer, smarter, and more efficient[14] Forward-Looking Statements This report contains forward-looking statements subject to risks, uncertainties, and contingencies that could cause actual results to differ materially from expectations, with no obligation for the company to update or revise them - The report contains forward-looking statements, involving risks, uncertainties, and contingencies that could cause actual results to differ materially from expectations[15] - Risk factors include: general business and economic conditions, inflation, global labor and supply chain challenges, acquisition integration difficulties, new product development challenges, competition and technological changes, foreign currency exchange rate fluctuations, geopolitical and health instability, military conflicts, difficulties in implementing cost reduction strategies, export control compliance issues, changes in tariffs and trade regulations, and the impact of the COVID-19 pandemic[16] - The company undertakes no obligation to publicly update or revise any forward-looking statements[16] Consolidated Financial Statements This section presents VPG's unaudited consolidated condensed financial statements, including statements of operations, balance sheets, and cash flows Consolidated Condensed Statements of Operations (Three Months) This section provides VPG's consolidated condensed statements of operations for the three months ended June 29, 2024, and July 1, 2023, detailing net revenue, gross profit, operating income, net earnings, and earnings per share - VISHAY PRECISION GROUP, INC. Consolidated Condensed Statements of Operations (Unaudited - In thousands of US Dollars, except per share amounts) | | June 29, 2024 | July 1, 2023 | |:----------------------------------------------------------|:--------------|:-------------| | Net Revenue | $77,359 | $90,802 | | Cost of products sold | 44,952 | 52,090 | | Gross Profit | 32,407 | 38,712 | | Gross Margin | 41.9 % | 42.6 % | | Selling, general and administrative expenses | 26,501 | 26,755 | | Restructuring costs | — | 162 | | Operating Income | 5,906 | 11,795 | | Operating Margin | 7.6 % | 13.0 % | | Other income (expense): | | | | Interest expense | (649) | (1,079) | | Other | 1,701 | 1,019 | | Other income (expense) | 1,052 | (60) | | Earnings Before Income Taxes | 6,958 | 11,735 | | Income tax expense | 2,316 | 3,384 | | Net Earnings | 4,642 | 8,351 | | Less: Net earnings attributable to non-controlling interests | 39 | 115 | | Net Earnings Attributable to VPG Stockholders | $4,603 | $8,236 | | Basic earnings per share attributable to VPG stockholders | $0.34 | $0.61 | | Diluted earnings per share attributable to VPG stockholders | $0.34 | $0.60 | | Weighted average common shares outstanding - Basic | 13,348 | 13,601 | | Weighted average common shares outstanding - Diluted | 13,389 | 13,670 | Consolidated Condensed Statements of Operations (Six Months) This section provides VPG's consolidated condensed statements of operations for the six months ended June 29, 2024, and July 1, 2023, detailing net revenue, gross profit, operating income, net earnings, and earnings per share - VISHAY PRECISION GROUP, INC. Consolidated Condensed Statements of Operations (Unaudited - In thousands of US Dollars, except per share amounts) | | June 29, 2024 | July 1, 2023 | |:----------------------------------------------------------|:--------------|:-------------| | Net Revenue | $158,142 | $179,666 | | Cost of products sold | 90,641 | 103,755 | | Gross Profit | 67,501 | 75,911 | | Gross Margin | 42.7 % | 42.3 % | | Selling, general and administrative expenses | 53,895 | 53,914 | | Restructuring costs | 782 | 278 | | Operating Income | 12,824 | 21,719 | | Operating Margin | 8.1 % | 12.1 % | | Other income (expense): | | | | Interest expense | (1,277) | (2,076) | | Other | 3,561 | 1,294 | | Other income (expense) | 2,284 | (782) | | Earnings Before Income Taxes | 15,108 | 20,937 | | Income tax expense | 4,634 | 5,604 | | Net Earnings | 10,474 | 15,333 | | Less: Net earnings attributable to non-controlling interests | (20) | 133 | | Net Earnings Attributable to VPG Stockholders | $10,494 | $15,200 | | Basic earnings per share attributable to VPG stockholders | $0.78 | $1.12 | | Diluted earnings per share attributable to VPG stockholders | $0.78 | $1.11 | | Weighted average common shares outstanding - Basic | 13,376 | 13,593 | | Weighted average common shares outstanding - Diluted | 13,428 | 13,661 | Consolidated Condensed Balance Sheets This section presents VPG's unaudited consolidated condensed balance sheets as of June 29, 2024, and December 31, 2023, outlining the company's assets, liabilities, and stockholders' equity - VISHAY PRECISION GROUP, INC. Consolidated Condensed Balance Sheets (Unaudited - In thousands of US Dollars) | | June 29, 2024 | December 31, 2023 | |:----------------------------------------------------|:--------------|:------------------| | Assets | | | | Current Assets: | | | | Cash and cash equivalents | $84,128 | $83,965 | | Accounts receivable, net | 49,926 | 56,438 | | Inventories: | | | | Raw materials | 35,799 | 33,973 | | Work-in-process | 28,549 | 26,594 | | Finished goods | 25,748 | 27,572 | | Inventories, net | 90,096 | 88,139 | | Prepaid expenses and other current assets | 17,007 | 14,520 | | Total Current Assets | 241,157 | 243,062 | | Property, Plant and Equipment: | | | | Land | 4,121 | 4,154 | | Buildings and improvements | 72,406 | 72,952 | | Machinery and equipment | 131,392 | 131,738 | | Software | 9,945 | 9,619 | | Construction in progress | 10,802 | 11,379 | | Accumulated depreciation | (141,485) | (139,206) | | Property, Plant and Equipment, net | 87,181 | 90,636 | | Goodwill | 45,491 | 45,734 | | Intangible assets, net | 42,643 | 44,634 | | Operating lease right-of-use assets | 26,084 | 26,953 | | Other assets | 20,233 | 20,547 | | Total Assets | $462,789 | $471,566 | | Liabilities and Equity | | | | Current Liabilities: | | | | Accounts payable | $11,284 | $11,698 | | Accrued payroll and related expenses | 17,649 | 18,971 | | Other accrued expenses | 21,541 | 22,427 | | Income taxes payable | 3,704 | 4,524 | | Current portion of operating lease liabilities | 4,089 | 4,004 | | Current portion of long-term debt | 31,914 | — | | Total Current Liabilities | 90,181 | 61,624 | | Long-term debt | — | 31,856 | | Deferred income taxes | 3,509 | 3,490 | | Operating lease liabilities | 21,297 | 22,625 | | Other liabilities | 13,888 | 14,770 | | Accrued pension and other postretirement costs | 6,880 | 7,276 | | Total Liabilities | 135,755 | 141,641 | | Equity: | | | | Common stock | 1,336 | 1,330 | | Class B convertible common stock | 103 | 103 | | Treasury stock | (23,388) | (17,460) | | Additional paid-in capital | 202,765 | 202,672 | | Retained earnings | 192,560 | 182,066 | | Accumulated other comprehensive loss | (46,365) | (38,869) | | Total VPG Stockholders' Equity | 327,011 | 329,842 | | Non-controlling interests | 23 | 83 | | Total Equity | 327,034 | 329,925 | | Total Liabilities and Equity | $462,789 | $471,566 | Consolidated Condensed Statements of Cash Flows This section presents VPG's unaudited consolidated condensed statements of cash flows for the six months ended June 29, 2024, and July 1, 2023, detailing cash inflows and outflows from operating, investing, and financing activities - VISHAY PRECISION GROUP, INC. Consolidated Condensed Statements of Cash Flows (Unaudited - In thousands of US Dollars) | | June 29, 2024 | July 1, 2023 | |:------------------------------------------------------------------|:--------------|:-------------| | Operating Activities | | | | Net earnings | $10,474 | $15,333 | | Adjustments to reconcile net earnings to net cash provided by operating activities: | | | | Depreciation and amortization | 7,859 | 7,725 | | Loss (gain) on disposal of property, plant and equipment | (155) | 28 | | Share-based compensation expense | 953 | 1,229 | | Inventory write-downs | 1,163 | 1,049 | | Deferred income taxes | 483 | 507 | | Foreign currency impact and other items | (3,602) | (1,557) | | Net changes in operating assets and liabilities: | | | | Accounts receivable | 4,925 | (956) | | Inventories | (4,155) | (5,697) | | Prepaid expenses and other current assets | (2,733) | 2,726 | | Accounts payable | 1,081 | (684) | | Other current liabilities | (1,293) | (593) | | Other non-current assets and liabilities, net | (841) | (292) | | Accrued pension and other postretirement costs, net | (289) | (606) | | Net Cash Provided by Operating Activities | 13,870 | 18,212 | | Investing Activities | | | | Capital expenditures | (5,178) | (6,874) | | Proceeds from disposal of property, plant and equipment | 347 | 12 | | Net Cash Used in Investing Activities | (4,831) | (6,862) | | Financing Activities | | | | Purchases of treasury stock | (5,887) | (420) | | Distributions to non-controlling interests | (40) | (46) | | Taxes paid related to net share settlement of equity awards | (854) | (825) | | Net Cash Used in Financing Activities | (6,781) | (1,291) | | Effect of exchange rate changes on cash and cash equivalents | (2,095) | (100) | | Net increase in cash and cash equivalents | 163 | 9,959 | | Cash and cash equivalents at beginning of period | 83,965 | 88,562 | | Cash and cash equivalents at end of period | $84,128 | $98,521 | | Supplemental disclosure of investing activities: | | | | Capital expenditures accrued but not yet paid | $972 | $1,118 | | Supplemental disclosure of financing activities: | | | | Net stock repurchase excise tax accrued but not yet paid | 41 | — | Reconciliation of Non-GAAP Measures This section provides reconciliations of VPG's non-GAAP financial measures to their most directly comparable GAAP measures Adjusted Financial Performance (Three Months) This section provides reconciliation tables for VPG's adjusted gross profit, operating income, net earnings attributable to VPG stockholders, and diluted earnings per share for the three months ended June 29, 2024, and July 1, 2023, excluding acquisition accounting adjustments, restructuring costs, foreign exchange gains and losses, and related tax impacts - VISHAY PRECISION GROUP, INC. Reconciliation of Consolidated Adjusted Gross Profit, Operating Income, Net Earnings Attributable to VPG Stockholders and Diluted Earnings Per Share (Unaudited - In thousands of US Dollars) | | Gross Profit | Operating Income | Net Earnings Attributable to VPG Stockholders | Diluted Earnings Per Share | |:----------------------------------------------------------|:-------------|:-----------------|:----------------------------------------------|:---------------------------| | Three Months Ended | June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | | As Reported - GAAP | $32,407 | $38,712 | $5,906 | $11,795 | $4,603 | $8,236 | $0.34 | $0.60 | | As Reported - GAAP Margin | 41.9 % | 42.6 % | 7.6 % | 13.0 % | | | | | | Acquisition purchase accounting adjustments | — | 41 | — | 41 | — | 41 | — | — | | Restructuring costs | — | — | — | 162 | — | 162 | — | 0.01 | | Foreign exchange gains | — | — | — | — | (1,289) | (794) | (0.10) | (0.05) | | Less: Tax impact of reconciling items and discrete tax items | — | — | — | — | (836) | (312) | (0.06) | (0.02) | | Adjusted - Non-GAAP | $32,407 | $38,753 | $5,906 | $11,998 | $4,150 | $7,957 | $0.31 | $0.58 | | Adjusted - Non-GAAP Margin | 41.9 % | 42.7 % | 7.6 % | 13.2 % | | | | | Adjusted Financial Performance (Six Months) This section provides reconciliation tables for VPG's adjusted gross profit, operating income, net earnings attributable to VPG stockholders, and diluted earnings per share for the six months ended June 29, 2024, and July 1, 2023, excluding acquisition accounting adjustments, restructuring costs, severance, foreign exchange gains and losses, and related tax impacts - VISHAY PRECISION GROUP, INC. Reconciliation of Consolidated Adjusted Gross Profit, Operating Income, Net Earnings Attributable to VPG Stockholders and Diluted Earnings Per Share (Unaudited - In thousands of US Dollars) | | Gross Profit | Operating Income | Net Earnings Attributable to VPG Stockholders | Diluted Earnings Per Share | |:----------------------------------------------------------|:-------------|:-----------------|:----------------------------------------------|:---------------------------| | Six Fiscal Months Ended | June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | | As Reported - GAAP | $67,501 | $75,911 | $12,824 | $21,719 | $10,494 | $15,200 | $0.78 | $1.11 | | As Reported - GAAP Margin | 42.7 % | 42.3 % | 8.1 % | 12.1 % | | | | | | Acquisition purchase accounting adjustments | — | 90 | — | 90 | — | 90 | — | 0.01 | | Restructuring costs | — | — | 782 | 278 | 782 | 278 | 0.06 | 0.02 | | Severance costs | — | — | 347 | — | 347 | — | 0.03 | — | | Foreign exchange gains | — | — | — | — | (2,878) | (856) | (0.21) | (0.06) | | Less: Tax impact of reconciling items and discrete tax items | — | — | — | — | (1,074) | (280) | (0.08) | (0.02) | | Adjusted - Non-GAAP | $67,501 | $76,001 | $13,953 | $22,087 | $9,819 | $14,992 | $0.73 | $1.10 | | Adjusted - Non-GAAP Margin | 42.7 % | 42.3 % | 8.8 % | 12.3 % | | | | | Adjusted Gross Profit by Segment This section provides reconciliation tables for VPG's adjusted gross profit and gross margin by segment (Sensors, Weighing Solutions, Measurement Systems) for the periods ended June 29, 2024, July 1, 2023, and March 30, 2024 - VISHAY PRECISION GROUP, INC. Reconciliation of Adjusted Gross Profit by Segment (Unaudited - In thousands of US Dollars) | | Sensors | Weighing Solutions | Measurement Systems | |:-------------------------------------------------|:----------|:-------------------|:--------------------| | Ended | June 29, 2024 | July 1, 2023 | March 30, 2024 | June 29, 2024 | July 1, 2023 | March 30, 2024 | June 29, 2024 | July 1, 2023 | March 30, 2024 | | As Reported - GAAP | $11,066 | $14,549 | $10,732 | $10,310 | $12,107 | $11,266 | $11,031 | $12,056 | $13,094 | | As Reported - GAAP Margin | 38.3 % | 40.1 % | 36.5 % | 37.6 % | 38.7 % | 39.1 % | 52.4 % | 51.8 % | 58.1 % | | Acquisition purchase accounting adjustments | — | — | — | — | — | — | — | 41 | — | | Adjusted - Non-GAAP | $11,066 | $14,549 | $10,732 | $10,310 | $12,107 | $11,266 | $11,031 | $12,097 | $13,094 | | Adjusted - Non-GAAP Margin | 38.3 % | 40.1 % | 36.5 % | 37.6 % | 38.7 % | 39.1 % | 52.4 % | 52.0 % | 58.1 % | Adjusted EBITDA This section provides reconciliation tables for VPG's adjusted EBITDA and EBITDA margin for the periods ended June 29, 2024, July 1, 2023, and March 30, 2024, excluding acquisition accounting adjustments, restructuring costs, and foreign exchange gains and losses - VISHAY PRECISION GROUP, INC. Reconciliation of Adjusted EBITDA (Unaudited - In thousands of US Dollars) | | June 29, 2024 | July 1, 2023 | March 30, 2024 | |:------------------------------------------|:--------------|:-------------|:---------------| | Net Earnings Attributable to VPG Stockholders | $4,603 | $8,236 | $5,891 | | Interest expense | 649 | 1,079 | 628 | | Income tax expense | 2,316 | 3,384 | 2,318 | | Depreciation | 2,992 | 2,933 | 3,016 | | Amortization | 924 | 934 | 927 | | EBITDA | 11,484 | $16,566 | $12,780 | | EBITDA Margin | 14.8 % | 18.2 % | 15.8 % | | Acquisition purchase accounting adjustments | — | 41 | — | | Restructuring costs | — | 162 | 782 | | Foreign exchange gains | (1,289) | (794) | (1,589) | | Adjusted EBITDA | $10,196 | $15,975 | $12,320 | | Adjusted EBITDA Margin | 13.2 % | 17.6 % | 15.3 % |