VPG - Earnings call transcript Q1 2018 | Vishay Precision Group, Inc.

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Operator

Good morning, and welcome to the VPG First Quarter Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Reynee Tung. Please go ahead.

Reynee Tung

Thank you, operator. everyone. morning, Good XXXX VPG's Earnings Call. Conference Welcome First to Quarter made conference comments call An participants audio including the be will or recording today, of any contribute. may that questions release, have By all through it important the received and contains read we it the time now, to hope should earnings information. you as taken you've press

the An for find be on available will U.S. it, reconciliations website. a You be law. recording time VPG relevant can can on VPG's protected international and of call the Internet content audio non-GAAP including website limited and copyright VPG by at this vpgsensors.com. owned is The on and accessed conference is by

not may Reform call, or forward-looking Securities we written permission. call, remarks perform in results, display may of or performance are a XXXX any the may in copies make statements part, contents governed without Private adapt, other achievements this and this of out whole by of the transmit, Act. You the by today. any conference Actual provisions or conference recordings may than not indicated Harbor make Today's turn significantly or Litigation that you reproduce, Safe or worse better distribute,

host of now refer it discussion year is my especially And complete today's associated more and to operations, XX, Ziv risks for XXXX, the Bill please call, and December CFO. ended President; a Bill? For Form XX-K VPG's recent Clancy, other to filings. SEC with filings, SEC Shoshani, the our the the for and CEO introduce our pleasure

William Clancy

the by and I morning, call for would to Reynee. reviewing joining start financials. everyone, summarizing Good us today. you highlights thank few then a our Thanks, like and on

negative XX% of exchange million expenses in for administrative expenses. selling, attributable of XX.X% impact. rate XX.X% the million XXXX. comparison million. XXXX. first compared increases, The XXXX travel We of $XXX,XXX of quarter to and rate of of million $XXX,XXX The in administrative the quarter to as of of of to in quarter in Selling, compared of for exchange increase $X the XXXX of $X.X was the to in volumes increased to margin first and and XX.X% our general as positive quarter first profit increase gross environment. our gross first fringe book-to-bill per the XX.X%. remains to profit million bonus with expenses the for up were $X a first exchange view environment million results business a share with and grew XX.X% of our We performance of XXXX, first impact earnings good of XXXX this XXXX. indication of million, and $X.X of revenues the X. of We're provide quarter of compared foreign will $XX.X revenues was of XXXX, quarter rates operating diluted very his adjusted quarter margin We quarterly global of quarter to Ziv with of revenues million, for and that, to XXXX, had first quarter near-term million $X.XX an the Following to positive X.XX, general million $XXX,XXX the related revenues or that $XX.X quarter compared $XX $XX.X adjustments of of The strong the million business $XX.X revenues as robust. by is On the and first and in of wage increase first first the $X.X or $XXX,XXX Slide quarter $XX.X pleased of impact, to

share last compared to in first $X.XX $X.X attributable adjusted of or increased earnings per net income quarter diluted see operating to on VPG for first can million or operating the diluted X.X% stockholders per in that the year. as $X.XX XXXX. our quarter adjusted to $X million share an the to you quarter XX.X% the basis, grew We compared to adjusted at margin Looking we

We first to define compared free rates flow generated negative XXXX. XXXX. of of of first of sale compared impact a of quarter We XXXX, $X.XX exchange currency share. quarter generated the of million as the amount the was the as expenditures, positive on diluted net of for free first $X.X in million which the the cash was of quarter $X.X which operations, of net $X.X first million XXXX quarter flow cash assets, the for or of XXXX from to proceeds first per quarter income Foreign as first first for for quarter $XXX,XXX of less $XXX,XXX capital a XXXX, the cash million the negative of XXXX was had from $X.X quarter which for

was rate be tax for will in On ended three months the the XX%. that anticipate fiscal to GAAP XX.X%. for a operational Our performance XX% X of the our range number reflects operating year XXXX, the We rate March of improved XX, Slide factors. tax

and to we cost. efficiencies create First, driving have been reduce hard

We of a have also through culture. accomplished this through our activities from adoption a improvement continuous initiatives variety our and of both restructuring

of growth a let on comments We the to for business Our been very global end result me of which execution opportunity markets The accompanies that and strong basic also captured to demand improved have margin has With pass prove remain the strategy, products. we our performance on and our Ziv. further effective. focused and continues cycle that, scale-related strong, is growth. this

Ziv Shoshani

in increases, It is XXXX of this sensor XXXX. continues Products a included approximately, product few our of first grown years nicely, developing offering. developed ago. new XXX% Thank Foil grow of great our customers in our Technology We sensor and the you, quarter gain advanced more important of platform to quarter strategy versus this as part design, part example is adoption. of as first the line, by advanced product segment our Bill. saw the An A to has revenues which we

have this pleased with to provided We new and to sensor enhanced are continued performance proud customers. acceptance of platform

to pleased an example transducers manufacturing is also platform. OEM efficient second good innovation of are on value-added A We be our our business.

been has segment. gaining This Sensors last momentum Force our in of year. the part As

its compared business segment, to XXX% quarter and XX% and quarter first onboard compared by XXXX revenues sized quarter quarter to VanWeigh the increased of For of first in as of by the revenues Weighing still the TruckWeigh first in is example A first weighing our final XXXX, increased while the XXXX. Control of modestly business, our XXXX. System

continuing [Technical segments commercial the some to defense both We healthy to our are markets In I'll by important end and and the as improvements pleased these firm improve business, see steel. in supported strong, trends business the defense and aerospace remain data years. and for turn growth. are in upside segment a aerospace particular, jet continue improve industry, also on potential original aftermarket equipment in note, been the what increasingly been that soft the In the market continues to Difficulty] potential market, budget. the outlook current has framework There has the the indicates agreement expectation defense lengthy XXXX for to with a inflection an for past in several positive spend for

commodity utilization a for end [Technical recovery These a markets expected are this the economies. in was boost the are generate virtual of for recent ongoing and to X.X% The demand of steel steel the United Difficulty] and to March and higher investments. good our is tax developed Turning a and impact fundamentals. major States steel world The positive both for developing X.X% XXXX prices gives further steel strong of back reform cycle remain combining on to on all indicators to higher is in its economic outlook XXXX. capacity within which globally, March in XX.X% than XXXX, demand, than business demand as us of The December confidence. robust

quarter million first and was X.XX increase of XXXX. of and decrease million for overall book-to-bill in this to $XX.X XXXX quarter in XX.X% in Foil XXXX X; to the $XX.X were on in Slide million XXXX of Sensors $XX.X and our fourth of of is the significant our recorded quarter in attributable compared Products from $XX.X the of the XXXX or first of in XXXX. our business quarter in in quarter the $X.X million Total the from an decrease fourth orders Technology of reflects Company's X.X% first segment. as the the We The in orders fourth orders that sequential we a well the to quarter annual Moving semiannual first or Force X.XX quarter and environment of believe as execution. million, strong the sustained focus markets XXXX X.XX

April quarter decreased orders measurements Our semiannual at by On all across backlog a due quarter the on mainly the our book-to-bill quarter annual $XX.X XXXX. of Technology quarter line merely from and and Asia at market test end in for XX, $X.X product Europe and X, for that March X.XX details product from significant precision markets fourth for to XXXX quarter some XX.X% to X, XXXX and to XXXX XXXX first first of or force in were the the increased million X.XX XXXX, and for the measurements in regions million the XXXX. weighing compared $XX.X in segment fourth the million of the to The segments. orders by compared Foil had of in Slide recorded Sequentially, and ratio fourth of X.XX of Asia. resistors advanced the reporting precision sensors

in was Foil XXXX from Technology of Pacific space up first in and Technology of primarily decrease Products million XX.X% quarter XXXX, The to gross XX.X% to the also across fourth and in increase line the markets. gross the comparable The in Products of first due profit profit increase year Instruments We of in Americas, for the primarily, regions. $X.X due million the all margin military a the segment $X.X XXXX. quarter the prior avionics, saw the period Foil quarter product was of from XX.X% volume

and for in products. precision the addition sensor measurements test to precision for in Asia and primarily weighing force was the growth market market within Our resistors advanced measurements

Our avionics, within growth for mainly various million end volume increase America, regions. due for In the $X.X military gross profit all in and and market growth $X.X quarter The markets. measurements margin an resistors and sequential primarily to due increase compared Instruments products million advanced test in period of was the end to XXXX to in primarily precision was across in fourth of the was Pacific sensors. Europe markets space

is the all Europe the end precision and various resistors Specifically, measurements markets. growth market advanced for test the within for and products sensor in in regions

of was the segment The and the Technology there currency quarter. increase, positive quarter months efficiencies last XXXX. backlog to compared to compared Foil and $XXX,XXX Products labor in of months months to was fourth of X.X a prior addition foreign the $XXX,XXX X.X volume In X.X year effect

the compared the and XXXX freight in the first the to by in the fourth book-to-bill due $X.X flat Americas profit gross volume Europe. $X.X was which were XXXX Looking The in customers compared orders million first at customers, to XXXX of quarter fringes million quarter million up within of recorded sharply segment; of margin a gross the customers, directly compared of weighing fourth the quarter Americas, for the OEM in significant $X.X fourth of first quarter is of to XXXX the the Sequentially, increases increase annual first XXXX. to quarter and $XXX,XXX. to X.X volume to X.X XXXX. wage OEM and decreased with XXXX due for XXXX. precision $XXX,XXX, fourth decrease quarter the and profit backlog the profit of in The quarter across X.XX The first in for quarter the the first and quarter precision in Americas XX.X% of all was Sensor the was the offset of for segment in of by of in end increase weighing of markets. of from gross $XXX,XXX the Force from regions, force and X.XX customers in XX.X% the in The The in and orders X.X Sensors for for XX.X% ratio the down in Force was of XXXX months was increase mainly compared or X.XX XXXX. quarter from fourth months XXXX, Europe, segment months increases of of measurement quarter OEM XX.X% and

markets due increase The onboard the the segment, first margin orders the of in in primarily gross the product XX.X%. Americas XXXX Systems quarter The Asia. versus the segment XXXX an the steel the in by of profit to the onboard Europe gross quarter attributable first to ratio end in weighing Americas. quarter first quarter $XXX,XXX, quarter For the of X.XX first end first mainly, increase X.XX in to in XXXX. million the lines for Systems Control XX.X% and XXXX XX.X% orders for in from in increased markets fourth of compared Weighing and the X.XX margin Control was profit the the the of and $X.X Weighing was Sequentially, increased The and million is and XXXX by $X.X and or of of book-to-bill and quarter for XXXX fourth weighing XX.X% of in within XXXX. weighing volume quarter process

addition first XXXX. XXXX a in of that million. months steel margin fourth fourth the a In was in of savings cost. in Systems volume was $XXX,XXX, quarter sequential months was fixed manufacturing rate to to was $XXX,XXX the to of quarter of the The reduction and gross positive offsetting decline Weighing to XXXX. backlog in of $X.X of X.X decrease million in Asia impact the in months attributable to exchange by quarter the timing of the revenues quarter X.X volume Control with due $X.X fourth XXXX occurs compared compared and primarily the in The primarily mainly X.X significant Partially business profit decline

in million million to to we business $XX of strong of revenues With the second that, expect let's the open of Moving the net questions. for for Slide $XX exchange range you. the in and XXXX. XXXX constant X; Thank quarter quarter fiscal at environment rates, fiscal lines light first continued the

Operator

[Operator Sidoti with comes first & Instructions] John question Company. Franzreb The from

John Franzreb

because I to book-to-bill -- sure delivered to of versus -- great the of the want last there, first with quarter Weighing you the outlook was Control the think just in so I'd the heard that X.XX the the fourth left X.XX X.XX versus of delivery, the half understand sizable of and the Ziv, make gave, of a revenue Guys, was I year? Control you latter quarter, and increase to quarter start next off Systems, thought, much so like timings given I is just in Weighing you just -- the quarter, want kind and But you something I it I book-to-bill quarter. about said all, the in how

Ziv Shoshani

was was in quarter, stronger When book-to-bill in continuation trend a we strong indicates we X.XX steel, steel for in WCS, lines. all steel demand. first we the product particular at look of which the that which for have very Okay. book-to-bill in can see positive a the quarter X.X, the But

on has a lead a previously more by but As steel discussed time. as cyclical you know, nature longer also

also delivered means been the be the say which placed, be QX, of weighing So steel, the but and QX the But is that an the applied steel. quarter, in I to portion would a in be big for while especially booking onboard book-to-bill for from or effect coming orders quarter. would weighing that to extent can it strong has biggest process would delivered same within regards beyond

John Franzreb

QX, And that's a delivery QX time.

a is some a there issue is currency that I not guess Force aware then Foil. begs orders with that of? of? of in are the of so X.XX in a more short-term question we're should be coming Where Or X.XX Okay, of cognizant and that book-to-bill we from, the this revenue strong barely the balance that

Ziv Shoshani

do believe year. indicated annual that segments, at the deliveries first orders and into being this in and the expect see there QX I FTP Sensors, of since two look and some booked some Well, strong we of QX, very moving Force to should we I've were if semiannual

John Franzreb

and... Force So you QX it's saw in that bookings the

Ziv Shoshani

This correct, is yes.

John Franzreb

the in most seem how euros jump the And going P&L big FX thoughts and and negative past. were an currency are in just the I queue. positive What a and about of had in It to I'll and know shekel one the implications I impact past, last term? near like back did your question it's into know we issue, the was

Ziv Shoshani

we do on we a time, honest, but we revenues. slightly really point have situation if the have -- -- could of see, in also currency we point much a quarter. upcoming the I moving that being significant to which to parts have But is offsetting regards in effects the dollar. In exchange no don't there so weakened the the the past, John, base -- have trend, indicated, global the I I say know are be impact as Well, time, you a is other into going to it U.S. crystal regards a that I to I had at related better that rate think meaning don't things. the from ball, currencies, many that shekel this an this at think we did anyone have well, to with regards the positive seen and don't mainly shekel. I in how other cost and politics to develop that shekel, in as it's coming, we But the know today, seen date as from of to and vis-à-vis in

going sure forward. I'm we have that any So really not it's going to really developed feel how be

John Franzreb

to want as anything you Bill, far add as P&L?

William Clancy

you John, 'XX, couple 'XX first now. mean, exchange in of saw first we a to in that smallest which from when you $XXX,XXX release see the trend, rates the I $X.XX, of that's that's the like is of like or probably -- only the the been Yes. compare quarter the quarters was press that impact the quarter

like impact a has to mentioned, way less shekel an least the going, at as like So the of it Ziv is opposed past. the

Operator

Sherbetchyan Sarkis The next B. question Riley with comes from FBR.

Sarkis Sherbetchyan

happen revenue that to if end step get you range? back look the to needs What high guidance low, Ziv, to range. of and and at right the mid guidance

Ziv Shoshani

of be XX% be backlog based already And in to already is say our be know expected quarter. think that expected would I shipped. be within should booked age is expected the we is on, -- expected that revenues guidance, to likelihood the should age shipped the over already the I second what Well, backlog the first as that an

-- that, environment, that especially current environment, we believe on to and where business some we within specific same have given the quarter in current the confident quite addition in we In guidance. to we the business this booking segments, regards feel based do shipping do

Sarkis Sherbetchyan

at then the that, more seeing comments markets which are be may you're some additional end can to on, markets, I that in, us stability And of kind bit of you seeing project end if to? of please? Like, any color exposed businesses then the maybe the pausing, and that, converse of which you longer or ones you and give are on more look exception little kind a with some strength

Ziv Shoshani

appliance. think have demand I see we we measurement, and or for testing and end strong electronics applications, to see automatic Regarding type support still which that consumer control regard back testing. in the do a end FTP, We the and seen, I a applications. particular, from which see some solid strong -- of same various front companies different larger process very very test end markets consumer also testing same supports for equipment for type the in manufacturing coming of testing demand does

market very for We also to applies say, I and for Pacific for all regards and in also but specific see a product. -- coming avionics, Instruments precision resistors demand especially in FTP, space strong, this would military our sensor

are We increase are programs, now which onboard. discussion to the also is see oil do more some a that to in are is quite there still now looking and at starting new coming programs onshore market. investments current gas We higher regarding demand, more regards and gas the this Oil in being due done to all and drilling. within and and is prices FTP

in for the quite that, regards which few some signs or and to and regards regard to is I main offshore market, Sensors, scales, would to I Force is construction, dead very which is especially picking OEM improvement, much flat up of in and would slight top fracking, in we market, weighing have good. see our in agriculture, drivers which those precision think which started On the operations momentum. to general targeting years was that some be last offshore investments. the say, Now we medical FTP,

in onboard indicated, well. U.K. the regards in think more already to and WCS, economy strong fact specifically board the I weighing, I've have Europe, a Regarding we steel doing recovery the in is the that in position

our we are a little momentum. regards in mainly new dominant signs see bit Also least affecting some business weighing onboard food the that weighing on more very, in a for the U.S. the projects, weighing is of about the We not application the very is the U.S. I VanWeigh, did we recovery our but speak U.S. but larger food industry subsidiary. TruckWeigh from And getting European last on and in have are position. in picking where platforms more effect process process the the side, construction to coming

Sarkis Sherbetchyan

are expect down the I no back and this cost look Or to the and restructuring the quarter, step of And road? some the of the does restructuring way? charges If or programs cost rationalization bulk that do P&L at out the management mean resume this you really of

Ziv Shoshani

and prior this a that can is good we think order the to we as savings which I a continue did to that very fact up more I company, restructuring and in organic from No, much our cost -- calls support as that in programs, restructuring downsize And double-digit we facilities question. those ramping growth, continue are to realize will indicate plans. despite we coming the with

is are realize upcoming restructuring are programs in announce and this -- the still internal plans the to savings and quarters. I in report those but to definite time, process, in think being definitely, it's and the at going and but are point premature there we executed

to we So do continue that.

Sarkis Sherbetchyan

gross margin And exceeding XX%, profile one strategy more -- for me; and an the X, time slide and maybe profile update algorithm give adjusted that exceeding is? those slide really investors revisit Is Slide noticed it metrics as your on what margin XX%. new to to operating I

Ziv Shoshani

Yes.

that more going we -- target would few so we did I close I that This quarter we quarters, have one target hit shareholders good been now our And more we another that the quarters, good sustainable and that think targets. is going once financial mean, are quarter. have -- those have was we see think are getting But You that a to reached Sarkis. to to are indicate a close are is a few very in standpoint. way, correct very more the I but to next point announce quarter we a this are would the we well-taken. we to like a target, target last very from

Operator

further would session. [Operator turn This like the Bill concludes any I questions. Mr. question-and-answer to closing our conference over no Instructions] Okay, back for to seeing remarks. Clancy

William Clancy

I conference And participating joining today. everybody you. our Thank thank for and on us call

to Riley in Just let once forward and we will again and at be And have on to B. support for LA. presenting conference VPG you, I to -- the know, you day. you I will and Thursday, good out a thank May Thank XX, appreciate look you your do soon. talking

Operator

Thank attending you The conference concluded. now is today's presentation. for

You disconnect. may now

Vishay Precision (VPG) 12 May 182018 Q1 Earnings call transcript