Vishay Precision Group Reports Fourth Quarter and Full Year 2012 Results

  Vishay Precision Group Reports Fourth Quarter and Full Year 2012 Results

    Company completes KELK asset acquisition for approximately $50 million
           Canadian. Acquisition expected to be accretive in 2013.

 Cash generated from operations for the fourth quarter was $7.6 million. Net
earnings for the fourth quarter were $5.2 million, or $0.37 per diluted share.

Business Wire

MALVERN, Pa. -- February 12, 2013

Vishay Precision Group, Inc. (NYSE: VPG), a leading producer of precision
sensors and systems, based on its resistive foil technology, today announced
results for the fourth quarter and full year ended December 31, 2012.

Net revenues for the fourth quarter of 2012 were $51.0 million, representing a
9.6% decrease from $56.4 million of net revenues for the comparable prior year
period. Net revenues for the full year ended December 31, 2012 were $217.6
million, representing an 8.6% decrease from the $238.1 million of net revenues
for the comparable prior year period. Comparing the results of the fourth
quarter of 2012 to the third quarter of 2012, net revenues for the fourth
quarter of 2012 decreased by $4.4 million, or 8.0%, from $55.4 million.

Net earnings attributable to VPG stockholders for the fourth quarter were $5.2
million, or $0.37 per diluted share, compared to net earnings for the fourth
quarter of 2011 of $1.2 million, or $0.09 per diluted share. Net earnings
attributable to VPG stockholders for the full year 2012 were $11.7 million, or
$0.84 per diluted share compared to $10.8 million, or $0.78 per diluted share
for the prior year period.

Net earnings attributable to VPG stockholders for the fourth quarter and full
year 2012 include various items affecting comparability, as listed on the
attached reconciliation table. Adjusted net earnings for the fourth quarter of
2012 were $2.0 million or $0.15 per diluted share, versus net earnings of $1.2
million, or $0.09 per diluted share for the comparable prior year period.
Adjusted net earnings for the full year 2012 were $8.6 million or $0.62 per
diluted share, versus net earnings of $10.8 million, or $0.78 per diluted
share for the comparable prior full year. Adjusted net earnings for the fourth
quarter of 2012 increased by $0.1 million to $2.0 million compared to the
third quarter of 2012.

Ziv Shoshani, chief executive officer of VPG, said, “Cash flow was impressive
in the fourth quarter and for the year. Revenues have decreased on a
year-over-year basis, primarily in Europe, and to a lesser extent in Asia -- a
reflection of the soft global industrial segment environment. We continue to
execute our strategy of enhancing organic growth and operational efficiency,
investing in our technology and pursuing acquisitions with the goal of
increasing shareholder value.”

Mr. Shoshani added, “In addition to our financial results, we completed the
asset acquisition of George Kelk Corporation in January 2013. The business is
a natural fit for us and is a key component to our strategy. This acquisition,
with a purchase price of approximately $50 million Canadian, expands our
geographic and end-market leadership through a combination of intellectual
property, engineering talent, and new products in the Weighing Control Systems
segment of our existing force measurement products. The acquisition is
expected to be accretive in 2013.”

Segments

The Foil Technology Products segment revenues decreased from $26.3 million in
the third quarter of 2012 to $24.5 million in the fourth quarter of 2012. The
gross margin for the Foil Technology Products segment increased to 40.6% for
the fourth quarter of 2012 from 38.9% in the third quarter of 2012, which is
mainly due to improved manufacturing efficiencies, despite the reduction in
revenues.

The Force Sensors segment revenues decreased from $16.5 million in the third
quarter of 2012 to $15.5 million for the fourth quarter of 2012. The gross
margin for the Force Sensors segment was 20.2% in the third quarter of 2012
versus 22.5% in the fourth quarter of 2012. The increase in gross margin is
mainly due to improved manufacturing efficiencies in our offshore facility.

The Weighing and Control Systems segment revenues decreased from $12.6 million
in the third quarter of 2012 to $11.0 million for the fourth quarter of 2012.
The gross margin for the Weighing and Control Systems segment decreased from
40.9% for the third quarter of 2012 to 37.6% in the fourth quarter of 2012
mainly due to lower volume in Europe.

Outlook

Mr. Shoshani concluded, “The KELK acquisition expands our presence throughout
Asia Pacific, and other emerging markets and diversifies our customer and
technology base. We believe the actions we continue to take will position the
company to profitably grow in a challenging global environment. For the first
quarter of 2013, we expect overall revenues in the range of $54 million to $59
million.”

Conference Call and Webcast

A conference call will be held on February 12, 2013 at 10:00 a.m. EST (9:00
a.m. CST). To access the conference call, interested parties may call
888-317-6016 or internationally 412-317-6016, or log on to the investor
relations page of the VPG website at http://ir.vishaypg.com in listen-only
mode.

A replay will be available approximately one hour after the completion of the
call by calling toll-free 877-344-7529 or internationally 412-317-0088 and
using the conference number: 10023430. The replay will also be available on
the investor relations page of the VPG website at http://ir.vishaypg.com. It
will be available via phone and website for a limited time.

About Vishay Precision Group

Vishay Precision Group (VPG) is an internationally recognized designer,
manufacturer and marketer of: components based on its resistive foil
technology; sensors; and sensor-based systems specializing in the growing
markets of stress, force, weight, pressure, and current measurements. VPG is a
market leader of Foil Technology Products, providing ongoing technology
innovations in precision foil resistors and foil strain gages, which are the
foundation of the company's Force Sensors Products and its Weighing and
Control Systems. The product portfolio consists of a variety of
well-established brand names recognized for precision and quality in the
marketplace. To learn more, visit VPG at www.vishaypg.com.

Forward-Looking Statements

From time to time, information provided by us, including but not limited to
statements in this report, or other statements made by or on our behalf, may
contain "forward-looking" information within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements involve a number of
risks, uncertainties, and contingencies, many of which are beyond our control,
which may cause actual results, performance, or achievements to differ
materially from those anticipated.

Such statements are based on current expectations only, and are subject to
certain risks, uncertainties, and assumptions. Should one or more of these
risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those anticipated,
expected, estimated, or projected. Among the factors that could cause actual
results to materially differ include: general business and economic
conditions, changes in the current pace of economic recovery, including if
such recovery stalls or does not continue as expected; difficulties or delays
in completing acquisitions and integrating acquired companies, including KELK,
the inability to realize anticipated synergies and expansion possibilities,
difficulties in new product development; changes in competition and technology
in the markets that we serve and the mix of our products required to address
these changes; changes in foreign currency exchange rates; difficulties in
implementing our cost reduction strategies such as underutilization of
production facilities, labor unrest or legal challenges to our lay-off or
termination plans, operation of redundant facilities due to difficulties in
transferring production to lower-labor-cost countries; and other factors
affecting our operations, markets, products, services, and prices that are set
forth in our annual report on Form 10-K for the year ended December 31, 2011.
We undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events, or
otherwise.

                                                   
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Summary of Operations
(Unaudited - In thousands, except per share data)
                                                                  
                                                     Fiscal quarters ended
                                                     December 31, December 31,
                                                     2012         2011
                                                                  
                                                                  
Net revenues                                         $  51,010    $  56,412
Costs of products sold                                 33,448     37,593  
Gross profit                                            17,562       18,819
Gross margin                                            34.4   %     33.4    %
                                                                  
Selling, general, and administrative expenses           15,743       16,949
Acquisition costs                                      275        -       
Operating income                                        1,544        1,870
Operating margin                                        3.0    %     3.3     %
                                                                  
Other income (expense):
Interest expense                                        (50    )     (49     )
Other                                                  (316   )    (249    )
Total other income (expense) - net                     (366   )    (298    )
                                                                  
Income before taxes                                     1,178        1,572
                                                                  
Income tax (benefit) expense                           (4,036 )    405     
                                                                  
Net earnings                                            5,214        1,167
                                                                  
Less: net income (loss) attributable to                 49           (28     )
noncontrolling interests
                                                                 
Net earnings attributable to VPG stockholders        $  5,165    $  1,195   
                                                                  
                                                                  
Basic earnings per share attributable to VPG         $  0.39      $  0.09
stockholders
                                                                  
Diluted earnings per share attributable to VPG       $  0.37      $  0.09
stockholders
                                                                  
                                                                  
Weighted average shares outstanding - basic             13,371       13,346
                                                                  
Weighted average shares outstanding - diluted           13,912       13,874
                                                                             

                                                   
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Summary of Operations
(Unaudited - In thousands, except per share data)
                                                                  
                                                     Years ended
                                                     December 31, December 31,
                                                     2012         2011
                                                                  
                                                                  
Net revenues                                         $ 217,616    $  238,107
Costs of products sold                                142,584     154,996 
Gross profit                                           75,032        83,111
Gross margin                                           34.5    %     34.9    %
                                                                  
Selling, general, and administrative expenses          63,666        66,847
Acquisition costs                                     275         -       
Operating income                                       11,091        16,264
Operating margin                                       5.1     %     6.8     %
                                                                  
Other income (expense):
Interest expense                                       (266    )     (276    )
Other                                                 (301    )    (878    )
Total other income (expense) - net                    (567    )    (1,154  )
                                                                  
Income before taxes                                    10,524        15,110
                                                                  
Income tax (benefit) expense                          (1,240  )    4,316   
                                                                  
Net earnings                                           11,764        10,794
                                                                  
Less: net earnings attributable to noncontrolling      73            23
interests
                                                                 
Net earnings attributable to VPG stockholders        $ 11,691    $  10,771  
                                                                  
                                                                  
Basic earnings per share attributable to VPG         $ 0.87       $  0.81
stockholders
                                                                  
Diluted earnings per share attributable to VPG       $ 0.84       $  0.78
stockholders
                                                                  
                                                                  
Weighted average shares outstanding - basic            13,367        13,343
                                                                  
Weighted average shares outstanding - diluted          13,889        13,834
                                                                             

                                                               
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Balance Sheets
(In thousands)
                                                                  
                                                   December 31,   December 31,
                                                   2012           2011
Assets                                             (unaudited)
Current assets:
Cash and cash equivalents                          $  93,881      $  80,828
Accounts receivable, net                              28,766         34,214
Net inventories                                       49,389         49,098
Deferred income taxes                                 4,258          4,638
Prepaid expenses and other current assets            9,572        8,964   
Total current assets                                  185,866        177,742
                                                                  
Property and equipment, net                           52,092         53,738
Intangible assets, net                                8,009          11,102
Other assets                                         17,206       14,023  
Total assets                                       $  263,173    $  256,605 
                                                                  
Liabilities and equity
Current liabilities:
Trade accounts payable                             $  9,190       $  11,458
Payroll and related expenses                          12,831         12,741
Other accrued expenses                                8,705          9,538
Income taxes                                          1,425          2,842
Current portion of long-term debt                    167          185     
Total current liabilities                             32,318         36,764
                                                                  
Long-term debt less current portion                   11,154         11,463
Deferred income taxes                                 1,831          2,873
Other liabilities                                     7,433          7,769
Accrued pension and other postretirement costs       13,835       12,798  
Total liabilities                                    66,571       71,667  
                                                                  
Commitments and contingencies
                                                                  
Equity:
Common stock                                          1,235          1,232
Class B common stock                                  103            103
Capital in excess of par value                        181,732        180,758
Retained earnings                                     28,356         16,665
Accumulated other comprehensive income (loss)        (14,983 )     (13,973 )
Total Vishay Precision Group, Inc. stockholders'      196,443        184,785
equity
Noncontrolling interests                             159          153     
Total equity                                         196,602      184,938 
Total liabilities and equity                       $  263,173    $  256,605 
                                                                  

                                                               
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Statements of Cash Flows
(Unaudited - In thousands)
                                                   Years ended
                                                   December 31,   December 31,
                                                   2012           2011
                                                                  
Operating activities:
Net earnings                                       $  11,764      $  10,794
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization                         11,661         11,321
Loss on disposal of property and equipment            158            20
Inventory write-offs for obsolescence                 1,444          1,658
Share based compensation expense                      1,170          961
Other                                                 (5,122  )      (3,994  )
Changes in operating assets and liabilities          19           (5,168  )
Net cash provided by operating activities             21,094         15,592
                                                                  
Investing activities:
Purchase of property and equipment                    (8,322  )      (16,291 )
Proceeds from sale of property and equipment         360          147     
Net cash used in investing activities                 (7,962  )      (16,144 )
                                                                  
Financing activities:
Principal payments on long-term debt and capital      (181    )      (136    )
lease obligations
Net changes in short-term borrowings                  -              (83     )
Distributions to noncontrolling interests            (67     )     (15     )
Net cash used in financing activities                 (248    )      (234    )
Effect of exchange rate changes on cash and cash     169          (631    )
equivalents
                                                                  
Increase (decrease) in cash and cash equivalents     13,053       (1,417  )
                                                                  
Cash and cash equivalents at beginning of year       80,828       82,245  
Cash and cash equivalents at end of year           $  93,881     $  80,828  
                                                                  

                 
VISHAY PRECISION
GROUP, INC.
Reconciliation
of Adjusted
Earnings Per
Share
(Unaudited - In
thousands,
except per share
data)
                                                                      
                   Fiscal quarters ended                 Years ended
                   December 31, September   December 31, December 31, December
                                29,                                   31,
                   2012         2012        2011         2012         2011
                                                                      
                                                                      
GAAP net
earnings           $  5,165     $  1,942    $   1,195    $  11,691    $ 10,771
attributable to
VPG stockholders
                                                                      
Reconciling
items affecting
operating margin
Acquisition           275          -            -           275         -
costs
                                                                      
Reconciling
items affecting
tax expenses
(benefit)
Tax effect of
item above and
release of            (3,396 )     -            -           (3,396 )    -
valuation
allowance
                                                                  
Adjusted net       $  2,044    $  1,942    $   1,195    $  8,570    $ 10,771
earnings
                                                                      
Weighted average
shares                13,912       13,893       13,874      13,889      13,834
outstanding -
diluted
                                                                      
Adjusted
earnings per       $  0.15      $  0.14     $   0.09     $  0.62      $ 0.78
diluted share
                                                                      

Contact:

Vishay Precision Group, Inc.
Wendy Wilson, 919-374-5501
Senior Director Investor Relations and Corporate Communications
Wendy.wilson@vishaypg.com