# EDGAR Filing Document

**Accession Number:** 0001487952
**File Stem:** 0001487952-23-000002
**Filing Date:** 2023-2
**Character Count:** 40500
**Document Hash:** fc9e699efb9b57979e6fd7d3a62902d6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001487952-23-000002.hdr.sgml**: 20230214

**ACCESSION NUMBER**: 0001487952-23-000002

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230214

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230214

**DATE AS OF CHANGE**: 20230214

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Vishay Precision Group, Inc.
- **CENTRAL INDEX KEY:** 0001487952
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRONIC COMPONENTS & ACCESSORIES [3670]
- **IRS NUMBER:** 270986328
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34679
- **FILM NUMBER:** 23631309

**BUSINESS ADDRESS:**
- **STREET 1:** 3 GREAT VALLEY PARKWAY, SUITE 150
- **CITY:** MALVERN
- **STATE:** PA
- **ZIP:** 19355
- **BUSINESS PHONE:** 484-321-5300

**MAIL ADDRESS:**
- **STREET 1:** 3 GREAT VALLEY PARKWAY, SUITE 150
- **CITY:** MALVERN
- **STATE:** PA
- **ZIP:** 19355

?xml version="1.0" ? vpg-20230214

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d)**

**OF THE SECURITIES EXCHANGE ACT OF 1934**

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| | |
|:---|:---|
| Date of Report (Date of Earliest Event Reported):**&nbsp;&nbsp;&nbsp;&nbsp;**  | **February 14, 2023** |

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**Vishay Precision Group, Inc.**

(Exact Name of Registrant as Specified in Charter)

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| | | |
|:---|:---|:---|
| **Delaware** | **1-34679** | **27-0986328** |
| (State or Other Jurisdiction of | (Commission File Number) | (I.R.S. Employer Identification |
| Incorporation or Organization) | | Number) |

---

---

| | |
|:---|:---|
| **3 Great Valley Parkway, Suite 150** | |
| **Malvern, PA** | **19355** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

**(484) 321-5300**

(Registrant's Telephone Number, Including Area Code)

**Not Applicable**

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common stock, $0.10 par value | VPG | New York Stock Exchange |

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| | |
|:---|:---|
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). |
| Emerging growth company | ☐ |
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻ |

---

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**Item 2.02 Results of Operations and Financial Conditions.**

On February 14, 2023, Vishay Precision Group, Inc. (the "Company") issued a press release announcing results for the fourth quarter and fiscal year ended December 31, 2022. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and shall not be deemed to be "filed" for any purpose.

**Item 9.01 Financial Statements and Exhibits.**

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | <u>[Press release dated February 1](vpg-2022q4earnings8kxex991.htm)[4,](vpg-2022q4earnings8kxex991.htm)[202](vpg-2022q4earnings8kxex991.htm)[3](vpg-2022q4earnings8kxex991.htm)[, announcing results of the fourth quarter and fiscal year ended December 31, 202](vpg-2022q4earnings8kxex991.htm)[2](vpg-2022q4earnings8kxex991.htm)[.](vpg-2022q4earnings8kxex991.htm)</u> |

---

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**SIGNATURES**

&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **Vishay Precision Group, Inc.** | **Vishay Precision Group, Inc.** |
| Date: February 14, 2023 | By: | /s/ William M. Clancy |
|  |  | Name: William M. Clancy |
|  |  | Title:&nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President and Chief |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Officer |

---

## Exhibit 99.1

**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit 99.1**

**For Immediate Release**

**VPG Reports Fiscal 2022 Fourth Quarter and Twelve Month Results**

**MALVERN, Pa.** (February 14, 2023) - Vishay Precision Group, Inc. (NYSE: VPG), a leader in precision measurement technologies, today announced its results for its fiscal 2022 fourth quarter and twelve fiscal months ended December 31, 2022.

**Fourth Quarter Highlights:**

• Revenues of $96.2 million increased 6.9% from a year ago

• Gross profit margin was 41.2%, as compared to 38.7% a year ago

• Adjusted gross profit margin\* was 41.5%, as compared to 40.3% a year ago

• Operating margin was 13.6%, as compared to 9.7% reported a year ago

• Adjusted operating margin\* was 14.0%, as compared to 11.4% reported a year ago

• Diluted net earnings per share were $0.65, as compared to $0.44 reported a year ago

• Adjusted diluted net earnings per share\* were $0.76, as compared to $0.56 reported a year ago

• EBITDA\* was $15.4 million with an EBITDA margin\* of 16.0%

• Adjusted EBITDA\* was $17.5 million with an adjusted EBITDA margin\* of 18.2%

• Cash from operating activities was $12.5 million with adjusted free cash flow\* of $6.8 million

**2022 Full Year Highlights:**

• Revenues of $362.6 million increased 14.0% year-over-year

• Gross profit margin was 41.3%, as compared to 39.4% a year ago

• Adjusted gross profit margin\* was 41.8%, as compared to 41.2% a year ago

• Operating margin was 12.1%, as compared to 8.6% reported last year

• Adjusted operating margin\* was 13.0%, as compared to 11.1% reported last year

• Diluted net earnings per share were $2.63, as compared to $1.48 reported a year ago

• Adjusted diluted net earnings per share\* were $2.62, as compared to $1.87 reported a year ago

• EBITDA\* was $62.2 million with an EBITDA margin\* of 17.2%

• Adjusted EBITDA\* was $62.0 million with an adjusted EBITDA margin\* of 17.1%

• Cash from operating activities was $33.0 million with adjusted free cash flow\* of $12.2 million

Ziv Shoshani, Chief Executive Officer of VPG, commented, "Our fourth quarter results contributed to a record year for VPG. For fiscal 2022, we achieved revenue growth of 14.0% despite ongoing foreign currency headwinds, adjusted diluted net earnings per share\* of $2.62, and an adjusted EBITDA margin\* of 17.1%. We believe this performance demonstrates the increasing value of our technology solutions, the power of our business model, and our growth strategies.

For the fourth quarter, we achieved record revenue which was 6.9% above both the fourth quarter of last year and the third quarter of 2022. We delivered adjusted diluted net earnings per share\* of $0.76, and adjusted EBITDA\* of $17.5 million with an adjusted EBITDA margin\* of 18.2%. After seven quarters of book-to-bill over 1.0, our book-to-bill of 0.76 reflected softer fourth quarter orders, as customers adjusted their order levels to reflect cyclical slowing in some markets and the easing of supply chain availability more broadly. While near-term visibility is limited, we expect orders to improve through 2023. We are confident about the prospects for our strategic initiatives to address emerging and broadening opportunities for our precision sensing and measurement technologies."

The Company's fourth fiscal quarter 2022 net earnings attributable to VPG stockholders were $8.8 million, or $0.65 per diluted share, compared to $6.0 million, or $0.44 per diluted share, in the fourth fiscal quarter of 2021.

In the fiscal year ended December 31, 2022, net earnings attributable to VPG stockholders were $36.1 million, or $2.63 per diluted share, compared to $20.2 million, or $1.48 per diluted share, in the fiscal year ended December 31, 2021.

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The fourth fiscal quarter 2022 adjusted net earnings\* attributable to VPG stockholders were $10.4 million, or $0.76 per diluted share, compared to adjusted net earnings\* attributable to VPG stockholders of $7.7 million, or $0.56 per diluted share, for the comparable prior year period.

In the fiscal year ended December 31, 2022, adjusted net earnings\* attributable to VPG stockholders were $35.9 million, or $2.62 per diluted share, compared to adjusted net earnings\* attributable to VPG stockholders of $25.6 million, or $1.87 per diluted share, for the comparable prior year period.

**Segment Performance**

The Sensors segment revenues of $36.3 million in the fourth fiscal quarter of 2022 increased 6.3% from the prior year of $34.1 million and decreased 4.1% sequentially from $37.9 million in the third quarter of 2022. The year-over-year increase in revenues was primarily attributable to an increase in sales of precision resistors in the Test and Measurement market, and higher sales of our advance sensors products primarily in Avionics, Military and Space (AMS) market and General Industrial markets. Sequentially, the decrease in revenues reflected lower precision resistor sales in the Test and Measurement market which was partially offset by an increase in the AMS market, and a decrease in sales of our advanced sensors, primarily in our consumer electronics market.

Gross profit margin for the Sensors segment of 37.6% for the fourth fiscal quarter of 2022 was higher compared to 32.1% (or 34.8% adjusted to exclude the impact of $0.9 million of start-up costs related to our new advanced sensors facility) in the fourth fiscal quarter of 2021, and lower compared to 40.5% in the third fiscal quarter of 2022. The year-over-year increase in adjusted gross profit margin\* was primarily due to an increase in volume and average selling prices. Sequentially, adjusted gross profit margin\* was lower than the third quarter of 2022 primarily due to a decrease in volume and temporary manufacturing inefficiencies.

The Weighing Solutions segment revenues of $33.1 million in the fourth fiscal quarter of 2022 increased 3.2% from $32.1 million in the prior year and 5.4% from $31.4 million in the third quarter of 2022. The year-over-year increase in revenues was primarily attributable to increased revenues from OEM customers for precision agriculture applications in our Other market segment. The sequential increase in revenues was primarily attributable to increased revenues from OEM customers for precision agriculture and construction applications in our Other market segment and higher revenue in our Industrial Weighing market, partially offset by lower sales in the Transportation market.

Gross profit margin for the Weighing Solutions segment was 33.4% for the fourth fiscal quarter of 2022, a decrease compared to 34.0% in the fourth fiscal quarter of 2021, and flat compared to 33.3% in the third fiscal quarter of 2022. The year-over-year decrease in adjusted gross profit margin\* was primarily due to higher material costs and unfavorable foreign currency exchange rates, partially offset by higher volume and selling price increases. Sequentially, adjusted gross profit margin\* was essentially flat, as higher volume was offset by unfavorable foreign currency exchange rates.

The Measurement Systems segment revenues in the fourth fiscal quarter of 2022 of $26.8 million increased 12.8% from $23.8 million in the prior year and increased 29.2% sequentially from $20.8 million in the third fiscal quarter of 2022. The year-over-year increase in revenues was primarily attributable to higher sales of Diversified Technical Systems, Inc. ("DTS") products to the AMS and Transportation markets, and higher KELK and Dynamic Systems Inc. ("DSI") steel-related sales. The sequential increase in revenue was primarily attributable to higher sales of DTS products to the Transportation and AMS markets and higher sales of KELK and DSI to Steel markets.

Gross profit margin for the Measurement Systems segment was 55.9% (or 56.8% adjusted to exclude the $0.2 million of purchasing accounting adjustments related to the DTS acquisition) for the fourth fiscal quarter of 2022, compared to 54.7% (or 56.8% adjusted to exclude the $0.5 million purchasing accounting adjustments related to the DTS acquisition) in the fourth fiscal quarter of 2021, and compared to 55.5% (or 56.7% adjusted to exclude the $0.3 million of purchasing accounting adjustments related to the DTS acquisition) from the third fiscal quarter of 2022. Year-over-year, the adjusted gross profit margin\* was flat as higher revenue and higher average selling prices were offset by unfavorable product mix, unfavorable foreign exchange rates and higher materials costs. While slightly higher on a sequential

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basis, adjusted gross profit margin\* in the fourth quarter of 2022 reflected higher volume which was partially offset by unfavorable product mix and foreign exchange rates.

**Near-Term Outlook**

"For the first fiscal quarter of 2023, at constant fourth fiscal quarter 2022 exchange rates, we expect net revenues to be in the range of $85 million to $95 million," concluded Mr. Shoshani.

**\*Use of Non-GAAP Financial Information**

We define "adjusted gross profit margin" as gross profit margin before purchase accounting adjustments related to the DTS and DSI acquisitions, start-up costs related to our new advanced sensors facility, and COVID-19 costs. We define "adjusted operating margin" as operating margin before purchase accounting adjustments related to the DTS and DSI acquisitions, acquisition costs related to the DTS acquisition, start-up costs related to our new advanced sensors facility, COVID-19 costs, impairment of goodwill and indefinite-lived intangibles, and restructuring costs. We define "adjusted net earnings" and "adjusted diluted net earnings per share" as net earnings attributable to VPG stockholders before purchase accounting adjustments related to the DTS and DSI acquisitions, acquisition costs related to the DTS acquisition, start-up costs related to our new advanced sensors facility, COVID-19 costs, impairment of goodwill and indefinite-lived intangibles, restructuring costs, foreign currency exchange gains and losses, and associated tax effects. We define "EBITDA" as earnings before interest, taxes, depreciation, and amortization. We define "Adjusted EBITDA" as earnings before interest, taxes, depreciation, and amortization before purchase accounting adjustments related to the DTS and DSI acquisitions, acquisition costs related to the DTS acquisition, start-up costs related to our new advanced sensors facility, COVID-19 costs, impairment of goodwill and indefinite-lived intangibles, restructuring costs, foreign currency exchange gains and losses, and associated tax effects.

"Adjusted free cash flow" for the fourth fiscal quarter of 2022 is defined as the amount of cash generated from operating activities ($12.5 million), in excess of our capital expenditures ($5.7 million), net of proceeds, if any, from the sale of assets ($0.0 million). "Adjusted free cash flow" for the fiscal year of 2022 is defined as the amount of cash generated from operating activities ($33.0 million) in excess of our capital expenditures ($21.3 million), net of proceeds, if any, from the sale of assets ($0.5 million).

Management believes that these non-GAAP measures are useful to investors because each presents what management views as our core operating results for the relevant period. The adjustments to the applicable GAAP measures relate to occurrences or events that are outside of our core operations, and management believes that the use of these non-GAAP measures provides a consistent basis to evaluate our operating profitability and performance trends across comparable periods. These reconciling items are indicated on the accompanying reconciliation schedules and are more fully described in VPG's financial statements presented in our Annual Report on Form 10-K and its Quarterly Reports on Forms 10-Q.

**Conference Call and Webcast**

A conference call is scheduled for tomorrow (Wednesday, February 15, 2023) at 9:00 a.m. ET (8:00 a.m. CT). To access the conference call, interested parties may call 1-844-200-6205 or internationally 1-929-526-1599 and use passcode 467007, or log on to the investor relations page of the VPG website at ir.vpgsensors.com.

A replay will be available approximately one hour after the completion of the call by calling toll-free 1-866-813-9403 or internationally 1-929-458-6194 and using the passcode 330842. The replay will also be available on the investor relations page of the VPG website at ir.vpgsensors.com for a limited time.

**About VPG**

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Vishay Precision Group, Inc. (VPG) is a leader in precision measurement sensing technologies. Our sensors, weighing solutions and measurement systems optimize and enhance our customers' product performance across a broad array of markets to make our world safer, smarter, and more productive.

To learn more, visit VPG at www.vpgsensors.com and follow us on LinkedIn.

**Forward-Looking Statements** 

From time to time, information provided by us, including, but not limited to, statements in this press release, or other statements made by or on our behalf, may contain or constitute "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; impact of inflation, issues respecting the United States federal government debt ceiling, global labor and supply chain challenges; difficulties or delays in identifying, negotiating and completing acquisitions and integrating acquired companies; 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; political, economic, health (including the COVID-19 pandemic) and military instability in the countries in which we operate; 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 achieve efficiencies; compliance issues under applicable laws, such as export control laws, including the outcome of our voluntary self-disclosure of export control non-compliance; significant developments from the recent and potential changes in tariffs and trade regulation; our efforts and efforts by governmental authorities to mitigate the COVID-19 pandemic, such as travel bans, shelter-in-place orders and business closures and the related impact on resource allocations, manufacturing and supply chains; our status as a "critical", "essential" or "life-sustaining" business in light of COVID-19 business closure laws, orders and guidance being challenged by a governmental body or other applicable authority; our ability to execute our new corporate strategy and business continuity, operational and budget plans; 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 fiscal year ended December 31, 2021. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this report or as of the dates otherwise indicated in such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

**Contact:**

Steve Cantor

Vishay Precision Group, Inc.

781-222-3516

<u>steve.cantor@vpgsensors.com</u>

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| | | |
|:---|:---|:---|
| **VISHAY PRECISION GROUP, INC.** | | |
| Consolidated Statements of Operations |  |  |
| *(Unaudited - In thousands, except per share amounts)* |  |  |
|  | **Fiscal quarter ended** | **Fiscal quarter ended** |
|  | **December 31, 2022** | **December 31, 2021** |
| Net revenues | $**96240** | $90017 |
| Costs of products sold | **56542** | 55140 |
| Gross profit | **39698** | 34877 |
| &nbsp;&nbsp;&nbsp;Gross profit margin | **41.2%** | 38.7% |
| Selling, general, and administrative expenses | **26461** | 26057 |
| Restructuring costs | **188** | 76 |
| Operating income | **13049** | 8744 |
| &nbsp;&nbsp;&nbsp;Operating margin | **13.6%** | 9.7% |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | **(876)** | (324) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **(1448)** | (651) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expenses - net | **(2324)** | (975) |
| Income before taxes | **10725** | 7769 |
| Income tax expense | **1884** | 1781 |
| Net earnings | **8841** | 5988 |
| Less: net earnings attributable to noncontrolling interests | **7** | 27 |
| Net earnings attributable to VPG stockholders | $**8834** | $5961 |
| Basic earnings per share attributable to VPG stockholders | $**0.65** | $0.44 |
| Diluted earnings per share attributable to VPG stockholders | $**0.65** | $0.44 |
| Weighted average shares outstanding - basic | **13579** | 13626 |
| Weighted average shares outstanding - diluted | **13677** | 13687 |

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| | | |
|:---|:---|:---|
| **VISHAY PRECISION GROUP, INC.** | | |
| Consolidated Statements of Operations |  |  |
| *(Unaudited - In thousands, except per share amounts)* |  |  |
|  | **Years ended** | **Years ended** |
|  | **December 31, 2022** | **December 31, 2021** |
| Net revenues | $**362580** | $317919 |
| Costs of products sold | **212978** | 192777 |
| Gross profit | **149602** | 125142 |
| &nbsp;&nbsp;&nbsp;Gross profit margin | **41.3%** | 39.4% |
| Selling, general, and administrative expenses | **104285** | 95273 |
| Acquisition costs | **—** | 1198 |
| Impairment of goodwill and indefinite-lived intangibles | **—** | 1223 |
| Restructuring costs | **1518** | 76 |
| Operating income | **43799** | 27372 |
| &nbsp;&nbsp;&nbsp;Operating margin | **12.1%** | 8.6% |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | **(2269)** | (1230) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **3558** | (230) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expenses - net | **1289** | (1460) |
| Income before taxes | **45088** | 25912 |
| Income tax expense | **8535** | 5469 |
| Net earnings | **36553** | 20443 |
| Less: net earnings attributable to noncontrolling interests | **490** | 222 |
| Net earnings attributable to VPG stockholders | $**36063** | $20221 |
| Basic earnings per share attributable to VPG stockholders | $**2.65** | $1.49 |
| Diluted earnings per share attributable to VPG stockholders | $**2.63** | $1.48 |
| Weighted average shares outstanding - basic | **13628** | 13616 |
| Weighted average shares outstanding - diluted | **13688** | 13657 |

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| | | |
|:---|:---|:---|
| **VISHAY PRECISION GROUP, INC.** | | |
| Consolidated Balance Sheets |  |  |
| *(In thousands, except per share amounts)* |  |  |
|  | **December 31, 2022** | **December 31, 2021** |
|  | *(Unaudited)* |  |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**88562** | $84335 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | **60068** | 58265 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Raw materials | **31852** | 25464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Work in process | **26401** | 23851 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finished goods | **26407** | 27112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | **84660** | 76427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | **18516** | 15916 |
| Total current assets | **251806** | 234943 |
| Property and equipment: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land | **4117** | 4241 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings and improvements | **71613** | 68778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment | **125301** | 122202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Software | **9539** | 8871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction in progress | **10075** | 7747 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated depreciation | **(133518)** | (130619) |
| Property and equipment, net | **87127** | 81220 |
| Goodwill | **45544** | 45830 |
| Intangible assets, net | **48217** | 52437 |
| Operating lease right-of-use assets | **24342** | 27764 |
| Other assets | **19706** | 19695 |
| Total assets | $**476742** | $461889 |

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| | | |
|:---|:---|:---|
| **VISHAY PRECISION GROUP, INC.** | | |
| Consolidated Balance Sheets |  |  |
| *(In thousands, except per share amounts)* |  |  |
|  | **December 31, 2022** | **December 31, 2021** |
|  | *(Unaudited)* |  |
| **Liabilities and equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade accounts payable | $**13792** | $14876 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payroll and related expenses | **21966** | 23772 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued expenses | **20306** | 17596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | **4064** | 3774 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | **4208** | 4610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt | **—** |  |
| Total current liabilities | **64336** | 64628 |
| Long-term debt, less current portion | **60799** | 60714 |
| Deferred income taxes | **4212** | 5848 |
| Operating lease liabilities | **20043** | 25140 |
| Other liabilities | **13053** | 16264 |
| Accrued pension and other postretirement costs | **7777** | 12253 |
| Total liabilities | **170220** | 184847 |
| Commitments and contingencies |  |  |
| Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock | **1325** | 1322 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class B convertible common stock | **103** | 103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock | **(11504)** | (8765) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital in excess of par value | **201164** | 199151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | **156359** | 120296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | **(40900)** | (35008) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Vishay Precision Group, Inc. stockholders' equity | **306547** | 277099 |
| Noncontrolling interests | **(25)** | (57) |
| Total equity | **306522** | 277042 |
| Total liabilities and equity | $**476742** | $461889 |

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| | | |
|:---|:---|:---|
| **VISHAY PRECISION GROUP, INC.** | | |
| Consolidated Statements of Cash Flows |  |  |
| *(Unaudited - In thousands)* |  |  |
|  | **Years ended** | **Years ended** |
|  | **December 31, 2022** | **December 31, 2021** |
| **Operating activities** |  |  |
| Net earnings | $**36553** | $20443 |
| Adjustments to reconcile net earnings to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of goodwill and indefinite-lived intangibles | **—** | 1223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **15353** | 14996 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of property and equipment | **(117)** | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassification of foreign currency translation adjustment related to disposal of subsidiary | **191** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | **2439** | 2244 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory write-offs for obsolescence | **1650** | 2288 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | **(2040)** | (3256) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency impacts and other items | **(3915)** | (1018) |
| Net changes in operating assets and liabilities, net of acquisition: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | **(4777)** | (8038) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | **(11943)** | (8626) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | **(2808)** | (56) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade accounts payable | **889** | 3292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | **3393** | 11637 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non current assets and liabilities, net | **(1413)** | (624) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued pension and other postretirment costs, net | **(426)** | (963) |
| Net cash provided by operating activities | **33029** | 33537 |
| **Investing activities** |  |  |
| Capital expenditures | **(21288)** | (17061) |
| Proceeds from sale of property and equipment | **451** | 231 |
| Purchase of business | **—** | (47216) |
| Net cash used in investing activities | **(20837)** | (64046) |
| **Financing activities** |  |  |
| Principal payments on long-term debt | **—** | (18) |
| Proceeds from revolving facility | **—** | 20000 |
| Purchase of treasury stock | **(2739)** |  |
| Distributions to noncontrolling interests | **(457)** | (313) |
| Payments of employee taxes on certain share-based arrangements | **(435)** | (853) |
| Net cash (used in) provided by financing activities | **(3631)** | 18816 |
| Effect of exchange rate changes on cash and cash equivalents | **(4334)** | (2410) |
| Increase (decrease) in cash and cash equivalents | **4227** | (14103) |
| Cash and cash equivalents at beginning of year | **84335** | 98438 |
| Cash and cash equivalents at end of year | $**88562** | $84335 |
| **Supplemental disclosure of investing transactions:** |  |  |
| Capital expenditures purchased | $**(19951)** | $(17567) |
| Capital expenditures accrued but not yet paid | $**1731** | $3068 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **VISHAY PRECISION GROUP, INC.** | **VISHAY PRECISION GROUP, INC.** | **VISHAY PRECISION GROUP, INC.** | **VISHAY PRECISION GROUP, INC.** | | | | | |
| **Reconciliation of Consolidated Adjusted Gross Profit, Operating Income, Net Earnings Attributable to VPG Stockholders and Diluted Earnings Per Share** | **Reconciliation of Consolidated Adjusted Gross Profit, Operating Income, Net Earnings Attributable to VPG Stockholders and Diluted Earnings Per Share** | **Reconciliation of Consolidated Adjusted Gross Profit, Operating Income, Net Earnings Attributable to VPG Stockholders and Diluted Earnings Per Share** | **Reconciliation of Consolidated Adjusted Gross Profit, Operating Income, Net Earnings Attributable to VPG Stockholders and Diluted Earnings Per Share** | **Reconciliation of Consolidated Adjusted Gross Profit, Operating Income, Net Earnings Attributable to VPG Stockholders and Diluted Earnings Per Share** | | | | |
| *(Unaudited - In thousands except per share data)* | *(Unaudited - In thousands except per share data)* | *(Unaudited - In thousands except per share data)* | *(Unaudited - In thousands except per share data)* |  |  |  |  |  |
|  | **Gross Profit** | **Gross Profit** | **Operating Income** | **Operating Income** | **Net Earnings Attributable to VPG Stockholders** | **Net Earnings Attributable to VPG Stockholders** | **Diluted Earnings Per share** | **Diluted Earnings Per share** |
| **Fiscal Year Ended December 31,** | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| As reported - GAAP | **149602** | 125142 | **43799** | 27372 | $**36063** | $20221 | $**2.63** | $1.48 |
| As reported - GAAP Margins | **41.3%** | 39.4% | **12.1%** | 8.6% |  |  |  |  |
| Acquisition purchase accounting adjustments | **1550** | 2775 | **1550** | 2775 | **1550** | 2775 | 0.11 | 0.20 |
| Acquisition costs |  |  | **—** | 1198 | **—** | 1198 |  | 0.09 |
| COVID-19 impact | **138** | (66) | **138** | (574) | **138** | (574) | 0.01 | (0.04) |
| Start-up costs | **150** | 3174 | **150** | 3174 | **150** | 3174 | 0.01 | 0.23 |
| Impairment of goodwill and indefinite-lived intangibles |  |  | **—** | 1223 | **—** | 1223 |  | 0.09 |
| Restructuring costs |  |  | **1518** | 76 | **1518** | 76 | 0.11 | 0.01 |
| Foreign exchange (gain)/loss |  |  |  |  | **(3579)** | 109 | (0.26) | 0.01 |
| Less: Tax effect of reconciling items and discrete tax items |  |  |  |  | **(44)** | 2596 | (0.01) | 0.20 |
| As Adjusted - Non GAAP | $**151440** | $131025 | $**47155** | $35244 | $**35884** | $25606 | $2.62 | $1.87 |
| As Adjusted - Non GAAP Margins | **41.8%** | 41.2% | **13.0%** | 11.1% |  |  |  |  |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Gross Profit** | **Gross Profit** | **Operating Income** | **Operating Income** | **Net Earnings Attributable to VPG Stockholders** | **Net Earnings Attributable to VPG Stockholders** | **Diluted Earnings Per share** | **Diluted Earnings Per share** |
| **Fiscal Quarter Ended December 31,** | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| As reported - GAAP | $39698 | $34877 | $**13049** | $8744 | $**8834** | $5961 | **0.65** | $0.44 |
| As reported - GAAP Margins | **41.2%** | 38.7% | **13.6%** | 9.7% |  |  |  |  |
| Acquisition purchase accounting adjustments | **240** | 516 | **240** | 516 | **240** | 516 | **0.02** | 0.04 |
| Acquisition costs |  |  | **—** |  | **—** |  | **—** |  |
| COVID-19 impact | **—** | **—** | **—** |  | **—** |  | **—** |  |
| Start-up costs | **—** | **916** | **—** | 916 | **—** | 916 | **—** | 0.07 |
| Impairment of goodwill and indefinite-lived intangibles |  |  | **—** |  | **—** |  | **—** |  |
| Restructuring costs |  |  | **188** | 76 | **188** | 76 | **0.01** | 0.01 |
| Foreign exchange (gain)/loss |  |  |  |  | **1616** | 632 | **0.11** | 0.04 |
| Less: Tax effect of reconciling items and discrete tax items |  |  |  |  | **452** | 436 | **0.03** | 0.04 |
| As Adjusted - Non GAAP | $**39938** | $36309 | $**13477** | $10252 | $**10426** | $7665 | $**0.76** | $0.56 |
| As Adjusted - Non GAAP Margins | **41.5%** | 40.3% | **14.0%** | 11.4% |  |  |  |  |

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| | | | |
|:---|:---|:---|:---|
| **VISHAY PRECISION GROUP, INC.** | **VISHAY PRECISION GROUP, INC.** | | |
| Reconciliation of Adjusted Gross Profit by segment | Reconciliation of Adjusted Gross Profit by segment |  |  |
| *(Unaudited - In thousands)* |  |  |  |
|  | **Fiscal quarter ended** | **Fiscal quarter ended** | **Fiscal quarter ended** |
|  | **December 31, 2022** | **December 31, 2021** | **October 1, 2022** |
| **Sensors** |  |  |  |
| As reported - GAAP | $**13645** | $**10954** | $**15324** |
| As reported - GAAP Margins | **37.6%** | **32.1%** | **40.5%** |
| Start-up costs | **—** | **916** | **—** |
| As Adjusted - Non GAAP | $**13645** | $**11870** | $**15324** |
| As Adjusted - Non GAAP Margins | **37.6%** | **34.8%** | **40.5%** |
| **Weighing Solutions** |  |  |  |
| As reported - GAAP | $**11043** | $**10913** | $**10470** |
| As reported - GAAP Margins | **33.4%** | **34.0%** | **33.3%** |
| As Adjusted - Non GAAP | $**11043** | $**10913** | $**10470** |
| As Adjusted - Non GAAP Margins | **33.4%** | **34.0%** | **33.3%** |
| **Measurement Systems** |  |  |  |
| As reported - GAAP | $**15009** | $**13012** | $**11526** |
| As reported - GAAP Margins | **55.9%** | **54.7%** | **55.5%** |
| Acquisition purchase accounting adjustments | **240** | **516** | **260** |
| As Adjusted - Non GAAP | $**15249** | $**13528** | $**11786** |
| As Adjusted - Non GAAP Margins | **56.8%** | **56.8%** | **56.7%** |

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| | | | |
|:---|:---|:---|:---|
| **VISHAY PRECISION GROUP, INC.** | **VISHAY PRECISION GROUP, INC.** | | |
| Reconciliation of Adjusted EBITDA | Reconciliation of Adjusted EBITDA |  |  |
| *(Unaudited - In thousands)* |  |  |  |
|  | **Fiscal quarter ended** | **Fiscal quarter ended** | **Fiscal quarter ended** |
|  | **December 31, 2022** | **December 31, 2021** | **October 1, 2022** |
| Net earnings attributable to VPG stockholders | $8834 | $5961 | $10118 |
| Interest Expense | 876 | 324 | 636 |
| Income tax expense | 1884 | 1781 | 2323 |
| Depreciation | 2882 | 2993 | 2937 |
| Amortization | 952 | 970 | 960 |
| EBITDA | 15428 | $12029 | $16974 |
| EBITDA MARGIN | 16.0% | 13.4% | 18.8% |
| Acquisition purchase accounting adjustments | 240 | 516 | 260 |
| Restructuring costs | 188 | 76 | 165 |
| Start-up costs |  | 916 |  |
| Foreign exchange loss/(gain) | 1616 | 632 | (1261) |
| ADJUSTED EBITDA | 17472 | 14169 | 16138 |
| ADJUSTED EBITDA MARGIN | 18.2% | 15.7% | 17.9% |

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| | | |
|:---|:---|:---|
| **VISHAY PRECISION GROUP, INC.** | **VISHAY PRECISION GROUP, INC.** | |
| Reconciliation of Adjusted EBITDA | Reconciliation of Adjusted EBITDA |  |
| *(Unaudited - In thousands)* |  |  |
|  | **Year ended** | **Year ended** |
|  | **December 31, 2022** | **December 31, 2021** |
| Net earnings attributable to VPG stockholders | $36063 | $20221 |
| Interest Expense | 2269 | 1230 |
| Income tax expense | 8535 | 5469 |
| Depreciation | 11504 | 11684 |
| Amortization | 3849 | 3312 |
| EBITDA | 62220 | $41916 |
| EBITDA MARGIN | 17.2% | 13.2% |
| Impairment of goodwill and indefinite-lived intangibles |  | 1223 |
| Acquisition purchase accounting adjustments | 1550 | 2775 |
| Acquisition costs |  | 1198 |
| Restructuring costs | 1518 | 76 |
| COVID-19 impact | 138 | (574) |
| Start-up costs | 150 | 3174 |
| Foreign exchange (gain) loss | (3579) | 109 |
| ADJUSTED EBITDA | 61997 | 49897 |
| ADJUSTED EBITDA MARGIN | 17.1% | 15.7% |

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