VPG Reports Fiscal 2021 Fourth Quarter and Twelve Month Results; New Strategy and Business Segmentation Announced

MALVERN, Pa., Feb. 15, 2022 (GLOBE NEWSWIRE) -- Vishay Precision Group, Inc. (NYSE: VPG), a leader in precision measurement technologies, today announced its results for its fiscal 2021 fourth quarter and twelve fiscal months ended December 31, 2021.

Fourth Quarter Highlights:

• Revenues of $90.0 million increased 19.3% from a year ago
• Earnings per diluted share were $0.44, as compared to $0.01 reported a year ago
• Adjusted diluted earnings per share* were $0.56, as compared to $0.43 reported a year ago
• Gross profit margin was 38.7%, as compared to 38.1% a year ago
• Adjusted gross profit margin* was 40.3%, as compared to 38.0% a year ago
• Operating margin was 9.7%, as compared to 7.8% reported a year ago
• Adjusted operating margin* was 11.4%, as compared to 10.7% reported a year ago
• Cash from operating activities was $15.5 million with adjusted free cash flow* of $9.6 million

2021 Full Year Highlights:

• Revenues of $317.9 million increased 17.8% year-over-year
• Earnings per diluted share were $1.48, as compared to $0.79 reported a year ago
• Adjusted diluted earnings per share* were $1.87, as compared to prior year $1.32 reported a year ago
• Gross profit margin was 39.4%, as compared to 38.6% a year ago
• Adjusted gross profit margin* was 41.2%, as compared to 39.0% a year ago
• Operating margin was 8.6%, as compared to 8.4% reported last year
• Adjusted operating margin* was 11.1%, as compared to 9.7% reported last year
• Cash from operating activities was $33.5 million with adjusted free cash flow* of $16.7 million

Ziv Shoshani, Chief Executive Officer of VPG, commented, "We delivered another strong quarter, which capped a successful year for VPG. Fiscal 2021 was one of best years in VPG’s history, as we grew our fiscal 2021 sales by 17.8% and our adjusted diluted EPS by 42.0%. In the fourth quarter, we grew our revenue and adjusted diluted earnings per share sequentially and compared to the fourth quarter a year ago. Order trends in the fourth quarter remained firm across the majority of our markets, as we ended the quarter with a book-to-bill of 1.06 and a record level backlog of $150.5 million."

The Company's fourth fiscal quarter 2021 net earnings attributable to VPG stockholders were $6.0 million, or $0.44 per diluted share, compared to $0.1 million, or $0.01 per diluted share, in the fourth fiscal quarter of 2020. Included in the fourth fiscal quarter 2020 was tax expense of $1.7 million, primarily related to the acquisition of Dynamic Systems, Inc. ("DSI") and other discrete tax items.

In the fiscal year ended December 31, 2021, net earnings attributable to VPG stockholders were $20.2 million, or $1.48 per diluted share, compared to $10.8 million, or $0.79 per diluted share, in the twelve fiscal months ended December 31, 2020. Included in the fiscal year ended December 31, 2020 was tax expense of $1.7 million, primarily related to the acquisition of DSI and other discrete tax items.

The fourth fiscal quarter 2021 adjusted net earnings* attributable to VPG stockholders were $7.7 million, or $0.56 per diluted share, compared to adjusted net earnings* attributable to VPG stockholders of $5.8 million, or $0.43 per diluted share, for the comparable prior year period.

In the fiscal year ended December 31, 2021, adjusted net earnings* attributable to VPG stockholders were $25.6 million, or $1.87 per diluted share, compared to adjusted net earnings* attributable to VPG stockholders of $18.0 million, or $1.32 per diluted share, for the comparable prior year period.

Change in Business Strategy and Reporting Segments

In addition, in the fourth quarter of fiscal 2021 we formally adopted a new operationally diversified structure and strategy, under which each of VPG's business segments maintains and deploys specific go-to-market strategies, technical expertise, capital requirements, and acquisition opportunities. As a result, we organized our business into three new reporting segments: Sensors, Weighing Solutions, and Measurement Systems.

Mr. Shoshani said: "We are excited to announce this next evolutionary step for VPG. We believe the timing is right for this change given the convergence of a broadening set of new applications with our expanding set of precision measurement solutions capabilities. Our change in strategy and structure will enable us to capture emerging opportunities driven by development of higher functionality in our customers' end products in semiconductor test and production, consumer technology, electrification, increased safety testing, and regulatory requirements, among others."

For the fourth quarter and fiscal year 2021, and on a go-forward basis, the Company is reporting its results in three new reporting segments: Sensors, Weighing Solutions, and Measurement Systems.

The Sensors segment is comprised of precision resistors and strain gages, including our advanced sensors.  

The Weighing Solutions segment is comprised of the force sensors, on-board weighing, and process weighing business lines.

The Measurement Systems segment is comprised of steel mill manufacturing productivity solutions (KELK), new metal alloy development systems (Dynamic Systems Inc.), data acquisition systems (Pacific Instruments) and safety testing solutions (Diversified Technical Systems).

Segment Performance

The Sensors segment revenues of $34.1 million in the fourth fiscal quarter of 2021 increased 7.1% from the prior year of $31.9 million and increased 11.2% sequentially from $30.7 million in the third quarter of 2021. The year-over-year increase in revenues was primarily attributable to an increase in our sales of precision resistors in the test and measurement and other markets, partially offset by lower sales in the avionics, military and space market. Sequentially, the increase in revenues reflected higher precision resistor sales in the test and measurement and avionics, military and space markets, and an increase mainly in our advanced sensors product line, primarily in our consumer-related markets.

Gross profit margin for the Sensors segment of 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) for the fourth fiscal quarter of 2021, was lower compared to 37.5% ( or 38.1% adjusted to exclude the impact of COVID-19) in the fourth fiscal quarter of 2020, and higher compared to 31.1% (or 34.3% adjusted to exclude the impact of $1.0 million of start-up costs related to our new advanced sensors facility) in the third fiscal quarter of 2021. The year-over-year decrease in adjusted gross profit margin* was primarily due to unfavorable foreign exchange rates, wage increases, and labor inefficiencies, partially offset by an increase in volume. Sequentially, adjusted gross profit margin* was higher than the third quarter of 2021 primarily due to an increase in volume, partially offset by unfavorable foreign exchange rates, wage increases, and labor inefficiencies.

The Weighing Solutions segment revenues of $32.1 million in the fourth fiscal quarter of 2021 increased 8.5% from $29.5 million in the prior year and 4.5% from $30.7 million in the third quarter of 2021. The year-over-year increase in revenues was primarily attributable to an increase in our OEM customers in the construction equipment market and an increase in our process weighing product line, partially offset by lower sales of our on-board weighing product lines. The sequential increase in revenues was primarily attributable to higher sales in the process weighing product lines, partially offset by lower sales in our on-board weighing product lines.

Gross profit margin for the Weighing Solutions segment was 34.0% for the fourth fiscal quarter of 2021, an increase compared to 33.3% (or 33.5% adjusted to exclude the impact of COVID-19) in the fourth fiscal quarter of 2020, and a decrease compared to 37.2% (or 37.6% adjusted to exclude the impact of COVID-19) in the third fiscal quarter of 2021. The year-over-year increase in adjusted gross profit margin* was primarily due to higher volume. Sequentially, adjusted gross profit margin* decreased primarily due to an unfavorable product mix, reduction of inventory, and higher material costs, partially offset by an increase in volume.

The Measurement Systems segment revenues in the fourth fiscal quarter of 2021 of $23.8 million increased 69.7% from $14.0 million in the prior year and increased 15.6% sequentially from $20.6 million. The year-over-year increase in revenues was primarily attributable to the acquisition of Diversified Technical Systems, Inc. ("DTS") and higher KELK and DSI steel-related sales. The sequential increase in revenue was primarily attributable to higher KELK steel related sales and DTS products.

Gross profit margin for the Measurement Systems segment was 54.7% (or 56.8% adjusted to exclude the $0.5 million of purchasing accounting adjustments related to the DTS acquisition) for the fourth fiscal quarter of 2021, compared to 49.5% (or 47.2% adjusted to exclude the purchasing accounting adjustments related to the DSI acquisition and $(0.3) million impact of COVID-19) in the fourth fiscal quarter of 2020, and compared to 52.8% (or 59.2% adjusted to exclude the $1.3 million of purchasing accounting adjustments related to the DTS acquisition) from the third fiscal quarter of 2021. The year-over-year increase in adjusted gross profit margin* was primarily due to higher revenue coming from DTS, which was acquired on June 1, 2021. The sequential decrease in adjusted gross profit margin* was due to unfavorable product mix and inventory reductions, partially offset by higher volume.

Impacts From the Global COVID-19 Pandemic

As of February 15, 2022, all of the Company’s facilities are operating without limitations with the Company implementing COVID-19 best practices with respect to working conditions and enabling some employees to work remotely where possible. Nonetheless, given the impacts to date and the ongoing uncertainty concerning the magnitude of the impact and duration of the COVID-19 pandemic, the ongoing economic disruption may adversely affect the Company’s business and financial results in future periods.

Near-Term Outlook

“For the first fiscal quarter of 2022, at constant fourth fiscal quarter 2021 exchange rates, we expect net revenues to be in the range of $83 million to $91 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 the impacts of COVID-19 costs. We define "adjusted operating margin" as operating margin before purchase accounting adjustments, start-up costs, COVID-19 costs, impairment of goodwill and indefinite-lived-intangible assets, acquisition costs 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, start-up costs, COVID-19 costs, impairment of goodwill and indefinite-lived-intangible assets, acquisition costs, restructuring costs, foreign exchange gains and losses, and associated tax effects. We define "Adjusted EBITDA" as earnings before interest, taxes, depreciation, and amortization before purchase accounting adjustments, start-up costs, COVID-19 costs, impairment of goodwill and indefinite-lived-intangible assets, acquisition costs, restructuring costs, and foreign exchange gains and losses.

"Adjusted free cash flow" for the fourth fiscal quarter of 2021 is defined as the amount of cash generated from operating activities ($15.5 million), in excess of our capital expenditures ($5.9 million), net of proceeds, if any, from the sale of assets ($0.0 million). "Adjusted free cash flow" for the fiscal year of 2021 is defined as the amount of cash generated from operating activities ($33.5 million) in excess of our capital expenditures ($17.1 million), net of proceeds, if any, from the sale of assets ($0.2 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 16, 2022) at 9:00 a.m. ET (8:00 a.m. CT). To access the conference call, interested parties may call 1-888-317-6003 or internationally 1-412-317-6061 and use passcode 5963923, 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 1-877-344-7529 or internationally 1-412-317-0088 and by using the passcode 3054532. 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

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 (including those regarding our new corporate strategy), 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, 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; 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; the Company’s 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; the Company’s ability to execute its business continuity, operational and budget plans in light of the COVID-19 pandemic; 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, 2020 and in our Quarterly Report on Form 10-Q for the fiscal quarter ended October 2, 2021. 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, Senior Director of Investor Relations Tel# 781-222-3516 Email: [email protected]

VISHAY PRECISION GROUP, INC.
Consolidated Statements of Operations
(Unaudited - In thousands, except per share amounts)
	Fiscal quarter ended
	December 31, 2021				December 31, 2020
Net revenues	$	90,017			$	75,445
Costs of products sold		55,140				46,698
Gross profit		34,877				28,747
Gross profit margin		38.7	%			38.1	%
Selling, general, and administrative expenses		26,057				20,181
Impairment of goodwill and indefinite-lived intangibles		—				2,440
Restructuring costs		76				205
Operating income		8,744				5,921
Operating margin		9.7	%			7.8	%
Other income (expense):
Interest expense		(324	)			(329	)
Other		(651	)			(2,353	)
Other expenses - net		(975	)			(2,682	)
Income before taxes		7,769				3,239
Income tax expense		1,781				3,142
Net earnings		5,988				97
Less: net loss (gain) attributable to noncontrolling interests		27				(21	)
Net earnings attributable to VPG stockholders	$	5,961			$	118
Basic earnings per share attributable to VPG stockholders	$	0.44			$	0.01
Diluted earnings per share attributable to VPG stockholders	$	0.44			$	0.01
Weighted average shares outstanding - basic		13,626				13,575
Weighted average shares outstanding - diluted		13,687				13,662

VISHAY PRECISION GROUP, INC.
Consolidated Statements of Operations
(Unaudited - In thousands, except per share amounts)
	Years ended
	December 31, 2021				December 31, 2020
Net revenues	$	317,919			$	269,812
Costs of products sold		192,777				165,541
Gross profit		125,142				104,271
Gross profit margin		39.4	%			38.6	%
Selling, general, and administrative expenses		95,273				78,256
Acquisition costs		1,198				—
Impairment of goodwill and indefinite-lived intangibles		1,223				2,440
Restructuring costs		76				918
Operating income		27,372				22,657
Operating margin		8.6	%			8.4	%
Other income (expense):
Interest expense		(1,230	)			(1,366	)
Other		(230	)			(2,982	)
Other expenses - net		(1,460	)			(4,348	)
Income before taxes		25,912				18,309
Income tax expense		5,469				7,509
Net earnings		20,443				10,800
Less: net earnings attributable to noncontrolling interests		222				13
Net earnings attributable to VPG stockholders	$	20,221			$	10,787
Basic earnings per share attributable to VPG stockholders	$	1.49			$	0.80
Diluted earnings per share attributable to VPG stockholders	$	1.48			$	0.79
Weighted average shares outstanding - basic		13,616				13,566
Weighted average shares outstanding - diluted		13,657				13,623

VISHAY PRECISION GROUP, INC.
Consolidated Balance Sheets
(In thousands, except per share amounts)
	December 31, 2021				December 31, 2020
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	84,335			$	98,438
Accounts receivable		58,265				45,339
Inventories:
Raw materials		25,464				21,894
Work in process		23,851				21,534
Finished goods		27,112				18,920
Inventories		76,427				62,348
Prepaid expenses and other current assets		15,916				15,761
Total current assets		234,943				221,886
Property and equipment, at cost:
Land		4,241				4,282
Buildings and improvements		68,778				67,581
Machinery and equipment		122,202				115,717
Software		8,871				10,026
Construction in progress		7,747				6,341
Accumulated depreciation		(130,619	)			(128,931	)
Property and equipment, net		81,220				75,016
Goodwill		45,830				31,105
Intangible assets, net		52,437				32,039
Operating lease right-of-use assets		27,764				21,788
Other assets		19,695				20,053
Total assets	$	461,889			$	401,887

VISHAY PRECISION GROUP, INC.
Consolidated Balance Sheets
(In thousands, except per share amounts)
	December 31, 2021				December 31, 2020
	(Unaudited)
Liabilities and equity
Current liabilities:
Trade accounts payable	$	14,876			$	10,487
Payroll and related expenses		23,772				17,595
Other accrued expenses		17,596				13,843
Income taxes		3,774				1,593
Current portion of operating lease liabilities		4,610				4,011
Current portion of long-term debt		—				18
Total current liabilities		64,628				47,547
Long-term debt, less current portion		60,714				40,626
Deferred income taxes		5,848				3,403
Operating lease liabilities		25,140				19,504
Other liabilities		16,264				16,263
Accrued pension and other postretirement costs		12,253				16,687
Total liabilities		184,847				144,030
Commitments and contingencies
Equity:
Preferred stock						—
Common stock		1,322				1,317
Class B convertible common stock		103				103
Treasury stock		(8,765	)			(8,765	)
Capital in excess of par value		199,151				197,764
Retained earnings		120,296				100,075
Accumulated other comprehensive loss		(35,008	)			(32,671	)
Total Vishay Precision Group, Inc. stockholders' equity		277,099				257,823
Noncontrolling interests		(57	)			34
Total equity		277,042				257,857
Total liabilities and equity	$	461,889			$	401,887

VISHAY PRECISION GROUP, INC.
Consolidated Statements of Cash Flows
(Unaudited - In thousands)
	Years ended
	December 31, 2021				December 31, 2020
Operating activities
Net earnings	$	20,443			$	10,800
Adjustments to reconcile net earnings to net cash provided by operating activities:
Impairment of goodwill and indefinite-lived intangibles		1,223				2,440
Depreciation and amortization		14,996				12,507
Loss from extinguishment of debt		—				30
Gain on disposal of property and equipment		(5	)			(130	)
Share-based compensation expense		2,244				1,387
Inventory write-offs for obsolescence		2,288				2,525
Deferred income taxes		(3,256	)			1,153
Other		(2,605	)			1,735
Net changes in operating assets and liabilities, net of acquisition:
Accounts receivable		(8,038	)			(753	)
Inventories		(8,626	)			2,986
Prepaid expenses and other current assets		(56	)			67
Trade accounts payable		3,292				59
Other current liabilities		11,637				507
Net cash provided by operating activities		33,537				35,313
Investing activities
Capital expenditures		(17,061	)			(22,949	)
Proceeds from sale of property and equipment		231				983
Purchase of business		(47,216	)			156
Net cash used in investing activities		(64,046	)			(21,810	)
Financing activities
Proceeds from long-term debt		20,000				—
Principal payments on long-term debt		(18	)			(3,493	)
Debt issuance costs		—				(402	)
Purchase of non-controlling interest		—				(253	)
Distributions to noncontrolling interests		(313	)			(70	)
Payments of employee taxes on certain share-based arrangements		(853	)			(813	)
Net cash (used in) provided by financing activities		18,816				(5,031	)
Effect of exchange rate changes on cash and cash equivalents		(2,410	)			3,056
(Decrease) increase in cash and cash equivalents		(14,103	)			11,528
Cash and cash equivalents at beginning of year		98,438				86,910
Cash and cash equivalents at end of year	$	84,335			$	98,438
Supplemental disclosure of investing transactions:
Capital expenditures purchased	$	(17,567	)		$	(24,327	)
Capital expenditures accrued but not yet paid	$	3,068			$	2,561

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 except per share data)
	Gross Profit								Operating Income								Net Earnings Attributable to VPG Stockholders								Diluted Earnings Per share
Fiscal Year Ended December 31,		2021				2020				2021				2020				2021				2020				2021				2020
As reported - GAAP		125,142				104,271				27,372				22,657			$	20,221			$	10,787			$	1.48			$	0.79
As reported - GAAP Margins		39.4	%			38.6	%			8.6	%			8.4	%
Acquisition purchase accounting adjustments		2,775				569				2,775				569				2,775				569				0.20				0.04
Acquisition costs										1,198				—				1,198				—				0.09				—
COVID-19 impact		(66	)			434				(574	)			(366	)			(574	)			(366	)			(0.04	)			(0.03	)
Start-up costs		3,174				—				3,174				—				3,174				—				0.23				—
Impairment of goodwill and indefinite-lived intangibles										1,223				2,440				1,223				2,440				0.09				0.18
Restructuring costs										76				918				76				918				0.01				0.07
Foreign exchange (gain)/loss																		109				2,246				0.01				0.16
Less: Tax effect of reconciling items and discrete tax items																		2,596				(1,381	)			0.20				(0.11	)
As Adjusted - Non GAAP	$	131,025			$	105,274			$	35,244			$	26,218			$	25,606			$	17,975			$	1.87			$	1.32
As Adjusted - Non GAAP Margins		41.2	%			39.0	%			11.1	%			9.7	%

	Gross Profit								Operating Income								Net Earnings Attributable to VPG Stockholders							Diluted Earnings Per share
Fiscal Quarter Ended December 31,		2021				2020				2021				2020				2021			2020				2021			2020
As reported - GAAP	$	34,877			$	28,747			$	8,744			$	5,921			$	5,961		$	118				0.44		$	0.01
As reported - GAAP Margins		38.7	%			38.1	%			9.7	%			7.8	%
Acquisition purchase accounting adjustments		516				9				516				9				516			9				0.04			—
Acquisition costs										—				—				—			—				—			—
COVID-19 impact		—				(102	)			—				(489	)			—			(489	)			—			(0.04	)
Start-up costs		916				—				916				—				916			—				0.07			—
Impairment of goodwill and indefinite-lived intangibles										—				2,440				—			2,440				—			0.18
Restructuring costs										76				205				76			205				0.01			0.02
Foreign exchange (gain)/loss																		632			2,123				0.04			0.16
Less: Tax effect of reconciling items and discrete tax items																		436			(1,419	)			0.04			(0.10	)
As Adjusted - Non GAAP	$	36,309			$	28,654			$	10,252			$	8,086			$	7,665		$	5,825			$	0.56		$	0.43
As Adjusted - Non GAAP Margins		40.3	%			38.0	%			11.4	%			10.7	%

VISHAY PRECISION GROUP, INC.
Reconciliation of Adjusted Gross Profit by segment
(Unaudited - In thousands)
	Fiscal quarter ended
	December 31, 2021				December 31, 2020				October 2, 2021
Sensors
As reported - GAAP	$	10,954			$	11,968			$	9,568
As reported - GAAP Margins		32.1	%			37.5	%			31.1	%
Start-up costs		916								970
COVID-19 impact		—				163				—
As Adjusted - Non GAAP	$	11,870			$	12,131			$	10,538
As Adjusted - Non GAAP Margins		34.8	%			38.1	%			34.3	%
Weighing Solutions
As reported - GAAP	$	10,913			$	9,832			$	11,422
As reported - GAAP Margins		34.0	%			33.3	%			37.2	%
COVID-19 impact		—				71				111
As Adjusted - Non GAAP	$	10,913			$	9,903			$	11,533
As Adjusted - Non GAAP Margins		34.0	%			33.5	%			37.6	%
Measurement Systems
As reported - GAAP	$	13,012			$	6,947			$	10,855
As reported - GAAP Margins		54.7	%			49.5	%			52.8	%
Acquisition purchase accounting adjustments		516				9				1,329
COVID-19 impact		—				(337	)			—
As Adjusted - Non GAAP	$	13,528			$	6,619			$	12,184
As Adjusted - Non GAAP Margins		56.8	%			47.2	%			59.2	%

VISHAY PRECISION GROUP, INC.
Reconciliation of Adjusted EBITDA
(Unaudited - In thousands)
	Fiscal quarter ended
	December 31, 2021				December 31, 2020				October 2, 2021
Net earnings attributable to VPG stockholders	$	5,961			$	118			$	5,379
Interest Expense		324				329				328
Income tax expense		1,781				3,142				1,662
Depreciation		2,993				2,558				2,955
Amortization		970				615				970
EBITDA		12,029			$	6,762			$	11,294
EBITDA MARGIN		13.4	%			9.0	%			13.8	%
Impairment of goodwill and indefinite-lived intangibles		—				2,440				—
Acquisition purchase accounting adjustments		516				9				1,329
Acquisition costs		—				—				—
Restructuring costs		76				205				—
COVID-19 impact		—				(489	)			111
Start-up costs		916				—				970
Foreign exchange (gain)/loss		632				2,123				38
ADJUSTED EBITDA		14,169				11,050				13,742
ADJUSTED EBITDA MARGIN		15.7	%			14.6	%			16.8	%