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Note 11 - Segment Information
 6 Months Ended
Jun. 28, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 11– Segment Information

 

VPG reports in three reporting segments: Sensors, Weighing Solutions, and Measurement Systems. The Sensors segment is comprised of the foil resistor and strain gage operating segments. The Weighing Solutions segment is comprised of specialized modules and systems used to precisely measure weight, force torque, and pressure. The Measurement Systems segment is comprised of highly specialized systems for steel production, materials development, and safety testing.

 

The chief operating decision maker ("CODM") is our chief executive officer. The evaluation of the segments' performance is based on multiple performance measures including revenues and operating income, exclusive of certain items. Management believes that evaluating segment performance, excluding items such as restructuring, severance, impairment of goodwill and indefinite-lived intangible assets and amortization of intangible assets, acquisition costs, and other items is meaningful because they relate to occurrences or events that are outside of our core operations, and management believes that the use of these measures provides a consistent basis to evaluate our operating profitability and performance trends across comparable periods.

 

Note 11– Segment Information (continued)

 

The following table sets forth reporting segment information (in thousands):

 

   

Sensors

    

Weighing Solutions

    

Measurement Systems

    

Corporate/ Other

    

Total

  

Three Fiscal Months Ended June 28, 2025

                                        

Net third-party revenues

   $ 26,563     $ 29,428     $ 19,170     $ —     $ 75,161  

Intersegment revenues

     472       362       —       (834 )     —  

Total revenues

     27,035       29,790       19,170       (834 )     75,161  

Costs of products sold

     18,548       18,144       8,709       (834 )     44,567  

Gross profit

     8,487       11,646       10,461       —       30,594  

Research and development expenses

     1,086       1,395       2,911       —       5,392  

Segment selling, general, and administrative expenses (1)

     3,650       4,893       4,635       —       13,178  

Segment operating income

     3,751       5,358       2,915       —       12,024  

Other supplemental information:

                                        

Restructuring costs

     —       (15 )     15       185       185  

Depreciation and amortization expense

     1,555       730       1,077       493       3,855  

Capital expenditures

     764       213       504       50       1,531  
                                         

Three Fiscal Months Ended June 29, 2024

                                        

Net third-party revenues

   $ 28,869     $ 27,447     $ 21,043     $ —     $ 77,359  

Intersegment revenues

     528       —       —       (528 )     —  

Total revenues

     29,397       27,447       21,043       (528 )     77,359  

Costs of products sold

     18,331       17,137       10,012       (528 )     44,952  

Gross profit

     11,066       10,310       11,031       —       32,407  

Research and development expenses

     936       1,352       2,657       —       4,945  

Segment selling, general, and administrative expenses (1)

     4,006       4,820       4,818       —       13,644  

Segment operating income

     6,124       4,138       3,556       —       13,818  

Other supplemental information:

                                        

Restructuring costs

     —       —       —       —       —  

Depreciation and amortization expense

     1,567       838       1,071       440       3,916  

Capital expenditures

     1,292       322       325       159       2,098  

 

   

Sensors

    

Weighing Solutions

    

Measurement Systems

    

Corporate/ Other

    

Total

  

Six Fiscal Months Ended June 28, 2025

                                        

Net third-party revenues

   $ 53,620     $ 55,866     $ 37,416     $ —     $ 146,902  

Intersegment revenues

     831       362       —       (1,193 )     —  

Total revenues

     54,451       56,228       37,416       (1,193 )     146,902  

Costs of products sold

     37,817       34,865       17,773       (1,193 )     89,262  

Gross profit

     16,634       21,363       19,643       —       57,640  

Research and development expenses

     2,042       2,636       5,579       —       10,257  

Segment selling, general, and administrative expenses (1)

     7,456       9,450       9,040       —       25,946  

Segment operating income

     7,136       9,277       5,024       —       21,437  

Other supplemental information:

                                        

Restructuring costs

     152       53       15       360       580  

Depreciation and amortization expense

     3,197       1,543       2,148       1,001       7,889  

Capital expenditures

     1,442       429       636       78       2,585  
                                         

Six Fiscal Months Ended June 29, 2024

                                        

Net third-party revenues

   $ 58,283     $ 56,292     $ 43,567     $ —     $ 158,142  

Intersegment revenues

     1,011       —       —       (1,011 )     —  

Total revenues

     59,294       56,292       43,567       (1,011 )     158,142  

Costs of products sold

     37,495       34,715       19,442       (1,011 )     90,641  

Gross profit

     21,799       21,577       24,125       —       67,501  

Research and development expenses

     1,952       2,748       5,096       —       9,796  

Segment selling, general, and administrative expenses (1)

     8,224       9,894       9,089       —       27,207  

Segment operating income

     11,623       8,935       9,940       —       30,498  

Other supplemental information:

                                        

Restructuring costs

     542       —       —       240       782  

Depreciation and amortization expense

     3,186       1,666       2,141       866       7,859  

Capital expenditures

     1,862       438       415       377       3,092  

 

 

 

 

 

(1)

 
Segment selling, general and administrative expenses are direct selling, general and administrative expenses, excluding research and development expenses and amortization of intangible assets attributed to the segment.

 

 

Note 11– Segment Information (continued)

 

The following table reconciles segment profit to consolidated income before taxes (in thousands):

 

    Fiscal Quarter Ended    

Six Fiscal Months Ended

  
   

June 28, 2025

    

June 29, 2024

    

June 28, 2025

    

June 29, 2024

  

Segment operating income

   $ 12,024     $ 13,818     $ 21,437     $ 30,498  

Restructuring costs

   $ 185     $ —     $ 580     $ 782  

Unallocated G&A expenses

   $ 9,131     $ 7,912     $ 18,209     $ 16,892  

Operating income

   $ 2,708     $ 5,906     $ 2,648     $ 12,824  

Other (expense) income

   $ (1,812 )   $ 1,052     $ (3,039 )   $ 2,284  

Income (loss) before taxes

   $ 896     $ 6,958     $ (391 )   $ 15,108  

 

Products are transferred between segments on a basis intended to reflect, as nearly as practicable, the market value of the products. The table below summarizes intersegment sales (in thousands):

 

    Fiscal Quarter Ended    

Six Fiscal Months Ended

  
   

June 28, 2025

    

June 29, 2024

    

June 28, 2025

    

June 29, 2024

  

Sensors to Weighing Solutions

   $ 468     $ 522     $ 808     $ 991  

Sensors to Measurement Systems

     3       6       22       16