• Vishay Intertechnology Reports Second Quarter 2023 Results

    Source: Nasdaq GlobeNewswire / 09 Aug 2023 07:05:00   America/New_York

    MALVERN, Pa., Aug. 09, 2023 (GLOBE NEWSWIRE) -- Vishay Intertechnology, Inc., (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive electronic components, today announced results for the fiscal second quarter ended July 1, 2023.

    Highlights

    • 2Q 2023 revenues of $892.1 million
    • 2Q 2023 EPS of $0.68
    • 2Q 2023 book-to-bill of 0.69
    • Backlog at quarter end was 6.4 months
    • Returned a total of $34.2 million to stockholders

    “For the second quarter Vishay posted solid results, with revenue increasing 2.4% over the first quarter and 3.3% over last year’s second quarter, reflecting sustained momentum in automotive end markets for Vishay products that support increased electronic content, ADAS features and EV production along with improved order flow for legacy automotive programs as supply chain bottlenecks have eased,” said Joel Smejkal, President and CEO.

    “Since the beginning of the year we have been resolute in pushing forward with our plans in 2023 to stage Vishay to be ready for the next phase of end market demand from the megatrends of connectivity, mobility and sustainability,” added Mr. Smejkal. “We are committed to putting significant amount of capital to work between 2023 and 2025 to add incremental capacity to support our highest growth and margin product lines and to introducing Vishay solutions that more fully leverage our broad portfolio of semiconductors and passives. By executing these and other initiatives, we are keenly focused on changing Vishay’s financial profile, producing faster revenue growth and higher returns over the next couple of years.”

    3Q 2023 Outlook
    For the third quarter of 2023, management expects revenues in the range of $840 million and $880 million and a gross profit margin in the range of 27.7% +/- 50 basis points.

    Conference Call
    Management will host a conference call today, August 9, 2023, at 9:00 a.m. ET to discuss second quarter 2023 results. The dial-in number for the conference call is 877-407-0989 (+1 201-389-0921, if calling from outside the United States) and the access code is 13739575. Interested parties may also access a real-time webcast through the Investor Relations section of the company’s website at http://ir.vishay.com. A presentation accompanying management’s prepared remarks will be posted approximately 30 minutes before the conference call starts. For interested parties who are unable to join the live call, there will be a replay of the conference call from 12:00 p.m. ET on Wednesday, August 9, 2023, through 11:59 p.m. ET on Wednesday, August 23, 2023. The telephone number for the replay is +1 877-660-6853 (+1 201-612-7415, if calling from outside the United States or Canada) and the access code is 13739575.

    About Vishay
    Vishay manufactures one of the world’s largest portfolios of discrete semiconductors and passive electronic components that are essential to innovative designs in the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets. Serving customers worldwide, Vishay is The DNA of tech.™ Vishay Intertechnology, Inc. is a Fortune 1,000 Company listed on the NYSE (VSH). More on Vishay at www.Vishay.com.

    This press release includes certain financial measures which are not recognized in accordance with U.S. generally accepted accounting principles ("GAAP"), including adjusted net earnings; adjusted earnings per share; adjusted gross margin; adjusted operating margin; free cash; earnings before interest, taxes, depreciation and amortization ("EBITDA"); adjusted EBITDA; and adjusted EBITDA margin; which are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. These non-GAAP measures supplement our GAAP measures of performance or liquidity and should not be viewed as an alternative to GAAP measures of performance or liquidity. Non-GAAP measures such as adjusted net earnings, adjusted earnings per share, adjusted gross margin, adjusted operating margin, free cash, EBITDA, adjusted EBITDA, and adjusted EBITDA margin do not have uniform definitions. These measures, as calculated by Vishay, may not be comparable to similarly titled measures used by other companies. Management believes that such measures are meaningful to investors because they provide insight with respect to intrinsic operating results of the Company. Although the terms "free cash" and "EBITDA" are not defined in GAAP, the measures are derived using various line items measured in accordance with GAAP. Reconciling items to arrive at adjusted net earnings represent significant charges or credits that are important to understanding the Company's intrinsic operations. Reconciling items to calculate adjusted gross margin, adjusted operating margin and adjusted EBITDA represent those same items used in computing adjusted net earnings, as relevant. Furthermore, the presented calculation of adjusted EBITDA is substantially similar to, but not identical to, a measure used in the calculation of financial ratios required for covenant compliance under Vishay's revolving credit facility. These reconciling items are indicated on the accompanying reconciliation schedules and are more fully described in the Company's financial statements presented in its annual report on Form 10-K and its quarterly reports presented on Forms 10-Q.

    Statements contained herein that relate to the Company's future performance, including forecasted revenues and margins, capital investment, capacity expansion, stockholder returns, and the performance of the economy in general, are forward-looking statements within the safe harbor provisions of Private Securities Litigation Reform Act of 1995. Words and expressions such as “guide,” “will,” “expect,” “focus,” “committed” or other similar words or expressions often identify forward-looking statements. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions, many of which are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance, or achievements may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions; manufacturing or supply chain interruptions or changes in customer demand because of COVID-19 or otherwise; delays or difficulties in implementing our cost reduction strategies; delays or difficulties in expanding our manufacturing capacities; an inability to attract and retain highly qualified personnel; changes in foreign currency exchange rates; uncertainty related to the effects of changes in foreign currency exchange rates; competition and technological changes in our industries; difficulties in new product development; difficulties in identifying suitable acquisition candidates, consummating a transaction on terms which we consider acceptable, and integration and performance of acquired businesses; changes in U.S. and foreign trade regulations and tariffs, and uncertainty regarding the same; changes in applicable domestic and foreign tax regulations, and uncertainty regarding the same; changes in applicable accounting standards and other factors affecting our operations that are set forth in our filings with the Securities and Exchange Commission, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    The DNA of tech™ is a trademark of Vishay Intertechnology.

    Contact:
    Vishay Intertechnology, Inc.
    Peter Henrici
    Executive Vice President, Corporate Development
    +1-610-644-1300


    VISHAY INTERTECHNOLOGY, INC.     
    Summary of Operations     
    (Unaudited - In thousands, except per share amounts)     
          
     Fiscal quarters ended
     July 1, 2023 April 1, 2023 July 2, 2022
          
    Net revenues$892,110  $871,046  $863,512 
    Costs of products sold* 634,637   592,333   602,289 
    Gross profit 257,473   278,713   261,223 
    Gross margin 28.9%  32.0%  30.3%
          
    Selling, general, and administrative expenses* 122,857   120,145   110,400 
    Operating income 134,616   158,568   150,823 
    Operating margin 15.1%  18.2%  17.5%
          
    Other income (expense):     
    Interest expense (6,404)  (5,120)  (4,307)
    Other 5,257   3,329   1,380 
    Total other income (expense) - net (1,147)  (1,791)  (2,927)
          
    Income before taxes 133,469   156,777   147,896 
          
    Income tax expense 38,054   44,588   35,127 
          
    Net earnings 95,415   112,189   112,769 
          
    Less: net earnings attributable to noncontrolling interests 377   408   381 
          
    Net earnings attributable to Vishay stockholders$95,038  $111,781  $112,388 
          
    Basic earnings per share attributable to Vishay stockholders$0.68  $0.79  $0.78 
          
    Diluted earnings per share attributable to Vishay stockholders$0.68  $0.79  $0.78 
          
    Weighted average shares outstanding - basic 139,764   140,636   143,996 
          
    Weighted average shares outstanding - diluted 140,478   141,251   144,397 
          
    Cash dividends per share$0.10  $0.10  $0.100 
          
    * The fiscal quarter ended July 2, 2022 includes incremental costs of products sold and selling, general, and administrative expenses separable from normal operations directly attributable to the COVID-19 pandemic of $6,661 and $546, respectively.
          


    VISHAY INTERTECHNOLOGY, INC.   
    Summary of Operations   
    (Unaudited - In thousands, except per share amounts)   
        
     Six fiscal months ended
     July 1, 2023 July 2, 2022
        
    Net revenues$1,763,156  $1,717,305 
    Costs of products sold* 1,226,970   1,196,974 
    Gross profit 536,186   520,331 
    Gross margin 30.4%  30.3%
        
    Selling, general, and administrative expenses* 243,002   223,255 
    Operating income 293,184   297,076 
    Operating margin 16.6%  17.3%
        
    Other income (expense):   
    Interest expense (11,524)  (8,529)
    Other 8,586   (4,371)
    Total other income (expense) - net (2,938)  (12,900)
        
    Income before taxes 290,246   284,176 
        
    Income tax expense 82,642   67,457 
        
    Net earnings 207,604   216,719 
        
    Less: net earnings attributable to noncontrolling interests 785   758 
        
    Net earnings attributable to Vishay stockholders$206,819  $215,961 
        
    Basic earnings per share attributable to Vishay stockholders$1.48  $1.49 
        
    Diluted earnings per share attributable to Vishay stockholders$1.47  $1.49 
        
    Weighted average shares outstanding - basic 140,201   144,527 
        
    Weighted average shares outstanding - diluted 140,865   144,978 
        
    Cash dividends per share$0.20  $0.20 
        
    * The six fiscal months ended July 2, 2022 includes incremental costs of products sold and selling, general, and administrative expenses separable from normal operations directly attributable to the COVID-19 pandemic of $6,661 and $546, respectively.
        


    VISHAY INTERTECHNOLOGY, INC.   
    Consolidated Condensed Balance Sheets   
    (In thousands)   
        
     July 1,
    2023    		 December 31,
    2022
     (Unaudited)  
    Assets   
    Current assets:   
    Cash and cash equivalents$1,089,420  $610,825 
    Short-term investments 14,366   305,272 
    Accounts receivable, net 453,250   416,178 
    Inventories:   
    Finished goods 169,775   156,234 
    Work in process 278,645   261,345 
    Raw materials 211,619   201,300 
    Total inventories 660,039   618,879 
        
    Prepaid expenses and other current assets 178,177   170,056 
    Total current assets 2,395,252   2,121,210 
        
    Property and equipment, at cost:   
    Land 76,872   75,907 
    Buildings and improvements 696,754   658,829 
    Machinery and equipment 2,961,214   2,857,636 
    Construction in progress 224,453   243,038 
    Allowance for depreciation (2,786,772)  (2,704,951)
      1,172,521   1,130,459 
        
    Right of use assets 131,460   131,193 
    Deferred income taxes 106,210   104,667 
    Goodwill 203,940   201,432 
    Other intangible assets, net 75,111   77,896 
    Other assets 102,967   98,796 
    Total assets$4,187,461  $3,865,653 
        


    VISHAY INTERTECHNOLOGY, INC.   
    Consolidated Condensed Balance Sheets (continued)  
    (In thousands)   
        
     July 1,
    2023    		 December 31,
    2022
     (Unaudited)  
        
    Liabilities and equity   
    Current liabilities:   
    Trade accounts payable$234,004  $189,099 
    Payroll and related expenses 164,961   166,079 
    Lease liabilities 26,117   25,319 
    Other accrued expenses 249,382   261,606 
    Income taxes 83,910   84,155 
    Total current liabilities 758,374   726,258 
        
    Long-term debt less current portion 639,668   500,937 
    U.S. transition tax payable 46,117   83,010 
    Deferred income taxes 133,996   117,183 
    Long-term lease liabilities 107,149   108,493 
    Other liabilities 98,693   92,530 
    Accrued pension and other postretirement costs 189,022   187,092 
    Total liabilities 1,973,019   1,815,503 
        
    Equity:   
    Vishay stockholders' equity   
    Common stock 13,316   13,291 
    Class B convertible common stock 1,210   1,210 
    Capital in excess of par value 1,354,753   1,352,321 
    Retained earnings 952,062   773,228 
    Treasury stock (at cost) (123,371)  (82,972)
    Accumulated other comprehensive income (loss) 12,655   (10,827)
    Total Vishay stockholders' equity 2,210,625   2,046,251 
    Noncontrolling interests 3,817   3,899 
    Total equity 2,214,442   2,050,150 
    Total liabilities and equity$4,187,461  $3,865,653 
        


    VISHAY INTERTECHNOLOGY, INC.   
    Consolidated Condensed Statements of Cash Flows   
    (Unaudited - In thousands) 
     Six fiscal months ended
     July 1, 2023 July 2, 2022
        
    Operating activities   
    Net earnings$207,604  $216,719 
    Adjustments to reconcile net earnings to net cash provided by operating activities:   
    Depreciation and amortization 87,694   80,967 
    (Gain) loss on disposal of property and equipment (495)  (293)
    Inventory write-offs for obsolescence 18,023   10,777 
    Stock compensation expense 6,082   4,889 
    Deferred income taxes 16,166   5,922 
    Other (811)  1,844 
    Change in U.S. transition tax liability (27,670)  (14,757)
    Change in repatriation tax liability -   (25,201)
    Changes in operating assets and liabilities (69,461)  (172,555)
    Net cash provided by operating activities 237,132   108,312 
        
    Investing activities   
    Purchase of property and equipment (117,250)  (95,700)
    Proceeds from sale of property and equipment 1,013   377 
    Purchase of businesses, net of cash acquired (5,003)  - 
    Purchase of short-term investments (41)  (7,769)
    Maturity of short-term investments 293,282   66,763 
    Other investing activities (892)  (199)
    Net cash provided by (used in) investing activities 171,109   (36,528)
        
    Financing activities   
    Debt issuance costs (6,120)  - 
    Net proceeds (payments) on revolving credit lines 143,000   6,000 
    Dividends paid to common stockholders (25,538)  (26,389)
    Dividends paid to Class B common stockholders (2,419)  (2,419)
    Repurchase of common stock held in treasury (40,399)  (36,161)
    Distributions to noncontrolling interests (867)  (733)
    Cash withholding taxes paid when shares withheld for vested equity awards (3,653)  (2,123)
    Net cash provided by (used in) financing activities 64,004   (61,825)
    Effect of exchange rate changes on cash and cash equivalents 6,350   (18,474)
        
    Net increase (decrease) in cash and cash equivalents 478,595   (8,515)
        
    Cash and cash equivalents at beginning of period 610,825   774,108 
    Cash and cash equivalents at end of period$1,089,420  $765,593 
        


    VISHAY INTERTECHNOLOGY, INC.         
    Reconciliation of Adjusted Earnings Per Share         
    (Unaudited - In thousands, except per share amounts)         
     Fiscal quarters ended Six fiscal months ended
     July 1, 2023 April 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
              
    GAAP net earnings attributable to Vishay stockholders$95,038 $111,781 $112,388  $206,819 $215,961 
              
    Reconciling items affecting gross profit:         
    Impact of the COVID-19 pandemic$- $- $6,661  $- $6,661 
              
    Other reconciling items affecting operating income:         
    Impact of the COVID-19 pandemic$- $- $546  $- $546 
              
    Reconciling items affecting tax expense (benefit):         
    Tax effects of pre-tax items above$- $- $(1,802) $- $(1,802)
              
              
    Adjusted net earnings$95,038 $111,781 $117,793  $206,819 $221,366 
              
    Adjusted weighted average diluted shares outstanding 140,478  141,251  144,397   140,865  144,978 
              
    Adjusted earnings per diluted share$0.68 $0.79 $0.82  $1.47 $1.53 
              
              


    VISHAY INTERTECHNOLOGY, INC.         
    Reconciliation of Free Cash         
    (Unaudited - In thousands)         
     Fiscal quarters ended Six fiscal months ended
     July 1, 2023 April 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
    Net cash provided by operating activities$107,239  $129,893  $74,727  $237,132  $108,312 
    Proceeds from sale of property and equipment 687   326   305   1,013   377 
    Less: Capital expenditures (71,676)  (45,574)  (59,791)  (117,250)  (95,700)
    Free cash$36,250  $84,645  $15,241  $120,895  $12,989 


    VISHAY INTERTECHNOLOGY, INC.         
    Reconciliation of EBITDA and Adjusted EBITDA         
    (Unaudited - In thousands)         
     Fiscal quarters ended Six fiscal months ended
     July 1, 2023 April 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
              
    GAAP net earnings attributable to Vishay stockholders$95,038  $111,781  $112,388  $206,819  $215,961 
    Net earnings attributable to noncontrolling interests 377   408   381   785   758 
    Net earnings$95,415  $112,189  $112,769  $207,604  $216,719 
              
    Interest expense$6,404  $5,120  $4,307  $11,524  $8,529 
    Interest income (6,292)  (5,944)  (789)  (12,236)  (1,350)
    Income taxes 38,054   44,588   35,127   82,642   67,457 
    Depreciation and amortization 44,393   43,301   40,317   87,694   80,967 
    EBITDA$177,974  $199,254  $191,731  $377,228  $372,322 
              
    Reconciling items         
    Impact of the COVID-19 pandemic$-  $-  $7,207  $-  $7,207 
              
    Adjusted EBITDA$177,974  $199,254  $198,938  $377,228  $379,529 
              
    Adjusted EBITDA margin** 19.9%  22.9%  23.0%  21.4%  22.1%
              
    ** Adjusted EBITDA as a percentage of net revenues         
              

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