• Vishay Intertechnology Reports Third Quarter 2023 Results

    المصدر: Nasdaq GlobeNewswire / 08 نوفمبر 2023 08:15:36   America/New_York

    MALVERN, Pa., Nov. 08, 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 third quarter ended September 30, 2023.

    Highlights

    • 3Q 2023 revenues of $853.7 million
    • 3Q 2023 EPS of $0.47; adjusted EPS of $0.60
    • 3Q 2023 book-to-bill of 0.63
    • Backlog at quarter end was 5.5 months
    • Returned a total of $31.1 million to stockholders

    “During the third quarter, as expected, revenue decreased from the second quarter on inventory adjustments by our distribution and EMS customers in response to softened demand in industrial markets and contracting lead times. Nevertheless, we once again intentionally increased inventory with our distribution partners as we continued to execute our strategy of broadening our participation in this higher margin channel. The capacity readiness activities we have underway are increasing our value to the distribution channel and reliably supporting our accelerating design activities related to the megatrends of e-mobility, sustainability and connectivity,” said Joel Smejkal, President and Chief Executive Officer. “In addition, as announced separately today, we have signed a purchase agreement to acquire Newport wafer fab which will accelerate our plan to scale manufacturing and advance the technology differentiation of our silicon carbide MOSFETs.”

    4Q 2023 Outlook
    For the fourth quarter of 2023, management expects revenues in the range of $770 million and $810 million and a gross profit margin in the range of 25.5% +/- 50 basis points.

    Conference Call
    A conference call to discuss Vishay’s third quarter financial results is scheduled for Wednesday, November 8, 2023 at 9:00 a.m. ET. To participate in the live conference call, please pre-register at https://register.vevent.com/register/BI4d27675bed8e4ca8934830406b6e87c1. Upon registering, you will be emailed a dial-in number, and unique PIN.

    A live audio webcast of the conference call and a PDF copy of the press release and the quarterly presentation will be accessible directly from the Investor Relations section of the Vishay website at http://ir.vishay.com.

    There will be a replay of the conference call available on the Investor Relations website approximately one hour following the call and will remain available for 30 days.

    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,” 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 (including due to political, economic, and health instability and military conflicts and hostilities); 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; the timing of the Newport wafer fab acquisition; that the Newport wafer fab acquisition may not be consummated, including as a result of any of the conditions precedent (including the failure to obtain any required approvals or consents, or the exercise of certain third party purchase rights); global market downturn conditions and volatilities impacting the completion of the acquisition; that the fab will not be integrated successfully into the Company’s overall business; that the expected benefits of the acquisition may not be realized; that the fab’s standards, procedures and controls will not be brought into conformance within the Company’s operation; difficulties in transitioning and retaining fab employees following the acquisition; difficulties in consolidating facilities and transferring processes and know-how; the diversion of our management’s attention from the management of our current business; 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 
     September 30, 2023 July 1, 2023 October 1, 2022 
           
    Net revenues$853,653  $892,110  $924,798  
    Costs of products sold 616,010   634,637   635,260  
    Gross profit 237,643   257,473   289,538  
    Gross margin 27.8%  28.9%  31.3% 
           
    Selling, general, and administrative expenses 122,513   122,857   106,436  
    Operating income 115,130   134,616   183,102  
    Operating margin 13.5%  15.1%  19.8% 
           
    Other income (expense):      
    Interest expense (7,153)  (6,404)  (4,110) 
    Loss on early extinguishment of debt (18,874)  -   -  
    Other 7,409   5,257   2,137  
    Total other income (expense) - net (18,618)  (1,147)  (1,973) 
           
    Income before taxes 96,512   133,469   181,129  
           
    Income tax expense 30,557   38,054   40,566  
           
    Net earnings 65,955   95,415   140,563  
           
    Less: net earnings attributable to noncontrolling interests 426   377   502  
           
    Net earnings attributable to Vishay stockholders$65,529  $95,038  $140,061  
           
    Basic earnings per share attributable to Vishay stockholders$0.47  $0.68  $0.98  
           
    Diluted earnings per share attributable to Vishay stockholders$0.47  $0.68  $0.98  
           
    Weighted average shares outstanding - basic 139,083   139,764   142,887  
           
    Weighted average shares outstanding - diluted 140,001   140,478   143,447  
           
    Cash dividends per share$0.10  $0.10  $0.10  
           


    VISHAY INTERTECHNOLOGY, INC.    
    Summary of Operations    
    (Unaudited - In thousands, except per share amounts)    
         
     Nine fiscal months ended 
     September 30, 2023 October 1, 2022 
         
    Net revenues$2,616,809  $2,642,103  
    Costs of products sold* 1,842,980   1,832,234  
    Gross profit 773,829   809,869  
    Gross margin 29.6%  30.7% 
         
    Selling, general, and administrative expenses* 365,515   329,691  
    Operating income 408,314   480,178  
    Operating margin 15.6%  18.2% 
         
    Other income (expense):    
    Interest expense (18,677)  (12,639) 
    Loss on early extinguishment of debt (18,874)  -  
    Other 15,995   (2,234) 
    Total other income (expense) - net (21,556)  (14,873) 
         
    Income before taxes 386,758   465,305  
         
    Income tax expense 113,199   108,023  
         
    Net earnings 273,559   357,282  
         
    Less: net earnings attributable to noncontrolling interests 1,211   1,260  
         
    Net earnings attributable to Vishay stockholders$272,348  $356,022  
         
    Basic earnings per share attributable to Vishay stockholders$1.95  $2.47  
         
    Diluted earnings per share attributable to Vishay stockholders$1.94  $2.46  
         
    Weighted average shares outstanding - basic 139,828   143,983  
         
    Weighted average shares outstanding - diluted 140,577   144,470  
         
    Cash dividends per share$0.30  $0.30  
         
    * The nine fiscal months ended October 1, 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)    
         
     September 30, 2023 December 31, 2022 
     (Unaudited)   
    Assets    
    Current assets:    
    Cash and cash equivalents$1,095,119  $610,825  
    Short-term investments 78,994   305,272  
    Accounts receivable, net 442,646   416,178  
    Inventories:    
    Finished goods 165,936   156,234  
    Work in process 271,107   261,345  
    Raw materials 206,499   201,300  
    Total inventories 643,542   618,879  
         
    Prepaid expenses and other current assets 179,825   170,056  
    Total current assets 2,440,126   2,121,210  
         
    Property and equipment, at cost:    
    Land 76,139   75,907  
    Buildings and improvements 692,037   658,829  
    Machinery and equipment 2,973,943   2,857,636  
    Construction in progress 226,460   243,038  
    Allowance for depreciation (2,788,393)  (2,704,951) 
      1,180,186   1,130,459  
         
    Right of use assets 127,992   131,193  
    Deferred income taxes 128,109   104,667  
    Goodwill 200,895   201,432  
    Other intangible assets, net 72,126   77,896  
    Other assets 91,773   98,796  
    Total assets$4,241,207  $3,865,653  
         


    VISHAY INTERTECHNOLOGY, INC.    
    Consolidated Condensed Balance Sheets (continued)   
    (In thousands)    
         
     September 30, 2023 December 31, 2022 
     (Unaudited)   
         
    Liabilities and equity    
    Current liabilities:    
    Trade accounts payable$207,440  $189,099  
    Payroll and related expenses 162,113   166,079  
    Lease liabilities 26,097   25,319  
    Other accrued expenses 238,565   261,606  
    Income taxes 82,734   84,155  
    Total current liabilities 716,949   726,258  
         
    Long-term debt less current portion 817,257   500,937  
    U.S. transition tax payable 47,027   83,010  
    Deferred income taxes 138,628   117,183  
    Long-term lease liabilities 103,223   108,493  
    Other liabilities 92,896   92,530  
    Accrued pension and other postretirement costs 182,704   187,092  
    Total liabilities 2,098,684   1,815,503  
         
    Equity:    
    Vishay stockholders' equity    
    Common stock 13,318   13,291  
    Class B convertible common stock 1,210   1,210  
    Capital in excess of par value 1,286,568   1,352,321  
    Retained earnings 1,003,700   773,228  
    Treasury stock (at cost) (140,633)  (82,972) 
    Accumulated other comprehensive income (loss) (25,883)  (10,827) 
    Total Vishay stockholders' equity 2,138,280   2,046,251  
    Noncontrolling interests 4,243   3,899  
    Total equity 2,142,523   2,050,150  
    Total liabilities and equity$4,241,207  $3,865,653  
         


    VISHAY INTERTECHNOLOGY, INC.    
    Consolidated Condensed Statements of Cash Flows    
    (Unaudited - In thousands)  
     Nine fiscal months ended 
     September 30, 2023 October 1, 2022 
         
    Operating activities    
    Net earnings$273,559  $357,282  
    Adjustments to reconcile net earnings to net cash provided by operating activities:    
    Depreciation and amortization 133,910   121,301  
    (Gain) loss on disposal of property and equipment (495)  (372) 
    Inventory write-offs for obsolescence 27,469   18,197  
    Stock compensation expense 11,610   5,717  
    Loss on early extinguishment of debt 18,874   -  
    Deferred income taxes 20,654   8,843  
    Other 7,574   (1,445) 
    Change in U.S. transition tax liability (27,670)  (14,757) 
    Change in repatriation tax liability -   (25,201) 
    Changes in operating assets and liabilities (106,050)  (151,773) 
    Net cash provided by operating activities 359,435   317,792  
         
    Investing activities    
    Purchase of property and equipment (184,079)  (172,175) 
    Proceeds from sale of property and equipment 1,034   472  
    Purchase of businesses, net of cash acquired (5,003)  -  
    Purchase of short-term investments (82,166)  (182,079) 
    Maturity of short-term investments 308,021   132,892  
    Other investing activities (1,219)  (199) 
    Net cash provided by (used in) investing activities 36,588   (221,089) 
         
    Financing activities    
    Proceeds from long-term borrowings 750,000   -  
    Repurchase of convertible senior notes due 2025 (386,745)  -  
    Net payments on revolving credit facility (42,000)  -  
    Debt issuance costs (26,547)  -  
    Cash paid for capped call (94,200)  -  
    Dividends paid to common stockholders (38,207)  (39,433) 
    Dividends paid to Class B common stockholders (3,629)  (3,629) 
    Repurchase of common stock held in treasury (57,661)  (54,671) 
    Distributions to noncontrolling interests (867)  (741) 
    Cash withholding taxes paid when shares withheld for vested equity awards (3,994)  (2,123) 
    Net cash provided by (used in) financing activities 96,150   (100,597) 
    Effect of exchange rate changes on cash and cash equivalents (7,879)  (35,222) 
         
    Net increase (decrease) in cash and cash equivalents 484,294   (39,116) 
         
    Cash and cash equivalents at beginning of period 610,825   774,108  
    Cash and cash equivalents at end of period$1,095,119  $734,992  
         


    VISHAY INTERTECHNOLOGY, INC.          
    Reconciliation of Adjusted Earnings Per Share          
    (Unaudited - In thousands, except per share amounts)          
     Fiscal quarters ended Nine fiscal months ended 
     September 30, 2023 July 1, 2023 October 1, 2022 September 30, 2023 October 1, 2022 
               
    GAAP net earnings attributable to Vishay stockholders$65,529  $95,038 $140,061  $272,348  $356,022  
               
    Reconciling items affecting gross profit:          
    Impact of the COVID-19 pandemic$-  $- $-  $-  $6,661  
               
    Other reconciling items affecting operating income:          
    Impact of the COVID-19 pandemic$-  $- $-  $-  $546  
               
    Reconciling items affecting other income (expense):          
    Loss on early extinguishment of debt$18,874  $- $-  $18,874  $-  
               
    Reconciling items affecting tax expense (benefit):          
    Effect of changes in uncertain tax positions$-  $- $(5,941) $-  $(5,941) 
    Tax effects of pre-tax items above (498)  -  -   (498)  (1,802) 
               
    Adjusted net earnings$83,905  $95,038 $134,120  $290,724  $355,486  
               
    Adjusted weighted average diluted shares outstanding 140,001   140,478  143,447   140,577   144,470  
               
    Adjusted earnings per diluted share$0.60  $0.68 $0.93  $2.07  $2.46  
               


    VISHAY INTERTECHNOLOGY, INC.         
    Reconciliation of Free Cash         
    (Unaudited - In thousands)         
     Fiscal quarters ended Nine fiscal months ended
     September 30, 2023 July 1, 2023 October 1, 2022 September 30, 2023 October 1, 2022
    Net cash provided by operating activities$122,303   107,239   209,480  $359,435  $317,792 
    Proceeds from sale of property and equipment 21   687   95   1,034   472 
    Less: Capital expenditures (66,829)  (71,676)  (76,475)  (184,079)  (172,175)
    Free cash$55,495  $36,250  $133,100  $176,390  $146,089 
              


    VISHAY INTERTECHNOLOGY, INC.         
    Reconciliation of EBITDA and Adjusted EBITDA         
    (Unaudited - In thousands)         
     Fiscal quarters ended Nine fiscal months ended
     September 30, 2023 July 1, 2023 October 1, 2022 September 30, 2023 October 1, 2022
              
    GAAP net earnings attributable to Vishay stockholders$65,529  $95,038  $140,061  $272,348  $356,022 
    Net earnings attributable to noncontrolling interests 426   377   502   1,211   1,260 
    Net earnings$65,955  $95,415  $140,563  $273,559  $357,282 
              
    Interest expense$7,153  $6,404  $4,110  $18,677  $12,639 
    Interest income (9,183)  (6,292)  (1,836)  (21,419)  (3,186)
    Income taxes 30,557   38,054   40,566   113,199   108,023 
    Depreciation and amortization 46,216   44,393   40,334   133,910   121,301 
    EBITDA$140,698  $177,974  $223,737  $517,926  $596,059 
              
    Reconciling items         
    Impact of the COVID-19 pandemic$-  $-  $-  $-  $7,207 
    Loss on early extinguishment of debt 18,874   -   -   18,874   - 
              
    Adjusted EBITDA$159,572  $177,974  $223,737  $536,800  $603,266 
              
    Adjusted EBITDA margin** 18.7%  19.9%  24.2%  20.5%  22.8%
              
    ** Adjusted EBITDA as a percentage of net revenues         
              

     



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