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Vishay Reports Results For Second Quarter 2012

Statements contained herein that relate to the Company's future performance, including statements with respect to forecasted revenues, margins, cash generation, internal growth and acquisition activity, and the general state of the Company, are forward-looking statements within the safe harbor provisions of Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “project,” “intend,” “could,” “should,” 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; difficulties in implementing our cost reduction strategies; 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; uncertainty related to the effects of changes in foreign currency exchange rates; 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.

     
VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands, except per share amounts)
 
Fiscal quarters ended
June 30, March 31, July 2,
2012 2012 2011
 
Net revenues $ 588,199 $ 538,547 $ 709,838
Costs of products sold   440,580     401,838     497,648  
Gross profit 147,619 136,709 212,190
Gross margin 25.1 % 25.4 % 29.9 %
 
Selling, general, and administrative expenses 86,889 86,364 92,796
Gain on sale of property (12,153 ) - -
Executive compensation charge   -     -     3,889  
Operating income 72,883 50,345 115,505
Operating margin 12.4 % 9.3 % 16.3 %
 
Other income (expense):
Interest expense (5,539 ) (4,717 ) (4,624 )
Other   (2,094 )   1,308     (28 )
Total other income (expense) - net   (7,633 )   (3,409 )   (4,652 )
 
Income before taxes 65,250 46,936 110,853
 
Income taxes   19,420     12,861     28,357  
 
Net earnings 45,830 34,075 82,496
 
Less: net earnings attributable to noncontrolling interests 159 263 401
     
Net earnings attributable to Vishay stockholders $ 45,671   $ 33,812   $ 82,095  
 
Basic earnings per share attributable to Vishay stockholders $ 0.30 $ 0.22 $ 0.51
 
Diluted earnings per share attributable to Vishay stockholders $ 0.29 $ 0.21 $ 0.48
 
Weighted average shares outstanding - basic 152,462 157,199 160,801
 
Weighted average shares outstanding - diluted 159,249 163,944 170,645
 
   
VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands, except per share amounts)
 
Six fiscal months ended
June 30, July 2,
2012 2011
 
Net revenues $ 1,126,746 $ 1,404,989
Costs of products sold   842,418     978,136  
Gross profit 284,328 426,853
Gross margin 25.2 % 30.4 %
 
Selling, general, and administrative expenses 173,253 185,261
Gain on sale of property (12,153 ) -
Executive compensation charge   -     3,889  
Operating income 123,228 237,703
Operating margin 10.9 % 16.9 %
 
Other income (expense):
Interest expense (10,256 ) (8,678 )
Other   (786 )   (535 )
Total other income (expense) - net   (11,042 )   (9,213 )
 
Income before taxes 112,186 228,490
 
Income taxes   32,281     70,387  
 
Net earnings 79,905 158,103
 
Less: net earnings attributable to noncontrolling interests 422 721
   
Net earnings attributable to Vishay stockholders $ 79,483   $ 157,382  
 
Basic earnings per share attributable to Vishay stockholders $ 0.51 $ 0.97
 
Diluted earnings per share attributable to Vishay stockholders $ 0.49 $ 0.91
 
Weighted average shares outstanding - basic 154,831 163,006
 
Weighted average shares outstanding - diluted 161,596 173,143
 
   
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(In thousands)
 
June 30, December 31,
2012 2011
Assets (unaudited)
Current assets:
Cash and cash equivalents $ 708,772 $ 749,088
Short-term investments 239,503 249,139
Accounts receivable, net 298,974 270,970
Inventories:
Finished goods 109,688 104,478
Work in process 196,050 181,354
Raw materials   128,818     131,795  
Total inventories 434,556 417,627
 
Deferred income taxes 24,581 24,632
Prepaid expenses and other current assets   115,794     119,220  
Total current assets 1,822,180 1,830,676
 
Property and equipment, at cost:
Land 91,131 91,507
Buildings and improvements 502,872 493,550
Machinery and equipment 2,092,532 2,079,395
Construction in progress 76,718 94,717
Allowance for depreciation   (1,890,152 )   (1,851,264 )
873,101 907,905
 
Goodwill 34,866 9,051
 
Other intangible assets, net 139,738 103,927
 
Other assets   137,813     142,171  
Total assets $ 3,007,698   $ 2,993,730  
 
   
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets (continued)
(In thousands)
 
June 30, December 31,
2012 2011
(unaudited)
Liabilities and stockholders' equity
Current liabilities:
Notes payable to banks $ 116 $ 13
Trade accounts payable 154,277 154,942
Payroll and related expenses 103,765 109,833
Other accrued expenses 146,318 161,119
Income taxes   4,600     13,881  
Total current liabilities 409,076 439,788
 
Long-term debt less current portion 462,173 399,054
Deferred income taxes 146,645 110,356
Other liabilities 113,869 117,235
Accrued pension and other postretirement costs   298,426     319,136  
Total liabilities   1,430,189     1,385,569  
 
Equity:
Vishay stockholders' equity
Common stock 13,114 14,374
Class B convertible common stock 1,213 1,345
Capital in excess of par value 1,998,765 2,086,925
Retained earnings (accumulated deficit) (423,933 ) (503,416 )
Accumulated other comprehensive income (loss)   (17,227 )   3,778  
Total Vishay stockholders' equity   1,571,932     1,603,006  
Noncontrolling interests   5,577     5,155  
Total equity   1,577,509     1,608,161  
Total liabilities and equity $ 3,007,698   $ 2,993,730  
 
   
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Cash Flows
(Unaudited - In thousands)
 
Six fiscal months ended
June 30, July 2,
2012 2011
 
 
Operating activities
Net earnings $ 79,905 $ 158,103

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization 83,838 90,771
(Gain) loss on disposal of property and equipment (13,070 ) (930 )
Accretion of interest on convertible debentures 1,308 861
Inventory write-offs for obsolescence 10,050 10,560
Other 8,110 (2,502 )

Changes in operating assets and liabilities, net of effects of businesses acquired

  (75,737 )   (82,947 )
Net cash provided by operating activities 94,404 173,916
 
Investing activities
Purchase of property and equipment (47,298 ) (45,365 )
Proceeds from sale of property and equipment 6,355 1,473
Purchase of businesses, net of cash acquired or refunded (85,493 ) -
Purchase of short-term investments (201,143 ) (391,524 )
Maturity of short-term investments 207,077 82,990
Other investing activities   (640 )   307  
Net cash used in investing activities (121,142 ) (352,119 )
 
Financing activities
Proceeds of long-term borrowings 150,000 150,000
Issuance costs (4,827 ) (4,144 )
Common stock repurchase (150,000 ) (150,000 )
Principal payments on long-term debt and capital lease obligations (16 ) (6 )
Net proceeds (payments) on revolving credit lines 5,000 (60,000 )
Net changes in short-term borrowings (2 ) (9 )
Proceeds from stock options exercised 174 7,938
Excess tax benefit from stock options exercised - 555
Distributions to noncontrolling interests   -     (500 )
Net cash provided by (used in) financing activities 329 (56,166 )
Effect of exchange rate changes on cash and cash equivalents   (13,907 )   29,623  
 
Net decrease in cash and cash equivalents (40,316 ) (204,746 )
 
Cash and cash equivalents at beginning of period   749,088     897,338  
Cash and cash equivalents at end of period $ 708,772   $ 692,592  
 
 
VISHAY INTERTECHNOLOGY, INC.
Reconciliation of Adjusted Earnings Per Share
(Unaudited - In thousands, except per share amounts)
 
  Fiscal quarters ended   Six fiscal months ended
June 30,   March 31,   July 2, June 30,   July 2,
2012 2012 2011 2012 2011
 
GAAP net earnings attributable to Vishay stockholders $ 45,671 $ 33,812 $ 82,095 $ 79,483 $ 157,382
 

Reconciling items affecting operating margin:

Gain on sale of property $ (12,153 ) $ - $ - $ (12,153 ) $ -
Executive compensation charge - - 3,889 - 3,889
 

Reconciling items affecting tax expense (benefit):

Tax effects of items above and other one-time tax expense (benefit) $ 4,131 $ - $ (1,419 ) $ 4,131 $ 8,605
         
Adjusted net earnings $ 37,649   $ 33,812 $ 84,565   $ 71,461   $ 169,876
 
Adjusted weighted average diluted shares outstanding 159,249 163,944 170,645 161,596 173,143
 
Adjusted earnings per diluted share** $ 0.24 $ 0.21 $ 0.50 $ 0.44 $ 0.98
 
** Includes add-back of interest on exchangeable notes in periods where the notes are dilutive.
 




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