Previous Statements by VSH
» Vishay Intertechnology's CEO Discusses Q1 2012 Results - Earnings Call Transcript
» Vishay Intertechnology's CEO Discusses Q4 2011 Results - Earnings Call Transcript
» Vishay Intertechnology CEO Discusses Q3 2011 Results - Earnings Call Transcript
» Vishay Intertechnology's CEO Discusses Q2 2011 Results - Earnings Call Transcript
In addition, during this call, we may refer to adjusted or other financial measures that are not prepared according to Generally Accepted Accounting Principles. We use non-GAAP measures because we believe that provides useful information about the operating performance of our businesses and should be considered by investors in conjunction with GAAP measures that we also provide.This morning we filed Form 8-K that outlines the various variables that impact the diluted earnings per share computation. We expect to file our Form 10-Q for the second quarter this evening. On the Investor Relations section of our website, you can find the presentation of the Q2 financial information containing some of the operational metrics Dr. Paul will be discussing as well as a presentation on Vishay’s growth plan. Dr. Gerald Paul, will be presenting on Wednesday, September 5th, at the Citi’s Annual Technology Conference in New York. Now, I turn the discussion over to Chief Financial Officer, Lori Lipcaman. Lori Lipcaman Thank you, Peter. Good morning. I am sure that most of you have had a chance to view our earnings press release. I will focus on some highlights and key metrics. Adjusted EPS of $0.24 increased $0.03 quarter-over-quarter. We successfully sold a property vacated due to our restructuring activities recognizing a gain of $12 million. In the second quarter, we completed the repurchase of 13.9 million shares of our common stock. Including this most recent repurchase, we have spent $575 million to repurchase 44.3 million shares of our common stock since the fourth quarter of 2010. This represents 24% of our shares outstanding before we began the initiative. We pay a fixed cash interest of 2.25% on the face value during the lifetime of the convertible debentures. We chose converts as the more efficient way to finance and to execute substantial share repurchases rather than repay trading cash or using other forms of debt.
Looking at the P&L; revenues in the quarter were $588 million, up by 9.2% from previous quarter, and down by 17.1% compared to prior year. Gross margin was 25.1%. Operating margin was 12.4%. Adjusted operating margin was 10.3%. EPS was $0.29. Adjusted EPS was $0.24.Our adjusted operating margin excludes a gain of $12.2 million recorded on the sale of a manufacturing facility in Belgium previously vacated as part of our restructuring activities. Our adjusted EPS excludes the after-tax effective this gain. In our press release, we have included a table which reconciles GAAP EPS to adjusted EPS. Reconciling adjusted operating income quarter two 2012 compared to operating income for prior quarter based on $50 million higher sales or $53 million higher excluding exchange rate impact, the adjusted operating income increased by $11 million from $50 million in Q1 2012 to $61 million in Q2 2012. The main elements were, average selling prices which had a negative impact of $8 million representing a 1.4% ASP decline; volume increased with the positive impact of $27 million; we had higher fixed costs with a negative impact of $4 million due to the non-repetition of temporary reduction measures in Q1 and inventory had a negative impact of $4 million due to non-repetition of the Q1 inventory build. Reconciling adjusted operating income in quarter two 2012 compared to prior year based on $122 million lower sales or $101 million lower excluding exchange rate impacts, the adjusted operating income decreased by $58 million from $119 million in Q2 2011 to $61 million in Q2 of 2012. The main elements were, average selling prices which had a negative impact of $18 million, representing a 3.1% ASP decline and volume decreased with negative impact of $38 million. Selling, general and administrative expenses for the quarter were $87 million. This was lower than our original expectations reflecting primarily the realignment of bonus accruals to current expectations for the year, as well as a positive impact from exchange rates of approximately $1 million. For the current quarter, our expectations are approximately $90 million. Read the rest of this transcript for free on seekingalpha.com