• Revenues for Q3 2016 of $592 million
  • Operating Margin Q3 of 9.7%
  • Adjusted Operating Margin Q3 of 10.1%
  • EPS Q3 of $0.24
  • Adjusted EPS Q3 of $0.25
  • Cash from operations for trailing twelve months Q3 of $304 million and capital expenditures of $142 million
  • Repurchased 0.8 million shares in Q3
  • Extension of MOSFETs restructuring program: additional cash cost of $4 to $8 million, additional annual savings of $7 to $10 million, finalized by end of 2017
  • Guidance for Q4 2016 for revenues of $560 - $600 million and gross margins of 24% - 25%

MALVERN, Pa., Nov. 07, 2016 (GLOBE NEWSWIRE) -- Vishay Intertechnology, Inc. (NYSE:VSH), one of the world's largest manufacturers of discrete semiconductors and passive components, today announced its results for the fiscal quarter and nine fiscal months ended October 1, 2016.

Revenues for the fiscal quarter ended October 1, 2016 were $592.0 million, compared to $560.7 million for the fiscal quarter ended October 3, 2015. The net earnings attributable to Vishay stockholders for the fiscal quarter ended October 1, 2016 were $36.4 million, or $0.24 per diluted share, compared to net loss attributable to Vishay stockholders of $(27.7) million, or $(0.19) per share for the fiscal quarter ended October 3, 2015.

Net earnings attributable to Vishay stockholders for the fiscal quarter ended October 1, 2016 include, restructuring and severance costs of $1.2 million, impairment of indefinite-lived intangible assets of $1.6 million, and $1.4 million for the quarterly remeasurement of the deferred tax liability recorded for the cash repatriation program. Net loss attributable to Vishay stockholders for the fiscal quarter ended October 3, 2015 includes restructuring and severance costs of $2.3 million, impairment of goodwill and long-lived assets charges totaling $63.0 million, and a loss related to the Tianjin explosion of $5.4 million. Adjusted earnings per diluted share, which exclude these items, were $0.25 and $0.17 for the fiscal quarters ended October 1, 2016 and October 3, 2015, respectively.

Commenting on the results for the third quarter 2016, Dr. Gerald Paul, President and Chief Executive Officer, stated, "The third quarter represented for Vishay the continuation of a solid business year. The strength of the automotive market is unbroken, and in the US, the industrial markets serving the oil and gas sector seem to have bottomed out. Vishay received in the quarter substantial orders for film power capacitors related to power transmission projects in China—another very tangible result of our Asia growth plan. The sales of Vishay products by its distributors to end customers were stable worldwide with strength in Asia and some seasonal weakness in Europe."

Vishay today announced an extension of the MOSFETs Enhanced Competitiveness restructuring program. The revised program includes various cost reduction initiatives, primarily the transfer of all remaining manufacturing operations at its Santa Clara, CA, facility to other Vishay facilities or third-party subcontractors. The production transfers will be completed in steps by the end of 2017. Vishay expects to incur cash charges of approximately $4 to $8 million, primarily related to severance.

Vishay intends to maintain its R&D and management presence in Silicon Valley, even after the cessation of manufacturing operations there.

Dr. Paul stated, "We successfully completed various production transfers as part of the MOSFETs restructuring program. To realize further opportunities for cost reduction, we will extend the MOSFETs restructuring program, closing the Santa Clara facility as a manufacturing location. This extension will lead to additional cost savings of $7 to $10 million. The improved cost structure will allow Vishay to grow its MOSFETs business at higher margins by better penetrating the automotive and industrial markets."

Commenting on the outlook Dr. Paul continued, "For the fourth quarter, based on our order book and the anticipated product mix we guide for revenues of $560 to $600 million and gross margins of 24% to 25% at constant exchange rates."

A conference call to discuss Vishay's third quarter financial results is scheduled for Monday, November 7, 2016 at 9:00 a.m. ET. The dial-in number for the conference call is 877-589-6174 (+1 706-643-1406 if calling from outside the United States or Canada) and the conference ID is 93666932.

There will be a replay of the conference call from 12:00 p.m. ET on Monday, November 7, 2016 through 11:59 p.m. ET on Monday, November 14, 2016. The telephone number for the replay is 800-585-8367 (+1 855-859-2056 or 404-537-3406 if calling from outside the United States or Canada) and the access code is 93666932.

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

About Vishay

Vishay Intertechnology, Inc., a Fortune 1000 Company listed on the NYSE (VSH), is one of the world's largest manufacturers of discrete semiconductors (diodes, MOSFETs, and infrared optoelectronics) and passive electronic components (resistors, inductors, and capacitors). These components are used in virtually all types of electronic devices and equipment, in the industrial, computing, automotive, consumer, telecommunications, military, aerospace, power supplies, and medical markets. Vishay's product innovations, successful acquisition strategy, and "one-stop shop" service have made it a global industry leader. Vishay can be found on the Internet 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; 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, 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 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 statements with respect to forecasted revenues, margins, cash generation, repatriation of foreign earnings, cost reduction programs and their financial impact, facility locations, 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 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; delays or difficulties in implementing our cost reduction strategies; 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 applicable domestic and foreign tax regulations and uncertainty regarding the same; 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    
  October 1, 2016   July 2, 2016   October 3, 2015    
               
Net revenues $   591,955     $   590,051     $   560,654      
Costs of products sold     438,054         443,923         430,510      
Gross profit     153,901         146,128         130,144      
Gross margin   26.0 %     24.8 %     23.2 %    
               
Selling, general, and administrative expenses     93,916         92,253         88,995      
Restructuring and severance costs     1,197         4,467         2,324      
Impairment of intangible assets     1,559         -         57,600      
Impairment of goodwill     -         -         5,380      
Operating income (loss)     57,229         49,408         (24,155 )    
Operating margin   9.7 %     8.4 %     -4.3 %    
               
Other income (expense):              
Interest expense     (6,165 )       (6,270 )       (6,677 )    
Other     (380 )       2,256         3,240      
Gain on early extinguishment of debt     -         986         -      
Loss related to Tianjin explosion     -         -         (5,350 )    
Total other income (expense) - net     (6,545 )       (3,028 )       (8,787 )    
               
Income (loss) before taxes     50,684         46,380         (32,942 )    
               
Income taxes (benefit)     14,088         13,151         (5,392 )    
               
Net earnings (loss)     36,596         33,229         (27,550 )    
               
Less: net earnings (loss) attributable to noncontrolling interests     156         143         116      
               
Net earnings (loss) attributable to Vishay stockholders $   36,440     $   33,086     $   (27,666 )    
               
Basic earnings (loss) per share attributable to Vishay stockholders $   0.25     $   0.22     $   (0.19 )    
               
Diluted earnings (loss) per share attributable to Vishay stockholders $   0.24     $   0.22     $   (0.19 )    
               
Weighted average shares outstanding - basic     146,924         147,643         147,701      
               
Weighted average shares outstanding - diluted     149,894         149,845         147,701      
               
Cash dividends per share $   0.0625     $   0.0625     $   0.0600      
               

 
VISHAY INTERTECHNOLOGY, INC.         
Summary of Operations        
(Unaudited - In thousands, except per share amounts)        
         
  Nine fiscal months ended  
  October 1, 2016   October 3, 2015  
         
Net revenues $   1,752,612     $   1,744,560    
Costs of products sold     1,315,274         1,327,896    
Gross profit     437,338         416,664    
Gross margin   25.0 %     23.9 %  
         
Selling, general, and administrative expenses     276,455         276,717    
Restructuring and severance costs     12,139         9,394    
Impairment of intangible assets     1,559         57,600    
Impairment of goodwill     -         5,380    
Operating income     147,185         67,573    
Operating margin   8.4 %     3.9 %  
         
Other income (expense):        
Interest expense     (18,901 )       (19,774 )  
Other     2,655         7,860    
Gain on early extinguishment of debt     4,597         -     
Loss related to Tianjin explosion     -         (5,350 )  
Total other income (expense) - net     (11,649 )       (17,264 )  
         
Income before taxes     135,536         50,309    
         
Income taxes     37,559         20,416    
         
Net earnings     97,977         29,893    
         
Less: net earnings attributable to noncontrolling interests     437         592    
         
Net earnings attributable to Vishay stockholders $   97,540     $   29,301    
         
Basic earnings per share attributable to Vishay stockholders $   0.66     $   0.20    
         
Diluted earnings per share attributable to Vishay stockholders $   0.65     $   0.19    
         
Weighted average shares outstanding - basic   147,470       147,700    
         
Weighted average shares outstanding - diluted   150,125       151,607    
         
Cash dividends per share $   0.1875     $   0.1800    
         

 
VISHAY INTERTECHNOLOGY, INC.         
Consolidated Condensed Balance Sheets        
(In thousands)        
         
  October 1, 2016   December 31, 2015  
  (unaudited)      
Assets        
Current assets:        
Cash and cash equivalents $   511,587     $   475,507    
Short-term investments     608,314         619,040    
Accounts receivable, net     295,341         272,559    
Inventories:        
Finished goods     118,853         108,869    
Work in process     182,896         201,045    
Raw materials     106,754         110,657    
Total inventories     408,503         420,571    
         
Prepaid expenses and other current assets     94,309         99,815    
Total current assets     1,918,054         1,887,492    
         
Property and equipment, at cost:        
Land     91,188         89,593    
Buildings and improvements     579,544         562,171    
Machinery and equipment     2,417,598         2,380,299    
Construction in progress     61,328         79,910    
Allowance for depreciation     (2,300,896 )       (2,246,677 )  
      848,762         865,296    
         
Goodwill     142,032         138,244    
         
Other intangible assets, net     89,784         103,258    
         
Other assets     150,194         158,696    
Total assets $   3,148,826     $   3,152,986    
         

 
VISHAY INTERTECHNOLOGY, INC.           
Consolidated Condensed Balance Sheets (continued)          
(In thousands)          
           
  October 1, 2016   December 31, 2015    
  (unaudited)        
Liabilities and stockholders' equity          
Current liabilities:          
Notes payable to banks $   105     $   4      
Trade accounts payable     160,221         157,210      
Payroll and related expenses     128,012         113,976      
Other accrued expenses     157,482         164,336      
Income taxes     16,624         22,198      
Total current liabilities     462,444         457,724      
           
Long-term debt less current portion     361,467         436,738      
Deferred income taxes     298,623         305,413      
Other liabilities     64,257         60,450      
Accrued pension and other postretirement costs     252,653         264,618      
Total liabilities     1,439,444         1,524,943      
           
Equity:          
Vishay stockholders' equity          
Common stock     13,425         13,546      
Class B convertible common stock     1,213         1,213      
Capital in excess of par value     2,044,564         2,058,492      
Retained earnings (accumulated deficit)     (249,535 )       (319,448 )    
Accumulated other comprehensive income (loss)     (105,582 )       (131,327 )    
Total Vishay stockholders' equity     1,704,085         1,622,476      
Noncontrolling interests     5,297         5,567      
Total equity     1,709,382         1,628,043      
Total liabilities and equity $   3,148,826     $   3,152,986      
           

 
VISHAY INTERTECHNOLOGY, INC.         
Consolidated Condensed Statements of Cash Flows        
(Unaudited - In thousands)    
  Nine fiscal months ended  
  October 1, 2016   October 3, 2015  
         
Operating activities        
Net earnings $   97,977     $   29,893    
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:        
Depreciation and amortization     119,143         134,281    
(Gain) loss on disposal of property and equipment     (1,373 )       (116 )  
Accretion of interest on convertible debentures     3,425         3,167    
Inventory write-offs for obsolescence     17,085         15,348    
Impairment of goodwill and intangible assets     1,559         62,980    
Deferred income taxes     (1,750 )       (32,523 )  
Gain on early extinguishment of debt     (4,597 )       -    
Other     (5,386 )       (1,939 )  
Changes in operating assets and liabilities, net of effects of businesses acquired     (13,455 )       (57,522 )  
Net cash provided by operating activities     212,628         153,569    
         
Investing activities        
Purchase of property and equipment     (81,346 )       (86,767 )  
Proceeds from sale of property and equipment     1,241         1,989    
Purchase of short-term investments     (472,938 )       (362,595 )  
Maturity of short-term investments     491,867         161,611    
Sale of short-term investments     -          503    
Sale of other investments     -          400    
Other investing activities     2,886         (3,967 )  
Net cash provided by (used in) investing activities     (58,290 )       (288,826 )  
         
Financing activities        
Principal payments on long-term debt and capital lease obligations     (34,044 )       -    
Net proceeds (payments) on revolving credit lines     (41,000 )       (27,000 )  
Net changes in short-term borrowings     (626 )       (7 )  
Common stock repurchases     (16,981 )       -    
Dividends paid to common stockholders     (25,329 )       (24,378 )  
Dividends paid to Class B common stockholders     (2,274 )       (2,184 )  
Excess tax benefit from RSUs vested     -          21    
Distributions to noncontrolling interests     (707 )       (725 )  
Net cash provided by (used in) financing activities     (120,961 )       (54,273 )  
Effect of exchange rate changes on cash and cash equivalents     2,703         (12,337 )  
         
Net increase (decrease) in cash and cash equivalents     36,080         (201,867 )  
         
Cash and cash equivalents at beginning of period     475,507         592,172    
Cash and cash equivalents at end of period $   511,587     $   390,305    
         

 
VISHAY INTERTECHNOLOGY, INC.                     
Reconciliation of Adjusted Earnings Per Share                    
(Unaudited - In thousands, except per share amounts)                    
  Fiscal quarters ended   Nine fiscal months ended  
  October 1, 2016   July 2, 2016   October 3, 2015   October 1, 2016   October 3, 2015  
                     
GAAP net earnings (loss) attributable to Vishay stockholders $   36,440     $   33,086     $   (27,666 )   $   97,540     $   29,301    
                     
Reconciling items affecting operating margin:                    
Restructuring and severance costs $   1,197     $   4,467     $   2,324     $   12,139     $   9,394    
Impairment of intangible assets     1,559         -         57,600         1,559         57,600    
Impairment of goodwill     -         -         5,380         -         5,380    
                     
Reconciling items other income (expense):                    
Gain on early extinguishment of debt $   -     $   (986 )   $   -     $   (4,597 )   $   -    
Loss (gain) related to Tianjin explosion     -         -         5,350         -         5,350    
                     
Reconciling items affecting tax expense (benefit):                    
Effects of cash repatriation program $   (1,402 )   $   -     $   -     $   (3,388 )   $   -    
Tax effects of items above      (441 )       (2,235 )       (16,831 )       (2,436 )       (19,327 )  
                     
Adjusted net earnings $   37,353     $   34,332     $   26,157     $   100,817     $   87,698    
                     
Adjusted weighted average diluted shares outstanding     149,894         149,845         150,455         150,125         151,607    
                     
Adjusted earnings per diluted share* $   0.25     $   0.23     $   0.17     $   0.67     $   0.58    
                     
* Includes add-back of interest on exchangeable notes in periods where the notes are dilutive.   
                     

 
VISHAY INTERTECHNOLOGY, INC.                   
Reconciliation of Free Cash                  
(Unaudited - In thousands)                  
  Fiscal quarters ended   Nine fiscal months ended
  October 1, 2016   July 2, 2016   October 3, 2015   October 1, 2016   October 3, 2015
Net cash provided by operating activities $   117,657     $   74,713     $   61,207     $   212,628     $   153,569  
Proceeds from sale of property and equipment     1,048         129         314         1,241         1,989  
Less: Capital expenditures     (30,273 )       (31,317 )       (37,217 )       (81,346 )       (86,767 )
Free cash $   88,432     $   43,525     $   24,304     $   132,523     $   68,791  
                   

 
VISHAY INTERTECHNOLOGY, INC.                   
Reconciliation of EBITDA and Adjusted EBITDA                  
(Unaudited - In thousands)                  
  Fiscal quarters ended   Nine fiscal months ended
  October 1, 2016   July 2, 2016   October 3, 2015   October 1, 2016   October 3, 2015
                   
GAAP net earnings (loss) attributable to Vishay stockholders $   36,440     $   33,086     $   (27,666 )   $   97,540     $   29,301  
Net earnings (loss) attributable to noncontrolling interests     156         143         116         437         592  
Net earnings (loss) $   36,596     $   33,229     $   (27,550 )   $   97,977     $   29,893  
                   
Interest expense $   6,165     $   6,270     $   6,677     $   18,901     $   19,774  
Interest income     (1,033 )       (1,033 )       (1,115 )       (3,200 )       (3,340 )
Income taxes     14,088         13,151         (5,392 )       37,559         20,416  
Depreciation and amortization     40,026         39,100         44,096         119,143         134,281  
EBITDA $   95,842     $   90,717     $   16,716     $   270,380     $   201,024  
                   
Reconciling items                  
Restructuring and severance costs $   1,197     $   4,467     $   2,324     $   12,139     $   9,394  
Impairment of intangible assets     1,559         -         57,600         1,559         57,600  
Impairment of goodwill     -         -         5,380         -         5,380  
Gain on early extinguishment of debt     -         (986 )       -         (4,597 )       -  
Loss related to Tianjin explosion     -         -         5,350         -         5,350  
                   
Adjusted EBITDA $   98,598     $   94,198     $   87,370     $   279,481     $   278,748  
                   
Adjusted EBITDA margin**   16.7 %     16.0 %     15.6 %     15.9 %     16.0 %
                   
** Adjusted EBITDA as a percentage of net revenues                  
                   

 
Source: Vishay Intertechnology, Inc.Contact:Vishay Intertechnology, Inc.Peter HenriciSenior Vice President, Corporate Communications+1-610-644-1300

Primary Logo