• Revenues for Q4 2016 of $571 million and for year 2016 of $2,323 million
  • Operating Margin Q4 of -8.0% and year 2016 of 4.4%
  • Adjusted Operating Margin Q4 of 7.2% and year 2016 of 8.7%
  • EPS Q4 of $(0.33) and year 2016 of $0.32
  • Adjusted EPS Q4 of $0.18 and year 2016 of $0.85
  • Cash from operations for year 2016 of $296 million and capital expenditures of $135 million
  • Guidance for Q1 2017 for revenues of $575 - $615 million and gross margins of 24% - 26%

MALVERN, Pa., Feb. 07, 2017 (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 year and fiscal quarter ended December 31, 2016.

Revenues for the year ended December 31, 2016 were $2,323.4 million, compared to $2,300.5 million for the year ended December 31, 2015.  Net earnings attributable to Vishay stockholders for the year ended December 31, 2016 were $48.8 million, or $0.32 per share, compared to a net loss attributable to Vishay stockholders of $(108.5) million, or $(0.73) per share for the year ended December 31, 2015.

Revenues for the fiscal quarter ended December 31, 2016 were $570.8 million, compared to $555.9 million for the fiscal quarter ended December 31, 2015.  Net loss attributable to Vishay stockholders for the fiscal quarter ended December 31, 2016 was $(48.7) million, or $(0.33) per share, compared to a net loss attributable to Vishay stockholders of $(137.8) million, or $(0.93) per share for the fiscal quarter ended December 31, 2015.

Net earnings attributable to Vishay stockholders for the fiscal quarter and year ended December 31, 2016 include a $79.3 million pre-tax non-cash charge recognized in the settlement of the Company's U.S. qualified pension plan.  As summarized on the attached reconciliation schedule, all periods presented include other items affecting comparability.  Adjusted earnings per diluted share, which exclude these items net of tax and the unusual tax items, were $0.18 and $0.85 for the fiscal quarter and year ended December 31, 2016, respectively, and $0.14 and $0.72 for the fiscal quarter and year ended December 31, 2015, respectively.

Commenting on the results for the fourth quarter 2016, Dr. Gerald Paul, President and Chief Executive Officer, stated, "Revenues for the quarter came in close to expectations when excluding exchange rate effects. Gross margin was impacted by unfavorable product mix and the effect of an inventory reduction in the quarter, mostly due to the depletion of the safety stock at MOSFETs required for the completed production move. Year over year sales of Vishay products from distribution to end customers increased."

Dr. Paul stated, commenting on the results for the year 2016, "In a generally friendly economic environment and based on our own efforts, Vishay enjoyed a fairly successful year 2016. Vishay again was able to offset the negative impact of salary increases and general inflation on its fixed costs by cost reduction. At the same time Vishay was able to successfully expand its business in Asia. Its strong cash flow enabled Vishay to increase its cash dividend, to establish a meaningful stock buyback program and to continue to rejuvenate its organization."

Commenting on the outlook Dr. Paul stated, "For the first quarter, we guide for revenues of $575 to $615 million and gross margins of 24% to 26% at constant exchange rates."

A conference call to discuss Vishay's fourth quarter and year-end financial results is scheduled for Tuesday, February 7, 2017 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 49045451.

There will be a replay of the conference call from 12:00 p.m. ET on Tuesday, February 7, 2017 through 11:59 p.m. ET on Tuesday, February 14, 2017. 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 49045451.

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; 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 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 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 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      
(In thousands, except per share amounts)      
       
  Years ended
  December 31, 2016   December 31, 2015
  (Unaudited)    
       
Net revenues $   2,323,431     $   2,300,488  
Costs of products sold     1,753,648         1,758,268  
Gross profit     569,783         542,220  
Gross margin   24.5 %     23.6 %
       
Selling, general, and administrative expenses     367,987         362,226  
Restructuring and severance costs     19,199         19,215  
Impairment of intangible assets     1,559         57,600  
Impairment of goodwill     -         5,380  
U.S. pension settlement charges     79,321         -  
Operating income     101,717         97,799  
Operating margin   4.4 %     4.3 %
       
Other income (expense):      
Interest expense     (25,623 )       (25,685 )
Other     4,716         7,976  
Gain on early extinguishment of debt     4,597         -   
Gain (loss) related to Tianjin explosion     8,809         (5,350 )
Total other income (expense) - net     (7,501 )       (23,059 )
       
Income before taxes     94,216         74,740  
       
Income taxes     44,843         182,473  
       
Net earnings (loss)     49,373         (107,733 )
       
Less: net earnings attributable to noncontrolling interests     581         781  
       
Net earnings (loss) attributable to Vishay stockholders $   48,792     $   (108,514 )
       
Basic earnings (loss) per share attributable to Vishay stockholders $   0.33     $   (0.73 )
       
Diluted earnings (loss) per share attributable to Vishay stockholders $   0.32     $   (0.73 )
       
Weighted average shares outstanding - basic   147,152       147,700  
       
Weighted average shares outstanding - diluted   150,697       147,700  
       
Cash dividends per share $   0.25     $   0.24  

 
VISHAY INTERTECHNOLOGY, INC.           
Summary of Operations          
(Unaudited - In thousands, except per share amounts)          
           
  Fiscal quarters ended
  December 31, 2016   October 1, 2016   December 31, 2015
           
Net revenues $   570,819     $   591,955     $   555,928  
Costs of products sold     438,374         438,054         430,372  
Gross profit     132,445         153,901         125,556  
Gross margin   23.2 %     26.0 %     22.6 %
           
Selling, general, and administrative expenses     91,532         93,916         85,509  
Restructuring and severance costs     7,060         1,197         9,821  
Impairment of intangible assets     -         1,559         -  
U.S. pension settlement charges     79,321         -         -  
Operating income (loss)     (45,468 )       57,229         30,226  
Operating margin   -8.0 %     9.7 %     5.4 %
           
Other income (expense):          
Interest expense     (6,722 )       (6,165 )       (5,911 )
Other     2,061         (380 )       116  
Gain (loss) related to Tianjin explosion     8,809         -         -  
Total other income (expense) - net     4,148         (6,545 )       (5,795 )
           
Income (loss) before taxes     (41,320 )       50,684         24,431  
           
Income taxes (benefit)     7,284         14,088         162,057  
           
Net earnings (loss)     (48,604 )       36,596         (137,626 )
           
Less: net earnings attributable to noncontrolling interests     144         156         189  
           
Net earnings (loss) attributable to Vishay stockholders $   (48,748 )   $   36,440     $   (137,815 )
           
Basic earnings (loss) per share attributable to Vishay stockholders $   (0.33 )   $   0.25     $   (0.93 )
           
Diluted earnings (loss) per share attributable to Vishay stockholders $   (0.33 )   $   0.24     $   (0.93 )
           
Weighted average shares outstanding - basic     146,195         146,924         147,702  
           
Weighted average shares outstanding - diluted     146,195         149,894         147,702  
           
Cash dividends per share $   0.0625     $   0.0625     $   0.0600  

 
VISHAY INTERTECHNOLOGY, INC.       
Consolidated Condensed Balance Sheets      
(In thousands)      
       
  December 31, 2016   December 31, 2015
  (unaudited)    
Assets      
Current assets:      
Cash and cash equivalents $   471,781     $   475,507  
Short-term investments     626,627         619,040  
Accounts receivable, net     274,027         272,559  
Inventories:      
Finished goods     109,075         108,869  
Work in process     162,311         201,045  
Raw materials     109,859         110,657  
Total inventories     381,245         420,571  
       
Prepaid expenses and other current assets       110,792         99,815  
Total current assets     1,864,472         1,887,492  
       
Property and equipment, at cost:      
Land     89,753         89,593  
Buildings and improvements     570,932         562,171  
Machinery and equipment     2,283,222         2,380,299  
Construction in progress     71,777         79,910  
Allowance for depreciation     (2,166,813 )       (2,246,677 )
      848,871         865,296  
       
Goodwill     141,407         138,244  
       
Other intangible assets, net     84,463         103,258  
       
Other assets     138,588         158,696  
Total assets $   3,077,801     $   3,152,986  

 
VISHAY INTERTECHNOLOGY, INC.       
Consolidated Condensed Balance Sheets (continued)      
(In thousands)      
       
  December 31, 2016   December 31, 2015
  (unaudited)    
Liabilities and stockholders' equity      
Current liabilities:      
Notes payable to banks $   3     $   4  
Trade accounts payable     174,107         157,210  
Payroll and related expenses     114,576         113,976  
Other accrued expenses     149,131         164,336  
Income taxes     19,033         22,198  
Total current liabilities     456,850         457,724  
       
Long-term debt less current portion     357,023         436,738  
Deferred income taxes     286,797         305,413  
Other liabilities     59,725         60,450  
Accrued pension and other postretirement costs     257,789         264,618  
Total liabilities     1,418,184         1,524,943  
       
Redeemable convertible debentures     88,659         -   
       
Equity:      
Vishay stockholders' equity      
Common stock     13,385         13,546  
Class B convertible common stock     1,213         1,213  
Capital in excess of par value     1,952,988         2,058,492  
Retained earnings (accumulated deficit)     (307,417 )       (319,448 )
Accumulated other comprehensive income (loss)     (94,652 )       (131,327 )
Total Vishay stockholders' equity     1,565,517         1,622,476  
Noncontrolling interests     5,441         5,567  
Total equity     1,570,958         1,628,043  
Total liabilities, temporary equity, and equity $   3,077,801     $   3,152,986  

 
VISHAY INTERTECHNOLOGY, INC.         
Consolidated Statements of Cash Flows        
(In thousands)    
  Years ended  
  December 31, 2016   December 31, 2015  
  (unaudited)      
Operating activities        
Net earnings $   49,373     $   (107,733 )  
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:        
Depreciation and amortization     159,363         176,169    
(Gain) loss on disposal of property and equipment     (4,054 )       (86 )  
Accretion of interest on convertible debentures     4,610         4,264    
Inventory write-offs for obsolescence     22,619         21,384    
Impairment of goodwill and intangible assets     1,559         62,980    
U.S. pension settlement charges     79,321         -    
Pensions and other postretirement benefits, net of contributions     (3,282 )       (3,543 )  
Deferred income taxes     (2,519 )       118,447    
Gain on early extinguishment of debt     (4,597 )       -    
Other     (2,220 )       698    
Changes in operating assets and liabilities, net of effects of businesses acquired     (4,206 )       (27,249 )  
Net cash provided by operating activities     295,967         245,331    
         
Investing activities        
Purchase of property and equipment     (134,635 )       (147,142 )  
Proceeds from sale of property and equipment     5,701         2,049    
Purchase and deposits for businesses, net of cash acquired     -          (6,750 )  
Purchase of short-term investments     (555,250 )       (486,949 )  
Maturity of short-term investments     532,601         345,397    
Sale of short-term investments     -          503    
Sale of other investments     -          400    
Other investing activities     2,942         (4,884 )  
Net cash provided by (used in) investing activities     (148,641 )       (297,376 )  
         
Financing activities        
Debt issuance costs     -          (3,693 )  
Principal payments on long-term debt and capital lease obligations     (34,044 )       -    
Net proceeds (payments) on revolving credit lines     (47,000 )       (10,000 )  
Net changes in short-term borrowings     (723 )       (14 )  
Common stock repurchases     (23,159 )       -    
Dividends paid to common stockholders     (33,693 )       (32,506 )  
Dividends paid to Class B common stockholders     (3,032 )       (2,911 )  
Excess tax benefit from RSUs vested     -          21    
Proceeds from stock options exercised     356         -    
Distributions to noncontrolling interests     (707 )       (725 )  
Net cash provided by (used in) financing activities     (142,002 )       (49,828 )  
Effect of exchange rate changes on cash and cash equivalents     (9,050 )       (14,792 )  
         
Net increase (decrease) in cash and cash equivalents     (3,726 )       (116,665 )  
         
Cash and cash equivalents at beginning of period     475,507         592,172    
Cash and cash equivalents at end of period $   471,781     $   475,507    

 
VISHAY INTERTECHNOLOGY, INC.                   
Reconciliation of Adjusted Earnings Per Share                  
(Unaudited - In thousands, except per share amounts)                  
  Fiscal quarters ended   Years ended
  December 31, 2016   October 1, 2016   December 31, 2015   December 31, 2016   December 31, 2015
                   
GAAP net earnings (loss) attributable to Vishay stockholders $   (48,748 )   $   36,440     $   (137,815 )   $   48,792     $   (108,514 )
                   
Reconciling items affecting operating margin:                  
Restructuring and severance costs $   7,060     $   1,197     $   9,821     $   19,199     $   19,215  
Impairment of intangible assets     -         1,559         -         1,559         57,600  
Impairment of goodwill     -         -         -         -         5,380  
U.S. pension settlement charges     79,321         -         -         79,321         -  
                   
Reconciling items other income (expense):                  
Gain on early extinguishment of debt $   -     $   -     $   -     $   (4,597 )   $   -  
Loss (gain) related to Tianjin explosion     (8,809 )       -         -         (8,809 )       5,350  
                   
Reconciling items affecting tax expense (benefit):                  
Effects of cash repatriation program $   (165 )   $   (1,402 )   $   163,954     $   (3,553 )   $   163,954  
Additional tax expense from AOCI - pension plan     34,853         -          -          34,853         -   
Effects of tax law changes     -          -          -          -          -   
Effects of changes in valuation allowances     -          -          (8,888 )       -          (8,888 )
Effects of changes in uncertain tax positions     (8,704 )       -          (2,629 )       (8,704 )       (2,629 )
Tax effects of pre-tax items above      (27,465 )       (441 )       (3,141 )       (29,901 )       (22,468 )
                   
Adjusted net earnings $   27,343     $   37,353     $   21,302     $   128,160     $   109,000  
                   
Adjusted weighted average diluted shares outstanding     152,408         149,894         150,497         150,697         151,329  
                   
Adjusted earnings per diluted share* $   0.18     $   0.25     $   0.14     $   0.85     $   0.72  
                   
* 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   Years ended
  December 31, 2016   October 1, 2016   December 31, 2015   December 31, 2016   December 31, 2015
Net cash provided by operating activities $   83,339     $   117,657     $   91,762     $   295,967     $   245,331  
Proceeds from sale of property and equipment     4,460         1,048         60         5,701         2,049  
Less: Capital expenditures     (53,289 )       (30,273 )       (60,375 )       (134,635 )       (147,142 )
Free cash $   34,510     $   88,432     $   31,447     $   167,033     $   100,238  
                   

 
VISHAY INTERTECHNOLOGY, INC.                   
Reconciliation of EBITDA and Adjusted EBITDA                  
(Unaudited - In thousands)                  
  Fiscal quarters ended   Years ended
  December 31, 2016   October 1, 2016   December 31, 2015   December 31, 2016   December 31, 2015
                   
GAAP net earnings (loss) attributable to Vishay stockholders $   (48,748 )   $   36,440     $   (137,815 )   $   48,792     $   (108,514 )
Net earnings (loss) attributable to noncontrolling interests     144         156         189         581         781  
Net earnings (loss) $   (48,604 )   $   36,596     $   (137,626 )   $   49,373     $   (107,733 )
                   
Interest expense $   6,722     $   6,165     $   5,911     $   25,623     $   25,685  
Interest income     (1,064 )       (1,033 )       (1,057 )       (4,264 )       (4,397 )
Income taxes     7,284         14,088         162,057         44,843         182,473  
Depreciation and amortization     40,220         40,026         41,888         159,363         176,169  
EBITDA $   4,558     $   95,842     $   71,173     $   274,938     $   272,197  
                   
Reconciling items                  
Restructuring and severance costs $   7,060     $   1,197     $   9,821     $   19,199     $   19,215  
Impairment of intangible assets     -         1,559         -         1,559         57,600  
Impairment of goodwill     -         -         -         -         5,380  
U.S. pension settlement charges     79,321         -         -         79,321         -  
Gain on early extinguishment of debt     -         -         -         (4,597 )       -  
Loss (gain) related to Tianjin explosion     (8,809 )       -         -         (8,809 )       5,350  
                   
Adjusted EBITDA $   82,130     $   98,598     $   80,994     $   361,611     $   359,742  
                   
Adjusted EBITDA margin**   14.4 %     16.7 %     14.6 %     15.6 %     15.6 %
                   
** Adjusted EBITDA as a percentage of net revenues                  

 

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

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