• Revenues for Q2 2017 of $645 million
  • Gross Margin Q2 of 26.8%
  • Adjusted Operating Margin Q2 of 12.8%
  • EPS Q2 of $0.36
  • Adjusted EPS Q2 of $0.36
  • Cash from operations for trailing twelve months Q2 of $329 million and capital expenditures of $133 million
  • Guidance for Q3 2017 for revenues of $630 - $670 million and gross margins of 26% - 28% at Q2 exchange rates

MALVERN, Pa., Aug. 03, 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 fiscal quarter and six fiscal months ended July 1, 2017.

Revenues for the fiscal quarter ended July 1, 2017 were $644.9 million, compared to $606.3 million for the fiscal quarter ended April 1, 2017 and $590.1 million for the fiscal quarter ended July 2, 2016.  Net earnings attributable to Vishay stockholders for the fiscal quarter ended July 1, 2017 were $56.2 million, or $0.36 per diluted share, compared to $36.7 million, or $0.24 per diluted share for the fiscal quarter ended April 1, 2017, and $33.1 million, or $0.22 per diluted share for the fiscal quarter ended July 2, 2016.

All periods presented include items affecting comparability. These items are summarized on the attached reconciliation schedule.  Adjusted earnings per diluted share, which exclude these items net of tax and the unusual tax items, were $0.36, $0.28, and $0.23 for the fiscal quarters ended July 1, 2017, April 1, 2017, and July 2, 2016, respectively.

Commenting on the results for the second quarter 2017, Dr. Gerald Paul, President and Chief Executive Officer, stated, "Results in the second quarter 2017 improved further from the first quarter driven by continued strong demand from virtually all markets, in particular by the industrial and automotive end markets. The high order level was driven by distribution, in particular in Asia and Europe. Shortages of supply and long lead times for certain product lines still raise concerns at customers. At the same time, sales of our products by distribution to end customers continued to increase resulting in increased inventory turns at distribution."

Dr. Paul continued, "We expect strong growth in automotive markets for years to come driven by e-mobility and sensors. It is a market in which we are very well positioned."

Commenting on the outlook Dr. Paul stated, "For the third quarter, we guide for revenues of $630 to $670 million and gross margins of 26% to 28% at the exchange rates for the second quarter."

A conference call to discuss Vishay's second quarter financial results is scheduled for Thursday, August 3, 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 43575734.

There will be a replay of the conference call from 12:00 p.m. ET on Thursday, August 3, 2017 through 11:59 p.m. ET on Thursday, August 10, 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 43575734. 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 and margins, and the performance of specific market segments and 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  
  July 1, 2017   April 1, 2017   July 2, 2016  
             
Net revenues $   644,892     $   606,258     $   590,051    
Costs of products sold     471,929         445,383         443,923    
Gross profit     172,963         160,875         146,128    
Gross margin   26.8 %     26.5 %     24.8 %  
             
Selling, general, and administrative expenses     90,446         94,718         92,253    
Restructuring and severance costs     481         1,469         4,467    
Operating income     82,036         64,688         49,408    
Operating margin   12.7 %     10.7 %     8.4 %  
             
Other income (expense):            
Interest expense     (7,076 )       (6,790 )       (6,270 )  
Other     749         (396 )       2,256    
Loss on disposal of equity affiliate     -         (7,060 )       -    
Gain on early extinguishment of debt     -         -         986    
Total other income (expense) - net     (6,327 )       (14,246 )       (3,028 )  
             
Income before taxes     75,709         50,442         46,380    
             
Income taxes     19,300         13,493         13,151    
             
Net earnings     56,409         36,949         33,229    
             
Less: net earnings attributable to noncontrolling interests     219         230         143    
             
Net earnings attributable to Vishay stockholders $   56,190     $   36,719     $   33,086    
             
Basic earnings per share attributable to Vishay stockholders $   0.38     $   0.25     $   0.22    
             
Diluted earnings per share attributable to Vishay stockholders $   0.36     $   0.24     $   0.22    
             
Weighted average shares outstanding - basic     146,381         146,274         147,643    
             
Weighted average shares outstanding - diluted     155,300         154,876         149,845    
             
Cash dividends per share $   0.0625     $   0.0625     $   0.0625    
             

 
VISHAY INTERTECHNOLOGY, INC.         
Summary of Operations        
(Unaudited - In thousands, except per share amounts)        
         
  Six fiscal months ended  
  July 1, 2017   July 2, 2016  
         
Net revenues $   1,251,150     $   1,160,657    
Costs of products sold     917,312         877,220    
Gross profit     333,838         283,437    
Gross margin   26.7 %     24.4 %  
         
Selling, general, and administrative expenses     185,164         182,539    
Restructuring and severance costs     1,950         10,942    
Operating income     146,724         89,956    
Operating margin   11.7 %     7.8 %  
         
Other income (expense):        
Interest expense     (13,866 )       (12,736 )  
Other     353         3,035    
Loss on disposal of equity affiliate     (7,060 )       -    
Gain on early extinguishment of debt     -         4,597    
Total other income (expense) - net     (20,573 )       (5,104 )  
         
Income before taxes     126,151         84,852    
         
Income taxes     32,793         23,471    
         
Net earnings     93,358         61,381    
         
Less: net earnings attributable to noncontrolling interests     449         281    
         
Net earnings attributable to Vishay stockholders $   92,909     $   61,100    
         
Basic earnings per share attributable to Vishay stockholders $   0.63     $   0.41    
         
Diluted earnings per share attributable to Vishay stockholders $   0.60     $   0.41    
         
Weighted average shares outstanding - basic   146,328       147,739    
         
Weighted average shares outstanding - diluted   155,088       150,237    
         
Cash dividends per share $   0.125     $   0.125    
         

 
VISHAY INTERTECHNOLOGY, INC. 
Consolidated Condensed Balance Sheets 
(In thousands) 
         
  July 1, 2017   December 31, 2016  
  (unaudited)      
Assets        
Current assets:        
Cash and cash equivalents $   561,032     $   471,781    
Short-term investments     626,172         626,627    
Accounts receivable, net     327,131         274,027    
Inventories:        
Finished goods     126,667         109,075    
Work in process     175,027         162,311    
Raw materials     117,100         109,859    
Total inventories     418,794         381,245    
         
Prepaid expenses and other current assets     117,055         110,792    
Total current assets     2,050,184         1,864,472    
         
Property and equipment, at cost:        
Land     91,282         89,753    
Buildings and improvements     586,898         570,932    
Machinery and equipment     2,376,420         2,283,222    
Construction in progress     58,150         71,777    
Allowance for depreciation     (2,266,097 )       (2,166,813 )  
      846,653         848,871    
         
Goodwill     142,209         141,407    
         
Other intangible assets, net     76,945         84,463    
         
Other assets     142,853         138,588    
Total assets $   3,258,844     $   3,077,801    
         

 
VISHAY INTERTECHNOLOGY, INC. 
Consolidated Condensed Balance Sheets (continued) 
(In thousands) 
           
  July 1, 2017   December 31, 2016    
  (unaudited)        
Liabilities and stockholders' equity          
Current liabilities:          
Notes payable to banks $   11     $   3      
Trade accounts payable     181,906         174,107      
Payroll and related expenses     129,836         114,576      
Other accrued expenses     153,546         149,131      
Income taxes     9,630         19,033      
Total current liabilities     474,929         456,850      
           
Long-term debt less current portion     350,329         357,023      
Deferred income taxes     288,516         286,797      
Other liabilities     65,366         59,725      
Accrued pension and other postretirement costs     267,879         257,789      
Total liabilities     1,447,019         1,418,184      
           
Redeemable convertible debentures     88,044         88,659      
           
Equity:          
Vishay stockholders' equity          
Common stock     13,413         13,385      
Class B convertible common stock     1,213         1,213      
Capital in excess of par value     1,955,926         1,952,988      
Retained earnings (accumulated deficit)     (232,418 )       (307,417 )    
Accumulated other comprehensive income (loss)     (19,503 )       (94,652 )    
Total Vishay stockholders' equity     1,718,631         1,565,517      
Noncontrolling interests     5,150         5,441      
Total equity     1,723,781         1,570,958      
Total liabilities, temporary equity, and equity $   3,258,844     $   3,077,801      
           

 
VISHAY INTERTECHNOLOGY, INC. 
Consolidated Statements of Cash Flows 
(Unaudited - In thousands) 
  Six fiscal months ended  
  July 1, 2017   July 2, 2016*  
         
Operating activities        
Net earnings $   93,358     $   61,381    
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:        
Depreciation and amortization     80,380         79,117    
(Gain) loss on disposal of property and equipment     (51 )       76    
Accretion of interest on convertible debentures     2,444         2,259    
Inventory write-offs for obsolescence     9,729         11,225    
Loss on disposal of equity affiliate     7,060         -    
Gain on early extinguishment of debt     -          (4,597 )  
Other     9,219         (11,845 )  
Changes in operating assets and liabilities, net of effects of businesses acquired     (73,873 )       (42,203 )  
Net cash provided by operating activities     128,266         95,413    
         
Investing activities        
Purchase of property and equipment     (49,067 )       (51,073 )  
Proceeds from sale of property and equipment     1,288         193    
Purchase of short-term investments     (418,114 )       (274,524 )  
Maturity of short-term investments     454,918         351,326    
Other investing activities     (6,664 )       2,975    
Net cash provided by (used in) investing activities     (17,639 )       28,897    
         
Financing activities        
Principal payments on long-term debt and capital lease obligations     -          (34,044 )  
Net proceeds (payments) on revolving credit lines     (10,000 )       (66,000 )  
Common stock repurchases     -          (6,123 )  
Net changes in short-term borrowings     7         (725 )  
Dividends paid to common stockholders     (16,761 )       (16,924 )  
Dividends paid to Class B common stockholders     (1,516 )       (1,516 )  
Proceeds from stock options exercised     1,260         -    
Distributions to noncontrolling interests     (740 )       (707 )  
Cash withholding taxes paid when shares withheld for vested equity awards     (1,971 )       (442 )  
Other financing activities     (1,255 )       -    
Net cash provided by (used in) financing activities     (30,976 )       (126,481 )  
Effect of exchange rate changes on cash and cash equivalents     9,600         1,831    
         
Net increase (decrease) in cash and cash equivalents     89,251         (340 )  
         
Cash and cash equivalents at beginning of period     471,781         475,507    
Cash and cash equivalents at end of period $   561,032     $   475,167    
         
* recast for the retrospective adoption of ASU 2016-09.        
         
         

 
VISHAY INTERTECHNOLOGY, INC.   
Reconciliation of Adjusted Earnings Per Share   
(Unaudited - In thousands, except per share amounts)     
  Fiscal quarters ended   Six fiscal months ended  
  July 1, 2017   April 1, 2017   July 2, 2016   July 1, 2017   July 2, 2016  
                     
GAAP net earnings attributable to Vishay stockholders $   56,190     $   36,719     $   33,086     $   92,909     $   61,100    
                     
Reconciling items affecting operating income:                    
Restructuring and severance costs $   481     $   1,469     $   4,467     $   1,950     $   10,942    
                     
Reconciling items affecting other income (expense):                    
Loss on disposal of equity affiliate $   -     $   7,060     $   -     $   7,060     $   -    
Gain on early extinguishment of debt     -         -         (986 )       -         (4,597 )  
                     
Reconciling items affecting tax expense (benefit):                    
Effects of cash repatriation program $   (1,240 )   $   (968 )   $   (1,217 )   $   (2,208 )   $   (1,986 )  
Tax effects of pre-tax items above      (156 )       (441 )       (1,108 )       (597 )       (1,995 )  
                     
                     
Adjusted net earnings $   55,275     $   43,839     $   34,242     $   99,114     $   63,464    
                     
Adjusted weighted average diluted shares outstanding     155,300         154,876         149,845         155,088         150,237    
                     
Adjusted earnings per diluted share* $   0.36     $   0.28     $   0.23     $   0.64     $   0.42    
                     
* 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   Six fiscal months ended  
  July 1, 2017   April 1, 2017   July 2, 2016   July 1, 2017   July 2, 2016  
Net cash provided by operating activities $   84,592     $   43,674     $   74,713     $   128,266     $   95,413    
Proceeds from sale of property and equipment     345         943         129         1,288         193    
Less: Capital expenditures     (32,399 )       (16,668 )       (31,317 )       (49,067 )       (51,073 )  
Free cash $   52,538     $   27,949     $   43,525     $   80,487     $   44,533    
                     

 
VISHAY INTERTECHNOLOGY, INC. 
Reconciliation of EBITDA and Adjusted EBITDA 
(Unaudited - In thousands) 
  Fiscal quarters ended   Six fiscal months ended  
  July 1, 2017   April 1, 2017   July 2, 2016   July 1, 2017   July 2, 2016  
                     
GAAP net earnings attributable to Vishay stockholders $   56,190     $   36,719     $   33,086     $   92,909     $   61,100    
Net earnings attributable to noncontrolling interests     219         230         143         449         281    
Net earnings $   56,409     $   36,949     $   33,229     $   93,358     $   61,381    
                     
Interest expense $   7,076     $   6,790     $   6,270     $   13,866     $   12,736    
Interest income     (1,534 )       (1,263 )       (1,033 )       (2,797 )       (2,167 )  
Income taxes     19,300         13,493         13,151         32,793         23,471    
Depreciation and amortization     40,168         40,212         39,100         80,380         79,117    
EBITDA $   121,419     $   96,181     $   90,717     $   217,600     $   174,538    
                     
Reconciling items                    
Restructuring and severance costs $   481     $   1,469     $   4,467     $   1,950     $   10,942    
Loss on disposal of equity affiliate     -         7,060         -         7,060         -    
Gain on early extinguishment of debt     -         -         (986 )       -         (4,597 )  
                     
Adjusted EBITDA $   121,900     $   104,710     $   94,198     $   226,610     $   180,883    
                     
Adjusted EBITDA margin**   18.9 %     17.3 %     16.0 %     18.1 %     15.6 %  
                     
** Adjusted EBITDA as a percentage of net revenues   
                     

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

Primary Logo