• Revenues for Q4 2017 of $674 million and for year 2017 $2,604 million
  • Gross Margin Q4 of 26.2% and year 2017 of 26.9%
  • Adjusted Operating Margin Q4 of 11.7% and year 2017 of 12.4%
  • EPS Q4 of ($1.23) and year 2017 ($0.14)
  • Adjusted EPS Q4 of $0.37 and year 2017 of $1.43
  • Cash from operations for year 2017 of $369 million and capital expenditures of $170 million
  • Charge of $235 million related to the enactment of the U.S. Tax Cuts and Jobs Act
  • Guidance for Q1 2018 for revenues of $665 to $705 million and gross margins of 26.5% to 27.5% at Q4 exchange rates

MALVERN, Pa., Feb. 06, 2018 (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, 2017.

Revenues for the year ended December 31, 2017 were $2,603.5 million, compared to $2,323.4 million for the year ended December 31, 2016.  The net loss attributable to Vishay stockholders for the year ended December 31, 2017 was $20.3 million, or $(0.14) per share, reflecting charges related to the enactment of the U.S. Tax Cuts and Jobs Act.  Net earnings attributable to Vishay stockholders for the year ended December 31, 2016 were $48.8 million, or $0.32 per share.

Revenues for the fiscal quarter ended December 31, 2017 were $674.5 million, compared to $570.8 million for the fiscal quarter ended December 31, 2016.  Net loss attributable to Vishay stockholders for the fiscal quarter ended December 31, 2017 was $(177.7) million, or $(1.23) per share, compared to $(48.7) million, or $(0.33) per share for the fiscal quarter ended December 31, 2016.

As summarized on the attached reconciliation schedule, all periods presented include items affecting comparability, the most significant of which is a $235 million charge related to the enactment of the U.S. Tax Cuts and Jobs Act.  Adjusted earnings per diluted share, which exclude these items net of tax and the unusual tax items, were $0.37 and $1.43 for the fiscal quarter and year ended December 31, 2017, respectively, and $0.18 and $0.85 for the fiscal quarter and year ended December 31, 2016, respectively.

Commenting on the results for the year 2017, Dr. Gerald Paul, President and Chief Executive Officer, stated, "2017 was a very successful year for Vishay. Throughout the year Vishay experienced a very high level of demand of virtually all market segments. Driven by increased volume Vishay demonstrated the leverage of its business model. Vishay continues to increase the manufacturing capacities of its key product lines, mainly by pulling forward certain programs of its 5-year Growth Plan. We are excited about the opportunities that accelerated market growth offers Vishay, especially in automotive and industrial applications."

Dr. Paul continued, commenting on the results for the fourth quarter 2017, "The fourth quarter represented a continuation of the trends of the year. Stretched lead times led to a further increase of an already unusually high backlog. Both OEM and distribution customers remain very confident across the board."

Commenting on the outlook Dr. Paul stated, "For the first quarter based on Vishay's capacity constraints, we guide for revenues of $665 to $705 million and gross margins of 26.5% to 27.5% at the exchange rates for the fourth quarter."

As permitted by Securities and Exchange Commission Staff Accounting Bulletin No. 118, the tax expense recorded in the fourth quarter of 2017 due to the enactment of the U.S. Tax Cuts and Jobs Act is considered "provisional," based on reasonable estimates, and these provisional amounts may be refined during the defined measurement period, as additional analysis is completed.

Effective January 1, 2018, the Company will adopt several new accounting standards, including ASU 2014-09, "Revenue from Contracts with Customers" and related guidance; ASU 2016-01, "Recognition and Measurement of Financial Assets and Liabilities;" and ASU 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost."  The impact of these new accounting standards on income before taxes is not expected to be material; however, the changes will impact individual line items, and could thus slightly impact gross margin and operating margin calculations.  More detailed discussion of the impact of these new accounting standards will be included in the Company's Annual Report on Form 10-K when it is filed.

A conference call to discuss Vishay's fourth quarter and full year financial results is scheduled for Tuesday, February 6, 2018 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 8184089.

There will be a replay of the conference call from 12:00 p.m. ET on Tuesday, February 6, 2018 through 11:59 p.m. ET on Tuesday, February 13, 2018. 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 8184089.

A live audio webcast of the conference call and a PDF copy of the press release and the quarterly presentation will be accessible 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, manufacturing capacities, customer confidence, anticipated growth areas for the company, global growth markets generally 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;  changes in applicable accounting standards 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.

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

 
       
VISHAY INTERTECHNOLOGY, INC.       
Summary of Operations      
(In thousands, except per share amounts)      
       
  Years ended
  December 31, 2017   December 31, 2016
  (unaudited)    
       
Net revenues $   2,603,522     $   2,323,431  
Costs of products sold     1,903,910         1,753,648  
Gross profit     699,612         569,783  
  Gross margin   26.9 %     24.5 %
       
Selling, general, and administrative expenses     376,751         367,987  
Restructuring and severance costs     11,273         19,199  
Impairment of intangible assets     -         1,559  
U.S. pension settlement charges     -         79,321  
Operating income     311,588         101,717  
  Operating margin   12.0 %     4.4 %
       
Other income (expense):      
  Interest expense     (27,850 )       (25,623 )
  Other     1,738         4,716  
  Loss on disposal of equity affiliate     (6,112 )       -  
  Gain on early extinguishment of debt     -         4,597  
  Gain (loss) related to Tianjin explosion     -         8,809  
  Total other income (expense) - net     (32,224 )       (7,501 )
       
Income before taxes     279,364         94,216  
       
Income taxes     298,924         44,843  
       
Net earnings (loss)     (19,560 )       49,373  
       
Less: net earnings (loss) attributable to noncontrolling interests     784         581  
       
Net earnings (loss) attributable to Vishay stockholders $   (20,344 )   $   48,792  
       
Basic earnings (loss) per share attributable to Vishay stockholders $   (0.14 )   $   0.33  
       
Diluted earnings (loss) per share attributable to Vishay stockholders $   (0.14 )   $   0.32  
       
Weighted average shares outstanding - basic     145,633       147,152  
       
Weighted average shares outstanding - diluted     145,633       150,697  
       
Cash dividends per share $   0.255     $   0.250  
       

 
           
VISHAY INTERTECHNOLOGY, INC.           
Summary of Operations          
(Unaudited - In thousands, except per share amounts)          
           
  Fiscal quarters ended
  December 31, 2017   September 30, 2017   December 31, 2016
           
Net revenues $   674,489     $   677,883     $   570,819  
Costs of products sold     497,988         488,610         438,374  
Gross profit     176,501         189,273         132,445  
  Gross margin   26.2 %     27.9 %     23.2 %
           
Selling, general, and administrative expenses     97,886         93,701         91,532  
Restructuring and severance costs     6,079         3,244         7,060  
U.S. pension settlement charges     -         -         79,321  
Operating income (loss)     72,536         92,328         (45,468 )
  Operating margin   10.8 %     13.6 %     -8.0 %
           
Other income (expense):          
  Interest expense     (7,046 )       (6,938 )       (6,722 )
  Other     587         798         2,061  
  Gain on disposal of equity affiliate     948         -         -  
  Gain related to Tianjin explosion     -         -         8,809  
  Total other income (expense) - net     (5,511 )       (6,140 )       4,148  
           
Income (loss) before taxes     67,025         86,188         (41,320 )
           
Income taxes     244,526         21,605         7,284  
           
Net earnings (loss)     (177,501 )       64,583         (48,604 )
           
Less: net earnings (loss) attributable to noncontrolling interests     156         179         144  
           
Net earnings (loss) attributable to Vishay stockholders $   (177,657 )   $   64,404     $   (48,748 )
           
Basic earnings (loss) per share attributable to Vishay stockholders $   (1.23 )   $   0.44     $   (0.33 )
           
Diluted earnings (loss) per share attributable to Vishay stockholders $   (1.23 )   $   0.41     $   (0.33 )
           
Weighted average shares outstanding - basic   144,165         145,728         146,195  
           
Weighted average shares outstanding - diluted   144,165         156,701         146,195  
           
Cash dividends per share $   0.0675     $   0.0625     $   0.0625  
           

 
         
VISHAY INTERTECHNOLOGY, INC.         
Consolidated Condensed Balance Sheets        
(In thousands)        
         
  December 31, 2017   December 31, 2016  
  (unaudited)      
Assets        
Current assets:        
  Cash and cash equivalents $   748,032     $   471,781    
  Short-term investments     547,136         626,627    
  Accounts receivable, net     340,027         274,027    
  Inventories:        
     Finished goods     127,272         109,075    
     Work in process     177,419         162,311    
     Raw materials     132,068         109,859    
  Total inventories     436,759         381,245    
         
  Prepaid expenses and other current assets     120,336         110,792    
Total current assets     2,192,290         1,864,472    
         
Property and equipment, at cost:        
  Land     92,285         89,753    
  Buildings and improvements     606,168         570,932    
  Machinery and equipment     2,415,769         2,283,222    
  Construction in progress     103,058         71,777    
  Allowance for depreciation     (2,311,522 )       (2,166,813 )  
      905,758         848,871    
         
Goodwill     142,742         141,407    
         
Other intangible assets, net     69,754         84,463    
         
Other assets     148,645         138,588    
  Total assets $   3,459,189     $   3,077,801    
         

 
           
VISHAY INTERTECHNOLOGY, INC.           
Consolidated Condensed Balance Sheets (continued)          
(In thousands)          
           
  December 31, 2017   December 31, 2016    
  (unaudited)        
Liabilities and stockholders' equity          
Current liabilities:          
  Notes payable to banks $   4     $   3      
  Trade accounts payable     222,373         174,107      
  Payroll and related expenses     135,702         114,576      
  Other accrued expenses     156,030         149,131      
  Income taxes     50,226         19,033      
Total current liabilities     564,335         456,850      
           
Long-term debt less current portion     370,470         357,023      
U.S. transition tax payable     151,200         -       
Deferred income taxes     335,775         286,797      
Other liabilities     73,449         59,725      
Accrued pension and other postretirement costs     281,701         257,789      
Total liabilities     1,776,930         1,418,184      
           
Redeemable convertible debentures     252,070         88,659      
           
Equity:          
Vishay stockholders' equity          
  Common stock     13,188         13,385      
  Class B convertible common stock     1,213         1,213      
  Capital in excess of par value     1,752,506         1,952,988      
  Retained earnings (accumulated deficit)     (364,464 )       (307,417 )    
  Accumulated other comprehensive income (loss)     25,714         (94,652 )    
  Total Vishay stockholders' equity     1,428,157         1,565,517      
Noncontrolling interests     2,032         5,441      
Total equity     1,430,189         1,570,958      
Total liabilities, temporary equity, and equity $   3,459,189     $   3,077,801      
           

 
         
VISHAY INTERTECHNOLOGY, INC.         
Consolidated Statements of Cash Flows        
(In thousands)    
  Years ended  
  December 31, 2017   December 31, 2016*  
  (unaudited)      
Operating activities        
Net earnings (loss) $   (19,560 )   $   49,373    
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:         
  Depreciation and amortization     163,146         159,363    
  (Gain) loss on disposal of property and equipment     (265 )       (4,054 )  
  Accretion of interest on convertible debentures     4,984         4,610    
  Inventory write-offs for obsolescence     17,771         22,619    
  Loss on disposal of equity affiliate     6,112         -    
  Impairment of intangible assets     -          1,559    
  U.S. pension settlement charges     -          79,321    
  Pensions and other postretirement benefits, net of contributions     (2,425 )       (3,282 )  
  Gain on early extinguishment of debt     -          (4,597 )  
  U.S. transition tax     180,000         -    
  Deferred income taxes     52,377         (2,519 )  
  Other     13,044         (1,678 )  
  Changes in operating assets and liabilities, net of effects of businesses acquired     (46,407 )       (4,206 )  
Net cash provided by operating activities     368,777         296,509    
         
Investing activities        
Purchase of property and equipment     (170,432 )       (134,635 )  
Proceeds from sale of property and equipment     1,685         5,701    
Purchase of short-term investments     (749,600 )       (555,250 )  
Maturity of short-term investments     887,729         532,601    
Other investing activities     (4,189 )       2,942    
Net cash used in investing activities     (34,807 )       (148,641 )  
         
Financing activities        
Principal payments on long-term debt and capital lease obligations     -          (34,044 )  
Net proceeds (payments) on revolving credit lines     7,000         (47,000 )  
Common stock repurchases     (39,944 )       (23,159 )  
Net changes in short-term borrowings     1         (723 )  
Dividends paid to common stockholders     (33,956 )       (33,693 )  
Dividends paid to Class B common stockholders     (3,093 )       (3,032 )  
Proceeds from stock options exercised     1,260         356    
Distributions to noncontrolling interests     (1,140 )       (707 )  
Acquisition of noncontrolling interests     (4,100 )       -    
Cash withholding taxes paid when shares withheld for vested equity awards     (1,971 )       (542 )  
Other financing activities     (1,255 )       -    
Net cash used in financing activities     (77,198 )       (142,544 )  
Effect of exchange rate changes on cash and cash equivalents     19,479         (9,050 )  
         
Net increase (decrease) in cash and cash equivalents     276,251         (3,726 )  
         
Cash and cash equivalents at beginning of period     471,781         475,507    
Cash and cash equivalents at end of period $   748,032     $   471,781    
         
* 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   Years ended
  December 31, 2017   September 30, 2017   December 31, 2016   December 31, 2017   December 31, 2016
                   
GAAP net earnings (loss) attributable to Vishay stockholders $   (177,657 )   $   64,404     $   (48,748 )   $   (20,344 )   $   48,792  
                   
Reconciling items affecting operating income:                  
Restructuring and severance costs $   6,079     $   3,244     $   7,060     $   11,273     $   19,199  
Impairment of intangible assets     -         -         -         -         1,559  
U.S. pension settlement charges     -         -         79,321         -         79,321  
                   
Reconciling items affecting other income (expense):                  
Loss (gain) on disposal of equity affiliate $   (948 )   $   -     $   -     $   6,112     $   -  
Gain on early extinguishment of debt     -         -         -         -         (4,597 )
Loss (gain) related to Tianjin explosion     -         -         (8,809 )       -         (8,809 )
                   
Reconciling items affecting tax expense (benefit):                  
Enactment of TCJA $   234,855     $   -     $   -     $   234,855     $   -  
Effects of cash repatriation program     (2,702 )       (892 )       (165 )       (5,802 )       (3,553 )
Additional tax expense from AOCI - pension plan     -          -          34,853         -          34,853  
Effects of changes in uncertain tax positions     2,369         (804 )       (8,704 )       1,565         (8,704 )
Tax effects of pre-tax items above      (2,060 )       (674 )       (27,465 )       (3,331 )       (29,901 )
                   
                   
Adjusted net earnings $   59,936     $   65,278     $   27,343     $   224,328     $   128,160  
                   
Adjusted weighted average diluted shares outstanding     161,177         156,701         152,408         157,010         150,697  
                   
Adjusted earnings per diluted share* $   0.37     $   0.42     $   0.18     $   1.43     $   0.85  
                   
* 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, 2017   September 30, 2017   December 31, 2016*   December 31, 2017   December 31, 2016*
Net cash provided by operating activities $   122,932     $   117,579     $   83,439     $   368,777     $   296,509  
Proceeds from sale of property and equipment     201         196         4,460         1,685         5,701  
Less: Capital expenditures     (85,642 )       (35,723 )       (53,289 )       (170,432 )       (134,635 )
Free cash $   37,491     $   82,052     $   34,610     $   200,030     $   167,575  
                   
* recast for the retrospective adoption of ASU 2016-09.                
                 

 
                   
VISHAY INTERTECHNOLOGY, INC.                   
Reconciliation of EBITDA and Adjusted EBITDA                  
(Unaudited - In thousands)                  
  Fiscal quarters ended   Years ended
  December 31, 2017   September 30, 2017   December 31, 2016   December 31, 2017   December 31, 2016
                   
GAAP net earnings (loss) attributable to Vishay stockholders $   (177,657 )   $   64,404     $   (48,748 )   $   (20,344 )   $   48,792  
Net earnings (loss) attributable to noncontrolling interests     156         179         144         784         581  
Net earnings (loss)  $   (177,501 )   $   64,583     $   (48,604 )   $   (19,560 )   $   49,373  
                   
Interest expense $   7,046     $   6,938     $   6,722     $   27,850     $   25,623  
Interest income     (1,883 )       (1,802 )       (1,064 )       (6,482 )       (4,264 )
Income taxes     244,526         21,605         7,284         298,924         44,843  
Depreciation and amortization     41,827         40,939         40,220         163,146         159,363  
EBITDA $   114,015     $   132,263     $   4,558     $   463,878     $   274,938  
                   
Reconciling items                  
Restructuring and severance costs $   6,079     $   3,244     $   7,060     $   11,273     $   19,199  
Impairment of intangible assets     -         -         -         -         1,559  
Loss (gain) on disposal of equity affiliate     (948 )       -         -         6,112         -  
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 )
                   
Adjusted EBITDA $   119,146     $   135,507     $   82,130     $   481,263     $   361,611  
                   
Adjusted EBITDA margin**   17.7 %     20.0 %     14.4 %     18.5 %     15.6 %
                   
** Adjusted EBITDA as a percentage of net revenues                  
                   

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