Vishay Intertechnology Inc.

11/06/2024 | Press release | Distributed by Public on 11/06/2024 06:12

Vishay Intertechnology Reports Fiscal Third Quarter 2024 Results Form 8 K

Vishay Intertechnology Reports Fiscal Third Quarter 2024 Results

Malvern, PA, November 6, 2024 - Vishay Intertechnology, Inc., (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive electronic components, today announced results for the fiscal third quarter ended September 28, 2024.

Highlights
•
3Q 2024 revenues of $735.4 million
•
Gross margin was 20.5% and included the negative impact of approximately 150 basis points related to the addition of Newport
•
GAAP loss per share of ($0.14); adjusted EPS of $0.08 per share
•
3Q 2024 book-to-bill of 0.88 with book-to-bill of 0.79 for semiconductors and 0.97 for passive components
•
Backlog at quarter end was 4.4 months

"For the third consecutive quarter this year, revenue has held fairly constant, reflecting a prolonged period of inventory de-stocking as the pace of consumption by industrial customers remains slow, backlogs are pushed out and macroeconomic conditions in Europe worsen," said Joel Smejkal, President and CEO. "While the industry remains in a downcycle, we are making the necessary adjustments to manage costs while continuing to execute our five-year strategic plan. We are preparing to participate fully in the next industry up-cycle and we are putting the foundation in place to capitalize on the longer term demand catalysts of e-mobility and sustainability to drive faster revenue growth, and improve profitability and returns on invested capital."

4Q 2024 Outlook
For the fourth quarter of 2024, management expects revenues in the range of $720 million +/- $20 million, with gross profit margin in the range of 20.0% +/- 50 basis points, including the negative impact of approximately 175 to 200 basis points from the addition of Newport.

Conference Call
A conference call to discuss Vishay's third quarter financial results is scheduled for Wednesday, November 6, 2024 at 9:00 a.m. ET. To participate in the live conference call, please pre-register at https://register.vevent.com/register/BI24b8e37c574c42d897f4df9a7a5aa306. Upon registering, you will be emailed a dial-in number, and unique PIN.

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.

There will be a replay of the conference call available on the Investor Relations website approximately one hour following the call and will remain available for 30 days.






About Vishay
Vishay manufactures one of the world's largest portfolios of discrete semiconductors and passive electronic components that are essential to innovative designs in the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets. Serving customers worldwide, Vishay is The DNA of tech®. Vishay Intertechnology, Inc. is a Fortune 1,000 Company listed on the NYSE (VSH). More on Vishay 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 free cash; earnings before interest, taxes, depreciation and amortization ("EBITDA"); and 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 free cash, EBITDA, and 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. The calculations of these measures 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 forecasted revenues and margins, capital investment, capacity expansion, returns on invested capital, stockholder returns, 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 and expressions such as "intend," "suggest," "guide," "will," "expect," 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; manufacturing or supply chain interruptions or changes in customer demand (including due to political, economic, and health instability and military conflicts and hostilities); delays or difficulties in implementing our cost reduction strategies; delays or difficulties in expanding our manufacturing capacities; an inability to attract and retain highly qualified personnel; 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; that the Newport wafer fab will not be integrated successfully into the Company's overall business; that the expected benefits of the acquisition may not be realized; that the fab's standards, procedures and controls will not be brought into conformance within the Company's operation; difficulties in transitioning and retaining fab employees following the acquisition; difficulties in consolidating facilities and transferring processes and know-how; the diversion of our management's attention from the management of our current business; changes in U.S. and foreign trade regulations and tariffs, and uncertainty regarding the same; 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.

The DNA of tech™ is a trademark of Vishay Intertechnology.

Contact:
Vishay Intertechnology, Inc.
Peter Henrici
Executive Vice President, Corporate Development
+1-610-644-1300



VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands, except per share amounts)
Fiscal quarters ended
September 28, 2024
June 29, 2024
September 30, 2023
Net revenues
$
735,353
$
741,239
$
853,653
Costs of products sold
584,470
578,369
616,010
Gross profit
150,883
162,870
237,643
Gross margin
20.5
%
22.0
%
27.8
%
Selling, general, and administrative expenses
128,545
124,953
122,513
Restructuring and severance costs
40,614
-
-
Operating income (loss)
(18,276
)
37,917
115,130
Operating margin
-2.5
%
5.1
%
13.5
%
Other income (expense):
Interest expense
(6,596
)
(6,657
)
(7,153
)
Loss on early extinguishment of debt
-
-
(18,874
)
Other
803
5,011
7,409
Total other income (expense) - net
(5,793
)
(1,646
)
(18,618
)
Income (loss) before taxes
(24,069
)
36,271
96,512
Income tax expense (benefit)
(5,076
)
12,391
30,557
Net earnings (loss)
(18,993
)
23,880
65,955
Less: net earnings attributable to noncontrolling interests
306
347
426
Net earnings (loss) attributable to Vishay stockholders
$
(19,299
)
$
23,533
$
65,529
Basic earnings (loss) per share attributable to Vishay stockholders
$
(0.14
)
$
0.17
$
0.47
Diluted earnings (loss) per share attributable to Vishay stockholders
$
(0.14
)
$
0.17
$
0.47
Weighted average shares outstanding - basic
136,793
137,326
139,083
Weighted average shares outstanding - diluted
136,793
138,084
140,001
Cash dividends per share
$
0.10
$
0.10
$
0.10

VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands, except per share amounts)
Nine fiscal months ended
September 28, 2024
September 30, 2023
Net revenues
$
2,222,871
$
2,616,809
Costs of products sold
1,738,711
1,842,980
Gross profit
484,160
773,829
Gross margin
21.8
%
29.6
%
Selling, general, and administrative expenses
381,234
365,515
Restructuring and severance costs
40,614
-
Operating income
62,312
408,314
Operating margin
2.8
%
15.6
%
Other income (expense):
Interest expense
(19,749
)
(18,677
)
Loss on early extinguishment of debt
-
(18,874
)
Other
13,901
15,995
Total other income (expense) - net
(5,848
)
(21,556
)
Income before taxes
56,464
386,758
Income tax expense
20,134
113,199
Net earnings
36,330
273,559
Less: net earnings attributable to noncontrolling interests
1,172
1,211
Net earnings attributable to Vishay stockholders
$
35,158
$
272,348
Basic earnings per share attributable to Vishay stockholders
$
0.26
$
1.95
Diluted earnings per share attributable to Vishay stockholders
$
0.25
$
1.94
Weighted average shares outstanding - basic
137,281
139,828
Weighted average shares outstanding - diluted
138,039
140,577
Cash dividends per share
$
0.30
$
0.30

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(Unaudited - In thousands)
September 28, 2024
December 31, 2023

Assets
Current assets:
Cash and cash equivalents
$
643,771
$
972,719
Short-term investments
13,491
35,808
Accounts receivable, net
428,558
426,674
Inventories:
Finished goods
173,353
167,083
Work in process
290,597
267,339
Raw materials
223,254
213,098
Total inventories
687,204
647,520
Prepaid expenses and other current assets
237,749
214,443
Total current assets
2,010,773
2,297,164
Property and equipment, at cost:
Land
84,851
77,006
Buildings and improvements
769,865
719,387
Machinery and equipment
3,291,983
3,053,868
Construction in progress
295,147
290,593
Allowance for depreciation
(2,963,103
)
(2,846,208
)
1,478,743
1,294,646
Right of use assets
125,969
126,829
Deferred income taxes
160,900
137,394
Goodwill
255,323
201,416
Other intangible assets, net
83,427
72,333
Other assets
105,223
110,141
Total assets
$
4,220,358
$
4,239,923

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets (continued)
(Unaudited - In thousands)
September 28, 2024
December 31, 2023

Liabilities and equity
Current liabilities:
Trade accounts payable
$
209,864
$
191,002
Payroll and related expenses
150,726
161,940
Lease liabilities
27,625
26,485
Other accrued expenses
275,159
239,350
Income taxes
51,052
73,098
Total current liabilities
714,426
691,875
Long-term debt less current portion
820,799
818,188
U.S. transition tax payable
-
47,027
Deferred income taxes
112,110
95,776
Long-term lease liabilities
101,012
102,830
Other liabilities
105,834
87,918
Accrued pension and other postretirement costs
192,614
195,503
Total liabilities
2,046,795
2,039,117
Equity:
Vishay stockholders' equity
Common stock
13,358
13,319
Class B convertible common stock
1,210
1,210
Capital in excess of par value
1,302,335
1,291,499
Retained earnings
1,035,395
1,041,372
Treasury stock (at cost)
(199,440
)
(161,656
)
Accumulated other comprehensive income
14,808
10,337
Total Vishay stockholders' equity
2,167,666
2,196,081
Noncontrolling interests
5,897
4,725
Total equity
2,173,563
2,200,806
Total liabilities and equity
$
4,220,358
$
4,239,923

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Cash Flows
(Unaudited - In thousands)
Nine fiscal months ended
September 28, 2024
September 30, 2023
Operating activities
Net earnings
$
36,330
$
273,559
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
155,272
133,910
Gain on disposal of property and equipment
(1,168
)
(495
)
Inventory write-offs for obsolescence
27,163
27,469
Deferred income taxes
(13,667
)
20,654
Stock compensation expense
14,928
11,610
Loss on early extinguishment of debt
-
18,874
Other
14,506
7,574
Change in U.S. transition tax liability
(37,622
)
(27,670
)
Change in repatriation tax liability
(15,000
)
-
Changes in operating assets and liabilities, net of effects of businesses acquired
(74,696
)
(106,050
)
Net cash provided by operating activities
106,046
359,435
Investing activities
Capital expenditures
(175,175
)
(184,079
)
Proceeds from sale of property and equipment
1,397
1,034
Purchase of businesses, net of cash acquired
(200,185
)
(5,003
)
Purchase of short-term investments
(101,263
)
(82,166
)
Maturity of short-term investments
123,561
308,021
Other investing activities
(1,220
)
(1,219
)
Net cash provided by (used in) investing activities
(352,885
)
36,588
Financing activities
Proceeds from long-term borrowings
-
750,000
Repurchase of convertible senior notes due 2025
-
(386,745
)
Net payments on revolving credit facility
-
(42,000
)
Debt issuance and amendment costs
(1,062
)
(26,547
)
Cash paid for capped call
-
(94,200
)
Dividends paid to common stockholders
(37,467
)
(38,207
)
Dividends paid to Class B common stockholders
(3,629
)
(3,629
)
Repurchase of common stock held in treasury
(37,784
)
(57,661
)
Distributions to noncontrolling interests
-
(867
)
Cash withholding taxes paid when shares withheld for vested equity awards
(4,092
)
(3,994
)
Net cash provided by (used in) financing activities
(84,034
)
96,150
Effect of exchange rate changes on cash and cash equivalents
1,925
(7,879
)
Net increase (decrease) in cash and cash equivalents
(328,948
)
484,294
Cash and cash equivalents at beginning of period
972,719
610,825
Cash and cash equivalents at end of period
$
643,771
$
1,095,119

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of Adjusted Earnings Per Share
(Unaudited - In thousands, except per share amounts)
Fiscal quarters ended
Nine fiscal months ended
September 28, 2024
June 29, 2024
September 30, 2023
September 28, 2024
September 30, 2023
GAAP net earnings (loss) attributable to Vishay stockholders
$
(19,299
)
$
23,533
$
65,529
$
35,158
$
272,348
Reconciling items affecting operating income (loss):
Restructuring and severance costs
$
40,614
$
-
$
-
$
40,614
$
-
Reconciling items affecting other income (expense):
Loss on early extinguishment of debt
$
-
$
-
$
18,874
$
-
$
18,874
Reconciling items affecting tax expense (benefit):
Tax effects of pre-tax items above
(10,299
)
-
(498
)
(10,299
)
(498
)
Adjusted net earnings
$
11,016
$
23,533
$
83,905
$
65,473
$
290,724
Adjusted weighted average diluted shares outstanding
137,558
138,084
140,001
138,039
140,577
Adjusted earnings per diluted share
$
0.08
$
0.17
$
0.60
$
0.47
$
2.07

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of Free Cash
(Unaudited - In thousands)
Fiscal quarters ended
Nine fiscal months ended
September 28, 2024
June 29, 2024
September 30, 2023
September 28, 2024
September 30, 2023
Net cash provided by (used in) operating activities
$
50,565
$
(24,730
)
$
122,303
$
106,046
$
359,435
Proceeds from sale of property and equipment
132
514
21
1,397
1,034
Less: Capital expenditures
(59,527
)
(62,564
)
(66,829
)
(175,175
)
(184,079
)
Free cash
$
(8,830
)
$
(86,780
)
$
55,495
$
(67,732
)
$
176,390

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of EBITDA and Adjusted EBITDA
(Unaudited - In thousands)
Fiscal quarters ended
Nine fiscal months ended
September 28, 2024
June 29, 2024
September 30, 2023
September 28, 2024
September 30, 2023
GAAP net earnings (loss) attributable to Vishay stockholders
$
(19,299
)
$
23,533
$
65,529
$
35,158
$
272,348
Net earnings attributable to noncontrolling interests
306
347
426
1,172
1,211
Net earnings (loss)
$
(18,993
)
$
23,880
$
65,955
$
36,330
$
273,559
Interest expense
$
6,596
$
6,657
$
7,153
$
19,749
$
18,677
Interest income
(5,230
)
(6,663
)
(9,183
)
(20,946
)
(21,419
)
Income taxes
(5,076
)
12,391
30,557
20,134
113,199
Depreciation and amortization
53,595
52,150
46,216
155,272
133,910
EBITDA
$
30,892
$
88,415
$
140,698
$
210,539
$
517,926
Reconciling items
Restructuring and severance costs
40,614
-
-
40,614
-
Loss on early extinguishment of debt
-
-
18,874
-
18,874
Adjusted EBITDA
$
71,506
$
88,415
$
159,572
$
251,153
$
536,800
Adjusted EBITDA margin**
9.7
%
11.9
%
18.7
%
11.3
%
20.5
%
** Adjusted EBITDA as a percentage of net revenues