• Vishay Intertechnology Reports Third Quarter 2024 Results

    ソース: Nasdaq GlobeNewswire / 06 11 2024 07:05:00   America/New_York

    MALVERN, Pa., Nov. 06, 2024 (GLOBE NEWSWIRE) -- 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.

    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:           
    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 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          

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