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CST: 24/02/2020 15:27:41   

Vishay Reports Results for First Quarter 2019

291 Days ago

  • Revenues for Q1 2019 of $745 million
  • Gross Margin Q1 of 28.3%
  • Operating Margin Q1 of 14.5%
  • EPS Q1 of $0.52
  • Adjusted EPS Q1 of $0.51
  • Free cash for trailing 12 months Q1 2019 of $109 million
  • Guidance for Q2 2019 for revenues of $700 to $740 million and gross margins of 26% to 27% at Q1 exchange rates

MALVERN, Pa., May 09, 2019 (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 ended March 30, 2019.

Revenues for the fiscal quarter ended March 30, 2019 were $745.2 million, compared to $775.9 million for the fiscal quarter ended December 31, 2018, and $716.8 million for the fiscal quarter ended March 31, 2018.  Net earnings attributable to Vishay stockholders for the fiscal quarter ended March 30, 2019 were $75.5 million, or $0.52 per diluted share, compared to $102.4 million, or $0.69 per diluted share for the fiscal quarter ended December 31, 2018, and $62.4 million, or $0.39 per diluted share for the fiscal quarter ended March 31, 2018.

As summarized on the attached reconciliation schedule, all periods presented include items affecting comparability.  Adjusted earnings per diluted share, which exclude these items net of tax and the unusual tax items, were $0.51, $0.58, and $0.40 for the fiscal quarters ended March 30, 2019, December 31, 2018, and March 31, 2018, respectively.

Commenting on the results for the first quarter 2019, Dr. Gerald Paul, President and Chief Executive Officer, stated, “The first quarter 2019 results are in line with the past two excellent years. While most of our end markets continued to be friendly, we saw a substantial increase of inventories in the supply chain. We seem to be entering a phase of normalization of backlogs and inventories of our products at distributors. In the short-term, the anticipated inventory reductions of distributors will negatively impact our revenues, as reflected in our guidance. At the same time, we had a book-to-bill for OEM of again substantially above 1.”

Commenting on the outlook Dr. Paul stated, “For the second quarter, we guide for revenues of $700 to $740 million and gross margins of 26% to 27% at the exchange rates for the first quarter.”

A conference call to discuss Vishay’s first quarter financial results is scheduled for Thursday, May 9, 2019 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 8555287.

There will be a replay of the conference call from 12:00 p.m. ET on Thursday, May 9, 2019 through 11:59 p.m. ET on Thursday, May 16, 2019. 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 8555287.

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, inventories, product demand, manufacturing capacities, 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; 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; 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.

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

           
           
VISHAY INTERTECHNOLOGY, INC.          
Summary of Operations          
(Unaudited - In thousands, except per share amounts)          
           
  Fiscal quarters ended
  March 30, 2019   December 31, 2018   March 31, 2018
           
Net revenues $ 745,159     $ 775,892     $ 716,795  
Costs of products sold   534,000       556,202       511,495  
Gross profit   211,159       219,690       205,300  
Gross margin   28.3 %     28.3 %     28.6 %
           
Selling, general, and administrative expenses   103,424       100,023       101,238  
Operating income   107,735       119,667       104,062  
Operating margin   14.5 %     15.4 %     14.5 %
           
Other income (expense):          
Interest expense   (8,392 )     (9,818 )     (7,677 )
Other components of net periodic pension cost   (3,396 )     (2,782 )     (3,519 )
Other   5,308       2,597       (847 )
Loss on early extinguishment of debt   (1,307 )     (9,274 )     -  
Total other income (expense) - net   (7,787 )     (19,277 )     (12,043 )
           
Income before taxes   99,948       100,390       92,019  
           
Income taxes   24,307       (2,269 )     29,474  
           
Net earnings   75,641       102,659       62,545  
           
Less: net earnings attributable to noncontrolling interests   182       240       179  
           
Net earnings attributable to Vishay stockholders $ 75,459     $ 102,419     $ 62,366  
           
Basic earnings per share attributable to Vishay stockholders $ 0.52     $ 0.71     $ 0.43  
           
Diluted earnings per share attributable to Vishay stockholders $ 0.52     $ 0.69     $ 0.39  
           
Weighted average shares outstanding - basic   144,554       144,384       144,327  
           
Weighted average shares outstanding - diluted   145,289       148,378       159,502  
           
Cash dividends per share $ 0.0850     $ 0.0850     $ 0.0675  
           

 

       
VISHAY INTERTECHNOLOGY, INC.      
Consolidated Condensed Balance Sheets      
(In thousands)      
       
  March 30, 2019   December 31, 2018
  (Unaudited)    
Assets      
Current assets:      
Cash and cash equivalents $ 749,426     $ 686,032  
Short-term investments   8,411       78,286  
Accounts receivable, net   391,960       397,020  
Inventories:      
Finished goods   137,317       138,112  
Work in process   194,617       190,982  
Raw materials   148,293       150,566  
Total inventories   480,227       479,660  
       
Prepaid expenses and other current assets   141,555       142,888  
Total current assets   1,771,579       1,783,886  
       
Property and equipment, at cost:      
Land   74,499       87,622  
Buildings and improvements   569,395       619,445  
Machinery and equipment   2,525,394       2,510,001  
Construction in progress   119,470       125,109  
Allowance for depreciation   (2,339,944 )     (2,373,176 )
    948,814       969,001  
       
Right of use assets   96,281       -  
       
Goodwill   150,628       147,480  
       
Other intangible assets, net   67,524       65,688  
       
Other assets   146,224       140,143  
Total assets $ 3,181,050     $ 3,106,198  
       

 

       
VISHAY INTERTECHNOLOGY, INC.      
Consolidated Condensed Balance Sheets (continued)      
(In thousands)      
       
  March 30, 2019   December 31, 2018
  (Unaudited)    
       
Liabilities and stockholders' equity      
Current liabilities:      
Notes payable to banks $ 18     $ 18  
Trade accounts payable   192,221       218,322  
Payroll and related expenses   135,821       141,670  
Lease liabilities   14,760       -  
Other accrued expenses   160,756       229,660  
Income taxes   70,653       54,436  
Total current liabilities   574,229       644,106  
       
Long-term debt less current portion   492,830       494,509  
U.S. transition tax payable   154,953       154,953  
Deferred income taxes   86,209       85,471  
Long-term lease liabilities   86,684       -  
Other liabilities   79,492       79,489  
Accrued pension and other postretirement costs   254,835       260,984  
Total liabilities   1,729,232       1,719,512  
       
Redeemable convertible debentures   206       2,016  
       
Equity:      
Vishay stockholders' equity      
Common stock   13,234       13,212  
Class B convertible common stock   1,210       1,210  
Capital in excess of par value   1,425,101       1,436,011  
Retained earnings (accumulated deficit)   24,922       (61,258 )
Accumulated other comprehensive income (loss)   (15,323 )     (6,791 )
Total Vishay stockholders' equity   1,449,144       1,382,384  
Noncontrolling interests   2,468       2,286  
Total equity   1,451,612       1,384,670  
Total liabilities, temporary equity, and equity $ 3,181,050     $ 3,106,198  
       

 

       
VISHAY INTERTECHNOLOGY, INC.      
Consolidated Statements of Cash Flows      
(Unaudited - in thousands)  
  Three fiscal months ended
  March 30, 2019   March 31, 2018
       
Operating activities      
Net earnings $ 75,641     $ 62,545  
Adjustments to reconcile net earnings (loss) to      
net cash provided by operating activities:      
Depreciation and amortization   40,428       40,558  
(Gain) loss on disposal of property and equipment   (173 )     (176 )
Accretion of interest on convertible debt instruments   3,490       1,309  
Inventory write-offs for obsolescence   6,967       5,457  
Loss on early extinguishment of debt   1,307       -  
Deferred income taxes   (2,614 )     7,014  
Other   (1,744 )     2,908  
Changes in operating assets and liabilities, net of effects of businesses acquired   (43,784 )     (72,756 )
Net cash provided by operating activities   79,518       46,859  
       
Investing activities      
Purchase of property and equipment   (36,367 )     (28,273 )
Proceeds from sale of property and equipment   395       184  
Purchase of businesses, net of cash acquired   (11,862 )     (12,072 )
Purchase of short-term investments   (1,920 )     (39,243 )
Maturity of short-term investments   71,455       93,194  
Other investing activities   2,893       (935 )
Net cash provided by investing activities   24,594       12,855  
       
Financing activities      
Repurchase of convertible debentures   (22,695 )     -  
Net proceeds (payments) on revolving credit lines   -       34,000  
Net changes in short-term borrowings   -       52  
Dividends paid to common stockholders   (11,249 )     (8,918 )
Dividends paid to Class B common stockholders   (1,028 )     (817 )
Cash withholding taxes paid when shares withheld for vested equity awards   (2,659 )     (2,297 )
Net cash provided by (used in) financing activities   (37,631 )     22,020  
Effect of exchange rate changes on cash and cash equivalents   (3,087 )     9,825  
       
Net increase in cash and cash equivalents   63,394       91,559  
       
Cash and cash equivalents at beginning of period   686,032       748,032  
Cash and cash equivalents at end of period $ 749,426     $ 839,591  
       

 

           
VISHAY INTERTECHNOLOGY, INC.          
Reconciliation of Adjusted Earnings Per Share          
(Unaudited - In thousands, except per share amounts)          
  Fiscal quarters ended
  March 30, 2019   December 31, 2018   March 31, 2018
           
GAAP net earnings attributable to Vishay stockholders $ 75,459     $ 102,419     $ 62,366
           
Reconciling items affecting other income (expense):          
Loss on early extinguishment of debt $ 1,307     $ 9,274     $ -
           
Reconciling items affecting tax expense (benefit):          
Change in deferred taxes due to early extinguishment of debt $ (1,312 )   $ (20,914 )   $ -
Effects of cash repatriation program   (585 )     (3,037 )     1,316
Tax effects of pre-tax items above   (290 )     (2,028 )     -
           
Adjusted net earnings $ 74,579     $ 85,714     $ 63,682
           
Adjusted weighted average diluted shares outstanding   145,289       148,378       159,502
           
Adjusted earnings per diluted share $ 0.51     $ 0.58     $ 0.40
           

 

           
VISHAY INTERTECHNOLOGY, INC.          
Reconciliation of Free Cash          
(Unaudited - In thousands)          
  Fiscal quarters ended
  March 30, 2019   December 31, 2018   March 31, 2018
Net cash provided by operating activities $ 79,518     $ 149,615     $ 46,859  
Proceeds from sale of property and equipment   395       47,106       184  
Less: Capital expenditures   (36,367 )     (103,508 )     (28,273 )
Free cash $ 43,546     $ 93,213     $ 18,770  
           

 

           
VISHAY INTERTECHNOLOGY, INC.          
Reconciliation of EBITDA and Adjusted EBITDA          
(Unaudited - In thousands)          
  Fiscal quarters ended
  March 30, 2019   December 31, 2018   March 31, 2018
           
GAAP net earnings attributable to Vishay stockholders $ 75,459     $ 102,419     $ 62,366  
Net earnings attributable to noncontrolling interests   182       240       179  
Net earnings $ 75,641     $ 102,659     $ 62,545  
           
Interest expense $ 8,392     $ 9,818     $ 7,677  
Interest income   (2,199 )     (3,638 )     (2,036 )
Income taxes   24,307       (2,269 )     29,474  
Depreciation and amortization   40,428       39,975       40,558  
EBITDA $ 146,569     $ 146,545     $ 138,218  
           
Reconciling items          
Loss on early extinguishment of debt $ 1,307     $ 9,274     $ -  
           
Adjusted EBITDA $ 147,876     $ 155,819     $ 138,218  
           
Adjusted EBITDA margin**   19.8 %     20.1 %     19.3 %
           
** Adjusted EBITDA as a percentage of net revenues          

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