EX-99.1 2 exhibit99-1.htm EXHIBIT 99.1
Exhibit 99.1



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