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

VISHAY REPORTS RESULTS FOR FOURTH QUARTER AND YEAR 2013

·
Revenues for Q4 2013 $616 million and for year 2013 $2,371 million
·
EPS Q4 2013 of $0.20, or adjusted EPS of $0.21 excluding restructuring and severance costs
·
EPS for the year 2013 of $0.81, or adjusted EPS of $0.79 excluding one-time items listed below
·
Cash from operations for the year 2013 of $292 million and capital expenditures of $153 million

MALVERN, PENNSYLVANIA – February 4, 2014 – 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, 2013.

Revenues for the year ended December 31, 2013 were $2,371.0 million, compared to $2,230.1 million for the year ended December 31, 2012.  The net earnings attributable to Vishay stockholders for the year ended December 31, 2013 were $123.0 million, or $0.81 per diluted share, compared to $122.7 million, or $0.79 per diluted share for the year ended December 31, 2012.

Revenues for the fiscal quarter ended December 31, 2013 were $616.2 million, compared to $530.6 million for the fiscal quarter ended December 31, 2012.  The net earnings attributable to Vishay stockholders for the fiscal quarter ended December 31, 2013 were $30.0 million, or $0.20 per diluted share, compared to $21.0 million, or $0.14 per diluted share for the fiscal quarter ended December 31, 2012.

Net earnings attributable to Vishay stockholders for the fiscal quarter ended December 31, 2013 include restructuring and severance costs of $2.8 million.  Net earnings attributable to Vishay stockholders for the fiscal quarter ended December 31, 2012 include one-time tax benefits primarily related to the release of deferred tax valuation allowances in various jurisdictions. The years ended December 31, 2013 and 2012 include other items affecting comparability. These items are summarized on the attached reconciliation schedule. Adjusted net earnings per diluted share, which exclude these items, were $0.21 and $0.79 for the fiscal quarter and year ended December 31, 2013, respectively, and $0.11 and $0.71 for the fiscal quarter and year ended December 31, 2012, respectively.

Commenting on the results for the fourth quarter 2013, Dr. Gerald Paul, President and Chief Executive Officer, stated, "Revenues excluding the effect of a stronger Euro came in at the very high end of guidance. Distributors seem to be confident for the future while the inventory turns of our components at distributors remain acceptable. The ending backlog of $611 million, 20% higher compared to last year, indicates a good start into 2014."

Commenting on the results for the year 2013, Dr. Gerald Paul, stated, "For manufacturers of electronic components, the year 2013 overall has not been bad but developments in relevant market segments were very different. Confidence has grown across the board in the last quarter. In case of a real upturn, Vishay is very well positioned benefitting from increased capacities in strategic product lines; from having improved market access in the industrial segment in Asia, specifically in China; from increased technical resources; from our broad and innovative product portfolio and from our strong position in distribution worldwide."
 
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Commenting on the outlook for the first quarter 2014 Dr. Paul stated, "Based on our backlog and on current order trends, we expect revenues between $580 million and $620 million at similar gross margins, significantly over our revenues in Q1 of prior year."

A conference call to discuss fourth quarter and year ending financial results is scheduled for Tuesday, February 4, 2014 at 9:00 AM 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 30636907.

There will be a replay of the conference call from 10:30 AM ET on Tuesday, February 4, 2014 through 11:59 PM ET on Monday, February 10, 2014. 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 30636907.

There will also be a live audio webcast of the conference call. This can be accessed directly from the Investor Relations section of the Vishay website at http://ir.vishay.com.

About Vishay
Vishay Intertechnology, Inc., a Fortune 1,000 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 http://www.vishay.com.

This press release includes certain financial measures which are not recognized in accordance with generally accepted accounting principles ("GAAP"), including adjusted net earnings and adjusted earnings per share, 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 and should not be viewed as an alternative to GAAP measures of performance. Non-GAAP measures such as adjusted net earnings and adjusted earnings per share 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 adjusted net earnings and adjusted net earnings per diluted share are meaningful to investors because they provide insight with respect to intrinsic operating results of the Company. Reconciling items to arrive at adjusted net earnings represent significant charges or credits that are important to understanding the Company's intrinsic operations. These reconciling items are indicated on the accompanying reconciliation schedule 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.
 
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Statements contained herein that relate to the Company's future performance, including statements with respect to forecasted revenues, margins, cash generation, internal growth, and the general state of the Company, 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; difficulties in implementing our cost reduction and restructuring strategies; 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; uncertainty related to the effects of changes in foreign currency exchange rates; 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.
 
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VISHAY INTERTECHNOLOGY, INC.
  
   
 
Summary of Operations
  
   
 
(In thousands, except per share amounts)
  
   
 
 
  
   
 
 
  
Years ended
  
 
  
December 31,
2013
    
December 31,
2012
  
 
  
(unaudited)
    
 
 
  
   
 
Net revenues
  
$
2,370,979
    
$
2,230,097
  
Costs of products sold
    
1,803,719
      
1,703,424
  
Gross profit
    
567,260
      
526,673
  
  Gross margin
    
23.9
%
    
23.6
%
 
                
Selling, general, and administrative expenses
    
368,542
      
349,625
  
Restructuring and severance costs
    
2,814
      
-
  
Executive compensation charge (credit)
    
(1,778
)
    
-
  
Gain on sale of property
    
-
      
(12,153
)
Operating income
    
197,682
      
189,201
  
  Operating margin
    
8.3
%
    
8.5
%
 
                
Other income (expense):
                
  Interest expense
    
(23,130
)
    
(22,604
)
  Other
    
1,853
      
3,440
  
  Total other income (expense) - net
    
(21,277
)
    
(19,164
)
 
                
Income before taxes
    
176,405
      
170,037
  
 
                
Income taxes
    
52,636
      
46,506
  
 
                
Net earnings
    
123,769
      
123,531
  
 
                
Less: net earnings attributable to noncontrolling interests
    
789
      
793
  
 
                
Net earnings attributable to Vishay stockholders
  
$
122,980
    
$
122,738
  
 
                
Basic earnings per share attributable to Vishay stockholders
  
$
0.85
    
$
0.82
  
 
                
Diluted earnings per share attributable to Vishay stockholders
  
$
0.81
    
$
0.79
  
 
                
Weighted average shares outstanding - basic
    
144,856
      
149,020
  
 
                
Weighted average shares outstanding - diluted
    
151,417
      
155,844
  
 
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VISHAY INTERTECHNOLOGY, INC.
  
   
   
 
Summary of Operations
  
   
   
 
(Unaudited - In thousands, except per share amounts)
  
   
   
 
 
  
   
   
 
 
  
Fiscal quarters ended
  
 
  
December 31,
2013
    
September 28,
2013
    
December 31,
2012
  
 
  
   
   
 
Net revenues
  
$
616,170
    
$
602,890
    
$
530,570
  
Costs of products sold
    
471,721
      
459,670
      
421,779
  
Gross profit
    
144,449
      
143,220
      
108,791
  
  Gross margin
    
23.4
%
    
23.8
%
    
20.5
%
 
                        
Selling, general, and administrative expenses
    
94,601
      
90,067
      
87,277
  
Restructuring and severance costs
    
2,814
      
-
      
-
  
Operating income
    
47,034
      
53,153
      
21,514
  
  Operating margin
    
7.6
%
    
8.8
%
    
4.1
%
 
                        
Other income (expense):
                        
  Interest expense
    
(6,023
)
    
(5,797
)
    
(6,339
)
  Other
    
398
      
556
      
1,500
  
  Total other income (expense) - net
    
(5,625
)
    
(5,241
)
    
(4,839
)
 
                        
Income before taxes
    
41,409
      
47,912
      
16,675
  
 
                        
Income taxes
    
11,135
      
15,043
      
(4,462
)
 
                        
Net earnings
    
30,274
      
32,869
      
21,137
  
 
                        
Less: net earnings attributable to noncontrolling interests
    
253
      
150
      
162
  
 
                        
Net earnings attributable to Vishay stockholders
  
$
30,021
    
$
32,719
    
$
20,975
  
 
                        
Basic earnings per share attributable to Vishay stockholders
  
$
0.20
    
$
0.23
    
$
0.15
  
 
                        
Diluted earnings per share attributable to Vishay stockholders
  
$
0.20
    
$
0.22
    
$
0.14
  
 
                        
Weighted average shares outstanding - basic
    
147,289
      
144,937
      
143,273
  
 
                        
Weighted average shares outstanding - diluted
    
151,156
      
151,890
      
150,193
  
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VISHAY INTERTECHNOLOGY, INC.
  
   
 
Consolidated Condensed Balance Sheets
  
   
 
(In thousands)
  
   
 
 
  
   
 
 
  
December 31,
2013
    
December 31,
2012
  
 
  
(unaudited)
    
 
Assets
  
   
 
Current assets:
  
   
 
  Cash and cash equivalents
  
$
640,348
    
$
697,595
  
  Short-term investments
    
511,231
      
294,943
  
  Accounts receivable, net
    
274,083
      
247,035
  
  Inventories:
                
    Finished goods
    
109,617
      
109,571
  
    Work in process
    
197,600
      
177,350
  
    Raw materials
    
125,491
      
120,728
  
  Total inventories
    
432,708
      
407,649
  
 
                
  Deferred income taxes
    
21,716
      
24,385
  
  Prepaid expenses and other current assets
    
100,594
      
119,656
  
Total current assets
    
1,980,680
      
1,791,263
  
 
                
Property and equipment, at cost:
                
  Land
    
93,685
      
92,348
  
  Buildings and improvements
    
560,418
      
523,091
  
  Machinery and equipment
    
2,340,778
      
2,163,182
  
  Construction in progress
    
95,278
      
101,570
  
  Allowance for depreciation
    
(2,163,540
)
    
(1,965,639
)
 
    
926,619
      
914,552
  
 
                
Goodwill
    
43,132
      
34,866
  
 
                
Other intangible assets, net
    
129,951
      
133,717
  
 
                
Other assets
    
156,757
      
141,879
  
     Total assets
  
$
3,237,139
    
$
3,016,277
  
 
 
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VISHAY INTERTECHNOLOGY, INC.
 
   
 
Consolidated Condensed Balance Sheets (continued)
  
   
 
(In thousands)
  
   
 
 
  
   
 
 
  
December 31,
2013
    
December 31,
2012
  
 
  
(unaudited)
    
 
Liabilities and stockholders' equity
  
   
 
Current liabilities:
  
   
 
  Notes payable to banks
  
$
2
    
$
6
  
  Trade accounts payable
    
163,894
      
147,936
  
  Payroll and related expenses
    
120,997
      
108,353
  
  Other accrued expenses
    
146,670
      
148,660
  
  Income taxes
    
17,502
      
7,215
  
Total current liabilities
    
449,065
      
412,170
  
 
                
Long-term debt less current portion
    
364,911
      
392,931
  
Deferred income taxes
    
157,640
      
129,379
  
Other liabilities
    
99,426
      
108,600
  
Accrued pension and other postretirement costs
    
287,901
      
344,961
  
Total liabilities
    
1,358,943
      
1,388,041
  
 
                
Equity:
                
Vishay stockholders' equity
                
  Common stock
    
13,520
      
13,114
  
  Class B convertible common stock
    
1,213
      
1,213
  
  Capital in excess of par value
    
2,054,087
      
1,999,901
  
  Retained earnings (accumulated deficit)
    
(257,698
)
    
(380,678
)
  Accumulated other comprehensive income (loss)
    
61,634
      
(10,222
)
  Total Vishay stockholders' equity
    
1,872,756
      
1,623,328
  
Noncontrolling interests
    
5,440
      
4,908
  
Total equity
    
1,878,196
      
1,628,236
  
Total liabilities and equity
  
$
3,237,139
    
$
3,016,277
  
 
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VISHAY INTERTECHNOLOGY, INC.
  
   
 
Consolidated Condensed Statements of Cash Flows
  
   
 
(In thousands)
  
   
 
 
  
Years ended
  
 
  
December 31,
2013
    
December 31,
2012
  
 
  
(unaudited)
    
 
Operating activities
  
   
 
Net earnings
  
$
123,769
    
$
123,531
  
Adjustments to reconcile net earnings to
                
    net cash provided by operating activities:
                
      Depreciation and amortization
    
170,132
      
168,555
  
      (Gain) loss on disposal of property and equipment
    
26
      
(12,894
)
      Accretion of interest on convertible debentures
    
3,647
      
3,028
  
      Inventory write-offs for obsolescence
    
19,108
      
20,865
  
      Other
    
(14,603
)
    
(10,444
)
      Changes in operating assets and liabilities,
                
          net of effects of businesses acquired
    
(10,009
)
    
(5,152
)
Net cash provided by operating activities
    
292,070
      
287,489
  
 
                
Investing activities
                
Purchase of property and equipment
    
(153,077
)
    
(150,291
)
Proceeds from sale of property and equipment
    
4,681
      
10,241
  
Purchase of businesses, net of cash acquired or refunded
    
(23,034
)
    
(85,493
)
Purchase of short-term investments
    
(664,867
)
    
(381,040
)
Maturity of short-term investments
    
465,668
      
339,287
  
Other investing activities
    
(176
)
    
(1,828
)
Net cash used in investing activities
    
(370,805
)
    
(269,124
)
 
                
Financing activities
                
Proceeds of long-term borrowings
    
-
      
150,000
  
Issuance costs
    
(4,558
)
    
(4,827
)
Common stock repurchase
    
-
      
(150,000
)
Principal payments on long-term debt and capital lease obligations
    
(28
)
    
(27
)
Net proceeds (payments) on revolving credit lines
    
25,000
      
(66,000
)
Net changes in short-term borrowings
    
(146
)
    
(115
)
Proceeds from stock options exercised
    
-
      
174
  
Excess tax benefit from RSUs vested
    
196
      
-
  
Distributions to noncontrolling interests
    
(257
)
    
(1,040
)
Other financing activities
    
(3,638
)
    
-
  
Net cash provided by (used in) financing activities
    
16,569
      
(71,835
)
Effect of exchange rate changes on cash and cash equivalents
    
4,919
      
1,977
  
 
                
Net decrease in cash and cash equivalents
    
(57,247
)
    
(51,493
)
 
                
Cash and cash equivalents at beginning of period
    
697,595
      
749,088
  
Cash and cash equivalents at end of period
  
$
640,348
    
$
697,595
  
 
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VISHAY INTERTECHNOLOGY, INC.
  
   
   
   
   
 
Reconciliation of Adjusted Earnings Per Share
  
   
   
   
   
 
(Unaudited - In thousands, except per share amounts)
  
   
   
   
   
 
 
  
Fiscal quarters ended
    
Years ended
  
 
December 31,
2013
September 28,
2013
December 31,
2012
    
December 31,
2013
    
December 31,
2012
  
 
  
 
      
 
      
 
      
 
      
 
   
GAAP net earnings attributable to Vishay stockholders
  
$
30,021
    
$
32,719
    
$
20,975
    
$
122,980
    
$
122,738
  
 
                                        
Reconciling items affecting operating margin:
                                        
Restructuring and severance costs
  
$
2,814
    
$
-
    
$
-
    
$
2,814
    
$
-
  
Executive compensation charge (credit)
    
-
      
-
      
-
      
(1,778
)
    
-
  
Gain on sale of property
    
-
      
-
      
-
      
-
      
(12,153
)
 
                                        
 
                                        
Reconciling items affecting tax expense (benefit):
                                        
Tax effects of items above and other one-time tax expense (benefit)
  
$
(988
)
  
$
(2,867
)
  
$
(4,036
)
  
$
(4,552
)
  
$
95
  
 
                                        
Adjusted net earnings
  
$
31,847
    
$
29,852
    
$
16,939
    
$
119,464
    
$
110,680
  
 
                                        
Adjusted weighted average diluted shares outstanding
    
151,156
      
151,890
      
150,193
      
151,417
      
155,844
  
 
                                        
Adjusted earnings per diluted share*
  
$
0.21
    
$
0.20
    
$
0.11
    
$
0.79
    
$
0.71
  
 
                                        
* Includes add-back of interest on exchangeable notes in periods where the notes are dilutive.
          
 
 
Source: Vishay Intertechnology, Inc.
Contact:
Vishay Intertechnology, Inc.
Peter G. Henrici
Senior Vice President, Corporate Communications
 +1-610-644-1300
 
 
 
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