0000103730-15-000044.txt : 20151103 0000103730-15-000044.hdr.sgml : 20151103 20151103081601 ACCESSION NUMBER: 0000103730-15-000044 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20151103 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Material Impairments ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20151103 DATE AS OF CHANGE: 20151103 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VISHAY INTERTECHNOLOGY INC CENTRAL INDEX KEY: 0000103730 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC COMPONENTS & ACCESSORIES [3670] IRS NUMBER: 381686453 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07416 FILM NUMBER: 151192227 BUSINESS ADDRESS: STREET 1: 63 LANCASTER AVENUE CITY: MALVERN STATE: PA ZIP: 19355 BUSINESS PHONE: 6106441300 MAIL ADDRESS: STREET 1: 63 LANCASTER AVENUE CITY: MALVERN STATE: PA ZIP: 19355 8-K 1 form8-k.htm VISHAY INTERTECHNOLOGY, INC. 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934


 
Date of Report (Date of earliest event reported)     November 3, 2015
   

Vishay Intertechnology, Inc.
 
(Exact name of registrant as specified in its charter)


Delaware
1-7416
38-1686453
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(I.R.S. Employer Identification Number)

   
63 Lancaster Avenue
Malvern, PA  19355-2143
19355-2143
(Address of Principal Executive Offices)
Zip Code
 
Registrant's telephone number, including area code    610-644-1300

 
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Item 2.02 – Results of Operations and Financial Condition

On November 3, 2015, Vishay Intertechnology, Inc. ("the Company") issued a press release announcing its financial results for the fiscal quarter and nine fiscal months ended October 3, 2015.  A copy of the press release is attached as Exhibit 99.1 to this report.

Item 2.06 – Material Impairments
 
In connection with its preparation of its quarterly financial statements, the Company determined that interim goodwill and indefinite-lived impairment tests were required as of the end of the third fiscal quarter of 2015.  Prior to completing the interim assessment of goodwill for impairment, the Company performed a recoverability test of certain depreciable and amortizable long-lived assets.
 
As a result of those assessments, the Company recorded impairment charges totaling $57.6 million to write-down the assets related to its Capella business to their fair value and a goodwill impairment charge of $5.4 million related to its Capacitors reporting unit.  Further information about these charges will be provided in the Company's Quarterly Report on Form 10-Q.
 
Item 7.01 – Regulation FD Disclosure

Computational Guidance on Earnings Per Share Estimates

The Company frequently receives questions from analysts and stockholders regarding its diluted earnings per share ("EPS") computation.  The information furnished in this Form 8-K provides additional information on the impact of key variables on the EPS computation, particularly as they relate to the fourth fiscal quarter of 2015.

Accounting principles require that EPS be computed based on the weighted average shares outstanding ("basic"), and also assuming the issuance of potentially issuable shares (such as those subject to stock options, convertible notes, etc.) if those potentially issuable shares would reduce EPS ("diluted").

The number of shares related to options and similar instruments included in diluted EPS is based on the "Treasury Stock Method" prescribed in Financial Accounting Standards Board ("FASB") ASC Topic 260, Earnings Per Share ("FASB ASC Topic 260").  This method assumes a theoretical repurchase of shares using the proceeds of the respective stock option exercise at a price equal to the issuer's average stock price during the related earnings period.   Accordingly, the number of shares includable in the calculation of diluted EPS in respect of stock options and similar instruments is dependent on this average stock price and will increase as the average stock price increases.  This method is also utilized for net share settlement debt.

The number of shares includable in the calculation of diluted EPS in respect of conventional convertible or exchangeable securities is based on the "If Converted" method prescribed in FASB ASC Topic 260.  This method assumes the conversion or exchange of these securities for shares of common stock.  In determining if convertible or exchangeable securities are dilutive, the interest savings (net of tax) subsequent to an assumed conversion are added back to net earnings.  The shares related to a convertible or exchangeable security are included in diluted EPS only if EPS as otherwise calculated is greater than the interest savings, net of tax, divided by the shares issuable upon exercise or conversion of the instrument ("incremental earnings per share").  Accordingly, the calculation of diluted EPS for these instruments is dependent on the level of net earnings.  Each series of convertible or exchangeable securities is considered individually and in sequence, starting with the series having the lowest incremental earnings per share, to determine if its effect is dilutive or anti-dilutive.

At the direction of its Board of Directors, Vishay intends to waive its rights to settle the principal amount of its 2.25% Convertible Senior Debentures due 2040, due 2041, and due 2042, upon any conversion or repurchase of the debentures, in shares of Vishay common stock.


Pursuant to the indentures governing the respective debentures, Vishay has the right to pay the conversion value or purchase price for the debentures in cash, Vishay common stock, or a combination of both.

If debentures are tendered for repurchase, Vishay will pay the repurchase price in cash, and if debentures are submitted for conversion, Vishay will value the shares issuable upon conversion and will pay in cash an amount equal to the principal amount of the converted debentures and will issue shares in respect of the conversion value in excess of the principal amount.

Vishay will consider the debentures to be "net share settlement debt." Accordingly, the debentures will be included in the diluted earnings per share computation using the "treasury stock method" (similar to options) rather than the "if converted method" otherwise required for convertible debt. Under the "treasury stock method," Vishay will calculate the number of shares issuable under the terms of the debentures based on the average market price of Vishay common stock during the period, and include that number in the total diluted shares figure for the period.

The following estimates of shares expected to be used in the calculation of diluted EPS consider the number of the Company's shares currently outstanding and the Company's stock options and convertible or exchangeable securities currently outstanding and their exercise and conversion features currently in effect.  The Company adjusts its calculation for the estimated effect of expected quarterly activity.  Changes in these parameters or estimates could have a material impact on the calculation of diluted EPS.

The following estimates of shares expected to be used in the calculation of diluted EPS should be read in conjunction with the information on earnings per share in the Company's filings on Form 10-Q and Form 10-K.  These estimates are unaudited and are not necessarily indicative of the shares used in the diluted EPS computation for any prior period.  The estimates below are not necessarily indicative of the shares to be used in the quarterly diluted EPS computation for any period subsequent to the fourth fiscal quarter of 2015.  The Company assumes no duty to revise these estimates as a result of changes in the parameters on which they are based or any changes in accounting principles.  Also, the presentation is not intended as a forecast of EPS values or share prices of the Company's common stock for any period.

For the fourth fiscal quarter of 2015:

·
The Company has approximately 148 million shares issued and outstanding, including shares of common stock and class B common stock.

·
The number of shares included in diluted EPS related to options and similar instruments does not vary significantly and is generally less than 1 million incremental shares.

·
The Company's exchangeable unsecured notes due 2102 are dilutive at quarterly earnings levels in excess of approximately $1 million.  The exchangeable unsecured notes are exchangeable for approximately 2.5 million shares.  Quarterly interest, net of tax, is negligible.

·
The Company's Convertible Senior Debentures due 2040 are convertible at a conversion price of $13.45 per $1,000 principal amount, equivalent to 74.3326 shares per $1,000 principal amount.  There is $275 million principal amount of the debentures outstanding. The number of shares of common stock that Vishay will include in its diluted earnings per share computation, assuming an average market price for Vishay common stock in excess of the conversion price, will be determined in accordance with the following formula:

S = [$275,000,000 / $1000] * [(P - $13.45) * 74.3326] / P

where

S = the number of shares to be included in diluted EPS, and
 P = the average market price of Vishay common stock for the quarter.

If the average market price is less than $13.45, no shares will be included in the diluted earnings per share computation.

·
The Company's Convertible Senior Debentures due 2041 are convertible at a conversion price of $18.44 per $1,000 principal amount, equivalent to 54.2441 shares per $1,000 principal amount.  There is $150 million principal amount of the debentures outstanding. The number of shares of common stock that Vishay will include in its diluted earnings per share computation, assuming an average market price for Vishay common stock in excess of the conversion price, will be determined in accordance with the following formula:

S = [$150,000,000 / $1000] * [(P - $18.44) * 54.2441] / P

where

S = the number of shares to be included in diluted EPS, and
 P = the average market price of Vishay common stock for the quarter.

If the average market price is less than $18.44, no shares will be included in the diluted earnings per share computation.

·
The Company's Convertible Senior Debentures due 2042 are convertible at a conversion price of $11.44 per $1,000 principal amount, equivalent to 87.3974 shares per $1,000 principal amount.  There is $150 million principal amount of the debentures outstanding. The number of shares of common stock that Vishay will include in its diluted earnings per share computation, assuming an average market price for Vishay common stock in excess of the conversion price, will be determined in accordance with the following formula:

S = [$150,000,000 / $1000] * [(P - $11.44) * 87.3974] / P

where

S = the number of shares to be included in diluted EPS, and
 P = the average market price of Vishay common stock for the quarter.

If the average market price is less than $11.44, no shares will be included in the diluted earnings per share computation.

Accordingly, the following table summarizes the approximate number of shares to be included in the denominator of the diluted EPS calculation assuming net earnings attributable to Vishay stockholders greater than $1 million for various average stock prices (number of shares in millions):

Average Stock Price
    
Projected Diluted Shares
  
$
6.00
      
150
  
$
7.00
      
150
  
$
8.00
      
150
  
$
9.00
      
150
  
$
10.00
      
150
  
$
11.00
      
150
  
$
12.00
      
151
  
$
13.00
      
152
  
$
14.00
      
154
  
$
15.00
      
156
  
$
16.00
      
158
  
$
17.00
      
159
  
$
18.00
      
161
  
$
19.00
      
162
  
$
20.00
      
164
  
$
21.00
      
165
  


Item 9.01 – Financial Statements and Exhibits
 
(d) Exhibits

Exhibit No.
  
Description
  
       
99.1
  
Press release dated November 3, 2015

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Date: November 3, 2015

 
VISHAY INTERTECHNOLOGY, INC.

 
By:
/s/ Lori Lipcaman
  

 
Name:
Lori Lipcaman
    
 
Title:
Executive Vice President and
   
Chief Financial Officer
  

EX-99.1 2 exhibit99-1.htm EXHIBIT 99.1
Exhibit 99.1
 
VISHAY REPORTS RESULTS FOR THIRD QUARTER 2015

·
Revenues for Q3 2015 $560.7 million
·
Operating margin Q3 2015 of (4.3)%, or adjusted operating margin of 7.3%
·
EPS Q3 2015 of $(0.19), or adjusted EPS of $0.17
·
Impairment of goodwill and long-lived assets of $63.0 million
·
Revenues lost due to Tianjin facility temporary shut-down approximately $20 million
·
Book-to-bill October above 1
·
Guidance for Q4 2015 for revenues of $540 - $580 million and gross margins of 21% to 23%

MALVERN, PENNSYLVANIA – November 3, 2015 – 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 and nine fiscal months ended October 3, 2015.

Revenues for the fiscal quarter ended October 3, 2015 were $560.7 million, compared to $638.2 million for the fiscal quarter ended September 27, 2014.  The net loss attributable to Vishay stockholders for the fiscal quarter ended October 3, 2015 was $(27.7) million, or $(0.19) per share, compared to net earnings attributable to Vishay stockholders of $27.0 million, or $0.17 per diluted share for the fiscal quarter ended September 27, 2014.

Net loss attributable to Vishay stockholders for the fiscal quarter ended October 3, 2015 includes restructuring and severance costs of $2.3 million, impairment of goodwill and long-lived assets charges of $63.0 million, and a loss related to the Tianjin explosion of $5.4 million.  Net earnings attributable to Vishay stockholders for the fiscal quarter ended September 27, 2014 include restructuring and severance costs of $3.5 million and U.S. pension settlement charges of $15.6 million.  These items are summarized on the attached reconciliation schedule.  Adjusted earnings per diluted share, which exclude these items, were $0.17 and $0.26 for the fiscal quarters ended October 3, 2015 and September 27, 2014, respectively.

Commenting on the results for the third quarter 2015, Dr. Gerald Paul, President and Chief Executive Officer, stated, "As expected, the general economic conditions were not favorable in general. Additionally, the temporary shutdown of our Tianjin facility, caused by the shockwave of the explosion in the port of Tianjin, resulted in lost revenues of approximately $20 million in the quarter. Despite the current headwinds, we expect a free cash flow generation of substantially over $100 million for the year 2015."

Dr. Gerald Paul continued, "The Capella business, acquired in 2014, has not performed as expected in its traditional end market of smart phones. We recorded impairment charges of $57.6 million to write down the related assets to their fair value. We still expect that the addition of Capella will, in the mid and long term, add considerable value to our entire optoelectronic components business through the creation of an in-house design capability and so to strengthen our position and potential for growing our optoelectronic business."

Dr. Gerald Paul continued, "Our restructuring programs—the announced global fixed cost reduction and the rationalization in MOSFETs—are on plan. They will noticeably improve Vishay's results in the future, independently of the economic environment. We believe in a cyclical rebound of the economy in the course of next year."

Commenting on the outlook for the fourth quarter 2015 Dr. Paul stated, "We expect a continuation of the inventory reduction at distribution during the quarter and guide for revenues of $540 to $580 million and for gross margins of 21% to 23%, based on current exchange rates."

A conference call to discuss third quarter financial results is scheduled for Tuesday, November 3, 2015 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 57522492.

There will be a replay of the conference call from 12:00 p.m. ET on Tuesday, November 3, 2015 through 11:30 p.m. ET on Tuesday, November 10, 2015. 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 57522492.

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 https://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; 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, 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 term "EBITDA" is not defined in GAAP, the measure is 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 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, cash generation, internal growth and results, Capella's future performance and the growth of the Company's optoelectronics business, cost reduction programs and their financial impact, 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; 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.

VISHAY INTERTECHNOLOGY, INC.
            
Summary of Operations
            
(Unaudited - In thousands, except per share amounts)
            
             
   
Fiscal quarters ended     
   
October 3, 2015
    
July 4, 2015
    
September 27, 2014
  
             
Net revenues
  
$
560,654
    
$
590,470
    
$
638,211
  
Costs of products sold
    
430,510
      
448,988
      
479,819
  
Gross profit
    
130,144
      
141,482
      
158,392
  
  Gross margin
    
23.2
%
    
24.0
%
    
24.8
%
                         
Selling, general, and administrative expenses
    
88,995
      
91,652
      
93,837
  
Restructuring and severance costs
    
2,324
      
5,660
      
3,508
  
Impairment of goodwill and long-lived assets
    
62,980
      
-
      
-
  
U.S. pension settlement charges
    
-
      
-
      
15,588
  
Operating income (loss)
    
(24,155
)
    
44,170
      
45,459
  
  Operating margin
    
-4.3
%
    
7.5
%
    
7.1
%
                         
Other income (expense):
                        
  Interest expense
    
(6,677
)
    
(6,736
)
    
(6,167
)
  Other
    
3,240
      
1,160
      
(474
)
  Loss related to Tianjin explosion
    
(5,350
)
    
-
      
-
  
  Total other income (expense) - net
    
(8,787
)
    
(5,576
)
    
(6,641
)
                         
Income (loss) before taxes
    
(32,942
)
    
38,594
      
38,818
  
                         
Income taxes
    
(5,392
)
    
12,076
      
11,841
  
                         
Net earnings (loss)
    
(27,550
)
    
26,518
      
26,977
  
                         
Less: net earnings attributable to noncontrolling interests
    
116
      
250
      
6
  
                         
Net earnings (loss) attributable to Vishay stockholders
  
$
(27,666
)
  
$
26,268
    
$
26,971
  
                         
Basic earnings (loss) per share attributable to Vishay stockholders
  
$
(0.19
)
  
$
0.18
    
$
0.18
  
                         
Diluted earnings (loss) per share attributable to Vishay stockholders
  
$
(0.19
)
  
$
0.17
    
$
0.17
  
                         
Weighted average shares outstanding - basic
    
147,701
      
147,700
      
147,569
  
                         
Weighted average shares outstanding - diluted
    
147,701
      
151,700
      
155,546
  
                         
Cash dividends per share
  
$
0.06
    
$
0.06
    
$
0.06
  
 
VISHAY INTERTECHNOLOGY, INC.
        
Summary of Operations
        
(Unaudited - In thousands, except per share amounts)
        
         
   
Nine fiscal months ended 
   
October 3, 2015
    
September 27, 2014
  
         
Net revenues
  
$
1,744,560
      
1,882,518
  
Costs of products sold
    
1,327,896
      
1,414,750
  
Gross profit
    
416,664
      
467,768
  
  Gross margin
    
23.9
%
    
24.8
%
                 
Selling, general, and administrative expenses
    
276,717
      
287,300
  
Restructuring and severance costs
    
9,394
      
18,926
  
Impairment of goodwill and long-lived assets
    
62,980
      
-
  
U.S. pension settlement charges
    
-
      
15,588
  
Operating income
    
67,573
      
145,954
  
  Operating margin
    
3.9
%
    
7.8
%
                 
Other income (expense):
                
  Interest expense
    
(19,774
)
    
(17,968
)
  Other
    
7,860
      
1,046
  
  Loss related to Tianjin explosion
    
(5,350
)
    
-
  
  Total other income (expense) - net
    
(17,264
)
    
(16,922
)
                 
Income before taxes
    
50,309
      
129,032
  
                 
Income taxes
    
20,416
      
40,259
  
                 
Net earnings
    
29,893
      
88,773
  
                 
Less: net earnings attributable to noncontrolling interests
    
592
      
350
  
                 
Net earnings attributable to Vishay stockholders
  
$
29,301
    
$
88,423
  
                 
Basic earnings per share attributable to Vishay stockholders
  
$
0.20
    
$
0.60
  
                 
Diluted earnings per share attributable to Vishay stockholders
  
$
0.19
    
$
0.57
  
                 
Weighted average shares outstanding - basic
    
147,700
      
147,565
  
                 
Weighted average shares outstanding - diluted
    
151,607
      
154,142
  
                 
Cash dividends per share
  
$
0.18
    
$
0.18
  
 
VISHAY INTERTECHNOLOGY, INC.
        
Consolidated Condensed Balance Sheets
        
(In thousands)
        
         
   
October 3, 2015
    
December 31, 2014
  
   
(unaudited)
      
Assets
        
Current assets:
        
  Cash and cash equivalents
  
$
390,305
    
$
592,172
  
  Short-term investments
    
688,987
      
514,776
  
  Accounts receivable, net
    
282,228
      
271,554
  
  Inventories:
                
    Finished goods
    
113,881
      
113,361
  
    Work in process
    
207,940
      
185,769
  
    Raw materials
    
124,970
      
125,464
  
  Total inventories
    
446,791
      
424,594
  
                 
  Deferred income taxes
    
29,160
      
17,815
  
  Prepaid expenses and other current assets
    
96,279
      
105,539
  
Total current assets
    
1,933,750
      
1,926,450
  
                 
Property and equipment, at cost:
                
  Land
    
90,079
      
91,844
  
  Buildings and improvements
    
559,757
      
560,926
  
  Machinery and equipment
    
2,381,285
      
2,368,046
  
  Construction in progress
    
71,415
      
82,684
  
  Allowance for depreciation
    
(2,253,961
)
    
(2,205,405
)
     
848,575
      
898,095
  
                 
Goodwill
    
138,403
      
144,359
  
                 
Other intangible assets, net
    
107,778
      
186,613
  
                 
Other assets
    
143,045
      
143,256
  
     Total assets
  
$
3,171,551
    
$
3,298,773
  
 
VISHAY INTERTECHNOLOGY, INC.
       
Consolidated Condensed Balance Sheets (continued)
        
(In thousands)
        
         
   
October 3, 2015
    
December 31, 2014
  
   
(unaudited)
      
Liabilities and stockholders' equity
        
Current liabilities:
        
  Notes payable to banks
  
$
11
    
$
18
  
  Trade accounts payable
    
148,889
      
174,451
  
  Payroll and related expenses
    
120,680
      
120,023
  
  Other accrued expenses
    
155,829
      
137,576
  
  Income taxes
    
25,646
      
24,671
  
Total current liabilities
    
451,055
      
456,739
  
                 
Long-term debt less current portion
    
431,766
      
454,922
  
Deferred income taxes
    
161,546
      
178,900
  
Other liabilities
    
65,510
      
76,811
  
Accrued pension and other postretirement costs
    
277,943
      
300,524
  
Total liabilities
    
1,387,820
      
1,467,896
  
                 
Equity:
                
Vishay stockholders' equity
                
  Common stock
    
13,544
      
13,532
  
  Class B convertible common stock
    
1,213
      
1,213
  
  Capital in excess of par value
    
2,057,552
      
2,055,246
  
  Retained earnings (accumulated deficit)
    
(172,770
)
    
(175,485
)
  Accumulated other comprehensive income (loss)
    
(121,186
)
    
(69,140
)
  Total Vishay stockholders' equity
    
1,778,353
      
1,825,366
  
Noncontrolling interests
    
5,378
      
5,511
  
Total equity
    
1,783,731
      
1,830,877
  
Total liabilities and equity
  
$
3,171,551
    
$
3,298,773
  
 
VISHAY INTERTECHNOLOGY, INC.
        
Consolidated Condensed Statements of Cash Flows
        
(Unaudited - In thousands)
        
   
Nine fiscal months ended 
   
October 3, 2015
    
September 27, 2014
  
         
Operating activities
        
Net earnings
  
$
29,893
    
$
88,773
  
Adjustments to reconcile net earnings to
                
    net cash provided by operating activities:
                
      Depreciation and amortization
    
134,281
      
132,344
  
      (Gain) loss on disposal of property and equipment
    
(116
)
    
(65
)
      Accretion of interest on convertible debentures
    
3,167
      
2,930
  
      Inventory write-offs for obsolescence
    
15,348
      
15,101
  
      Impairment of goodwill and long-lived assets
    
62,980
      
-
  
      U.S. pension settlement charges
    
-
      
15,588
  
      Deferred income taxes
    
(32,523
)
    
6,869
  
      Other
    
(1,939
)
    
(2,654
)
      Changes in operating assets and liabilities,
                
          net of effects of businesses acquired
    
(57,522
)
    
(61,875
)
Net cash provided by operating activities
    
153,569
      
197,011
  
                 
Investing activities
                
Purchase of property and equipment
    
(86,767
)
    
(90,507
)
Proceeds from sale of property and equipment
    
1,989
      
2,345
  
Purchase of businesses, net of cash acquired
    
-
      
(198,186
)
Purchase of short-term investments
    
(362,595
)
    
(335,341
)
Maturity of short-term investments
    
161,611
      
330,734
  
Sale of other investments
    
400
      
-
  
Other investing activities
    
(3,464
)
    
1,734
  
Net cash provided by (used in) investing activities
    
(288,826
)
    
(289,221
)
                 
Financing activities
                
Principal payments on long-term debt and capital lease obligations
    
-
      
(11
)
Net proceeds (payments) on revolving credit lines
    
(27,000
)
    
73,000
  
Net changes in short-term borrowings
    
(7
)
    
14
  
Dividends paid to common stockholders
    
(24,378
)
    
(24,358
)
Dividends paid to Class B common stockholders
    
(2,184
)
    
(2,183
)
Excess tax benefit from RSUs vested
    
21
      
-
  
Proceeds from stock options exercised
    
-
      
50
  
Distributions to noncontrolling interests
    
(725
)
    
(547
)
Other financing activities
    
-
      
(1,323
)
Net cash provided by (used in) financing activities
    
(54,273
)
    
44,642
  
Effect of exchange rate changes on cash and cash equivalents
    
(12,337
)
    
(17,478
)
                 
Net increase (decrease) in cash and cash equivalents
    
(201,867
)
    
(65,046
)
                 
Cash and cash equivalents at beginning of period
    
592,172
      
640,348
  
Cash and cash equivalents at end of period
  
$
390,305
      
575,302
  
 
VISHAY INTERTECHNOLOGY, INC.
                    
Reconciliation of Adjusted Earnings Per Share
                    
(Unaudited - In thousands, except per share amounts)
                    
   
Fiscal quarters ended 
  
Nine fiscal months ended 
   
October 3, 2015
    
July 4, 2015
    
September 27, 2014
    
October 3, 2015
    
September 27, 2014
  
                     
GAAP net earnings (loss) attributable to Vishay stockholders
  
$
(27,666
)
  
$
26,268
    
$
26,971
    
$
29,301
    
$
88,423
  
                                         
Reconciling items affecting operating margin:
                                        
Restructuring and severance costs
  
$
2,324
    
$
5,660
    
$
3,508
    
$
9,394
    
$
18,926
  
Impairment of goodwill and long-lived assets
    
62,980
      
-
      
-
      
62,980
      
-
  
U.S. pension settlement charges
    
-
      
-
      
15,588
      
-
      
15,588
  
                                         
Reconciling items other income (expense):
                                        
Loss related to Tianjin explosion
  
$
5,350
    
$
-
    
$
-
    
$
5,350
    
$
-
  
                                         
Reconciling items affecting tax expense (benefit):
                                        
Tax effects of items above and other one-time tax expense (benefit)
  
$
(16,831
)
  
$
(1,988
)
  
$
(6,011
)
    
(19,327
)
  
$
(10,855
)
                                         
Adjusted net earnings
  
$
26,157
    
$
29,940
    
$
40,056
    
$
87,698
    
$
112,082
  
                                         
Adjusted weighted average diluted shares outstanding
    
150,455
      
151,700
      
155,546
      
151,607
      
154,142
  
                                         
Adjusted earnings per diluted share*
  
$
0.17
    
$
0.20
    
$
0.26
    
$
0.58
    
$
0.73
  
                                         
* Includes add-back of interest on exchangeable notes in periods where the notes are dilutive.
                          
 
VISHAY INTERTECHNOLOGY, INC.
                    
Reconciliation of EBITDA and Adjusted EBITDA
                    
(Unaudited - In thousands)
                    
   
Fiscal quarters ended 
  
Nine fiscal months ended 
   
October 3, 2015
    
July 4, 2015
    
September 27, 2014
    
October 3, 2015
    
September 27, 2014
  
                     
GAAP net earnings (loss) attributable to Vishay stockholders
  
$
(27,666
)
  
$
26,268
    
$
26,971
    
$
29,301
    
$
88,423
  
Net earnings attributable to noncontrolling interests
    
116
      
250
      
6
      
592
      
350
  
Net earnings (loss)
  
$
(27,550
)
  
$
26,518
    
$
26,977
    
$
29,893
    
$
88,773
  
                                         
Interest expense
  
$
6,677
    
$
6,736
    
$
6,167
    
$
19,774
    
$
17,968
  
Interest income
    
(1,115
)
    
(1,028
)
    
(1,172
)
    
(3,340
)
    
(3,656
)
Income taxes
    
(5,392
)
    
12,076
      
11,841
      
20,416
      
40,259
  
Depreciation and amortization
    
44,096
      
44,775
      
45,413
      
134,281
      
132,344
  
EBITDA
  
$
16,716
    
$
89,077
    
$
89,226
    
$
201,024
    
$
275,688
  
                                         
Reconciling items
                                        
Restructuring and severance costs
  
$
2,324
    
$
5,660
    
$
3,508
      
9,394
      
18,926
  
Impairment of goodwill and long-lived assets
    
62,980
      
-
      
-
      
62,980
      
-
  
U.S. pension settlement charges
    
-
      
-
      
15,588
      
-
      
15,588
  
Loss related to Tianjin explosion
    
5,350
      
-
      
-
      
5,350
      
-
  
                                         
Adjusted EBITDA
  
$
87,370
    
$
94,737
    
$
108,322
    
$
278,748
    
$
310,202
  
                                         
Adjusted EBITDA margin**
    
15.6
%
    
16.0
%
    
17.0
%
    
16.0
%
    
16.5
%
                                         
** Adjusted EBITDA as a percentage of net revenues
                                        
 
 
Source: Vishay Intertechnology, Inc.
Contact:
Vishay Intertechnology, Inc.
Peter G. Henrici
Senior Vice President, Corporate Communications
 +1-610-644-1300