EX-99.1 2 exhibit99-1.htm EXHIBIT 99.1
Exhibit 99.1
 
VISHAY REPORTS RESULTS FOR FIRST QUARTER 2016

·
Revenues for Q1 2016 of $571 million
·
Operating Margin Q1 of 7.1%
·
Adjusted Operating Margin Q1 of 8.2%
·
EPS Q1 of $0.19
·
Adjusted EPS Q1 of $0.19
·
Cash from operations for trailing twelve months Q1 of $252 million and capital expenditures of $147 million
·
Stock repurchase program of $100 million over one year
·
Guidance for Q2 2016 for revenues of $565 - $605 million and gross margins of 23% - 25%

MALVERN, PENNSYLVANIA – May 3, 2016 – 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 April 2, 2016.

Revenues for the fiscal quarter ended April 2, 2016 were $570.6 million, compared to $593.4 million for the fiscal quarter ended April 4, 2015. The net earnings attributable to Vishay stockholders for the fiscal quarter ended April 2, 2016 were $28.0 million, or $0.19 per diluted share, compared to $30.7 million, or $0.20 per diluted share for the fiscal quarter ended April 4, 2015.

Net earnings attributable to Vishay stockholders for the fiscal quarter ended April 2, 2016 include a gain on early extinguishment of debt of $3.6 million, restructuring and severance costs of $6.5 million, and a remeasurement of the deferred tax liability recorded for the cash repatriation program announced in the fourth fiscal quarter of 2015 of $0.8 million. Net earnings attributable to Vishay stockholders for the fiscal quarter ended April 4, 2015 include restructuring and severance costs of $1.4 million. These items are summarized on the attached reconciliation schedule. Adjusted earnings per diluted share, which exclude these items, were $0.19 and $0.21 for the fiscal quarters ended April 2, 2016 and April 4, 2015, respectively.

Commenting on the results for the first quarter 2016, Dr. Gerald Paul, President and Chief Executive Officer, stated, "A broad recovery of orders from all regions resulted in higher revenues than expected. The automotive market and several industrial product sectors continue to do well. The point of sales of distribution improved during the first quarter and inventory turns for Vishay products at distributors recovered. The production move of MOSFETs has been finalized as scheduled and we will enjoy major cost benefits going forward."

Dr. Paul continued, "We continue to focus on total stockholder return. After having announced the repatriation of $300 million of foreign earnings over the next several years, we are now initiating a $100 million stock repurchase program over one year."

 
Commenting on the outlook Dr. Paul stated, "For the second quarter, we guide for revenues of $565 to $605 million and gross margins of 23% to 25% at constant exchange rates."

A conference call to discuss Vishay's first quarter financial results is scheduled for Tuesday, May 3, 2016 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 87659879.

There will be a replay of the conference call from 12:00 p.m. ET on Tuesday, May 3, 2016 through 11:59 p.m. ET on Tuesday, May 10, 2016. 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 87659879.

A live audio webcast of the conference call and a PDF copy of the press release and the quarterly presentation 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 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, repatriation of foreign earnings, 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; 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 applicable domestic and foreign tax regulations and uncertainty regarding the same; 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
   
April 2, 2016
    
December 31, 2015
    
April 4, 2015
  
                   
Net revenues
  
$
570,606
    
$
555,928
    
$
593,436
  
Costs of products sold
    
433,297
      
430,372
      
448,398
  
Gross profit
    
137,309
      
125,556
      
145,038
  
  Gross margin
    
24.1
%
    
22.6
%
    
24.4
%
                         
Selling, general, and administrative expenses
    
90,286
      
85,509
      
96,070
  
Restructuring and severance costs
    
6,475
      
9,821
      
1,410
  
Operating income (loss)
    
40,548
      
30,226
      
47,558
  
  Operating margin
    
7.1
%
    
5.4
%
    
8.0
%
                         
Other income (expense):
                        
  Interest expense
    
(6,466
)
    
(5,911
)
    
(6,361
)
  Other
    
779
      
116
      
3,460
  
  Gain on early extinguishment of debt
    
3,611
      
-
      
-
  
  Total other income (expense) - net
    
(2,076
)
    
(5,795
)
    
(2,901
)
                         
Income (loss) before taxes
    
38,472
      
24,431
      
44,657
  
                         
Income taxes
    
10,320
      
162,057
      
13,732
  
                         
Net earnings (loss)
    
28,152
      
(137,626
)
    
30,925
  
                         
Less: net earnings (loss) attributable to noncontrolling interests
    
138
      
189
      
226
  
                         
Net earnings (loss) attributable to Vishay stockholders
  
$
28,014
    
$
(137,815
)
  
$
30,699
  
                         
Basic earnings (loss) per share attributable to Vishay stockholders
  
$
0.19
    
$
(0.93
)
  
$
0.21
  
                         
Diluted earnings (loss) per share attributable to Vishay stockholders
  
$
0.19
    
$
(0.93
)
  
$
0.20
  
                         
Weighted average shares outstanding - basic
    
147,832
      
147,702
      
147,698
  
                         
Weighted average shares outstanding - diluted
    
150,627
      
147,702
      
152,666
  
                         
Cash dividends per share
  
$
0.0625
    
$
0.0600
    
$
0.0600
  
                         
 
 
VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Balance Sheets
            
(In thousands)
            
             
   
April 2, 2016
    
December 31, 2015
  
   
(unaudited)
        
Assets
            
Current assets:
            
  Cash and cash equivalents
  
$
531,296
    
$
475,507
  
  Short-term investments
    
544,328
      
619,040
  
  Accounts receivable, net
    
286,996
      
272,559
  
  Inventories:
                
    Finished goods
    
118,276
      
108,869
  
    Work in process
    
201,133
      
201,045
  
    Raw materials
    
106,836
      
110,657
  
  Total inventories
    
426,245
      
420,571
  
                 
  Prepaid expenses and other current assets
    
99,753
      
99,815
  
Total current assets
    
1,888,618
      
1,887,492
  
                 
Property and equipment, at cost:
                
  Land
    
91,351
      
89,593
  
  Buildings and improvements
    
575,447
      
562,171
  
  Machinery and equipment
    
2,424,312
      
2,380,299
  
  Construction in progress
    
68,514
      
79,910
  
  Allowance for depreciation
    
(2,299,172
)
    
(2,246,677
)
     
860,452
      
865,296
  
                 
Goodwill
    
142,183
      
138,244
  
                 
Other intangible assets, net
    
100,541
      
103,258
  
                 
Other assets
    
154,830
      
158,696
  
     Total assets
  
$
3,146,624
    
$
3,152,986
  
                 
 
 
 
VISHAY INTERTECHNOLOGY, INC.
           
Consolidated Condensed Balance Sheets (continued)
            
(In thousands)
            
             
   
April 2, 2016
    
December 31, 2015
  
   
(unaudited)
        
Liabilities and stockholders' equity
            
Current liabilities:
            
  Notes payable to banks
  
$
3
    
$
4
  
  Trade accounts payable
    
143,375
      
157,210
  
  Payroll and related expenses
    
112,114
      
113,976
  
  Other accrued expenses
    
160,902
      
164,336
  
  Income taxes
    
21,633
      
22,198
  
Total current liabilities
    
438,027
      
457,724
  
                 
Long-term debt less current portion
    
400,124
      
436,738
  
Deferred income taxes
    
306,333
      
305,413
  
Other liabilities
    
63,964
      
60,450
  
Accrued pension and other postretirement costs
    
255,447
      
264,618
  
Total liabilities
    
1,463,895
      
1,524,943
  
                 
Equity:
                
Vishay stockholders' equity
                
  Common stock
    
13,556
      
13,546
  
  Class B convertible common stock
    
1,213
      
1,213
  
  Capital in excess of par value
    
2,059,228
      
2,058,492
  
  Retained earnings (accumulated deficit)
    
(300,673
)
    
(319,448
)
  Accumulated other comprehensive income (loss)
    
(96,300
)
    
(131,327
)
  Total Vishay stockholders' equity
    
1,677,024
      
1,622,476
  
Noncontrolling interests
    
5,705
      
5,567
  
Total equity
    
1,682,729
      
1,628,043
  
Total liabilities and equity
  
$
3,146,624
    
$
3,152,986
  
                 
 
 
VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Statements of Cash Flows
            
(Unaudited - In thousands)
            
   
Fiscal quarters ended
  
   
April 2, 2016
    
April 4, 2015
  
             
Operating activities
            
Net earnings
  
$
28,152
    
$
30,925
  
Adjustments to reconcile net earnings (loss) to
                
    net cash provided by operating activities:
                
      Depreciation and amortization
    
40,017
      
45,410
  
      (Gain) loss on disposal of property and equipment
    
(22
)
    
(83
)
      Accretion of interest on convertible debentures
    
1,120
      
1,036
  
      Inventory write-offs for obsolescence
    
5,816
      
4,854
  
      Gain on early extinguishment of debt
    
(3,611
)
    
-
  
      Other
    
(13,950
)
    
(7,080
)
      Changes in operating assets and liabilities,
                
          net of effects of businesses acquired
    
(37,264
)
    
(61,564
)
Net cash provided by operating activities
    
20,258
      
13,498
  
                 
Investing activities
                
Purchase of property and equipment
    
(19,756
)
    
(19,782
)
Proceeds from sale of property and equipment
    
64
      
719
  
Purchase of short-term investments
    
(24,588
)
    
(78,905
)
Maturity of short-term investments
    
117,676
      
17,414
  
Sale of short-term investments
    
-
      
503
  
Sale of other investments
    
-
      
400
  
Other investing activities
    
2,975
      
977
  
Net cash provided by (used in) investing activities
    
76,371
      
(78,674
)
                 
Financing activities
                
Principal payments on long-term debt and capital lease obligations
    
(22,595
)
    
-
  
Net proceeds (payments) on revolving credit lines
    
(12,000
)
    
15,000
  
Net changes in short-term borrowings
    
(719
)
    
(6
)
Dividends paid to common stockholders
    
(8,473
)
    
(8,126
)
Dividends paid to Class B common stockholders
    
(758
)
    
(728
)
Excess tax benefit from RSUs vested
    
-
      
21
  
Net cash provided by (used in) financing activities
    
(44,545
)
    
6,161
  
Effect of exchange rate changes on cash and cash equivalents
    
3,705
      
(16,155
)
                 
Net increase (decrease) in cash and cash equivalents
    
55,789
      
(75,170
)
                 
Cash and cash equivalents at beginning of period
    
475,507
      
592,172
  
Cash and cash equivalents at end of period
  
$
531,296
      
517,002
  
 
 
 
VISHAY INTERTECHNOLOGY, INC.
                  
Reconciliation of Adjusted Earnings Per Share
                  
(Unaudited - In thousands, except per share amounts)
                  
   
Fiscal quarters ended
  
   
April 2, 2016
    
December 31, 2015
    
April 4, 2015
  
                   
GAAP net earnings (loss) attributable to Vishay stockholders
  
$
28,014
    
$
(137,815
)
  
$
30,699
  
                         
Reconciling items affecting operating margin:
                        
Restructuring and severance costs
  
$
6,475
    
$
9,821
    
$
1,410
  
                         
Reconciling items other income (expense):
                        
Gain on early extinguishment of debt
  
$
(3,611
)
  
$
-
    
$
-
  
                         
Reconciling items affecting tax expense (benefit):
                        
Tax effects of items above and other one-time tax expense (benefit)
  
$
(1,656
)
  
$
149,296
    
$
(508
)
                         
Adjusted net earnings
  
$
29,222
    
$
21,302
    
$
31,601
  
                         
Adjusted weighted average diluted shares outstanding
    
150,627
      
150,497
      
152,666
  
                         
Adjusted earnings per diluted share*
  
$
0.19
    
$
0.14
    
$
0.21
  
                         
* 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
  
   
April 2, 2016
    
December 31, 2015
    
April 4, 2015
  
                   
GAAP net earnings (loss) attributable to Vishay stockholders
  
$
28,014
    
$
(137,815
)
  
$
30,699
  
Net earnings attributable to noncontrolling interests
    
138
      
189
      
226
  
Net earnings (loss)
  
$
28,152
    
$
(137,626
)
  
$
30,925
  
                         
Interest expense
  
$
6,466
    
$
5,911
    
$
6,361
  
Interest income
    
(1,133
)
    
(1,057
)
    
(1,197
)
Income taxes
    
10,320
      
162,057
      
13,732
  
Depreciation and amortization
    
40,017
      
41,888
      
45,410
  
EBITDA
  
$
83,822
    
$
71,173
    
$
95,231
  
                         
Reconciling items
                        
Restructuring and severance costs
  
$
6,475
    
$
9,821
    
$
1,410
  
Gain on early extinguishment of debt
    
(3,611
)
    
-
      
-
  
                         
Adjusted EBITDA
  
$
86,686
    
$
80,994
    
$
96,641
  
                         
Adjusted EBITDA margin**
    
15.2
%
    
14.6
%
    
16.3
%
                         
** Adjusted EBITDA as a percentage of net revenues
                        
                         
 
Source: Vishay Intertechnology, Inc.
Contact:
Vishay Intertechnology, Inc.
Peter Henrici
Senior Vice President, Corporate Communications
+1-610-644-1300