0000103730-17-000042.txt : 20171026 0000103730-17-000042.hdr.sgml : 20171026 20171026075532 ACCESSION NUMBER: 0000103730-17-000042 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20171026 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20171026 DATE AS OF CHANGE: 20171026 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: 171154790 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)     October 26, 2017
   

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company
☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 
Item 2.02 – Results of Operations and Financial Condition

On October 26, 2017, Vishay Intertechnology, Inc. ("the Company") issued a press release announcing its financial results for the fiscal quarter and nine fiscal months ended September 30, 2017.  A copy of the press release is attached as Exhibit 99.1 to this report.

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 2017.

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 equity awards and convertible debt) if those potentially issuable shares would reduce EPS ("diluted").

The number of shares related to equity awards 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 unrecognized compensation expense and any other proceeds 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 equity awards 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 Company currently has no potentially dilutive instruments included in the diluted EPS calculation using the "if converted method."

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 convertible 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.  The estimates assume no share repurchases during the fourth fiscal quarter of 2017. 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 2017.  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 2017:

·
The Company has approximately 144 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 restricted stock units does not vary significantly and is generally less than 1 million incremental shares.
 
·
The Company's Convertible Senior Debentures due 2040 are convertible at a conversion price of $12.99 per $1,000 principal amount, equivalent to 76.9650 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 - $12.99) * 76.9650] / 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 $12.99, 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 $17.80 per $1,000 principal amount, equivalent to 56.1650 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 - $17.80) * 56.1650] / 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 $17.80, 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 $11.05 per $1,000 principal amount, equivalent to 90.4924 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 - $11.05) * 90.4924] / 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 $11.05, 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 for various average stock prices (number of shares in millions):
 
Average Stock Price
    
Projected Diluted Shares
  
$
<11.00
      
145
  
$
11.00
      
145
  
$
12.00
      
146
  
$
13.00
      
147
  
$
14.00
      
149
  
$
15.00
      
151
  
$
16.00
      
153
  
$
17.00
      
155
  
$
18.00
      
156
  
$
19.00
      
158
  
$
20.00
      
159
  
$
21.00
      
161
  
$
22.00
      
162
  
$
23.00
      
163
  
$
24.00
      
164
  
$
25.00
      
165
  
 
Item 9.01 – Financial Statements and Exhibits
 
(d) Exhibits

Exhibit No.
  
Description
      
   

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: October 26, 2017

 
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 2017

 
·
Revenues for Q3 2017 of $678 million
·
Gross Margin Q3 of 27.9%
·
Adjusted Operating Margin Q3 of 14.1%
·
EPS Q3 of $0.41
·
Adjusted EPS Q3 of $0.42
·
Cash from operations for trailing twelve months Q3 of $329 million and capital expenditures of $138 million
·
Exchange rate impacts on revenues were plus $14 million quarter over quarter
·
Stock repurchase Q3 2017 of 2.1 million shares for $37.6 million
·
Guidance for Q4 2017 for revenues of $645 - $685 million and gross margins of 26% - 28% at Q3 exchange rates


MALVERN, PENNSYLVANIA – October 26, 2017 – Revenues for the fiscal quarter ended September 30, 2017 were $677.9 million, compared to $644.9 million for the fiscal quarter ended July 1, 2017 and $592.0 million for the fiscal quarter ended October 1, 2016.  Net earnings attributable to Vishay stockholders for the fiscal quarter ended September 30, 2017 were $64.4 million, or $0.41 per diluted share, compared to $56.2 million, or $0.36 per diluted share for the fiscal quarter ended July 1, 2017, and $36.4 million, or $0.24 per diluted share for the fiscal quarter ended October 1, 2016.

All periods presented include certain items affecting comparability. These items are summarized on the attached reconciliation schedule.  Adjusted earnings per diluted share, which exclude these items net of tax and the unusual tax items, were $0.42, $0.36, and $0.25 for the fiscal quarters ended September 30, 2017, July 1, 2017, and October 1, 2016, respectively.

Commenting on the results for the third quarter 2017, Dr. Gerald Paul, President and Chief Executive Officer, stated, "The third quarter represented a continuation of the trends of the first half of the year. Demand from all end markets improved further, in particular the automotive and industrial markets. Customers remain very confident across the board. Also, inventory turns of our products at distributors remained high with 3.7 turns."

Dr. Paul continued, "We will further increase our efforts to even better penetrate automotive and industrial markets in Asia. For automotive markets worldwide we expect strong growth for years to come driven by e-mobility and sensors. It is a market in which we are very well positioned."

Dr. Paul stated further, "We are especially content to enjoy the benefits of having restructured the MOSFETs business. On the new cost basis, we anticipate a good future for this line."

Commenting on the outlook Dr. Paul stated, "For the fourth quarter based on fewer working days, we guide for revenues of $645 to $685 million and gross margins of 26% to 28% at the exchange rates for the third quarter."

A conference call to discuss Vishay's third quarter financial results is scheduled for Thursday, October 26, 2017 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 91653094.

There will be a replay of the conference call from 12:00 p.m. ET on Thursday, October 26, 2017 through 11:59 p.m. ET on Thursday, November 2, 2017. 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 91653094.

A live audio webcast of the conference call and a PDF copy of the press release and the quarterly presentation will be accessible directly from the Investor Relations section of the Vishay website at http://ir.vishay.com.

About Vishay

Vishay Intertechnology, Inc., a Fortune 1000 Company listed on the NYSE (VSH), is one of the world's largest manufacturers of discrete semiconductors (diodes, MOSFETs, and infrared optoelectronics) and passive electronic components (resistors, inductors, and capacitors). These components are used in virtually all types of electronic devices and equipment, in the industrial, computing, automotive, consumer, telecommunications, military, aerospace, power supplies, and medical markets. Vishay's product innovations, successful acquisition strategy, and "one-stop shop" service have made it a global industry leader. Vishay can be found on the Internet at www.vishay.com.

This press release includes certain financial measures which are not recognized in accordance with U.S. generally accepted accounting principles ("GAAP"), including adjusted net earnings; adjusted earnings per share; adjusted operating margin; free cash; earnings before interest, taxes, depreciation and amortization ("EBITDA"); adjusted EBITDA; and adjusted EBITDA margin; which are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. These non-GAAP measures supplement our GAAP measures of performance or liquidity and should not be viewed as an alternative to GAAP measures of performance or liquidity. Non-GAAP measures such as adjusted net earnings, adjusted earnings per share, adjusted operating margin, free cash, EBITDA, adjusted EBITDA, and adjusted EBITDA margin do not have uniform definitions. These measures, as calculated by Vishay, may not be comparable to similarly titled measures used by other companies. Management believes that such measures are meaningful to investors because they provide insight with respect to intrinsic operating results of the Company. Although the terms "free cash" and "EBITDA" are not defined in GAAP, the measures are derived using various line items measured in accordance with GAAP. Reconciling items to arrive at adjusted net earnings represent significant charges or credits that are important to understanding the Company's intrinsic operations. Reconciling items to calculate adjusted operating margin and adjusted EBITDA represent those same items used in computing adjusted net earnings, as relevant. Furthermore, the presented calculation of adjusted EBITDA is substantially similar to, but not identical to, a measure used in the calculation of financial ratios required for covenant compliance under Vishay's revolving credit facility. These reconciling items are indicated on the accompanying reconciliation schedules and are more fully described in the Company's financial statements presented in its annual report on Form 10-K and its quarterly reports presented on Forms 10-Q.

Statements contained herein that relate to the Company's future performance, including statements with respect to forecasted revenues, margins, cash generation, restructuring programs and their financial impact, anticipated growth areas for the company, global growth markets generally and the performance of the economy in general, are forward-looking statements within the safe harbor provisions of Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "project," "intend," "could," "should," or other similar words or expressions often identify forward-looking statements. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions, many of which are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance, or achievements may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions; delays or difficulties in implementing our cost reduction strategies; 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
  
   
September 30, 2017
    
July 1, 2017
    
October 1, 2016
  
                   
Net revenues
  
$
677,883
    
$
644,892
    
$
591,955
  
Costs of products sold
    
488,610
      
471,929
      
438,054
  
Gross profit
    
189,273
      
172,963
      
153,901
  
  Gross margin
    
27.9
%
    
26.8
%
    
26.0
%
                         
Selling, general, and administrative expenses
    
93,701
      
90,446
      
93,916
  
Restructuring and severance costs
    
3,244
      
481
      
1,197
  
Impairment of intangible assets
    
-
      
-
      
1,559
  
Operating income
    
92,328
      
82,036
      
57,229
  
  Operating margin
    
13.6
%
    
12.7
%
    
9.7
%
                         
Other income (expense):
                        
  Interest expense
    
(6,938
)
    
(7,076
)
    
(6,165
)
  Other
    
798
      
749
      
(380
)
  Total other income (expense) - net
    
(6,140
)
    
(6,327
)
    
(6,545
)
                         
Income before taxes
    
86,188
      
75,709
      
50,684
  
                         
Income taxes
    
21,605
      
19,300
      
14,088
  
                         
Net earnings
    
64,583
      
56,409
      
36,596
  
                         
Less: net earnings attributable to noncontrolling interests
    
179
      
219
      
156
  
                         
Net earnings attributable to Vishay stockholders
  
$
64,404
    
$
56,190
    
$
36,440
  
                         
Basic earnings per share attributable to Vishay stockholders
  
$
0.44
    
$
0.38
    
$
0.25
  
                         
Diluted earnings per share attributable to Vishay stockholders
  
$
0.41
    
$
0.36
    
$
0.24
  
                         
Weighted average shares outstanding - basic
    
145,728
      
146,381
      
146,924
  
                         
Weighted average shares outstanding - diluted
    
156,701
      
155,300
      
149,894
  
                         
Cash dividends per share
  
$
0.0625
    
$
0.0625
    
$
0.0625
  

 
VISHAY INTERTECHNOLOGY, INC.
            
Summary of Operations
            
(Unaudited - In thousands, except per share amounts)
            
             
   
Nine fiscal months ended
  
   
September 30, 2017
    
October 1, 2016
  
             
Net revenues
  
$
1,929,033
    
$
1,752,612
  
Costs of products sold
    
1,405,922
      
1,315,274
  
Gross profit
    
523,111
      
437,338
  
  Gross margin
    
27.1
%
    
25.0
%
                 
Selling, general, and administrative expenses
    
278,865
      
276,455
  
Restructuring and severance costs
    
5,194
      
12,139
  
Impairment of intangible assets
    
-
      
1,559
  
Operating income
    
239,052
      
147,185
  
  Operating margin
    
12.4
%
    
8.4
%
                 
Other income (expense):
                
  Interest expense
    
(20,804
)
    
(18,901
)
  Other
    
1,151
      
2,655
  
  Loss on disposal of equity affiliate
    
(7,060
)
    
-
  
  Gain on early extinguishment of debt
    
-
      
4,597
  
  Total other income (expense) - net
    
(26,713
)
    
(11,649
)
                 
Income before taxes
    
212,339
      
135,536
  
                 
Income taxes
    
54,398
      
37,559
  
                 
Net earnings
    
157,941
      
97,977
  
                 
Less: net earnings attributable to noncontrolling interests
    
628
      
437
  
                 
Net earnings attributable to Vishay stockholders
  
$
157,313
    
$
97,540
  
                 
Basic earnings per share attributable to Vishay stockholders
  
$
1.08
    
$
0.66
  
                 
Diluted earnings per share attributable to Vishay stockholders
  
$
1.01
    
$
0.65
  
                 
Weighted average shares outstanding - basic
    
146,128
      
147,470
  
                 
Weighted average shares outstanding - diluted
    
155,626
      
150,125
  
                 
Cash dividends per share
  
$
0.1875
    
$
0.1875
  


VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Balance Sheets
            
(In thousands)
            
             
   
September 30, 2017
    
December 31, 2016
  
   
(unaudited)
        
Assets
            
Current assets:
            
  Cash and cash equivalents
  
$
575,385
    
$
471,781
  
  Short-term investments
    
668,185
      
626,627
  
  Accounts receivable, net
    
329,422
      
274,027
  
  Inventories:
                
    Finished goods
    
131,367
      
109,075
  
    Work in process
    
178,173
      
162,311
  
    Raw materials
    
128,036
      
109,859
  
  Total inventories
    
437,576
      
381,245
  
                 
  Prepaid expenses and other current assets
    
112,394
      
110,792
  
Total current assets
    
2,122,962
      
1,864,472
  
                 
Property and equipment, at cost:
                
  Land
    
91,905
      
89,753
  
  Buildings and improvements
    
595,628
      
570,932
  
  Machinery and equipment
    
2,399,972
      
2,283,222
  
  Construction in progress
    
63,766
      
71,777
  
  Allowance for depreciation
    
(2,298,431
)
    
(2,166,813
)
     
852,840
      
848,871
  
                 
Goodwill
    
142,545
      
141,407
  
                 
Other intangible assets, net
    
73,154
      
84,463
  
                 
Other assets
    
142,753
      
138,588
  
     Total assets
  
$
3,334,254
    
$
3,077,801
  
 
 

VISHAY INTERTECHNOLOGY, INC.
           
Consolidated Condensed Balance Sheets (continued)
            
(In thousands)
            
             
   
September 30, 2017
    
December 31, 2016
  
   
(unaudited)
        
Liabilities and stockholders' equity
            
Current liabilities:
            
  Notes payable to banks
  
$
25
    
$
3
  
  Trade accounts payable
    
181,988
      
174,107
  
  Payroll and related expenses
    
138,616
      
114,576
  
  Other accrued expenses
    
151,883
      
149,131
  
  Income taxes
    
18,085
      
19,033
  
Total current liabilities
    
490,597
      
456,850
  
                 
Long-term debt less current portion
    
356,938
      
357,023
  
Deferred income taxes
    
289,526
      
286,797
  
Other liabilities
    
67,712
      
59,725
  
Accrued pension and other postretirement costs
    
273,851
      
257,789
  
Total liabilities
    
1,478,624
      
1,418,184
  
                 
Redeemable convertible debentures
    
252,889
      
88,659
  
                 
Equity:
                
Vishay stockholders' equity
                
  Common stock
    
13,200
      
13,385
  
  Class B convertible common stock
    
1,213
      
1,213
  
  Capital in excess of par value
    
1,753,369
      
1,952,988
  
  Retained earnings (accumulated deficit)
    
(177,075
)
    
(307,417
)
  Accumulated other comprehensive income (loss)
    
10,158
      
(94,652
)
  Total Vishay stockholders' equity
    
1,600,865
      
1,565,517
  
Noncontrolling interests
    
1,876
      
5,441
  
Total equity
    
1,602,741
      
1,570,958
  
Total liabilities, temporary equity, and equity
  
$
3,334,254
    
$
3,077,801
  
 
 
 
VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Statements of Cash Flows
            
(Unaudited - In thousands)
            
   
Nine fiscal months ended
  
   
September 30, 2017
    
October 1, 2016*
  
             
Operating activities
            
Net earnings
  
$
157,941
    
$
97,977
  
Adjustments to reconcile net earnings (loss) to
                
    net cash provided by operating activities:
                
      Depreciation and amortization
    
121,319
      
119,143
  
      (Gain) loss on disposal of property and equipment
    
(106
)
    
(1,373
)
      Accretion of interest on convertible debentures
    
3,703
      
3,425
  
      Inventory write-offs for obsolescence
    
12,157
      
17,085
  
      Loss on disposal of equity affiliate
    
7,060
      
-
  
      Impairment of intangible assets
    
-
      
1,559
  
      Deferred income taxes
    
9,115
      
(1,750
)
      Gain on early extinguishment of debt
    
-
      
(4,597
)
      Other
    
6,531
      
(4,944
)
      Changes in operating assets and liabilities, net of effects of businesses acquired
    
(71,875
)
    
(13,455
)
Net cash provided by operating activities
    
245,845
      
213,070
  
                 
Investing activities
                
Purchase of property and equipment
    
(84,790
)
    
(81,346
)
Proceeds from sale of property and equipment
    
1,484
      
1,241
  
Purchase of short-term investments
    
(598,937
)
    
(472,938
)
Maturity of short-term investments
    
610,573
      
491,867
  
Other investing activities
    
(6,663
)
    
2,886
  
Net cash provided by (used in) investing activities
    
(78,333
)
    
(58,290
)
                 
Financing activities
                
Principal payments on long-term debt and capital lease obligations
    
-
      
(34,044
)
Net proceeds (payments) on revolving credit lines
    
(5,000
)
    
(41,000
)
Common stock repurchases
    
(37,564
)
    
(16,981
)
Net changes in short-term borrowings
    
22
      
(626
)
Dividends paid to common stockholders
    
(25,054
)
    
(25,329
)
Dividends paid to Class B common stockholders
    
(2,274
)
    
(2,274
)
Proceeds from stock options exercised
    
1,260
      
-
  
Distributions to noncontrolling interests
    
(1,140
)
    
(707
)
Acquisition of noncontrolling interests
    
(4,100
)
    
-
  
Cash withholding taxes paid when shares withheld for vested equity awards
    
(1,971
)
    
(442
)
Other financing activities
    
(1,255
)
    
-
  
Net cash provided by (used in) financing activities
    
(77,076
)
    
(121,403
)
Effect of exchange rate changes on cash and cash equivalents
    
13,168
      
2,703
  
                 
Net increase in cash and cash equivalents
    
103,604
      
36,080
  
                 
Cash and cash equivalents at beginning of period
    
471,781
      
475,507
  
Cash and cash equivalents at end of period
  
$
575,385
    
$
511,587
  
                 
* recast for the retrospective adoption of ASU 2016-09.
                

 
 
VISHAY INTERTECHNOLOGY, INC.
                              
Reconciliation of Adjusted Earnings Per Share
                          
(Unaudited - In thousands, except per share amounts)
                          
   
Fiscal quarters ended
    
Nine fiscal months ended
  
   
September 30, 2017
    
July 1, 2017
    
October 1, 2016
    
September 30, 2017
    
October 1, 2016
  
                               
GAAP net earnings attributable to Vishay stockholders
  
$
64,404
    
$
56,190
    
$
36,440
    
$
157,313
    
$
97,540
  
                                         
Reconciling items affecting operating income:
                                  
Restructuring and severance costs
  
$
3,244
    
$
481
    
$
1,197
    
$
5,194
    
$
12,139
  
Impairment of intangible assets
    
-
      
-
      
1,559
      
-
      
1,559
  
                                         
Reconciling items affecting other income (expense):
                                  
Loss on disposal of equity affiliate
  
$
-
    
$
-
    
$
-
    
$
7,060
    
$
-
  
Gain on early extinguishment of debt
    
-
      
-
      
-
      
-
      
(4,597
)
                                         
Reconciling items affecting tax expense (benefit):
                                  
Effects of cash repatriation program
  
$
(892
)
  
$
(1,240
)
  
$
(1,402
)
  
$
(3,100
)
  
$
(3,388
)
Effects of changes in uncertain tax positions
    
(804
)
    
-
      
-
      
(804
)
    
-
  
Tax effects of pre-tax items above
    
(674
)
    
(156
)
    
(441
)
    
(1,271
)
    
(2,436
)
                                         
                                         
Adjusted net earnings
  
$
65,278
    
$
55,275
    
$
37,353
    
$
164,392
    
$
100,817
  
                                         
Adjusted weighted average diluted shares outstanding
    
156,701
      
155,300
      
149,894
      
155,626
      
150,125
  
                                         
Adjusted earnings per diluted share*
  
$
0.42
    
$
0.36
    
$
0.25
    
$
1.06
    
$
0.67
  
                                         
* Includes add-back of interest on exchangeable notes in periods where the notes are dilutive.
          
 
 
VISHAY INTERTECHNOLOGY, INC.
                          
Reconciliation of Free Cash
                              
(Unaudited - In thousands)
                              
   
Fiscal quarters ended
    
Nine fiscal months ended
  
   
September 30, 2017
    
July 1, 2017
    
October 1, 2016
    
September 30, 2017
    
October 1, 2016
  
Net cash provided by operating activities
  
$
117,579
    
$
84,592
    
$
117,657
    
$
245,845
    
$
213,070
  
Proceeds from sale of property and equipment
    
196
      
345
      
1,048
      
1,484
      
1,241
  
Less: Capital expenditures
    
(35,723
)
    
(32,399
)
    
(30,273
)
    
(84,790
)
    
(81,346
)
Free cash
  
$
82,052
    
$
52,538
    
$
88,432
    
$
162,539
    
$
132,965
  

 
 
VISHAY INTERTECHNOLOGY, INC.
                          
Reconciliation of EBITDA and Adjusted EBITDA
                    
(Unaudited - In thousands)
                              
   
Fiscal quarters ended
    
Nine fiscal months ended
  
   
September 30, 2017
    
July 1, 2017
    
October 1, 2016
    
September 30, 2017
    
October 1, 2016
  
                               
GAAP net earnings attributable to Vishay stockholders
  
$
64,404
    
$
56,190
    
$
36,440
    
$
157,313
    
$
97,540
  
Net earnings attributable to noncontrolling interests
    
179
      
219
      
156
      
628
      
437
  
Net earnings
  
$
64,583
    
$
56,409
    
$
36,596
    
$
157,941
    
$
97,977
  
                                         
Interest expense
  
$
6,938
    
$
7,076
    
$
6,165
    
$
20,804
    
$
18,901
  
Interest income
    
(1,802
)
    
(1,534
)
    
(1,033
)
    
(4,599
)
    
(3,200
)
Income taxes
    
21,605
      
19,300
      
14,088
      
54,398
      
37,559
  
Depreciation and amortization
    
40,939
      
40,168
      
40,026
      
121,319
      
119,143
  
EBITDA
  
$
132,263
    
$
121,419
    
$
95,842
    
$
349,863
    
$
270,380
  
                                         
Reconciling items
                                        
Restructuring and severance costs
  
$
3,244
    
$
481
    
$
1,197
    
$
5,194
    
$
12,139
  
Impairment of intangible assets
    
-
      
-
      
1,559
      
-
      
1,559
  
Loss on disposal of equity affiliate
    
-
      
-
      
-
      
7,060
      
-
  
Gain on early extinguishment of debt
    
-
      
-
      
-
      
-
      
(4,597
)
                                         
Adjusted EBITDA
  
$
135,507
    
$
121,900
    
$
98,598
    
$
362,117
    
$
279,481
  
                                         
Adjusted EBITDA margin**
    
20.0
%
    
18.9
%
    
16.7
%
    
18.8
%
    
15.9
%
                                         
** 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