EX-99.1 2 exhibit99-1.htm EXHIBIT 99.1
Exhibit 99.1
 
VISHAY REPORTS RESULTS FOR FIRST QUARTER 2019


·
Revenues for Q1 2019 of $745 million
·
Gross Margin Q1 of 28.3%
·
Operating Margin Q1 of 14.5%
·
EPS Q1 of $0.52
·
Adjusted EPS Q1 of $0.51
·
Free cash for trailing 12 months Q1 2019 of $109 million
·
Guidance for Q2 2019 for revenues of $700 to $740 million and gross margins of 26% to 27% at Q1 exchange rates

MALVERN, PENNSYLVANIA – May 9, 2019 – 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 March 30, 2019.

Revenues for the fiscal quarter ended March 30, 2019 were $745.2 million, compared to $775.9 million for the fiscal quarter ended December 31, 2018, and $716.8 million for the fiscal quarter ended March 31, 2018.  Net earnings attributable to Vishay stockholders for the fiscal quarter ended March 30, 2019 were $75.5 million, or $0.52 per diluted share, compared to $102.4 million, or $0.69 per diluted share for the fiscal quarter ended December 31, 2018, and $62.4 million, or $0.39 per diluted share for the fiscal quarter ended March 31, 2018.

As summarized on the attached reconciliation schedule, all periods presented include items affecting comparability.  Adjusted earnings per diluted share, which exclude these items net of tax and the unusual tax items, were $0.51, $0.58, and $0.40 for the fiscal quarters ended March 30, 2019, December 31, 2018, and March 31, 2018, respectively.

Commenting on the results for the first quarter 2019, Dr. Gerald Paul, President and Chief Executive Officer, stated, “The first quarter 2019 results are in line with the past two excellent years. While most of our end markets continued to be friendly, we saw a substantial increase of inventories in the supply chain. We seem to be entering a phase of normalization of backlogs and inventories of our products at distributors. In the short-term, the anticipated inventory reductions of distributors will negatively impact our revenues, as reflected in our guidance. At the same time, we had a book-to-bill for OEM of again substantially above 1.”

Commenting on the outlook Dr. Paul stated, “For the second quarter, we guide for revenues of $700 to $740 million and gross margins of 26% to 27% at the exchange rates for the first quarter.”

A conference call to discuss Vishay’s first quarter financial results is scheduled for Thursday, May 9, 2019 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 8555287.

There will be a replay of the conference call from 12:00 p.m. ET on Thursday, May 9, 2019 through 11:59 p.m. ET on Thursday, May 16, 2019. 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 8555287.

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, inventories, product demand, manufacturing capacities, 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; delays or difficulties in expanding our manufacturing capacities; an inability to attract and retain highly qualified personnel; changes in foreign currency exchange rates; uncertainty related to the effects of changes in foreign currency exchange rates; competition and technological changes in our industries; difficulties in new product development; difficulties in identifying suitable acquisition candidates, consummating a transaction on terms which we consider acceptable, and integration and performance of acquired businesses; changes in U.S. and foreign trade regulations and tariffs, and uncertainty regarding the same; changes in applicable domestic and foreign tax regulations, and uncertainty regarding the same; changes in applicable accounting standards and other factors affecting our operations that are set forth in our filings with the Securities and Exchange Commission, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.



VISHAY INTERTECHNOLOGY, INC.
                  
Summary of Operations
                  
(Unaudited - In thousands, except per share amounts)
                  
                   
   
Fiscal quarters ended
  
   
March 30, 2019
    
December 31, 2018
    
March 31, 2018
  
                   
Net revenues
  
$
745,159
    
$
775,892
    
$
716,795
  
Costs of products sold
    
534,000
      
556,202
      
511,495
  
Gross profit
    
211,159
      
219,690
      
205,300
  
  Gross margin
    
28.3
%
    
28.3
%
    
28.6
%
                         
Selling, general, and administrative expenses
    
103,424
      
100,023
      
101,238
  
Operating income
    
107,735
      
119,667
      
104,062
  
  Operating margin
    
14.5
%
    
15.4
%
    
14.5
%
                         
Other income (expense):
                        
  Interest expense
    
(8,392
)
    
(9,818
)
    
(7,677
)
  Other components of net periodic pension cost
    
(3,396
)
    
(2,782
)
    
(3,519
)
  Other
    
5,308
      
2,597
      
(847
)
  Loss on early extinguishment of debt
    
(1,307
)
    
(9,274
)
    
-
  
  Total other income (expense) - net
    
(7,787
)
    
(19,277
)
    
(12,043
)
                         
Income before taxes
    
99,948
      
100,390
      
92,019
  
                         
Income taxes
    
24,307
      
(2,269
)
    
29,474
  
                         
Net earnings
    
75,641
      
102,659
      
62,545
  
                         
Less: net earnings attributable to noncontrolling interests
    
182
      
240
      
179
  
                         
Net earnings attributable to Vishay stockholders
  
$
75,459
    
$
102,419
    
$
62,366
  
                         
Basic earnings per share attributable to Vishay stockholders
  
$
0.52
    
$
0.71
    
$
0.43
  
                         
Diluted earnings per share attributable to Vishay stockholders
  
$
0.52
    
$
0.69
    
$
0.39
  
                         
Weighted average shares outstanding - basic
    
144,554
      
144,384
      
144,327
  
                         
Weighted average shares outstanding - diluted
    
145,289
      
148,378
      
159,502
  
                         
Cash dividends per share
  
$
0.0850
    
$
0.0850
    
$
0.0675
  



VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Balance Sheets
            
(In thousands)
            
             
   
March 30, 2019
    
December 31, 2018
  
   
(Unaudited)
        
Assets
            
Current assets:
            
  Cash and cash equivalents
  
$
749,426
    
$
686,032
  
  Short-term investments
    
8,411
      
78,286
  
  Accounts receivable, net
    
391,960
      
397,020
  
  Inventories:
                
    Finished goods
    
137,317
      
138,112
  
    Work in process
    
194,617
      
190,982
  
    Raw materials
    
148,293
      
150,566
  
  Total inventories
    
480,227
      
479,660
  
                 
  Prepaid expenses and other current assets
    
141,555
      
142,888
  
Total current assets
    
1,771,579
      
1,783,886
  
                 
Property and equipment, at cost:
                
  Land
    
74,499
      
87,622
  
  Buildings and improvements
    
569,395
      
619,445
  
  Machinery and equipment
    
2,525,394
      
2,510,001
  
  Construction in progress
    
119,470
      
125,109
  
  Allowance for depreciation
    
(2,339,944
)
    
(2,373,176
)
     
948,814
      
969,001
  
                 
Right of use assets
    
96,281
      
-
  
                 
Goodwill
    
150,628
      
147,480
  
                 
Other intangible assets, net
    
67,524
      
65,688
  
                 
Other assets
    
146,224
      
140,143
  
     Total assets
  
$
3,181,050
    
$
3,106,198
  



VISHAY INTERTECHNOLOGY, INC.
           
Consolidated Condensed Balance Sheets (continued)
            
(In thousands)
            
             
   
March 30, 2019
    
December 31, 2018
  
   
(Unaudited)
        
             
Liabilities and stockholders' equity
            
Current liabilities:
            
  Notes payable to banks
  
$
18
    
$
18
  
  Trade accounts payable
    
192,221
      
218,322
  
  Payroll and related expenses
    
135,821
      
141,670
  
  Lease liabilities
    
14,760
      
-
  
  Other accrued expenses
    
160,756
      
229,660
  
  Income taxes
    
70,653
      
54,436
  
Total current liabilities
    
574,229
      
644,106
  
                 
Long-term debt less current portion
    
492,830
      
494,509
  
U.S. transition tax payable
    
154,953
      
154,953
  
Deferred income taxes
    
86,209
      
85,471
  
Long-term lease liabilities
    
86,684
      
-
  
Other liabilities
    
79,492
      
79,489
  
Accrued pension and other postretirement costs
    
254,835
      
260,984
  
Total liabilities
    
1,729,232
      
1,719,512
  
                 
Redeemable convertible debentures
    
206
      
2,016
  
                 
Equity:
                
Vishay stockholders' equity
                
  Common stock
    
13,234
      
13,212
  
  Class B convertible common stock
    
1,210
      
1,210
  
  Capital in excess of par value
    
1,425,101
      
1,436,011
  
  Retained earnings (accumulated deficit)
    
24,922
      
(61,258
)
  Accumulated other comprehensive income (loss)
    
(15,323
)
    
(6,791
)
  Total Vishay stockholders' equity
    
1,449,144
      
1,382,384
  
Noncontrolling interests
    
2,468
      
2,286
  
Total equity
    
1,451,612
      
1,384,670
  
Total liabilities, temporary equity, and equity
  
$
3,181,050
    
$
3,106,198
  



VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Statements of Cash Flows
            
(Unaudited - in thousands)
            
   
Three fiscal months ended
  
   
March 30, 2019
    
March 31, 2018
  
             
Operating activities
            
Net earnings
  
$
75,641
    
$
62,545
  
Adjustments to reconcile net earnings (loss) to
                
    net cash provided by operating activities:
                
      Depreciation and amortization
    
40,428
      
40,558
  
      (Gain) loss on disposal of property and equipment
    
(173
)
    
(176
)
      Accretion of interest on convertible debt instruments
    
3,490
      
1,309
  
      Inventory write-offs for obsolescence
    
6,967
      
5,457
  
      Loss on early extinguishment of debt
    
1,307
      
-
  
      Deferred income taxes
    
(2,614
)
    
7,014
  
      Other
    
(1,744
)
    
2,908
  
      Changes in operating assets and liabilities, net of effects of businesses acquired
    
(43,784
)
    
(72,756
)
Net cash provided by operating activities
    
79,518
      
46,859
  
                 
Investing activities
                
Purchase of property and equipment
    
(36,367
)
    
(28,273
)
Proceeds from sale of property and equipment
    
395
      
184
  
Purchase of businesses, net of cash acquired
    
(11,862
)
    
(12,072
)
Purchase of short-term investments
    
(1,920
)
    
(39,243
)
Maturity of short-term investments
    
71,455
      
93,194
  
Other investing activities
    
2,893
      
(935
)
Net cash provided by investing activities
    
24,594
      
12,855
  
                 
Financing activities
                
Repurchase of convertible debentures
    
(22,695
)
    
-
  
Net proceeds (payments) on revolving credit lines
    
-
      
34,000
  
Net changes in short-term borrowings
    
-
      
52
  
Dividends paid to common stockholders
    
(11,249
)
    
(8,918
)
Dividends paid to Class B common stockholders
    
(1,028
)
    
(817
)
Cash withholding taxes paid when shares withheld for vested equity awards
    
(2,659
)
    
(2,297
)
Net cash provided by (used in) financing activities
    
(37,631
)
    
22,020
  
Effect of exchange rate changes on cash and cash equivalents
    
(3,087
)
    
9,825
  
                 
Net increase in cash and cash equivalents
    
63,394
      
91,559
  
                 
Cash and cash equivalents at beginning of period
    
686,032
      
748,032
  
Cash and cash equivalents at end of period
  
$
749,426
    
$
839,591
  



VISHAY INTERTECHNOLOGY, INC.
                  
Reconciliation of Adjusted Earnings Per Share
                  
(Unaudited - In thousands, except per share amounts)
                  
   
Fiscal quarters ended
  
   
March 30, 2019
    
December 31, 2018
    
March 31, 2018
  
                   
GAAP net earnings attributable to Vishay stockholders
  
$
75,459
    
$
102,419
    
$
62,366
  
                         
Reconciling items affecting other income (expense):
                        
Loss on early extinguishment of debt
  
$
1,307
    
$
9,274
    
$
-
  
                         
Reconciling items affecting tax expense (benefit):
                        
Change in deferred taxes due to early extinguishment of debt
  
$
(1,312
)
  
$
(20,914
)
  
$
-
  
Effects of cash repatriation program
    
(585
)
    
(3,037
)
    
1,316
  
Tax effects of pre-tax items above
    
(290
)
    
(2,028
)
    
-
  
                         
Adjusted net earnings
  
$
74,579
    
$
85,714
    
$
63,682
  
                         
Adjusted weighted average diluted shares outstanding
    
145,289
      
148,378
      
159,502
  
                         
Adjusted earnings per diluted share
  
$
0.51
    
$
0.58
    
$
0.40
  



VISHAY INTERTECHNOLOGY, INC.
                  
Reconciliation of Free Cash
                  
(Unaudited - In thousands)
                  
   
Fiscal quarters ended
  
   
March 30, 2019
    
December 31, 2018
    
March 31, 2018
  
Net cash provided by operating activities
  
$
79,518
    
$
149,615
    
$
46,859
  
Proceeds from sale of property and equipment
    
395
      
47,106
      
184
  
Less: Capital expenditures
    
(36,367
)
    
(103,508
)
    
(28,273
)
Free cash
  
$
43,546
    
$
93,213
    
$
18,770
  



VISHAY INTERTECHNOLOGY, INC.
                  
Reconciliation of EBITDA and Adjusted EBITDA
              
(Unaudited - In thousands)
                  
   
Fiscal quarters ended
  
   
March 30, 2019
    
December 31, 2018
    
March 31, 2018
  
                   
GAAP net earnings attributable to Vishay stockholders
  
$
75,459
    
$
102,419
    
$
62,366
  
Net earnings attributable to noncontrolling interests
    
182
      
240
      
179
  
Net earnings
  
$
75,641
    
$
102,659
    
$
62,545
  
                         
Interest expense
  
$
8,392
    
$
9,818
    
$
7,677
  
Interest income
    
(2,199
)
    
(3,638
)
    
(2,036
)
Income taxes
    
24,307
      
(2,269
)
    
29,474
  
Depreciation and amortization
    
40,428
      
39,975
      
40,558
  
EBITDA
  
$
146,569
    
$
146,545
    
$
138,218
  
                         
Reconciling items
                        
Loss on early extinguishment of debt
  
$
1,307
    
$
9,274
    
$
-
  
                         
Adjusted EBITDA
  
$
147,876
    
$
155,819
    
$
138,218
  
                         
Adjusted EBITDA margin**
    
19.8
%
    
20.1
%
    
19.3
%
                         
** Adjusted EBITDA as a percentage of net revenues
                  

Contact:
Vishay Intertechnology, Inc.
Peter Henrici
Senior Vice President, Corporate Communications
+1-610-644-1300