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

VISHAY REPORTS RESULTS FOR THIRD QUARTER 2019


•
Revenues for Q3 2019 of $628 million
•
Gross Margin Q3 of 23.9%
•
Operating Margin Q3 of 8.1%
•
Adjusted Operating Margin 9.3%
•
EPS Q3 of $0.21
•
Adjusted EPS Q3 of $0.26
•
Free cash for trailing 12 months Q3 2019 of $205 million
•
Guidance for Q4 2019 for revenues of $580 to $620 million and gross margins of 23% to 24% at Q3 exchange rates

MALVERN, Pa. –October 29, 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 and nine fiscal months ended September 28, 2019.

Revenues for the fiscal quarter ended September 28, 2019 were $628.3 million, compared to $685.2 million for the fiscal quarter ended June 29, 2019, and $781.0 million for the fiscal quarter ended September 29, 2018.  Net earnings attributable to Vishay stockholders for the fiscal quarter ended September 28, 2019 were $30.0 million, or $0.21 per diluted share, compared to $44.5 million, or $0.31 per diluted share for the fiscal quarter ended June 29, 2019, and $77.9 million, or $0.51 per diluted share for the fiscal quarter ended September 29, 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 $0.26, $0.36, and $0.60 for the fiscal quarters ended September 28, 2019, June 29, 2019, and September 29, 2018, respectively.

Commenting on results for the third quarter 2019, Dr. Gerald Paul, President and Chief Executive Officer stated, “Vishay’s financial performance has been negatively impacted by low demand, especially from distribution. However, during the third quarter inventories of Vishay’s products at distribution started to come down noticeably. Still high levels of inventories in the global supply chain should impact our business for another two quarters. We are managing the slowdown by adapting costs as we have done in the past. On the other hand, our increased machine capacities will enable Vishay to participate in the next upturn to the full extent.”

Commenting on the outlook Dr. Paul stated, “For the fourth quarter we expect a continuation of the inventory reduction in the supply chain and guide for revenues in a range of $580 to $620 million and gross margins of 23% to 24%.”

A conference call to discuss Vishay’s third quarter financial results is scheduled for Tuesday, October 29, 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 access code is 9882458.

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.

There will be a replay of the conference call from 12:00 p.m. ET on Tuesday, October 29, 2019 through 11:59 p.m. ET on Tuesday, November 12, 2019. The telephone number for the replay is +1 855-859-2056 (+1 404-537-3406, if calling from outside the United States or Canada) and the access code is 9882458.


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 http://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, restructuring activity savings and costs, 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.

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


VISHAY INTERTECHNOLOGY, INC.
                  
Summary of Operations
                  
(Unaudited - In thousands, except per share amounts)
                  
                   
   
Fiscal quarters ended
  
   
September 28, 2019
    
June 29, 2019
    
September 29, 2018
  
                   
Net revenues
  
$
628,329
    
$
685,240
    
$
780,972
  
Costs of products sold
    
478,250
      
510,639
      
544,676
  
Gross profit
    
150,079
      
174,601
      
236,296
  
  Gross margin
    
23.9
%
    
25.5
%
    
30.3
%
                         
Selling, general, and administrative expenses
    
91,796
      
95,112
      
98,198
  
Restructuring and severance costs
    
7,255
      
-
      
-
  
Operating income
    
51,028
      
79,489
      
138,098
  
  Operating margin
    
8.1
%
    
11.6
%
    
17.7
%
                         
Other income (expense):
                        
  Interest expense
    
(8,564
)
    
(8,204
)
    
(10,813
)
  Other components of net periodic pension cost
    
(3,348
)
    
(3,367
)
    
(3,367
)
  Other
    
5,066
      
2,970
      
2,890
  
  Total other income (expense) - net
    
(6,846
)
    
(8,601
)
    
(11,290
)
                         
Income before taxes
    
44,182
      
70,888
      
126,808
  
                         
Income tax expense
    
13,917
      
26,153
      
48,737
  
                         
Net earnings
    
30,265
      
44,735
      
78,071
  
                         
Less: net earnings attributable to noncontrolling interests
    
227
      
258
      
195
  
                         
Net earnings attributable to Vishay stockholders
  
$
30,038
    
$
44,477
    
$
77,876
  
                         
Basic earnings per share attributable to Vishay stockholders
  
$
0.21
    
$
0.31
    
$
0.54
  
                         
Diluted earnings per share attributable to Vishay stockholders
  
$
0.21
    
$
0.31
    
$
0.51
  
                         
Weighted average shares outstanding - basic
    
144,628
      
144,621
      
144,383
  
                         
Weighted average shares outstanding - diluted
    
145,027
      
145,023
      
152,946
  
                         
Cash dividends per share
  
$
0.095
    
$
0.095
    
$
0.085
  

VISHAY INTERTECHNOLOGY, INC.
            
Summary of Operations
            
(Unaudited - In thousands, except per share amounts)
            
             
   
Nine fiscal months ended
  
   
September 28, 2019
    
September 29, 2018
  
             
Net revenues
  
$
2,058,728
    
$
2,258,797
  
Costs of products sold
    
1,522,889
      
1,589,963
  
Gross profit
    
535,839
      
668,834
  
  Gross margin
    
26.0
%
    
29.6
%
                 
Selling, general, and administrative expenses
    
290,332
      
303,381
  
Restructuring and severance costs
    
7,255
      
-
  
Operating income
    
238,252
      
365,453
  
  Operating margin
    
11.6
%
    
16.2
%
                 
Other income (expense):
                
  Interest expense
    
(25,160
)
    
(26,862
)
  Other components of net periodic pension cost
    
(10,111
)
    
(10,336
)
  Other
    
13,344
      
5,440
  
  Loss on early extinguishment of debt
    
(1,307
)
    
(17,309
)
  Total other income (expense) - net
    
(23,234
)
    
(49,067
)
                 
Income before taxes
    
215,018
      
316,386
  
                 
Income tax expense
    
64,377
      
72,508
  
                 
Net earnings
    
150,641
      
243,878
  
                 
Less: net earnings attributable to noncontrolling interests
    
667
      
539
  
                 
Net earnings attributable to Vishay stockholders
  
$
149,974
    
$
243,339
  
                 
Basic earnings per share attributable to Vishay stockholders
  
$
1.04
    
$
1.69
  
                 
Diluted earnings per share attributable to Vishay stockholders
  
$
1.03
    
$
1.55
  
                 
Weighted average shares outstanding - basic
    
144,602
      
144,364
  
                 
Weighted average shares outstanding - diluted
    
145,114
      
156,702
  
                 
Cash dividends per share
  
$
0.2750
    
$
0.2375
  

VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Balance Sheets
            
(In thousands)
            
             
   
September 28, 2019
    
December 31, 2018
  
   
(Unaudited)
        
Assets
            
Current assets:
            
  Cash and cash equivalents
  
$
731,483
    
$
686,032
  
  Short-term investments
    
56,043
      
78,286
  
  Accounts receivable, net
    
335,189
      
397,020
  
  Inventories:
                
    Finished goods
    
129,485
      
138,112
  
    Work in process
    
189,757
      
190,982
  
    Raw materials
    
125,411
      
150,566
  
  Total inventories
    
444,653
      
479,660
  
                 
  Prepaid expenses and other current assets
    
123,712
      
142,888
  
Total current assets
    
1,691,080
      
1,783,886
  
                 
Property and equipment, at cost:
                
  Land
    
74,053
      
87,622
  
  Buildings and improvements
    
570,727
      
619,445
  
  Machinery and equipment
    
2,551,127
      
2,510,001
  
  Construction in progress
    
113,639
      
125,109
  
  Allowance for depreciation
    
(2,381,868
)
    
(2,373,176
)
     
927,678
      
969,001
  
                 
Right of use assets
    
93,103
      
-
  
                 
Goodwill
    
150,309
      
147,480
  
                 
Other intangible assets, net
    
62,265
      
65,688
  
                 
Other assets
    
147,751
      
140,143
  
     Total assets
  
$
3,072,186
    
$
3,106,198
  

VISHAY INTERTECHNOLOGY, INC.
           
Consolidated Condensed Balance Sheets (continued)
        
(In thousands)
            
             
   
September 28, 2019
    
December 31, 2018
  
   
(Unaudited)
        
             
Liabilities and stockholders' equity
            
Current liabilities:
            
  Notes payable to banks
  
$
7
    
$
18
  
  Trade accounts payable
    
141,472
      
218,322
  
  Payroll and related expenses
    
131,751
      
141,670
  
  Lease liabilities
    
16,932
      
-
  
  Other accrued expenses
    
164,995
      
229,660
  
  Income taxes
    
25,945
      
54,436
  
Total current liabilities
    
481,102
      
644,106
  
                 
Long-term debt less current portion
    
496,262
      
494,509
  
U.S. transition tax payable
    
140,196
      
154,953
  
Deferred income taxes
    
47,246
      
85,471
  
Long-term lease liabilities
    
80,998
      
-
  
Other liabilities
    
90,174
      
79,489
  
Accrued pension and other postretirement costs
    
248,357
      
260,984
  
Total liabilities
    
1,584,335
      
1,719,512
  
                 
Redeemable convertible debentures
    
-
      
2,016
  
                 
Equity:
                
Vishay stockholders' equity
                
  Common stock
    
13,235
      
13,212
  
  Class B convertible common stock
    
1,210
      
1,210
  
  Capital in excess of par value
    
1,427,049
      
1,436,011
  
  Retained earnings (accumulated deficit)
    
71,956
      
(61,258
)
  Accumulated other comprehensive income (loss)
    
(27,952
)
    
(6,791
)
  Total Vishay stockholders' equity
    
1,485,498
      
1,382,384
  
Noncontrolling interests
    
2,353
      
2,286
  
Total equity
    
1,487,851
      
1,384,670
  
Total liabilities, temporary equity, and equity
  
$
3,072,186
    
$
3,106,198
  

VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Statements of Cash Flows
            
(Unaudited - in thousands)
            
   
Nine fiscal months ended
  
   
September 28, 2019
    
September 29, 2018
  
             
Operating activities
            
Net earnings
  
$
150,641
    
$
243,878
  
Adjustments to reconcile net earnings (loss) to
                
    net cash provided by operating activities:
                
      Depreciation and amortization
    
122,302
      
121,888
  
      (Gain) loss on disposal of property and equipment
    
(168
)
    
(2,216
)
      Accretion of interest on convertible debt instruments
    
10,558
      
6,966
  
      Inventory write-offs for obsolescence
    
19,214
      
17,059
  
      Loss on early extinguishment of debt
    
1,307
      
17,309
  
      Deferred income taxes
    
(4,481
)
    
(12,348
)
      Other
    
9,029
      
13,021
  
      Change in U.S. transition tax liability
    
(14,757
)
    
(14,400
)
      Change in repatriation tax liability
    
(38,814
)
    
(156,767
)
      Changes in operating assets and liabilities, net of effects of businesses acquired
    
(42,810
)
    
(125,499
)
Net cash provided by operating activities
    
212,021
      
108,891
  
                 
Investing activities
                
Purchase of property and equipment
    
(100,267
)
    
(126,391
)
Proceeds from sale of property and equipment
    
486
      
8,455
  
Purchase of businesses, net of cash acquired
    
(11,862
)
    
(14,880
)
Purchase of short-term investments
    
(59,440
)
    
(172,732
)
Maturity of short-term investments
    
79,765
      
577,524
  
Other investing activities
    
4,021
      
(1,608
)
Net cash provided by (used in) investing activities
    
(87,297
)
    
270,368
  
                 
Financing activities
                
Proceeds from long-term borrowings
    
-
      
600,000
  
Issuance costs
    
(5,394
)
    
(15,621
)
Repurchase of convertible debentures
    
(22,695
)
    
(584,991
)
Net proceeds (payments) on revolving credit lines
    
-
      
(150,000
)
Net changes in short-term borrowings
    
(12
)
    
-
  
Dividends paid to common stockholders
    
(36,396
)
    
(31,378
)
Dividends paid to Class B common stockholders
    
(3,327
)
    
(2,873
)
Distributions to noncontrolling interests
    
(600
)
    
(525
)
Cash withholding taxes paid when shares withheld for vested equity awards
    
(2,708
)
    
(2,297
)
Net cash used in financing activities
    
(71,132
)
    
(187,685
)
Effect of exchange rate changes on cash and cash equivalents
    
(8,141
)
    
(11,501
)
                 
Net increase in cash and cash equivalents
    
45,451
      
180,073
  
                 
Cash and cash equivalents at beginning of period
    
686,032
      
748,032
  
Cash and cash equivalents at end of period
  
$
731,483
    
$
928,105
  

VISHAY INTERTECHNOLOGY, INC.
                              
Reconciliation of Adjusted Earnings Per Share
                          
(Unaudited - In thousands, except per share amounts)
                          
   
Fiscal quarters ended
    
Nine fiscal months ended
  
   
September 28, 2019
    
June 29, 2019
    
September 29, 2018
    
September 28, 2019
    
September 29, 2018
  
                               
GAAP net earnings attributable to Vishay stockholders
  
$
30,038
    
$
44,477
    
$
77,876
    
$
149,974
    
$
243,339
  
                                         
Reconciling items affecting operating income:
                                  
Restructuring and severance costs
  
$
7,255
    
$
-
    
$
-
    
$
7,255
    
$
-
  
                                         
Reconciling items affecting other income (expense):
                                  
Loss on early extinguishment of debt
  
$
-
    
$
-
    
$
-
    
$
1,307
    
$
17,309
  
                                         
Reconciling items affecting tax expense (benefit):
                                  
Effects of tax-basis foreign exchange gain
  
$
-
    
$
7,554
    
$
-
    
$
7,554
    
$
-
  
Enactment of TCJA
    
-
      
-
      
13,496
      
-
      
25,496
  
Effects of cash repatriation program
    
2,604
      
(48
)
    
680
      
1,971
      
(7,010
)
Change in deferred taxes due to early extinguishment of debt
    
-
      
-
      
-
      
(1,312
)
    
(33,963
)
Tax effects of pre-tax items above
    
(1,644
)
    
-
      
-
      
(1,934
)
    
(3,784
)
                                         
Adjusted net earnings
  
$
38,253
    
$
51,983
    
$
92,052
    
$
164,815
    
$
241,387
  
                                         
Adjusted weighted average diluted shares outstanding
    
145,027
      
145,023
      
152,946
      
145,114
      
156,702
  
                                         
Adjusted earnings per diluted share
  
$
0.26
    
$
0.36
    
$
0.60
    
$
1.14
    
$
1.54
  

VISHAY INTERTECHNOLOGY, INC.
                          
Reconciliation of Free Cash
                              
(Unaudited - In thousands)
                              
   
Fiscal quarters ended
    
Nine fiscal months ended
  
   
September 28, 2019
    
June 29, 2019
    
September 29, 2018
    
September 28, 2019
    
September 29, 2018
  
Net cash provided by operating activities
  
$
76,202
    
$
56,301
    
$
70,721
    
$
212,021
    
$
108,891
  
Proceeds from sale of property and equipment
    
22
      
69
      
77
      
486
      
8,455
  
Less: Capital expenditures
    
(30,119
)
    
(33,781
)
    
(49,745
)
    
(100,267
)
    
(126,391
)
Free cash
  
$
46,105
    
$
22,589
    
$
21,053
    
$
112,240
    
$
(9,045
)

VISHAY INTERTECHNOLOGY, INC.
                          
Reconciliation of EBITDA and Adjusted EBITDA
                    
(Unaudited - In thousands)
                              
   
Fiscal quarters ended
    
Nine fiscal months ended
  
   
September 28, 2019
    
June 29, 2019
    
September 29, 2018
    
September 28, 2019
    
September 29, 2018
  
                               
GAAP net earnings attributable to Vishay stockholders
  
$
30,038
    
$
44,477
    
$
77,876
    
$
149,974
    
$
243,339
  
Net earnings attributable to noncontrolling interests
    
227
      
258
      
195
      
667
      
539
  
Net earnings
  
$
30,265
    
$
44,735
    
$
78,071
    
$
150,641
    
$
243,878
  
                                         
Interest expense
  
$
8,564
    
$
8,204
    
$
10,813
    
$
25,160
    
$
26,862
  
Interest income
    
(2,365
)
    
(2,147
)
    
(3,504
)
    
(6,711
)
    
(8,302
)
Income taxes
    
13,917
      
26,153
      
48,737
      
64,377
      
72,508
  
Depreciation and amortization
    
40,956
      
40,918
      
40,714
      
122,302
      
121,888
  
EBITDA
  
$
91,337
    
$
117,863
    
$
174,831
    
$
355,769
    
$
456,834
  
                                         
Reconciling items
                                        
Restructuring and severance costs
  
$
7,255
    
$
-
    
$
-
    
$
7,255
    
$
-
  
Loss on early extinguishment of debt
    
-
      
-
      
-
      
1,307
      
17,309
  
                                         
Adjusted EBITDA
  
$
98,592
    
$
117,863
    
$
174,831
    
$
364,331
    
$
474,143
  
                                         
Adjusted EBITDA margin**
    
15.7
%
    
17.2
%
    
22.4
%
    
17.7
%
    
21.0
%
                                         
** Adjusted EBITDA as a percentage of net revenues