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

VISHAY REPORTS RESULTS FOR FOURTH QUARTER AND YEAR 2019

•
Revenues for Q4 2019 of $610 million and for the year 2019 $2,668 million
•
Gross Margin Q4 of 22.2% and year 2019 of 25.2%
•
Operating Margin Q4 of 4.0% and year 2019 of 9.8%
•
Adjusted Operating Margin Q4 of 6.7% and year 2019 of 10.7%
•
EPS Q4 of $0.10 and year 2019 of $1.13
•
Adjusted EPS Q4 of $0.13 and year 2019 of $1.26
•
Free cash for the year 2019 of $140 million
•
Guidance for Q1 2020 for revenues of $605 to $645 million and gross margins of 24.0% plus/minus 70 basis points at Q4 exchange rates

MALVERN, Pa. – February 4, 2020 – Vishay Intertechnology, Inc. (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive components, today announced its results for the year and fiscal quarter ended December 31, 2019.

Revenues for the year ended December 31, 2019 were $2,668.3 million, compared to $3,034.7 million for the year ended December 31, 2018.  Net earnings attributable to Vishay stockholders for the year ended December 31, 2019 were $163.9 million, or $1.13 per diluted share compared to $345.8 million, or $2.24 per diluted share for the year ended December 31, 2018.

Revenues for the fiscal quarter ended December 31, 2019 were $609.6 million, compared to $628.3 million for the fiscal quarter ended September 28, 2019, and $775.9 million for the fiscal quarter ended December 31, 2018.  Net earnings attributable to Vishay stockholders for the fiscal quarter ended December 31, 2019 were $14.0 million, or $0.10 per diluted share, compared to $30.0 million, or $0.21 per diluted share for the fiscal quarter ended September 28, 2019, and $102.4 million, or $0.69 per diluted share for the fiscal quarter ended December 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 $0.13 and $1.26 for the fiscal quarter and year ended December 31, 2019, respectively, $0.26 for the fiscal quarter ended September 28, 2019, and $0.58 and $2.12 for the fiscal quarter and year ended December 31, 2018, respectively.

Commenting on results for the year 2019, Dr. Gerald Paul, President and Chief Executive Officer stated, “After a prolonged upturn in the prior two years, 2019 has been a year of correction for Vishay and the electronic components industry. The reduction of inflated inventory levels in the supply chain led to drastically reduced manufacturing volumes, which negatively impacted Vishay’s profitability. A further burden has been temporary manufacturing inefficiencies due to the very rapid and substantial adaptation of capacities to the decreased demand.”

Dr. Paul continued, commenting on the results for the fourth quarter 2019, “The performance in the fourth quarter has been disappointing due to a lower than usual contributive margin caused by an unfavorable product mix and various negative singularities impacting variable cost; lower other income; and a higher than assumed tax rate for the year. During the fourth quarter inventories of Vishay’s products at distribution were reduced by a further $37 million. Based on lower order cancellations and an order uptick from distribution in all regions, we believe that the fourth quarter represented the low point of the inventory correction in the supply chain.”

Commenting on the outlook Dr. Paul stated, “For the first quarter 2020 we expect a further inventory reduction in the supply chain and guide for revenues in the range of $605 to $645 million and gross margins of 24.0% plus/minus 70 basis points at the exchange rates of the fourth quarter 2019.  The guidance excludes the impact from the rapidly evolving coronavirus crisis."

A conference call to discuss Vishay’s third quarter financial results is scheduled for Tuesday, February 4, 2020 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 4395745.

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, February 4, 2020, through 11:59 p.m. ET on Tuesday, February 18, 2020. 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 4395745.

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, 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; manufacturing or supply chain interruptions or changes in customer demand because of the coronavirus or similar diseases; 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
            
(In thousands, except per share amounts)
            
             
   
Years ended
  
   
December 31, 2019
    
December 31, 2018
  
   
(Unaudited)
        
             
Net revenues
  
$
2,668,305
    
$
3,034,689
  
Costs of products sold
    
1,997,105
      
2,146,165
  
Gross profit
    
671,200
      
888,524
  
  Gross margin
    
25.2
%
    
29.3
%
                 
Selling, general, and administrative expenses
    
384,631
      
403,404
  
Restructuring and severance costs
    
24,139
      
-
  
Operating income
    
262,430
      
485,120
  
  Operating margin
    
9.8
%
    
16.0
%
                 
Other income (expense):
                
  Interest expense
    
(33,683
)
    
(36,680
)
  Other components of net periodic pension cost
    
(13,959
)
    
(13,118
)
  Other
    
13,540
      
8,037
  
  Loss on early extinguishment of debt
    
(2,030
)
    
(26,583
)
  Total other income (expense) - net
    
(36,132
)
    
(68,344
)
                 
Income before taxes
    
226,298
      
416,776
  
                 
Income tax expense
    
61,508
      
70,239
  
                 
Net earnings
    
164,790
      
346,537
  
                 
Less: net earnings attributable to noncontrolling interests
    
854
      
779
  
                 
Net earnings attributable to Vishay stockholders
  
$
163,936
    
$
345,758
  
                 
Basic earnings per share attributable to Vishay stockholders
  
$
1.13
    
$
2.39
  
                 
Diluted earnings per share attributable to Vishay stockholders
  
$
1.13
    
$
2.24
  
                 
Weighted average shares outstanding - basic
    
144,608
      
144,370
  
                 
Weighted average shares outstanding - diluted
    
145,136
      
154,622
  
                 
Cash dividends per share
  
$
0.3700
    
$
0.3225
  
                 



VISHAY INTERTECHNOLOGY, INC.
                  
Summary of Operations
                  
(Unaudited - In thousands, except per share amounts)
              
                   
   
Fiscal quarters ended
  
   
December 31, 2019
    
September 28, 2019
    
December 31, 2018
  
                   
Net revenues
  
$
609,577
    
$
628,329
    
$
775,892
  
Costs of products sold
    
474,216
      
478,250
      
556,202
  
Gross profit
    
135,361
      
150,079
      
219,690
  
  Gross margin
    
22.2
%
    
23.9
%
    
28.3
%
                         
Selling, general, and administrative expenses
    
94,299
      
91,796
      
100,023
  
Restructuring and severance costs
    
16,884
      
7,255
      
-
  
Operating income
    
24,178
      
51,028
      
119,667
  
  Operating margin
    
4.0
%
    
8.1
%
    
15.4
%
                         
Other income (expense):
                        
  Interest expense
    
(8,523
)
    
(8,564
)
    
(9,818
)
  Other components of net periodic pension cost
    
(3,848
)
    
(3,348
)
    
(2,782
)
  Other
    
196
      
5,066
      
2,597
  
  Loss on early extinguishment of debt
    
(723
)
    
-
      
(9,274
)
  Total other income (expense) - net
    
(12,898
)
    
(6,846
)
    
(19,277
)
                         
Income before taxes
    
11,280
      
44,182
      
100,390
  
                         
Income tax expense (benefit)
    
(2,869
)
    
13,917
      
(2,269
)
                         
Net earnings
    
14,149
      
30,265
      
102,659
  
                         
Less: net earnings attributable to noncontrolling interests
    
187
      
227
      
240
  
                         
Net earnings attributable to Vishay stockholders
  
$
13,962
    
$
30,038
    
$
102,419
  
                         
Basic earnings per share attributable to Vishay stockholders
  
$
0.10
    
$
0.21
    
$
0.71
  
                         
Diluted earnings per share attributable to Vishay stockholders
  
$
0.10
    
$
0.21
    
$
0.69
  
                         
Weighted average shares outstanding - basic
    
144,628
      
144,628
      
144,384
  
                         
Weighted average shares outstanding - diluted
    
145,202
      
145,027
      
148,378
  
                         
Cash dividends per share
  
$
0.095
    
$
0.095
    
$
0.0850
  
                         


VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Balance Sheets
            
(In thousands)
            
             
   
December 31, 2019
    
December 31, 2018
  
   
(Unaudited)
        
Assets
            
Current assets:
            
  Cash and cash equivalents
  
$
694,133
    
$
686,032
  
  Short-term investments
    
108,822
      
78,286
  
  Accounts receivable, net
    
328,187
      
397,020
  
  Inventories:
                
    Finished goods
    
122,466
      
138,112
  
    Work in process
    
187,354
      
190,982
  
    Raw materials
    
121,860
      
150,566
  
  Total inventories
    
431,680
      
479,660
  
                 
  Prepaid expenses and other current assets
    
141,294
      
142,888
  
Total current assets
    
1,704,116
      
1,783,886
  
                 
Property and equipment, at cost:
                
  Land
    
75,011
      
87,622
  
  Buildings and improvements
    
585,064
      
619,445
  
  Machinery and equipment
    
2,606,355
      
2,510,001
  
  Construction in progress
    
110,722
      
125,109
  
  Allowance for depreciation
    
(2,425,627
)
    
(2,373,176
)
     
951,525
      
969,001
  
                 
Right of use assets
    
93,162
      
-
  
                 
Goodwill
    
150,642
      
147,480
  
                 
Other intangible assets, net
    
60,659
      
65,688
  
                 
Other assets
    
160,671
      
140,143
  
     Total assets
  
$
3,120,775
    
$
3,106,198
  


VISHAY INTERTECHNOLOGY, INC.
           
Consolidated Condensed Balance Sheets (continued)
        
(In thousands)
            
             
   
December 31, 2019
    
December 31, 2018
  
   
(Unaudited)
        
             
Liabilities, temporary equity, and stockholders' equity
            
Current liabilities:
            
  Notes payable to banks
  
$
2
    
$
18
  
  Trade accounts payable
    
173,915
      
218,322
  
  Payroll and related expenses
    
122,100
      
141,670
  
  Lease liabilities
    
20,217
      
-
  
  Other accrued expenses
    
186,463
      
229,660
  
  Income taxes
    
17,731
      
54,436
  
Total current liabilities
    
520,428
      
644,106
  
                 
Long-term debt less current portion
    
499,147
      
494,509
  
U.S. transition tax payable
    
140,196
      
154,953
  
Deferred income taxes
    
22,021
      
85,471
  
Long-term lease liabilities
    
78,511
      
-
  
Other liabilities
    
100,207
      
79,489
  
Accrued pension and other postretirement costs
    
272,402
      
260,984
  
Total liabilities
    
1,632,912
      
1,719,512
  
                 
Redeemable convertible debentures
    
174
      
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
    
1,425,170
      
1,436,011
  
  Retained earnings (accumulated deficit)
    
72,180
      
(61,258
)
  Accumulated other comprehensive income (loss)
    
(26,646
)
    
(6,791
)
  Total Vishay stockholders' equity
    
1,485,149
      
1,382,384
  
Noncontrolling interests
    
2,540
      
2,286
  
Total equity
    
1,487,689
      
1,384,670
  
Total liabilities, temporary equity, and equity
  
$
3,120,775
    
$
3,106,198
  
                 


VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Statements of Cash Flows
            
(In thousands)
            
   
Years ended
  
   
December 31, 2019
    
December 31, 2018
  
   
(Unaudited)
        
Operating activities
            
Net earnings
  
$
164,790
    
$
346,537
  
Adjustments to reconcile net earnings to
                
    net cash provided by operating activities:
                
      Depreciation and amortization
    
164,461
      
161,863
  
      (Gain) loss on disposal of property and equipment
    
(157
)
    
(2,216
)
      Accretion of interest on convertible debt instruments
    
14,146
      
10,769
  
      Inventory write-offs for obsolescence
    
26,494
      
23,872
  
      Pensions and other postretirement benefits, net of contributions
    
(552
)
    
(1,549
)
      Loss on early extinguishment of debt
    
2,030
      
26,583
  
      Deferred income taxes
    
(23,009
)
    
(55,206
)
      Other
    
13,341
      
21,194
  
      Change in U.S. transition tax liability
    
(14,757
)
    
(14,757
)
      Change in repatriation tax liability
    
(38,814
)
    
(156,767
)
      Changes in operating assets and liabilities, net of effects of businesses acquired
    
(11,529
)
    
(101,817
)
Net cash provided by operating activities
    
296,444
      
258,506
  
                 
Investing activities
                
Purchase of property and equipment
    
(156,641
)
    
(229,899
)
Proceeds from sale of property and equipment
    
577
      
55,561
  
Purchase of businesses, net of cash acquired
    
(11,862
)
    
(14,880
)
Purchase of short-term investments
    
(111,631
)
    
(175,403
)
Maturity of short-term investments
    
81,012
      
636,108
  
Other investing activities
    
3,587
      
(2,058
)
Net cash provided by (used in) investing activities
    
(194,958
)
    
269,429
  
                 
Financing activities
                
Proceeds from long-term borrowings
    
-
      
600,000
  
Issuance costs
    
(5,394
)
    
(15,621
)
Repurchase of convertible debentures
    
(27,863
)
    
(960,995
)
Net proceeds (payments) on revolving credit lines
    
-
      
(150,000
)
Net changes in short-term borrowings
    
(16
)
    
15
  
Dividends paid to common stockholders
    
(48,968
)
    
(42,608
)
Dividends paid to Class B common stockholders
    
(4,476
)
    
(3,901
)
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
    
(90,025
)
    
(575,932
)
Effect of exchange rate changes on cash and cash equivalents
    
(3,360
)
    
(14,003
)
                 
Net increase (decrease) in cash and cash equivalents
    
8,101
      
(62,000
)
                 
Cash and cash equivalents at beginning of period
    
686,032
      
748,032
  
Cash and cash equivalents at end of period
  
$
694,133
    
$
686,032
  
                 


VISHAY INTERTECHNOLOGY, INC.
                              
Reconciliation of Adjusted Earnings Per Share
                          
(Unaudited - In thousands, except per share amounts)
                          
   
Fiscal quarters ended
    
Years ended
  
   
December 31, 2019
    
September 28, 2019
    
December 31, 2018
    
December 31, 2019
    
December 31, 2018
  
                               
GAAP net earnings attributable to Vishay stockholders
  
$
13,962
    
$
30,038
    
$
102,419
    
$
163,936
    
$
345,758
  
                                         
Reconciling items affecting operating income:
                                  
Restructuring and severance costs
  
$
16,884
    
$
7,255
    
$
-
    
$
24,139
    
$
-
  
                                         
Reconciling items affecting other income (expense):
                                  
Loss on early extinguishment of debt
  
$
723
    
$
-
    
$
9,274
    
$
2,030
    
$
26,583
  
                                         
Reconciling items affecting tax expense (benefit):
                                  
Effects of tax-basis foreign exchange gain
  
$
-
    
$
-
    
$
-
    
$
7,554
    
$
-
  
Enactment of TCJA
    
-
      
-
      
-

   
-
      
25,496
  
Effects of cash repatriation program
    
(11,554
)
    
2,604
      
(3,037
 )
   
(9,583
)
    
(10,047
)
Change in deferred taxes due to early extinguishment of debt
    
(289
)
    
-
      
(20,914
)
    
(1,601
)
    
(54,877
)
Effects of changes in uncertain tax positions
    
2,831
      
-
      
-
      
2,831
      
-
  
Tax effects of pre-tax items above
    
(4,277
)
    
(1,644
)
    
(2,028
)
    
(6,211
)
    
(5,812
)
                                         
Adjusted net earnings
  
$
18,280
    
$
38,253
    
$
85,714
    
$
183,095
    
$
327,101
  
                                         
Adjusted weighted average diluted shares outstanding
    
145,202
      
145,027
      
148,378
      
145,136
      
154,622
  
                                         
Adjusted earnings per diluted share
  
$
0.13
    
$
0.26
    
$
0.58
    
$
1.26
    
$
2.12
  
                                         


VISHAY INTERTECHNOLOGY, INC.
                          
Reconciliation of Free Cash
                              
(Unaudited - In thousands)
                              
   
Fiscal quarters ended
    
Years ended
  
   
December 31, 2019
    
September 28, 2019
    
December 31, 2018
    
December 31, 2019
    
December 31, 2018
  
Net cash provided by operating activities
  
$
84,423
    
$
76,202
    
$
149,615
    
$
296,444
    
$
258,506
  
Proceeds from sale of property and equipment
    
91
      
22
      
47,106
      
577
      
55,561
  
Less: Capital expenditures
    
(56,374
)
    
(30,119
)
    
(103,508
)
    
(156,641
)
    
(229,899
)
Free cash
  
$
28,140
    
$
46,105
    
$
93,213
    
$
140,380
    
$
84,168
  
                                         


VISHAY INTERTECHNOLOGY, INC.
                          
Reconciliation of EBITDA and Adjusted EBITDA
                    
(Unaudited - In thousands)
                              
   
Fiscal quarters ended
    
Years ended
  
   
December 31, 2019
    
September 28, 2019
    
December 31, 2018
    
December 31, 2019
    
December 31, 2018
  
                               
GAAP net earnings attributable to Vishay stockholders
  
$
13,962
    
$
30,038
    
$
102,419
    
$
163,936
    
$
345,758
  
Net earnings attributable to noncontrolling interests
    
187
      
227
      
240
      
854
      
779
  
Net earnings
  
$
14,149
    
$
30,265
    
$
102,659
    
$
164,790
    
$
346,537
  
                                         
Interest expense
  
$
8,523
    
$
8,564
    
$
9,818
    
$
33,683
    
$
36,680
  
Interest income
    
(1,734
)
    
(2,365
)
    
(3,638
)
    
(8,445
)
    
(11,940
)
Income taxes
    
(2,869
)
    
13,917
      
(2,269
)
    
61,508
      
70,239
  
Depreciation and amortization
    
42,159
      
40,956
      
39,975
      
164,461
      
161,863
  
EBITDA
  
$
60,228
    
$
91,337
    
$
146,545
    
$
415,997
    
$
603,379
  
                                         
Reconciling items
                                        
Restructuring and severance costs
  
$
16,884
    
$
7,255
    
$
-
    
$
24,139
    
$
-
  
Loss on early extinguishment of debt
    
723
      
-
      
9,274
      
2,030
      
26,583
  
                                         
Adjusted EBITDA
  
$
77,835
    
$
98,592
    
$
155,819
    
$
442,166
    
$
629,962
  
                                         
Adjusted EBITDA margin**
    
12.8
%
    
15.7
%
    
20.1
%
    
16.6
%
    
20.8
%
                                         
** Adjusted EBITDA as a percentage of net revenues