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



Vishay Intertechnology Reports Third Quarter 2023 Results


Malvern, PA, November 8, 2023 – Vishay Intertechnology, Inc., (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive electronic components, today announced results for the fiscal third quarter ended September 30, 2023.

Highlights
•
3Q 2023 revenues of $853.7 million
•
3Q 2023 EPS of $0.47; adjusted EPS of $0.60
•
3Q 2023 book-to-bill of 0.63
•
Backlog at quarter end was 5.5 months
•
Returned a total of $31.1 million to stockholders

“During the third quarter, as expected, revenue decreased from the second quarter on inventory adjustments by our distribution and EMS customers in response to softened demand in industrial markets and contracting lead times.  Nevertheless, we once again intentionally increased inventory with our distribution partners as we continued to execute our strategy of broadening our participation in this higher margin channel.  The capacity readiness activities we have underway are increasing our value to the distribution channel and reliably supporting our accelerating design activities related to the megatrends of e-mobility, sustainability and connectivity,” said Joel Smejkal, President and Chief Executive Officer. “In addition, as announced separately today, we have signed a purchase agreement to acquire Newport wafer fab which will accelerate our plan to scale manufacturing and advance the technology differentiation of our silicon carbide MOSFETs.”

4Q 2023 Outlook
For the fourth quarter of 2023, management expects revenues in the range of $770 million and $810 million and a gross profit margin in the range of 25.5% +/- 50 basis points.

Conference Call
A conference call to discuss Vishay’s third quarter financial results is scheduled for Wednesday, November 8, 2023 at 9:00 a.m. ET. To participate in the live conference call, please pre-register at https://register.vevent.com/register/BI4d27675bed8e4ca8934830406b6e87c1. Upon registering, you will be emailed a dial-in number, and unique PIN.

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 available on the Investor Relations website approximately one hour following the call and will remain available for 30 days.



About Vishay
Vishay manufactures one of the world’s largest portfolios of discrete semiconductors and passive electronic components that are essential to innovative designs in the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets. Serving customers worldwide, Vishay is The DNA of tech.™ Vishay Intertechnology, Inc. is a Fortune 1,000 Company listed on the NYSE (VSH). More on Vishay 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 gross margin; 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 gross margin, 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 gross margin, 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 forecasted revenues and margins, capital investment, capacity expansion, stockholder returns, 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 and expressions such as “guide,” “will,” “expect,” 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; manufacturing or supply chain interruptions or changes in customer demand because of COVID-19 or otherwise (including due to political, economic, and health instability and military conflicts and hostilities); 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; the timing of the Newport wafer fab acquisition; that the Newport wafer fab acquisition may not be consummated, including as a result of any of the conditions precedent (including the failure to obtain any required approvals or consents, or the exercise of certain third party purchase rights); global market downturn conditions and volatilities impacting the completion of the acquisition; that the fab will not be integrated successfully into the Company’s overall business; that the expected benefits of the acquisition may not be realized; that the fab’s standards, procedures and controls will not be brought into conformance within the Company’s operation; difficulties in transitioning and retaining fab employees following the acquisition; difficulties in consolidating facilities and transferring processes and know-how; the diversion of our management’s attention from the management of our current business; 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.

The DNA of tech® is a trademark of Vishay Intertechnology.

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




VISHAY INTERTECHNOLOGY, INC.
                  
Summary of Operations
                  
(Unaudited - In thousands, except per share amounts)
                  
                   
   
Fiscal quarters ended
  
   
September 30, 2023
    
July 1, 2023
    
October 1, 2022
  
                   
Net revenues
  
$
853,653
    
$
892,110
    
$
924,798
  
Costs of products sold
    
616,010
      
634,637
      
635,260
  
Gross profit
    
237,643
      
257,473
      
289,538
  
  Gross margin
    
27.8
%
    
28.9
%
    
31.3
%
                         
Selling, general, and administrative expenses
    
122,513
      
122,857
      
106,436
  
Operating income
    
115,130
      
134,616
      
183,102
  
  Operating margin
    
13.5
%
    
15.1
%
    
19.8
%
                         
Other income (expense):
                        
  Interest expense
    
(7,153
)
    
(6,404
)
    
(4,110
)
  Loss on early extinguishment of debt
    
(18,874
)
    
-
      
-
  
  Other
    
7,409
      
5,257
      
2,137
  
  Total other income (expense) - net
    
(18,618
)
    
(1,147
)
    
(1,973
)
                         
Income before taxes
    
96,512
      
133,469
      
181,129
  
                         
Income tax expense
    
30,557
      
38,054
      
40,566
  
                         
Net earnings
    
65,955
      
95,415
      
140,563
  
                         
Less: net earnings attributable to noncontrolling interests
    
426
      
377
      
502
  
                         
Net earnings attributable to Vishay stockholders
  
$
65,529
    
$
95,038
    
$
140,061
  
                         
Basic earnings per share attributable to Vishay stockholders
  
$
0.47
    
$
0.68
    
$
0.98
  
                         
Diluted earnings per share attributable to Vishay stockholders
  
$
0.47
    
$
0.68
    
$
0.98
  
                         
Weighted average shares outstanding - basic
    
139,083
      
139,764
      
142,887
  
                         
Weighted average shares outstanding - diluted
    
140,001
      
140,478
      
143,447
  
                         
Cash dividends per share
  
$
0.10
    
$
0.10
    
$
0.10
  

VISHAY INTERTECHNOLOGY, INC.
            
Summary of Operations
            
(Unaudited - In thousands, except per share amounts)
            
             
   
Nine fiscal months ended
  
   
September 30, 2023
    
October 1, 2022
  
             
Net revenues
  
$
2,616,809
    
$
2,642,103
  
Costs of products sold*
    
1,842,980
      
1,832,234
  
Gross profit
    
773,829
      
809,869
  
  Gross margin
    
29.6
%
    
30.7
%
                 
Selling, general, and administrative expenses*
    
365,515
      
329,691
  
Operating income
    
408,314
      
480,178
  
  Operating margin
    
15.6
%
    
18.2
%
                 
Other income (expense):
                
  Interest expense
    
(18,677
)
    
(12,639
)
  Loss on early extinguishment of debt
    
(18,874
)
    
-
  
  Other
    
15,995
      
(2,234
)
  Total other income (expense) - net
    
(21,556
)
    
(14,873
)
                 
Income before taxes
    
386,758
      
465,305
  
                 
Income tax expense
    
113,199
      
108,023
  
                 
Net earnings
    
273,559
      
357,282
  
                 
Less: net earnings attributable to noncontrolling interests
    
1,211
      
1,260
  
                 
Net earnings attributable to Vishay stockholders
  
$
272,348
    
$
356,022
  
                 
Basic earnings per share attributable to Vishay stockholders
  
$
1.95
    
$
2.47
  
                 
Diluted earnings per share attributable to Vishay stockholders
  
$
1.94
    
$
2.46
  
                 
Weighted average shares outstanding - basic
    
139,828
      
143,983
  
                 
Weighted average shares outstanding - diluted
    
140,577
      
144,470
  
                 
Cash dividends per share
  
$
0.30
    
$
0.30
  
                 
* The nine fiscal months ended October 1, 2022 includes incremental costs of products sold and selling, general, and administrative expenses separable from normal operations directly attributable to the COVID-19 pandemic of $6,661 and $546, respectively.
  
VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Balance Sheets
            
(In thousands)
            
             
   
September 30, 2023
    
December 31, 2022
  
   
(Unaudited)
        
Assets
            
Current assets:
            
  Cash and cash equivalents
  
$
1,095,119
    
$
610,825
  
  Short-term investments
    
78,994
      
305,272
  
  Accounts receivable, net
    
442,646
      
416,178
  
  Inventories:
                
    Finished goods
    
165,936
      
156,234
  
    Work in process
    
271,107
      
261,345
  
    Raw materials
    
206,499
      
201,300
  
  Total inventories
    
643,542
      
618,879
  
                 
  Prepaid expenses and other current assets
    
179,825
      
170,056
  
Total current assets
    
2,440,126
      
2,121,210
  
                 
Property and equipment, at cost:
                
  Land
    
76,139
      
75,907
  
  Buildings and improvements
    
692,037
      
658,829
  
  Machinery and equipment
    
2,973,943
      
2,857,636
  
  Construction in progress
    
226,460
      
243,038
  
  Allowance for depreciation
    
(2,788,393
)
    
(2,704,951
)
     
1,180,186
      
1,130,459
  
                 
Right of use assets
    
127,992
      
131,193
  
Deferred income taxes
    
128,109
      
104,667
  
Goodwill
    
200,895
      
201,432
  
Other intangible assets, net
    
72,126
      
77,896
  
Other assets
    
91,773
      
98,796
  
     Total assets
  
$
4,241,207
    
$
3,865,653
  

VISHAY INTERTECHNOLOGY, INC.
           
Consolidated Condensed Balance Sheets (continued)
            
(In thousands)
            
             
   
September 30, 2023
    
December 31, 2022
  
   
(Unaudited)
        
             
Liabilities and equity
            
Current liabilities:
            
  Trade accounts payable
  
$
207,440
    
$
189,099
  
  Payroll and related expenses
    
162,113
      
166,079
  
  Lease liabilities
    
26,097
      
25,319
  
  Other accrued expenses
    
238,565
      
261,606
  
  Income taxes
    
82,734
      
84,155
  
Total current liabilities
    
716,949
      
726,258
  
                 
Long-term debt less current portion
    
817,257
      
500,937
  
U.S. transition tax payable
    
47,027
      
83,010
  
Deferred income taxes
    
138,628
      
117,183
  
Long-term lease liabilities
    
103,223
      
108,493
  
Other liabilities
    
92,896
      
92,530
  
Accrued pension and other postretirement costs
    
182,704
      
187,092
  
Total liabilities
    
2,098,684
      
1,815,503
  
                 
Equity:
                
Vishay stockholders' equity
                
  Common stock
    
13,318
      
13,291
  
  Class B convertible common stock
    
1,210
      
1,210
  
  Capital in excess of par value
    
1,286,568
      
1,352,321
  
  Retained earnings
    
1,003,700
      
773,228
  
  Treasury stock (at cost)
    
(140,633
)
    
(82,972
)
  Accumulated other comprehensive income (loss)
    
(25,883
)
    
(10,827
)
  Total Vishay stockholders' equity
    
2,138,280
      
2,046,251
  
Noncontrolling interests
    
4,243
      
3,899
  
Total equity
    
2,142,523
      
2,050,150
  
Total liabilities and equity
  
$
4,241,207
    
$
3,865,653
  

VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Statements of Cash Flows
            
(Unaudited - In thousands)
            
   
Nine fiscal months ended
  
   
September 30, 2023
    
October 1, 2022
  
             
Operating activities
            
Net earnings
  
$
273,559
    
$
357,282
  
Adjustments to reconcile net earnings to net cash provided by operating activities:
          
      Depreciation and amortization
    
133,910
      
121,301
  
      (Gain) loss on disposal of property and equipment
    
(495
)
    
(372
)
      Inventory write-offs for obsolescence
    
27,469
      
18,197
  
      Stock compensation expense
    
11,610
      
5,717
  
      Loss on early extinguishment of debt
    
18,874
      
-
  
      Deferred income taxes
    
20,654
      
8,843
  
      Other
    
7,574
      
(1,445
)
      Change in U.S. transition tax liability
    
(27,670
)
    
(14,757
)
      Change in repatriation tax liability
    
-
      
(25,201
)
      Changes in operating assets and liabilities
    
(106,050
)
    
(151,773
)
Net cash provided by operating activities
    
359,435
      
317,792
  
                 
Investing activities
                
Purchase of property and equipment
    
(184,079
)
    
(172,175
)
Proceeds from sale of property and equipment
    
1,034
      
472
  
Purchase of businesses, net of cash acquired
    
(5,003
)
    
-
  
Purchase of short-term investments
    
(82,166
)
    
(182,079
)
Maturity of short-term investments
    
308,021
      
132,892
  
Other investing activities
    
(1,219
)
    
(199
)
Net cash provided by (used in) investing activities
    
36,588
      
(221,089
)
                 
Financing activities
                
Proceeds from long-term borrowings
    
750,000
      
-
  
Repurchase of convertible senior notes due 2025
    
(386,745
)
    
-
  
Net payments on revolving credit facility
    
(42,000
)
    
-
  
Debt issuance costs
    
(26,547
)
    
-
  
Cash paid for capped call
    
(94,200
)
    
-
  
Dividends paid to common stockholders
    
(38,207
)
    
(39,433
)
Dividends paid to Class B common stockholders
    
(3,629
)
    
(3,629
)
Repurchase of common stock held in treasury
    
(57,661
)
    
(54,671
)
Distributions to noncontrolling interests
    
(867
)
    
(741
)
Cash withholding taxes paid when shares withheld for vested equity awards
    
(3,994
)
    
(2,123
)
Net cash provided by (used in) financing activities
    
96,150
      
(100,597
)
Effect of exchange rate changes on cash and cash equivalents
    
(7,879
)
    
(35,222
)
                 
Net increase (decrease) in cash and cash equivalents
    
484,294
      
(39,116
)
                 
Cash and cash equivalents at beginning of period
    
610,825
      
774,108
  
Cash and cash equivalents at end of period
  
$
1,095,119
    
$
734,992
  

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, 2023
    
July 1, 2023
    
October 1, 2022
    
September 30, 2023
    
October 1, 2022
  
                               
GAAP net earnings attributable to Vishay stockholders
  
$
65,529
    
$
95,038
    
$
140,061
    
$
272,348
    
$
356,022
  
                                         
Reconciling items affecting gross profit:
                                        
Impact of the COVID-19 pandemic
  
$
-
    
$
-
    
$
-
    
$
-
    
$
6,661
  
                                         
Other reconciling items affecting operating income:
                                  
Impact of the COVID-19 pandemic
  
$
-
    
$
-
    
$
-
    
$
-
    
$
546
  
                                         
Reconciling items affecting other income (expense):
                                  
Loss on early extinguishment of debt
  
$
18,874
    
$
-
    
$
-
    
$
18,874
    
$
-
  
                                         
Reconciling items affecting tax expense (benefit):
                                  
Effect of changes in uncertain tax positions
  
$
-
    
$
-
    
$
(5,941
)
  
$
-
    
$
(5,941
)
Tax effects of pre-tax items above
    
(498
)
    
-
      
-
      
(498
)
    
(1,802
)
                                         
Adjusted net earnings
  
$
83,905
    
$
95,038
    
$
134,120
    
$
290,724
    
$
355,486
  
                                         
Adjusted weighted average diluted shares outstanding
    
140,001
      
140,478
      
143,447
      
140,577
      
144,470
  
                                         
Adjusted earnings per diluted share
  
$
0.60
    
$
0.68
    
$
0.93
    
$
2.07
    
$
2.46
  

VISHAY INTERTECHNOLOGY, INC.
                          
Reconciliation of Free Cash
                              
(Unaudited - In thousands)
                              
   
Fiscal quarters ended
    
Nine fiscal months ended
  
   
September 30, 2023
    
July 1, 2023
    
October 1, 2022
    
September 30, 2023
    
October 1, 2022
  
Net cash provided by operating activities
  
$
122,303
      
107,239
      
209,480
    
$
359,435
    
$
317,792
  
Proceeds from sale of property and equipment
    
21
      
687
      
95
      
1,034
      
472
  
Less: Capital expenditures
    
(66,829
)
    
(71,676
)
    
(76,475
)
    
(184,079
)
    
(172,175
)
Free cash
  
$
55,495
    
$
36,250
    
$
133,100
    
$
176,390
    
$
146,089
  


VISHAY INTERTECHNOLOGY, INC.
                              
Reconciliation of EBITDA and Adjusted EBITDA
                          
(Unaudited - In thousands)
                              
   
Fiscal quarters ended
    
Nine fiscal months ended
  
   
September 30, 2023
    
July 1, 2023
    
October 1, 2022
    
September 30, 2023
    
October 1, 2022
  
                               
GAAP net earnings attributable to Vishay stockholders
  
$
65,529
    
$
95,038
    
$
140,061
    
$
272,348
    
$
356,022
  
Net earnings attributable to noncontrolling interests
    
426
      
377
      
502
      
1,211
      
1,260
  
Net earnings
  
$
65,955
    
$
95,415
    
$
140,563
    
$
273,559
    
$
357,282
  
                                         
Interest expense
  
$
7,153
    
$
6,404
    
$
4,110
    
$
18,677
    
$
12,639
  
Interest income
    
(9,183
)
    
(6,292
)
    
(1,836
)
    
(21,419
)
    
(3,186
)
Income taxes
    
30,557
      
38,054
      
40,566
      
113,199
      
108,023
  
Depreciation and amortization
    
46,216
      
44,393
      
40,334
      
133,910
      
121,301
  
EBITDA
  
$
140,698
    
$
177,974
    
$
223,737
    
$
517,926
    
$
596,059
  
                                         
Reconciling items
                                        
Impact of the COVID-19 pandemic
  
$
-
    
$
-
    
$
-
    
$
-
    
$
7,207
  
Loss on early extinguishment of debt
    
18,874
      
-
      
-
      
18,874
      
-
  
                                         
Adjusted EBITDA
  
$
159,572
    
$
177,974
    
$
223,737
    
$
536,800
    
$
603,266
  
                                         
Adjusted EBITDA margin**
    
18.7
%
    
19.9
%
    
24.2
%
    
20.5
%
    
22.8
%
                                         
** Adjusted EBITDA as a percentage of net revenues