Date of Report (Date of earliest event reported) November 1, 2011
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Vishay Intertechnology, Inc.
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(Exact name of registrant as specified in its charter)
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Delaware
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1-7416
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38-1686453
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(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification Number)
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63 Lancaster Avenue
Malvern, PA 19355-2143
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19355-2143
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(Address of Principal Executive Offices)
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Zip Code
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Registrant’s telephone number, including area code 610-644-1300
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(Former name or former address, if changed since last report.)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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·
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The Company has approximately 157 million shares issued and outstanding, including shares of common stock and class B common stock.
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The number of shares included in diluted EPS related to options, warrants, and similar instruments does not vary significantly and is generally less than 1 million incremental shares.
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·
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The Company’s exchangeable unsecured notes due 2102 are dilutive at quarterly earnings levels in excess of approximately $2 million. The exchangeable unsecured notes are exchangeable for approximately 6 million shares. Quarterly interest, net of tax, is approximately $0.1 million.
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·
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The Company’s Convertible Senior Debentures due 2040 are convertible at a conversion price of $13.88 per $1,000 principal amount, equivalent to 72.0331 shares per $1,000 principal amount. There is $275 million principal amount of the debentures outstanding. The number of shares of common stock that Vishay will include in its diluted earnings per share computation, assuming an average market price for Vishay common stock in excess of the conversion price, will be determined in accordance with the following formula:
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·
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The Company’s Convertible Senior Debentures due 2041 are convertible at a conversion price of $19.02 per $1,000 principal amount, equivalent to 52.5659 shares per $1,000 principal amount. There is $150 million principal amount of the debentures outstanding. The number of shares of common stock that Vishay will include in its diluted earnings per share computation, assuming an average market price for Vishay common stock in excess of the conversion price, will be determined in accordance with the following formula:
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Average Stock Price
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Projected Diluted Shares
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||||||
$ | 6.00 | 164 | |||||
$ | 7.00 | 164 | |||||
$ | 8.00 | 164 | |||||
$ | 9.00 | 164 | |||||
$ | 10.00 | 164 | |||||
$ | 11.00 | 164 | |||||
$ | 12.00 | 164 | |||||
$ | 13.00 | 164 | |||||
$ | 14.00 | 164 | |||||
$ | 15.00 | 165 | |||||
$ | 16.00 | 167 | |||||
$ | 17.00 | 168 | |||||
$ | 18.00 | 168 | |||||
$ | 19.00 | 170 | |||||
$ | 20.00 | 171 | |||||
$ | 21.00 | 172 | |||||
VISHAY INTERTECHNOLOGY, INC.
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By:
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/s/ Lori Lipcaman
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Name:
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Lori Lipcaman
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Title:
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Executive Vice President and
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Chief Financial Officer
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·
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Revenues for Q3 2011 of $638 million
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·
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EPS Q3 2011 of $0.31, or $0.32 excluding one-time executive compensation charge
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·
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Cash from operations for YTD September 2011 of $288 million and capital expenditures of $90 million
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·
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Continues to pursue recently announced growth plan of intensified internal growth through product innovation and expanded capacities supplemented by acquisitions despite macroeconomic uncertainty
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VISHAY INTERTECHNOLOGY, INC.
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Summary of Operations
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(Unaudited - In thousands, except per share amounts)
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Fiscal quarters ended
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October 1,
2011
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July 2,
2011
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October 2,
2010
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Net revenues
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$ | 637,649 | $ | 709,838 | $ | 694,365 | ||||||
Costs of products sold
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470,172 | 497,648 | 475,987 | |||||||||
Gross profit
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167,477 | 212,190 | 218,378 | |||||||||
Gross margin
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26.3 | % | 29.9 | % | 31.5 | % | ||||||
Selling, general, and administrative expenses
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90,271 | 92,796 | 87,475 | |||||||||
Executive compensation charges
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1,873 | 3,889 | - | |||||||||
Operating income
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75,333 | 115,505 | 130,903 | |||||||||
Operating margin
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11.8 | % | 16.3 | % | 18.9 | % | ||||||
Other income (expense):
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||||||||||||
Interest expense
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(5,311 | ) | (4,624 | ) | (2,545 | ) | ||||||
Other
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1,790 | (28 | ) | (4,716 | ) | |||||||
Total other income (expense) - net
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(3,521 | ) | (4,652 | ) | (7,261 | ) | ||||||
Income before taxes
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71,812 | 110,853 | 123,642 | |||||||||
Income taxes
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21,120 | 28,357 | 33,490 | |||||||||
Net earnings
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50,692 | 82,496 | 90,152 | |||||||||
Less: net earnings attributable to noncontrolling interests
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205 | 401 | 353 | |||||||||
Net earnings attributable to Vishay stockholders
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$ | 50,487 | $ | 82,095 | $ | 89,799 | ||||||
Basic earnings per share attributable to Vishay stockholders
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$ | 0.32 | $ | 0.51 | $ | 0.48 | ||||||
Diluted earnings per share attributable to Vishay stockholders
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$ | 0.31 | $ | 0.48 | $ | 0.47 | ||||||
Weighted average shares outstanding - basic
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157,149 | 160,801 | 186,648 | |||||||||
Weighted average shares outstanding - diluted
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163,808 | 170,645 | 193,062 |
Summary of Operations
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(Unaudited - In thousands, except per share amounts)
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Nine fiscal months ended
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October 1,
2011
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October 2,
2010
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Net revenues*
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$ | 2,042,638 | $ | 2,036,480 | ||||
Costs of products sold
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1,448,308 | 1,440,496 | ||||||
Gross profit
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594,330 | 595,984 | ||||||
Gross margin
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29.1 | % | 29.3 | % | ||||
Selling, general, and administrative expenses
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275,532 | 298,629 | ||||||
Executive compensation charges
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5,762 | - | ||||||
Operating income
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313,036 | 297,355 | ||||||
Operating margin
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15.3 | % | 14.6 | % | ||||
Other income (expense):
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Interest expense
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(13,989 | ) | (7,379 | ) | ||||
Other
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1,255 | 1,284 | ||||||
Total other income (expense) - net
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(12,734 | ) | (6,095 | ) | ||||
Income before taxes
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300,302 | 291,260 | ||||||
Income taxes
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91,507 | 78,504 | ||||||
Net earnings
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208,795 | 212,756 | ||||||
Less: net earnings attributable to noncontrolling interests
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926 | 878 | ||||||
Net earnings attributable to Vishay stockholders*
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$ | 207,869 | $ | 211,878 | ||||
Basic earnings per share attributable to Vishay stockholders
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$ | 1.29 | $ | 1.14 | ||||
Diluted earnings per share attributable to Vishay stockholders
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$ | 1.22 | $ | 1.10 | ||||
Weighted average shares outstanding - basic
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161,061 | 186,652 | ||||||
Weighted average shares outstanding - diluted
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170,039 | 193,080 | ||||||
* VPG net revenues included in Vishay Intertechnology, Inc. consolidated results were $101.1 million for the nine fiscal months ended October 2, 2010. VPG earnings included in net earnings attributable to Vishay stockholders were $5.8 million for the nine fiscal months ended October 2, 2010.
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VISHAY INTERTECHNOLOGY, INC.
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Consolidated Condensed Balance Sheets
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(In thousands)
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October 1,
2011
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December 31,
2010
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Assets
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(unaudited)
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Current assets:
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Cash and cash equivalents
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$ | 705,061 | $ | 897,338 | ||||
Short-term investments
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329,912 | - | ||||||
Accounts receivable, net
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296,951 | 330,556 | ||||||
Inventories:
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Finished goods
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113,989 | 109,762 | ||||||
Work in process
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192,201 | 178,844 | ||||||
Raw materials
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150,916 | 139,216 | ||||||
Total inventories
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457,106 | 427,822 | ||||||
Deferred income taxes
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32,545 | 31,903 | ||||||
Prepaid expenses and other current assets
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152,064 | 106,885 | ||||||
Total current assets
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1,973,639 | 1,794,504 | ||||||
Property and equipment, at cost:
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Land
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93,612 | 93,020 | ||||||
Buildings and improvements
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490,364 | 477,518 | ||||||
Machinery and equipment
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2,089,682 | 2,025,793 | ||||||
Construction in progress
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73,256 | 75,051 | ||||||
Allowance for depreciation
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(1,857,498 | ) | (1,759,268 | ) | ||||
889,416 | 912,114 | |||||||
Goodwill
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9,525 | - | ||||||
Other intangible assets, net
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107,889 | 113,830 | ||||||
Other assets
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137,816 | 145,645 | ||||||
Total assets
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$ | 3,118,285 | $ | 2,966,093 |
VISHAY INTERTECHNOLOGY, INC.
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Consolidated Condensed Balance Sheets (continued)
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(In thousands)
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October 1,
2011
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December 31,
2010
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(unaudited)
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Liabilities and stockholders' equity
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Current liabilities:
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Notes payable to banks
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$ | 50 | $ | 23 | ||||
Trade accounts payable
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150,802 | 167,795 | ||||||
Payroll and related expenses
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118,084 | 122,234 | ||||||
Other accrued expenses
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169,808 | 186,049 | ||||||
Income taxes
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65,017 | 51,060 | ||||||
Total current liabilities
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503,761 | 527,161 | ||||||
Long-term debt less current portion
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423,440 | 431,682 | ||||||
Deferred income taxes
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125,125 | 82,043 | ||||||
Deferred grant income
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2,348 | 2,788 | ||||||
Other liabilities
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127,948 | 134,152 | ||||||
Accrued pension and other postretirement costs
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282,623 | 291,117 | ||||||
Total liabilities
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1,465,245 | 1,468,943 | ||||||
Equity:
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Vishay stockholders' equity
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Common stock
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14,373 | 15,061 | ||||||
Class B convertible common stock
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1,345 | 1,435 | ||||||
Capital in excess of par value
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2,085,742 | 2,156,981 | ||||||
Retained earnings (accumulated deficit)
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(534,368 | ) | (742,237 | ) | ||||
Accumulated other comprehensive income
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80,103 | 60,491 | ||||||
Total Vishay stockholders' equity
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1,647,195 | 1,491,731 | ||||||
Noncontrolling interests
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5,845 | 5,419 | ||||||
Total equity
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1,653,040 | 1,497,150 | ||||||
Total liabilities and equity
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$ | 3,118,285 | $ | 2,966,093 |
VISHAY INTERTECHNOLOGY, INC.
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Consolidated Condensed Statements of Cash Flows
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(Unaudited - In thousands)
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Nine fiscal months ended
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October 1,
2011
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October 2,
2010
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Continuing operating activities
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Net earnings
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$ | 208,795 | $ | 212,756 | ||||
Adjustments to reconcile net earnings (loss) to
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net cash provided by continuing operating activities:
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Depreciation and amortization
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136,406 | 143,789 | ||||||
(Gain) loss on disposal of property and equipment
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(1,073 | ) | 176 | |||||
Accretion of interest on convertible debentures
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1,448 | - | ||||||
Inventory write-offs for obsolescence
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15,434 | 17,022 | ||||||
Deferred grant income
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(351 | ) | (426 | ) | ||||
Other
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12,943 | 44,081 | ||||||
Changes in operating assets and liabilities,
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net of effects of businesses acquired or spun-off
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(85,827 | ) | (78,265 | ) | ||||
Net cash provided by continuing operating activities
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287,775 | 339,133 | ||||||
Continuing investing activities
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Purchase of property and equipment
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(89,708 | ) | (80,079 | ) | ||||
Proceeds from sale of property and equipment
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1,956 | 725 | ||||||
Purchase of businesses, net of cash acquired or refunded
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(19,335 | ) | - | |||||
Purchase of short-term investments
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(497,258 | ) | - | |||||
Maturity of short-term investments
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158,785 | - | ||||||
Proceeds from loans receivable
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- | 15,000 | ||||||
Other investing activities
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2,472 | (1,355 | ) | |||||
Net cash used in continuing investing activities
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(443,088 | ) | (65,709 | ) | ||||
Continuing financing activities
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Proceeds of long-term borrowings
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150,000 | - | ||||||
Issuance costs
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(4,429 | ) | (456 | ) | ||||
Common stock repurchase
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(150,000 | ) | - | |||||
Principal payments on long-term debt and capital lease obligations
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(670 | ) | (25,998 | ) | ||||
Net payments on revolving credit lines
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(60,000 | ) | - | |||||
Net changes in short-term borrowings
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28 | 511 | ||||||
Proceeds from stock options exercised
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9,675 | - | ||||||
Excess tax benefit from stock options exercised
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555 | - | ||||||
Distributions to noncontrolling interests
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(500 | ) | (757 | ) | ||||
Distribution in connection with spin-off of VPG
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- | (70,600 | ) | |||||
Net cash used in continuing financing activities
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(55,341 | ) | (97,300 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents
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18,377 | (9,860 | ) | |||||
Net (decrease) increase in cash and cash equivalents
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from continuing activities
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(192,277 | ) | 166,264 | |||||
Net cash used in discontinued operating activities
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- | (82 | ) | |||||
Net cash used in discontinued investing activities
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- | - | ||||||
Net cash used in discontinued financing activities
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- | - | ||||||
Net cash used in discontinued operations
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- | (82 | ) | |||||
Net (decrease) increase in cash and cash equivalents
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(192,277 | ) | 166,182 | |||||
Cash and cash equivalents at beginning of period
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897,338 | 579,189 | ||||||
Cash and cash equivalents at end of period
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$ | 705,061 | $ | 745,371 |
Reconciliation of Adjusted Earnings Per Share
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(Unaudited - In thousands, except per share amounts)
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Fiscal quarters ended
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Nine fiscal months ended
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October 1,
2011
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July 2,
2011
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October 2,
2010
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October 1,
2011
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October 2,
2010
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GAAP net earnings attributable to Vishay stockholders
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$ | 50,487 | $ | 82,095 | $ | 89,799 | $ | 207,869 | $ | 211,878 | ||||||||||
Reconciling items affecting operating margin:
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Executive compensation charges
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$ | 1,873 | $ | 3,889 | $ | - | $ | 5,762 | $ | - | ||||||||||
Reconciling items affecting tax expense (benefit):
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Tax effects of items above and other one-time tax expense (benefit)
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$ | (684 | ) | $ | (1,419 | ) | $ | - | $ | 7,921 | $ | - | ||||||||
Adjusted net earnings
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$ | 51,676 | $ | 84,565 | $ | 89,799 | $ | 221,552 | $ | 211,878 | ||||||||||
Adjusted weighted average diluted shares outstanding
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163,808 | 170,645 | 193,062 | 170,039 | 193,080 | |||||||||||||||
Adjusted earnings per diluted share**
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$ | 0.32 | $ | 0.50 | $ | 0.47 | $ | 1.30 | $ | 1.10 | ||||||||||
** Includes add-back of interest on exchangeable notes in periods where the notes are dilutive.
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