• Vishay Intertechnology Reports Second Quarter 2024 Results

    Source: Nasdaq GlobeNewswire / 07 Aug 2024 06:15:00   America/Chicago

    MALVERN, Pa., Aug. 07, 2024 (GLOBE NEWSWIRE) -- 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 second quarter ended June 29, 2024.

    Highlights

    • 2Q 2024 revenues of $741.2 million
    • Gross margin was 22.0% and included the negative impact of approximately 170 basis points related to the addition of Newport
    • EPS of $0.17
    • 2Q 2024 book-to-bill of 0.86 with book-to-bill of 0.82 for semiconductors and 0.90 for passive components
    • Backlog at quarter end was 4.6 months

    “During the second quarter, we executed well on our Vishay 3.0 strategic plan, deepening our customer engagements supported by capacity that has landed and that we will continue to expand, and advancing our silicon carbide strategy as we prepare for the megatrends in sustainability and e-mobility,” said Joel Smejkal, President and CEO. “Revenue, including a full quarter of Newport, was flat quarter over quarter, primarily reflecting schedule agreement adjustments by automotive Tier 1 customers. At mid-year 2024, it is apparent that the industry recovery is taking longer than we had expected at the beginning of the year. As a result, we are adjusting the timetable of the Itzehoe, Germany expansion project beyond 2024 while holding to our planned capital investment of $2.6 billion between 2023 and 2028. For 2024, we now plan to invest between $360 million to $390 million in capex.”

    3Q 2024 Outlook
    For the third quarter of 2024, management expects revenues in the range of $745 million +/- $20 million, with gross profit margin in the range of 21.0% +/- 50 basis points, including the negative impact of approximately 175 to 200 basis points from the addition of Newport.

    A conference call to discuss Vishay’s second quarter financial results is scheduled for Wednesday, August 7, 2024 at 9:00 a.m. ET. To participate in the live conference call, please pre-register at https://register.vevent.com/register/BI38004aee85364014b94cacc38200c3f4. 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 free cash; earnings before interest, taxes, depreciation and amortization ("EBITDA"); and 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 free cash, EBITDA, and 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. The calculations of these measures 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 "intend," "suggest," "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 (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; that the Newport wafer 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 
     June 29, 2024 March 30, 2024 July 1, 2023 
           
    Net revenues$741,239  $746,279  $892,110  
    Costs of products sold 578,369   575,872   634,637  
    Gross profit 162,870   170,407   257,473  
    Gross margin 22.0%  22.8%  28.9% 
           
    Selling, general, and administrative expenses 124,953   127,736   122,857  
    Operating income 37,917   42,671   134,616  
    Operating margin 5.1%  5.7%  15.1% 
           
    Other income (expense):      
    Interest expense (6,657)  (6,496)  (6,404) 
    Other 5,011   8,087   5,257  
    Total other income (expense) - net (1,646)  1,591   (1,147) 
           
    Income before taxes 36,271   44,262   133,469  
           
    Income tax expense 12,391   12,819   38,054  
           
    Net earnings 23,880   31,443   95,415  
           
    Less: net earnings attributable to noncontrolling interests 347   519   377  
           
    Net earnings attributable to Vishay stockholders$23,533  $30,924  $95,038  
           
    Basic earnings per share attributable to Vishay stockholders$0.17  $0.22  $0.68  
           
    Diluted earnings per share attributable to Vishay stockholders$0.17  $0.22  $0.68  
           
    Weighted average shares outstanding - basic 137,326   137,726   139,764  
           
    Weighted average shares outstanding - diluted 138,084   138,476   140,478  
           
    Cash dividends per share$0.10  $0.10  $0.10  
           


    VISHAY INTERTECHNOLOGY, INC.    
    Summary of Operations    
    (Unaudited - In thousands, except per share amounts)    
         
     Six fiscal months ended 
     June 29, 2024 July 1, 2023 
         
    Net revenues$1,487,518  $1,763,156  
    Costs of products sold 1,154,241   1,226,970  
    Gross profit 333,277   536,186  
    Gross margin 22.4%  30.4% 
         
    Selling, general, and administrative expenses 252,689   243,002  
    Operating income 80,588   293,184  
    Operating margin 5.4%  16.6% 
         
    Other income (expense):    
    Interest expense (13,153)  (11,524) 
    Other 13,098   8,586  
    Total other income (expense) - net (55)  (2,938) 
         
    Income before taxes 80,533   290,246  
         
    Income tax expense 25,210   82,642  
         
    Net earnings 55,323   207,604  
         
    Less: net earnings attributable to noncontrolling interests 866   785  
         
    Net earnings attributable to Vishay stockholders$54,457  $206,819  
         
    Basic earnings per share attributable to Vishay stockholders$0.40  $1.48  
         
    Diluted earnings per share attributable to Vishay stockholders$0.39  $1.47  
         
    Weighted average shares outstanding - basic 137,525   140,201  
         
    Weighted average shares outstanding - diluted 138,279   140,865  
         
    Cash dividends per share$0.20  $0.20  
         


    VISHAY INTERTECHNOLOGY, INC.    
    Consolidated Condensed Balance Sheets    
    (Unaudited - In thousands)    
         
     June 29, 2024 December 31, 2023 
         
    Assets    
    Current assets:    
      Cash and cash equivalents$672,731  $972,719  
      Short-term investments 15,320   35,808  
      Accounts receivable, net 424,512   426,674  
      Inventories:    
        Finished goods 172,353   167,083  
        Work in process 280,490   267,339  
        Raw materials 218,480   213,098  
      Total inventories 671,323   647,520  
         
      Prepaid expenses and other current assets 213,331   214,443  
    Total current assets 1,997,217   2,297,164  
         
    Property and equipment, at cost:    
      Land 84,036   77,006  
      Buildings and improvements 752,194   719,387  
      Machinery and equipment 3,226,301   3,053,868  
      Construction in progress 283,024   290,593  
      Allowance for depreciation (2,888,004)  (2,846,208) 
      1,457,551   1,294,646  
         
    Right of use assets 124,878   126,829  
    Deferred income taxes 135,752   137,394  
    Goodwill 250,580   201,416  
    Other intangible assets, net 86,895   72,333  
    Other assets 99,828   110,141  
         Total assets$4,152,701  $4,239,923  
         


    VISHAY INTERTECHNOLOGY, INC.    
    Consolidated Condensed Balance Sheets (continued)   
    (Unaudited - In thousands)    
         
     June 29, 2024 December 31, 2023 
         
    Liabilities and equity    
    Current liabilities:    
      Trade accounts payable$198,527  $191,002  
      Payroll and related expenses 152,423   161,940  
      Lease liabilities 27,502   26,485  
      Other accrued expenses 241,961   239,350  
      Income taxes 49,546   73,098  
    Total current liabilities 669,959   691,875  
         
    Long-term debt less current portion 820,622   818,188  
    U.S. transition tax payable -   47,027  
    Deferred income taxes 108,886   95,776  
    Long-term lease liabilities 98,907   102,830  
    Other liabilities 85,306   87,918  
    Accrued pension and other postretirement costs 187,575   195,503  
    Total liabilities 1,971,255   2,039,117  
         
    Equity:    
    Vishay stockholders' equity    
      Common stock 13,358   13,319  
      Class B convertible common stock 1,210   1,210  
      Capital in excess of par value 1,296,721   1,291,499  
      Retained earnings 1,068,351   1,041,372  
      Treasury stock (at cost) (186,816)  (161,656) 
      Accumulated other comprehensive income (loss) (16,969)  10,337  
      Total Vishay stockholders' equity 2,175,855   2,196,081  
    Noncontrolling interests 5,591   4,725  
    Total equity 2,181,446   2,200,806  
    Total liabilities and equity$4,152,701  $4,239,923  
         


    VISHAY INTERTECHNOLOGY, INC.    
    Consolidated Condensed Statements of Cash Flows    
    (Unaudited - In thousands)  
     Six fiscal months ended 
     June 29, 2024 July 1, 2023 
    Operating activities    
    Net earnings$55,323  $207,604  
    Adjustments to reconcile net earnings to net cash provided by operating activities:    
          Depreciation and amortization 101,677   87,694  
          Gain on disposal of property and equipment (1,091)  (495) 
          Inventory write-offs for obsolescence 19,051   18,023  
          Stock compensation expense 9,293   6,082  
          Change in U.S. transition tax liability (37,622)  (27,670) 
          Change in repatriation tax liability (15,000)  -  
          Deferred income taxes 5,589   16,166  
          Other (632)  (811) 
          Changes in operating assets and liabilities (81,107)  (69,461) 
    Net cash provided by operating activities 55,481   237,132  
         
    Investing activities    
    Purchase of property and equipment (115,648)  (117,250) 
    Proceeds from sale of property and equipment 1,265   1,013  
    Purchase and deposits for businesses, net of cash acquired (200,185)  (5,003) 
    Purchase of short-term investments (59,638)  (41) 
    Maturity of short-term investments 80,110   293,282  
    Other investing activities (1,220)  (892) 
    Net cash provided by (used in) investing activities (295,316)  171,109  
         
    Financing activities    
    Net proceeds on revolving credit facility -   143,000  
    Debt issuance costs -   (6,120) 
    Dividends paid to common stockholders (25,033)  (25,538) 
    Dividends paid to Class B common stockholders (2,419)  (2,419) 
    Repurchase of common stock held in treasury (25,160)  (40,399) 
    Distributions to noncontrolling interests -   (867) 
    Cash withholding taxes paid when shares withheld for vested equity awards (4,058)  (3,653) 
    Net cash provided by (used in) financing activities (56,670)  64,004  
    Effect of exchange rate changes on cash and cash equivalents (3,483)  6,350  
         
    Net increase (decrease) in cash and cash equivalents (299,988)  478,595  
         
    Cash and cash equivalents at beginning of period 972,719   610,825  
    Cash and cash equivalents at end of period$672,731  $1,089,420  
         


    VISHAY INTERTECHNOLOGY, INC.          
    Reconciliation of Free Cash          
    (Unaudited - In thousands)          
     Fiscal quarters ended Six fiscal months ended 
     June 29, 2024 March 30, 2024 July 1, 2023 June 29, 2024 July 1, 2023 
    Net cash provided by operating activities$(24,730) $80,211  $107,239  $55,481  $237,132  
    Proceeds from sale of property and equipment 514   751   687   1,265   1,013  
    Less: Capital expenditures (62,564)  (53,084)  (71,676)  (115,648)  (117,250) 
    Free cash$(86,780) $27,878  $36,250  $(58,902) $120,895  
               



    VISHAY INTERTECHNOLOGY, INC.          
    Reconciliation of EBITDA          
    (Unaudited - In thousands)          
     Fiscal quarters ended Six fiscal months ended 
     June 29, 2024 March 30, 2024 July 1, 2023 June 29, 2024 July 1, 2023 
               
    GAAP net earnings attributable to Vishay stockholders$23,533  $30,924  $95,038  $54,457  $206,819  
    Net earnings attributable to noncontrolling interests 347   519   377   866   785  
    Net earnings$23,880  $31,443  $95,415  $55,323  $207,604  
               
    Interest expense$6,657  $6,496  $6,404  $13,153  $11,524  
    Interest income (6,663)  (9,053)  (6,292)  (15,716)  (12,236) 
    Income taxes 12,391   12,819   38,054   25,210   82,642  
    Depreciation and amortization 52,150   49,527   44,393   101,677   87,694  
    EBITDA$88,415  $91,232  $177,974  $179,647  $377,228  
               
               
    EBITDA margin** 11.9%  12.2%  19.9%  12.1%  21.4% 
               
    ** EBITDA as a percentage of net revenues          
               



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