• Revenues for Q4 2018 of $776 million and for year 2018 $3,035 million
  • Gross Margin Q4 of 28.3% and year 2018 of 29.3%
  • Operating Margin Q4 of 15.4% and year 2018 of 16.0%
  • EPS Q4 of $0.69 and year 2018 $2.24
  • Adjusted EPS Q4 of $0.58 and year 2018 of $2.12
  • Cash from operations for year 2018 of $259 million, proceeds from sale of property and equipment of $56 million, and capital expenditures of $230 million
  • Guidance for Q1 2019 for revenues of $730 to $770 million and gross margins of 28% to 29% at Q4 exchange rates

MALVERN, Pa., Feb. 05, 2019 (GLOBE NEWSWIRE) -- 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, 2018.

Revenues for the year ended December 31, 2018 were $3,034.7 million, compared to $2,599.4 million for the year ended December 31, 2017.  Net earnings attributable to Vishay stockholders for the year ended December 31, 2018 were $345.8 million, or $2.24 per diluted share.  Net loss attributable to Vishay stockholders for the year ended December 31, 2017 was $(20.3) million, or $(0.14) per share.

Revenues for the fiscal quarter ended December 31, 2018 were $775.9 million, compared to $781.0 million for the fiscal quarter ended September 29, 2018, and $673.5 million for the fiscal quarter ended December 31, 2017.  Net earnings attributable to Vishay stockholders for the fiscal quarter ended December 31, 2018 were $102.4 million, or $0.69 per diluted share, compared to $77.9 million, or $0.51 per diluted share for the fiscal quarter ended September 29, 2018, and net loss attributable to Vishay stockholders of $(177.7) million, or $(1.23) per share for the fiscal quarter ended December 31, 2017.

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 $0.58 and $2.12 for the fiscal quarter and year ended December 31, 2018, respectively, $0.60 for the fiscal quarter ended September 29, 2018, and $0.37 and $1.43 for the fiscal quarter and year ended December 31, 2017, respectively.

Commenting on the results for the year 2018, Dr. Gerald Paul, President and Chief Executive Officer, stated, “2018 was a record year for Vishay in terms of revenues and the second highest ever in terms of profitability. As in the previous year, partially extreme demand from virtually all market segments drove this strength. We further increased manufacturing capacities of most of our product lines considerably and we continue to do so for several strategic lines. Driven by increased volume Vishay demonstrated the leverage of its business model.”

Dr. Paul continued, commenting on the results for the fourth quarter 2018, “When excluding exchange rate effects, revenues were flat quarter over quarter. There were signs of normalization as supply started to catch up with demand. Lead times for critical product lines, while still stretched, are starting to normalize. Market conditions overall remain stable.”

Commenting on the outlook Dr. Paul stated, “For the first quarter, we guide for revenues of $730 to $770 million and gross margins of 28% to 29% at the exchange rates for the fourth quarter.”

A conference call to discuss Vishay’s fourth quarter and full year financial results is scheduled for Tuesday, February 5, 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 conference ID is 4585076.

There will be a replay of the conference call from 12:00 p.m. ET on Tuesday, February 5, 2019 through 11:59 p.m. ET on Tuesday, February 12, 2019. The telephone number for the replay is 800-585-8367 (+1 855-859-2056 or 404-537-3406 if calling from outside the United States or Canada) and the access code is 4585076.

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.

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 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, product demand, manufacturing capacities, 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.

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)   
    
 Years ended
 December 31, 2018 December 31, 2017*
    
Net revenues$  3,034,689  $  2,599,368 
Costs of products sold   2,146,165     1,896,259 
Gross profit   888,524     703,109 
Gross margin 29.3%  27.0%
    
Selling, general, and administrative expenses   403,404     367,831 
Restructuring and severance costs   -     11,273 
Operating income   485,120     324,005 
Operating margin 16.0%  12.5%
    
Other income (expense):   
Interest expense   (36,680)    (27,850)
Other components of net periodic pension cost   (13,118)    (12,417)
Other   8,037     1,738 
Loss on early extinguishment of debt   (26,583)    - 
Loss on disposal of equity affiliate   -     (6,112)
Total other income (expense) - net   (68,344)    (44,641)
    
Income before taxes   416,776     279,364 
    
Income taxes   70,239     298,924 
    
Net earnings (loss)   346,537     (19,560)
    
Less: net earnings attributable to noncontrolling interests   779     784 
    
Net earnings (loss) attributable to Vishay stockholders$  345,758  $  (20,344)
    
Basic earnings (loss) per share attributable to Vishay stockholders$  2.39  $  (0.14)
    
Diluted earnings (loss) per share attributable to Vishay stockholders$  2.24  $  (0.14)
    
Weighted average shares outstanding - basic   144,370   145,633 
    
Weighted average shares outstanding - diluted   154,622   145,633 
    
Cash dividends per share$  0.3225  $  0.2550 
    
*Recast for the retrospective adoption of ASUs 2014-09 and 2017-07   
    

 

VISHAY INTERTECHNOLOGY, INC.      
Summary of Operations     
(Unaudited - In thousands, except per share amounts)     
      
 Fiscal quarters ended
 December 31, 2018 September 29, 2018 December 31, 2017*
      
Net revenues$  775,892  $  780,972  $  673,462 
Costs of products sold   556,202     544,676     496,086 
Gross profit   219,690     236,296     177,376 
Gross margin 28.3%  30.3%  26.3%
      
Selling, general, and administrative expenses   100,023     98,198     95,291 
Restructuring and severance costs   -     -     6,079 
Operating income   119,667     138,098     76,006 
Operating margin 15.4%  17.7%  11.3%
      
Other income (expense):     
Interest expense   (9,818)    (10,813)    (7,046)
Other components of net periodic pension cost   (2,782)    (3,367)    (3,470)
Other   2,597     2,890     587 
Loss on early extinguishment of debt   (9,274)    -     - 
Gain (loss) on disposal of equity affiliate   -     -     948 
Total other income (expense) - net   (19,277)    (11,290)    (8,981)
      
Income before taxes   100,390     126,808     67,025 
      
Income taxes   (2,269)    48,737     244,526 
      
Net earnings (loss)   102,659     78,071     (177,501)
      
Less: net earnings attributable to noncontrolling interests   240     195     156 
      
Net earnings (loss) attributable to Vishay stockholders$  102,419  $  77,876  $  (177,657)
      
Basic earnings (loss) per share attributable to Vishay stockholders$  0.71  $  0.54  $  (1.23)
      
Diluted earnings (loss) per share attributable to Vishay stockholders$  0.69  $  0.51  $  (1.23)
      
Weighted average shares outstanding - basic 144,384   144,383   144,165 
      
Weighted average shares outstanding - diluted 148,378   152,946   144,165 
      
Cash dividends per share$  0.0850  $  0.0850  $  0.0675 
      
*Recast for the retrospective adoption of ASUs 2014-09 and 2017-07     
      

 

VISHAY INTERTECHNOLOGY, INC.    
Consolidated Condensed Balance Sheets   
(Unaudited - in thousands)   
    
 December 31, 2018 December 31, 2017*
    
Assets   
Current assets:   
Cash and cash equivalents$  686,032  $  748,032 
Short-term investments   78,286     547,136 
Accounts receivable, net   397,020     340,027 
Inventories:   
Finished goods 138,112   127,272 
Work in process 190,982   170,319 
Raw materials 150,566   132,068 
Total inventories 479,660   429,659 
    
Prepaid expenses and other current assets 142,888   130,336 
Total current assets 1,783,886   2,195,190 
    
Property and equipment, at cost:   
Land 87,622   92,285 
Buildings and improvements 619,445   606,168 
Machinery and equipment 2,510,001   2,415,769 
Construction in progress 125,109   103,058 
Allowance for depreciation (2,373,176)  (2,311,522)
  969,001   905,758 
    
Goodwill 147,480   142,742 
    
Other intangible assets, net 65,688   69,754 
    
Other assets 140,143   148,645 
Total assets$3,106,198  $3,462,089 
    
*Recast for the retrospective adoption of ASUs 2014-09 and 2017-07
    

 

VISHAY INTERTECHNOLOGY, INC.   
Consolidated Condensed Balance Sheets (continued)   
(Unaudited - in thousands)   
    
 December 31, 2018 December 31, 2017*
    
Liabilities and stockholders' equity   
Current liabilities:   
Notes payable to banks$18  $4 
Trade accounts payable 218,322   222,373 
Payroll and related expenses 141,670   135,702 
Other accrued expenses 229,660   154,230 
Income taxes 54,436   50,226 
Total current liabilities 644,106   562,535 
    
Long-term debt less current portion 494,509   370,470 
U.S. transition tax payable 154,953   151,200 
Deferred income taxes 85,471   336,465 
Other liabilities 79,489   75,249 
Accrued pension and other postretirement costs 260,984   281,701 
Total liabilities 1,719,512   1,777,620 
    
Redeemable convertible debentures 2,016   252,070 
    
Equity:   
Vishay stockholders' equity   
Common stock 13,212   13,188 
Class B convertible common stock 1,210   1,213 
Capital in excess of par value 1,436,011   1,752,506 
Retained earnings (accumulated deficit) (61,258)  (362,254)
Accumulated other comprehensive income (loss) (6,791)  25,714 
Total Vishay stockholders' equity 1,382,384   1,430,367 
Noncontrolling interests 2,286   2,032 
Total equity 1,384,670   1,432,399 
Total liabilities, temporary equity, and equity$3,106,198  $3,462,089 
    
*Recast for the retrospective adoption of ASUs 2014-09 and 2017-07
    
    

 

VISHAY INTERTECHNOLOGY, INC.    
Consolidated Statements of Cash Flows    
(In thousands)  
 Years ended 
 December 31, 2018 December 31, 2017 
 (unaudited)   
Operating activities    
Net earnings$346,537  $(19,560) 
Adjustments to reconcile net earnings (loss) to    
net cash provided by operating activities:    
Depreciation and amortization 161,863   163,146  
(Gain) loss on disposal of property and equipment (2,216)  (265) 
Accretion of interest on convertible debt instruments 10,769   4,984  
Inventory write-offs for obsolescence 23,872   17,771  
Loss on disposal of equity affiliate -   6,112  
Pensions and other postretirement benefits, net of contributions (1,549)  (2,425) 
Loss on early extinguishment of debt 26,583   -  
Deferred income taxes (55,206)  52,377  
Other 21,194   13,044  
U.S. transition tax (14,757)  180,000  
Repatriation taxes (156,767)  -  
Changes in operating assets and liabilities, net of effects of businesses acquired (101,817)  (46,407) 
Net cash provided by operating activities 258,506   368,777  
     
Investing activities    
Purchase of property and equipment (229,899)  (170,432) 
Proceeds from sale of property and equipment 55,561   1,685  
Purchase of businesses, net of cash acquired (14,880)  -  
Purchase of short-term investments (175,403)  (749,600) 
Maturity of short-term investments 636,108   887,729  
Other investing activities (2,058)  (4,189) 
Net cash provided by (used in) investing activities 269,429   (34,807) 
     
Financing activities    
Proceeds from long-term borrowings 600,000   -  
Issuance costs (15,621)  -  
Repurchase of convertible debentures (960,995)  -  
Net proceeds (payments) on revolving credit lines (150,000)  7,000  
Common stock repurchases -   (39,944) 
Net changes in short-term borrowings 15   1  
Dividends paid to common stockholders (42,608)  (33,956) 
Dividends paid to Class B common stockholders (3,901)  (3,093) 
Proceeds from stock options exercised -   1,260  
Distributions to noncontrolling interests (525)  (1,140) 
Acquisition of noncontrolling interests -   (4,100) 
Cash withholding taxes paid when shares withheld for vested equity awards (2,297)  (1,971) 
Other financing activities -   (1,255) 
Net cash used in financing activities (575,932)  (77,198) 
Effect of exchange rate changes on cash and cash equivalents (14,003)  19,479  
     
Net increase (decrease) in cash and cash equivalents (62,000)  276,251  
     
Cash and cash equivalents at beginning of period 748,032   471,781  
Cash and cash equivalents at end of period$686,032  $748,032  
     

 

VISHAY INTERTECHNOLOGY, INC.         
Reconciliation of Adjusted Earnings Per Share         
(Unaudited - In thousands, except per share amounts)         
 Fiscal quarters ended Years ended
 December 31, 2018 September 29, 2018 December 31, 2017 December 31, 2018 December 31, 2017
          
GAAP net earnings (loss) attributable to Vishay stockholders$102,419  $77,876 $(177,657) $345,758  $(20,344)
          
Reconciling items affecting operating income:         
Restructuring and severance costs$-  $- $6,079  $-  $11,273 
          
Reconciling items affecting other income (expense):         
Loss on early extinguishment of debt$9,274  $- $-  $26,583  $- 
Loss (gain) on disposal of equity affiliate -   -  (948)  -   6,112 
          
Reconciling items affecting tax expense (benefit):         
Enactment of TCJA$-  $13,496 $234,855  $25,496  $234,855 
Effects of cash repatriation program (3,037)  680  (2,702)  (10,047)  (5,802)
Change in deferred taxes due to early extinguishment of debt (20,914)  -  -   (54,877)  - 
Effects of changes in uncertain tax positions -   -  2,369   -   1,565 
Tax effects of pre-tax items above (2,028)  -  (2,060)  (5,812)  (3,331)
          
          
Adjusted net earnings$85,714  $92,052 $59,936  $327,101  $224,328 
          
Adjusted weighted average diluted shares outstanding 148,378   152,946  161,177   154,622   157,010 
          
Adjusted earnings per diluted share$0.58  $0.60 $0.37  $2.12  $1.43 
          

 

VISHAY INTERTECHNOLOGY, INC.         
Reconciliation of Free Cash         
(Unaudited - In thousands)         
 Fiscal quarters ended Years ended
 December 31, 2018 September 29, 2018 December 31, 2017 December 31, 2018 December 31, 2017
Net cash provided by operating activities$149,615  $70,721  $122,932  $258,506  $368,777 
Proceeds from sale of property and equipment 47,106   77   201   55,561   1,685 
Less: Capital expenditures (103,508)  (49,745)  (85,642)  (229,899)  (170,432)
Free cash$93,213  $21,053  $37,491  $84,168  $200,030 
          

 

VISHAY INTERTECHNOLOGY, INC.         
Reconciliation of EBITDA and Adjusted EBITDA         
(Unaudited - In thousands)         
 Fiscal quarters ended Years ended
 December 31, 2018 September 29, 2018 December 31, 2017 December 31, 2018 December 31, 2017
          
GAAP net earnings (loss) attributable to Vishay stockholders$102,419  $77,876  $(177,657) $345,758  $(20,344)
Net earnings attributable to noncontrolling interests 240   195   156   779   784 
Net earnings (loss)$102,659  $78,071  $(177,501) $346,537  $(19,560)
          
Interest expense$9,818  $10,813  $7,046  $36,680  $27,850 
Interest income (3,638)  (3,504)  (1,883)  (11,940)  (6,482)
Income taxes (2,269)  48,737   244,526   70,239   298,924 
Depreciation and amortization 39,975   40,714   41,827   161,863   163,146 
EBITDA$146,545  $174,831  $114,015  $603,379  $463,878 
          
Reconciling items         
Restructuring and severance costs$-  $-  $6,079  $-  $11,273 
Loss on early extinguishment of debt 9,274   -   -   26,583   - 
Loss (gain) on disposal of equity affiliate -   -   (948)  -   6,112 
          
Adjusted EBITDA$155,819  $174,831  $119,146  $629,962  $481,263 
          
Adjusted EBITDA margin** 20.1%  22.4%  17.7%  20.8%  18.5%
          
** Adjusted EBITDA as a percentage of net revenues