×

Vishay Reports Results for Third Quarter 2017

  • Revenues for Q3 2017 of $678 million
  • Gross Margin Q3 of 27.9%
  • Adjusted Operating Margin Q3 of 14.1%
  • EPS Q3 of $0.41
  • Adjusted EPS Q3 of $0.42
  • Cash from operations for trailing twelve months Q3 of $329 million and capital expenditures of $138 million
  • Exchange rate impacts on revenues were plus $14 million quarter over quarter
  • Stock repurchase Q3 2017 of 2.1 million shares for $37.6 million
  • Guidance for Q4 2017 for revenues of $645 - $685 million and gross margins of 26% - 28% at Q3 exchange rates

MALVERN, Pa., Oct. 26, 2017 (GLOBE NEWSWIRE) -- Revenues for the fiscal quarter ended September 30, 2017 were $677.9 million, compared to $644.9 million for the fiscal quarter ended July 1, 2017 and $592.0 million for the fiscal quarter ended October 1, 2016. Net earnings attributable to Vishay stockholders for the fiscal quarter ended September 30, 2017 were $64.4 million, or $0.41 per diluted share, compared to $56.2 million, or $0.36 per diluted share for the fiscal quarter ended July 1, 2017, and $36.4 million, or $0.24 per diluted share for the fiscal quarter ended October 1, 2016.

All periods presented include certain items affecting comparability. These items are summarized on the attached reconciliation schedule. Adjusted earnings per diluted share, which exclude these items net of tax and the unusual tax items, were $0.42, $0.36, and $0.25 for the fiscal quarters ended September 30, 2017, July 1, 2017, and October 1, 2016, respectively.

Commenting on the results for the third quarter 2017, Dr. Gerald Paul, President and Chief Executive Officer, stated, “The third quarter represented a continuation of the trends of the first half of the year. Demand from all end markets improved further, in particular the automotive and industrial markets. Customers remain very confident across the board. Also, inventory turns of our products at distributors remained high with 3.7 turns.”

Dr. Paul continued, “We will further increase our efforts to even better penetrate automotive and industrial markets in Asia. For automotive markets worldwide we expect strong growth for years to come driven by e-mobility and sensors. It is a market in which we are very well positioned.”

Dr. Paul stated further, “We are especially content to enjoy the benefits of having restructured the MOSFETs business. On the new cost basis, we anticipate a good future for this line.”

Commenting on the outlook Dr. Paul stated, “For the fourth quarter based on fewer working days, we guide for revenues of $645 to $685 million and gross margins of 26% to 28% at the exchange rates for the third quarter.”

A conference call to discuss Vishay’s third quarter financial results is scheduled for Thursday, October 26, 2017 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 91653094.

There will be a replay of the conference call from 12:00 p.m. ET on Thursday, October 26, 2017 through 11:59 p.m. ET on Thursday, November 2, 2017. 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 91653094.

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, cash generation, restructuring programs and their financial impact, anticipated growth areas for the company, 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; 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 applicable domestic and foreign tax regulations and uncertainty regarding the same; 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.

Source: Vishay Intertechnology, Inc.
Contact:
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)
Fiscal quarters ended
September 30, 2017 July 1, 2017 October 1, 2016
Net revenues$ 677,883 $ 644,892 $ 591,955
Costs of products sold 488,610 471,929 438,054
Gross profit 189,273 172,963 153,901
Gross margin 27.9% 26.8% 26.0%
Selling, general, and administrative expenses 93,701 90,446 93,916
Restructuring and severance costs 3,244 481 1,197
Impairment of intangible assets - - 1,559
Operating income 92,328 82,036 57,229
Operating margin 13.6% 12.7% 9.7%
Other income (expense):
Interest expense (6,938) (7,076) (6,165)
Other 798 749 (380)
Total other income (expense) - net (6,140) (6,327) (6,545)
Income before taxes 86,188 75,709 50,684
Income taxes 21,605 19,300 14,088
Net earnings 64,583 56,409 36,596
Less: net earnings attributable to noncontrolling interests 179 219 156
Net earnings attributable to Vishay stockholders$ 64,404 $ 56,190 $ 36,440
Basic earnings per share attributable to Vishay stockholders$ 0.44 $ 0.38 $ 0.25
Diluted earnings per share attributable to Vishay stockholders$ 0.41 $ 0.36 $ 0.24
Weighted average shares outstanding - basic 145,728 146,381 146,924
Weighted average shares outstanding - diluted 156,701 155,300 149,894
Cash dividends per share$ 0.0625 $ 0.0625 $ 0.0625

VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands, except per share amounts)
Nine fiscal months ended
September 30, 2017 October 1, 2016
Net revenues$ 1,929,033 $ 1,752,612
Costs of products sold 1,405,922 1,315,274
Gross profit 523,111 437,338
Gross margin 27.1% 25.0%
Selling, general, and administrative expenses 278,865 276,455
Restructuring and severance costs 5,194 12,139
Impairment of intangible assets - 1,559
Operating income 239,052 147,185
Operating margin 12.4% 8.4%
Other income (expense):
Interest expense (20,804) (18,901)
Other 1,151 2,655
Loss on disposal of equity affiliate (7,060) -
Gain on early extinguishment of debt - 4,597
Total other income (expense) - net (26,713) (11,649)
Income before taxes 212,339 135,536
Income taxes 54,398 37,559
Net earnings 157,941 97,977
Less: net earnings attributable to noncontrolling interests 628 437
Net earnings attributable to Vishay stockholders$ 157,313 $ 97,540
Basic earnings per share attributable to Vishay stockholders$ 1.08 $ 0.66
Diluted earnings per share attributable to Vishay stockholders$ 1.01 $ 0.65
Weighted average shares outstanding - basic 146,128 147,470
Weighted average shares outstanding - diluted 155,626 150,125
Cash dividends per share$ 0.1875 $ 0.1875

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(In thousands)
September 30, 2017 December 31, 2016
(unaudited)
Assets
Current assets:
Cash and cash equivalents$ 575,385 $ 471,781
Short-term investments 668,185 626,627
Accounts receivable, net 329,422 274,027
Inventories:
Finished goods 131,367 109,075
Work in process 178,173 162,311
Raw materials 128,036 109,859
Total inventories 437,576 381,245
Prepaid expenses and other current assets 112,394 110,792
Total current assets 2,122,962 1,864,472
Property and equipment, at cost:
Land 91,905 89,753
Buildings and improvements 595,628 570,932
Machinery and equipment 2,399,972 2,283,222
Construction in progress 63,766 71,777
Allowance for depreciation (2,298,431) (2,166,813)
852,840 848,871
Goodwill 142,545 141,407
Other intangible assets, net 73,154 84,463
Other assets 142,753 138,588
Total assets$ 3,334,254 $ 3,077,801

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets (continued)
(In thousands)
September 30, 2017 December 31, 2016
(unaudited)
Liabilities and stockholders' equity
Current liabilities:
Notes payable to banks$ 25 $ 3
Trade accounts payable 181,988 174,107
Payroll and related expenses 138,616 114,576
Other accrued expenses 151,883 149,131
Income taxes 18,085 19,033
Total current liabilities 490,597 456,850
Long-term debt less current portion 356,938 357,023
Deferred income taxes 289,526 286,797
Other liabilities 67,712 59,725
Accrued pension and other postretirement costs 273,851 257,789
Total liabilities 1,478,624 1,418,184
Redeemable convertible debentures 252,889 88,659
Equity:
Vishay stockholders' equity
Common stock 13,200 13,385
Class B convertible common stock 1,213 1,213
Capital in excess of par value 1,753,369 1,952,988
Retained earnings (accumulated deficit) (177,075) (307,417)
Accumulated other comprehensive income (loss) 10,158 (94,652)
Total Vishay stockholders' equity 1,600,865 1,565,517
Noncontrolling interests 1,876 5,441
Total equity 1,602,741 1,570,958
Total liabilities, temporary equity, and equity$ 3,334,254 $ 3,077,801

VISHAY INTERTECHNOLOGY, INC.
Consolidated Statements of Cash Flows
(Unaudited - In thousands)
Nine fiscal months ended
September 30, 2017 October 1, 2016*
Operating activities
Net earnings$ 157,941 $ 97,977
Adjustments to reconcile net earnings (loss) to
net cash provided by operating activities:
Depreciation and amortization 121,319 119,143
(Gain) loss on disposal of property and equipment (106) (1,373)
Accretion of interest on convertible debentures 3,703 3,425
Inventory write-offs for obsolescence 12,157 17,085
Loss on disposal of equity affiliate 7,060 -
Impairment of intangible assets - 1,559
Deferred income taxes 9,115 (1,750)
Gain on early extinguishment of debt - (4,597)
Other 6,531 (4,944)
Changes in operating assets and liabilities, net of effects of businesses acquired (71,875) (13,455)
Net cash provided by operating activities 245,845 213,070
Investing activities
Purchase of property and equipment (84,790) (81,346)
Proceeds from sale of property and equipment 1,484 1,241
Purchase of short-term investments (598,937) (472,938)
Maturity of short-term investments 610,573 491,867
Other investing activities (6,663) 2,886
Net cash provided by (used in) investing activities (78,333) (58,290)
Financing activities
Principal payments on long-term debt and capital lease obligations - (34,044)
Net proceeds (payments) on revolving credit lines (5,000) (41,000)
Common stock repurchases (37,564) (16,981)
Net changes in short-term borrowings 22 (626)
Dividends paid to common stockholders (25,054) (25,329)
Dividends paid to Class B common stockholders (2,274) (2,274)
Proceeds from stock options exercised 1,260 -
Distributions to noncontrolling interests (1,140) (707)
Acquisition of noncontrolling interests (4,100) -
Cash withholding taxes paid when shares withheld for vested equity awards (1,971) (442)
Other financing activities (1,255) -
Net cash provided by (used in) financing activities (77,076) (121,403)
Effect of exchange rate changes on cash and cash equivalents 13,168 2,703
Net increase in cash and cash equivalents 103,604 36,080
Cash and cash equivalents at beginning of period 471,781 475,507
Cash and cash equivalents at end of period$ 575,385 $ 511,587
* recast for the retrospective adoption of ASU 2016-09.

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, 2017 July 1, 2017 October 1, 2016 September 30, 2017 October 1, 2016
GAAP net earnings attributable to Vishay stockholders$ 64,404 $ 56,190 $ 36,440 $ 157,313 $ 97,540
Reconciling items affecting operating income:
Restructuring and severance costs$ 3,244 $ 481 $ 1,197 $ 5,194 $ 12,139
Impairment of intangible assets - - 1,559 - 1,559
Reconciling items affecting other income (expense):
Loss on disposal of equity affiliate$ - $ - $ - $ 7,060 $ -
Gain on early extinguishment of debt - - - - (4,597)
Reconciling items affecting tax expense (benefit):
Effects of cash repatriation program$ (892) $ (1,240) $ (1,402) $ (3,100) $ (3,388)
Effects of changes in uncertain tax positions (804) - - (804) -
Tax effects of pre-tax items above (674) (156) (441) (1,271) (2,436)
Adjusted net earnings$ 65,278 $ 55,275 $ 37,353 $ 164,392 $ 100,817
Adjusted weighted average diluted shares outstanding 156,701 155,300 149,894 155,626 150,125
Adjusted earnings per diluted share*$ 0.42 $ 0.36 $ 0.25 $ 1.06 $ 0.67
* Includes add-back of interest on exchangeable notes in periods where the notes are dilutive.

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of Free Cash
(Unaudited - In thousands)
Fiscal quarters ended Nine fiscal months ended
September 30, 2017 July 1, 2017 October 1, 2016 September 30, 2017 October 1, 2016
Net cash provided by operating activities$ 117,579 $ 84,592 $ 117,657 $ 245,845 $ 213,070
Proceeds from sale of property and equipment 196 345 1,048 1,484 1,241
Less: Capital expenditures (35,723) (32,399) (30,273) (84,790) (81,346)
Free cash$ 82,052 $ 52,538 $ 88,432 $ 162,539 $ 132,965

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of EBITDA and Adjusted EBITDA
(Unaudited - In thousands)
Fiscal quarters ended Nine fiscal months ended
September 30, 2017 July 1, 2017 October 1, 2016 September 30, 2017 October 1, 2016
GAAP net earnings attributable to Vishay stockholders$ 64,404 $ 56,190 $ 36,440 $ 157,313 $ 97,540
Net earnings attributable to noncontrolling interests 179 219 156 628 437
Net earnings$ 64,583 $ 56,409 $ 36,596 $ 157,941 $ 97,977
Interest expense$ 6,938 $ 7,076 $ 6,165 $ 20,804 $ 18,901
Interest income (1,802) (1,534) (1,033) (4,599) (3,200)
Income taxes 21,605 19,300 14,088 54,398 37,559
Depreciation and amortization 40,939 40,168 40,026 121,319 119,143
EBITDA$ 132,263 $ 121,419 $ 95,842 $ 349,863 $ 270,380
Reconciling items
Restructuring and severance costs$ 3,244 $ 481 $ 1,197 $ 5,194 $ 12,139
Impairment of intangible assets - - 1,559 - 1,559
Loss on disposal of equity affiliate - - - 7,060 -
Gain on early extinguishment of debt - - - - (4,597)
Adjusted EBITDA$ 135,507 $ 121,900 $ 98,598 $ 362,117 $ 279,481
Adjusted EBITDA margin** 20.0% 18.9% 16.7% 18.8% 15.9%
** Adjusted EBITDA as a percentage of net revenues



Source:Vishay Intertechnology, Inc.

More From Press Releases