U.S. Markets closed
  • S&P 500

    4,471.37
    +33.11 (+0.75%)
     
  • Dow 30

    35,294.76
    +382.20 (+1.09%)
     
  • Nasdaq

    14,897.34
    +73.91 (+0.50%)
     
  • Russell 2000

    2,265.65
    -8.52 (-0.37%)
     
  • Gold

    1,768.10
    -29.80 (-1.66%)
     
  • EUR/USD

    1.1606
    +0.0005 (+0.0464%)
     
  • 10-Yr Bond

    1.5760
    +0.0570 (+3.75%)
     
  • Vix

    16.30
    -0.56 (-3.32%)
     
  • GBP/USD

    1.3751
    +0.0074 (+0.5418%)
     
  • USD/JPY

    114.2000
    +0.5230 (+0.4601%)
     
  • BTC-USD

    61,546.06
    +2,282.74 (+3.85%)
     
  • CMC Crypto 200

    1,464.06
    +57.32 (+4.07%)
     
  • FTSE 100

    7,234.03
    +26.32 (+0.37%)
     
  • Nikkei 225

    29,068.63
    +517.70 (+1.81%)
     

Vishay Reports Results for Second Quarter 2020

  • Oops!
    Something went wrong.
    Please try again later.
·16 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Revenues Q2 of $582 million

  • Gross margin Q2 of 22.5%; adjusted gross margin 22.6%

  • Operating margin Q2 of 7.0%; adjusted operating margin 7.2%

  • EPS Q2 of $0.17; adjusted EPS $0.18

  • Free Cash for the trailing 12 months Q2 of $151 million

  • Repurchased $75.8 million principal amount of convertible notes due 2025, at approximately 93% of face value, to provide flexibility to adjust future debt levels as necessary

  • Guidance Q3 for revenues of $580 to $620 million at a gross margin of 22.8% plus/minus 70 basis points, assuming a USD/EUR exchange rate of 0.87

MALVERN, Pa., Aug. 04, 2020 (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 fiscal quarter and six fiscal months ended July 4, 2020.

Revenues for the fiscal quarter ended July 4, 2020 were $581.7 million, compared to $612.8 million for the fiscal quarter ended April 4, 2020, and $685.2 million for the fiscal quarter ended June 29, 2019. Net earnings attributable to Vishay stockholders for the fiscal quarter ended July 4, 2020 were $24.7 million, or $0.17 per diluted share, compared to $27.2 million, or $0.19 per diluted share for the fiscal quarter ended April 4, 2020, and $44.5 million, or $0.31 per diluted share for the fiscal quarter ended June 29, 2019.

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 $0.18, $0.21, and $0.36 for the fiscal quarters ended July 4, 2020, April 4, 2020, and June 29, 2019, respectively.

Commenting on results for the second quarter 2020, Dr. Gerald Paul, President and Chief Executive Officer stated, “The second quarter has been strongly impacted by the lockdowns in many countries due to COVID-19, in particular the shutdown of automotive plants in Europe and the Americas. Asia, especially China, having gone through a lockdown already in the first quarter, showed a quick recovery whereas revenues in Europe and the Americas were steeply lower. The weakest end market was automotive with revenues lower by 34% compared to the first quarter.”

Dr. Paul continued, “On the other hand, the second quarter seems to represent the bottom of this cycle and, clearly, the fundamentals for Vishay’s growth remain intact. Vishay has successfully mastered temporary economic downturns in the past and we are doing so again. We continue to be focused on profitability and cash generation while safeguarding the health and well-being of our employees.”

Commenting on the outlook Dr. Paul stated, “For the third quarter 2020 we expect lower sales to Vishay’s distribution partners compensated by recovering sales to our automotive customers, and guide for revenues in the range of $580 to $620 million at a gross margin of 22.8% plus/minus 70 basis points, assuming a USD/EUR exchange rate of 0.87.”

A conference call to discuss Vishay’s second quarter financial results is scheduled for Tuesday, August 4, 2020 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 access code is 6075047.

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 from 12:00 p.m. ET on Tuesday, August 4, 2020, through 11:59 p.m. ET on Tuesday, August 12, 2020. The telephone number for the replay is +1 855-859-2056 (+1 404-537-3406, if calling from outside the United States or Canada) and the access code is 6075047.

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 http://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 statements with respect to forecasted revenues, margins, inventories, product demand, anticipated areas of growth, market segment performance, 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; manufacturing or supply chain interruptions or changes in customer demand because of COVID-19; 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.

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)

July 4, 2020

Fiscal quarters ended
April 4, 2020

June 29, 2019

Net revenues

$

581,717

$

612,841

$

685,240

Costs of products sold*

451,047

465,601

510,639

Gross profit

130,670

147,240

174,601

Gross margin

22.5

%

24.0

%

25.5

%

Selling, general, and administrative expenses**

89,127

99,832

95,112

Restructuring and severance costs

743

-

-

Operating income

40,800

47,408

79,489

Operating margin

7.0

%

7.7

%

11.6

%

Other income (expense):

Interest expense

(8,430

)

(8,552

)

(8,204

)

Other

(1,484

)

198

(397

)

Loss on early extinguishment of debt

(1,146

)

(2,920

)

-

Total other income (expense) - net

(11,060

)

(11,274

)

(8,601

)

Income before taxes

29,740

36,134

70,888

Income tax expense (benefit)

4,845

8,750

26,153

Net earnings

24,895

27,384

44,735

Less: net earnings attributable to noncontrolling interests

242

165

258

Net earnings attributable to Vishay stockholders

$

24,653

$

27,219

$

44,477

Basic earnings per share attributable to Vishay stockholders

$

0.17

$

0.19

$

0.31

Diluted earnings per share attributable to Vishay stockholders

$

0.17

$

0.19

$

0.31

Weighted average shares outstanding - basic

144,846

144,792

144,621

Weighted average shares outstanding - diluted

145,170

145,295

145,023

Cash dividends per share

$

0.095

$

0.095

$

0.095

* Includes incremental costs of products sold separable from normal operations directly attributable to the COVID-19 outbreak of $923 and $3,130 for the fiscal quarters ended July 4, 2020 and April 4, 2020, respectively.
** Includes incremental selling, general, and administrative expenses (benefits) separable from normal operations directly attributable to the COVID-19 outbreak of $(747) and $317, for the fiscal quarters ended July 4, 2020 and April 4, 2020, respectively.


VISHAY INTERTECHNOLOGY, INC.

Summary of Operations

(Unaudited - In thousands, except per share amounts)

Six fiscal months ended

July 4, 2020

June 29, 2019

Net revenues

$

1,194,558

$

1,430,399

Costs of products sold*

916,648

1,044,639

Gross profit

277,910

385,760

Gross margin

23.3

%

27.0

%

Selling, general, and administrative expenses*

188,959

198,536

Restructuring and severance costs

743

-

Operating income

88,208

187,224

Operating margin

7.4

%

13.1

%

Other income (expense):

Interest expense

(16,982

)

(16,596

)

Other

(1,286

)

1,515

Loss on early extinguishment of debt

(4,066

)

(1,307

)

Total other income (expense) - net

(22,334

)

(16,388

)

Income before taxes

65,874

170,836

Income tax expense

13,595

50,460

Net earnings

52,279

120,376

Less: net earnings attributable to noncontrolling interests

407

440

Net earnings attributable to Vishay stockholders

$

51,872

$

119,936

Basic earnings per share attributable to Vishay stockholders

$

0.36

$

0.83

Diluted earnings per share attributable to Vishay stockholders

$

0.36

$

0.83

Weighted average shares outstanding - basic

144,818

144,589

Weighted average shares outstanding - diluted

145,232

145,158

Cash dividends per share

$

0.19

$

0.18

* Includes incremental costs of products sold and selling, general, and administrative expenses (benefits) separable from normal operations directly attributable to the COVID-19 outbreak of $4,053 and $(430), respectively.


VISHAY INTERTECHNOLOGY, INC.

Consolidated Condensed Balance Sheets

(In thousands)

July 4, 2020

December 31, 2019

Assets

(Unaudited)

Current assets:

Cash and cash equivalents

$

599,930

$

694,133

Short-term investments

157,246

108,822

Accounts receivable, net

285,529

328,187

Inventories:

Finished goods

125,177

122,466

Work in process

196,846

187,354

Raw materials

127,165

121,860

Total inventories

449,188

431,680

Prepaid expenses and other current assets

131,125

141,294

Total current assets

1,623,018

1,704,116

Property and equipment, at cost:

Land

74,985

75,011

Buildings and improvements

596,942

585,064

Machinery and equipment

2,623,774

2,606,355

Construction in progress

99,932

110,722

Allowance for depreciation

(2,474,456

)

(2,425,627

)

921,177

951,525

Right of use assets

103,153

93,162

Goodwill

150,641

150,642

Other intangible assets, net

58,583

60,659

Other assets

168,274

160,671

Total assets

$

3,024,846

$

3,120,775


VISHAY INTERTECHNOLOGY, INC.

Consolidated Condensed Balance Sheets (continued)

(In thousands)

July 4, 2020

December 31, 2019

(Unaudited)

Liabilities and equity

Current liabilities:

Notes payable to banks

$

1

$

2

Trade accounts payable

148,727

173,915

Payroll and related expenses

126,302

122,100

Lease liabilities

21,443

20,217

Other accrued expenses

166,261

186,463

Income taxes

40,642

17,731

Total current liabilities

503,376

520,428

Long-term debt less current portion

438,494

499,147

U.S. transition tax payable

125,438

140,196

Deferred income taxes

4,231

22,021

Long-term lease liabilities

85,714

78,511

Other liabilities

98,134

100,207

Accrued pension and other postretirement costs

270,735

272,402

Total liabilities

1,526,122

1,632,912

Redeemable convertible debentures

-

174

Equity:

Vishay stockholders' equity

Common stock

13,256

13,235

Class B convertible common stock

1,210

1,210

Capital in excess of par value

1,412,775

1,425,170

Retained earnings

95,462

72,180

Accumulated other comprehensive income (loss)

(26,326

)

(26,646

)

Total Vishay stockholders' equity

1,496,377

1,485,149

Noncontrolling interests

2,347

2,540

Total equity

1,498,724

1,487,689

Total liabilities, temporary equity, and equity

$

3,024,846

$

3,120,775


VISHAY INTERTECHNOLOGY, INC.

Consolidated Condensed Statements of Cash Flows

(Unaudited - In thousands)

Six fiscal months ended

July 4, 2020

June 29, 2019

Operating activities

Net earnings

$

52,279

$

120,376

Adjustments to reconcile net earnings to

net cash provided by operating activities:

Depreciation and amortization

82,158

81,346

(Gain) loss on disposal of property and equipment

(43

)

(162

)

Accretion of interest on convertible debt instruments

7,125

6,985

Inventory write-offs for obsolescence

11,587

12,643

Loss on early extinguishment of debt

4,066

1,307

Deferred income taxes

(4,370

)

(5,601

)

Other

954

4,283

Change in U.S. transition tax liability

-

(14,757

)

Change in repatriation tax liability

(16,258

)

(20,479

)

Changes in operating assets and liabilities, net of effects of businesses acquired

(12,589

)

(50,122

)

Net cash provided by operating activities

124,909

135,819

Investing activities

Purchase of property and equipment

(48,832

)

(70,148

)

Proceeds from sale of property and equipment

230

464

Purchase of businesses, net of cash acquired

-

(11,862

)

Purchase of short-term investments

(157,086

)

(1,970

)

Maturity of short-term investments

108,044

79,694

Other investing activities

(529

)

2,893

Net cash used in investing activities

(98,173

)

(929

)

Financing activities

Issuance costs

-

(5,394

)

Repurchase of convertible debt instruments

(90,525

)

(22,695

)

Net proceeds (payments) on revolving credit lines

-

28,000

Net changes in short-term borrowings

(113

)

22

Dividends paid to common stockholders

(25,185

)

(23,822

)

Dividends paid to Class B common stockholders

(2,299

)

(2,178

)

Distributions to noncontrolling interests

(600

)

(600

)

Cash withholding taxes paid when shares withheld for vested equity awards

(2,016

)

(2,708

)

Net cash used in financing activities

(120,738

)

(29,375

)

Effect of exchange rate changes on cash and cash equivalents

(201

)

(641

)

Net increase (decrease) in cash and cash equivalents

(94,203

)

104,874

Cash and cash equivalents at beginning of period

694,133

686,032

Cash and cash equivalents at end of period

$

599,930

$

790,906


VISHAY INTERTECHNOLOGY, INC.

Reconciliation of Adjusted Earnings Per Share

(Unaudited - In thousands, except per share amounts)

Fiscal quarters ended

Six fiscal months ended

July 4, 2020

April 4, 2020

June 29, 2019

July 4, 2020

June 29, 2019

GAAP net earnings attributable to Vishay stockholders

$

24,653

$

27,219

$

44,477

$

51,872

$

119,936

Reconciling items affecting gross profit:

Impact of the COVID-19 outbreak

$

923

$

3,130

$

-

$

4,053

$

-

Other reconciling items affecting operating income:

Restructuring and severance costs

$

743

$

-

$

-

$

743

$

-

Impact of the COVID-19 outbreak

(747

)

317

-

(430

)

-

Reconciling items affecting other income (expense):

Loss on early extinguishment of debt

$

1,146

$

2,920

$

-

$

4,066

$

1,307

Reconciling items affecting tax expense (benefit):

Change in deferred taxes due to early extinguishment of debt

$

-

$

(1,346

)

$

-

$

(1,346

)

$

(1,312

)

Effects of tax-basis foreign exchange gain

-

-

7,554

-

7,554

Effects of cash repatriation program

(190

)

-

(48

)

(190

)

(633

)

Tax effects of pre-tax items above

(589

)

(1,482

)

-

(2,071

)

(290

)

Adjusted net earnings

$

25,939

$

30,758

$

51,983

$

56,697

$

126,562

Adjusted weighted average diluted shares outstanding

145,170

145,295

145,023

145,232

145,158

Adjusted earnings per diluted share

$

0.18

$

0.21

$

0.36

$

0.39

$

0.87


VISHAY INTERTECHNOLOGY, INC.

Reconciliation of Free Cash

(Unaudited - In thousands)

Fiscal quarters ended

Six fiscal months ended

July 4, 2020

April 4, 2020

June 29, 2019

July 4, 2020

June 29, 2019

Net cash provided by operating activities

$

90,431

$

34,478

$

56,301

$

124,909

$

135,819

Proceeds from sale of property and equipment

177

53

69

230

464

Less: Capital expenditures

(24,504

)

(24,328

)

(33,781

)

(48,832

)

(70,148

)

Free cash

$

66,104

$

10,203

$

22,589

$

76,307

$

66,135


VISHAY INTERTECHNOLOGY, INC.

Reconciliation of EBITDA and Adjusted EBITDA

(Unaudited - In thousands)

Fiscal quarters ended

Six fiscal months ended

July 4, 2020

April 4, 2020

June 29, 2019

July 4, 2020

June 29, 2019

GAAP net earnings attributable to Vishay stockholders

$

24,653

$

27,219

$

44,477

$

51,872

$

119,936

Net earnings attributable to noncontrolling interests

242

165

258

407

440

Net earnings

$

24,895

$

27,384

$

44,735

$

52,279

$

120,376

Interest expense

$

8,430

$

8,552

$

8,204

$

16,982

$

16,596

Interest income

(956

)

(1,854

)

(2,147

)

(2,810

)

(4,346

)

Income taxes

4,845

8,750

26,153

13,595

50,460

Depreciation and amortization

40,638

41,520

40,918

82,158

81,346

EBITDA

$

77,852

$

84,352

$

117,863

$

162,204

$

264,432

Reconciling items

Impact of the COVID-19 outbreak

$

176

$

3,447

$

-

$

3,623

$

-

Restructuring and severance costs

743

-

-

743

-

Loss on early extinguishment of debt

1,146

2,920

-

4,066

1,307

Adjusted EBITDA

$

79,917

$

90,719

$

117,863

$

170,636

$

265,739

Adjusted EBITDA margin**

13.7

%

14.8

%

17.2

%

14.3

%

18.6

%

** Adjusted EBITDA as a percentage of net revenues