• Vishay Intertechnology Reports Fiscal Fourth Quarter and Full Year 2023 Results

    Source: Nasdaq GlobeNewswire / 07 Feb 2024 07:15:00   America/New_York

    MALVERN, Pa., Feb. 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 fourth quarter and year ended December 31, 2023.

    Highlights

    • 4Q 2023 revenues of $785.2 million
    • 4Q 2023 EPS of $0.37
    • 4Q 2023 book-to-bill of 0.75
    • Backlog at quarter end was 5.3 months
    • Returned a total of $34.8 million to stockholders
    • FY 2023 capex of $329.4 million
    • FY 2023 free cash flow of $37.4 million
    • FY 2023 total stockholder return of $134.3 million

    “For the fourth quarter, the trends in inventory adjustments, contracting lead times and softened demand in industrial end markets became more apparent. While customers continue to digest higher inventory levels, we proceeded to implement our strategy to broaden participation with our distribution partners,” said Joel Smejkal, President and Chief Executive Officer.

    “Looking ahead, input from our customers and distribution partners suggest we will be dealing with an inventory digestion for the first half of the year, although some end markets are expected to rebound sooner. During this period of inventory adjustment, our strong balance sheet and liquidity gives us the resources to continue investing in incremental capacity and preparing Vishay for the long-term demand trends of e-mobility, sustainability and connectivity. Near term we intend to advance our distribution strategy which positions us to timely benefit from a rebound in demand,” concluded Mr. Smejkal.

    1Q 2024 Outlook
    For the first quarter of 2024, management expects revenues in the range of $735 million +/- $20 million and a gross profit margin in the range of 24.0% +/- 50 basis points.

    Conference Call
    A conference call to discuss Vishay’s fourth quarter financial results is scheduled for Wednesday, February 7, 2024 at 9:00 a.m. ET. To participate in the live conference call, please pre-register at https://register.vevent.com/register/BI3f265da18e964024a9221557bd90d469. 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 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 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; the timing of the Newport wafer fab acquisition; that the Newport wafer fab acquisition may not be consummated, including as a result of any of the conditions precedent (including the failure to obtain any required approvals or consents); global market downturn conditions and volatilities impacting the completion of the acquisition; that the 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
     December 31, 2023 September 30, 2023 December 31, 2022
          
    Net revenues$785,236  $853,653  $855,298 
    Costs of products sold 584,572   616,010   606,178 
    Gross profit 200,664   237,643   249,120 
    Gross margin 25.6%  27.8%  29.1%
          
    Selling, general, and administrative expenses 122,834   122,513   113,812 
    Operating income 77,830   115,130   135,308 
    Operating margin 9.9%  13.5%  15.8%
          
    Other income (expense):     
    Interest expense (6,454)  (7,153)  (4,490)
    Loss on early extinguishment of debt -   (18,874)  - 
    Other 9,268   7,409   (2,618)
    Total other income (expense) - net 2,814   (18,618)  (7,108)
          
    Income before taxes 80,644   96,512   128,200 
          
    Income tax expense 28,690   30,557   54,999 
          
    Net earnings 51,954   65,955   73,201 
          
    Less: net earnings attributable to noncontrolling interests 482   426   413 
          
    Net earnings attributable to Vishay stockholders$51,472  $65,529  $72,788 
          
    Basic earnings per share attributable to Vishay stockholders$0.37  $0.47  $0.51 
          
    Diluted earnings per share attributable to Vishay stockholders$0.37  $0.47  $0.51 
          
    Weighted average shares outstanding - basic 138,318   139,083   141,643 
          
    Weighted average shares outstanding - diluted 139,266   140,001   142,247 
          
    Cash dividends per share$0.10  $0.10  $0.10 



    VISHAY INTERTECHNOLOGY, INC.   
    Summary of Operations   
    (In thousands, except per share amounts)   
        
     Years ended
     December 31, 2023 December 31, 2022
     (unaudited)  
        
    Net revenues$3,402,045  $3,497,401 
    Costs of products sold* 2,427,552   2,438,412 
    Gross profit 974,493   1,058,989 
    Gross margin 28.6%  30.3%
        
    Selling, general, and administrative expenses* 488,349   443,503 
    Operating income 486,144   615,486 
    Operating margin 14.3%  17.6%
        
    Other income (expense):   
    Interest expense (25,131)  (17,129)
    Loss on early extinguishment of debt (18,874)  - 
    Other 25,263   (4,852)
    Total other income (expense) - net (18,742)  (21,981)
        
    Income before taxes 467,402   593,505 
        
    Income tax expense 141,889   163,022 
        
    Net earnings 325,513   430,483 
        
    Less: net earnings attributable to noncontrolling interests 1,693   1,673 
        
    Net earnings attributable to Vishay stockholders$323,820  $428,810 
        
    Basic earnings per share attributable to Vishay stockholders$2.32  $2.99 
        
    Diluted earnings per share attributable to Vishay stockholders$2.31  $2.98 
        
    Weighted average shares outstanding - basic 139,447   143,399 
        
    Weighted average shares outstanding - diluted 140,246   143,915 
        
    Cash dividends per share$0.40  $0.40 
        
    * The year ended December 31, 2022 includes incremental costs of products sold and selling, general, and administrative expenses separable from normal operations directly attributable to the COVID-19 pandemic of $6,661 and $546, respectively.

     


    VISHAY INTERTECHNOLOGY, INC.   
    Consolidated Condensed Balance Sheets   
    (In thousands)   
        
     December 31, 2023 December 31, 2022
     (Unaudited)  
    Assets   
    Current assets:   
    Cash and cash equivalents$972,719  $610,825 
    Short-term investments 35,808   305,272 
    Accounts receivable, net 426,674   416,178 
    Inventories:   
    Finished goods 167,083   156,234 
    Work in process 267,339   261,345 
    Raw materials 213,098   201,300 
    Total inventories 647,520   618,879 
        
    Prepaid expenses and other current assets 214,443   170,056 
    Total current assets 2,297,164   2,121,210 
        
    Property and equipment, at cost:   
    Land 77,006   75,907 
    Buildings and improvements 719,387   658,829 
    Machinery and equipment 3,053,868   2,857,636 
    Construction in progress 290,593   243,038 
    Allowance for depreciation (2,846,208)  (2,704,951)
      1,294,646   1,130,459 
        
    Right of use assets 126,829   131,193 
    Deferred income taxes 137,394   104,667 
    Goodwill 201,416   201,432 
    Other intangible assets, net 72,333   77,896 
    Other assets 110,141   98,796 
    Total assets$4,239,923  $3,865,653 



    VISHAY INTERTECHNOLOGY, INC.   
    Consolidated Condensed Balance Sheets (continued)  
    (In thousands)   
        
     December 31, 2023 December 31, 2022
     (Unaudited)  
        
    Liabilities and equity   
    Current liabilities:   
    Trade accounts payable$191,002  $189,099 
    Payroll and related expenses 161,940   166,079 
    Lease liabilities 26,485   25,319 
    Other accrued expenses 239,350   261,606 
    Income taxes 73,098   84,155 
    Total current liabilities 691,875   726,258 
        
    Long-term debt less current portion 818,188   500,937 
    U.S. transition tax payable 47,027   83,010 
    Deferred income taxes 95,776   117,183 
    Long-term lease liabilities 102,830   108,493 
    Other liabilities 87,918   92,530 
    Accrued pension and other postretirement costs 195,503   187,092 
    Total liabilities 2,039,117   1,815,503 
        
    Equity:   
    Vishay stockholders' equity   
    Common stock 13,319   13,291 
    Class B convertible common stock 1,210   1,210 
    Capital in excess of par value 1,291,499   1,352,321 
    Retained earnings 1,041,372   773,228 
    Treasury stock (at cost) (161,656)  (82,972)
    Accumulated other comprehensive income (loss) 10,337   (10,827)
    Total Vishay stockholders' equity 2,196,081   2,046,251 
    Noncontrolling interests 4,725   3,899 
    Total equity 2,200,806   2,050,150 
    Total liabilities and equity$4,239,923  $3,865,653 



    VISHAY INTERTECHNOLOGY, INC.   
    Consolidated Condensed Statements of Cash Flows   
    (In thousands) 
     Years ended
     December 31, 2023 December 31, 2022
     (unaudited)  
    Operating activities   
    Net earnings$325,513  $430,483 
    Adjustments to reconcile net earnings to net cash provided by operating activities:   
    Depreciation and amortization 184,373   163,991 
    (Gain) loss on disposal of property and equipment (554)  (455)
    Inventory write-offs for obsolescence 37,426   26,898 
    Pensions and other postretirement benefits, net of contributions (9,559)  (615)
    Stock compensation expense 16,532   6,545 
    Loss on early extinguishment of debt 18,874   - 
    Deferred income taxes 36,783   38,677 
    Other 9,442   835 
    Change in U.S. transition tax liability (27,670)  (14,757)
    Change in repatriation tax liability (63,600)  (25,201)
    Changes in operating assets and liabilities (161,857)  (142,113)
    Net cash provided by operating activities 365,703   484,288 
        
    Investing activities   
    Purchase of property and equipment (329,410)  (325,308)
    Proceeds from sale of property and equipment 1,156   1,198 
    Purchase and deposits for businesses, net of cash acquired (13,753)  (50,000)
    Purchase of short-term investments (117,523)  (285,956)
    Maturity of short-term investments 387,898   132,901 
    Other investing activities (1,219)  (1,766)
    Net cash used in investing activities (72,851)  (528,931)
        
    Financing activities   
    Proceeds from long-term borrowings 750,000   - 
    Repurchase of convertible debt instruments (386,745)  - 
    Net proceeds (payments) on revolving credit facility (42,000)  42,000 
    Debt issuance costs (26,823)  - 
    Cash paid for capped call (94,200)  - 
    Dividends paid to common stockholders (50,787)  (52,348)
    Dividends paid to Class B common stockholders (4,839)  (4,839)
    Repurchase of common stock held in treasury (78,684)  (82,972)
    Distributions to noncontrolling interests (867)  (741)
    Cash withholding taxes paid when shares withheld for vested equity awards (3,994)  (2,123)
    Net cash provided by (used in) financing activities 61,061   (101,023)
    Effect of exchange rate changes on cash and cash equivalents 7,981   (17,617)
        
    Net increase (decrease) in cash and cash equivalents 361,894   (163,283)
        
    Cash and cash equivalents at beginning of period 610,825   774,108 
    Cash and cash equivalents at end of period$972,719  $610,825 



    VISHAY INTERTECHNOLOGY, INC.         
    Reconciliation of Adjusted Earnings Per Share         
    (Unaudited - In thousands, except per share amounts)         
     Fiscal quarters ended Years ended
     December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022
              
    GAAP net earnings attributable to Vishay stockholders$51,472 $65,529  $72,788  $323,820  $428,810 
              
    Reconciling items affecting gross profit:         
    Impact of the COVID-19 pandemic$- $-  $-  $-  $6,661 
              
    Other reconciling items affecting operating income:         
    Impact of the COVID-19 pandemic$- $-  $-  $-  $546 
              
    Reconciling items affecting other income (expense):         
    Loss on early extinguishment of debt$- $18,874  $-  $18,874  $- 
              
    Reconciling items affecting tax expense (benefit):         
    Effect of changes in uncertain tax positions$- $-  $-  $-  $(5,941)
    Effects of changes in valuation allowances -  -   (33,669)  -   (33,669)
    Effect of change in indefinite reversal assertion -  -   59,642   -   59,642 
    Tax effects of pre-tax items above -  (498)  -   (498)  (1,802)
              
    Adjusted net earnings$51,472 $83,905  $98,761  $342,196  $454,247 
              
    Adjusted weighted average diluted shares outstanding 139,266  140,001   142,247   140,246   143,915 
              
    Adjusted earnings per diluted share$0.37 $0.60  $0.69  $2.44  $3.16 



    VISHAY INTERTECHNOLOGY, INC.         
    Reconciliation of Free Cash         
    (Unaudited - In thousands)         
     Fiscal quarters ended Years ended
     December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022
    Net cash provided by operating activities$6,268  $122,303   166,496  $365,703  $484,288 
    Proceeds from sale of property and equipment 122   21   726   1,156   1,198 
    Less: Capital expenditures (145,331)  (66,829)  (153,133)  (329,410)  (325,308)
    Free cash$(138,941) $55,495  $14,089  $37,449  $160,178 



    VISHAY INTERTECHNOLOGY, INC.         
    Reconciliation of EBITDA and Adjusted EBITDA         
    (Unaudited - In thousands)         
     Fiscal quarters ended Years ended
     December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022
              
    GAAP net earnings attributable to Vishay stockholders$51,472  $65,529  $72,788  $323,820  $428,810 
    Net earnings attributable to noncontrolling interests 482   426   413   1,693   1,673 
    Net earnings$51,954  $65,955  $73,201  $325,513  $430,483 
              
    Interest expense$6,454  $7,153  $4,490  $25,131  $17,129 
    Interest income (9,934)  (9,183)  (4,374)  (31,353)  (7,560)
    Income taxes 28,690   30,557   54,999   141,889   163,022 
    Depreciation and amortization 50,463   46,216   42,690   184,373   163,991 
    EBITDA$127,627  $140,698  $171,006  $645,553  $767,065 
              
    Reconciling items         
    Impact of the COVID-19 pandemic$-  $-  $-  $-  $7,207 
    Loss on early extinguishment of debt -   18,874   -   18,874   - 
              
    Adjusted EBITDA$127,627  $159,572  $171,006  $664,427  $774,272 
              
    Adjusted EBITDA margin** 16.3%  18.7%  20.0%  19.5%  22.1%
              
    ** Adjusted EBITDA as a percentage of net revenues         

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