• Vishay Intertechnology Reports Fourth Quarter and Fiscal Year 2022 Results

    Source: Nasdaq GlobeNewswire / 08 Feb 2023 06:10:00   America/Chicago

    MALVERN, Pa., Feb. 08, 2023 (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, 2022.

    Highlights

    • 4Q 2022 revenues of $855.3 million, a decrease of 7.5% versus 3Q 2022, reflecting stable pricing and a volume decline; up 1.5% versus 4Q 2021.
    • 4Q 2022 GAAP EPS of $0.51 per share; adjusted EPS of $0.69 per share.
    • FY 2022 capex of $325.3 million.
    • FY 2022 free cash flow of $160.2 million.
    • FY 2022 total cash return to stockholders of $140.2 million.

    “During the fourth quarter we began to see indications of an inventory correction, which impacted revenues and our gross profit margin. Given that over 60% of our revenue is derived from the automotive and industrial ends markets which are experiencing strong demand from mega electrification trends, we are anticipating a narrow inventory correction in the first half of the year. For 2022, Vishay continued its track record of strong cash flow generation, providing ample funds to return a total of $140.2 million to stockholders through a combination of dividend payments and stock repurchases. This equates to 87.5% of free cash flow, which is well above the 70% floor we have committed to in our stockholders’ return policy,” said Joel Smejkal, president and CEO.

    “Looking ahead, Vishay will implement a number of initiatives to prepare the company to meet our customers’ growing demand while investing more heavily in technical resources and capacity. Our goal in the near term is to position Vishay to be ready to fully participate in mega electrification trends in our end markets thereby generating substantial top line growth and expanded margins,” concluded Mr. Smejkal.

    1Q 2023 Outlook
    For the first quarter of 2023, management expects revenues in the range of $825 million and $865 million and a gross profit margin in the range of 28.0% +/- 50 basis points.

    Conference Call
    Management will host a conference call today, February 8, 2023, at 9:00 a.m. ET to discuss fourth quarter and full year 2022 results. The dial-in number for the conference call is 877-407-0989 (+1 201-389-0921, if calling from outside the United States) and the access code is 13734859. Interested parties may also access a real-time webcast through the Investor Relations section of the company’s website at http://ir.vishay.com. A presentation accompanying management’s prepared remarks will be posted approximately 30 minutes before the conference call starts. For interested parties who are unable to join the live call, there will be a replay of the conference call from 12:00 p.m. ET on Wednesday, February 8, 2023, through 11:59 p.m. ET on Wednesday, February 22, 2023. The telephone number for the replay is +1 877-660-6853 (+1 201-612-7415, if calling from outside the United States or Canada) and the access code is 13734859.   

    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, 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 “guide,” “will,” “expect,” “anticipate,” “looking ahead” 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 because of COVID-19 or otherwise; 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.

    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    
    (In thousands, except per share amounts)    
         
     Years ended 
     December 31, 2022 December 31, 2021 
     (unaudited)   
         
    Net revenues$3,497,401  $3,240,487  
    Costs of products sold* 2,438,412   2,352,574  
    Gross profit 1,058,989   887,913  
      Gross margin 30.3%  27.4% 
         
    Selling, general, and administrative expenses* 443,503   420,111  
    Operating income 615,486   467,802  
      Operating margin 17.6%  14.4% 
         
    Other income (expense):    
      Interest expense (17,129)  (17,538) 
      Other (4,852)  (15,654) 
      Total other income (expense) - net (21,981)  (33,192) 
         
    Income before taxes 593,505   434,610  
         
    Income tax expense 163,022   135,673  
         
    Net earnings 430,483   298,937  
         
    Less: net earnings attributable to noncontrolling interests 1,673   967  
         
    Net earnings attributable to Vishay stockholders$428,810  $297,970  
         
    Basic earnings per share attributable to Vishay stockholders$2.99  $2.05  
         
    Diluted earnings per share attributable to Vishay stockholders$2.98  $2.05  
         
    Weighted average shares outstanding - basic 143,399   145,005  
         
    Weighted average shares outstanding - diluted 143,915   145,495  
         
    Cash dividends per share$0.400  $0.385  
         
    * 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.      
    Summary of Operations      
    (Unaudited - In thousands, except per share amounts)      
           
     Fiscal quarters ended 
     December 31, 2022 October 1, 2022 December 31, 2021 
           
    Net revenues$855,298  $924,798  $843,072  
    Costs of products sold 606,178   635,260   613,116  
    Gross profit 249,120   289,538   229,956  
      Gross margin 29.1%  31.3%  27.3% 
           
    Selling, general, and administrative expenses 113,812   106,436   108,311  
    Operating income 135,308   183,102   121,645  
      Operating margin 15.8%  19.8%  14.4% 
           
    Other income (expense):      
      Interest expense (4,490)  (4,110)  (4,292) 
      Other (2,618)  2,137   (3,495) 
      Total other income (expense) - net (7,108)  (1,973)  (7,787) 
           
    Income before taxes 128,200   181,129   113,858  
           
    Income tax expense 54,999   40,566   77,027  
           
    Net earnings 73,201   140,563   36,831  
           
    Less: net earnings attributable to noncontrolling interests 413   502   308  
           
    Net earnings attributable to Vishay stockholders$72,788  $140,061  $36,523  
           
    Basic earnings per share attributable to Vishay stockholders$0.51  $0.98  $0.25  
           
    Diluted earnings per share attributable to Vishay stockholders$0.51  $0.98  $0.25  
           
    Weighted average shares outstanding - basic 141,643   142,887   145,019  
           
    Weighted average shares outstanding - diluted 142,247   143,447   145,617  
           
    Cash dividends per share$0.100  $0.100  $0.100  
           
      
           



    VISHAY INTERTECHNOLOGY, INC.    
    Consolidated Condensed Balance Sheets    
    (In thousands)    
         
     December 31, 2022 December 31, 2021 
     (Unaudited)   
    Assets    
    Current assets:    
      Cash and cash equivalents$610,825  $774,108  
      Short-term investments 305,272   146,743  
      Accounts receivable, net 416,178   396,458  
      Inventories:    
        Finished goods 156,234   147,293  
        Work in process 261,345   226,496  
        Raw materials 201,300   162,711  
      Total inventories 618,879   536,500  
         
      Prepaid expenses and other current assets 170,056   156,689  
    Total current assets 2,121,210   2,010,498  
         
    Property and equipment, at cost:    
      Land 75,907   74,646  
      Buildings and improvements 658,829   639,879  
      Machinery and equipment 2,857,636   2,758,262  
      Construction in progress 243,038   145,828  
      Allowance for depreciation (2,704,951)  (2,639,136) 
      1,130,459   979,479  
         
    Right of use assets 131,193   117,635  
    Deferred income taxes 104,667   95,037  
    Goodwill 201,432   165,269  
    Other intangible assets, net 77,896   67,714  
    Other assets 98,796   107,625  
         Total assets$3,865,653  $3,543,257  
         
      
         



    VISHAY INTERTECHNOLOGY, INC.    
    Consolidated Condensed Balance Sheets (continued)   
    (In thousands)    
         
     December 31, 2022 December 31, 2021 
     (Unaudited)   
         
    Liabilities and equity    
    Current liabilities:    
      Trade accounts payable$189,099  $254,049  
      Payroll and related expenses 166,079   162,694  
      Lease liabilities 25,319   23,392  
      Other accrued expenses 261,606   218,089  
      Income taxes 84,155   35,443  
    Total current liabilities 726,258   693,667  
         
    Long-term debt less current portion 500,937   455,666  
    U.S. transition tax payable 83,010   110,681  
    Deferred income taxes 117,183   69,003  
    Long-term lease liabilities 108,493   99,987  
    Other liabilities 92,530   95,861  
    Accrued pension and other postretirement costs 187,092   271,672  
    Total liabilities 1,815,503   1,796,537  
         
    Equity:    
    Vishay stockholders' equity    
      Common stock 13,291   13,271  
      Class B convertible common stock 1,210   1,210  
      Capital in excess of par value 1,352,321   1,347,830  
      Retained earnings 773,228   401,694  
      Treasury stock (at cost) (82,972)  -  
      Accumulated other comprehensive income (loss) (10,827)  (20,252) 
      Total Vishay stockholders' equity 2,046,251   1,743,753  
    Noncontrolling interests 3,899   2,967  
    Total equity 2,050,150   1,746,720  
    Total liabilities and equity$3,865,653  $3,543,257  
         
      
         



    VISHAY INTERTECHNOLOGY, INC.    
    Consolidated Condensed Statements of Cash Flows    
    (In thousands)  
     Years ended 
     December 31, 2022 December 31, 2021 
     (unaudited)   
    Operating activities    
    Net earnings$430,483  $298,937  
    Adjustments to reconcile net earnings to net cash provided by operating activities:    
          Depreciation and amortization 163,991   167,037  
          (Gain) loss on disposal of property and equipment (455)  (303) 
          Inventory write-offs for obsolescence 26,898   20,657  
          Pensions and other postretirement benefits, net of contributions (615)  2,106  
          Deferred income taxes 38,677   50,613  
          Other 7,380   16,226  
          Change in U.S. transition tax liability (14,757)  (14,757) 
          Change in repatriation tax liability (25,201)  -  
          Changes in operating assets and liabilities, net of effects of businesses acquired (142,113)  (83,412) 
    Net cash provided by operating activities 484,288   457,104  
         
    Investing activities    
    Purchase of property and equipment (325,308)  (218,372) 
    Proceeds from sale of property and equipment 1,198   1,317  
    Purchase of businesses, net of cash acquired (50,000)  (20,847) 
    Purchase of short-term investments (285,956)  (140,603) 
    Maturity of short-term investments 132,901   147,893  
    Other investing activities (1,766)  129  
    Net cash used in investing activities (528,931)  (230,483) 
         
    Financing activities    
    Repurchase of convertible debt instruments -   (300) 
    Net proceeds (payments) on revolving credit lines 42,000   -  
    Dividends paid to common stockholders (52,348)  (51,094) 
    Dividends paid to Class B common stockholders (4,839)  (4,657) 
    Repurchase of common stock held in treasury (82,972)  -  
    Distributions to noncontrolling interests (741)  (800) 
    Cash withholding taxes paid when shares withheld for vested equity awards (2,123)  (1,963) 
    Net cash used in financing activities (101,023)  (58,814) 
    Effect of exchange rate changes on cash and cash equivalents (17,617)  (13,573) 
         
    Net increase (decrease) in cash and cash equivalents (163,283)  154,234  
         
    Cash and cash equivalents at beginning of period 774,108   619,874  
    Cash and cash equivalents at end of period$610,825  $774,108  
         



    VISHAY INTERTECHNOLOGY, INC.          
    Reconciliation of Adjusted Earnings Per Share          
    (Unaudited - In thousands, except per share amounts)          
     Fiscal quarters ended Years ended 
     December 31, 2022 October 1, 2022 December 31, 2021 December 31, 2022 December 31, 2021 
               
    GAAP net earnings attributable to Vishay stockholders$72,788  $140,061  $36,523 $428,810  $297,970  
               
    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 tax expense (benefit):          
    Effects of changes in uncertain tax positions$-  $(5,941) $- $(5,941) $-  
    Effects of changes in valuation allowances (33,669)  -   -  (33,669)  (5,714) 
    Effect of change in indefinite reversal assertion 59,642   -   -  59,642   -  
    Changes in tax laws and regulations -   -   53,316  -   45,040  
    Tax effects of pre-tax items above -   -   -  (1,802)  -  
               
               
    Adjusted net earnings$98,761  $134,120  $89,839 $454,247  $337,296  
               
    Adjusted weighted average diluted shares outstanding 142,247   143,447   145,617  143,915   145,495  
               
    Adjusted earnings per diluted share$0.69  $0.93  $0.62 $3.16  $2.32  
               



    VISHAY INTERTECHNOLOGY, INC.          
    Reconciliation of Free Cash          
    (Unaudited - In thousands)          
     Fiscal quarters ended Years ended 
     December 31, 2022 October 1, 2022 December 31, 2021 December 31, 2022 December 31, 2021 
    Net cash provided by operating activities$166,496  $209,480  $146,652  $484,288  $457,104  
    Proceeds from sale of property and equipment 726   95   60   1,198   1,317  
    Less: Capital expenditures (153,133)  (76,475)  (100,216)  (325,308)  (218,372) 
    Free cash$14,089  $133,100  $46,496  $160,178  $240,049  
               



    VISHAY INTERTECHNOLOGY, INC.          
    Reconciliation of EBITDA and Adjusted EBITDA          
    (Unaudited - In thousands)          
     Fiscal quarters ended Years ended 
     December 31, 2022 October 1, 2022 December 31, 2021 December 31, 2022 December 31, 2021 
               
    GAAP net earnings attributable to Vishay stockholders$72,788  $140,061  $36,523  $428,810  $297,970  
    Net earnings attributable to noncontrolling interests 413   502   308   1,673   967  
    Net earnings$73,201  $140,563  $36,831  $430,483  $298,937  
               
    Interest expense$4,490  $4,110  $4,292  $17,129  $17,538  
    Interest income (4,374)  (1,836)  (362)  (7,560)  (1,269) 
    Income taxes 54,999   40,566   77,027   163,022   135,673  
    Depreciation and amortization 42,690   40,334   41,942   163,991   167,037  
    EBITDA$171,006  $223,737  $159,730  $767,065  $617,916  
               
    Reconciling items          
    Impact of the COVID-19 pandemic$-  $-  $-  $7,207  $-  
               
    Adjusted EBITDA$171,006  $223,737  $159,730  $774,272  $617,916  
               
    Adjusted EBITDA margin** 20.0%  24.2%  18.9%  22.1%  19.1% 
               
    ** Adjusted EBITDA as a percentage of net revenues          
               

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