VSH Vishay Intertechnology

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 ended March 31, 2018.

Revenues for the fiscal quarter ended March 31, 2018 were $716.8 million, compared to $673.5 million for the fiscal quarter ended December 31, 2017, and $604.8 million for the fiscal quarter ended April 1, 2017.  Net earnings attributable to Vishay stockholders for the fiscal quarter ended March 31, 2018 were $62.4 million, or $0.39 per diluted share, compared to a net loss attributable to Vishay stockholders of $177.7 million, or $(1.23) per share for the fiscal quarter ended December 31, 2017, and net earnings attributable to Vishay stockholders of $36.7 million, or $0.24 per diluted share for the fiscal quarter ended April 1, 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 $0.40, $0.37, and $0.28 for the fiscal quarters ended March 31, 2018, December 31, 2017, and April 1, 2017, respectively.

Commenting on the results for the first quarter 2018, Dr. Gerald Paul, President and Chief Executive Officer, stated, “In the first quarter, Vishay continued to enjoy excellent business conditions in virtually all markets; especially, Vishay’s key markets of automotive and industrial show unbroken strength. The present favorable market conditions neither represent a spike of demand by a few applications like in 2000 nor a recovery from a general crisis like in 2010. We trust in an accelerated growth trend of our markets—in particular, the automotive and industrial end markets—for the years to come. We prepare ourselves by continuing to expand manufacturing capacities for our constrained key product lines while remaining careful in adding operational fixed costs.”

Commenting on the outlook Dr. Paul stated, “For the second quarter we guide for revenues of $740 to $780 million and gross margins of 28.5% to 29.5% at the exchange rates for the first quarter.”

Effective January 1, 2018, the Company adopted several new accounting standards, including ASU 2014-09, "Revenue from Contracts with Customers" and related guidance; ASU 2016-01, "Recognition and Measurement of Financial Assets and Liabilities;" and ASU 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost."  Where required by the applicable new standards, prior periods have been recast to retrospectively reflect the impact of the standards.  Recast statements of operations for each quarter of 2017, and the full years 2017 and 2016, are included in the financial tables in this press release.  The impact of these new accounting standards on income (loss) before taxes was not material, though the new standards impacted various individual line items, which slightly changed historical gross margin and operating margin calculations.    More detailed discussion of the impact of these new accounting standards will be included in the Company's Quarterly Report on Form 10-Q when it is filed.

A conference call to discuss Vishay’s first quarter financial results is scheduled for Tuesday, May 8, 2018 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 1357089.

There will be a replay of the conference call from 12:00 p.m. ET on Tuesday, May 8, 2018 through 11:59 p.m. ET on Tuesday, May 15, 2018. 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 1357089.

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, manufacturing capacities, customer confidence, 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; delays or difficulties in expanding our manufacturing capacities; 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;  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 HenriciSenior Vice President, Corporate Communications+1-610-644-1300

VISHAY INTERTECHNOLOGY, INC. Summary of Operations(Unaudited - In thousands, except per share amounts)

	Fiscal quarters ended
	March 31, 2018				December 31, 2017*				April 1, 2017*
Net revenues	$	716,795			$	673,462			$	604,801
Costs of products sold		511,495				496,086				443,052
Gross profit		205,300				177,376				161,749
Gross margin		28.6	%			26.3	%			26.7	%
Selling, general, and administrative expenses		101,238				95,291				92,702
Restructuring and severance costs		-				6,079				1,469
Operating income		104,062				76,006				67,578
Operating margin		14.5	%			11.3	%			11.2	%
Other income (expense):
Interest expense		(7,677	)			(7,046	)			(6,790	)
Other components of net periodic pension cost		(3,519	)			(3,470	)			(2,890	)
Other		(847	)			587				(396	)
Gain (loss) on disposal of equity affiliate		-				948				(7,060	)
Total other income (expense) - net		(12,043	)			(8,981	)			(17,136	)
Income (loss) before taxes		92,019				67,025				50,442
Income taxes		29,474				244,526				13,493
Net earnings (loss)		62,545				(177,501	)			36,949
Less: net earnings (loss) attributable to noncontrolling interests		179				156				230
Net earnings (loss) attributable to Vishay stockholders	$	62,366			$	(177,657	)		$	36,719
Basic earnings (loss) per share attributable to Vishay stockholders	$	0.43			$	(1.23	)		$	0.25
Diluted earnings (loss) per share attributable to Vishay stockholders	$	0.39			$	(1.23	)		$	0.24
Weighted average shares outstanding - basic		144,327				144,165				146,274
Weighted average shares outstanding - diluted		159,502				144,165				154,876
Cash dividends per share	$	0.0675			$	0.0675			$	0.0625
*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																Years ended
	April 1, 2017*				July 1, 2017*				September 30, 2017*				December 31, 2017*				December 31, 2017*				December 31, 2016*
Net revenues	$	604,801			$	643,164			$	677,941			$	673,462			$	2,599,368			$	2,317,328
Costs of products sold		443,052				469,327				487,794				496,086				1,896,259				1,743,506
Gross profit		161,749				173,837				190,147				177,376				703,109				573,822
Gross margin		26.7	%			27.0	%			28.0	%			26.3	%			27.0	%			24.8	%
Selling, general, and administrative expenses		92,702				88,351				91,487				95,291				367,831				356,006
Restructuring and severance costs		1,469				481				3,244				6,079				11,273				19,199
Impairment of intangible assets		-				-				-				-				-				1,559
Operating income		67,578				85,005				95,416				76,006				324,005				197,058
Operating margin		11.2	%			13.2	%			14.1	%			11.3	%			12.5	%			8.5	%
Other income (expense):
Interest expense		(6,790	)			(7,076	)			(6,938	)			(7,046	)			(27,850	)			(25,623	)
Other components of net periodic pension cost		(2,890	)			(2,969	)			(3,088	)			(3,470	)			(12,417	)			(16,020	)
Other		(396	)			749				798				587				1,738				4,716
Gain (loss) on disposal of equity affiliate		(7,060	)			-				-				948				(6,112	)			4,597
Gain on early extinguishment of debt		-				-				-				-				-				8,809
U.S. pension settlement charges		-				-				-				-				-				(79,321	)
Total other income (expense) - net		(17,136	)			(9,296	)			(9,228	)			(8,981	)			(44,641	)			(102,842	)
Income (loss) before taxes		50,442				75,709				86,188				67,025				279,364				94,216
Income taxes		13,493				19,300				21,605				244,526				298,924				44,843
Net earnings (loss)		36,949				56,409				64,583				(177,501	)			(19,560	)			49,373
Less: net earnings (loss) attributable to noncontrolling interests		230				219				179				156				784				581
Net earnings (loss) attributable to Vishay stockholders	$	36,719			$	56,190			$	64,404			$	(177,657	)		$	(20,344	)		$	48,792
Basic earnings (loss) per share attributable to Vishay stockholders	$	0.25			$	0.38			$	0.44			$	(1.23	)		$	(0.14	)		$	0.33
Diluted earnings (loss) per share attributable to Vishay stockholders	$	0.24			$	0.36			$	0.41			$	(1.23	)		$	(0.14	)		$	0.32
Weighted average shares outstanding - basic		146,274				146,381				145,728				144,165				145,633				147,152
Weighted average shares outstanding - diluted		154,876				155,300				156,701				144,165				145,633				150,697
Cash dividends per share	$	0.0625			$	0.0625			$	0.0625			$	0.0675			$	0.255			$	0.250
*Recast for the retrospective adoption of ASUs 2014-09 and 2017-07

VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets(Unaudited - in thousands)

	March 31, 2018				December 31, 2017*
Assets
Current assets:
Cash and cash equivalents	$	839,591			$	748,032
Short-term investments		501,221				547,136
Accounts receivable, net		376,537				340,027
Inventories:
Finished goods		132,996				127,272
Work in process		184,613				170,319
Raw materials		143,039				132,068
Total inventories		460,648				429,659
Prepaid expenses and other current assets		116,948				130,336
Total current assets		2,294,945				2,195,190
Property and equipment, at cost:
Land		92,929				92,285
Buildings and improvements		617,071				606,168
Machinery and equipment		2,461,857				2,415,769
Construction in progress		94,027				103,058
Allowance for depreciation		(2,358,549	)			(2,311,522	)
		907,335				905,758
Goodwill		147,047				142,742
Other intangible assets, net		73,072				69,754
Other assets		148,111				148,645
Total assets	$	3,570,510			$	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)

	March 31, 2018				December 31, 2017*
Liabilities and stockholders' equity
Current liabilities:
Notes payable to banks	$	56			$	4
Trade accounts payable		191,935				222,373
Payroll and related expenses		136,386				135,702
Other accrued expenses		161,990				154,230
Income taxes		38,676				50,226
Total current liabilities		529,043				562,535
Long-term debt less current portion		406,385				370,470
U.S. transition tax payable		165,600				151,200
Deferred income taxes		342,207				336,465
Other liabilities		77,425				75,249
Accrued pension and other postretirement costs		283,754				281,701
Total liabilities		1,804,414				1,777,620
Redeemable convertible debentures		250,990				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		1,753,762				1,752,506
Retained earnings (accumulated deficit)		(307,833	)			(362,254	)
Accumulated other comprehensive income (loss)		52,544				25,714
Total Vishay stockholders' equity		1,512,895				1,430,367
Noncontrolling interests		2,211				2,032
Total equity		1,515,106				1,432,399
Total liabilities, temporary equity, and equity	$	3,570,510			$	3,462,089
*Recast for the retrospective adoption of ASUs 2014-09 and 2017-07

VISHAY INTERTECHNOLOGY, INC. Consolidated Statements of Cash Flows(Unaudited - in thousands)

	Fiscal quarters ended
	March 31, 2018				April 1, 2017
Operating activities
Net earnings	$	62,545			$	36,949
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization		40,558				40,212
(Gain) loss on disposal of property and equipment		(176	)			60
Accretion of interest on convertible debentures		1,309				1,211
Inventory write-offs for obsolescence		5,457				4,834
Loss on disposal of equity affiliate		-				7,060
Deferred income taxes		7,014				4,307
Other		2,908				2,026
Changes in operating assets and liabilities, net of effects of businesses acquired		(72,756	)			(52,985	)
Net cash provided by operating activities		46,859				43,674
Investing activities
Purchase of property and equipment		(28,273	)			(16,668	)
Proceeds from sale of property and equipment		184				943
Purchase of businesses, net of cash acquired		(12,072	)			-
Purchase of short-term investments		(39,243	)			(151,886	)
Maturity of short-term investments		93,194				147,530
Other investing activities		(935	)			(5,971	)
Net cash provided by (used in) investing activities		12,855				(26,052	)
Financing activities
Net proceeds (payments) on revolving credit lines		34,000				20,000
Net changes in short-term borrowings		52				8
Dividends paid to common stockholders		(8,918	)			(8,378	)
Dividends paid to Class B common stockholders		(817	)			(758	)
Cash withholding taxes paid when shares withheld for vested equity awards		(2,297	)			(1,971	)
Other financing activities		-				(1,255	)
Net cash provided by financing activities		22,020				7,646
Effect of exchange rate changes on cash and cash equivalents		9,825				2,337
Net increase in cash and cash equivalents		91,559				27,605
Cash and cash equivalents at beginning of period		748,032				471,781
Cash and cash equivalents at end of period	$	839,591			$	499,386

VISHAY INTERTECHNOLOGY, INC. Reconciliation of Adjusted Earnings Per Share(Unaudited - In thousands, except per share amounts)

	Fiscal quarters ended
	March 31, 2018			December 31, 2017				April 1, 2017
GAAP net earnings (loss) attributable to Vishay stockholders	$	62,366		$	(177,657	)		$	36,719
Reconciling items affecting operating income:
Restructuring and severance costs	$	-		$	6,079			$	1,469
Reconciling items affecting other income (expense):
Loss (gain) on disposal of equity affiliate	$	-		$	(948	)		$	7,060
Reconciling items affecting tax expense (benefit):
Enactment of TCJA	$	-		$	234,855			$	-
Effects of cash repatriation program		1,316			(2,702	)			(968	)
Effects of changes in uncertain tax positions		-			2,369				-
Tax effects of pre-tax items above		-			(2,060	)			(441	)
Adjusted net earnings	$	63,682		$	59,936			$	43,839
Adjusted weighted average diluted shares outstanding		159,502			161,177				154,876
Adjusted earnings per diluted share	$	0.40		$	0.37			$	0.28

VISHAY INTERTECHNOLOGY, INC. Reconciliation of Free Cash(Unaudited - In thousands)

	Fiscal quarters ended
	March 31, 2018				December 31, 2017				April 1, 2017
Net cash provided by operating activities	$	46,859			$	122,932			$	43,674
Proceeds from sale of property and equipment		184				201				943
Less: Capital expenditures		(28,273	)			(85,642	)			(16,668	)
Free cash	$	18,770			$	37,491			$	27,949

VISHAY INTERTECHNOLOGY, INC. Reconciliation of EBITDA and Adjusted EBITDA(Unaudited - In thousands)

	Fiscal quarters ended
	March 31, 2018				December 31, 2017				April 1, 2017
GAAP net earnings (loss) attributable to Vishay stockholders	$	62,366			$	(177,657	)		$	36,719
Net earnings (loss) attributable to noncontrolling interests		179				156				230
Net earnings (loss)	$	62,545			$	(177,501	)		$	36,949
Interest expense	$	7,677			$	7,046			$	6,790
Interest income		(2,036	)			(1,883	)			(1,263	)
Income taxes		29,474				244,526				13,493
Depreciation and amortization		40,558				41,827				40,212
EBITDA	$	138,218			$	114,015			$	96,181
Reconciling items
Restructuring and severance costs	$	-			$	6,079			$	1,469
Loss (gain) on disposal of equity affiliate		-				(948	)			7,060
Adjusted EBITDA	$	138,218			$	119,146			$	104,710
Adjusted EBITDA margin**		19.3	%			17.7	%			17.3	%
** Adjusted EBITDA as a percentage of net revenues