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 April 2, 2022.
Revenues for the fiscal quarter ended April 2, 2022 were $853.8
million, compared to $843.1 million for the fiscal quarter ended
December 31, 2021, and $764.6 million for the fiscal quarter ended
April 3, 2021. Net earnings attributable to Vishay
stockholders for the fiscal quarter ended April 2, 2022 were $103.6
million, or $0.71 per diluted share, compared to $36.5 million, or
$0.25 per diluted share for the fiscal quarter ended December 31,
2021, and $71.4 million, or $0.49 per diluted share for the fiscal
quarter ended April 3, 2021.
As summarized on the attached reconciliation schedule, the prior
periods presented include items affecting comparability.
Adjusted earnings per diluted share, which exclude these unusual
tax items, were $0.71, $0.62, and $0.46 for the fiscal quarters
ended April 2, 2022, December 31, 2021, and April 3, 2022,
respectively.
Commenting on results for the first quarter 2022, Dr. Gerald
Paul, President and Chief Executive Officer stated, “Revenues came
in at the high end of our guidance. Despite ongoing increases in
transportation costs, metal prices and higher general inflation,
Vishay achieved contribution margins at the higher end of the
historical range, supported by continued price increases and
positive singularities. In the coming quarters we anticipate to
continue to reach historical levels.”
Dr. Paul continued, “All regions and major end markets remain
strong. There is no decline visible at this point in time. The
supply chain remains lean. Sales of Vishay’s products to end
customers by our distribution partners increased again to all-time
highs in all regions while inventories of our products at
distribution partners stayed flat. For the year we anticipate solid
generation of free cash despite capital expenditures running at
higher levels than in past years.”
Commenting on the outlook Dr. Paul stated, “Taking into account
production challenges related to COVID lock-downs in Shanghai in
April, we guide for the second quarter 2022 for revenues in the
range of $830 to $870 million at a gross margin of 28.1% plus/minus
50 basis points, assuming the same exchange rates versus the dollar
as in the first quarter.”
A conference call to discuss Vishay’s first quarter financial
results is scheduled for Tuesday, May 3, 2022 at 9:00 a.m. ET. 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 13728314.
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, May 3, 2022 through 11:59 p.m. ET on Tuesday, May 17,
2022. 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 13728314.
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, margins, product
pricing, product demand, anticipated areas of growth, market
segment performance, capital expenditures, 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 “guide,” “will,” “expect,” “anticipate,” 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 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 |
|
|
April 2, 2022 |
|
December 31, 2021 |
|
April 3, 2021 |
|
|
|
|
|
|
|
|
Net revenues |
$ |
853,793 |
|
|
$ |
843,072 |
|
|
$ |
764,632 |
|
|
Costs of
products sold |
|
594,685 |
|
|
|
613,116 |
|
|
|
561,683 |
|
|
Gross
profit |
|
259,108 |
|
|
|
229,956 |
|
|
|
202,949 |
|
|
Gross margin |
|
30.3 |
% |
|
|
27.3 |
% |
|
|
26.5 |
% |
|
|
|
|
|
|
|
|
Selling,
general, and administrative expenses |
|
112,855 |
|
|
|
108,311 |
|
|
|
105,685 |
|
|
Operating
income |
|
146,253 |
|
|
|
121,645 |
|
|
|
97,264 |
|
|
Operating margin |
|
17.1 |
% |
|
|
14.4 |
% |
|
|
12.7 |
% |
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
Interest expense |
|
(4,222 |
) |
|
|
(4,292 |
) |
|
|
(4,376 |
) |
|
Other |
|
(5,751 |
) |
|
|
(3,495 |
) |
|
|
(5,731 |
) |
|
Total other income (expense) - net |
|
(9,973 |
) |
|
|
(7,787 |
) |
|
|
(10,107 |
) |
|
|
|
|
|
|
|
|
Income
before taxes |
|
136,280 |
|
|
|
113,858 |
|
|
|
87,157 |
|
|
|
|
|
|
|
|
|
Income tax
expense |
|
32,330 |
|
|
|
77,027 |
|
|
|
15,514 |
|
|
|
|
|
|
|
|
|
Net
earnings |
|
103,950 |
|
|
|
36,831 |
|
|
|
71,643 |
|
|
|
|
|
|
|
|
|
Less: net
earnings attributable to noncontrolling interests |
|
377 |
|
|
|
308 |
|
|
|
208 |
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Vishay stockholders |
$ |
103,573 |
|
|
$ |
36,523 |
|
|
$ |
71,435 |
|
|
|
|
|
|
|
|
|
Basic
earnings per share attributable to Vishay stockholders |
$ |
0.71 |
|
|
$ |
0.25 |
|
|
$ |
0.49 |
|
|
|
|
|
|
|
|
|
Diluted
earnings per share attributable to Vishay stockholders |
$ |
0.71 |
|
|
$ |
0.25 |
|
|
$ |
0.49 |
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - basic |
|
145,053 |
|
|
|
145,019 |
|
|
|
144,968 |
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - diluted |
|
145,553 |
|
|
|
145,617 |
|
|
|
145,463 |
|
|
|
|
|
|
|
|
|
Cash
dividends per share |
$ |
0.100 |
|
|
$ |
0.100 |
|
|
$ |
0.095 |
|
|
VISHAY INTERTECHNOLOGY, INC. |
|
Consolidated Condensed Balance Sheets |
|
(In
thousands) |
|
|
|
|
|
|
|
|
|
|
April 2, 2022 |
|
December 31, 2021 |
|
|
(Unaudited) |
|
|
|
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
$ |
789,248 |
|
|
$ |
774,108 |
|
|
Short-term investments |
|
96,561 |
|
|
|
146,743 |
|
|
Accounts receivable, net |
|
418,288 |
|
|
|
396,458 |
|
|
Inventories: |
|
|
|
|
Finished goods |
|
159,909 |
|
|
|
147,293 |
|
|
Work in process |
|
251,722 |
|
|
|
226,496 |
|
|
Raw materials |
|
191,256 |
|
|
|
162,711 |
|
|
Total inventories |
|
602,887 |
|
|
|
536,500 |
|
|
|
|
|
|
|
Prepaid expenses and other current assets |
|
163,227 |
|
|
|
156,689 |
|
|
Total
current assets |
|
2,070,211 |
|
|
|
2,010,498 |
|
|
|
|
|
|
|
Property and
equipment, at cost: |
|
|
|
|
Land |
|
74,237 |
|
|
|
74,646 |
|
|
Buildings and improvements |
|
642,097 |
|
|
|
639,879 |
|
|
Machinery and equipment |
|
2,775,615 |
|
|
|
2,758,262 |
|
|
Construction in progress |
|
129,268 |
|
|
|
145,828 |
|
|
Allowance for depreciation |
|
(2,650,810 |
) |
|
|
(2,639,136 |
) |
|
|
|
970,407 |
|
|
|
979,479 |
|
|
|
|
|
|
|
Right of use
assets |
|
114,094 |
|
|
|
117,635 |
|
|
Deferred
income taxes |
|
93,497 |
|
|
|
95,037 |
|
|
Goodwill |
|
165,032 |
|
|
|
165,269 |
|
|
Other
intangible assets, net |
|
65,546 |
|
|
|
67,714 |
|
|
Other
assets |
|
101,382 |
|
|
|
107,625 |
|
|
Total assets |
$ |
3,580,169 |
|
|
$ |
3,543,257 |
|
|
VISHAY INTERTECHNOLOGY, INC. |
|
Consolidated Condensed Balance Sheets (continued) |
|
(In
thousands) |
|
|
|
|
|
|
|
|
|
|
April 2, 2022 |
|
December 31, 2021 |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
Liabilities
and equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Trade accounts payable |
$ |
235,755 |
|
|
$ |
254,049 |
|
|
Payroll and related expenses |
|
156,012 |
|
|
|
162,694 |
|
|
Lease liabilities |
|
23,080 |
|
|
|
23,392 |
|
|
Other accrued expenses |
|
210,531 |
|
|
|
218,089 |
|
|
Income taxes |
|
51,005 |
|
|
|
35,443 |
|
|
Total
current liabilities |
|
676,383 |
|
|
|
693,667 |
|
|
|
|
|
|
|
Long-term
debt less current portion |
|
456,484 |
|
|
|
455,666 |
|
|
U.S.
transition tax payable |
|
110,681 |
|
|
|
110,681 |
|
|
Deferred
income taxes |
|
71,435 |
|
|
|
69,003 |
|
|
Long-term
lease liabilities |
|
96,272 |
|
|
|
99,987 |
|
|
Other
liabilities |
|
93,261 |
|
|
|
95,861 |
|
|
Accrued
pension and other postretirement costs |
|
259,531 |
|
|
|
271,672 |
|
|
Total
liabilities |
|
1,764,047 |
|
|
|
1,796,537 |
|
|
|
|
|
|
|
Equity: |
|
|
|
|
Vishay
stockholders' equity |
|
|
|
|
Common stock |
|
13,290 |
|
|
|
13,271 |
|
|
Class B convertible common stock |
|
1,210 |
|
|
|
1,210 |
|
|
Capital in excess of par value |
|
1,349,552 |
|
|
|
1,347,830 |
|
|
Retained earnings |
|
490,776 |
|
|
|
401,694 |
|
|
Treasury stock (at cost) |
|
(9,873 |
) |
|
|
- |
|
|
Accumulated other comprehensive income (loss) |
|
(32,177 |
) |
|
|
(20,252 |
) |
|
Total Vishay stockholders' equity |
|
1,812,778 |
|
|
|
1,743,753 |
|
|
Noncontrolling interests |
|
3,344 |
|
|
|
2,967 |
|
|
Total
equity |
|
1,816,122 |
|
|
|
1,746,720 |
|
|
Total
liabilities and equity |
$ |
3,580,169 |
|
|
$ |
3,543,257 |
|
|
VISHAY
INTERTECHNOLOGY, INC. |
|
|
|
|
Consolidated
Condensed Statements of Cash Flows |
|
|
|
|
(Unaudited -
In thousands) |
|
|
|
Three fiscal months
ended |
|
|
April 2, 2022 |
|
April 3, 2021 |
|
|
|
|
|
|
Operating
activities |
|
|
|
|
Net earnings |
$ |
103,950 |
|
|
$ |
71,643 |
|
|
Adjustments
to reconcile net earnings to net cash provided by operating
activities: |
|
|
|
|
Depreciation and
amortization |
|
40,650 |
|
|
|
42,146 |
|
|
(Gain) loss on disposal of
property and equipment |
|
(59 |
) |
|
|
(177 |
) |
|
Inventory write-offs for
obsolescence |
|
5,825 |
|
|
|
4,784 |
|
|
Deferred income taxes |
|
2,347 |
|
|
|
901 |
|
|
Other |
|
8,816 |
|
|
|
5,728 |
|
|
Changes in operating assets and
liabilities |
|
(127,944 |
) |
|
|
(67,703 |
) |
|
Net cash
provided by operating activities |
|
33,585 |
|
|
|
57,322 |
|
|
|
|
|
|
|
Investing
activities |
|
|
|
|
Purchase of
property and equipment |
|
(35,909 |
) |
|
|
(28,527 |
) |
|
Proceeds
from sale of property and equipment |
|
72 |
|
|
|
200 |
|
|
Purchase of
short-term investments |
|
(7,753 |
) |
|
|
(12,853 |
) |
|
Maturity of
short-term investments |
|
56,674 |
|
|
|
29,519 |
|
|
Other
investing activities |
|
(199 |
) |
|
|
347 |
|
|
Net cash
provided by (used in) investing activities |
|
12,885 |
|
|
|
(11,314 |
) |
|
|
|
|
|
|
Financing
activities |
|
|
|
|
Repurchase
of convertible debt instruments |
|
- |
|
|
|
(300 |
) |
|
Dividends
paid to common stockholders |
|
(13,259 |
) |
|
|
(12,608 |
) |
|
Dividends
paid to Class B common stockholders |
|
(1,210 |
) |
|
|
(1,149 |
) |
|
Repurchase
of common stock held in treasury |
|
(9,873 |
) |
|
|
- |
|
|
Cash
withholding taxes paid when shares withheld for vested equity
awards |
|
(2,123 |
) |
|
|
(1,963 |
) |
|
Net cash
used in financing activities |
|
(26,465 |
) |
|
|
(16,020 |
) |
|
Effect of
exchange rate changes on cash and cash equivalents |
|
(4,865 |
) |
|
|
(6,015 |
) |
|
|
|
|
|
|
Net increase
in cash and cash equivalents |
|
15,140 |
|
|
|
23,973 |
|
|
|
|
|
|
|
Cash and
cash equivalents at beginning of period |
|
774,108 |
|
|
|
619,874 |
|
|
Cash and
cash equivalents at end of period |
$ |
789,248 |
|
|
$ |
643,847 |
|
|
|
|
|
|
|
VISHAY
INTERTECHNOLOGY, INC. |
|
Reconciliation of
Adjusted Earnings Per Share |
|
(Unaudited - In
thousands, except per share amounts) |
|
|
Fiscal quarters ended |
|
|
April 2, 2022 |
|
December 31, 2021 |
|
April 3, 2021 |
|
|
|
|
|
|
|
|
GAAP net earnings attributable to Vishay stockholders |
$ |
103,573 |
|
$ |
36,523 |
|
$ |
71,435 |
|
|
|
|
|
|
|
|
|
Reconciling
items affecting tax expense (benefit): |
|
|
|
|
|
|
Changes in
tax laws and regulations |
$ |
- |
|
$ |
53,316 |
|
$ |
(4,395 |
) |
|
|
|
|
|
|
|
|
Adjusted net
earnings |
$ |
103,573 |
|
$ |
89,839 |
|
$ |
67,040 |
|
|
|
|
|
|
|
|
|
Adjusted
weighted average diluted shares outstanding |
|
145,553 |
|
|
145,617 |
|
|
145,463 |
|
|
|
|
|
|
|
|
|
Adjusted
earnings per diluted share |
$ |
0.71 |
|
$ |
0.62 |
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
VISHAY
INTERTECHNOLOGY, INC. |
|
|
|
|
|
|
Reconciliation of Free Cash |
|
|
|
|
|
|
(Unaudited -
In thousands) |
|
|
|
|
|
|
|
Fiscal quarters ended |
|
|
April 2, 2022 |
|
December 31, 2021 |
|
April 3, 2021 |
|
Net cash provided by operating activities |
$ |
33,585 |
|
|
$ |
146,652 |
|
|
$ |
57,322 |
|
|
Proceeds
from sale of property and equipment |
|
72 |
|
|
|
60 |
|
|
|
200 |
|
|
Less:
Capital expenditures |
|
(35,909 |
) |
|
|
(100,216 |
) |
|
|
(28,527 |
) |
|
Free
cash |
$ |
(2,252 |
) |
|
$ |
46,496 |
|
|
$ |
28,995 |
|
|
|
|
|
|
|
|
|
VISHAY
INTERTECHNOLOGY, INC. |
|
|
|
|
|
|
Reconciliation of EBITDA and Adjusted EBITDA |
|
|
|
|
|
|
(Unaudited -
In thousands) |
|
|
|
|
|
|
|
Fiscal quarters ended |
|
|
April 2, 2022 |
|
December 31, 2021 |
|
April 3, 2021 |
|
|
|
|
|
|
|
|
GAAP net earnings attributable to Vishay stockholders |
$ |
103,573 |
|
|
$ |
36,523 |
|
|
$ |
71,435 |
|
|
Net earnings
attributable to noncontrolling interests |
|
377 |
|
|
|
308 |
|
|
|
208 |
|
|
Net
earnings |
$ |
103,950 |
|
|
$ |
36,831 |
|
|
$ |
71,643 |
|
|
|
|
|
|
|
|
|
Interest
expense |
$ |
4,222 |
|
|
$ |
4,292 |
|
|
$ |
4,376 |
|
|
Interest
income |
|
(560 |
) |
|
|
(362 |
) |
|
|
(287 |
) |
|
Income
taxes |
|
32,330 |
|
|
|
77,027 |
|
|
|
15,514 |
|
|
Depreciation
and amortization |
|
40,650 |
|
|
|
41,942 |
|
|
|
42,146 |
|
|
EBITDA |
$ |
180,592 |
|
|
$ |
159,730 |
|
|
$ |
133,392 |
|
|
|
|
|
|
|
|
|
Reconciling
items |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
180,592 |
|
|
$ |
159,730 |
|
|
$ |
133,392 |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA margin** |
|
21.2 |
% |
|
|
18.9 |
% |
|
|
17.4 |
% |
|
|
|
|
|
|
|
|
** Adjusted
EBITDA as a percentage of net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
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