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Vishay Intertechnology Reports Second Quarter 2024 Results

MALVERN, Pa., Aug. 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 second quarter ended June 29, 2024.

Highlights

“During the second quarter, we executed well on our Vishay 3.0 strategic plan, deepening our customer engagements supported by capacity that has landed and that we will continue to expand, and advancing our silicon carbide strategy as we prepare for the megatrends in sustainability and e-mobility,” said Joel Smejkal, President and CEO. “Revenue, including a full quarter of Newport, was flat quarter over quarter, primarily reflecting schedule agreement adjustments by automotive Tier 1 customers. At mid-year 2024, it is apparent that the industry recovery is taking longer than we had expected at the beginning of the year. As a result, we are adjusting the timetable of the Itzehoe, Germany expansion project beyond 2024 while holding to our planned capital investment of $2.6 billion between 2023 and 2028. For 2024, we now plan to invest between $360 million to $390 million in capex.”

3Q 2024 Outlook
For the third quarter of 2024, management expects revenues in the range of $745 million +/- $20 million, with gross profit margin in the range of 21.0% +/- 50 basis points, including the negative impact of approximately 175 to 200 basis points from the addition of Newport.

A conference call to discuss Vishay’s second quarter financial results is scheduled for Wednesday, August 7, 2024 at 9:00 a.m. ET. To participate in the live conference call, please pre-register at https://register.vevent.com/register/BI38004aee85364014b94cacc38200c3f4. 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 free cash; earnings before interest, taxes, depreciation and amortization (“EBITDA”); and 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 free cash, EBITDA, and 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. The calculations of these measures 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; that the Newport wafer 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  
  June 29, 2024   March 30, 2024   July 1, 2023  
             
Net revenues $ 741,239     $ 746,279     $ 892,110    
Costs of products sold   578,369       575,872       634,637    
Gross profit   162,870       170,407       257,473    
Gross margin   22.0 %     22.8 %     28.9 %  
             
Selling, general, and administrative expenses   124,953       127,736       122,857    
Operating income   37,917       42,671       134,616    
Operating margin   5.1 %     5.7 %     15.1 %  
             
Other income (expense):            
Interest expense   (6,657 )     (6,496 )     (6,404 )  
Other   5,011       8,087       5,257    
Total other income (expense) – net   (1,646 )     1,591       (1,147 )  
             
Income before taxes   36,271       44,262       133,469    
             
Income tax expense   12,391       12,819       38,054    
             
Net earnings   23,880       31,443       95,415    
             
Less: net earnings attributable to noncontrolling interests   347       519       377    
             
Net earnings attributable to Vishay stockholders $ 23,533     $ 30,924     $ 95,038    
             
Basic earnings per share attributable to Vishay stockholders $ 0.17     $ 0.22     $ 0.68    
             
Diluted earnings per share attributable to Vishay stockholders $ 0.17     $ 0.22     $ 0.68    
             
Weighted average shares outstanding – basic   137,326       137,726       139,764    
             
Weighted average shares outstanding – diluted   138,084       138,476       140,478    
             
Cash dividends per share $ 0.10     $ 0.10     $ 0.10    
             
VISHAY INTERTECHNOLOGY, INC.        
Summary of Operations        
(Unaudited – In thousands, except per share amounts)        
         
  Six fiscal months ended  
  June 29, 2024   July 1, 2023  
         
Net revenues $ 1,487,518     $ 1,763,156    
Costs of products sold   1,154,241       1,226,970    
Gross profit   333,277       536,186    
Gross margin   22.4 %     30.4 %  
         
Selling, general, and administrative expenses   252,689       243,002    
Operating income   80,588       293,184    
Operating margin   5.4 %     16.6 %  
         
Other income (expense):        
Interest expense   (13,153 )     (11,524 )  
Other   13,098       8,586    
Total other income (expense) – net   (55 )     (2,938 )  
         
Income before taxes   80,533       290,246    
         
Income tax expense   25,210       82,642    
         
Net earnings   55,323       207,604    
         
Less: net earnings attributable to noncontrolling interests   866       785    
         
Net earnings attributable to Vishay stockholders $ 54,457     $ 206,819    
         
Basic earnings per share attributable to Vishay stockholders $ 0.40     $ 1.48    
         
Diluted earnings per share attributable to Vishay stockholders $ 0.39     $ 1.47    
         
Weighted average shares outstanding – basic   137,525       140,201    
         
Weighted average shares outstanding – diluted   138,279       140,865    
         
Cash dividends per share $ 0.20     $ 0.20    
         
VISHAY INTERTECHNOLOGY, INC.        
Consolidated Condensed Balance Sheets        
(Unaudited – In thousands)        
         
  June 29, 2024   December 31, 2023  
         
Assets        
Current assets:        
  Cash and cash equivalents $ 672,731     $ 972,719    
  Short-term investments   15,320       35,808    
  Accounts receivable, net   424,512       426,674    
  Inventories:        
    Finished goods   172,353       167,083    
    Work in process   280,490       267,339    
    Raw materials   218,480       213,098    
  Total inventories   671,323       647,520    
         
  Prepaid expenses and other current assets   213,331       214,443    
Total current assets   1,997,217       2,297,164    
         
Property and equipment, at cost:        
  Land   84,036       77,006    
  Buildings and improvements   752,194       719,387    
  Machinery and equipment   3,226,301       3,053,868    
  Construction in progress   283,024       290,593    
  Allowance for depreciation   (2,888,004 )     (2,846,208 )  
    1,457,551       1,294,646    
         
Right of use assets   124,878       126,829    
Deferred income taxes   135,752       137,394    
Goodwill   250,580       201,416    
Other intangible assets, net   86,895       72,333    
Other assets   99,828       110,141    
     Total assets $ 4,152,701     $ 4,239,923    
         
VISHAY INTERTECHNOLOGY, INC.        
Consolidated Condensed Balance Sheets (continued)      
(Unaudited – In thousands)        
         
  June 29, 2024   December 31, 2023  
         
Liabilities and equity        
Current liabilities:        
  Trade accounts payable $ 198,527     $ 191,002    
  Payroll and related expenses   152,423       161,940    
  Lease liabilities   27,502       26,485    
  Other accrued expenses   241,961       239,350    
  Income taxes   49,546       73,098    
Total current liabilities   669,959       691,875    
         
Long-term debt less current portion   820,622       818,188    
U.S. transition tax payable         47,027    
Deferred income taxes   108,886       95,776    
Long-term lease liabilities   98,907       102,830    
Other liabilities   85,306       87,918    
Accrued pension and other postretirement costs   187,575       195,503    
Total liabilities   1,971,255       2,039,117    
         
Equity:        
Vishay stockholders’ equity        
  Common stock   13,358       13,319    
  Class B convertible common stock   1,210       1,210    
  Capital in excess of par value   1,296,721       1,291,499    
  Retained earnings   1,068,351       1,041,372    
  Treasury stock (at cost)   (186,816 )     (161,656 )  
  Accumulated other comprehensive income (loss)   (16,969 )     10,337    
  Total Vishay stockholders’ equity   2,175,855       2,196,081    
Noncontrolling interests   5,591       4,725    
Total equity   2,181,446       2,200,806    
Total liabilities and equity $ 4,152,701     $ 4,239,923    
         
VISHAY INTERTECHNOLOGY, INC.        
Consolidated Condensed Statements of Cash Flows        
(Unaudited – In thousands)    
  Six fiscal months ended  
  June 29, 2024   July 1, 2023  
Operating activities        
Net earnings $ 55,323     $ 207,604    
Adjustments to reconcile net earnings to net cash provided by operating activities:        
      Depreciation and amortization   101,677       87,694    
      Gain on disposal of property and equipment   (1,091 )     (495 )  
      Inventory write-offs for obsolescence   19,051       18,023    
      Stock compensation expense   9,293       6,082    
      Change in U.S. transition tax liability   (37,622 )     (27,670 )  
      Change in repatriation tax liability   (15,000 )        
      Deferred income taxes   5,589       16,166    
      Other   (632 )     (811 )  
      Changes in operating assets and liabilities   (81,107 )     (69,461 )  
Net cash provided by operating activities   55,481       237,132    
         
Investing activities        
Purchase of property and equipment   (115,648 )     (117,250 )  
Proceeds from sale of property and equipment   1,265       1,013    
Purchase and deposits for businesses, net of cash acquired   (200,185 )     (5,003 )  
Purchase of short-term investments   (59,638 )     (41 )  
Maturity of short-term investments   80,110       293,282    
Other investing activities   (1,220 )     (892 )  
Net cash provided by (used in) investing activities   (295,316 )     171,109    
         
Financing activities        
Net proceeds on revolving credit facility         143,000    
Debt issuance costs         (6,120 )  
Dividends paid to common stockholders   (25,033 )     (25,538 )  
Dividends paid to Class B common stockholders   (2,419 )     (2,419 )  
Repurchase of common stock held in treasury   (25,160 )     (40,399 )  
Distributions to noncontrolling interests         (867 )  
Cash withholding taxes paid when shares withheld for vested equity awards   (4,058 )     (3,653 )  
Net cash provided by (used in) financing activities   (56,670 )     64,004    
Effect of exchange rate changes on cash and cash equivalents   (3,483 )     6,350    
         
Net increase (decrease) in cash and cash equivalents   (299,988 )     478,595    
         
Cash and cash equivalents at beginning of period   972,719       610,825    
Cash and cash equivalents at end of period $ 672,731     $ 1,089,420    
         
VISHAY INTERTECHNOLOGY, INC.                    
Reconciliation of Free Cash                    
(Unaudited – In thousands)                    
  Fiscal quarters ended   Six fiscal months ended  
  June 29, 2024   March 30, 2024   July 1, 2023   June 29, 2024   July 1, 2023  
Net cash provided by operating activities $ (24,730 )   $ 80,211     $ 107,239     $ 55,481     $ 237,132    
Proceeds from sale of property and equipment   514       751       687       1,265       1,013    
Less: Capital expenditures   (62,564 )     (53,084 )     (71,676 )     (115,648 )     (117,250 )  
Free cash $ (86,780 )   $ 27,878     $ 36,250     $ (58,902 )   $ 120,895    
                     
VISHAY INTERTECHNOLOGY, INC.                    
Reconciliation of EBITDA                    
(Unaudited – In thousands)                    
  Fiscal quarters ended   Six fiscal months ended  
  June 29, 2024   March 30, 2024   July 1, 2023   June 29, 2024   July 1, 2023  
                     
GAAP net earnings attributable to Vishay stockholders $ 23,533     $ 30,924     $ 95,038     $ 54,457     $ 206,819    
Net earnings attributable to noncontrolling interests   347       519       377       866       785    
Net earnings $ 23,880     $ 31,443     $ 95,415     $ 55,323     $ 207,604    
                     
Interest expense $ 6,657     $ 6,496     $ 6,404     $ 13,153     $ 11,524    
Interest income   (6,663 )     (9,053 )     (6,292 )     (15,716 )     (12,236 )  
Income taxes   12,391       12,819       38,054       25,210       82,642    
Depreciation and amortization   52,150       49,527       44,393       101,677       87,694    
EBITDA $ 88,415     $ 91,232     $ 177,974     $ 179,647     $ 377,228    
                     
                     
EBITDA margin**   11.9 %     12.2 %     19.9 %     12.1 %     21.4 %  
                     
** EBITDA as a percentage of net revenues                    
                     


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