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Vishay Intertechnology Reports First Quarter 2023 Results
Press Releases

Vishay Intertechnology Reports First Quarter 2023 Results






MALVERN, Pa., May 10, 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 first quarter ended April 1, 2023.

Highlights

  • 1Q 2023 revenues of $871.0 million
  • 1Q 2023 EPS of $0.79
  • 1Q 2023 book-to-bill of 0.84
  • Backlog at quarter end was 7.5 months
  • YTD 2023 total stockholder return of $34.2 million
  • Extension of $750 million revolving credit facility to May 2028

“Driven by sales increases in medical and aerospace/defense along with continued strong demand in automotive, for the first quarter we delivered revenue growth of 2.0% year over year and 1.8% quarter over quarter. We also increased investments in capacity expansion for our 30 key product lines in support of high growth and high return opportunities that meet our customers’ accelerating demand. While 2023 is a staging year at Vishay as we prepare to participate fully in the next step up in demand related to connectivity, mobility and sustainability megatrends, we remain committed to spending approximately $385 million in capex and returning at least $100 million to our stockholders,” said Joel Smejkal, president and CEO.

2Q 2023 Outlook
For the second quarter of 2023, management expects revenues in the range of $860 million and $900 million and a gross profit margin in the range of 29.0% +/- 50 basis points.

Conference Call
Management will host a conference call today, May 10, 2023, at 9:00 a.m. ET to discuss first quarter 2023 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 13737582. 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, May 10, 2023, through 11:59 p.m. ET on Wednesday, May 24, 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 13737582.

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 “guide,” “will,” “expect,” “anticipate,” “committed” 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            
(Unaudited – In thousands, except per share amounts)            
             
  Fiscal quarters ended  
  April 1, 2023   December 31, 2022   April 2, 2022  
             
Net revenues $ 871,046     $ 855,298     $ 853,793    
Costs of products sold   592,333       606,178       594,685    
Gross profit   278,713       249,120       259,108    
Gross margin   32.0%       29.1%       30.3%    
             
Selling, general, and administrative expenses   120,145       113,812       112,855    
Operating income   158,568       135,308       146,253    
Operating margin   18.2%       15.8%       17.1%    
             
Other income (expense):            
Interest expense   (5,120 )     (4,490 )     (4,222 )  
Other   3,329       (2,618 )     (5,751 )  
Total other income (expense) – net   (1,791 )     (7,108 )     (9,973 )  
             
Income before taxes   156,777       128,200       136,280    
             
Income tax expense   44,588       54,999       32,330    
             
Net earnings   112,189       73,201       103,950    
             
Less: net earnings attributable to noncontrolling interests   408       413       377    
             
Net earnings attributable to Vishay stockholders $ 111,781     $ 72,788     $ 103,573    
             
Basic earnings per share attributable to Vishay stockholders $ 0.79     $ 0.51     $ 0.71    
             
Diluted earnings per share attributable to Vishay stockholders $ 0.79     $ 0.51     $ 0.71    
             
Weighted average shares outstanding – basic   140,636       141,643       145,053    
             
Weighted average shares outstanding – diluted   141,251       142,247       145,553    
             
Cash dividends per share $ 0.10     $ 0.10     $ 0.10    
             

VISHAY INTERTECHNOLOGY, INC.        
Consolidated Condensed Balance Sheets        
(In thousands)        
         
  April 1, 2023   December 31, 2022  
  (Unaudited)      
Assets        
Current assets:        
Cash and cash equivalents $ 847,534     $ 610,825    
Short-term investments   186,892       305,272    
Accounts receivable, net   444,021       416,178    
Inventories:        
Finished goods   171,404       156,234    
Work in process   282,166       261,345    
Raw materials   203,111       201,300    
Total inventories   656,681       618,879    
         
Prepaid expenses and other current assets   170,767       170,056    
Total current assets   2,305,895       2,121,210    
         
Property and equipment, at cost:        
Land   76,269       75,907    
Buildings and improvements   676,678       658,829    
Machinery and equipment   2,910,769       2,857,636    
Construction in progress   234,481       243,038    
Allowance for depreciation   (2,755,509 )     (2,704,951 )  
    1,142,688       1,130,459    
         
Right of use assets   130,306       131,193    
Deferred income taxes   106,197       104,667    
Goodwill   201,657       201,432    
Other intangible assets, net   75,965       77,896    
Other assets   99,960       98,796    
Total assets $ 4,062,668     $ 3,865,653    
   

VISHAY INTERTECHNOLOGY, INC.        
Consolidated Condensed Balance Sheets (continued)      
(In thousands)        
         
  April 1, 2023   December 31, 2022  
  (Unaudited)      
         
Liabilities and equity        
Current liabilities:        
Trade accounts payable $ 219,802     $ 189,099    
Payroll and related expenses   159,708       166,079    
Lease liabilities   25,908       25,319    
Other accrued expenses   246,529       261,606    
Income taxes   97,307       84,155    
Total current liabilities   749,254       726,258    
         
Long-term debt less current portion   566,755       500,937    
U.S. transition tax payable   83,010       83,010    
Deferred income taxes   125,289       117,183    
Long-term lease liabilities   107,221       108,493    
Other liabilities   94,216       92,530    
Accrued pension and other postretirement costs   189,606       187,092    
Total liabilities   1,915,351       1,815,503    
         
Equity:        
Vishay stockholders’ equity        
Common stock   13,316       13,291    
Class B convertible common stock   1,210       1,210    
Capital in excess of par value   1,351,622       1,352,321    
Retained earnings   870,975       773,228    
Treasury stock (at cost)   (103,145 )     (82,972 )  
Accumulated other comprehensive income (loss)   9,032       (10,827 )  
Total Vishay stockholders’ equity   2,143,010       2,046,251    
Noncontrolling interests   4,307       3,899    
Total equity   2,147,317       2,050,150    
Total liabilities and equity $ 4,062,668     $ 3,865,653    
         

VISHAY INTERTECHNOLOGY, INC.        
Consolidated Condensed Statements of Cash Flows        
(Unaudited – In thousands)    
  Three fiscal months ended  
  April 1, 2023   April 2, 2022  
         
Operating activities        
Net earnings $ 112,189     $ 103,950    
Adjustments to reconcile net earnings to net cash provided by operating activities:        
Depreciation and amortization   43,301       40,650    
(Gain) loss on disposal of property and equipment   (64 )     (59 )  
Inventory write-offs for obsolescence   8,986       5,825    
Deferred income taxes   7,329       2,347    
Other   269       8,816    
Changes in operating assets and liabilities   (42,117 )     (127,944 )  
Net cash provided by operating activities   129,893       33,585    
         
Investing activities        
Purchase of property and equipment   (45,574 )     (35,909 )  
Proceeds from sale of property and equipment   326       72    
Purchase of short-term investments   (41 )     (7,753 )  
Maturity of short-term investments   121,768       56,674    
Other investing activities   (892 )     (199 )  
Net cash provided by investing activities   75,587       12,885    
         
Financing activities        
Net proceeds (payments) on revolving credit lines   65,000          
Dividends paid to common stockholders   (12,810 )     (13,259 )  
Dividends paid to Class B common stockholders   (1,210 )     (1,210 )  
Repurchase of common stock held in treasury   (20,173 )     (9,873 )  
Cash withholding taxes paid when shares withheld for vested equity awards   (3,653 )     (2,123 )  
Net cash provided by (used in) financing activities   27,154       (26,465 )  
Effect of exchange rate changes on cash and cash equivalents   4,075       (4,865 )  
         
Net increase in cash and cash equivalents   236,709       15,140    
         
Cash and cash equivalents at beginning of period   610,825       774,108    
Cash and cash equivalents at end of period $ 847,534     $ 789,248    
         

VISHAY INTERTECHNOLOGY, INC.            
Reconciliation of Adjusted Earnings Per Share            
(Unaudited – In thousands, except per share amounts)            
  Fiscal quarters ended  
  April 1, 2023   December 31, 2022   April 2, 2022  
             
GAAP net earnings attributable to Vishay stockholders $ 111,781   $ 72,788     $ 103,573  
             
Reconciling items affecting tax expense (benefit):            
Effect of change in indefinite reversal assertion $   $ 59,642     $  
Effects of changes in valuation allowances       (33,669 )      
             
             
Adjusted net earnings $ 111,781   $ 98,761     $ 103,573  
             
Adjusted weighted average diluted shares outstanding   141,251     142,247       145,553  
             
Adjusted earnings per diluted share $ 0.79   $ 0.69     $ 0.71  
             

VISHAY INTERTECHNOLOGY, INC.            
Reconciliation of Free Cash            
(Unaudited – In thousands)            
  Fiscal quarters ended  
  April 1, 2023   December 31, 2022   April 2, 2022  
Net cash provided by operating activities $ 129,893     $ 166,496     $ 33,585    
Proceeds from sale of property and equipment   326       726       72    
Less: Capital expenditures   (45,574 )     (153,133 )     (35,909 )  
Free cash $ 84,645     $ 14,089     $ (2,252 )  
             

VISHAY INTERTECHNOLOGY, INC.            
Reconciliation of EBITDA and Adjusted EBITDA            
(Unaudited – In thousands)            
  Fiscal quarters ended  
  April 1, 2023   December 31, 2022   April 2, 2022  
             
GAAP net earnings attributable to Vishay stockholders $ 111,781     $ 72,788     $ 103,573    
Net earnings attributable to noncontrolling interests   408       413       377    
Net earnings $ 112,189     $ 73,201     $ 103,950    
             
Interest expense $ 5,120     $ 4,490     $ 4,222    
Interest income   (5,944 )     (4,374 )     (561 )  
Income taxes   44,588       54,999       32,330    
Depreciation and amortization   43,301       42,690       40,650    
EBITDA $ 199,254     $ 171,006     $ 180,591    
             
Reconciling items $     $     $    
             
Adjusted EBITDA $ 199,254     $ 171,006     $ 180,591    
             
Adjusted EBITDA margin**   22.9 %     20.0 %     21.2 %  
             
** Adjusted EBITDA as a percentage of net revenues            
             

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