- Revenues Q1 of $765 million
- Gross margin Q1 of 26.5%
- Operating margin Q1 of 12.7%
- EPS Q1 of $0.49; adjusted EPS $0.46
- Free Cash for the trailing 12 months Q1 of $211 million
- Guidance Q2 for revenues of $790 to $830 million at a gross margin of 27.3% plus/minus 60 basis points at Q1 exchange rates.
MALVERN, Pa., May 04, 2021 (GLOBE NEWSWIRE) — 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 3, 2021.
Revenues for the fiscal quarter ended April 3, 2021 were $764.6 million, compared to $667.2 million for the fiscal quarter ended December 31, 2020, and $612.8 million for the fiscal quarter ended April 4, 2020. Net earnings attributable to Vishay stockholders for the fiscal quarter ended April 3, 2021 were $71.4 million, or $0.49 per diluted share, compared to $37.6 million, or $0.26 per diluted share, for the fiscal quarter ended December 31, 2020, and $27.2 million, or $0.19 per diluted share, for the fiscal quarter ended April 4, 2020.
As summarized on the attached reconciliation schedule, all periods presented include items affecting comparability. Adjusted earnings per diluted share, which exclude certain items net of tax and unusual tax items, were $0.46, $0.28, and $0.21 for the fiscal quarters ended April 3, 2021, December 31, 2020, and April 4, 2020, respectively.
Commenting on results for the first quarter 2021, Dr. Gerald Paul, President and Chief Executive Officer stated, “In the first quarter of 2021, the steep upturn of our business that began in October of last year accelerated even further. Quarterly orders and backlog reached all-time highs. Sales in the first quarter of Vishay’s products from distribution to end customers increased 21% over the fourth quarter of last year and inventories of our products at distribution were reduced by $34 million. Virtually all markets are in excellent shape and supply chains have become rather depleted.”
Dr. Paul continued, “Over the next few years, we expect to experience higher growth rates than over the last decade. This expectation is based upon accelerated electrification, such as factory automation, electrical vehicles, and 5G infrastructure. To be well positioned to service our customers and to fully participate in these growing markets, Vishay intends to increase its capital expenditures for expansion in the mid-term. For the year 2021, we expect to invest approximately $225 million in capital expenditures.”
Commenting on the outlook Dr. Paul stated, “For the second quarter 2021 we guide for revenues in the range of $790 to $830 million at a gross margin of 27.3% plus/minus 60 basis points at the exchange rates of Q1 2021.”
A conference call to discuss Vishay’s first quarter financial results is scheduled for Tuesday, May 4, 2021 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) and the access code is 6669583.
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 12:05 p.m. ET on Tuesday, May 4, 2021 through 11:59 p.m. ET on Wednesday, May 19 The telephone number for the replay is +1 855-859-2056 (+1 404-537-3406, if calling from outside the United States or Canada) and the access code is 6669583.
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 statements with respect to forecasted revenues, margins, inventories, 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 “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; manufacturing or supply chain interruptions or changes in customer demand because of COVID-19; 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 3, 2021 | December 31, 2020 | April 4, 2020 | ||||||||||
| Net revenues | $ | 764,632 | $ | 667,180 | $ | 612,841 | ||||||
| Costs of products sold* | 561,683 | 514,896 | 465,601 | |||||||||
| Gross profit | 202,949 | 152,284 | 147,240 | |||||||||
| Gross margin | 26.5 | % | 22.8 | % | 24.0 | % | ||||||
| Selling, general, and administrative expenses** | 105,685 | 92,272 | 99,832 | |||||||||
| Operating income | 97,264 | 60,012 | 47,408 | |||||||||
| Operating margin | 12.7 | % | 9.0 | % | 7.7 | % | ||||||
| Other income (expense): | ||||||||||||
| Interest expense | (4,376 | ) | (7,159 | ) | (8,552 | ) | ||||||
| Loss on early extinguishment of debt | – | (553 | ) | (2,920 | ) | |||||||
| Other | (5,731 | ) | (5,570 | ) | 198 | |||||||
| Total other income (expense) – net | (10,107 | ) | (13,282 | ) | (11,274 | ) | ||||||
| Income before taxes | 87,157 | 46,730 | 36,134 | |||||||||
| Income tax expense | 15,514 | 8,887 | 8,750 | |||||||||
| Net earnings | 71,643 | 37,843 | 27,384 | |||||||||
| Less: net earnings attributable to noncontrolling interests | 208 | 276 | 165 | |||||||||
| Net earnings attributable to Vishay stockholders | $ | 71,435 | $ | 37,567 | $ | 27,219 | ||||||
| Basic earnings per share attributable to Vishay stockholders | $ | 0.49 | $ | 0.26 | $ | 0.19 | ||||||
| Diluted earnings per share attributable to Vishay stockholders | $ | 0.49 | $ | 0.26 | $ | 0.19 | ||||||
| Weighted average shares outstanding – basic | 144,968 | 144,855 | 144,792 | |||||||||
| Weighted average shares outstanding – diluted | 145,463 | 145,251 | 145,295 | |||||||||
| Cash dividends per share | $ | 0.095 | $ | 0.095 | $ | 0.095 | ||||||
| * Includes incremental costs of products sold separable from normal operations directly attributable to the COVID-19 pandemic of $268 and $3,130 for the fiscal quarters ended December 31, 2020 and April 4, 2020, respectively. | ||||||||||||
| ** Includes incremental selling, general, and administrative expenses (benefits) separable from normal operations directly attributable to the COVID-19 pandemic of $(580) and $317, for the fiscal quarters ended December 31, 2020 and April 4, 2020, respectively. | ||||||||||||
| VISHAY INTERTECHNOLOGY, INC. | ||||||||
| Consolidated Condensed Balance Sheets | ||||||||
| (In thousands) | ||||||||
| April 3, 2021 | December 31, 2020 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 643,847 | $ | 619,874 | ||||
| Short-term investments | 137,348 | 158,476 | ||||||
| Accounts receivable, net | 385,238 | 338,632 | ||||||
| Inventories: | ||||||||
| Finished goods | 129,310 | 120,792 | ||||||
| Work in process | 212,273 | 201,259 | ||||||
| Raw materials | 132,373 | 126,200 | ||||||
| Total inventories | 473,956 | 448,251 | ||||||
| Prepaid expenses and other current assets | 140,536 | 132,103 | ||||||
| Total current assets | 1,780,925 | 1,697,336 | ||||||
| Property and equipment, at cost: | ||||||||
| Land | 75,339 | 76,231 | ||||||
| Buildings and improvements | 629,550 | 641,041 | ||||||
| Machinery and equipment | 2,705,346 | 2,732,771 | ||||||
| Construction in progress | 94,981 | 86,520 | ||||||
| Allowance for depreciation | (2,587,948 | ) | (2,593,398 | ) | ||||
| 917,268 | 943,165 | |||||||
| Right of use assets | 98,001 | 102,440 | ||||||
| Goodwill | 157,693 | 158,183 | ||||||
| Other intangible assets, net | 64,123 | 66,795 | ||||||
| Other assets | 192,552 | 186,554 | ||||||
| Total assets | $ | 3,210,562 | $ | 3,154,473 | ||||
| VISHAY INTERTECHNOLOGY, INC. | |||||||
| Consolidated Condensed Balance Sheets (continued) | |||||||
| (In thousands) | |||||||
| April 3, 2021 | December 31, 2020 | ||||||
| (Unaudited) | |||||||
| Liabilities and equity | |||||||
| Current liabilities: | |||||||
| Trade accounts payable | $ | 206,741 | $ | 196,203 | |||
| Payroll and related expenses | 136,069 | 141,034 | |||||
| Lease liabilities | 21,275 | 22,074 | |||||
| Other accrued expenses | 197,246 | 182,642 | |||||
| Income taxes | 26,715 | 20,470 | |||||
| Total current liabilities | 588,046 | 562,423 | |||||
| Long-term debt less current portion | 453,213 | 394,886 | |||||
| U.S. transition tax payable | 125,438 | 125,438 | |||||
| Deferred income taxes | 1,856 | 1,852 | |||||
| Long-term lease liabilities | 82,260 | 86,220 | |||||
| Other liabilities | 103,881 | 104,356 | |||||
| Accrued pension and other postretirement costs | 287,407 | 300,113 | |||||
| Total liabilities | 1,642,101 | 1,575,288 | |||||
| Redeemable convertible debentures | – | 170 | |||||
| Equity: | |||||||
| Vishay stockholders’ equity | |||||||
| Common stock | 13,271 | 13,256 | |||||
| Class B convertible common stock | 1,210 | 1,210 | |||||
| Capital in excess of par value | 1,345,284 | 1,409,200 | |||||
| Retained earnings | 217,214 | 138,990 | |||||
| Accumulated other comprehensive income (loss) | (11,526 | ) | 13,559 | ||||
| Total Vishay stockholders’ equity | 1,565,453 | 1,576,215 | |||||
| Noncontrolling interests | 3,008 | 2,800 | |||||
| Total equity | 1,568,461 | 1,579,015 | |||||
| Total liabilities, temporary equity, and equity | $ | 3,210,562 | $ | 3,154,473 | |||
| VISHAY INTERTECHNOLOGY, INC. | ||||||||
| Consolidated Condensed Statements of Cash Flows | ||||||||
| (Unaudited – In thousands) | ||||||||
| Three fiscal months ended | ||||||||
| April 3, 2021 | April 4, 2020 | |||||||
| (Unaudited) | ||||||||
| Operating activities | ||||||||
| Net earnings | $ | 71,643 | $ | 27,384 | ||||
| Adjustments to reconcile net earnings to | ||||||||
| net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 42,146 | 41,520 | ||||||
| Gain on disposal of property and equipment | (177 | ) | (45 | ) | ||||
| Accretion of interest on convertible debt instruments | – | 3,637 | ||||||
| Inventory write-offs for obsolescence | 4,784 | 5,643 | ||||||
| Loss on early extinguishment of debt | – | 2,920 | ||||||
| Deferred income taxes | 901 | (3,517 | ) | |||||
| Other | 5,728 | 3,524 | ||||||
| Changes in operating assets and liabilities, net of effects of businesses acquired | (67,703 | ) | (46,588 | ) | ||||
| Net cash provided by operating activities | 57,322 | 34,478 | ||||||
| Investing activities | ||||||||
| Purchase of property and equipment | (28,527 | ) | (24,328 | ) | ||||
| Proceeds from sale of property and equipment | 200 | 53 | ||||||
| Purchase of short-term investments | (12,853 | ) | (35,463 | ) | ||||
| Maturity of short-term investments | 29,519 | – | ||||||
| Other investing activities | 347 | (1,507 | ) | |||||
| Net cash used in investing activities | (11,314 | ) | (61,245 | ) | ||||
| Financing activities | ||||||||
| Repurchase of convertible debt instruments | (300 | ) | (19,849 | ) | ||||
| Net proceeds (payments) on revolving credit lines | – | 54,000 | ||||||
| Net changes in short-term borrowings | – | 85 | ||||||
| Dividends paid to common stockholders | (12,608 | ) | (12,592 | ) | ||||
| Dividends paid to Class B common stockholders | (1,149 | ) | (1,149 | ) | ||||
| Cash withholding taxes paid when shares withheld for vested equity awards | (1,963 | ) | (1,991 | ) | ||||
| Net cash provided by (used in) financing activities | (16,020 | ) | 18,504 | |||||
| Effect of exchange rate changes on cash and cash equivalents | (6,015 | ) | (5,167 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 23,973 | (13,430 | ) | |||||
| Cash and cash equivalents at beginning of period | 619,874 | 694,133 | ||||||
| Cash and cash equivalents at end of period | $ | 643,847 | $ | 680,703 | ||||
| VISHAY INTERTECHNOLOGY, INC. | ||||||||||||
| Reconciliation of Adjusted Earnings Per Share | ||||||||||||
| (Unaudited – In thousands, except per share amounts) | ||||||||||||
| Fiscal quarters ended | ||||||||||||
| April 3, 2021 | December 31, 2020 | April 4, 2020 | ||||||||||
| GAAP net earnings attributable to Vishay stockholders | $ | 71,435 | $ | 37,567 | $ | 27,219 | ||||||
| Reconciling items affecting gross profit: | ||||||||||||
| Impact of the COVID-19 pandemic | $ | – | $ | 268 | $ | 3,130 | ||||||
| Other reconciling items affecting operating income: | ||||||||||||
| Impact of the COVID-19 pandemic | $ | – | $ | (580 | ) | $ | 317 | |||||
| Reconciling items affecting other income (expense): | ||||||||||||
| Loss on early extinguishment of debt | $ | – | $ | 553 | $ | 2,920 | ||||||
| Reconciling items affecting tax expense (benefit): | ||||||||||||
| Change in tax regulation | $ | (4,395 | ) | $ | – | $ | – | |||||
| Change in deferred taxes due to early extinguishment of debt | – | (217 | ) | (1,346 | ) | |||||||
| Effects of changes in uncertain tax positions | – | 3,751 | – | |||||||||
| Tax effects of pre-tax items above | – | (12 | ) | (1,482 | ) | |||||||
| Adjusted net earnings | $ | 67,040 | $ | 41,330 | $ | 30,758 | ||||||
| Adjusted weighted average diluted shares outstanding | 145,463 | 145,251 | 145,295 | |||||||||
| Adjusted earnings per diluted share | $ | 0.46 | $ | 0.28 | $ | 0.21 | ||||||
| VISHAY INTERTECHNOLOGY, INC. | ||||||||||||
| Reconciliation of Free Cash | ||||||||||||
| (Unaudited – In thousands) | ||||||||||||
| Fiscal quarters ended | ||||||||||||
| April 3, 2021 | December 31, 2020 | April 4, 2020 | ||||||||||
| Net cash provided by operating activities | $ | 57,322 | $ | 125,699 | $ | 34,478 | ||||||
| Proceeds from sale of property and equipment | 200 | 110 | 53 | |||||||||
| Less: Capital expenditures | (28,527 | ) | (52,798 | ) | (24,328 | ) | ||||||
| Free cash | $ | 28,995 | $ | 73,011 | $ | 10,203 | ||||||
| VISHAY INTERTECHNOLOGY, INC. | ||||||||||||
| Reconciliation of EBITDA and Adjusted EBITDA | ||||||||||||
| (Unaudited – In thousands) | ||||||||||||
| Fiscal quarters ended | ||||||||||||
| April 3, 2021 | December 31, 2020 | April 4, 2020 | ||||||||||
| GAAP net earnings attributable to Vishay stockholders | $ | 71,435 | $ | 37,567 | $ | 27,219 | ||||||
| Net earnings attributable to noncontrolling interests | 208 | 276 | 165 | |||||||||
| Net earnings | $ | 71,643 | $ | 37,843 | $ | 27,384 | ||||||
| Interest expense | $ | 4,376 | $ | 7,159 | $ | 8,552 | ||||||
| Interest income | (287 | ) | (385 | ) | (1,854 | ) | ||||||
| Income taxes | 15,514 | 8,887 | 8,750 | |||||||||
| Depreciation and amortization | 42,146 | 42,454 | 41,520 | |||||||||
| EBITDA | $ | 133,392 | $ | 95,958 | $ | 84,352 | ||||||
| Reconciling items | ||||||||||||
| Impact of the COVID-19 pandemic | $ | – | $ | (312 | ) | $ | 3,447 | |||||
| Loss on early extinguishment of debt | – | 553 | 2,920 | |||||||||
| Adjusted EBITDA | $ | 133,392 | $ | 96,199 | $ | 90,719 | ||||||
| Adjusted EBITDA margin** | 17.4 | % | 14.4 | % | 14.8 | % | ||||||
| ** Adjusted EBITDA as a percentage of net revenues | ||||||||||||