VISHAY REPORTS RESULTS FOR FOURTH QUARTER AND YEAR 2014
| · | Revenues for year 2014 of $2,493 million and for Q4 2014 of $611 million |
| · | EPS year 2014 of $0.77, or adjusted EPS of $0.92 |
| · | Adjusted EPS for year 2014 increased 16% versus 2013 |
| · | EPS Q4 2014 of $0.19, or adjusted EPS of $0.19 |
| · | Cash from operations for the year 2014 of $297 million and capital expenditures of $157 million |
| · | Guidance for Q1 2015 for revenues of $590 - $630 million and gross margins of 24% - 25% |
| · | Book-to-bill for January above 1.0 |
MALVERN, PENNSYLVANIA – February 5, 2015 – Vishay Intertechnology, Inc. (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive components, today announced its results for the year and fiscal quarter ended December 31, 2014.
Revenues for the year ended December 31, 2014 were $2,493.3 million, compared to $2,371.0 million for the year ended December 31, 2013. The net earnings attributable to Vishay stockholders for the year ended December 31, 2014 were $117.6 million, or $0.77 per diluted share, compared to $123.0 million, or $0.81 per diluted share for the year ended December 31, 2013.
Revenues for the fiscal quarter ended December 31, 2014 were $610.8 million, compared to $616.2 million for the fiscal quarter ended December 31, 2013. The net earnings attributable to Vishay stockholders for the fiscal quarter ended December 31, 2014 were $29.2 million, or $0.19 per diluted share, compared to $30.0 million, or $0.20 per diluted share for the fiscal quarter ended December 31, 2013.
Net earnings attributable to Vishay stockholders for the fiscal quarter ended December 31, 2014 include restructuring and severance costs of $2.0 million, and $1.2 million of one-time tax benefits related to U.S. tax law changes. Net earnings attributable to Vishay stockholders for the fiscal quarter ended December 31, 2013 include restructuring and severance costs of $2.8 million. The years ended December 31, 2014 and 2013 include other items affecting comparability. These items are summarized on the attached reconciliation schedule. Adjusted earnings per diluted share, which exclude these items, were $0.19 and $0.92 for the fiscal quarter and year ended December 31, 2014, respectively, and $0.21 and $0.79 for the fiscal quarter and year ended December 31, 2013, respectively.
Commenting on the results for the fourth quarter 2014, Dr. Gerald Paul, President and Chief Executive Officer, stated, "Revenues were slightly lower than expected, due to the effect of a strengthening U.S. dollar in the course of the quarter. A higher than anticipated inventory reduction increased our cash generation, but negatively impacted our margins."
Dr. Paul stated, commenting on the results for the year 2014, "Excluding the effect of exchange rates and acquisitions, revenues increased by 4% compared to the previous year while adjusted EPS increased to $0.92 in 2014 from $0.79 in 2013 or by 16%. We tightly controlled our fixed costs, which increased, excluding acquisitions and exchange rate effects, by 2% year over year. We expect to grow further in the Asian industrial markets, to continue pursuing technological innovations, and to finalize our major cost reduction projects."
Commenting on Vishay's Merger and Acquisition activity, Marc Zandman, Vishay's Executive Chairman and Chief Business Development Officer, stated, "In the year 2014 we successfully completed two acquisitions – Holy Stone Polytech and Capella Microsystems – that we expect will ensure future mid- and long-term growth for our Capacitor and Optoelectronics businesses, respectively, by adding technical capabilities which Vishay did not have in-house. We continue to explore opportunities for acquisitions to further strengthen Vishay. "
Commenting on the outlook Dr. Paul stated, "Based on a January book-to-bill above 1.0, we anticipate a good first quarter. Assuming a 1.15 U.S. dollar to euro exchange rate, we guide for revenues of $590 to $630 million and gross margins of 24% to 25%."
Dr. Paul continued, "Vishay's share of revenues in euro and share of costs in euro—variable as well as fixed—are approximately balanced. As a consequence, a weaker euro means that both revenues and costs translated into U.S. dollars decrease, in effect practically offsetting each other."
A conference call to discuss fourth quarter and year ending financial results is scheduled for Thursday, February 5, 2015 at 11:00 AM 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 63743625.
There will be a replay of the conference call from 2:00 PM ET on Thursday, February 5, 2015 through 11:59 PM ET on Wednesday, February 11, 2015. 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 63743625.
There will also be a live audio webcast of the conference call. This can be accessed directly from the Investor Relations section of the Vishay website at http://ir.vishay.com.
About Vishay
Vishay Intertechnology, Inc., a Fortune 1,000 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 http://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; 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, 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 term "EBITDA" is not defined in GAAP, the measure is 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 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, cash generation, internal growth and acquisition activity and results, new product development, cost reduction programs, and the general state of the Company, 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; difficulties in implementing our cost reduction strategies; 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; uncertainty related to the effects of changes in foreign currency exchange rates; 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.
