VISHAY REPORTS RESULTS FOR FIRST QUARTER 2015
| · | Revenues for Q1 2015 $593 million |
| · | Operating margin Q1 2015 of 8.0%, or adjusted operating margin of 8.3% |
| · | EPS Q1 2015 of $0.20, or adjusted EPS of $0.21 |
| · | Cash from operations for trailing twelve months Q1 2015 of $281 million and capital expenditures of $157 million |
| · | Guidance for Q2 2015 for revenues of $600 - $640 million and gross margins of 24% to 26% |
| · | Book-to-bill Q1 2015 1.05 |
MALVERN, PENNSYLVANIA – May 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 fiscal quarter ended April 4, 2015.
Revenues for the fiscal quarter ended April 4, 2015 were $593.4 million, compared to $602.4 million for the fiscal quarter ended March 29, 2014. The net earnings attributable to Vishay stockholders for the fiscal quarter ended April 4, 2015 were $30.7 million, or $0.20 per diluted share, compared to $25.8 million, or $0.17 per diluted share for the fiscal quarter ended March 29, 2014.
Net earnings attributable to Vishay stockholders for the fiscal quarter ended April 4, 2015 include restructuring and severance costs of $1.4 million. Net earnings attributable to Vishay stockholders for the fiscal quarter ended March 29, 2014 include restructuring and severance costs of $6.4 million. These items are summarized on the attached reconciliation schedule. Adjusted earnings per diluted share, which exclude these items, were $0.21 and $0.20 for the fiscal quarters ended April 4, 2015 and March 29, 2014, respectively.
Commenting on the results for the first quarter 2015, Dr. Gerald Paul, President and Chief Executive Officer, stated, "Despite the recent substantial strengthening of the US dollar versus the euro, Vishay had a promising start into 2015. Obviously, our revenue expressed in US dollars was negatively impacted—by $19 million sequentially—but Vishay was able to maintain its profitability. Vishay's share of revenues in euro as well as share of total costs in euro are approximately balanced. A weaker euro means that both revenues and costs translated into U.S. dollars decrease, in effect practically offsetting each other with only a slight effect on Vishay's bottom line."
Dr. Gerald Paul continued, "During the first quarter 2015, we recorded a book-to-bill above parity for all regions, all sales channels, all end markets and nearly all business segments. The overall price pressure remained at a low level. Excluding exchange rate effects, sales of Vishay products by its distributors to end customers increased slightly sequentially and inventories of Vishay products at its distributors decreased."
Commenting on the outlook for the second quarter 2015 Dr. Paul stated, "Based on a 1.10 U.S. dollar to euro exchange rate, we guide for revenues of $600 to $640 million—representing an increase of 6% sequentially at constant exchange rates—and for gross margins of 24% to 26%."
A conference call to discuss first quarter financial results is scheduled for Tuesday, May 5, 2015 at 10:00 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 25675540.
There will be a replay of the conference call from 1:00 PM ET on Tuesday, May 5, 2015 through 11:59 PM ET on Tuesday, May 12, 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 25675540.
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 https://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.
| VISHAY INTERTECHNOLOGY, INC. | | | | | | | | | |
| Summary of Operations | | | | | | | | | |
| (Unaudited - In thousands, except per share amounts) | | | | | | | | | |
| | | | | | | | | | |
| | | Fiscal quarters ended | |
| | | April 4, 2015 | | | December 31, 2014 | | | March 29, 2014 | |
| | | | | | | | | | |
| Net revenues | | $ | 593,436 | | | $ | 610,764 | | | $ | 602,378 | |
| Costs of products sold | | | 448,398 | | | | 467,240 | | | | 457,095 | |
| Gross profit | | | 145,038 | | | | 143,524 | | | | 145,283 | |
| Gross margin | | | 24.4 | % | | | 23.5 | % | | | 24.1 | % |
| | | | | | | | | | | | | |
| Selling, general, and administrative expenses | | | 96,070 | | | | 98,396 | | | | 96,307 | |
| Restructuring and severance costs | | | 1,410 | | | | 1,971 | | | | 6,404 | |
| Operating income | | | 47,558 | | | | 43,157 | | | | 42,572 | |
| Operating margin | | | 8.0 | % | | | 7.1 | % | | | 7.1 | % |
| | | | | | | | | | | | | |
| Other income (expense): | | | | | | | | | | | | |
| Interest expense | | | (6,361 | ) | | | (6,489 | ) | | | (5,980 | ) |
| Other | | | 3,460 | | | | 1,443 | | | | 1,312 | |
| Total other income (expense) - net | | | (2,901 | ) | | | (5,046 | ) | | | (4,668 | ) |
| | | | | | | | | | | | | |
| Income before taxes | | | 44,657 | | | | 38,111 | | | | 37,904 | |
| | | | | | | | | | | | | |
| Income taxes | | | 13,732 | | | | 9,041 | | | | 11,940 | |
| | | | | | | | | | | | | |
| Net earnings | | | 30,925 | | | | 29,070 | | | | 25,964 | |
| | | | | | | | | | | | | |
| Less: net earnings (loss) attributable to noncontrolling interests | | | 226 | | | | (136 | ) | | | 154 | |
| | | | | | | | | | | | | |
| Net earnings attributable to Vishay stockholders | | $ | 30,699 | | | $ | 29,206 | | | $ | 25,810 | |
| | | | | | | | | | | | | |
| Basic earnings per share attributable to Vishay stockholders | | $ | 0.21 | | | $ | 0.20 | | | $ | 0.17 | |
| | | | | | | | | | | | | |
| Diluted earnings per share attributable to Vishay stockholders | | $ | 0.20 | | | $ | 0.19 | | | $ | 0.17 | |
| | | | | | | | | | | | | |
| Weighted average shares outstanding - basic | | | 147,698 | | | | 147,572 | | | | 147,557 | |
| | | | | | | | | | | | | |
| Weighted average shares outstanding - diluted | | | 152,666 | | | | 152,440 | | | | 152,556 | |
| | | | | | | | | | | | | |
| Cash dividends per share | | $ | 0.06 | | | $ | 0.06 | | | $ | 0.06 | |
| VISHAY INTERTECHNOLOGY, INC. | | | | | | |
| Consolidated Condensed Balance Sheets | | | | | | |
| (In thousands) | | | | | | |
| | | | | | | |
| | | April 4, 2015 | | | December 31, 2014 | |
| | | (unaudited) | | | | |
| Assets | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 517,002 | | | $ | 592,172 | |
| Short-term investments | | | 539,046 | | | | 514,776 | |
| Accounts receivable, net | | | 288,273 | | | | 271,554 | |
| Inventories: | | | | | | | | |
| Finished goods | | | 115,547 | | | | 113,361 | |
| Work in process | | | 186,758 | | | | 185,769 | |
| Raw materials | | | 124,799 | | | | 125,464 | |
| Total inventories | | | 427,104 | | | | 424,594 | |
| | | | | | | | | |
| Deferred income taxes | | | 20,415 | | | | 17,815 | |
| Prepaid expenses and other current assets | | | 103,149 | | | | 105,539 | |
| Total current assets | | | 1,894,989 | | | | 1,926,450 | |
| | | | | | | | | |
| Property and equipment, at cost: | | | | | | | | |
| Land | | | 89,594 | | | | 91,844 | |
| Buildings and improvements | | | 547,523 | | | | 560,926 | |
| Machinery and equipment | | | 2,330,646 | | | | 2,368,046 | |
| Construction in progress | | | 65,321 | | | | 82,684 | |
| Allowance for depreciation | | | (2,180,926 | ) | | | (2,205,405 | ) |
| | | | 852,158 | | | | 898,095 | |
| | | | | | | | | |
| Goodwill | | | 143,617 | | | | 144,359 | |
| | | | | | | | | |
| Other intangible assets, net | | | 177,979 | | | | 186,613 | |
| | | | | | | | | |
| Other assets | | | 143,023 | | | | 143,256 | |
| Total assets | | $ | 3,211,766 | | | $ | 3,298,773 | |
| | | | | | | | | |
| VISHAY INTERTECHNOLOGY, INC. | | | | | | |
| Consolidated Condensed Balance Sheets (continued) | | | | | | |
| (In thousands) | | | | | | |
| | | | | | | |
| | | April 4, 2015 | | | December 31, 2014 | |
| | | (unaudited) | | | | |
| Liabilities and stockholders' equity | | | | | | |
| Current liabilities: | | | | | | |
| Notes payable to banks | | $ | 12 | | | $ | 18 | |
| Trade accounts payable | | | 156,114 | | | | 174,451 | |
| Payroll and related expenses | | | 115,346 | | | | 120,023 | |
| Other accrued expenses | | | 139,821 | | | | 137,576 | |
| Income taxes | | | 29,927 | | | | 24,671 | |
| Total current liabilities | | | 441,220 | | | | 456,739 | |
| | | | | | | | | |
| Long-term debt less current portion | | | 470,905 | | | | 454,922 | |
| Deferred income taxes | | | 177,903 | | | | 178,900 | |
| Other liabilities | | | 66,086 | | | | 76,811 | |
| Accrued pension and other postretirement costs | | | 276,626 | | | | 300,524 | |
| Total liabilities | | | 1,432,740 | | | | 1,467,896 | |
| | | | | | | | | |
| Equity: | | | | | | | | |
| Vishay stockholders' equity | | | | | | | | |
| Common stock | | | 13,544 | | | | 13,532 | |
| Class B convertible common stock | | | 1,213 | | | | 1,213 | |
| Capital in excess of par value | | | 2,055,679 | | | | 2,055,246 | |
| Retained earnings (accumulated deficit) | | | (153,648 | ) | | | (175,485 | ) |
| Accumulated other comprehensive income (loss) | | | (143,499 | ) | | | (69,140 | ) |
| Total Vishay stockholders' equity | | | 1,773,289 | | | | 1,825,366 | |
| Noncontrolling interests | | | 5,737 | | | | 5,511 | |
| Total equity | | | 1,779,026 | | | | 1,830,877 | |
| Total liabilities and equity | | $ | 3,211,766 | | | $ | 3,298,773 | |
| | | | | | | | | |
| VISHAY INTERTECHNOLOGY, INC. | | | | | | |
| Consolidated Condensed Statements of Cash Flows | | | | | | |
| (Unaudited - In thousands) | | | | | | |
| | | Fiscal quarters ended | |
| | | April 4, 2015 | | | March 29, 2014 | |
| | | | | | | |
| Operating activities | | | | | | |
| Net earnings | | $ | 30,925 | | | $ | 25,964 | |
| Adjustments to reconcile net earnings to | | | | | | | | |
| net cash provided by operating activities: | | | | | | | | |
| Depreciation and amortization | | | 45,410 | | | | 43,355 | |
| (Gain) loss on disposal of property and equipment | | | (83 | ) | | | (60 | ) |
| Accretion of interest on convertible debentures | | | 1,036 | | | | 958 | |
| Inventory write-offs for obsolescence | | | 4,854 | | | | 4,516 | |
| Other | | | (7,080 | ) | | | 1,804 | |
| Changes in operating assets and liabilities, | | | | | | | | |
| net of effects of businesses acquired | | | (61,564 | ) | | | (46,583 | ) |
| Net cash provided by operating activities | | | 13,498 | | | | 29,954 | |
| | | | | | | | | |
| Investing activities | | | | | | | | |
| Purchase of property and equipment | | | (19,782 | ) | | | (19,347 | ) |
| Proceeds from sale of property and equipment | | | 719 | | | | 1,197 | |
| Purchase of short-term investments | | | (78,905 | ) | | | (28,423 | ) |
| Maturity of short-term investments | | | 17,414 | | | | 50,400 | |
| Sale of short-term investments | | | 503 | | | | - | |
| Sale of other investments | | | 400 | | | | - | |
| Other investing activities | | | 977 | | | | 459 | |
| Net cash provided by (used in) investing activities | | | (78,674 | ) | | | 4,286 | |
| | | | | | | | | |
| Financing activities | | | | | | | | |
| Principal payments on long-term debt and capital lease obligations | | | - | | | | (7 | ) |
| Net proceeds (payments) on revolving credit lines | | | 15,000 | | | | (4,000 | ) |
| Dividends paid to common stockholders | | | (8,126 | ) | | | (8,119 | ) |
| Dividends paid to Class B common stockholders | | | (728 | ) | | | (728 | ) |
| Net changes in short-term borrowings | | | (6 | ) | | | 20 | |
| Distributions to noncontrolling interests | | | - | | | | (300 | ) |
| Excess tax benefit from RSUs vested | | | 21 | | | | - | |
| Net cash provided by (used in) financing activities | | | 6,161 | | | | (13,134 | ) |
| Effect of exchange rate changes on cash and cash equivalents | | | (16,155 | ) | | | 3 | |
| | | | | | | | | |
| Net increase (decrease) in cash and cash equivalents | | | (75,170 | ) | | | 21,109 | |
| | | | | | | | | |
| Cash and cash equivalents at beginning of period | | | 592,172 | | | | 640,348 | |
| Cash and cash equivalents at end of period | | $ | 517,002 | | | | 661,457 | |
| VISHAY INTERTECHNOLOGY, INC. | | | | | | | | | |
| Reconciliation of Adjusted Earnings Per Share | | | | | | | | | |
| (Unaudited - In thousands, except per share amounts) | | | | | | | | | |
| | | Fiscal quarters ended | |
| | | April 4, 2015 | | | December 31, 2014 | | | March 29, 2014 | |
| | | | | | | | | | |
| GAAP net earnings attributable to Vishay stockholders | | $ | 30,699 | | | $ | 29,206 | | | $ | 25,810 | |
| | | | | | | | | | | | | |
Reconciling items affecting operating margin: | | | | | | | | | | | | |
| Restructuring and severance costs | | $ | 1,410 | | | $ | 1,971 | | | $ | 6,404 | |
| | | | | | | | | | | | | |
Reconciling items affecting tax expense (benefit): | | | | | | | | | | | | |
| Tax effects of items above and other one-time tax expense (benefit) | | $ | (508 | ) | | $ | (1,991 | ) | | $ | (2,097 | ) |
| | | | | | | | | | | | | |
| Adjusted net earnings | | $ | 31,601 | | | $ | 29,186 | | | $ | 30,117 | |
| | | | | | | | | | | | | |
| Adjusted weighted average diluted shares outstanding | | | 152,666 | | | | 152,440 | | | | 152,556 | |
| | | | | | | | | | | | | |
| Adjusted earnings per diluted share* | | $ | 0.21 | | | $ | 0.19 | | | $ | 0.20 | |
| | | | | | | | | | | | | |
| * Includes add-back of interest on exchangeable notes in periods where the notes are dilutive. | | | | | |
| VISHAY INTERTECHNOLOGY, INC. | | | | | | | | | |
| Reconciliation of EBITDA and Adjusted EBITDA | | | | | | | | | |
| (Unaudited - In thousands) | | | | | | | | | |
| | | Fiscal quarters ended | |
| | | April 4, 2015 | | | December 31, 2014 | | | March 29, 2014 | |
| | | | | | | | | | |
| GAAP net earnings attributable to Vishay stockholders | | $ | 30,699 | | | $ | 29,206 | | | $ | 25,810 | |
| Net earnings attributable to noncontrolling interests | | | 226 | | | | (136 | ) | | | 154 | |
| Net earnings | | $ | 30,925 | | | $ | 29,070 | | | $ | 25,964 | |
| | | | | | | | | | | | | |
| Interest expense | | $ | 6,361 | | | $ | 6,489 | | | $ | 5,980 | |
| Interest income | | | (1,197 | ) | | | (1,283 | ) | | | (1,223 | ) |
| Income taxes | | | 13,732 | | | | 9,041 | | | | 11,940 | |
| Depreciation and amortization | | | 45,410 | | | | 47,111 | | | | 43,355 | |
| EBITDA | | $ | 95,231 | | | $ | 90,428 | | | $ | 86,016 | |
| | | | | | | | | | | | | |
Reconciling items | | | | | | | | | | | | |
| Restructuring and severance costs | | $ | 1,410 | | | $ | 1,971 | | | $ | 6,404 | |
| | | | | | | | | | | | | |
| Adjusted EBITDA | | $ | 96,641 | | | $ | 92,399 | | | $ | 92,420 | |
| | | | | | | | | | | | | |
| Adjusted EBITDA margin** | | | 16.3 | % | | | 15.1 | % | | | 15.3 | % |
| | | | | | | | | | | | | |
| ** Adjusted EBITDA as a percentage of net revenues | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Source: Vishay Intertechnology, Inc.
Contact:
Vishay Intertechnology, Inc.
Peter G. Henrici
Senior Vice President, Corporate Communications
+1-610-644-1300
