VISHAY REPORTS RESULTS FOR FIRST QUARTER 2016
| · | Revenues for Q1 2016 of $571 million |
| · | Operating Margin Q1 of 7.1% |
| · | Adjusted Operating Margin Q1 of 8.2% |
| · | Adjusted EPS Q1 of $0.19 |
| · | Cash from operations for trailing twelve months Q1 of $252 million and capital expenditures of $147 million |
| · | Stock repurchase program of $100 million over one year |
| · | Guidance for Q2 2016 for revenues of $565 - $605 million and gross margins of 23% - 25% |
MALVERN, PENNSYLVANIA – May 3, 2016 – 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 2, 2016.
Revenues for the fiscal quarter ended April 2, 2016 were $570.6 million, compared to $593.4 million for the fiscal quarter ended April 4, 2015. The net earnings attributable to Vishay stockholders for the fiscal quarter ended April 2, 2016 were $28.0 million, or $0.19 per diluted share, compared to $30.7 million, or $0.20 per diluted share for the fiscal quarter ended April 4, 2015.
Net earnings attributable to Vishay stockholders for the fiscal quarter ended April 2, 2016 include a gain on early extinguishment of debt of $3.6 million, restructuring and severance costs of $6.5 million, and a remeasurement of the deferred tax liability recorded for the cash repatriation program announced in the fourth fiscal quarter of 2015 of $0.8 million. Net earnings attributable to Vishay stockholders for the fiscal quarter ended April 4, 2015 include restructuring and severance costs of $1.4 million. These items are summarized on the attached reconciliation schedule. Adjusted earnings per diluted share, which exclude these items, were $0.19 and $0.21 for the fiscal quarters ended April 2, 2016 and April 4, 2015, respectively.
Commenting on the results for the first quarter 2016, Dr. Gerald Paul, President and Chief Executive Officer, stated, "A broad recovery of orders from all regions resulted in higher revenues than expected. The automotive market and several industrial product sectors continue to do well. The point of sales of distribution improved during the first quarter and inventory turns for Vishay products at distributors recovered. The production move of MOSFETs has been finalized as scheduled and we will enjoy major cost benefits going forward."
Dr. Paul continued, "We continue to focus on total stockholder return. After having announced the repatriation of $300 million of foreign earnings over the next several years, we are now initiating a $100 million stock repurchase program over one year."
Commenting on the outlook Dr. Paul stated, "For the second quarter, we guide for revenues of $565 to $605 million and gross margins of 23% to 25% at constant exchange rates."
A conference call to discuss Vishay's first quarter financial results is scheduled for Tuesday, May 3, 2016 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 or Canada) and the conference ID is 87659879.
There will be a replay of the conference call from 12:00 p.m. ET on Tuesday, May 3, 2016 through 11:59 p.m. ET on Tuesday, May 10, 2016. 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 87659879.
A live audio webcast of the conference call and a PDF copy of the press release and the quarterly presentation 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 1000 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 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, repatriation of foreign earnings, cost reduction programs and their financial impact, 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; delays or difficulties in implementing our cost reduction strategies; 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 applicable domestic and foreign tax regulations and uncertainty regarding the same; 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 2, 2016 | | | December 31, 2015 | | | April 4, 2015 | |
| | | | | | | | | | |
| Net revenues | | $ | 570,606 | | | $ | 555,928 | | | $ | 593,436 | |
| Costs of products sold | | | 433,297 | | | | 430,372 | | | | 448,398 | |
| Gross profit | | | 137,309 | | | | 125,556 | | | | 145,038 | |
| Gross margin | | | 24.1 | % | | | 22.6 | % | | | 24.4 | % |
| | | | | | | | | | | | | |
| Selling, general, and administrative expenses | | | 90,286 | | | | 85,509 | | | | 96,070 | |
| Restructuring and severance costs | | | 6,475 | | | | 9,821 | | | | 1,410 | |
| Operating income (loss) | | | 40,548 | | | | 30,226 | | | | 47,558 | |
| Operating margin | | | 7.1 | % | | | 5.4 | % | | | 8.0 | % |
| | | | | | | | | | | | | |
| Other income (expense): | | | | | | | | | | | | |
| Interest expense | | | (6,466 | ) | | | (5,911 | ) | | | (6,361 | ) |
| Other | | | 779 | | | | 116 | | | | 3,460 | |
| Gain on early extinguishment of debt | | | 3,611 | | | | - | | | | - | |
| Total other income (expense) - net | | | (2,076 | ) | | | (5,795 | ) | | | (2,901 | ) |
| | | | | | | | | | | | | |
| Income (loss) before taxes | | | 38,472 | | | | 24,431 | | | | 44,657 | |
| | | | | | | | | | | | | |
| Income taxes | | | 10,320 | | | | 162,057 | | | | 13,732 | |
| | | | | | | | | | | | | |
| Net earnings (loss) | | | 28,152 | | | | (137,626 | ) | | | 30,925 | |
| | | | | | | | | | | | | |
| Less: net earnings (loss) attributable to noncontrolling interests | | | 138 | | | | 189 | | | | 226 | |
| | | | | | | | | | | | | |
| Net earnings (loss) attributable to Vishay stockholders | | $ | 28,014 | | | $ | (137,815 | ) | | $ | 30,699 | |
| | | | | | | | | | | | | |
| Basic earnings (loss) per share attributable to Vishay stockholders | | $ | 0.19 | | | $ | (0.93 | ) | | $ | 0.21 | |
| | | | | | | | | | | | | |
| Diluted earnings (loss) per share attributable to Vishay stockholders | | $ | 0.19 | | | $ | (0.93 | ) | | $ | 0.20 | |
| | | | | | | | | | | | | |
| Weighted average shares outstanding - basic | | | 147,832 | | | | 147,702 | | | | 147,698 | |
| | | | | | | | | | | | | |
| Weighted average shares outstanding - diluted | | | 150,627 | | | | 147,702 | | | | 152,666 | |
| | | | | | | | | | | | | |
| Cash dividends per share | | $ | 0.0625 | | | $ | 0.0600 | | | $ | 0.0600 | |
| | | | | | | | | | | | | |
| VISHAY INTERTECHNOLOGY, INC. | | | | | | |
| Consolidated Condensed Balance Sheets | | | | | | |
| (In thousands) | | | | | | |
| | | | | | | |
| | | April 2, 2016 | | | December 31, 2015 | |
| | | (unaudited) | | | | |
| Assets | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 531,296 | | | $ | 475,507 | |
| Short-term investments | | | 544,328 | | | | 619,040 | |
| Accounts receivable, net | | | 286,996 | | | | 272,559 | |
| Inventories: | | | | | | | | |
| Finished goods | | | 118,276 | | | | 108,869 | |
| Work in process | | | 201,133 | | | | 201,045 | |
| Raw materials | | | 106,836 | | | | 110,657 | |
| Total inventories | | | 426,245 | | | | 420,571 | |
| | | | | | | | | |
| Prepaid expenses and other current assets | | | 99,753 | | | | 99,815 | |
| Total current assets | | | 1,888,618 | | | | 1,887,492 | |
| | | | | | | | | |
| Property and equipment, at cost: | | | | | | | | |
| Land | | | 91,351 | | | | 89,593 | |
| Buildings and improvements | | | 575,447 | | | | 562,171 | |
| Machinery and equipment | | | 2,424,312 | | | | 2,380,299 | |
| Construction in progress | | | 68,514 | | | | 79,910 | |
| Allowance for depreciation | | | (2,299,172 | ) | | | (2,246,677 | ) |
| | | | 860,452 | | | | 865,296 | |
| | | | | | | | | |
| Goodwill | | | 142,183 | | | | 138,244 | |
| | | | | | | | | |
| Other intangible assets, net | | | 100,541 | | | | 103,258 | |
| | | | | | | | | |
| Other assets | | | 154,830 | | | | 158,696 | |
| Total assets | | $ | 3,146,624 | | | $ | 3,152,986 | |
| | | | | | | | | |
| VISHAY INTERTECHNOLOGY, INC. | | | | | | |
| Consolidated Condensed Balance Sheets (continued) | | | | | | |
| (In thousands) | | | | | | |
| | | | | | | |
| | | April 2, 2016 | | | December 31, 2015 | |
| | | (unaudited) | | | | |
| Liabilities and stockholders' equity | | | | | | |
| Current liabilities: | | | | | | |
| Notes payable to banks | | $ | 3 | | | $ | 4 | |
| Trade accounts payable | | | 143,375 | | | | 157,210 | |
| Payroll and related expenses | | | 112,114 | | | | 113,976 | |
| Other accrued expenses | | | 160,902 | | | | 164,336 | |
| Income taxes | | | 21,633 | | | | 22,198 | |
| Total current liabilities | | | 438,027 | | | | 457,724 | |
| | | | | | | | | |
| Long-term debt less current portion | | | 400,124 | | | | 436,738 | |
| Deferred income taxes | | | 306,333 | | | | 305,413 | |
| Other liabilities | | | 63,964 | | | | 60,450 | |
| Accrued pension and other postretirement costs | | | 255,447 | | | | 264,618 | |
| Total liabilities | | | 1,463,895 | | | | 1,524,943 | |
| | | | | | | | | |
| Equity: | | | | | | | | |
| Vishay stockholders' equity | | | | | | | | |
| Common stock | | | 13,556 | | | | 13,546 | |
| Class B convertible common stock | | | 1,213 | | | | 1,213 | |
| Capital in excess of par value | | | 2,059,228 | | | | 2,058,492 | |
| Retained earnings (accumulated deficit) | | | (300,673 | ) | | | (319,448 | ) |
| Accumulated other comprehensive income (loss) | | | (96,300 | ) | | | (131,327 | ) |
| Total Vishay stockholders' equity | | | 1,677,024 | | | | 1,622,476 | |
| Noncontrolling interests | | | 5,705 | | | | 5,567 | |
| Total equity | | | 1,682,729 | | | | 1,628,043 | |
| Total liabilities and equity | | $ | 3,146,624 | | | $ | 3,152,986 | |
| | | | | | | | | |
| VISHAY INTERTECHNOLOGY, INC. | | | | | | |
| Consolidated Condensed Statements of Cash Flows | | | | | | |
| (Unaudited - In thousands) | | | | | | |
| | | Fiscal quarters ended | |
| | | April 2, 2016 | | | April 4, 2015 | |
| | | | | | | |
| Operating activities | | | | | | |
| Net earnings | | $ | 28,152 | | | $ | 30,925 | |
| Adjustments to reconcile net earnings (loss) to | | | | | | | | |
| net cash provided by operating activities: | | | | | | | | |
| Depreciation and amortization | | | 40,017 | | | | 45,410 | |
| (Gain) loss on disposal of property and equipment | | | (22 | ) | | | (83 | ) |
| Accretion of interest on convertible debentures | | | 1,120 | | | | 1,036 | |
| Inventory write-offs for obsolescence | | | 5,816 | | | | 4,854 | |
| Gain on early extinguishment of debt | | | (3,611 | ) | | | - | |
| Other | | | (13,950 | ) | | | (7,080 | ) |
| Changes in operating assets and liabilities, | | | | | | | | |
| net of effects of businesses acquired | | | (37,264 | ) | | | (61,564 | ) |
| Net cash provided by operating activities | | | 20,258 | | | | 13,498 | |
| | | | | | | | | |
| Investing activities | | | | | | | | |
| Purchase of property and equipment | | | (19,756 | ) | | | (19,782 | ) |
| Proceeds from sale of property and equipment | | | 64 | | | | 719 | |
| Purchase of short-term investments | | | (24,588 | ) | | | (78,905 | ) |
| Maturity of short-term investments | | | 117,676 | | | | 17,414 | |
| Sale of short-term investments | | | - | | | | 503 | |
| Sale of other investments | | | - | | | | 400 | |
| Other investing activities | | | 2,975 | | | | 977 | |
| Net cash provided by (used in) investing activities | | | 76,371 | | | | (78,674 | ) |
| | | | | | | | | |
| Financing activities | | | | | | | | |
| Principal payments on long-term debt and capital lease obligations | | | (22,595 | ) | | | - | |
| Net proceeds (payments) on revolving credit lines | | | (12,000 | ) | | | 15,000 | |
| Net changes in short-term borrowings | | | (719 | ) | | | (6 | ) |
| Dividends paid to common stockholders | | | (8,473 | ) | | | (8,126 | ) |
| Dividends paid to Class B common stockholders | | | (758 | ) | | | (728 | ) |
| Excess tax benefit from RSUs vested | | | - | | | | 21 | |
| Net cash provided by (used in) financing activities | | | (44,545 | ) | | | 6,161 | |
| Effect of exchange rate changes on cash and cash equivalents | | | 3,705 | | | | (16,155 | ) |
| | | | | | | | | |
| Net increase (decrease) in cash and cash equivalents | | | 55,789 | | | | (75,170 | ) |
| | | | | | | | | |
| Cash and cash equivalents at beginning of period | | | 475,507 | | | | 592,172 | |
| Cash and cash equivalents at end of period | | $ | 531,296 | | | | 517,002 | |
VISHAY INTERTECHNOLOGY, INC. | | | | | | | | | |
| Reconciliation of Adjusted Earnings Per Share | | | | | | | | | |
| (Unaudited - In thousands, except per share amounts) | | | | | | | | | |
| | | Fiscal quarters ended | |
| | | April 2, 2016 | | | December 31, 2015 | | | April 4, 2015 | |
| | | | | | | | | | |
| GAAP net earnings (loss) attributable to Vishay stockholders | | $ | 28,014 | | | $ | (137,815 | ) | | $ | 30,699 | |
| | | | | | | | | | | | | |
Reconciling items affecting operating margin: | | | | | | | | | | | | |
| Restructuring and severance costs | | $ | 6,475 | | | $ | 9,821 | | | $ | 1,410 | |
| | | | | | | | | | | | | |
Reconciling items other income (expense): | | | | | | | | | | | | |
| Gain on early extinguishment of debt | | $ | (3,611 | ) | | $ | - | | | $ | - | |
| | | | | | | | | | | | | |
Reconciling items affecting tax expense (benefit): | | | | | | | | | | | | |
| Tax effects of items above and other one-time tax expense (benefit) | | $ | (1,656 | ) | | $ | 149,296 | | | $ | (508 | ) |
| | | | | | | | | | | | | |
| Adjusted net earnings | | $ | 29,222 | | | $ | 21,302 | | | $ | 31,601 | |
| | | | | | | | | | | | | |
| Adjusted weighted average diluted shares outstanding | | | 150,627 | | | | 150,497 | | | | 152,666 | |
| | | | | | | | | | | | | |
| Adjusted earnings per diluted share* | | $ | 0.19 | | | $ | 0.14 | | | $ | 0.21 | |
| | | | | | | | | | | | | |
| * 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 2, 2016 | | | December 31, 2015 | | | April 4, 2015 | |
| | | | | | | | | | |
| GAAP net earnings (loss) attributable to Vishay stockholders | | $ | 28,014 | | | $ | (137,815 | ) | | $ | 30,699 | |
| Net earnings attributable to noncontrolling interests | | | 138 | | | | 189 | | | | 226 | |
| Net earnings (loss) | | $ | 28,152 | | | $ | (137,626 | ) | | $ | 30,925 | |
| | | | | | | | | | | | | |
| Interest expense | | $ | 6,466 | | | $ | 5,911 | | | $ | 6,361 | |
| Interest income | | | (1,133 | ) | | | (1,057 | ) | | | (1,197 | ) |
| Income taxes | | | 10,320 | | | | 162,057 | | | | 13,732 | |
| Depreciation and amortization | | | 40,017 | | | | 41,888 | | | | 45,410 | |
| EBITDA | | $ | 83,822 | | | $ | 71,173 | | | $ | 95,231 | |
| | | | | | | | | | | | | |
Reconciling items | | | | | | | | | | | | |
| Restructuring and severance costs | | $ | 6,475 | | | $ | 9,821 | | | $ | 1,410 | |
| Gain on early extinguishment of debt | | | (3,611 | ) | | | - | | | | - | |
| | | | | | | | | | | | | |
| Adjusted EBITDA | | $ | 86,686 | | | $ | 80,994 | | | $ | 96,641 | |
| | | | | | | | | | | | | |
| Adjusted EBITDA margin** | | | 15.2 | % | | | 14.6 | % | | | 16.3 | % |
| | | | | | | | | | | | | |
| ** Adjusted EBITDA as a percentage of net revenues | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Source: Vishay Intertechnology, Inc.
Contact:
Vishay Intertechnology, Inc.
Peter Henrici
Senior Vice President, Corporate Communications
+1-610-644-1300
