Enhanced Investments - Financial Portal

Published: 2022-02-08 07:19:53 ET

EX-99.1 3 exhibit99-2.htm EXHIBIT 99.2

Exhibit 99.2

VISHAY REPORTS RESULTS FOR FOURTH QUARTER AND YEAR 2021

•	Revenues Q4 of $843 million; year 2021 of $3,240 million.

•	Gross margin Q4 of 27.3%; year 2021 of 27.4%.

•	Operating margin Q4 of 14.4%; year 2021 of 14.4%.

•	EPS Q4 of $0.25; year 2021 of $2.05.

•	Adjusted EPS Q4 of $0.62; year 2021 of $2.32.

•	Free Cash for the year of 2021 of $240 million.

•	Guidance Q1 2022 for revenues of $820 to $860 million and at a gross margin of 27.3% plus/minus 50 basis points at Q4 exchange rates.

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, 2021.

Revenues for the year ended December 31, 2021 were $3,240.5 million, compared to $2,501.9 million for the year ended December 31, 2020. Net earnings attributable to Vishay stockholders for the year ended December 31, 2021 were $298.0 million, or $2.05 per diluted share compared to $122.9 million, or $0.85 per diluted share for the year ended December 31, 2020.

Revenues for the fiscal quarter ended December 31, 2021 were $843.1 million, compared to $813.7 million for the fiscal quarter ended October 2, 2021, and $667.2 million for the fiscal quarter ended December 31, 2020. Net earnings attributable to Vishay stockholders for the fiscal quarter ended December 31, 2021 were $36.5 million, or $0.25 per diluted share, compared to $96.8 million, or $0.67 per diluted share for the fiscal quarter ended October 2, 2021, and $37.6 million, or $0.26 per diluted share for the fiscal quarter ended December 31, 2020.

As a direct result of a change in tax law in Israel, the Company made the determination during the fourth fiscal quarter of 2021 that substantially all unremitted foreign earnings in Israel are no longer permanently reinvested, and recorded additional tax expense of $53.3 million.

As summarized on the attached reconciliation schedule, all periods presented include items affecting comparability. Adjusted earnings per diluted share, which exclude these items net of tax and the unusual tax items, were $0.62 and $2.32 for the fiscal quarter and year ended December 31, 2021, respectively, $0.63 for the fiscal quarter ended October 2, 2021, and $0.28 and $0.92 for the fiscal quarter and year ended December 31, 2020, respectively.

Commenting on results for the year 2021, Dr. Gerald Paul, President and Chief Executive Officer stated, “Despite ongoing pandemic related issues and accelerated inflation, the year 2021 was one of Vishay’s most successful years. We continued to expand in critical manufacturing capacities and we defined programs for higher growth in the future. Even with elevated capital expenditures Vishay generated free cash of $240 million in the year.”

Dr. Paul continued, commenting on the results for the fourth quarter 2021, “Revenues came in at the high end of our guidance but margins were negatively impacted by higher than anticipated costs for logistics as well as for materials and services. We expect to continue to raise prices and to return to historical levels of contribution margins in the course of 2022.”

Commenting on the outlook Dr. Paul stated, “For the first quarter 2022, we guide for revenues in the range of $820 to $860 million at a gross margin of 27.3% plus/minus 50 basis points, assuming the same exchange rates versus the dollar as in the fourth quarter.”

A conference call to discuss Vishay’s fourth quarter and full year financial results is scheduled for Tuesday, February 8, 2022 at 9:00 a.m. ET. The dial-in number for the conference call is 201-389-0921 (+1 877-407-0989, if calling from outside the United States) and the access code is 13725599.

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 12:00 p.m. ET on Tuesday, February 8, 2022 through 11:59 p.m. ET on Tuesday, February 22, 2022. 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 13725599.

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, margins, product pricing, 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 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.

VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(In thousands, except per share amounts)

	Years ended
	December 31, 2021			December 31, 2020
	(unaudited)

Net revenues	$	3,240,487		$	2,501,898
Costs of products sold*		2,352,574			1,919,995
Gross profit		887,913			581,903
Gross margin		27.4	%		23.3	%

Selling, general, and administrative expenses*		420,111			371,450
Restructuring and severance costs		-			743
Operating income		467,802			209,710
Operating margin		14.4	%		8.4	%

Other income (expense):
Interest expense		(17,538	)		(31,555	)
Loss on early extinguishment of debt		-			(8,073	)
Other		(15,654	)		(11,754	)
Total other income (expense) - net		(33,192	)		(51,382	)

Income before taxes		434,610			158,328

Income tax expense		135,673			34,545

Net earnings		298,937			123,783

Less: net earnings attributable to noncontrolling interests		967			860

Net earnings attributable to Vishay stockholders	$	297,970		$	122,923

Basic earnings per share attributable to Vishay stockholders	$	2.05		$	0.85

Diluted earnings per share attributable to Vishay stockholders	$	2.05		$	0.85

Weighted average shares outstanding - basic		145,005			144,836

Weighted average shares outstanding - diluted		145,495			145,228

Cash dividends per share	$	0.385		$	0.380

* The year ended December 31, 2020 includes incremental costs of products sold and selling, general, and administrative expenses (benefits) separable from normal operations directly attributable to the COVID-19 pandemic of $4,563 and $(1,451), respectively.

VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands, except per share amounts)

	Fiscal quarters ended
	December 31, 2021			October 2, 2021			December 31, 2020

Net revenues	$	843,072		$	813,663		$	667,180
Costs of products sold*		613,116			587,927			514,896
Gross profit		229,956			225,736			152,284
Gross margin		27.3	%		27.7	%		22.8	%

Selling, general, and administrative expenses*		108,311			102,215			92,272
Operating income		121,645			123,521			60,012
Operating margin		14.4	%		15.2	%		9.0	%

Other income (expense):
Interest expense		(4,292	)		(4,427	)		(7,159	)
Loss on early extinguishment of debt		-			-			(553	)
Other		(3,495	)		(2,679	)		(5,570	)
Total other income (expense) - net		(7,787	)		(7,106	)		(13,282	)

Income before taxes		113,858			116,415			46,730

Income tax expense		77,027			19,333			8,887

Net earnings		36,831			97,082			37,843

Less: net earnings attributable to noncontrolling interests		308			262			276

Net earnings attributable to Vishay stockholders	$	36,523		$	96,820		$	37,567

Basic earnings per share attributable to Vishay stockholders	$	0.25		$	0.67		$	0.26

Diluted earnings per share attributable to Vishay stockholders	$	0.25		$	0.67		$	0.26

Weighted average shares outstanding - basic		145,019			145,017			144,855

Weighted average shares outstanding - diluted		145,617			145,458			145,251

Cash dividends per share	$	0.100		$	0.095		$	0.095

* The fiscal quarter ended October 3, 2020 includes incremental costs of products sold and selling, general, and administrative expenses (benefits) separable from normal operations directly attributable to the COVID-19 pandemic of $268 and $(580), respectively.

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(In thousands)

	December 31, 2021			December 31, 2020
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	774,108		$	619,874
Short-term investments		146,743			158,476
Accounts receivable, net		396,458			338,632
Inventories:
Finished goods		147,293			120,792
Work in process		226,496			201,259
Raw materials		162,711			126,200
Total inventories		536,500			448,251

Prepaid expenses and other current assets		156,689			132,103
Total current assets		2,010,498			1,697,336

Property and equipment, at cost:
Land		74,646			76,231
Buildings and improvements		639,879			641,041
Machinery and equipment		2,758,262			2,732,771
Construction in progress		145,828			86,520
Allowance for depreciation		(2,639,136	)		(2,593,398	)
		979,479			943,165

Right of use assets		117,635			102,440
Deferred income taxes		95,037			88,530
Goodwill		165,269			158,183
Other intangible assets, net		67,714			66,795
Other assets		107,625			98,024
Total assets	$	3,543,257		$	3,154,473

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets (continued)
(In thousands)

	December 31, 2021			December 31, 2020
	(Unaudited)

Liabilities and equity
Current liabilities:
Trade accounts payable	$	254,049		$	196,203
Payroll and related expenses		162,694			141,034
Lease liabilities		23,392			22,074
Other accrued expenses		218,089			182,642
Income taxes		35,443			20,470
Total current liabilities		693,667			562,423

Long-term debt less current portion		455,666			394,886
U.S. transition tax payable		110,681			125,438
Deferred income taxes		69,003			1,852
Long-term lease liabilities		99,987			86,220
Other liabilities		95,861			104,356
Accrued pension and other postretirement costs		271,672			300,113
Total liabilities		1,796,537			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		1,347,830			1,409,200
Retained earnings		401,694			138,990
Accumulated other comprehensive income (loss)		(20,252	)		13,559
Total Vishay stockholders' equity		1,743,753			1,576,215
Noncontrolling interests		2,967			2,800
Total equity		1,746,720			1,579,015
Total liabilities, temporary equity, and equity	$	3,543,257		$	3,154,473

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Cash Flows
(In thousands)
	Years ended
	December 31, 2021			December 31, 2020
	(unaudited)
Operating activities
Net earnings	$	298,937		$	123,783
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		167,037			166,230
(Gain) loss on disposal of property and equipment		(303	)		157
Accretion of interest on convertible debt instruments		-			13,161
Inventory write-offs for obsolescence		20,657			22,730
Pensions and other postretirement benefits, net of contributions		2,106			2,864
Loss on early extinguishment of debt		-			8,073
Deferred income taxes		50,613			(12,141	)
Other		16,226			3,304
Change in U.S. transition tax liability		(14,757	)		(14,757	)
Change in repatriation tax liability		-			(16,258	)
Changes in operating assets and liabilities, net of effects of business acquired		(83,412	)		17,792
Net cash provided by operating activities		457,104			314,938

Investing activities
Purchase of property and equipment		(218,372	)		(123,599	)
Proceeds from sale of property and equipment		1,317			403
Purchase of businesses, net of cash acquired		(20,847	)		(25,852	)
Purchase of short-term investments		(140,603	)		(293,087	)
Maturity of short-term investments		147,893			250,580
Other investing activities		129			(529	)
Net cash used in investing activities		(230,483	)		(192,084	)

Financing activities
Repurchase of convertible debt instruments		(300	)		(151,683	)
Net changes in short-term borrowings		-			(114	)
Dividends paid to common stockholders		(51,094	)		(50,372	)
Dividends paid to Class B common stockholders		(4,657	)		(4,597	)
Distributions to noncontrolling interests		(800	)		(600	)
Cash withholding taxes paid when shares withheld for vested equity awards		(1,963	)		(2,016	)
Net cash used in financing activities		(58,814	)		(209,382	)
Effect of exchange rate changes on cash and cash equivalents		(13,573	)		12,269

Net increase (decrease) in cash and cash equivalents		154,234			(74,259	)

Cash and cash equivalents at beginning of period		619,874			694,133
Cash and cash equivalents at end of period	$	774,108		$	619,874

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of Adjusted Earnings Per Share
(Unaudited - In thousands, except per share amounts)
	Fiscal quarters ended								Years ended
	December 31, 2021		October 2, 2021			December 31, 2020			December 31, 2021			December 31, 2020

GAAP net earnings attributable to Vishay stockholders	$	36,523	$	96,820		$	37,567		$	297,970		$	122,923

Reconciling items affecting gross profit:
Impact of the COVID-19 pandemic	$	-	$	-		$	268		$	-		$	4,563

Other reconciling items affecting operating income:
Restructuring and severance costs	$	-	$	-		$	-		$	-		$	743
Impact of the COVID-19 pandemic		-		-			(580	)		-			(1,451	)

Reconciling items affecting other income (expense):
Loss on early extinguishment of debt	$	-	$	-		$	553		$	-		$	8,073

Reconciling items affecting tax expense (benefit):
Changes in tax laws and regulations	$	53,316	$	-		$	-		$	45,040		$	-
Change in deferred taxes due to early extinguishment of debt		-		-			(217	)		-			(1,563	)
Effects of cash repatriation program		-		-			-			-			(190	)
Effects of changes in valuation allowances		-		(5,714	)		-			(5,714	)		-
Effects of changes in uncertain tax positions		-		-			3,751			-			3,751
Tax effects of pre-tax items above		-		-			(12	)		-			(2,799	)

Adjusted net earnings	$	89,839	$	91,106		$	41,330		$	337,296		$	134,050

Adjusted weighted average diluted shares outstanding		145,617		145,458			145,251			145,495			145,228

Adjusted earnings per diluted share	$	0.62	$	0.63		$	0.28		$	2.32		$	0.92

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of Free Cash
(Unaudited - In thousands)
	Fiscal quarters ended									Years ended
	December 31, 2021			October 2, 2021			December 31, 2020			December 31, 2021			December 31, 2020
Net cash provided by operating activities	$	146,652		$	135,669		$	125,699		$	457,104		$	314,938
Proceeds from sale of property and equipment		60			1,023			110			1,317			403
Less: Capital expenditures		(100,216	)		(57,446	)		(52,798	)		(218,372	)		(123,599	)
Free cash	$	46,496		$	79,246		$	73,011		$	240,049		$	191,742

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of EBITDA and Adjusted EBITDA
(Unaudited - In thousands)
	Fiscal quarters ended									Years ended
	December 31, 2021			October 2, 2021			December 31, 2020			December 31, 2021			December 31, 2020

GAAP net earnings attributable to Vishay stockholders	$	36,523		$	96,820		$	37,567		$	297,970		$	122,923
Net earnings attributable to noncontrolling interests		308			262			276			967			860
Net earnings	$	36,831		$	97,082		$	37,843		$	298,937		$	123,783

Interest expense	$	4,292		$	4,427		$	7,159		$	17,538		$	31,555
Interest income		(362	)		(295	)		(385	)		(1,269	)		(3,709	)
Income taxes		77,027			19,333			8,887			135,673			34,545
Depreciation and amortization		41,942			41,216			42,454			167,037			166,230
EBITDA	$	159,730		$	161,763		$	95,958		$	617,916		$	352,404

Reconciling items
Impact of the COVID-19 pandemic	$	-		$	-		$	(312	)	$	-		$	3,112
Restructuring and severance costs		-			-			-			-			743
Loss on early extinguishment of debt		-			-			553			-			8,073

Adjusted EBITDA	$	159,730		$	161,763		$	96,199		$	617,916		$	364,332

Adjusted EBITDA margin**		18.9	%		19.9	%		14.4	%		19.1	%		14.6	%

** Adjusted EBITDA as a percentage of net revenues

Contact:

Vishay Intertechnology, Inc.

Peter Henrici

Senior Vice President, Corporate Communications

+1-610-644-1300

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.