•
|
Revenues Q4 of $667 million; year 2020 of $2,502 million.
|
•
|
Gross margin Q4 of 22.8%; year 2020 of 23.3%.
|
•
|
Adjusted gross margin Q4 of 22.9%; year 2020 of 23.4%.
|
•
|
Operating margin Q4 of 9.0%; year 2020 of 8.4%.
|
•
|
Adjusted operating margin Q4 of 8.9%; year 2020 of 8.5%.
|
•
|
EPS Q4 of $0.26; year 2020 of $0.85.
|
•
|
Adjusted EPS Q4 of $0.28; year 2020 of $0.92.
|
•
|
Free Cash for the year 2020 of $192 million.
|
•
|
Guidance Q1 2021 of revenues $705 to $745 million and gross margins of 25.0% plus/minus 60 basis points at the exchange rates of Q4 2020.
|
VISHAY INTERTECHNOLOGY, INC.
|
||||||||
Summary of Operations
|
||||||||
(In thousands, except per share amounts)
|
||||||||
Years ended
|
||||||||
December 31, 2020
|
December 31, 2019
|
|||||||
(Unaudited)
|
||||||||
Net revenues
|
$
|
2,501,898
|
$
|
2,668,305
|
||||
Costs of products sold*
|
1,919,995
|
1,997,105
|
||||||
Gross profit
|
581,903
|
671,200
|
||||||
Gross margin
|
23.3
|
%
|
25.2
|
%
|
||||
Selling, general, and administrative expenses*
|
371,450
|
384,631
|
||||||
Restructuring and severance costs
|
743
|
24,139
|
||||||
Operating income
|
209,710
|
262,430
|
||||||
Operating margin
|
8.4
|
%
|
9.8
|
%
|
||||
Other income (expense):
|
||||||||
Interest expense
|
(31,555
|
)
|
(33,683
|
)
|
||||
Other
|
(11,754
|
)
|
(419
|
)
|
||||
Loss on early extinguishment of debt
|
(8,073
|
)
|
(2,030
|
)
|
||||
Total other income (expense) - net
|
(51,382
|
)
|
(36,132
|
)
|
||||
Income before taxes
|
158,328
|
226,298
|
||||||
Income tax expense
|
34,545
|
61,508
|
||||||
Net earnings
|
123,783
|
164,790
|
||||||
Less: net earnings attributable to noncontrolling interests
|
860
|
854
|
||||||
Net earnings attributable to Vishay stockholders
|
$
|
122,923
|
$
|
163,936
|
||||
Basic earnings per share attributable to Vishay stockholders
|
$
|
0.85
|
$
|
1.13
|
||||
Diluted earnings per share attributable to Vishay stockholders
|
$
|
0.85
|
$
|
1.13
|
||||
Weighted average shares outstanding - basic
|
144,836
|
144,608
|
||||||
Weighted average shares outstanding - diluted
|
145,228
|
145,136
|
||||||
Cash dividends per share
|
$
|
0.38
|
$
|
0.37
|
||||
* 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, 2020
|
October 3, 2020
|
December 31, 2019
|
||||||||||
Net revenues
|
$
|
667,180
|
$
|
640,160
|
$
|
609,577
|
||||||
Costs of products sold*
|
514,896
|
488,451
|
474,216
|
|||||||||
Gross profit
|
152,284
|
151,709
|
135,361
|
|||||||||
Gross margin
|
22.8
|
%
|
23.7
|
%
|
22.2
|
%
|
||||||
Selling, general, and administrative expenses**
|
92,272
|
90,219
|
94,299
|
|||||||||
Restructuring and severance costs
|
-
|
-
|
16,884
|
|||||||||
Operating income
|
60,012
|
61,490
|
24,178
|
|||||||||
Operating margin
|
9.0
|
%
|
9.6
|
%
|
4.0
|
%
|
||||||
Other income (expense):
|
||||||||||||
Interest expense
|
(7,159
|
)
|
(7,414
|
)
|
(8,523
|
)
|
||||||
Other
|
(5,570
|
)
|
(4,898
|
)
|
(3,652
|
)
|
||||||
Loss on early extinguishment of debt
|
(553
|
)
|
(3,454
|
)
|
(723
|
)
|
||||||
Total other income (expense) - net
|
(13,282
|
)
|
(15,766
|
)
|
(12,898
|
)
|
||||||
Income before taxes
|
46,730
|
45,724
|
11,280
|
|||||||||
Income tax expense
|
8,887
|
12,063
|
(2,869
|
)
|
||||||||
Net earnings
|
37,843
|
33,661
|
14,149
|
|||||||||
Less: net earnings attributable to noncontrolling interests
|
276
|
177
|
187
|
|||||||||
Net earnings attributable to Vishay stockholders
|
$
|
37,567
|
$
|
33,484
|
$
|
13,962
|
||||||
Basic earnings per share attributable to Vishay stockholders
|
$
|
0.26
|
$
|
0.23
|
$
|
0.10
|
||||||
Diluted earnings per share attributable to Vishay stockholders
|
$
|
0.26
|
$
|
0.23
|
$
|
0.10
|
||||||
Weighted average shares outstanding - basic
|
144,855
|
144,854
|
144,628
|
|||||||||
Weighted average shares outstanding - diluted
|
145,251
|
145,197
|
145,202
|
|||||||||
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 $242 for
the fiscal quarters ended December 31, 2020 and October 3, 2020, respectively.
|
||||||||||||
** Includes incremental selling, general, and administrative expenses (benefits) separable from normal operations directly attributable to the
COVID-19 pandemic of $(580) and $(441), for the fiscal quarters ended December 31, 2020 and October 3, 2020, respectively.
|
VISHAY INTERTECHNOLOGY, INC.
|
||||||||
Consolidated Condensed Balance Sheets
|
||||||||
(In thousands)
|
||||||||
December 31, 2020
|
December 31, 2019
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
619,874
|
$
|
694,133
|
||||
Short-term investments
|
158,476
|
108,822
|
||||||
Accounts receivable, net
|
338,632
|
328,187
|
||||||
Inventories:
|
||||||||
Finished goods
|
120,792
|
122,466
|
||||||
Work in process
|
201,259
|
187,354
|
||||||
Raw materials
|
126,200
|
121,860
|
||||||
Total inventories
|
448,251
|
431,680
|
||||||
Prepaid expenses and other current assets
|
132,103
|
141,294
|
||||||
Total current assets
|
1,697,336
|
1,704,116
|
||||||
Property and equipment, at cost:
|
||||||||
Land
|
76,231
|
75,011
|
||||||
Buildings and improvements
|
641,041
|
585,064
|
||||||
Machinery and equipment
|
2,732,771
|
2,606,355
|
||||||
Construction in progress
|
86,520
|
110,722
|
||||||
Allowance for depreciation
|
(2,593,398
|
)
|
(2,425,627
|
)
|
||||
943,165
|
951,525
|
|||||||
Right of use assets
|
102,440
|
93,162
|
||||||
Goodwill
|
158,183
|
150,642
|
||||||
Other intangible assets, net
|
66,795
|
60,659
|
||||||
Other assets
|
186,554
|
160,671
|
||||||
Total assets
|
$
|
3,154,473
|
$
|
3,120,775
|
VISHAY INTERTECHNOLOGY, INC.
|
||||||||
Consolidated Condensed Balance Sheets (continued)
|
||||||||
(In thousands)
|
||||||||
December 31, 2020
|
December 31, 2019
|
|||||||
(Unaudited)
|
||||||||
Liabilities and equity
|
||||||||
Current liabilities:
|
||||||||
Notes payable to banks
|
$
|
-
|
$
|
2
|
||||
Trade accounts payable
|
196,203
|
173,915
|
||||||
Payroll and related expenses
|
141,034
|
122,100
|
||||||
Lease liabilities
|
22,074
|
20,217
|
||||||
Other accrued expenses
|
182,642
|
186,463
|
||||||
Income taxes
|
20,470
|
17,731
|
||||||
Total current liabilities
|
562,423
|
520,428
|
||||||
Long-term debt less current portion
|
394,886
|
499,147
|
||||||
U.S. transition tax payable
|
125,438
|
140,196
|
||||||
Deferred income taxes
|
1,852
|
22,021
|
||||||
Long-term lease liabilities
|
86,220
|
78,511
|
||||||
Other liabilities
|
104,356
|
100,207
|
||||||
Accrued pension and other postretirement costs
|
300,113
|
272,402
|
||||||
Total liabilities
|
1,575,288
|
1,632,912
|
||||||
Redeemable convertible debentures
|
170
|
174
|
||||||
Equity:
|
||||||||
Vishay stockholders' equity
|
||||||||
Common stock
|
13,256
|
13,235
|
||||||
Class B convertible common stock
|
1,210
|
1,210
|
||||||
Capital in excess of par value
|
1,409,200
|
1,425,170
|
||||||
Retained earnings
|
138,990
|
72,180
|
||||||
Accumulated other comprehensive income (loss)
|
13,559
|
(26,646
|
)
|
|||||
Total Vishay stockholders' equity
|
1,576,215
|
1,485,149
|
||||||
Noncontrolling interests
|
2,800
|
2,540
|
||||||
Total equity
|
1,579,015
|
1,487,689
|
||||||
Total liabilities, temporary equity, and equity
|
$
|
3,154,473
|
$
|
3,120,775
|
VISHAY INTERTECHNOLOGY, INC.
|
||||||||
Consolidated Condensed Statements of Cash Flows
|
||||||||
(In thousands)
|
||||||||
Years ended
|
||||||||
December 31, 2020
|
December 31, 2019
|
|||||||
(Unaudited)
|
||||||||
Operating activities
|
||||||||
Net earnings
|
$
|
123,783
|
$
|
164,790
|
||||
Adjustments to reconcile net earnings to
|
||||||||
net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
166,230
|
164,461
|
||||||
(Gain) loss on disposal of property and equipment
|
157
|
(157
|
)
|
|||||
Accretion of interest on convertible debt instruments
|
13,161
|
14,146
|
||||||
Inventory write-offs for obsolescence
|
22,730
|
26,494
|
||||||
Pensions and other postretirement benefits, net of contributions
|
2,864
|
(552
|
)
|
|||||
Loss on early extinguishment of debt
|
8,073
|
2,030
|
||||||
Deferred income taxes
|
(12,141
|
)
|
(23,009
|
)
|
||||
Other
|
3,304
|
13,341
|
||||||
Change in U.S. transition tax liability
|
(14,757
|
)
|
(14,757
|
)
|
||||
Change in repatriation tax liability
|
(16,258
|
)
|
(38,814
|
)
|
||||
Changes in operating assets and liabilities, net of effects of businesses acquired
|
17,792
|
(11,529
|
)
|
|||||
Net cash provided by operating activities
|
314,938
|
296,444
|
||||||
Investing activities
|
||||||||
Purchase of property and equipment
|
(123,599
|
)
|
(156,641
|
)
|
||||
Proceeds from sale of property and equipment
|
403
|
577
|
||||||
Purchase of businesses, net of cash acquired
|
(25,852
|
)
|
(11,862
|
)
|
||||
Purchase of short-term investments
|
(293,087
|
)
|
(111,631
|
)
|
||||
Maturity of short-term investments
|
250,580
|
81,012
|
||||||
Other investing activities
|
(529
|
)
|
3,587
|
|||||
Net cash used in investing activities
|
(192,084
|
)
|
(194,958
|
)
|
||||
Financing activities
|
||||||||
Issuance costs
|
-
|
(5,394
|
)
|
|||||
Repurchase of convertible debt instruments
|
(151,683
|
)
|
(27,863
|
)
|
||||
Net changes in short-term borrowings
|
(114
|
)
|
(16
|
)
|
||||
Dividends paid to common stockholders
|
(50,372
|
)
|
(48,968
|
)
|
||||
Dividends paid to Class B common stockholders
|
(4,597
|
)
|
(4,476
|
)
|
||||
Distributions to noncontrolling interests
|
(600
|
)
|
(600
|
)
|
||||
Cash withholding taxes paid when shares withheld for vested equity awards
|
(2,016
|
)
|
(2,708
|
)
|
||||
Net cash used in financing activities
|
(209,382
|
)
|
(90,025
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
12,269
|
(3,360
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
(74,259
|
)
|
8,101
|
|||||
Cash and cash equivalents at beginning of period
|
694,133
|
686,032
|
||||||
Cash and cash equivalents at end of period
|
$
|
619,874
|
$
|
694,133
|
VISHAY INTERTECHNOLOGY, INC.
|
||||||||||||||||||||
Reconciliation of Adjusted Earnings Per Share
|
||||||||||||||||||||
(Unaudited - In thousands, except per share amounts)
|
||||||||||||||||||||
Fiscal quarters ended
|
Years ended
|
|||||||||||||||||||
December 31, 2020
|
October 3, 2020
|
December 31, 2019
|
December 31, 2020
|
December 31, 2019
|
||||||||||||||||
GAAP net earnings attributable to Vishay stockholders
|
$
|
37,567
|
$
|
33,484
|
$
|
13,962
|
$
|
122,923
|
$
|
163,936
|
||||||||||
Reconciling items affecting gross profit:
|
||||||||||||||||||||
Impact of the COVID-19 pandemic
|
$
|
268
|
$
|
242
|
$
|
-
|
$
|
4,563
|
$
|
-
|
||||||||||
Other reconciling items affecting operating income:
|
||||||||||||||||||||
Restructuring and severance costs
|
$
|
-
|
$
|
-
|
$
|
16,884
|
$
|
743
|
$
|
24,139
|
||||||||||
Impact of the COVID-19 pandemic
|
(580
|
)
|
(441
|
)
|
-
|
(1,451
|
)
|
-
|
||||||||||||
Reconciling items affecting other income (expense):
|
||||||||||||||||||||
Loss on early extinguishment of debt
|
$
|
553
|
$
|
3,454
|
$
|
723
|
$
|
8,073
|
$
|
2,030
|
||||||||||
Reconciling items affecting tax expense (benefit):
|
||||||||||||||||||||
Change in deferred taxes due to early extinguishment of debt
|
$
|
(217
|
)
|
$
|
-
|
$
|
(289
|
)
|
$
|
(1,563
|
)
|
$
|
(1,601
|
)
|
||||||
Effects of cash repatriation program
|
-
|
-
|
(11,554
|
)
|
(190
|
)
|
(9,583
|
)
|
||||||||||||
Effects of changes in uncertain tax positions
|
3,751
|
-
|
2,831
|
3,751
|
2,831
|
|||||||||||||||
Effects of tax-basis foreign exchange gain
|
-
|
-
|
-
|
-
|
7,554
|
|||||||||||||||
Tax effects of pre-tax items above
|
(12
|
)
|
(716
|
)
|
(4,277
|
)
|
(2,799
|
)
|
(6,211
|
)
|
||||||||||
Adjusted net earnings
|
$
|
41,330
|
$
|
36,023
|
$
|
18,280
|
$
|
134,050
|
$
|
183,095
|
||||||||||
Adjusted weighted average diluted shares outstanding
|
145,251
|
145,197
|
145,202
|
145,228
|
145,136
|
|||||||||||||||
Adjusted earnings per diluted share
|
$
|
0.28
|
$
|
0.25
|
$
|
0.13
|
$
|
0.92
|
$
|
1.26
|
VISHAY INTERTECHNOLOGY, INC.
|
||||||||||||||||||||
Reconciliation of Free Cash
|
||||||||||||||||||||
(Unaudited - In thousands)
|
||||||||||||||||||||
Fiscal quarters ended
|
Years ended
|
|||||||||||||||||||
December 31, 2020
|
October 3, 2020
|
December 31, 2019
|
December 31, 2020
|
December 31, 2019
|
||||||||||||||||
Net cash provided by operating activities
|
$
|
125,699
|
$
|
64,330
|
$ |
84,423
|
$
|
314,938
|
$
|
296,444
|
||||||||||
Proceeds from sale of property and equipment
|
110
|
63
|
91
|
403
|
577
|
|||||||||||||||
Less: Capital expenditures
|
(52,798
|
)
|
(21,969
|
)
|
(56,374
|
)
|
(123,599
|
)
|
(156,641
|
)
|
||||||||||
Free cash
|
$
|
73,011
|
$
|
42,424
|
$
|
28,140
|
$
|
191,742
|
$
|
140,380
|
VISHAY INTERTECHNOLOGY, INC.
|
||||||||||||||||||||
Reconciliation of EBITDA and Adjusted EBITDA
|
||||||||||||||||||||
(Unaudited - In thousands)
|
||||||||||||||||||||
Fiscal quarters ended
|
Years ended
|
|||||||||||||||||||
December 31, 2020
|
October 3, 2020
|
December 31, 2019
|
December 31, 2020
|
December 31, 2019
|
||||||||||||||||
GAAP net earnings attributable to Vishay stockholders
|
$
|
37,567
|
$
|
33,484
|
$
|
13,962
|
$
|
122,923
|
$
|
163,936
|
||||||||||
Net earnings attributable to noncontrolling interests
|
276
|
177
|
187
|
860
|
854
|
|||||||||||||||
Net earnings
|
$
|
37,843
|
$
|
33,661
|
$
|
14,149
|
$
|
123,783
|
$
|
164,790
|
||||||||||
Interest expense
|
$
|
7,159
|
$
|
7,414
|
$
|
8,523
|
$
|
31,555
|
$
|
33,683
|
||||||||||
Interest income
|
(385
|
)
|
(514
|
)
|
(1,734
|
)
|
(3,709
|
)
|
(8,445
|
)
|
||||||||||
Income taxes
|
8,887
|
12,063
|
(2,869
|
)
|
34,545
|
61,508
|
||||||||||||||
Depreciation and amortization
|
42,454
|
41,618
|
42,159
|
166,230
|
164,461
|
|||||||||||||||
EBITDA
|
$
|
95,958
|
$
|
94,242
|
$
|
60,228
|
$
|
352,404
|
$
|
415,997
|
||||||||||
Reconciling items
|
||||||||||||||||||||
Impact of the COVID-19 pandemic
|
$
|
(312
|
)
|
$
|
(199
|
)
|
$
|
-
|
$
|
3,112
|
$
|
-
|
||||||||
Restructuring and severance costs
|
-
|
-
|
16,884
|
743
|
24,139
|
|||||||||||||||
Loss on early extinguishment of debt
|
553
|
3,454
|
723
|
8,073
|
2,030
|
|||||||||||||||
Adjusted EBITDA
|
$
|
96,199
|
$
|
97,497
|
$
|
77,835
|
$
|
364,332
|
$
|
442,166
|
||||||||||
Adjusted EBITDA margin**
|
14.4
|
%
|
15.2
|
%
|
12.8
|
%
|
14.6
|
%
|
16.6
|
%
|
||||||||||
** Adjusted EBITDA as a percentage of net revenues
|