◾
|
Revenues Q3 of $640 million
|
◾
|
Gross margin Q3 of 23.7%; adjusted gross margin 23.7%
|
◾
|
Operating margin Q3 of 9.6%; adjusted operating margin 9.6%
|
◾
|
EPS Q3 of $0.23; adjusted EPS $0.25
|
◾
|
Free Cash for the trailing 12 months Q3 of $147 million
|
◾
|
Repurchased in Q3 $58.9 million principal amount of convertible notes due 2025;
YTD repurchased $134.7 million principal amount for approximately 95% of face value |
◾
|
Acquired the worldwide business and substantially all of the U.S. assets of Applied Thin-Film Products, a California-based manufacturer of custom,
build-to-print thin film substrates for $25.9 million
|
◾
|
Guidance Q4 of revenues $620 to $660 million and gross margins of 23.9% plus/minus 70 basis points at a EUR/USD exchange rate of 0.86
|
VISHAY INTERTECHNOLOGY, INC.
|
||||||||||||
Summary of Operations
|
||||||||||||
(Unaudited - In thousands, except per share amounts)
|
||||||||||||
Fiscal quarters ended
|
||||||||||||
October 3, 2020
|
July 4, 2020
|
September 28, 2019
|
||||||||||
Net revenues
|
$
|
640,160
|
$
|
581,717
|
$
|
628,329
|
||||||
Costs of products sold*
|
488,451
|
451,047
|
478,250
|
|||||||||
Gross profit
|
151,709
|
130,670
|
150,079
|
|||||||||
Gross margin
|
23.7
|
%
|
22.5
|
%
|
23.9
|
%
|
||||||
Selling, general, and administrative expenses**
|
90,219
|
89,127
|
91,796
|
|||||||||
Restructuring and severance costs
|
-
|
743
|
7,255
|
|||||||||
Operating income
|
61,490
|
40,800
|
51,028
|
|||||||||
Operating margin
|
9.6
|
%
|
7.0
|
%
|
8.1
|
%
|
||||||
Other income (expense):
|
||||||||||||
Interest expense
|
(7,414
|
)
|
(8,430
|
)
|
(8,564
|
)
|
||||||
Other
|
(4,898
|
)
|
(1,484
|
)
|
1,718
|
|||||||
Loss on early extinguishment of debt
|
(3,454
|
)
|
(1,146
|
)
|
-
|
|||||||
Total other income (expense) - net
|
(15,766
|
)
|
(11,060
|
)
|
(6,846
|
)
|
||||||
Income before taxes
|
45,724
|
29,740
|
44,182
|
|||||||||
Income tax expense
|
12,063
|
4,845
|
13,917
|
|||||||||
Net earnings
|
33,661
|
24,895
|
30,265
|
|||||||||
Less: net earnings attributable to noncontrolling interests
|
177
|
242
|
227
|
|||||||||
Net earnings attributable to Vishay stockholders
|
$
|
33,484
|
$
|
24,653
|
$
|
30,038
|
||||||
Basic earnings per share attributable to Vishay stockholders
|
$
|
0.23
|
$
|
0.17
|
$
|
0.21
|
||||||
Diluted earnings per share attributable to Vishay stockholders
|
$
|
0.23
|
$
|
0.17
|
$
|
0.21
|
||||||
Weighted average shares outstanding - basic
|
144,854
|
144,846
|
144,628
|
|||||||||
Weighted average shares outstanding - diluted
|
145,197
|
145,170
|
145,027
|
|||||||||
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 outbreak of $242 and $923 for the
fiscal quarters ended October 3, 2020 and July 4, 2020, respectively.
|
||||||||||||
** Includes incremental selling, general, and administrative expenses (benefits) separable from normal operations directly attributable to the
COVID-19 outbreak of $(441) and $(747), for the fiscal quarters ended October 3, 2020 and July 4, 2020, respectively.
|
VISHAY INTERTECHNOLOGY, INC.
|
||||||||
Summary of Operations
|
||||||||
(Unaudited - In thousands, except per share amounts)
|
||||||||
Nine fiscal months ended
|
||||||||
October 3, 2020
|
September 28, 2019
|
|||||||
Net revenues
|
$
|
1,834,718
|
$
|
2,058,728
|
||||
Costs of products sold*
|
1,405,099
|
1,522,889
|
||||||
Gross profit
|
429,619
|
535,839
|
||||||
Gross margin
|
23.4
|
%
|
26.0
|
%
|
||||
Selling, general, and administrative expenses*
|
279,178
|
290,332
|
||||||
Restructuring and severance costs
|
743
|
7,255
|
||||||
Operating income
|
149,698
|
238,252
|
||||||
Operating margin
|
8.2
|
%
|
11.6
|
%
|
||||
Other income (expense):
|
||||||||
Interest expense
|
(24,396
|
)
|
(25,160
|
)
|
||||
Other
|
(6,184
|
)
|
3,233
|
|||||
Loss on early extinguishment of debt
|
(7,520
|
)
|
(1,307
|
)
|
||||
Total other income (expense) - net
|
(38,100
|
)
|
(23,234
|
)
|
||||
Income before taxes
|
111,598
|
215,018
|
||||||
Income tax expense
|
25,658
|
64,377
|
||||||
Net earnings
|
85,940
|
150,641
|
||||||
Less: net earnings attributable to noncontrolling interests
|
584
|
667
|
||||||
Net earnings attributable to Vishay stockholders
|
$
|
85,356
|
$
|
149,974
|
||||
Basic earnings per share attributable to Vishay stockholders
|
$
|
0.59
|
$
|
1.04
|
||||
Diluted earnings per share attributable to Vishay stockholders
|
$
|
0.59
|
$
|
1.03
|
||||
Weighted average shares outstanding - basic
|
144,831
|
144,602
|
||||||
Weighted average shares outstanding - diluted
|
145,221
|
145,114
|
||||||
Cash dividends per share
|
$
|
0.285
|
$
|
0.275
|
||||
* Includes incremental costs of products sold and selling, general, and administrative expenses (benefits) separable from normal operations directly
attributable to the COVID-19 outbreak of $4,295 and $(871), respectively.
|
VISHAY INTERTECHNOLOGY, INC.
|
||||||||
Consolidated Condensed Balance Sheets
|
||||||||
(In thousands)
|
||||||||
October 3, 2020
|
December 31, 2019
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
682,422
|
$
|
694,133
|
||||
Short-term investments
|
29,538
|
108,822
|
||||||
Accounts receivable, net
|
342,691
|
328,187
|
||||||
Inventories:
|
||||||||
Finished goods
|
119,221
|
122,466
|
||||||
Work in process
|
197,806
|
187,354
|
||||||
Raw materials
|
123,176
|
121,860
|
||||||
Total inventories
|
440,203
|
431,680
|
||||||
Prepaid expenses and other current assets
|
120,490
|
141,294
|
||||||
Total current assets
|
1,615,344
|
1,704,116
|
||||||
Property and equipment, at cost:
|
||||||||
Land
|
75,335
|
75,011
|
||||||
Buildings and improvements
|
619,228
|
585,064
|
||||||
Machinery and equipment
|
2,678,629
|
2,606,355
|
||||||
Construction in progress
|
78,059
|
110,722
|
||||||
Allowance for depreciation
|
(2,534,027
|
)
|
(2,425,627
|
)
|
||||
917,224
|
951,525
|
|||||||
Right of use assets
|
103,235
|
93,162
|
||||||
Goodwill
|
157,406
|
150,642
|
||||||
Other intangible assets, net
|
67,839
|
60,659
|
||||||
Other assets
|
172,785
|
160,671
|
||||||
Total assets
|
$
|
3,033,833
|
$
|
3,120,775
|
VISHAY INTERTECHNOLOGY, INC.
|
||||||||
Consolidated Condensed Balance Sheets (continued)
|
||||||||
(In thousands)
|
||||||||
October 3, 2020
|
December 31, 2019
|
|||||||
(Unaudited)
|
||||||||
Liabilities and equity
|
||||||||
Current liabilities:
|
||||||||
Notes payable to banks
|
$
|
4
|
$
|
2
|
||||
Trade accounts payable
|
159,016
|
173,915
|
||||||
Payroll and related expenses
|
130,252
|
122,100
|
||||||
Lease liabilities
|
21,924
|
20,217
|
||||||
Other accrued expenses
|
169,379
|
186,463
|
||||||
Income taxes
|
22,699
|
17,731
|
||||||
Total current liabilities
|
503,274
|
520,428
|
||||||
Long-term debt less current portion
|
392,290
|
499,147
|
||||||
U.S. transition tax payable
|
125,438
|
140,196
|
||||||
Deferred income taxes
|
8,670
|
22,021
|
||||||
Long-term lease liabilities
|
86,043
|
78,511
|
||||||
Other liabilities
|
101,191
|
100,207
|
||||||
Accrued pension and other postretirement costs
|
277,758
|
272,402
|
||||||
Total liabilities
|
1,494,664
|
1,632,912
|
||||||
Redeemable convertible debentures
|
-
|
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
|
1,410,335
|
1,425,170
|
||||||
Retained earnings
|
115,184
|
72,180
|
||||||
Accumulated other comprehensive income (loss)
|
(3,340
|
)
|
(26,646
|
)
|
||||
Total Vishay stockholders' equity
|
1,536,645
|
1,485,149
|
||||||
Noncontrolling interests
|
2,524
|
2,540
|
||||||
Total equity
|
1,539,169
|
1,487,689
|
||||||
Total liabilities, temporary equity, and equity
|
$
|
3,033,833
|
$
|
3,120,775
|
VISHAY INTERTECHNOLOGY, INC.
|
||||||||
Consolidated Condensed Statements of Cash Flows
|
||||||||
(Unaudited - In thousands)
|
||||||||
Nine fiscal months ended
|
||||||||
October 3, 2020
|
September 28, 2019
|
|||||||
Operating activities
|
||||||||
Net earnings
|
$
|
85,940
|
$
|
150,641
|
||||
Adjustments to reconcile net earnings to
|
||||||||
net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
123,776
|
122,302
|
||||||
(Gain) loss on disposal of property and equipment
|
257
|
(168
|
)
|
|||||
Accretion of interest on convertible debt instruments
|
10,232
|
10,558
|
||||||
Inventory write-offs for obsolescence
|
17,891
|
19,214
|
||||||
Loss on early extinguishment of debt
|
7,520
|
1,307
|
||||||
Deferred income taxes
|
(1,142
|
)
|
(4,481
|
)
|
||||
Other
|
3,188
|
9,029
|
||||||
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
|
(27,408
|
)
|
(42,810
|
)
|
||||
Net cash provided by operating activities
|
189,239
|
212,021
|
||||||
Investing activities
|
||||||||
Purchase of property and equipment
|
(70,801
|
)
|
(100,267
|
)
|
||||
Proceeds from sale of property and equipment
|
293
|
486
|
||||||
Purchase of businesses, net of cash acquired
|
(25,852
|
)
|
(11,862
|
)
|
||||
Purchase of short-term investments
|
(157,177
|
)
|
(59,440
|
)
|
||||
Maturity of short-term investments
|
241,016
|
79,765
|
||||||
Other investing activities
|
(529
|
)
|
4,021
|
|||||
Net cash used in investing activities
|
(13,050
|
)
|
(87,297
|
)
|
||||
Financing activities
|
||||||||
Issuance costs
|
-
|
(5,394
|
)
|
|||||
Repurchase of convertible debt instruments
|
(148,177
|
)
|
(22,695
|
)
|
||||
Net changes in short-term borrowings
|
(110
|
)
|
(12
|
)
|
||||
Dividends paid to common stockholders
|
(37,779
|
)
|
(36,396
|
)
|
||||
Dividends paid to Class B common stockholders
|
(3,448
|
)
|
(3,327
|
)
|
||||
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
|
(192,130
|
)
|
(71,132
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
4,230
|
(8,141
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
(11,711
|
)
|
45,451
|
|||||
Cash and cash equivalents at beginning of period
|
694,133
|
686,032
|
||||||
Cash and cash equivalents at end of period
|
$
|
682,422
|
$
|
731,483
|
VISHAY INTERTECHNOLOGY, INC.
|
||||||||||||||||||||
Reconciliation of Adjusted Earnings Per Share
|
||||||||||||||||||||
(Unaudited - In thousands, except per share amounts)
|
||||||||||||||||||||
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||||||
October 3, 2020
|
July 4, 2020
|
September 28, 2019
|
October 3, 2020
|
September 28, 2019
|
||||||||||||||||
GAAP net earnings attributable to Vishay stockholders
|
$
|
33,484
|
$
|
24,653
|
$
|
30,038
|
$
|
85,356
|
$
|
149,974
|
||||||||||
Reconciling items affecting gross profit:
|
||||||||||||||||||||
Impact of the COVID-19 outbreak
|
$
|
242
|
$
|
923
|
$
|
-
|
$ |
4,295
|
$
|
-
|
||||||||||
Other reconciling items affecting operating income:
|
||||||||||||||||||||
Restructuring and severance costs
|
$
|
-
|
$
|
743
|
$
|
7,255
|
$
|
743
|
$
|
7,255
|
||||||||||
Impact of the COVID-19 outbreak
|
(441
|
)
|
(747
|
)
|
-
|
(871
|
)
|
-
|
||||||||||||
Reconciling items affecting other income (expense):
|
||||||||||||||||||||
Loss on early extinguishment of debt
|
$
|
3,454
|
$
|
1,146
|
$
|
-
|
$
|
7,520
|
$
|
1,307
|
||||||||||
Reconciling items affecting tax expense (benefit):
|
||||||||||||||||||||
Change in deferred taxes due to early extinguishment of debt
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(1,346
|
)
|
$
|
(1,312
|
)
|
||||||||
Effects of tax-basis foreign exchange gain
|
-
|
-
|
-
|
-
|
7,554
|
|||||||||||||||
Effects of cash repatriation program
|
-
|
(190
|
)
|
2,604
|
(190
|
)
|
1,971
|
|||||||||||||
Tax effects of pre-tax items above
|
(716
|
)
|
(589
|
)
|
(1,644
|
)
|
(2,787
|
)
|
(1,934
|
)
|
||||||||||
Adjusted net earnings
|
$
|
36,023
|
$
|
25,939
|
$
|
38,253
|
$
|
92,720
|
$
|
164,815
|
||||||||||
Adjusted weighted average diluted shares outstanding
|
145,197
|
145,170
|
145,027
|
145,221
|
145,114
|
|||||||||||||||
Adjusted earnings per diluted share
|
$
|
0.25
|
$
|
0.18
|
$
|
0.26
|
$
|
0.64
|
$
|
1.14
|
VISHAY INTERTECHNOLOGY, INC.
|
||||||||||||||||||||
Reconciliation of Free Cash
|
||||||||||||||||||||
(Unaudited - In thousands)
|
||||||||||||||||||||
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||||||
October 3, 2020
|
July 4, 2020
|
September 28, 2019
|
October 3, 2020
|
September 28, 2019
|
||||||||||||||||
Net cash provided by operating activities
|
$
|
64,330
|
$
|
90,431
|
76,202
|
$
|
189,239
|
$
|
212,021
|
|||||||||||
Proceeds from sale of property and equipment
|
63
|
177
|
22
|
293
|
486
|
|||||||||||||||
Less: Capital expenditures
|
(21,969
|
)
|
(24,504
|
)
|
(30,119
|
)
|
(70,801
|
)
|
(100,267
|
)
|
||||||||||
Free cash
|
$
|
42,424
|
$
|
66,104
|
$
|
46,105
|
$
|
118,731
|
$
|
112,240
|
VISHAY INTERTECHNOLOGY, INC.
|
||||||||||||||||||||
Reconciliation of EBITDA and Adjusted EBITDA
|
||||||||||||||||||||
(Unaudited - In thousands)
|
||||||||||||||||||||
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||||||
October 3, 2020
|
July 4, 2020
|
September 28, 2019
|
October 3, 2020
|
September 28, 2019
|
||||||||||||||||
GAAP net earnings attributable to Vishay stockholders
|
$
|
33,484
|
$
|
24,653
|
$
|
30,038
|
$
|
85,356
|
$
|
149,974
|
||||||||||
Net earnings attributable to noncontrolling interests
|
177
|
242
|
227
|
584
|
667
|
|||||||||||||||
Net earnings
|
$
|
33,661
|
$
|
24,895
|
$
|
30,265
|
$
|
85,940
|
$
|
150,641
|
||||||||||
Interest expense
|
$
|
7,414
|
$
|
8,430
|
$
|
8,564
|
$
|
24,396
|
$
|
25,160
|
||||||||||
Interest income
|
(514
|
)
|
(956
|
)
|
(2,365
|
)
|
(3,324
|
)
|
(6,711
|
)
|
||||||||||
Income taxes
|
12,063
|
4,845
|
13,917
|
25,658
|
64,377
|
|||||||||||||||
Depreciation and amortization
|
41,618
|
40,638
|
40,956
|
123,776
|
122,302
|
|||||||||||||||
EBITDA
|
$
|
94,242
|
$
|
77,852
|
$
|
91,337
|
$
|
256,446
|
$
|
355,769
|
||||||||||
Reconciling items
|
||||||||||||||||||||
Impact of the COVID-19 outbreak
|
$
|
(199
|
)
|
$
|
176
|
$
|
-
|
$
|
3,424
|
$
|
-
|
|||||||||
Restructuring and severance costs
|
-
|
743
|
7,255
|
743
|
7,255
|
|||||||||||||||
Loss on early extinguishment of debt
|
3,454
|
1,146
|
-
|
7,520
|
1,307
|
|||||||||||||||
Adjusted EBITDA
|
$
|
97,497
|
$
|
79,917
|
$
|
98,592
|
$
|
268,133
|
$
|
364,331
|
||||||||||
Adjusted EBITDA margin**
|
15.2
|
%
|
13.7
|
%
|
15.7
|
%
|
14.6
|
%
|
17.7
|
%
|
||||||||||
** Adjusted EBITDA as a percentage of net revenues
|