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Published: 2021-05-04 00:00:00 ET
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EX-99.1 2 exhibit99-1.htm EXHIBIT 99.1
Exhibit 99.1

VISHAY REPORTS RESULTS FOR FIRST QUARTER 2021




•
Revenues Q1 of $765 million
•
Gross margin Q1 of 26.5%
•
Operating margin Q1 of 12.7%
•
EPS Q1 of $0.49; adjusted EPS $0.46
•
Free Cash for the trailing 12 months Q1 of $211 million
•
Guidance Q2 for revenues of $790 to $830 million at a gross margin of 27.3% plus/minus 60 basis points at Q1 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 fiscal quarter ended April 3, 2021.

Revenues for the fiscal quarter ended April 3, 2021 were $764.6 million, compared to $667.2 million for the fiscal quarter ended December 31, 2020, and $612.8 million for the fiscal quarter ended April 4, 2020.  Net earnings attributable to Vishay stockholders for the fiscal quarter ended April 3, 2021 were $71.4 million, or $0.49 per diluted share, compared to $37.6 million, or $0.26 per diluted share, for the fiscal quarter ended December 31, 2020, and $27.2 million, or $0.19 per diluted share, for the fiscal quarter ended April 4, 2020.

As summarized on the attached reconciliation schedule, all periods presented include items affecting comparability.  Adjusted earnings per diluted share, which exclude certain items net of tax and unusual tax items, were $0.46, $0.28, and $0.21 for the fiscal quarters ended April 3, 2021, December 31, 2020, and April 4, 2020, respectively.

Commenting on results for the first quarter 2021, Dr. Gerald Paul, President and Chief Executive Officer stated, “In the first quarter of 2021, the steep upturn of our business that began in October of last year accelerated even further. Quarterly orders and backlog reached all-time highs. Sales in the first quarter of Vishay’s products from distribution to end customers increased 21% over the fourth quarter of last year and inventories of our products at distribution were reduced by $34 million. Virtually all markets are in excellent shape and supply chains have become rather depleted.”

Dr. Paul continued, “Over the next few years, we expect to experience higher growth rates than over the last decade. This expectation is based upon accelerated electrification, such as factory automation, electrical vehicles, and 5G infrastructure. To be well positioned to service our customers and to fully participate in these growing markets, Vishay intends to increase its capital expenditures for expansion in the mid-term. For the year 2021, we expect to invest approximately $225 million in capital expenditures.”

Commenting on the outlook Dr. Paul stated, “For the second quarter 2021 we guide for revenues in the range of $790 to $830 million at a gross margin of 27.3% plus/minus 60 basis points at the exchange rates of Q1 2021.”

A conference call to discuss Vishay’s first quarter financial results is scheduled for Tuesday, May 4, 2021 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) and the access code is 6669583.

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 12:05 p.m. ET on Tuesday, May 4, 2021 through 11:59 p.m. ET on Wednesday, May 19 The telephone number for the replay is +1 855-859-2056 (+1 404-537-3406, if calling from outside the United States or Canada) and the access code is 6669583.



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 statements with respect to forecasted revenues, margins, inventories, 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; 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
                  
(Unaudited - In thousands, except per share amounts)
                  
                   
   
Fiscal quarters ended
  
   
April 3, 2021
    
December 31, 2020
    
April 4, 2020
  
                   
Net revenues
  
$
764,632
    
$
667,180
    
$
612,841
  
Costs of products sold*
    
561,683
      
514,896
      
465,601
  
Gross profit
    
202,949
      
152,284
      
147,240
  
  Gross margin
    
26.5
%
    
22.8
%
    
24.0
%
                         
Selling, general, and administrative expenses**
    
105,685
      
92,272
      
99,832
  
Operating income
    
97,264
      
60,012
      
47,408
  
  Operating margin
    
12.7
%
    
9.0
%
    
7.7
%
                         
Other income (expense):
                        
  Interest expense
    
(4,376
)
    
(7,159
)
    
(8,552
)
  Loss on early extinguishment of debt
    
-
      
(553
)
    
(2,920
)
  Other
    
(5,731
)
    
(5,570
)
    
198
  
  Total other income (expense) - net
    
(10,107
)
    
(13,282
)
    
(11,274
)
                         
Income before taxes
    
87,157
      
46,730
      
36,134
  
                         
Income tax expense
    
15,514
      
8,887
      
8,750
  
                         
Net earnings
    
71,643
      
37,843
      
27,384
  
                         
Less: net earnings attributable to noncontrolling interests
    
208
      
276
      
165
  
                         
Net earnings attributable to Vishay stockholders
  
$
71,435
    
$
37,567
    
$
27,219
  
                         
Basic earnings per share attributable to Vishay stockholders
  
$
0.49
    
$
0.26
    
$
0.19
  
                         
Diluted earnings per share attributable to Vishay stockholders
  
$
0.49
    
$
0.26
    
$
0.19
  
                         
Weighted average shares outstanding - basic
    
144,968
      
144,855
      
144,792
  
                         
Weighted average shares outstanding - diluted
    
145,463
      
145,251
      
145,295
  
                         
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 $3,130 for the fiscal quarters ended December 31, 2020 and April 4, 2020, respectively.
  
** Includes incremental selling, general, and administrative expenses (benefits) separable from normal operations directly attributable to the COVID-19 pandemic of $(580) and $317, for the fiscal quarters ended December 31, 2020 and April 4, 2020, respectively.
  

VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Balance Sheets
            
(In thousands)
            
             
   
April 3, 2021
    
December 31, 2020
  
   
(Unaudited)
        
Assets
            
Current assets:
            
  Cash and cash equivalents
  
$
643,847
    
$
619,874
  
  Short-term investments
    
137,348
      
158,476
  
  Accounts receivable, net
    
385,238
      
338,632
  
  Inventories:
                
    Finished goods
    
129,310
      
120,792
  
    Work in process
    
212,273
      
201,259
  
    Raw materials
    
132,373
      
126,200
  
  Total inventories
    
473,956
      
448,251
  
                 
  Prepaid expenses and other current assets
    
140,536
      
132,103
  
Total current assets
    
1,780,925
      
1,697,336
  
                 
Property and equipment, at cost:
                
  Land
    
75,339
      
76,231
  
  Buildings and improvements
    
629,550
      
641,041
  
  Machinery and equipment
    
2,705,346
      
2,732,771
  
  Construction in progress
    
94,981
      
86,520
  
  Allowance for depreciation
    
(2,587,948
)
    
(2,593,398
)
     
917,268
      
943,165
  
                 
Right of use assets
    
98,001
      
102,440
  
                 
Goodwill
    
157,693
      
158,183
  
                 
Other intangible assets, net
    
64,123
      
66,795
  
                 
Other assets
    
192,552
      
186,554
  
     Total assets
  
$
3,210,562
    
$
3,154,473
  
VISHAY INTERTECHNOLOGY, INC.
           
Consolidated Condensed Balance Sheets (continued)
            
(In thousands)
            
             
   
April 3, 2021
    
December 31, 2020
  
   
(Unaudited)
        
             
Liabilities and equity
            
Current liabilities:
            
  Trade accounts payable
  
$
206,741
    
$
196,203
  
  Payroll and related expenses
    
136,069
      
141,034
  
  Lease liabilities
    
21,275
      
22,074
  
  Other accrued expenses
    
197,246
      
182,642
  
  Income taxes
    
26,715
      
20,470
  
Total current liabilities
    
588,046
      
562,423
  
                 
Long-term debt less current portion
    
453,213
      
394,886
  
U.S. transition tax payable
    
125,438
      
125,438
  
Deferred income taxes
    
1,856
      
1,852
  
Long-term lease liabilities
    
82,260
      
86,220
  
Other liabilities
    
103,881
      
104,356
  
Accrued pension and other postretirement costs
    
287,407
      
300,113
  
Total liabilities
    
1,642,101
      
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
    
1,345,284
      
1,409,200
  
  Retained earnings
    
217,214
      
138,990
  
  Accumulated other comprehensive income (loss)
    
(11,526
)
    
13,559
  
  Total Vishay stockholders' equity
    
1,565,453
      
1,576,215
  
Noncontrolling interests
    
3,008
      
2,800
  
Total equity
    
1,568,461
      
1,579,015
  
Total liabilities, temporary equity, and equity
  
$
3,210,562
    
$
3,154,473
  
VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Statements of Cash Flows
            
(Unaudited - In thousands)
            
   
Three fiscal months ended
  
   
April 3, 2021
    
April 4, 2020
  
   
(Unaudited)
        
Operating activities
            
Net earnings
  
$
71,643
    
$
27,384
  
Adjustments to reconcile net earnings to
                
    net cash provided by operating activities:
                
      Depreciation and amortization
    
42,146
      
41,520
  
      Gain on disposal of property and equipment
    
(177
)
    
(45
)
      Accretion of interest on convertible debt instruments
    
-
      
3,637
  
      Inventory write-offs for obsolescence
    
4,784
      
5,643
  
      Loss on early extinguishment of debt
    
-
      
2,920
  
      Deferred income taxes
    
901
      
(3,517
)
      Other
    
5,728
      
3,524
  
      Changes in operating assets and liabilities, net of effects of businesses acquired
    
(67,703
)
    
(46,588
)
Net cash provided by operating activities
    
57,322
      
34,478
  
                 
Investing activities
                
Purchase of property and equipment
    
(28,527
)
    
(24,328
)
Proceeds from sale of property and equipment
    
200
      
53
  
Purchase of short-term investments
    
(12,853
)
    
(35,463
)
Maturity of short-term investments
    
29,519
      
-
  
Other investing activities
    
347
      
(1,507
)
Net cash used in investing activities
    
(11,314
)
    
(61,245
)
                 
Financing activities
                
Repurchase of convertible debt instruments
    
(300
)
    
(19,849
)
Net proceeds (payments) on revolving credit lines
    
-
      
54,000
  
Net changes in short-term borrowings
    
-
      
85
  
Dividends paid to common stockholders
    
(12,608
)
    
(12,592
)
Dividends paid to Class B common stockholders
    
(1,149
)
    
(1,149
)
Cash withholding taxes paid when shares withheld for vested equity awards
    
(1,963
)
    
(1,991
)
Net cash provided by (used in) financing activities
    
(16,020
)
    
18,504
  
Effect of exchange rate changes on cash and cash equivalents
    
(6,015
)
    
(5,167
)
                 
Net increase (decrease) in cash and cash equivalents
    
23,973
      
(13,430
)
                 
Cash and cash equivalents at beginning of period
    
619,874
      
694,133
  
Cash and cash equivalents at end of period
  
$
643,847
    
$
680,703
  

VISHAY INTERTECHNOLOGY, INC.
                  
Reconciliation of Adjusted Earnings Per Share
              
(Unaudited - In thousands, except per share amounts)
              
   
Fiscal quarters ended
  
   
April 3, 2021
    
December 31, 2020
    
April 4, 2020
  
                   
GAAP net earnings attributable to Vishay stockholders
  
$
71,435
    
$
37,567
    
$
27,219
  
                         
Reconciling items affecting gross profit:
                        
Impact of the COVID-19 pandemic
  
$
-
    
$
268
    
$
3,130
  
                         
Other reconciling items affecting operating income:
                  
Impact of the COVID-19 pandemic
  
$
-
    
$
(580
)
  
$
317
  
                         
Reconciling items affecting other income (expense):
                  
Loss on early extinguishment of debt
  
$
-
    
$
553
    
$
2,920
  
                         
Reconciling items affecting tax expense (benefit):
                  
Change in tax regulation
  
$
(4,395
)
  
$
-
    
$
-
  
Change in deferred taxes due to early extinguishment of debt
    
-
      
(217
)
    
(1,346
)
Effects of changes in uncertain tax positions
    
-
      
3,751
      
-
  
Tax effects of pre-tax items above
    
-
      
(12
)
    
(1,482
)
                         
Adjusted net earnings
  
$
67,040
    
$
41,330
    
$
30,758
  
                         
Adjusted weighted average diluted shares outstanding
    
145,463
      
145,251
      
145,295
  
                         
Adjusted earnings per diluted share
  
$
0.46
    
$
0.28
    
$
0.21
  
VISHAY INTERTECHNOLOGY, INC.
              
Reconciliation of Free Cash
                  
(Unaudited - In thousands)
                  
   
Fiscal quarters ended
  
   
April 3, 2021
    
December 31, 2020
    
April 4, 2020
  
Net cash provided by operating activities
  
$
57,322
    
$
125,699
    
$
34,478
  
Proceeds from sale of property and equipment
    
200
      
110
      
53
  
Less: Capital expenditures
    
(28,527
)
    
(52,798
)
    
(24,328
)
Free cash
  
$
28,995
    
$
73,011
    
$
10,203
  


VISHAY INTERTECHNOLOGY, INC.
                  
Reconciliation of EBITDA and Adjusted EBITDA
              
(Unaudited - In thousands)
                  
   
Fiscal quarters ended
  
   
April 3, 2021
    
December 31, 2020
    
April 4, 2020
  
                   
GAAP net earnings attributable to Vishay stockholders
  
$
71,435
    
$
37,567
    
$
27,219
  
Net earnings attributable to noncontrolling interests
    
208
      
276
      
165
  
Net earnings
  
$
71,643
    
$
37,843
    
$
27,384
  
                         
Interest expense
  
$
4,376
    
$
7,159
    
$
8,552
  
Interest income
    
(287
)
    
(385
)
    
(1,854
)
Income taxes
    
15,514
      
8,887
      
8,750
  
Depreciation and amortization
    
42,146
      
42,454
      
41,520
  
EBITDA
  
$
133,392
    
$
95,958
    
$
84,352
  
                         
Reconciling items
                        
Impact of the COVID-19 pandemic
  
$
-
    
$
(312
)
  
$
3,447
  
Loss on early extinguishment of debt
    
-
      
553
      
2,920
  
                         
Adjusted EBITDA
  
$
133,392
    
$
96,199
    
$
90,719
  
                         
Adjusted EBITDA margin**
    
17.4
%
    
14.4
%
    
14.8
%
                         
** Adjusted EBITDA as a percentage of net revenues
                  
                                                

Contact:
Vishay Intertechnology, Inc.
Peter Henrici
Senior Vice President, Corporate Communications
+1-610-644-1300