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Published: 2023-05-10 00:00:00 ET
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EX-99.1 2 exhibit99-1.htm EXHIBIT 99.1
Exhibit 99.1


Vishay Intertechnology Reports First Quarter 2023 Results


Malvern, PA, May 10, 2023 – Vishay Intertechnology, Inc., (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive electronic components, today announced results for the fiscal first quarter ended April 1, 2023.

Highlights
•
1Q 2023 revenues of $871.0 million
•
1Q 2023 EPS of $0.79
•
1Q 2023 book-to-bill of 0.84
•
Backlog at quarter end was 7.5 months
•
YTD 2023 total stockholder return of $34.2 million
•
Extension of $750 million revolving credit facility to May 2028

“Driven by sales increases in medical and aerospace/defense along with continued strong demand in automotive, for the first quarter we delivered revenue growth of 2.0% year over year and 1.8% quarter over quarter.  We also increased investments in capacity expansion for our 30 key product lines in support of high growth and high return opportunities that meet our customers’ accelerating demand.  While 2023 is a staging year at Vishay as we prepare to participate fully in the next step up in demand related to connectivity, mobility and sustainability megatrends, we remain committed to spending approximately $385 million in capex and returning at least $100 million to our stockholders,” said Joel Smejkal, president and CEO.

2Q 2023 Outlook
For the second quarter of 2023, management expects revenues in the range of $860 million and $900 million and a gross profit margin in the range of 29.0% +/- 50 basis points.

Conference Call
Management will host a conference call today, May 10, 2023, at 9:00 a.m. ET to discuss first quarter 2023 results.  The dial-in number for the conference call is 877-407-0989 (+1 201-389-0921, if calling from outside the United States) and the access code is 13737582.  Interested parties may also access a real-time webcast through the Investor Relations section of the company’s website at http://ir.vishay.com. A presentation accompanying management’s prepared remarks will be posted approximately 30 minutes before the conference call starts. For interested parties who are unable to join the live call, there will be a replay of the conference call from 12:00 p.m. ET on Wednesday, May 10, 2023, through 11:59 p.m. ET on Wednesday, May 24, 2023. 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 13737582.

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 and margins, capital investment, capacity expansion, stockholder returns, 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 and expressions such as “guide,” “will,” “expect,” “anticipate,” “committed” 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.

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

VISHAY INTERTECHNOLOGY, INC.
                  
Summary of Operations
                  
(Unaudited - In thousands, except per share amounts)
                  
                   
   
Fiscal quarters ended
  
   
April 1, 2023
    
December 31, 2022
    
April 2, 2022
  
                   
Net revenues
  
$
871,046
    
$
855,298
    
$
853,793
  
Costs of products sold
    
592,333
      
606,178
      
594,685
  
Gross profit
    
278,713
      
249,120
      
259,108
  
  Gross margin
    
32.0
%
    
29.1
%
    
30.3
%
                         
Selling, general, and administrative expenses
    
120,145
      
113,812
      
112,855
  
Operating income
    
158,568
      
135,308
      
146,253
  
  Operating margin
    
18.2
%
    
15.8
%
    
17.1
%
                         
Other income (expense):
                        
  Interest expense
    
(5,120
)
    
(4,490
)
    
(4,222
)
  Other
    
3,329
      
(2,618
)
    
(5,751
)
  Total other income (expense) - net
    
(1,791
)
    
(7,108
)
    
(9,973
)
                         
Income before taxes
    
156,777
      
128,200
      
136,280
  
                         
Income tax expense
    
44,588
      
54,999
      
32,330
  
                         
Net earnings
    
112,189
      
73,201
      
103,950
  
                         
Less: net earnings attributable to noncontrolling interests
    
408
      
413
      
377
  
                         
Net earnings attributable to Vishay stockholders
  
$
111,781
    
$
72,788
    
$
103,573
  
                         
Basic earnings per share attributable to Vishay stockholders
  
$
0.79
    
$
0.51
    
$
0.71
  
                         
Diluted earnings per share attributable to Vishay stockholders
  
$
0.79
    
$
0.51
    
$
0.71
  
                         
Weighted average shares outstanding - basic
    
140,636
      
141,643
      
145,053
  
                         
Weighted average shares outstanding - diluted
    
141,251
      
142,247
      
145,553
  
                         
Cash dividends per share
  
$
0.10
    
$
0.10
    
$
0.10
  

VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Balance Sheets
            
(In thousands)
            
             
   
April 1, 2023
    
December 31, 2022
  
   
(Unaudited)
        
Assets
            
Current assets:
            
  Cash and cash equivalents
  
$
847,534
    
$
610,825
  
  Short-term investments
    
186,892
      
305,272
  
  Accounts receivable, net
    
444,021
      
416,178
  
  Inventories:
                
    Finished goods
    
171,404
      
156,234
  
    Work in process
    
282,166
      
261,345
  
    Raw materials
    
203,111
      
201,300
  
  Total inventories
    
656,681
      
618,879
  
                 
  Prepaid expenses and other current assets
    
170,767
      
170,056
  
Total current assets
    
2,305,895
      
2,121,210
  
                 
Property and equipment, at cost:
                
  Land
    
76,269
      
75,907
  
  Buildings and improvements
    
676,678
      
658,829
  
  Machinery and equipment
    
2,910,769
      
2,857,636
  
  Construction in progress
    
234,481
      
243,038
  
  Allowance for depreciation
    
(2,755,509
)
    
(2,704,951
)
     
1,142,688
      
1,130,459
  
                 
Right of use assets
    
130,306
      
131,193
  
Deferred income taxes
    
106,197
      
104,667
  
Goodwill
    
201,657
      
201,432
  
Other intangible assets, net
    
75,965
      
77,896
  
Other assets
    
99,960
      
98,796
  
     Total assets
  
$
4,062,668
    
$
3,865,653
  


VISHAY INTERTECHNOLOGY, INC.
           
Consolidated Condensed Balance Sheets (continued)
            
(In thousands)
            
             
   
April 1, 2023
    
December 31, 2022
  
   
(Unaudited)
        
             
Liabilities and equity
            
Current liabilities:
            
  Trade accounts payable
  
$
219,802
    
$
189,099
  
  Payroll and related expenses
    
159,708
      
166,079
  
  Lease liabilities
    
25,908
      
25,319
  
  Other accrued expenses
    
246,529
      
261,606
  
  Income taxes
    
97,307
      
84,155
  
Total current liabilities
    
749,254
      
726,258
  
                 
Long-term debt less current portion
    
566,755
      
500,937
  
U.S. transition tax payable
    
83,010
      
83,010
  
Deferred income taxes
    
125,289
      
117,183
  
Long-term lease liabilities
    
107,221
      
108,493
  
Other liabilities
    
94,216
      
92,530
  
Accrued pension and other postretirement costs
    
189,606
      
187,092
  
Total liabilities
    
1,915,351
      
1,815,503
  
                 
Equity:
                
Vishay stockholders' equity
                
  Common stock
    
13,316
      
13,291
  
  Class B convertible common stock
    
1,210
      
1,210
  
  Capital in excess of par value
    
1,351,622
      
1,352,321
  
  Retained earnings
    
870,975
      
773,228
  
  Treasury stock (at cost)
    
(103,145
)
    
(82,972
)
  Accumulated other comprehensive income (loss)
    
9,032
      
(10,827
)
  Total Vishay stockholders' equity
    
2,143,010
      
2,046,251
  
Noncontrolling interests
    
4,307
      
3,899
  
Total equity
    
2,147,317
      
2,050,150
  
Total liabilities and equity
  
$
4,062,668
    
$
3,865,653
  


VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Statements of Cash Flows
            
(Unaudited - In thousands)
            
   
Three fiscal months ended
  
   
April 1, 2023
    
April 2, 2022
  
             
Operating activities
            
Net earnings
  
$
112,189
    
$
103,950
  
Adjustments to reconcile net earnings to net cash provided by operating activities:
          
      Depreciation and amortization
    
43,301
      
40,650
  
      (Gain) loss on disposal of property and equipment
    
(64
)
    
(59
)
      Inventory write-offs for obsolescence
    
8,986
      
5,825
  
      Deferred income taxes
    
7,329
      
2,347
  
      Other
    
269
      
8,816
  
      Changes in operating assets and liabilities
    
(42,117
)
    
(127,944
)
Net cash provided by operating activities
    
129,893
      
33,585
  
                 
Investing activities
                
Purchase of property and equipment
    
(45,574
)
    
(35,909
)
Proceeds from sale of property and equipment
    
326
      
72
  
Purchase of short-term investments
    
(41
)
    
(7,753
)
Maturity of short-term investments
    
121,768
      
56,674
  
Other investing activities
    
(892
)
    
(199
)
Net cash provided by investing activities
    
75,587
      
12,885
  
                 
Financing activities
                
Net proceeds (payments) on revolving credit lines
    
65,000
      
-
  
Dividends paid to common stockholders
    
(12,810
)
    
(13,259
)
Dividends paid to Class B common stockholders
    
(1,210
)
    
(1,210
)
Repurchase of common stock held in treasury
    
(20,173
)
    
(9,873
)
Cash withholding taxes paid when shares withheld for vested equity awards
    
(3,653
)
    
(2,123
)
Net cash provided by (used in) financing activities
    
27,154
      
(26,465
)
Effect of exchange rate changes on cash and cash equivalents
    
4,075
      
(4,865
)
                 
Net increase in cash and cash equivalents
    
236,709
      
15,140
  
                 
Cash and cash equivalents at beginning of period
    
610,825
      
774,108
  
Cash and cash equivalents at end of period
  
$
847,534
    
$
789,248
  


VISHAY INTERTECHNOLOGY, INC.
                  
Reconciliation of Adjusted Earnings Per Share
              
(Unaudited - In thousands, except per share amounts)
              
   
Fiscal quarters ended
  
   
April 1, 2023
    
December 31, 2022
    
April 2, 2022
  
                   
GAAP net earnings attributable to Vishay stockholders
  
$
111,781
    
$
72,788
    
$
103,573
  
                         
Reconciling items affecting tax expense (benefit):
                  
Effect of change in indefinite reversal assertion
  
$
-
    
$
59,642
    
$
-
  
Effects of changes in valuation allowances
    
-
      
(33,669
)
    
-
  
                         
                         
Adjusted net earnings
  
$
111,781
    
$
98,761
    
$
103,573
  
                         
Adjusted weighted average diluted shares outstanding
    
141,251
      
142,247
      
145,553
  
                         
Adjusted earnings per diluted share
  
$
0.79
    
$
0.69
    
$
0.71
  


VISHAY INTERTECHNOLOGY, INC.
              
Reconciliation of Free Cash
                  
(Unaudited - In thousands)
                  
   
Fiscal quarters ended
  
   
April 1, 2023
    
December 31, 2022
    
April 2, 2022
  
Net cash provided by operating activities
  
$
129,893
    
$
166,496
    
$
33,585
  
Proceeds from sale of property and equipment
    
326
      
726
      
72
  
Less: Capital expenditures
    
(45,574
)
    
(153,133
)
    
(35,909
)
Free cash
  
$
84,645
    
$
14,089
    
$
(2,252
)


VISHAY INTERTECHNOLOGY, INC.
              
Reconciliation of EBITDA and Adjusted EBITDA
              
(Unaudited - In thousands)
                  
   
Fiscal quarters ended
  
   
April 1, 2023
    
December 31, 2022
    
April 2, 2022
  
                   
GAAP net earnings attributable to Vishay stockholders
  
$
111,781
    
$
72,788
    
$
103,573
  
Net earnings attributable to noncontrolling interests
    
408
      
413
      
377
  
Net earnings
  
$
112,189
    
$
73,201
    
$
103,950
  
                         
Interest expense
  
$
5,120
    
$
4,490
    
$
4,222
  
Interest income
    
(5,944
)
    
(4,374
)
    
(561
)
Income taxes
    
44,588
      
54,999
      
32,330
  
Depreciation and amortization
    
43,301
      
42,690
      
40,650
  
EBITDA
  
$
199,254
    
$
171,006
    
$
180,591
  
                         
Reconciling items
  
$
-
    
$
-
    
$
-
  
                         
Adjusted EBITDA
  
$
199,254
    
$
171,006
    
$
180,591
  
                         
Adjusted EBITDA margin**
    
22.9
%
    
20.0
%
    
21.2
%
                         
** Adjusted EBITDA as a percentage of net revenues