- Revenues for Q3 2017 of $678 million
- Gross Margin Q3 of 27.9%
- Adjusted Operating Margin Q3 of 14.1%
- EPS Q3 of $0.41
- Adjusted EPS Q3 of $0.42
- Cash from operations for trailing twelve months Q3 of $329 million and capital expenditures of $138 million
- Exchange rate impacts on revenues were plus $14 million quarter over quarter
- Stock repurchase Q3 2017 of 2.1 million shares for $37.6 million
- Guidance for Q4 2017 for revenues of $645 - $685 million and gross margins of 26% - 28% at Q3 exchange rates
MALVERN, Pa., Oct. 26, 2017 (GLOBE NEWSWIRE) -- Revenues for the fiscal quarter ended September 30, 2017 were $677.9 million, compared to $644.9 million for the fiscal quarter ended July 1, 2017 and $592.0 million for the fiscal quarter ended October 1, 2016. Net earnings attributable to Vishay stockholders for the fiscal quarter ended September 30, 2017 were $64.4 million, or $0.41 per diluted share, compared to $56.2 million, or $0.36 per diluted share for the fiscal quarter ended July 1, 2017, and $36.4 million, or $0.24 per diluted share for the fiscal quarter ended October 1, 2016.
All periods presented include certain items affecting comparability. These items are summarized on the attached reconciliation schedule. Adjusted earnings per diluted share, which exclude these items net of tax and the unusual tax items, were $0.42, $0.36, and $0.25 for the fiscal quarters ended September 30, 2017, July 1, 2017, and October 1, 2016, respectively.
Commenting on the results for the third quarter 2017, Dr. Gerald Paul, President and Chief Executive Officer, stated, “The third quarter represented a continuation of the trends of the first half of the year. Demand from all end markets improved further, in particular the automotive and industrial markets. Customers remain very confident across the board. Also, inventory turns of our products at distributors remained high with 3.7 turns.”
Dr. Paul continued, “We will further increase our efforts to even better penetrate automotive and industrial markets in Asia. For automotive markets worldwide we expect strong growth for years to come driven by e-mobility and sensors. It is a market in which we are very well positioned.”
Dr. Paul stated further, “We are especially content to enjoy the benefits of having restructured the MOSFETs business. On the new cost basis, we anticipate a good future for this line.”
Commenting on the outlook Dr. Paul stated, “For the fourth quarter based on fewer working days, we guide for revenues of $645 to $685 million and gross margins of 26% to 28% at the exchange rates for the third quarter.”
A conference call to discuss Vishay’s third quarter financial results is scheduled for Thursday, October 26, 2017 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 or Canada) and the conference ID is 91653094.
There will be a replay of the conference call from 12:00 p.m. ET on Thursday, October 26, 2017 through 11:59 p.m. ET on Thursday, November 2, 2017. The telephone number for the replay is 800-585-8367 (+1 855-859-2056 or 404-537-3406 if calling from outside the United States or Canada) and the access code is 91653094.
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.
About Vishay
Vishay Intertechnology, Inc., a Fortune 1000 Company listed on the NYSE (VSH), is one of the world's largest manufacturers of discrete semiconductors (diodes, MOSFETs, and infrared optoelectronics) and passive electronic components (resistors, inductors, and capacitors). These components are used in virtually all types of electronic devices and equipment, in the industrial, computing, automotive, consumer, telecommunications, military, aerospace, power supplies, and medical markets. Vishay’s product innovations, successful acquisition strategy, and "one-stop shop" service have made it a global industry leader. Vishay can be found on the Internet 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 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 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 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, cash generation, restructuring programs and their financial impact, anticipated growth areas for the company, global growth markets generally 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; delays or difficulties in implementing our cost reduction strategies; 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 applicable domestic and foreign tax regulations and uncertainty regarding the same; 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.
Source: Vishay Intertechnology, Inc.
Contact:
Vishay Intertechnology, Inc.
Peter Henrici
Senior Vice President, Corporate Communications
+1-610-644-1300
| VISHAY INTERTECHNOLOGY, INC. | ||||||||||||
| Summary of Operations | ||||||||||||
| (Unaudited - In thousands, except per share amounts) | ||||||||||||
| Fiscal quarters ended | ||||||||||||
| September 30, 2017 | July 1, 2017 | October 1, 2016 | ||||||||||
| Net revenues | $ | 677,883 | $ | 644,892 | $ | 591,955 | ||||||
| Costs of products sold | 488,610 | 471,929 | 438,054 | |||||||||
| Gross profit | 189,273 | 172,963 | 153,901 | |||||||||
| Gross margin | 27.9 | % | 26.8 | % | 26.0 | % | ||||||
| Selling, general, and administrative expenses | 93,701 | 90,446 | 93,916 | |||||||||
| Restructuring and severance costs | 3,244 | 481 | 1,197 | |||||||||
| Impairment of intangible assets | - | - | 1,559 | |||||||||
| Operating income | 92,328 | 82,036 | 57,229 | |||||||||
| Operating margin | 13.6 | % | 12.7 | % | 9.7 | % | ||||||
| Other income (expense): | ||||||||||||
| Interest expense | (6,938 | ) | (7,076 | ) | (6,165 | ) | ||||||
| Other | 798 | 749 | (380 | ) | ||||||||
| Total other income (expense) - net | (6,140 | ) | (6,327 | ) | (6,545 | ) | ||||||
| Income before taxes | 86,188 | 75,709 | 50,684 | |||||||||
| Income taxes | 21,605 | 19,300 | 14,088 | |||||||||
| Net earnings | 64,583 | 56,409 | 36,596 | |||||||||
| Less: net earnings attributable to noncontrolling interests | 179 | 219 | 156 | |||||||||
| Net earnings attributable to Vishay stockholders | $ | 64,404 | $ | 56,190 | $ | 36,440 | ||||||
| Basic earnings per share attributable to Vishay stockholders | $ | 0.44 | $ | 0.38 | $ | 0.25 | ||||||
| Diluted earnings per share attributable to Vishay stockholders | $ | 0.41 | $ | 0.36 | $ | 0.24 | ||||||
| Weighted average shares outstanding - basic | 145,728 | 146,381 | 146,924 | |||||||||
| Weighted average shares outstanding - diluted | 156,701 | 155,300 | 149,894 | |||||||||
| Cash dividends per share | $ | 0.0625 | $ | 0.0625 | $ | 0.0625 | ||||||
| VISHAY INTERTECHNOLOGY, INC. | ||||||||||||||||||
| Summary of Operations | ||||||||||||||||||
| (Unaudited - In thousands, except per share amounts) | ||||||||||||||||||
| Nine fiscal months ended | ||||||||||||||||||
| September 30, 2017 | October 1, 2016 | |||||||||||||||||
| Net revenues | $ | 1,929,033 | $ | 1,752,612 | ||||||||||||||
| Costs of products sold | 1,405,922 | 1,315,274 | ||||||||||||||||
| Gross profit | 523,111 | 437,338 | ||||||||||||||||
| Gross margin | 27.1 | % | 25.0 | % | ||||||||||||||
| Selling, general, and administrative expenses | 278,865 | 276,455 | ||||||||||||||||
| Restructuring and severance costs | 5,194 | 12,139 | ||||||||||||||||
| Impairment of intangible assets | - | 1,559 | ||||||||||||||||
| Operating income | 239,052 | 147,185 | ||||||||||||||||
| Operating margin | 12.4 | % | 8.4 | % | ||||||||||||||
| Other income (expense): | ||||||||||||||||||
| Interest expense | (20,804 | ) | (18,901 | ) | ||||||||||||||
| Other | 1,151 | 2,655 | ||||||||||||||||
| Loss on disposal of equity affiliate | (7,060 | ) | - | |||||||||||||||
| Gain on early extinguishment of debt | - | 4,597 | ||||||||||||||||
| Total other income (expense) - net | (26,713 | ) | (11,649 | ) | ||||||||||||||
| Income before taxes | 212,339 | 135,536 | ||||||||||||||||
| Income taxes | 54,398 | 37,559 | ||||||||||||||||
| Net earnings | 157,941 | 97,977 | ||||||||||||||||
| Less: net earnings attributable to noncontrolling interests | 628 | 437 | ||||||||||||||||
| Net earnings attributable to Vishay stockholders | $ | 157,313 | $ | 97,540 | ||||||||||||||
| Basic earnings per share attributable to Vishay stockholders | $ | 1.08 | $ | 0.66 | ||||||||||||||
| Diluted earnings per share attributable to Vishay stockholders | $ | 1.01 | $ | 0.65 | ||||||||||||||
| Weighted average shares outstanding - basic | 146,128 | 147,470 | ||||||||||||||||
| Weighted average shares outstanding - diluted | 155,626 | 150,125 | ||||||||||||||||
| Cash dividends per share | $ | 0.1875 | $ | 0.1875 | ||||||||||||||
| VISHAY INTERTECHNOLOGY, INC. | ||||||||
| Consolidated Condensed Balance Sheets | ||||||||
| (In thousands) | ||||||||
| September 30, 2017 | December 31, 2016 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 575,385 | $ | 471,781 | ||||
| Short-term investments | 668,185 | 626,627 | ||||||
| Accounts receivable, net | 329,422 | 274,027 | ||||||
| Inventories: | ||||||||
| Finished goods | 131,367 | 109,075 | ||||||
| Work in process | 178,173 | 162,311 | ||||||
| Raw materials | 128,036 | 109,859 | ||||||
| Total inventories | 437,576 | 381,245 | ||||||
| Prepaid expenses and other current assets | 112,394 | 110,792 | ||||||
| Total current assets | 2,122,962 | 1,864,472 | ||||||
| Property and equipment, at cost: | ||||||||
| Land | 91,905 | 89,753 | ||||||
| Buildings and improvements | 595,628 | 570,932 | ||||||
| Machinery and equipment | 2,399,972 | 2,283,222 | ||||||
| Construction in progress | 63,766 | 71,777 | ||||||
| Allowance for depreciation | (2,298,431 | ) | (2,166,813 | ) | ||||
| 852,840 | 848,871 | |||||||
| Goodwill | 142,545 | 141,407 | ||||||
| Other intangible assets, net | 73,154 | 84,463 | ||||||
| Other assets | 142,753 | 138,588 | ||||||
| Total assets | $ | 3,334,254 | $ | 3,077,801 | ||||
| VISHAY INTERTECHNOLOGY, INC. | |||||||||
| Consolidated Condensed Balance Sheets (continued) | |||||||||
| (In thousands) | |||||||||
| September 30, 2017 | December 31, 2016 | ||||||||
| (unaudited) | |||||||||
| Liabilities and stockholders' equity | |||||||||
| Current liabilities: | |||||||||
| Notes payable to banks | $ | 25 | $ | 3 | |||||
| Trade accounts payable | 181,988 | 174,107 | |||||||
| Payroll and related expenses | 138,616 | 114,576 | |||||||
| Other accrued expenses | 151,883 | 149,131 | |||||||
| Income taxes | 18,085 | 19,033 | |||||||
| Total current liabilities | 490,597 | 456,850 | |||||||
| Long-term debt less current portion | 356,938 | 357,023 | |||||||
| Deferred income taxes | 289,526 | 286,797 | |||||||
| Other liabilities | 67,712 | 59,725 | |||||||
| Accrued pension and other postretirement costs | 273,851 | 257,789 | |||||||
| Total liabilities | 1,478,624 | 1,418,184 | |||||||
| Redeemable convertible debentures | 252,889 | 88,659 | |||||||
| Equity: | |||||||||
| Vishay stockholders' equity | |||||||||
| Common stock | 13,200 | 13,385 | |||||||
| Class B convertible common stock | 1,213 | 1,213 | |||||||
| Capital in excess of par value | 1,753,369 | 1,952,988 | |||||||
| Retained earnings (accumulated deficit) | (177,075 | ) | (307,417 | ) | |||||
| Accumulated other comprehensive income (loss) | 10,158 | (94,652 | ) | ||||||
| Total Vishay stockholders' equity | 1,600,865 | 1,565,517 | |||||||
| Noncontrolling interests | 1,876 | 5,441 | |||||||
| Total equity | 1,602,741 | 1,570,958 | |||||||
| Total liabilities, temporary equity, and equity | $ | 3,334,254 | $ | 3,077,801 | |||||
| VISHAY INTERTECHNOLOGY, INC. | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (Unaudited - In thousands) | ||||||||
| Nine fiscal months ended | ||||||||
| September 30, 2017 | October 1, 2016* | |||||||
| Operating activities | ||||||||
| Net earnings | $ | 157,941 | $ | 97,977 | ||||
| Adjustments to reconcile net earnings (loss) to | ||||||||
| net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 121,319 | 119,143 | ||||||
| (Gain) loss on disposal of property and equipment | (106 | ) | (1,373 | ) | ||||
| Accretion of interest on convertible debentures | 3,703 | 3,425 | ||||||
| Inventory write-offs for obsolescence | 12,157 | 17,085 | ||||||
| Loss on disposal of equity affiliate | 7,060 | - | ||||||
| Impairment of intangible assets | - | 1,559 | ||||||
| Deferred income taxes | 9,115 | (1,750 | ) | |||||
| Gain on early extinguishment of debt | - | (4,597 | ) | |||||
| Other | 6,531 | (4,944 | ) | |||||
| Changes in operating assets and liabilities, net of effects of businesses acquired | (71,875 | ) | (13,455 | ) | ||||
| Net cash provided by operating activities | 245,845 | 213,070 | ||||||
| Investing activities | ||||||||
| Purchase of property and equipment | (84,790 | ) | (81,346 | ) | ||||
| Proceeds from sale of property and equipment | 1,484 | 1,241 | ||||||
| Purchase of short-term investments | (598,937 | ) | (472,938 | ) | ||||
| Maturity of short-term investments | 610,573 | 491,867 | ||||||
| Other investing activities | (6,663 | ) | 2,886 | |||||
| Net cash provided by (used in) investing activities | (78,333 | ) | (58,290 | ) | ||||
| Financing activities | ||||||||
| Principal payments on long-term debt and capital lease obligations | - | (34,044 | ) | |||||
| Net proceeds (payments) on revolving credit lines | (5,000 | ) | (41,000 | ) | ||||
| Common stock repurchases | (37,564 | ) | (16,981 | ) | ||||
| Net changes in short-term borrowings | 22 | (626 | ) | |||||
| Dividends paid to common stockholders | (25,054 | ) | (25,329 | ) | ||||
| Dividends paid to Class B common stockholders | (2,274 | ) | (2,274 | ) | ||||
| Proceeds from stock options exercised | 1,260 | - | ||||||
| Distributions to noncontrolling interests | (1,140 | ) | (707 | ) | ||||
| Acquisition of noncontrolling interests | (4,100 | ) | - | |||||
| Cash withholding taxes paid when shares withheld for vested equity awards | (1,971 | ) | (442 | ) | ||||
| Other financing activities | (1,255 | ) | - | |||||
| Net cash provided by (used in) financing activities | (77,076 | ) | (121,403 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 13,168 | 2,703 | ||||||
| Net increase in cash and cash equivalents | 103,604 | 36,080 | ||||||
| Cash and cash equivalents at beginning of period | 471,781 | 475,507 | ||||||
| Cash and cash equivalents at end of period | $ | 575,385 | $ | 511,587 | ||||
| * recast for the retrospective adoption of ASU 2016-09. | ||||||||
| VISHAY INTERTECHNOLOGY, INC. | |||||||||||||||||||||||
| Reconciliation of Adjusted Earnings Per Share | |||||||||||||||||||||||
| (Unaudited - In thousands, except per share amounts) | |||||||||||||||||||||||
| Fiscal quarters ended | Nine fiscal months ended | ||||||||||||||||||||||
| September 30, 2017 | July 1, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | |||||||||||||||||||
| GAAP net earnings attributable to Vishay stockholders | $ | 64,404 | $ | 56,190 | $ | 36,440 | $ | 157,313 | $ | 97,540 | |||||||||||||
| Reconciling items affecting operating income: | |||||||||||||||||||||||
| Restructuring and severance costs | $ | 3,244 | $ | 481 | $ | 1,197 | $ | 5,194 | $ | 12,139 | |||||||||||||
| Impairment of intangible assets | - | - | 1,559 | - | 1,559 | ||||||||||||||||||
| Reconciling items affecting other income (expense): | |||||||||||||||||||||||
| Loss on disposal of equity affiliate | $ | - | $ | - | $ | - | $ | 7,060 | $ | - | |||||||||||||
| Gain on early extinguishment of debt | - | - | - | - | (4,597 | ) | |||||||||||||||||
| Reconciling items affecting tax expense (benefit): | |||||||||||||||||||||||
| Effects of cash repatriation program | $ | (892 | ) | $ | (1,240 | ) | $ | (1,402 | ) | $ | (3,100 | ) | $ | (3,388 | ) | ||||||||
| Effects of changes in uncertain tax positions | (804 | ) | - | - | (804 | ) | - | ||||||||||||||||
| Tax effects of pre-tax items above | (674 | ) | (156 | ) | (441 | ) | (1,271 | ) | (2,436 | ) | |||||||||||||
| Adjusted net earnings | $ | 65,278 | $ | 55,275 | $ | 37,353 | $ | 164,392 | $ | 100,817 | |||||||||||||
| Adjusted weighted average diluted shares outstanding | 156,701 | 155,300 | 149,894 | 155,626 | 150,125 | ||||||||||||||||||
| Adjusted earnings per diluted share* | $ | 0.42 | $ | 0.36 | $ | 0.25 | $ | 1.06 | $ | 0.67 | |||||||||||||
| * Includes add-back of interest on exchangeable notes in periods where the notes are dilutive. | |||||||||||||||||||||||
| VISHAY INTERTECHNOLOGY, INC. | ||||||||||||||||||||||||
| Reconciliation of Free Cash | ||||||||||||||||||||||||
| (Unaudited - In thousands) | ||||||||||||||||||||||||
| Fiscal quarters ended | Nine fiscal months ended | |||||||||||||||||||||||
| September 30, 2017 | July 1, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 117,579 | $ | 84,592 | $ | 117,657 | $ | 245,845 | $ | 213,070 | ||||||||||||||
| Proceeds from sale of property and equipment | 196 | 345 | 1,048 | 1,484 | 1,241 | |||||||||||||||||||
| Less: Capital expenditures | (35,723 | ) | (32,399 | ) | (30,273 | ) | (84,790 | ) | (81,346 | ) | ||||||||||||||
| Free cash | $ | 82,052 | $ | 52,538 | $ | 88,432 | $ | 162,539 | $ | 132,965 | ||||||||||||||
| VISHAY INTERTECHNOLOGY, INC. | |||||||||||||||||||||||
| Reconciliation of EBITDA and Adjusted EBITDA | |||||||||||||||||||||||
| (Unaudited - In thousands) | |||||||||||||||||||||||
| Fiscal quarters ended | Nine fiscal months ended | ||||||||||||||||||||||
| September 30, 2017 | July 1, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | |||||||||||||||||||
| GAAP net earnings attributable to Vishay stockholders | $ | 64,404 | $ | 56,190 | $ | 36,440 | $ | 157,313 | $ | 97,540 | |||||||||||||
| Net earnings attributable to noncontrolling interests | 179 | 219 | 156 | 628 | 437 | ||||||||||||||||||
| Net earnings | $ | 64,583 | $ | 56,409 | $ | 36,596 | $ | 157,941 | $ | 97,977 | |||||||||||||
| Interest expense | $ | 6,938 | $ | 7,076 | $ | 6,165 | $ | 20,804 | $ | 18,901 | |||||||||||||
| Interest income | (1,802 | ) | (1,534 | ) | (1,033 | ) | (4,599 | ) | (3,200 | ) | |||||||||||||
| Income taxes | 21,605 | 19,300 | 14,088 | 54,398 | 37,559 | ||||||||||||||||||
| Depreciation and amortization | 40,939 | 40,168 | 40,026 | 121,319 | 119,143 | ||||||||||||||||||
| EBITDA | $ | 132,263 | $ | 121,419 | $ | 95,842 | $ | 349,863 | $ | 270,380 | |||||||||||||
| Reconciling items | |||||||||||||||||||||||
| Restructuring and severance costs | $ | 3,244 | $ | 481 | $ | 1,197 | $ | 5,194 | $ | 12,139 | |||||||||||||
| Impairment of intangible assets | - | - | 1,559 | - | 1,559 | ||||||||||||||||||
| Loss on disposal of equity affiliate | - | - | - | 7,060 | - | ||||||||||||||||||
| Gain on early extinguishment of debt | - | - | - | - | (4,597 | ) | |||||||||||||||||
| Adjusted EBITDA | $ | 135,507 | $ | 121,900 | $ | 98,598 | $ | 362,117 | $ | 279,481 | |||||||||||||
| Adjusted EBITDA margin** | 20.0 | % | 18.9 | % | 16.7 | % | 18.8 | % | 15.9 | % | |||||||||||||
| ** Adjusted EBITDA as a percentage of net revenues | |||||||||||||||||||||||