EX-99.1 2 exhibit99-1.htm EXHIBIT 99.1
Exhibit 99.1
 
VISHAY REPORTS RESULTS FOR FOURTH QUARTER AND YEAR 2018


·
Revenues for Q4 2018 of $776 million and for year 2018 $3,035 million
·
Gross Margin Q4 of 28.3% and year 2018 of 29.3%
·
Operating Margin Q4 of 15.4% and year 2018 of 16.0%
·
EPS Q4 of $0.69 and year 2018 $2.24
·
Adjusted EPS Q4 of $0.58 and year 2018 of $2.12
·
Cash from operations for year 2018 of $259 million, proceeds from sale of property and equipment of $56 million, and capital expenditures of $230 million
·
Guidance for Q1 2019 for revenues of $730 to $770 million and gross margins of 28% to 29% at Q4 exchange rates

MALVERN, PENNSYLVANIA – February 5, 2019 – Vishay Intertechnology, Inc. (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive components, today announced its results for the year and fiscal quarter ended December 31, 2018.

Revenues for the year ended December 31, 2018 were $3,034.7 million, compared to $2,599.4 million for the year ended December 31, 2017.  Net earnings attributable to Vishay stockholders for the year ended December 31, 2018 were $345.8 million, or $2.24 per diluted share.  Net loss attributable to Vishay stockholders for the year ended December 31, 2017 was $(20.3) million, or $(0.14) per share.

Revenues for the fiscal quarter ended December 31, 2018 were $775.9 million, compared to $781.0 million for the fiscal quarter ended September 29, 2018, and $673.5 million for the fiscal quarter ended December 31, 2017.  Net earnings attributable to Vishay stockholders for the fiscal quarter ended December 31, 2018 were $102.4 million, or $0.69 per diluted share, compared to $77.9 million, or $0.51 per diluted share for the fiscal quarter ended September 29, 2018, and net loss attributable to Vishay stockholders of $(177.7) million, or $(1.23) per share for the fiscal quarter ended December 31, 2017.

As summarized on the attached reconciliation schedule, all periods presented include items affecting comparability.  Adjusted earnings per diluted share, which exclude these items net of tax and the unusual tax items, were $0.58 and $2.12 for the fiscal quarter and year ended December 31, 2018, respectively, $0.60 for the fiscal quarter ended September 29, 2018, and $0.37 and $1.43 for the fiscal quarter and year ended December 31, 2017, respectively.

Commenting on the results for the year 2018, Dr. Gerald Paul, President and Chief Executive Officer, stated, "2018 was a record year for Vishay in terms of revenues and the second highest ever in terms of profitability. As in the previous year, partially extreme demand from virtually all market segments drove this strength. We further increased manufacturing capacities of most of our product lines considerably and we continue to do so for several strategic lines. Driven by increased volume Vishay demonstrated the leverage of its business model."

Dr. Paul continued, commenting on the results for the fourth quarter 2018, "When excluding exchange rate effects, revenues were flat quarter over quarter. There were signs of normalization as supply started to catch up with demand. Lead times for critical product lines, while still stretched, are starting to normalize. Market conditions overall remain stable."

Commenting on the outlook Dr. Paul stated, "For the first quarter, we guide for revenues of $730 to $770 million and gross margins of 28% to 29% at the exchange rates for the fourth quarter."

A conference call to discuss Vishay's fourth quarter and full year financial results is scheduled for Tuesday, February 5, 2019 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 4585076.

There will be a replay of the conference call from 12:00 p.m. ET on Tuesday, February 5, 2019 through 11:59 p.m. ET on Tuesday, February 12, 2019. 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 4585076.

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, product demand, manufacturing capacities, 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; 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.
 
 

VISHAY INTERTECHNOLOGY, INC.
            
Summary of Operations
            
(Unaudited - In thousands, except per share amounts)
            
             
   
Years ended 
  
   
December 31, 2018
    
December 31, 2017*
  
             
Net revenues
  
$
3,034,689
    
$
2,599,368
  
Costs of products sold
    
2,146,165
      
1,896,259
  
Gross profit
    
888,524
      
703,109
  
  Gross margin
    
29.3
%
    
27.0
%
                 
Selling, general, and administrative expenses
    
403,404
      
367,831
  
Restructuring and severance costs
    
-
      
11,273
  
Operating income
    
485,120
      
324,005
  
  Operating margin
    
16.0
%
    
12.5
%
                 
Other income (expense):
                
  Interest expense
    
(36,680
)
    
(27,850
)
  Other components of net periodic pension cost
    
(13,118
)
    
(12,417
)
  Other
    
8,037
      
1,738
  
  Loss on early extinguishment of debt
    
(26,583
)
    
-
  
  Loss on disposal of equity affiliate
    
-
      
(6,112
)
  Total other income (expense) - net
    
(68,344
)
    
(44,641
)
                 
Income before taxes
    
416,776
      
279,364
  
                 
Income taxes
    
70,239
      
298,924
  
                 
Net earnings (loss)
    
346,537
      
(19,560
)
                 
Less: net earnings attributable to noncontrolling interests
    
779
      
784
  
                 
Net earnings (loss) attributable to Vishay stockholders
  
$
345,758
    
$
(20,344
)
                 
Basic earnings (loss) per share attributable to Vishay stockholders
  
$
2.39
    
$
(0.14
)
                 
Diluted earnings (loss) per share attributable to Vishay stockholders
  
$
2.24
    
$
(0.14
)
                 
Weighted average shares outstanding - basic
    
144,370
      
145,633
  
                 
Weighted average shares outstanding - diluted
    
154,622
      
145,633
  
                 
Cash dividends per share
  
$
0.3225
    
$
0.2550
  
                 
*Recast for the retrospective adoption of ASUs 2014-09 and 2017-07
                
 
 
 
VISHAY INTERTECHNOLOGY, INC.
                  
Summary of Operations
                  
(Unaudited - In thousands, except per share amounts)
                  
                   
   
Fiscal quarters ended
  
   
December 31, 2018
    
September 29, 2018
    
December 31, 2017*
  
                   
Net revenues
  
$
775,892
    
$
780,972
    
$
673,462
  
Costs of products sold
    
556,202
      
544,676
      
496,086
  
Gross profit
    
219,690
      
236,296
      
177,376
  
  Gross margin
    
28.3
%
    
30.3
%
    
26.3
%
                         
Selling, general, and administrative expenses
    
100,023
      
98,198
      
95,291
  
Restructuring and severance costs
    
-
      
-
      
6,079
  
Operating income
    
119,667
      
138,098
      
76,006
  
  Operating margin
    
15.4
%
    
17.7
%
    
11.3
%
                         
Other income (expense):
                        
  Interest expense
    
(9,818
)
    
(10,813
)
    
(7,046
)
  Other components of net periodic pension cost
    
(2,782
)
    
(3,367
)
    
(3,470
)
  Other
    
2,597
      
2,890
      
587
  
  Loss on early extinguishment of debt
    
(9,274
)
    
-
      
-
  
  Gain (loss) on disposal of equity affiliate
    
-
      
-
      
948
  
  Total other income (expense) - net
    
(19,277
)
    
(11,290
)
    
(8,981
)
                         
Income before taxes
    
100,390
      
126,808
      
67,025
  
                         
Income taxes
    
(2,269
)
    
48,737
      
244,526
  
                         
Net earnings (loss)
    
102,659
      
78,071
      
(177,501
)
                         
Less: net earnings attributable to noncontrolling interests
    
240
      
195
      
156
  
                         
Net earnings (loss) attributable to Vishay stockholders
  
$
102,419
    
$
77,876
    
$
(177,657
)
                         
Basic earnings (loss) per share attributable to Vishay stockholders
  
$
0.71
    
$
0.54
    
$
(1.23
)
                         
Diluted earnings (loss) per share attributable to Vishay stockholders
  
$
0.69
    
$
0.51
    
$
(1.23
)
                         
Weighted average shares outstanding - basic
    
144,384
      
144,383
      
144,165
  
                         
Weighted average shares outstanding - diluted
    
148,378
      
152,946
      
144,165
  
                         
Cash dividends per share
  
$
0.0850
    
$
0.0850
    
$
0.0675
  
                         
*Recast for the retrospective adoption of ASUs 2014-09 and 2017-07
                  
 
 
 
VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Balance Sheets
            
(Unaudited - in thousands)
            
             
   
December 31, 2018
    
December 31, 2017*
  
             
Assets
            
Current assets:
            
  Cash and cash equivalents
  
$
686,032
    
$
748,032
  
  Short-term investments
    
78,286
      
547,136
  
  Accounts receivable, net
    
397,020
      
340,027
  
  Inventories:
                
    Finished goods
    
138,112
      
127,272
  
    Work in process
    
190,982
      
170,319
  
    Raw materials
    
150,566
      
132,068
  
  Total inventories
    
479,660
      
429,659
  
                 
  Prepaid expenses and other current assets
    
142,888
      
130,336
  
Total current assets
    
1,783,886
      
2,195,190
  
                 
Property and equipment, at cost:
                
  Land
    
87,622
      
92,285
  
  Buildings and improvements
    
619,445
      
606,168
  
  Machinery and equipment
    
2,510,001
      
2,415,769
  
  Construction in progress
    
125,109
      
103,058
  
  Allowance for depreciation
    
(2,373,176
)
    
(2,311,522
)
     
969,001
      
905,758
  
                 
Goodwill
    
147,480
      
142,742
  
                 
Other intangible assets, net
    
65,688
      
69,754
  
                 
Other assets
    
140,143
      
148,645
  
     Total assets
  
$
3,106,198
    
$
3,462,089
  
                 
*Recast for the retrospective adoption of ASUs 2014-09 and 2017-07
          
 
 
 
VISHAY INTERTECHNOLOGY, INC.
           
Consolidated Condensed Balance Sheets (continued)
            
(Unaudited - in thousands)
            
             
   
December 31, 2018
    
December 31, 2017*
  
             
Liabilities and stockholders' equity
            
Current liabilities:
            
  Notes payable to banks
  
$
18
    
$
4
  
  Trade accounts payable
    
218,322
      
222,373
  
  Payroll and related expenses
    
141,670
      
135,702
  
  Other accrued expenses
    
229,660
      
154,230
  
  Income taxes
    
54,436
      
50,226
  
Total current liabilities
    
644,106
      
562,535
  
                 
Long-term debt less current portion
    
494,509
      
370,470
  
U.S. transition tax payable
    
154,953
      
151,200
  
Deferred income taxes
    
85,471
      
336,465
  
Other liabilities
    
79,489
      
75,249
  
Accrued pension and other postretirement costs
    
260,984
      
281,701
  
Total liabilities
    
1,719,512
      
1,777,620
  
                 
Redeemable convertible debentures
    
2,016
      
252,070
  
                 
Equity:
                
Vishay stockholders' equity
                
  Common stock
    
13,212
      
13,188
  
  Class B convertible common stock
    
1,210
      
1,213
  
  Capital in excess of par value
    
1,436,011
      
1,752,506
  
  Retained earnings (accumulated deficit)
    
(61,258
)
    
(362,254
)
  Accumulated other comprehensive income (loss)
    
(6,791
)
    
25,714
  
  Total Vishay stockholders' equity
    
1,382,384
      
1,430,367
  
Noncontrolling interests
    
2,286
      
2,032
  
Total equity
    
1,384,670
      
1,432,399
  
Total liabilities, temporary equity, and equity
  
$
3,106,198
    
$
3,462,089
  
                 
*Recast for the retrospective adoption of ASUs 2014-09 and 2017-07
          
 
 
 
VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Statements of Cash Flows
            
(In thousands)
            
   
Years ended
  
   
December 31, 2018
    
December 31, 2017
  
   
(unaudited)
        
Operating activities
            
Net earnings
  
$
346,537
    
$
(19,560
)
Adjustments to reconcile net earnings (loss) to
                
    net cash provided by operating activities:
                
      Depreciation and amortization
    
161,863
      
163,146
  
      (Gain) loss on disposal of property and equipment
    
(2,216
)
    
(265
)
      Accretion of interest on convertible debt instruments
    
10,769
      
4,984
  
      Inventory write-offs for obsolescence
    
23,872
      
17,771
  
      Loss on disposal of equity affiliate
    
-
      
6,112
  
      Pensions and other postretirement benefits, net of contributions
    
(1,549
)
    
(2,425
)
      Loss on early extinguishment of debt
    
26,583
      
-
  
      Deferred income taxes
    
(55,206
)
    
52,377
  
      Other
    
21,194
      
13,044
  
      U.S. transition tax
    
(14,757
)
    
180,000
  
      Repatriation taxes
    
(156,767
)
    
-
  
      Changes in operating assets and liabilities, net of effects of businesses acquired
    
(101,817
)
    
(46,407
)
Net cash provided by operating activities
    
258,506
      
368,777
  
                 
Investing activities
                
Purchase of property and equipment
    
(229,899
)
    
(170,432
)
Proceeds from sale of property and equipment
    
55,561
      
1,685
  
Purchase of businesses, net of cash acquired
    
(14,880
)
    
-
  
Purchase of short-term investments
    
(175,403
)
    
(749,600
)
Maturity of short-term investments
    
636,108
      
887,729
  
Other investing activities
    
(2,058
)
    
(4,189
)
Net cash provided by (used in) investing activities
    
269,429
      
(34,807
)
                 
Financing activities
                
Proceeds from long-term borrowings
    
600,000
      
-
  
Issuance costs
    
(15,621
)
    
-
  
Repurchase of convertible debentures
    
(960,995
)
    
-
  
Net proceeds (payments) on revolving credit lines
    
(150,000
)
    
7,000
  
Common stock repurchases
    
-
      
(39,944
)
Net changes in short-term borrowings
    
15
      
1
  
Dividends paid to common stockholders
    
(42,608
)
    
(33,956
)
Dividends paid to Class B common stockholders
    
(3,901
)
    
(3,093
)
Proceeds from stock options exercised
    
-
      
1,260
  
Distributions to noncontrolling interests
    
(525
)
    
(1,140
)
Acquisition of noncontrolling interests
    
-
      
(4,100
)
Cash withholding taxes paid when shares withheld for vested equity awards
    
(2,297
)
    
(1,971
)
Other financing activities
    
-
      
(1,255
)
Net cash used in financing activities
    
(575,932
)
    
(77,198
)
Effect of exchange rate changes on cash and cash equivalents
    
(14,003
)
    
19,479
  
                 
Net increase (decrease) in cash and cash equivalents
    
(62,000
)
    
276,251
  
                 
Cash and cash equivalents at beginning of period
    
748,032
      
471,781
  
Cash and cash equivalents at end of period
  
$
686,032
    
$
748,032
  
 
 
 
VISHAY INTERTECHNOLOGY, INC.
                              
Reconciliation of Adjusted Earnings Per Share
                          
(Unaudited - In thousands, except per share amounts)
                          
   
Fiscal quarters ended
    
Years ended
  
   
December 31, 2018
    
September 29, 2018
    
December 31, 2017
    
December 31, 2018
    
December 31, 2017
  
                               
GAAP net earnings (loss) attributable to Vishay stockholders
  
$
102,419
    
$
77,876
    
$
(177,657
)
  
$
345,758
    
$
(20,344
)
                                         
Reconciling items affecting operating income:
                                  
Restructuring and severance costs
  
$
-
    
$
-
    
$
6,079
    
$
-
    
$
11,273
  
                                         
Reconciling items affecting other income (expense):
                                  
Loss on early extinguishment of debt
  
$
9,274
    
$
-
    
$
-
    
$
26,583
    
$
-
  
Loss (gain) on disposal of equity affiliate
    
-
      
-
      
(948
)
    
-
      
6,112
  
                                         
Reconciling items affecting tax expense (benefit):
                                  
Enactment of TCJA
  
$
-
    
$
13,496
    
$
234,855
    
$
25,496
    
$
234,855
  
Effects of cash repatriation program
    
(3,037
)
    
680
      
(2,702
)
    
(10,047
)
    
(5,802
)
Change in deferred taxes due to early extinguishment of debt
    
(20,914
)
    
-
      
-
      
(54,877
)
    
-
  
Effects of changes in uncertain tax positions
    
-
      
-
      
2,369
      
-
      
1,565
  
Tax effects of pre-tax items above
    
(2,028
)
    
-
      
(2,060
)
    
(5,812
)
    
(3,331
)
                                         
                                         
Adjusted net earnings
  
$
85,714
    
$
92,052
    
$
59,936
    
$
327,101
    
$
224,328
  
                                         
Adjusted weighted average diluted shares outstanding
    
148,378
      
152,946
      
161,177
      
154,622
      
157,010
  
                                         
Adjusted earnings per diluted share
  
$
0.58
    
$
0.60
    
$
0.37
    
$
2.12
    
$
1.43
  
 
 
 
VISHAY INTERTECHNOLOGY, INC.
                          
Reconciliation of Free Cash
                              
(Unaudited - In thousands)
                              
   
Fiscal quarters ended
    
Years ended
  
   
December 31, 2018
    
September 29, 2018
    
December 31, 2017
    
December 31, 2018
    
December 31, 2017
  
Net cash provided by operating activities
  
$
149,615
    
$
70,721
    
$
122,932
    
$
258,506
    
$
368,777
  
Proceeds from sale of property and equipment
    
47,106
      
77
      
201
      
55,561
      
1,685
  
Less: Capital expenditures
    
(103,508
)
    
(49,745
)
    
(85,642
)
    
(229,899
)
    
(170,432
)
Free cash
  
$
93,213
    
$
21,053
    
$
37,491
    
$
84,168
    
$
200,030
  
 
 
 
 
VISHAY INTERTECHNOLOGY, INC.
                          
Reconciliation of EBITDA and Adjusted EBITDA
                    
(Unaudited - In thousands)
                              
   
Fiscal quarters ended
    
Years ended
  
   
December 31, 2018
    
September 29, 2018
    
December 31, 2017
    
December 31, 2018
    
December 31, 2017
  
                               
GAAP net earnings (loss) attributable to Vishay stockholders
  
$
102,419
    
$
77,876
    
$
(177,657
)
  
$
345,758
    
$
(20,344
)
Net earnings attributable to noncontrolling interests
    
240
      
195
      
156
      
779
      
784
  
Net earnings (loss)
  
$
102,659
    
$
78,071
    
$
(177,501
)
  
$
346,537
    
$
(19,560
)
                                         
Interest expense
  
$
9,818
    
$
10,813
    
$
7,046
    
$
36,680
    
$
27,850
  
Interest income
    
(3,638
)
    
(3,504
)
    
(1,883
)
    
(11,940
)
    
(6,482
)
Income taxes
    
(2,269
)
    
48,737
      
244,526
      
70,239
      
298,924
  
Depreciation and amortization
    
39,975
      
40,714
      
41,827
      
161,863
      
163,146
  
EBITDA
  
$
146,545
    
$
174,831
    
$
114,015
    
$
603,379
    
$
463,878
  
                                         
Reconciling items
                                        
Restructuring and severance costs
  
$
-
    
$
-
    
$
6,079
    
$
-
    
$
11,273
  
Loss on early extinguishment of debt
    
9,274
      
-
      
-
      
26,583
      
-
  
Loss (gain) on disposal of equity affiliate
    
-
      
-
      
(948
)
    
-
      
6,112
  
                                         
Adjusted EBITDA
  
$
155,819
    
$
174,831
    
$
119,146
    
$
629,962
    
$
481,263
  
                                         
Adjusted EBITDA margin**
    
20.1
%
    
22.4
%
    
17.7
%
    
20.8
%
    
18.5
%
                                         
** Adjusted EBITDA as a percentage of net revenues
                          
 
 
Contact:
Vishay Intertechnology, Inc.
Peter Henrici
Senior Vice President, Corporate Communications
 +1-610-644-1300