EX-99.1 2 exhibit99-1.htm EXHIBIT 99.1
Exhibit 99.1

VISHAY REPORTS RESULTS FOR SECOND QUARTER 2020

◾
Revenues Q2 of $582 million
◾
Gross margin Q2 of 22.5%; adjusted gross margin 22.6%
◾
Operating margin Q2 of 7.0%; adjusted operating margin 7.2%
◾
EPS Q2 of $0.17; adjusted EPS $0.18
◾
Free Cash for the trailing 12 months Q2 of $151 million
◾
Repurchased $75.8 million principal amount of convertible notes due 2025, at approximately 93% of face value, to provide flexibility to adjust future debt levels as necessary
◾
Guidance Q3 for revenues of $580 to $620 million at a gross margin of 22.8% plus/minus 70 basis points, assuming a USD/EUR exchange rate of 0.87

MALVERN, PA - August 4, 2020 - 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 and six fiscal months ended July 4, 2020.

Revenues for the fiscal quarter ended July 4, 2020 were $581.7 million, compared to $612.8 million for the fiscal quarter ended April 4, 2020, and $685.2 million for the fiscal quarter ended June 29, 2019.  Net earnings attributable to Vishay stockholders for the fiscal quarter ended July 4, 2020 were $24.7 million, or $0.17 per diluted share, compared to $27.2 million, or $0.19 per diluted share for the fiscal quarter ended April 4, 2020, and $44.5 million, or $0.31 per diluted share for the fiscal quarter ended June 29, 2019.

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 $0.18, $0.21, and $0.36 for the fiscal quarters ended July 4, 2020, April 4, 2020, and June 29, 2019, respectively.

Commenting on results for the second quarter 2020, Dr. Gerald Paul, President and Chief Executive Officer stated, “The second quarter has been strongly impacted by the lockdowns in many countries due to COVID-19, in particular the shutdown of automotive plants in Europe and the Americas. Asia, especially China, having gone through a lockdown already in the first quarter, showed a quick recovery whereas revenues in Europe and the Americas were steeply lower. The weakest end market was automotive with revenues lower by 34% compared to the first quarter.”

Dr. Paul continued, “On the other hand, the second quarter seems to represent the bottom of this cycle and, clearly, the fundamentals for Vishay’s growth remain intact. Vishay has successfully mastered temporary economic downturns in the past and we are doing so again. We continue to be focused on profitability and cash generation while safeguarding the health and well-being of our employees.”

Commenting on the outlook Dr. Paul stated, “For the third quarter 2020 we expect lower sales to Vishay’s distribution partners compensated by recovering sales to our automotive customers, and guide for revenues in the range of $580 to $620 million at a gross margin of 22.8% plus/minus 70 basis points, assuming a USD/EUR exchange rate of 0.87.”

A conference call to discuss Vishay’s second quarter financial results is scheduled for Tuesday, August 4, 2020 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 access code is 6075047.

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 12:00 p.m. ET on Tuesday, August 4, 2020, through 11:59 p.m. ET on Tuesday, August 12, 2020. 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 6075047.


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 http://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, 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; manufacturing or supply chain interruptions or changes in customer demand because of COVID-19; 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)
                  
                   
   
Fiscal quarters ended
  
   
July 4, 2020
    
April 4, 2020
    
June 29, 2019
  
                   
Net revenues
  
$
581,717
    
$
612,841
    
$
685,240
  
Costs of products sold*
    
451,047
      
465,601
      
510,639
  
Gross profit
    
130,670
      
147,240
      
174,601
  
  Gross margin
    
22.5
%
    
24.0
%
    
25.5
%
                         
Selling, general, and administrative expenses**
    
89,127
      
99,832
      
95,112
  
Restructuring and severance costs
    
743
      
-
      
-
  
Operating income
    
40,800
      
47,408
      
79,489
  
  Operating margin
    
7.0
%
    
7.7
%
    
11.6
%
                         
Other income (expense):
                        
  Interest expense
    
(8,430
)
    
(8,552
)
    
(8,204
)
  Other
    
(1,484
)
    
198
      
(397
)
  Loss on early extinguishment of debt
    
(1,146
)
    
(2,920
)
    
-
  
  Total other income (expense) - net
    
(11,060
)
    
(11,274
)
    
(8,601
)
                         
Income before taxes
    
29,740
      
36,134
      
70,888
  
                         
Income tax expense (benefit)
    
4,845
      
8,750
      
26,153
  
                         
Net earnings
    
24,895
      
27,384
      
44,735
  
                         
Less: net earnings attributable to noncontrolling interests
    
242
      
165
      
258
  
                         
Net earnings attributable to Vishay stockholders
  
$
24,653
    
$
27,219
    
$
44,477
  
                         
Basic earnings per share attributable to Vishay stockholders
  
$
0.17
    
$
0.19
    
$
0.31
  
                         
Diluted earnings per share attributable to Vishay stockholders
  
$
0.17
    
$
0.19
    
$
0.31
  
                         
Weighted average shares outstanding - basic
    
144,846
      
144,792
      
144,621
  
                         
Weighted average shares outstanding - diluted
    
145,170
      
145,295
      
145,023
  
                         
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 $923 and $3,130 for the fiscal quarters ended July 4, 2020 and April 4, 2020, respectively.
  
** Includes incremental selling, general, and administrative expenses (benefits) separable from normal operations directly attributable to the COVID-19 outbreak of $(747) and $317, for the fiscal quarters ended July 4, 2020 and April 4, 2020, respectively.
  


VISHAY INTERTECHNOLOGY, INC.
            
Summary of Operations
            
(Unaudited - In thousands, except per share amounts)
            
             
   
Six fiscal months ended
  
   
July 4, 2020
    
June 29, 2019
  
             
Net revenues
  
$
1,194,558
    
$
1,430,399
  
Costs of products sold*
    
916,648
      
1,044,639
  
Gross profit
    
277,910
      
385,760
  
  Gross margin
    
23.3
%
    
27.0
%
                 
Selling, general, and administrative expenses*
    
188,959
      
198,536
  
Restructuring and severance costs
    
743
      
-
  
Operating income
    
88,208
      
187,224
  
  Operating margin
    
7.4
%
    
13.1
%
                 
Other income (expense):
                
  Interest expense
    
(16,982
)
    
(16,596
)
  Other
    
(1,286
)
    
1,515
  
  Loss on early extinguishment of debt
    
(4,066
)
    
(1,307
)
  Total other income (expense) - net
    
(22,334
)
    
(16,388
)
                 
Income before taxes
    
65,874
      
170,836
  
                 
Income tax expense
    
13,595
      
50,460
  
                 
Net earnings
    
52,279
      
120,376
  
                 
Less: net earnings attributable to noncontrolling interests
    
407
      
440
  
                 
Net earnings attributable to Vishay stockholders
  
$
51,872
    
$
119,936
  
                 
Basic earnings per share attributable to Vishay stockholders
  
$
0.36
    
$
0.83
  
                 
Diluted earnings per share attributable to Vishay stockholders
  
$
0.36
    
$
0.83
  
                 
Weighted average shares outstanding - basic
    
144,818
      
144,589
  
                 
Weighted average shares outstanding - diluted
    
145,232
      
145,158
  
                 
Cash dividends per share
  
$
0.19
    
$
0.18
  
                 
* 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 $4,053 and $(430), respectively.
  


VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Balance Sheets
            
(In thousands)
            
             
   
July 4, 2020
    
December 31, 2019
  
   
(Unaudited)
        
Assets
            
Current assets:
            
  Cash and cash equivalents
  
$
599,930
    
$
694,133
  
  Short-term investments
    
157,246
      
108,822
  
  Accounts receivable, net
    
285,529
      
328,187
  
  Inventories:
                
    Finished goods
    
125,177
      
122,466
  
    Work in process
    
196,846
      
187,354
  
    Raw materials
    
127,165
      
121,860
  
  Total inventories
    
449,188
      
431,680
  
                 
  Prepaid expenses and other current assets
    
131,125
      
141,294
  
Total current assets
    
1,623,018
      
1,704,116
  
                 
Property and equipment, at cost:
                
  Land
    
74,985
      
75,011
  
  Buildings and improvements
    
596,942
      
585,064
  
  Machinery and equipment
    
2,623,774
      
2,606,355
  
  Construction in progress
    
99,932
      
110,722
  
  Allowance for depreciation
    
(2,474,456
)
    
(2,425,627
)
     
921,177
      
951,525
  
                 
Right of use assets
    
103,153
      
93,162
  
                 
Goodwill
    
150,641
      
150,642
  
                 
Other intangible assets, net
    
58,583
      
60,659
  
                 
Other assets
    
168,274
      
160,671
  
     Total assets
  
$
3,024,846
    
$
3,120,775
  



VISHAY INTERTECHNOLOGY, INC.
           
Consolidated Condensed Balance Sheets (continued)
            
(In thousands)
            
             
   
July 4, 2020
    
December 31, 2019
  
   
(Unaudited)
        
             
Liabilities and equity
            
Current liabilities:
            
  Notes payable to banks
  
$
1
    
$
2
  
  Trade accounts payable
    
148,727
      
173,915
  
  Payroll and related expenses
    
126,302
      
122,100
  
  Lease liabilities
    
21,443
      
20,217
  
  Other accrued expenses
    
166,261
      
186,463
  
  Income taxes
    
40,642
      
17,731
  
Total current liabilities
    
503,376
      
520,428
  
                 
Long-term debt less current portion
    
438,494
      
499,147
  
U.S. transition tax payable
    
125,438
      
140,196
  
Deferred income taxes
    
4,231
      
22,021
  
Long-term lease liabilities
    
85,714
      
78,511
  
Other liabilities
    
98,134
      
100,207
  
Accrued pension and other postretirement costs
    
270,735
      
272,402
  
Total liabilities
    
1,526,122
      
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
    
1,412,775
      
1,425,170
  
  Retained earnings
    
95,462
      
72,180
  
  Accumulated other comprehensive income (loss)
    
(26,326
)
    
(26,646
)
  Total Vishay stockholders' equity
    
1,496,377
      
1,485,149
  
Noncontrolling interests
    
2,347
      
2,540
  
Total equity
    
1,498,724
      
1,487,689
  
Total liabilities, temporary equity, and equity
  
$
3,024,846
    
$
3,120,775
  

VISHAY INTERTECHNOLOGY, INC.
            
Consolidated Condensed Statements of Cash Flows
            
(Unaudited - In thousands)
            
   
Six fiscal months ended
  
   
July 4, 2020
    
June 29, 2019
  
             
Operating activities
            
Net earnings
  
$
52,279
    
$
120,376
  
Adjustments to reconcile net earnings to
                
    net cash provided by operating activities:
                
      Depreciation and amortization
    
82,158
      
81,346
  
      (Gain) loss on disposal of property and equipment
    
(43
)
    
(162
)
      Accretion of interest on convertible debt instruments
    
7,125
      
6,985
  
      Inventory write-offs for obsolescence
    
11,587
      
12,643
  
      Loss on early extinguishment of debt
    
4,066
      
1,307
  
      Deferred income taxes
    
(4,370
)
    
(5,601
)
      Other
    
954
      
4,283
  
      Change in U.S. transition tax liability
    
-
      
(14,757
)
      Change in repatriation tax liability
    
(16,258
)
    
(20,479
)
      Changes in operating assets and liabilities, net of effects of businesses acquired
    
(12,589
)
    
(50,122
)
Net cash provided by operating activities
    
124,909
      
135,819
  
                 
Investing activities
                
Purchase of property and equipment
    
(48,832
)
    
(70,148
)
Proceeds from sale of property and equipment
    
230
      
464
  
Purchase of businesses, net of cash acquired
    
-
      
(11,862
)
Purchase of short-term investments
    
(157,086
)
    
(1,970
)
Maturity of short-term investments
    
108,044
      
79,694
  
Other investing activities
    
(529
)
    
2,893
  
Net cash used in investing activities
    
(98,173
)
    
(929
)
                 
Financing activities
                
Issuance costs
    
-
      
(5,394
)
Repurchase of convertible debt instruments
    
(90,525
)
    
(22,695
)
Net proceeds (payments) on revolving credit lines
    
-
      
28,000
  
Net changes in short-term borrowings
    
(113
)
    
22
  
Dividends paid to common stockholders
    
(25,185
)
    
(23,822
)
Dividends paid to Class B common stockholders
    
(2,299
)
    
(2,178
)
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
    
(120,738
)
    
(29,375
)
Effect of exchange rate changes on cash and cash equivalents
    
(201
)
    
(641
)
                 
Net increase (decrease) in cash and cash equivalents
    
(94,203
)
    
104,874
  
                 
Cash and cash equivalents at beginning of period
    
694,133
      
686,032
  
Cash and cash equivalents at end of period
  
$
599,930
    
$
790,906
  


VISHAY INTERTECHNOLOGY, INC.
                              
Reconciliation of Adjusted Earnings Per Share
                          
(Unaudited - In thousands, except per share amounts)
                          
   
Fiscal quarters ended
    
Six fiscal months ended
  
   
July 4, 2020
    
April 4, 2020
    
June 29, 2019
    
July 4, 2020
    
June 29, 2019
  
                               
GAAP net earnings attributable to Vishay stockholders
  
$
24,653
    
$
27,219
    
$
44,477
    
$
51,872
    
$
119,936
  
                                         
Reconciling items affecting gross profit:
                                        
Impact of the COVID-19 outbreak
  
$
923
    
$
3,130
    
$
-
    
$
4,053
    
$
-
  
                                         
Other reconciling items affecting operating income:
                                  
Restructuring and severance costs
  
$
743
    
$
-
    
$
-
    
$
743
    
$
-
  
Impact of the COVID-19 outbreak
    
(747
)
    
317
      
-
      
(430
)
    
-
  
                                         
Reconciling items affecting other income (expense):
                                  
Loss on early extinguishment of debt
  
$
1,146
    
$
2,920
    
$
-
    
$
4,066
    
$
1,307
  
                                         
Reconciling items affecting tax expense (benefit):
                                  
Change in deferred taxes due to early extinguishment of debt
  
$
-
    
$
(1,346
)
  
$
-
    
$
(1,346
)
  
$
(1,312
)
Effects of tax-basis foreign exchange gain
    
-
      
-
      
7,554
      
-
      
7,554
  
Effects of cash repatriation program
    
(190
)
    
-
      
(48
)
    
(190
)
    
(633
)
Tax effects of pre-tax items above
    
(589
)
    
(1,482
)
    
-
      
(2,071
)
    
(290
)
                                         
Adjusted net earnings
  
$
25,939
    
$
30,758
    
$
51,983
    
$
56,697
    
$
126,562
  
                                         
Adjusted weighted average diluted shares outstanding
    
145,170
      
145,295
      
145,023
      
145,232
      
145,158
  
                                         
Adjusted earnings per diluted share
  
$
0.18
    
$
0.21
    
$
0.36
    
$
0.39
    
$
0.87
  


VISHAY INTERTECHNOLOGY, INC.
                          
Reconciliation of Free Cash
                              
(Unaudited - In thousands)
                              
   
Fiscal quarters ended
    
Six fiscal months ended
  
   
July 4, 2020
    
April 4, 2020
    
June 29, 2019
    
July 4, 2020
    
June 29, 2019
  
Net cash provided by operating activities
  
$
90,431
    
$
34,478
    
$
56,301
    
$
124,909
    
$
135,819
  
Proceeds from sale of property and equipment
    
177
      
53
      
69
      
230
      
464
  
Less: Capital expenditures
    
(24,504
)
    
(24,328
)
    
(33,781
)
    
(48,832
)
    
(70,148
)
Free cash
  
$
66,104
    
$
10,203
    
$
22,589
    
$
76,307
    
$
66,135
  



VISHAY INTERTECHNOLOGY, INC.
                          
Reconciliation of EBITDA and Adjusted EBITDA
                    
(Unaudited - In thousands)
                              
   
Fiscal quarters ended
    
Six fiscal months ended
  
   
July 4, 2020
    
April 4, 2020
    
June 29, 2019
    
July 4, 2020
    
June 29, 2019
  
                               
GAAP net earnings attributable to Vishay stockholders
  
$
24,653
    
$
27,219
    
$
44,477
    
$
51,872
    
$
119,936
  
Net earnings attributable to noncontrolling interests
    
242
      
165
      
258
      
407
      
440
  
Net earnings
  
$
24,895
    
$
27,384
    
$
44,735
    
$
52,279
    
$
120,376
  
                                         
Interest expense
  
$
8,430
    
$
8,552
    
$
8,204
    
$
16,982
    
$
16,596
  
Interest income
    
(956
)
    
(1,854
)
    
(2,147
)
    
(2,810
)
    
(4,346
)
Income taxes
    
4,845
      
8,750
      
26,153
      
13,595
      
50,460
  
Depreciation and amortization
    
40,638
      
41,520
      
40,918
      
82,158
      
81,346
  
EBITDA
  
$
77,852
    
$
84,352
    
$
117,863
    
$
162,204
    
$
264,432
  
                                         
Reconciling items
                                        
Impact of the COVID-19 outbreak
  
$
176
    
$
3,447
    
$
-
    
$
3,623
    
$
-
  
Restructuring and severance costs
    
743
      
-
      
-
      
743
      
-
  
Loss on early extinguishment of debt
    
1,146
      
2,920
      
-
      
4,066
      
1,307
  
                                         
Adjusted EBITDA
  
$
79,917
    
$
90,719
    
$
117,863
    
$
170,636
    
$
265,739
  
                                         
Adjusted EBITDA margin**
    
13.7
%
    
14.8
%
    
17.2
%
    
14.3
%
    
18.6
%
                                         
** Adjusted EBITDA as a percentage of net revenues
                          


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