Vishay Intertechnology Reports First Quarter 2024 Results
MALVERN, Pa., May 08, 2024 (GLOBE NEWSWIRE) -- 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 March 30, 2024. Highlights 1Q 2024 revenues of $746.3 millionGross margin was 22.8% and included the negative impact of 74 basis points related to the addition of NewportEPS of $0.221Q 2024 book-to-bill of 0.82 with book-to-bill of 0.73 for semiconductors and 0.91 for passive componentsBacklog at quarter end was 5.0 months “As expected, first quarter revenue declined 5% sequentially primarily due to ongoing semiconductor inventory digestion and lingering macro-economic uncertainties, particularly in Asia and Europe. Passive components revenue is stable to growing in Automotive with stronger growth in Aerospace/Defense. Gross margin for the quarter included a 74-basis point negative impact from the addition of Newport,” said Joel Smejkal, President and Chief Executive Officer. “Looking ahead, we still expect a recovery from the inventory correction in the second half of the year, led by passive components. During the year we intend to execute on the eight strategic growth levers we detailed at our Investor Day with a focus on investing in catch-up capacity, deepening our customer relationships and advancing our silicon carbide strategy as we prepare for the next upcycle in demand,” added Mr. Smejkal. 2Q 2024 OutlookFor the second quarter of 2024, management expects revenues in the range of $750 million +/- $20 million, including a full quarter of Newport, and a gross profit margin in the range of 21.7% +/- 50 basis points, including the negative impact of approximately 160 basis points from the addition of Newport. Conference CallA conference call to discuss Vishay’s first quarter financial results is scheduled for Wednesday, May 8, 2024 at 9:00 a.m. ET. To participate in the live conference call, please pre-register at https://register.vevent.com/register/BI24d4dbbe131d4b2ca1cfe925114ed017. 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 available on the Investor Relations website approximately one hour following the call and will remain available for 30 days. About VishayVishay 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 free cash; earnings before interest, taxes, depreciation and amortization ("EBITDA"); and 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 free cash, EBITDA, and 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. The calculations of these measures 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 "intend," "suggest," "guide," "will," "expect," 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 (including due to political, economic, and health instability and military conflicts and hostilities); 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; that the Newport wafer fab will not be integrated successfully into the Company’s overall business; that the expected benefits of the acquisition may not be realized; that the fab’s standards, procedures and controls will not be brought into conformance within the Company’s operation; difficulties in transitioning and retaining fab employees following the acquisition; difficulties in consolidating facilities and transferring processes and know-how; the diversion of our management’s attention from the management of our current business; 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 HenriciExecutive Vice President, Corporate Development+1-610-644-1300 VISHAY INTERTECHNOLOGY, INC. Summary of Operations (Unaudited - In thousands, except per share amounts) Fiscal quarters ended March 30, 2024 December 31, 2023 April 1, 2023 Net revenues$746,279 $785,236 $871,046 Costs of products sold 575,872 584,572 592,333 Gross profit 170,407 200,664 278,713 Gross margin 22.8% 25.6% 32.0% Selling, general, and administrative expenses 127,736 122,834 120,145 Operating income 42,671 77,830 158,568 Operating margin 5.7% 9.9% 18.2% Other income (expense): Interest expense (6,496) (6,454) (5,120)Other 8,087 9,268 3,329 Total other income (expense) - net 1,591 2,814 (1,791) Income before taxes 44,262 80,644 156,777 Income tax expense 12,819 28,690 44,588 Net earnings 31,443 51,954 112,189 Less: net earnings attributable to noncontrolling interests 519 482 408 Net earnings attributable to Vishay stockholders$30,924 $51,472 $111,781 Basic earnings per share attributable to Vishay stockholders$0.22 $0.37 $0.79 Diluted earnings per share attributable to Vishay stockholders$0.22 $0.37 $0.79 Weighted average shares outstanding - basic 137,726 138,318 140,636 Weighted average shares outstanding - diluted 138,476 139,266 141,251 Cash dividends per share$0.10 $0.10 $0.10 VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (In thousands) March 30, 2024 December 31, 2023 (Unaudited) Assets Current assets: Cash and cash equivalents$796,541 $972,719 Short-term investments 37,418 35,808 Accounts receivable, net 411,203 426,674 Inventories: Finished goods 166,684 167,083 Work in process 280,536 267,339 Raw materials 218,623 213,098 Total inventories 665,843 647,520 Prepaid expenses and other current assets 232,135 214,443 Total current assets 2,143,140 2,297,164 Property and equipment, at cost: Land 84,302 77,006 Buildings and improvements 744,328 719,387 Machinery and equipment 3,171,593 3,053,868 Construction in progress 300,714 290,593 Allowance for depreciation (2,857,344) (2,846,208) 1,443,593 1,294,646 Right of use assets 129,346 126,829 Deferred income taxes 135,786 137,394 Goodwill 238,890 201,416 Other intangible assets, net 73,444 72,333 Other assets 99,865 110,141 Total assets$4,264,064 $4,239,923 VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (continued) (In thousands) March 30, 2024 December 31, 2023 (Unaudited) Liabilities and equity Current liabilities: Trade accounts payable$197,513 $191,002 Payroll and related expenses 153,280 161,940 Lease liabilities 27,760 26,485 Other accrued expenses 258,773 239,350 Income taxes 72,018 73,098 Total current liabilities 709,344 691,875 Long-term debt less current portion 819,407 818,188 U.S. transition tax payable 47,027 47,027 Deferred income taxes 118,389 95,776 Long-term lease liabilities 103,594 102,830 Other liabilities 88,719 87,918 Accrued pension and other postretirement costs 190,356 195,503 Total liabilities 2,076,836 2,039,117 Equity: Vishay stockholders' equity Common stock 13,357 13,319 Class B convertible common stock 1,210 1,210 Capital in excess of par value 1,292,765 1,291,499 Retained earnings 1,058,531 1,041,372 Treasury stock (at cost) (174,194) (161,656)Accumulated other comprehensive income (loss) (9,685) 10,337 Total Vishay stockholders' equity 2,181,984 2,196,081 Noncontrolling interests 5,244 4,725 Total equity 2,187,228 2,200,806 Total liabilities and equity$4,264,064 $4,239,923 VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Statements of Cash Flows (Unaudited - In thousands) Three fiscal months edned March 30, 2024 April 1, 2023Operating activities Net earnings$31,443 $112,189 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 49,527 43,301 Gain on disposal of property and equipment (625) (64)Inventory write-offs for obsolescence 8,179 8,986 Stock compensation expense 5,344 2,965 Deferred income taxes 4,376 7,329 Other 426 (2,696)Changes in operating assets and liabilities (18,459) (42,117)Net cash provided by operating activities 80,211 129,893 Investing activities Purchase of property and equipment (53,084) (45,574)Proceeds from sale of property and equipment 751 326 Purchase and deposits for businesses, net of cash acquired (168,616) - Purchase of short-term investments (19,232) (41)Maturity of short-term investments 17,611 121,768 Other investing activities (1,219) (892)Net cash provided by (used in) investing activities (223,789) 75,587 Financing activities Net proceeds on revolving credit facility - 65,000 Dividends paid to common stockholders (12,542) (12,810)Dividends paid to Class B common stockholders (1,210) (1,210)Repurchase of common stock held in treasury (12,538) (20,173)Cash withholding taxes paid when shares withheld for vested equity awards (4,053) (3,653)Net cash provided by (used in) financing activities (30,343) 27,154 Effect of exchange rate changes on cash and cash equivalents (2,257) 4,075 Net increase (decrease) in cash and cash equivalents (176,178) 236,709 Cash and cash equivalents at beginning of period 972,719 610,825 Cash and cash equivalents at end of period$796,541 $847,534 VISHAY INTERTECHNOLOGY, INC. Reconciliation of Free Cash (Unaudited - In thousands) Fiscal quarters ended March 30, 2024 December 31, 2023 April 1, 2023Net cash provided by operating activities$80,211 $6,268 $129,893 Proceeds from sale of property and equipment 751 122 326 Less: Capital expenditures (53,084) (145,331) (45,574)Free cash$27,878 $(138,941) $84,645 VISHAY INTERTECHNOLOGY, INC. Reconciliation of EBITDA (Unaudited - In thousands) Fiscal quarters ended March 30, 2024 December 31, 2023 April 1, 2023 GAAP net earnings attributable to Vishay stockholders$30,924 $51,472 $111,781 Net earnings attributable to noncontrolling interests 519 482 408 Net earnings$31,443 $51,954 $112,189 Interest expense$6,496 $6,454 $5,120 Interest income (9,053) (9,934) (5,944)Income taxes 12,819 28,690 44,588 Depreciation and amortization 49,527 50,463 43,301 EBITDA$91,232 $127,627 $199,254 EBITDA margin** 12.2% 16.3% 22.9% ** EBITDA as a percentage of net revenues
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