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, PENNSYLVANIA – October 26, 2017 – 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.
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.
Vishay Intertechnology, Inc.
Senior Vice President, Corporate Communications