Release Details

Vishay Intertechnology Reports Fiscal Fourth Quarter and Full Year 2023 Results

February 7, 2024
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MALVERN, Pa., Feb. 07, 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 fourth quarter and year ended December 31, 2023.

Highlights

  • 4Q 2023 revenues of $785.2 million
  • 4Q 2023 EPS of $0.37
  • 4Q 2023 book-to-bill of 0.75
  • Backlog at quarter end was 5.3 months
  • Returned a total of $34.8 million to stockholders
  • FY 2023 capex of $329.4 million
  • FY 2023 free cash flow of $37.4 million
  • FY 2023 total stockholder return of $134.3 million

“For the fourth quarter, the trends in inventory adjustments, contracting lead times and softened demand in industrial end markets became more apparent. While customers continue to digest higher inventory levels, we proceeded to implement our strategy to broaden participation with our distribution partners,” said Joel Smejkal, President and Chief Executive Officer.

“Looking ahead, input from our customers and distribution partners suggest we will be dealing with an inventory digestion for the first half of the year, although some end markets are expected to rebound sooner. During this period of inventory adjustment, our strong balance sheet and liquidity gives us the resources to continue investing in incremental capacity and preparing Vishay for the long-term demand trends of e-mobility, sustainability and connectivity. Near term we intend to advance our distribution strategy which positions us to timely benefit from a rebound in demand,” concluded Mr. Smejkal.

1Q 2024 Outlook
For the first quarter of 2024, management expects revenues in the range of $735 million +/- $20 million and a gross profit margin in the range of 24.0% +/- 50 basis points.

Conference Call
A conference call to discuss Vishay’s fourth quarter financial results is scheduled for Wednesday, February 7, 2024 at 9:00 a.m. ET. To participate in the live conference call, please pre-register at https://register.vevent.com/register/BI3f265da18e964024a9221557bd90d469. Upon registering, you will be emailed a dial-in number, and unique PIN.

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 Vishay
Vishay 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 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 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; the timing of the Newport wafer fab acquisition; that the Newport wafer fab acquisition may not be consummated, including as a result of any of the conditions precedent (including the failure to obtain any required approvals or consents); global market downturn conditions and volatilities impacting the completion of the acquisition; that the 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 Henrici
Executive Vice President, Corporate Development
+1-610-644-1300

VISHAY INTERTECHNOLOGY, INC.          
Summary of Operations          
(Unaudited - In thousands, except per share amounts)          
           
  Fiscal quarters ended
  December 31, 2023   September 30, 2023   December 31, 2022
           
Net revenues $ 785,236     $ 853,653     $ 855,298  
Costs of products sold   584,572       616,010       606,178  
Gross profit   200,664       237,643       249,120  
Gross margin   25.6 %     27.8 %     29.1 %
           
Selling, general, and administrative expenses   122,834       122,513       113,812  
Operating income   77,830       115,130       135,308  
Operating margin   9.9 %     13.5 %     15.8 %
           
Other income (expense):          
Interest expense   (6,454 )     (7,153 )     (4,490 )
Loss on early extinguishment of debt   -       (18,874 )     -  
Other   9,268       7,409       (2,618 )
Total other income (expense) - net   2,814       (18,618 )     (7,108 )
           
Income before taxes   80,644       96,512       128,200  
           
Income tax expense   28,690       30,557       54,999  
           
Net earnings   51,954       65,955       73,201  
           
Less: net earnings attributable to noncontrolling interests   482       426       413  
           
Net earnings attributable to Vishay stockholders $ 51,472     $ 65,529     $ 72,788  
           
Basic earnings per share attributable to Vishay stockholders $ 0.37     $ 0.47     $ 0.51  
           
Diluted earnings per share attributable to Vishay stockholders $ 0.37     $ 0.47     $ 0.51  
           
Weighted average shares outstanding - basic   138,318       139,083       141,643  
           
Weighted average shares outstanding - diluted   139,266       140,001       142,247  
           
Cash dividends per share $ 0.10     $ 0.10     $ 0.10  

 

 

VISHAY INTERTECHNOLOGY, INC.      
Summary of Operations      
(In thousands, except per share amounts)      
       
  Years ended
  December 31, 2023   December 31, 2022
  (unaudited)    
       
Net revenues $ 3,402,045     $ 3,497,401  
Costs of products sold*   2,427,552       2,438,412  
Gross profit   974,493       1,058,989  
Gross margin   28.6 %     30.3 %
       
Selling, general, and administrative expenses*   488,349       443,503  
Operating income   486,144       615,486  
Operating margin   14.3 %     17.6 %
       
Other income (expense):      
Interest expense   (25,131 )     (17,129 )
Loss on early extinguishment of debt   (18,874 )     -  
Other   25,263       (4,852 )
Total other income (expense) - net   (18,742 )     (21,981 )
       
Income before taxes   467,402       593,505  
       
Income tax expense   141,889       163,022  
       
Net earnings   325,513       430,483  
       
Less: net earnings attributable to noncontrolling interests   1,693       1,673  
       
Net earnings attributable to Vishay stockholders $ 323,820     $ 428,810  
       
Basic earnings per share attributable to Vishay stockholders $ 2.32     $ 2.99  
       
Diluted earnings per share attributable to Vishay stockholders $ 2.31     $ 2.98  
       
Weighted average shares outstanding - basic   139,447       143,399  
       
Weighted average shares outstanding - diluted   140,246       143,915  
       
Cash dividends per share $ 0.40     $ 0.40  
       
* The year ended December 31, 2022 includes incremental costs of products sold and selling, general, and administrative expenses separable from normal operations directly attributable to the COVID-19 pandemic of $6,661 and $546, respectively.

 

 

VISHAY INTERTECHNOLOGY, INC.      
Consolidated Condensed Balance Sheets      
(In thousands)      
       
  December 31, 2023   December 31, 2022
  (Unaudited)    
Assets      
Current assets:      
Cash and cash equivalents $ 972,719     $ 610,825  
Short-term investments   35,808       305,272  
Accounts receivable, net   426,674       416,178  
Inventories:      
Finished goods   167,083       156,234  
Work in process   267,339       261,345  
Raw materials   213,098       201,300  
Total inventories   647,520       618,879  
       
Prepaid expenses and other current assets   214,443       170,056  
Total current assets   2,297,164       2,121,210  
       
Property and equipment, at cost:      
Land   77,006       75,907  
Buildings and improvements   719,387       658,829  
Machinery and equipment   3,053,868       2,857,636  
Construction in progress   290,593       243,038  
Allowance for depreciation   (2,846,208 )     (2,704,951 )
    1,294,646       1,130,459  
       
Right of use assets   126,829       131,193  
Deferred income taxes   137,394       104,667  
Goodwill   201,416       201,432  
Other intangible assets, net   72,333       77,896  
Other assets   110,141       98,796  
Total assets $ 4,239,923     $ 3,865,653  

 

 

VISHAY INTERTECHNOLOGY, INC.      
Consolidated Condensed Balance Sheets (continued)    
(In thousands)      
       
  December 31, 2023   December 31, 2022
  (Unaudited)    
       
Liabilities and equity      
Current liabilities:      
Trade accounts payable $ 191,002     $ 189,099  
Payroll and related expenses   161,940       166,079  
Lease liabilities   26,485       25,319  
Other accrued expenses   239,350       261,606  
Income taxes   73,098       84,155  
Total current liabilities   691,875       726,258  
       
Long-term debt less current portion   818,188       500,937  
U.S. transition tax payable   47,027       83,010  
Deferred income taxes   95,776       117,183  
Long-term lease liabilities   102,830       108,493  
Other liabilities   87,918       92,530  
Accrued pension and other postretirement costs   195,503       187,092  
Total liabilities   2,039,117       1,815,503  
       
Equity:      
Vishay stockholders' equity      
Common stock   13,319       13,291  
Class B convertible common stock   1,210       1,210  
Capital in excess of par value   1,291,499       1,352,321  
Retained earnings   1,041,372       773,228  
Treasury stock (at cost)   (161,656 )     (82,972 )
Accumulated other comprehensive income (loss)   10,337       (10,827 )
Total Vishay stockholders' equity   2,196,081       2,046,251  
Noncontrolling interests   4,725       3,899  
Total equity   2,200,806       2,050,150  
Total liabilities and equity $ 4,239,923     $ 3,865,653  

 

 

VISHAY INTERTECHNOLOGY, INC.      
Consolidated Condensed Statements of Cash Flows      
(In thousands)  
  Years ended
  December 31, 2023   December 31, 2022
  (unaudited)    
Operating activities      
Net earnings $ 325,513     $ 430,483  
Adjustments to reconcile net earnings to net cash provided by operating activities:      
Depreciation and amortization   184,373       163,991  
(Gain) loss on disposal of property and equipment   (554 )     (455 )
Inventory write-offs for obsolescence   37,426       26,898  
Pensions and other postretirement benefits, net of contributions   (9,559 )     (615 )
Stock compensation expense   16,532       6,545  
Loss on early extinguishment of debt   18,874       -  
Deferred income taxes   36,783       38,677  
Other   9,442       835  
Change in U.S. transition tax liability   (27,670 )     (14,757 )
Change in repatriation tax liability   (63,600 )     (25,201 )
Changes in operating assets and liabilities   (161,857 )     (142,113 )
Net cash provided by operating activities   365,703       484,288  
       
Investing activities      
Purchase of property and equipment   (329,410 )     (325,308 )
Proceeds from sale of property and equipment   1,156       1,198  
Purchase and deposits for businesses, net of cash acquired   (13,753 )     (50,000 )
Purchase of short-term investments   (117,523 )     (285,956 )
Maturity of short-term investments   387,898       132,901  
Other investing activities   (1,219 )     (1,766 )
Net cash used in investing activities   (72,851 )     (528,931 )
       
Financing activities      
Proceeds from long-term borrowings   750,000       -  
Repurchase of convertible debt instruments   (386,745 )     -  
Net proceeds (payments) on revolving credit facility   (42,000 )     42,000  
Debt issuance costs   (26,823 )     -  
Cash paid for capped call   (94,200 )     -  
Dividends paid to common stockholders   (50,787 )     (52,348 )
Dividends paid to Class B common stockholders   (4,839 )     (4,839 )
Repurchase of common stock held in treasury   (78,684 )     (82,972 )
Distributions to noncontrolling interests   (867 )     (741 )
Cash withholding taxes paid when shares withheld for vested equity awards   (3,994 )     (2,123 )
Net cash provided by (used in) financing activities   61,061       (101,023 )
Effect of exchange rate changes on cash and cash equivalents   7,981       (17,617 )
       
Net increase (decrease) in cash and cash equivalents   361,894       (163,283 )
       
Cash and cash equivalents at beginning of period   610,825       774,108  
Cash and cash equivalents at end of period $ 972,719     $ 610,825  

 

 

VISHAY INTERTECHNOLOGY, INC.                  
Reconciliation of Adjusted Earnings Per Share                  
(Unaudited - In thousands, except per share amounts)                  
  Fiscal quarters ended   Years ended
  December 31, 2023   September 30, 2023   December 31, 2022   December 31, 2023   December 31, 2022
                   
GAAP net earnings attributable to Vishay stockholders $ 51,472   $ 65,529     $ 72,788     $ 323,820     $ 428,810  
                   
Reconciling items affecting gross profit:                  
Impact of the COVID-19 pandemic $ -   $ -     $ -     $ -     $ 6,661  
                   
Other reconciling items affecting operating income:                  
Impact of the COVID-19 pandemic $ -   $ -     $ -     $ -     $ 546  
                   
Reconciling items affecting other income (expense):                  
Loss on early extinguishment of debt $ -   $ 18,874     $ -     $ 18,874     $ -  
                   
Reconciling items affecting tax expense (benefit):                  
Effect of changes in uncertain tax positions $ -   $ -     $ -     $ -     $ (5,941 )
Effects of changes in valuation allowances   -     -       (33,669 )     -       (33,669 )
Effect of change in indefinite reversal assertion   -     -       59,642       -       59,642  
Tax effects of pre-tax items above   -     (498 )     -       (498 )     (1,802 )
                   
Adjusted net earnings $ 51,472   $ 83,905     $ 98,761     $ 342,196     $ 454,247  
                   
Adjusted weighted average diluted shares outstanding   139,266     140,001       142,247       140,246       143,915  
                   
Adjusted earnings per diluted share $ 0.37   $ 0.60     $ 0.69     $ 2.44     $ 3.16  

 

 

VISHAY INTERTECHNOLOGY, INC.                  
Reconciliation of Free Cash                  
(Unaudited - In thousands)                  
  Fiscal quarters ended   Years ended
  December 31, 2023   September 30, 2023   December 31, 2022   December 31, 2023   December 31, 2022
Net cash provided by operating activities $ 6,268     $ 122,303       166,496     $ 365,703     $ 484,288  
Proceeds from sale of property and equipment   122       21       726       1,156       1,198  
Less: Capital expenditures   (145,331 )     (66,829 )     (153,133 )     (329,410 )     (325,308 )
Free cash $ (138,941 )   $ 55,495     $ 14,089     $ 37,449     $ 160,178  

 

 

VISHAY INTERTECHNOLOGY, INC.                  
Reconciliation of EBITDA and Adjusted EBITDA                  
(Unaudited - In thousands)                  
  Fiscal quarters ended   Years ended
  December 31, 2023   September 30, 2023   December 31, 2022   December 31, 2023   December 31, 2022
                   
GAAP net earnings attributable to Vishay stockholders $ 51,472     $ 65,529     $ 72,788     $ 323,820     $ 428,810  
Net earnings attributable to noncontrolling interests   482       426       413       1,693       1,673  
Net earnings $ 51,954     $ 65,955     $ 73,201     $ 325,513     $ 430,483  
                   
Interest expense $ 6,454     $ 7,153     $ 4,490     $ 25,131     $ 17,129  
Interest income   (9,934 )     (9,183 )     (4,374 )     (31,353 )     (7,560 )
Income taxes   28,690       30,557       54,999       141,889       163,022  
Depreciation and amortization   50,463       46,216       42,690       184,373       163,991  
EBITDA $ 127,627     $ 140,698     $ 171,006     $ 645,553     $ 767,065  
                   
Reconciling items                  
Impact of the COVID-19 pandemic $ -     $ -     $ -     $ -     $ 7,207  
Loss on early extinguishment of debt   -       18,874       -       18,874       -  
                   
Adjusted EBITDA $ 127,627     $ 159,572     $ 171,006     $ 664,427     $ 774,272  
                   
Adjusted EBITDA margin**   16.3 %     18.7 %     20.0 %     19.5 %     22.1 %
                   
** Adjusted EBITDA as a percentage of net revenues                  

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Source: Vishay Intertechnology, Inc.