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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934


  Date of Report (date of earliest event reported)  May 8, 2024
   

Vishay Intertechnology, Inc.
 
(Exact name of registrant as specified in its charter)


Delaware
1-7416
38-1686453
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(I.R.S. Employer Identification Number)

   
63 Lancaster Avenue
Malvern, PA
19355-2143
(Address of Principal Executive Offices)
Zip Code
 
Registrant's telephone number, including area code    610-644-1300

 
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company
☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

 
Title of each class
 
Trading symbol
 
Name of exchange on which registered
Common stock, par value $0.10 per share
VSH
 
New York Stock Exchange

Item 2.02 – Results of Operations and Financial Condition

On May 8, 2024, Vishay Intertechnology, Inc. issued a press release announcing its financial results for the fiscal quarter ended March 30, 2024.  A copy of the press release is attached as Exhibit 99.1 to this report.  

Item 9.01 – Financial Statements and Exhibits
 
(d) Exhibits

Exhibit No.
 
Description
 
 
  
 
 
   104   Cover Page Interactive Data File (embedded within the Inline XBRL document).
 


 
Signature
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: May 8, 2024

 
VISHAY INTERTECHNOLOGY, INC.
  
       
 
By:
   /s/ David L. Tomlison
  
       
 
Name:
  
David L. Tomlinson
 
Title:
  
Senior Vice President – Chief Accounting Officer

Exhibit 99.1



Vishay Intertechnology Reports Fiscal First Quarter 2024 Results

Malvern, PA, May 8, 2024 – 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 million
•
Gross margin was 22.8% and included the negative impact of 74 basis points related to the addition of Newport
•
EPS of $0.22
•
1Q 2024 book-to-bill of 0.82 with book-to-bill of 0.73 for semiconductors and 0.91 for passive components
•
Backlog 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 Outlook
For 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 Call
A 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 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 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 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
  
   
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 ended
  
   
March 30, 2024
    
April 1, 2023
  
Operating 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, 2023
  
Net 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