GlobeNewswire Inc | Feb 9, 2021 07:00AM EST

February 09, 2021

-- Revenues Q4 of $667 million; year 2020 of $2,502 million. -- Gross margin Q4 of 22.8%; year 2020 of 23.3%. -- Adjusted gross margin Q4 of 22.9%; year 2020 of 23.4%. -- Operating margin Q4 of 9.0%; year 2020 of 8.4%. -- Adjusted operating margin Q4 of 8.9%; year 2020 of 8.5%. -- EPS Q4 of $0.26; year 2020 of $0.85. -- Adjusted EPS Q4 of $0.28; year 2020 of $0.92. -- Free Cash for the year 2020 of $192 million. -- Guidance Q1 2021 of revenues $705 to $745 million and gross margins of 25.0% plus/minus 60 basis points at the exchange rates of Q4 2020.

MALVERN, Pa., Feb. 09, 2021 (GLOBE NEWSWIRE) -- Vishay Intertechnology, Inc. (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive components, today announced its results for the year and fiscal quarter ended December 31, 2020.

Revenues for the year ended December 31, 2020 were $2,501.9 million, compared to $2,668.3 million for the year ended December 31, 2019. Net earnings attributable to Vishay stockholders for the year ended December 31, 2020 were $122.9 million, or $0.85 per diluted share compared to $163.9 million, or $1.13 per diluted share for the year ended December 31, 2019.

Revenues for the fiscal quarter ended December 31, 2020 were $667.2 million, compared to $640.2 million for the fiscal quarter ended October 3, 2020, and $609.6 million for the fiscal quarter ended December 31, 2019. Net earnings attributable to Vishay stockholders for the fiscal quarter ended December 31, 2020 were $37.6 million, or $0.26 per diluted share, compared to $33.5 million, or $0.23 per diluted share for the fiscal quarter ended October 3, 2020, and $14.0 million, or $0.10 per diluted share for the fiscal quarter ended December 31, 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 $0.28 and $0.92 for the fiscal quarter and year ended December 31, 2020, respectively, $0.25 for the fiscal quarter ended October 3, 2020, and $0.13 and $1.26 for the fiscal quarter and year ended December 31, 2019, respectively.

Commenting on results for the year 2020, Dr. Gerald Paul, President and Chief Executive Officer stated, The year 2020 has been for Vishay and its business partners overshadowed by the global pandemic. From temporary plant shutdowns in Asia and temporary shortages in the early part of the year, to drastic reactions by automotive customers in the second quarter to a steep and broad recovery of orders since October, Vishay was able to defend efficiencies while minimizing fixed costs and then to quickly ramp back up again. During 2020, Vishay generated free cash flow of $192 million.

Dr. Paul continued, commenting on the results for the fourth quarter 2020, Revenues in the fourth quarter have been strong but Vishays incremental performance was negatively impacted by a lower than usual contributive margin in the quarter mainly caused by higher freight costs and a weaker dollar versus most currencies. The revenue increase quarter over quarter was driven by higher sales to automotive customers and to distribution. At the same time, inventories of Vishays products at distribution were reduced by a further $24 million, increasing again the inventory turns in all regions.

Commenting on the outlook Dr. Paul stated, For the first quarter 2021, based on the current order intake and Vishays increased 13-week backlog, we guide for revenues in the range of $705 to $745 million at a gross margin of 25.0% plus/minus 60 basis points, assuming the same exchange rates versus the dollar as in the fourth quarter.

A conference call to discuss Vishays fourth quarter and full yearfinancial results is scheduled for Tuesday, February 9, 2021 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) and the access code is 4219657.

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, February 9, 2021 through 11:59 p.m. ET on Sunday, February 24. 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 4219657.

About VishayVishay manufactures one of the worlds 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 isThe DNA of tech. Vishay Intertechnology, Inc. is a Fortune 1,000 Company listed on the NYSE (VSH). More on Vishay atwww.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; manufacturing or supply chain interruptions or changes in customer demand because of COVID-19; 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; 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 techis a trademark of Vishay Intertechnology.

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

VISHAY INTERTECHNOLOGY, INC. Summary of Operations (In thousands, except per share amounts) Years ended December 31, December 31, 2020 2019 (Unaudited) Net revenues $ 2,501,898 $ 2,668,305 Costs of products sold* 1,919,995 1,997,105 Gross profit 581,903 671,200 Gross margin 23.3 % 25.2 % Selling, general, and administrative 371,450 384,631 expenses*Restructuring and severance costs 743 24,139 Operating income 209,710 262,430 Operating margin 8.4 % 9.8 % Other income (expense): Interest expense (31,555 ) (33,683 )Other (11,754 ) (419 )Loss on early extinguishment of debt (8,073 ) (2,030 )Total other income (expense) - net (51,382 ) (36,132 ) Income before taxes 158,328 226,298 Income tax expense 34,545 61,508 Net earnings 123,783 164,790 Less: net earnings attributable to 860 854 noncontrolling interests Net earnings attributable to Vishay $ 122,923 $ 163,936 stockholders Basic earnings per share attributable to $ 0.85 $ 1.13 Vishay stockholders Diluted earnings per share attributable to $ 0.85 $ 1.13 Vishay stockholders Weighted average shares outstanding - basic 144,836 144,608 Weighted average shares outstanding - 145,228 145,136 diluted Cash dividends per share $ 0.38 $ 0.37 * Includes incremental costs of products sold and selling, general, andadministrative expenses (benefits) separable from normal operations directlyattributable to the COVID-19 pandemic of $4,563 and $(1,451), respectively.



VISHAY INTERTECHNOLOGY, INC. Summary of Operations (Unaudited - In thousands, except per share amounts) Fiscal quarters ended December 31, October 3, December 31, 2020 2020 2019 Net revenues $ 667,180 $ 640,160 $ 609,577 Costs of products sold* 514,896 488,451 474,216 Gross profit 152,284 151,709 135,361 Gross margin 22.8 % 23.7 % 22.2 % Selling, general, and 92,272 90,219 94,299 administrative expenses**Restructuring and severance - - 16,884 costsOperating income 60,012 61,490 24,178 Operating margin 9.0 % 9.6 % 4.0 % Other income (expense): Interest expense (7,159 ) (7,414 ) (8,523 )Other (5,570 ) (4,898 ) (3,652 )Loss on early extinguishment of (553 ) (3,454 ) (723 )debtTotal other income (expense) - (13,282 ) (15,766 ) (12,898 )net Income before taxes 46,730 45,724 11,280 Income tax expense 8,887 12,063 (2,869 ) Net earnings 37,843 33,661 14,149 Less: net earnings attributable 276 177 187 to noncontrolling interests Net earnings attributable to $ 37,567 $ 33,484 $ 13,962 Vishay stockholders Basic earnings per shareattributable to Vishay $ 0.26 $ 0.23 $ 0.10 stockholders Diluted earnings per shareattributable to Vishay $ 0.26 $ 0.23 $ 0.10 stockholders Weighted average shares 144,855 144,854 144,628 outstanding - basic Weighted average shares 145,251 145,197 145,202 outstanding - diluted Cash dividends per share $ 0.095 $ 0.095 $ 0.095 * Includes incremental costs of products sold separable from normal operationsdirectly attributable to the COVID-19 pandemic of $268 and $242 for the fiscalquarters ended December 31, 2020 and October 3, 2020, respectively.** Includes incremental selling, general, and administrative expenses(benefits) separable from normal operations directly attributable to theCOVID-19 pandemic of $(580) and $(441), for the fiscal quarters ended December31, 2020 and October 3, 2020, respectively.



VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (In thousands) December 31, 2020 December 31, 2019 (Unaudited) Assets Current assets: Cash and cash equivalents $ 619,874 $ 694,133 Short-term investments 158,476 108,822 Accounts receivable, net 338,632 328,187 Inventories: Finished goods 120,792 122,466 Work in process 201,259 187,354 Raw materials 126,200 121,860 Total inventories 448,251 431,680 Prepaid expenses and other current 132,103 141,294 assetsTotal current assets 1,697,336 1,704,116 Property and equipment, at cost: Land 76,231 75,011 Buildings and improvements 641,041 585,064 Machinery and equipment 2,732,771 2,606,355 Construction in progress 86,520 110,722 Allowance for depreciation (2,593,398 ) (2,425,627 ) 943,165 951,525 Right of use assets 102,440 93,162 Goodwill 158,183 150,642 Other intangible assets, net 66,795 60,659 Other assets 186,554 160,671 Total assets $ 3,154,473 $ 3,120,775



VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (continued)(In thousands) December 31, December 31, 2020 2019 (Unaudited) Liabilities and equity Current liabilities: Notes payable to banks $ - $ 2 Trade accounts payable 196,203 173,915 Payroll and related expenses 141,034 122,100 Lease liabilities 22,074 20,217 Other accrued expenses 182,642 186,463 Income taxes 20,470 17,731 Total current liabilities 562,423 520,428 Long-term debt less current portion 394,886 499,147 U.S. transition tax payable 125,438 140,196 Deferred income taxes 1,852 22,021 Long-term lease liabilities 86,220 78,511 Other liabilities 104,356 100,207 Accrued pension and other postretirement 300,113 272,402 costsTotal liabilities 1,575,288 1,632,912 Redeemable convertible debentures 170 174 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 1,409,200 1,425,170 Retained earnings 138,990 72,180 Accumulated other comprehensive income 13,559 (26,646 )(loss)Total Vishay stockholders' equity 1,576,215 1,485,149 Noncontrolling interests 2,800 2,540 Total equity 1,579,015 1,487,689 Total liabilities, temporary equity, and $ 3,154,473 $ 3,120,775 equity



VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Statements of Cash Flows(In thousands) Years ended December 31, December 31, 2020 2019 (Unaudited) Operating activities Net earnings $ 123,783 $ 164,790 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 166,230 164,461 (Gain) loss on disposal of property and 157 (157 )equipmentAccretion of interest on convertible debt 13,161 14,146 instrumentsInventory write-offs for obsolescence 22,730 26,494 Pensions and other postretirement benefits, 2,864 (552 )net of contributionsLoss on early extinguishment of debt 8,073 2,030 Deferred income taxes (12,141 ) (23,009 )Other 3,304 13,341 Change in U.S. transition tax liability (14,757 ) (14,757 )Change in repatriation tax liability (16,258 ) (38,814 )Changes in operating assets and liabilities, 17,792 (11,529 )net of effects of businesses acquiredNet cash provided by operating activities 314,938 296,444 Investing activities Purchase of property and equipment (123,599 ) (156,641 )Proceeds from sale of property and equipment 403 577 Purchase of businesses, net of cash acquired (25,852 ) (11,862 )Purchase of short-term investments (293,087 ) (111,631 )Maturity of short-term investments 250,580 81,012 Other investing activities (529 ) 3,587 Net cash used in investing activities (192,084 ) (194,958 ) Financing activities Issuance costs - (5,394 )Repurchase of convertible debt instruments (151,683 ) (27,863 )Net changes in short-term borrowings (114 ) (16 )Dividends paid to common stockholders (50,372 ) (48,968 )Dividends paid to Class B common stockholders (4,597 ) (4,476 )Distributions to noncontrolling interests (600 ) (600 )Cash withholding taxes paid when shares (2,016 ) (2,708 )withheld for vested equity awardsNet cash used in financing activities (209,382 ) (90,025 )Effect of exchange rate changes on cash and 12,269 (3,360 )cash equivalents Net increase (decrease) in cash and cash (74,259 ) 8,101 equivalents Cash and cash equivalents at beginning of 694,133 686,032 periodCash and cash equivalents at end of period $ 619,874 $ 694,133



VISHAYINTERTECHNOLOGY, INC.Reconciliationof Adjusted Earnings PerShare(Unaudited - Inthousands, except per shareamounts) Fiscal quarters ended Years ended December 31, October 3, December 31, December 31, December 31, 2020 2020 2019 2020 2019 GAAP netearningsattributable to $ 37,567 $ 33,484 $ 13,962 $ 122,923 $ 163,936 Vishaystockholders Reconcilingitems affecting gross profit:Impact of theCOVID-19 $ 268 $ 242 $ - $ 4,563 $ - pandemic Otherreconcilingitems affecting operatingincome:Restructuringand severance $ - $ - $ 16,884 $ 743 $ 24,139 costsImpact of theCOVID-19 (580 ) (441 ) - (1,451 ) - pandemic Reconcilingitems affecting other income(expense):Loss on earlyextinguishment $ 553 $ 3,454 $ 723 $ 8,073 $ 2,030 of debt Reconcilingitems affecting tax expense(benefit):Change indeferred taxesdue to early $ (217 ) $ - $ (289 ) $ (1,563 ) $ (1,601 )extinguishmentof debtEffects of cashrepatriation - - (11,554 ) (190 ) (9,583 )programEffects ofchanges in 3,751 - 2,831 3,751 2,831 uncertain taxpositionsEffects oftax-basis - - - - 7,554 foreign exchangegainTax effects ofpre-tax items (12 ) (716 ) (4,277 ) (2,799 ) (6,211 )above Adjusted net $ 41,330 $ 36,023 $ 18,280 $ 134,050 $ 183,095 earnings Adjustedweighted average 145,251 145,197 145,202 145,228 145,136 diluted sharesoutstanding Adjustedearnings per $ 0.28 $ 0.25 $ 0.13 $ 0.92 $ 1.26 diluted share



VISHAYINTERTECHNOLOGY, INC.Reconciliation of Free Cash(Unaudited - In thousands) Fiscal quarters ended Years ended December 31, October 3, December 31, December 31, December 31, 2020 2020 2019 2020 2019Net cashprovided by $ 125,699 $ 64,330 $ 84,423 $ 314,938 $ 296,444 operatingactivitiesProceeds fromsale of property 110 63 91 403 577 and equipmentLess: Capital (52,798 ) (21,969 ) (56,374 ) (123,599 ) (156,641 )expendituresFree cash $ 73,011 $ 42,424 $ 28,140 $ 191,742 $ 140,380



VISHAYINTERTECHNOLOGY, INC.Reconciliationof EBITDA and Adjusted EBITDA(Unaudited - In thousands) Fiscal quarters ended Years ended December 31, October 3, December 31, December 31, December 31, 2020 2020 2019 2020 2019 GAAP netearningsattributable to $ 37,567 $ 33,484 $ 13,962 $ 122,923 $ 163,936 VishaystockholdersNet earningsattributable to 276 177 187 860 854 noncontrollinginterestsNet earnings $ 37,843 $ 33,661 $ 14,149 $ 123,783 $ 164,790 Interest expense $ 7,159 $ 7,414 $ 8,523 $ 31,555 $ 33,683 Interest income (385 ) (514 ) (1,734 ) (3,709 ) (8,445 )Income taxes 8,887 12,063 (2,869 ) 34,545 61,508 Depreciation and 42,454 41,618 42,159 166,230 164,461 amortizationEBITDA $ 95,958 $ 94,242 $ 60,228 $ 352,404 $ 415,997 Reconciling itemsImpact of theCOVID-19 $ (312 ) $ (199 ) $ - $ 3,112 $ - pandemicRestructuringand severance - - 16,884 743 24,139 costsLoss on earlyextinguishment 553 3,454 723 8,073 2,030 of debt Adjusted EBITDA $ 96,199 $ 97,497 $ 77,835 $ 364,332 $ 442,166 Adjusted EBITDA 14.4 % 15.2 % 12.8 % 14.6 % 16.6 %margin** ** AdjustedEBITDA as a percentage ofnet revenues