GlobeNewswire Inc | May 4, 2021 07:10AM EDT

May 04, 2021

-- Revenues Q1 of $765 million -- Gross margin Q1 of 26.5% -- Operating margin Q1 of 12.7% -- EPS Q1 of $0.49; adjusted EPS $0.46 -- Free Cash for the trailing 12 months Q1 of $211 million -- Guidance Q2 for revenues of $790 to $830 million at a gross margin of 27.3% plus/minus 60 basis points at Q1 exchange rates.

MALVERN, Pa., May 04, 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 fiscal quarter ended April 3, 2021.

Revenues for the fiscal quarter ended April 3, 2021 were $764.6 million, compared to $667.2 million for the fiscal quarter ended December 31, 2020, and $612.8 million for the fiscal quarter ended April 4, 2020. Net earnings attributable to Vishay stockholders for the fiscal quarter ended April 3, 2021 were $71.4 million, or $0.49 per diluted share, compared to $37.6 million, or $0.26 per diluted share, for the fiscal quarter ended December 31, 2020, and $27.2 million, or $0.19 per diluted share, for the fiscal quarter ended April 4, 2020.

As summarized on the attached reconciliation schedule, all periods presented include items affecting comparability. Adjusted earnings per diluted share, which exclude certain items net of tax and unusual tax items, were $0.46, $0.28, and $0.21 for the fiscal quarters ended April 3, 2021, December 31, 2020, and April 4, 2020, respectively.

Commenting on results for the first quarter 2021, Dr. Gerald Paul, President and Chief Executive Officer stated, In the first quarter of 2021, the steep upturn of our business that began in October of last year accelerated even further. Quarterly orders and backlog reached all-time highs. Sales in the first quarter of Vishays products from distribution to end customers increased 21% over the fourth quarter of last year and inventories of our products at distribution were reduced by $34 million. Virtually all markets are in excellent shape and supply chains have become rather depleted.

Dr. Paul continued, Over the next few years, we expect to experience higher growth rates than over the last decade. This expectation is based upon accelerated electrification, such as factory automation, electrical vehicles, and 5G infrastructure. To be well positioned to service our customers and to fully participate in these growing markets, Vishay intends to increase its capital expenditures for expansion in the mid-term. For the year 2021, we expect to invest approximately $225 million in capital expenditures.

Commenting on the outlook Dr. Paul stated, For the second quarter 2021 we guide for revenues in the range of $790 to $830 million at a gross margin of 27.3% plus/minus 60 basis points at the exchange rates of Q1 2021.

A conference call to discuss Vishays first quarter financial results is scheduled for Tuesday, May 4, 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 6669583.

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 12:05 p.m. ET on Tuesday, May 4, 2021 through 11:59 p.m. ET on Wednesday, May 19 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 6669583.

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 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 statements with respect to forecasted revenues, margins, inventories, product demand, anticipated areas of growth, market segment performance, capital expenditures, 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 tech is 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 (Unaudited - In thousands, except per share amounts) Fiscal quarters ended April 3, 2021 December 31, April 4, 2020 2020 Net revenues $ 764,632 $ 667,180 $ 612,841 Costs of products sold* 561,683 514,896 465,601 Gross profit 202,949 152,284 147,240 Gross margin 26.5 % 22.8 % 24.0 % Selling, general, and 105,685 92,272 99,832 administrative expenses**Operating income 97,264 60,012 47,408 Operating margin 12.7 % 9.0 % 7.7 % Other income (expense): Interest expense (4,376 ) (7,159 ) (8,552 ) Loss on early extinguishment - (553 ) (2,920 ) of debtOther (5,731 ) (5,570 ) 198 Total other income (expense) (10,107 ) (13,282 ) (11,274 ) - net Income before taxes 87,157 46,730 36,134 Income tax expense 15,514 8,887 8,750 Net earnings 71,643 37,843 27,384 Less: net earningsattributable to 208 276 165 noncontrolling interests Net earnings attributable to $ 71,435 $ 37,567 $ 27,219 Vishay stockholders Basic earnings per shareattributable to Vishay $ 0.49 $ 0.26 $ 0.19 stockholders Diluted earnings per shareattributable to Vishay $ 0.49 $ 0.26 $ 0.19 stockholders Weighted average shares 144,968 144,855 144,792 outstanding - basic Weighted average shares 145,463 145,251 145,295 outstanding - diluted Cash dividends per share $ 0.095 $ 0.095 $ 0.095 * Includes incremental costs of products sold separable from normaloperations directly attributable to the COVID-19 pandemic of $268 and $3,130 for the fiscal quarters ended December 31, 2020 and April 4, 2020,respectively.** Includes incremental selling, general, and administrative expenses(benefits) separable from normal operations directly attributable to the COVID-19 pandemic of $(580) and $317, for the fiscal quarters ended December31, 2020 and April 4, 2020, respectively.

VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (In thousands) April 3, 2021 December 31, 2020 (Unaudited) Assets Current assets: Cash and cash equivalents $ 643,847 $ 619,874 Short-term investments 137,348 158,476 Accounts receivable, net 385,238 338,632 Inventories: Finished goods 129,310 120,792 Work in process 212,273 201,259 Raw materials 132,373 126,200 Total inventories 473,956 448,251 Prepaid expenses and other current 140,536 132,103 assetsTotal current assets 1,780,925 1,697,336 Property and equipment, at cost: Land 75,339 76,231 Buildings and improvements 629,550 641,041 Machinery and equipment 2,705,346 2,732,771 Construction in progress 94,981 86,520 Allowance for depreciation (2,587,948 ) (2,593,398 ) 917,268 943,165 Right of use assets 98,001 102,440 Goodwill 157,693 158,183 Other intangible assets, net 64,123 66,795 Other assets 192,552 186,554 Total assets $ 3,210,562 $ 3,154,473

VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (continued) (In thousands) April 3, 2021 December 31, 2020 (Unaudited) Liabilities and equity Current liabilities: Trade accounts payable $ 206,741 $ 196,203 Payroll and related expenses 136,069 141,034 Lease liabilities 21,275 22,074 Other accrued expenses 197,246 182,642 Income taxes 26,715 20,470 Total current liabilities 588,046 562,423 Long-term debt less current portion 453,213 394,886 U.S. transition tax payable 125,438 125,438 Deferred income taxes 1,856 1,852 Long-term lease liabilities 82,260 86,220 Other liabilities 103,881 104,356 Accrued pension and other postretirement 287,407 300,113 costsTotal liabilities 1,642,101 1,575,288 Redeemable convertible debentures - 170 Equity: Vishay stockholders' equity Common stock 13,271 13,256 Class B convertible common stock 1,210 1,210 Capital in excess of par value 1,345,284 1,409,200 Retained earnings 217,214 138,990 Accumulated other comprehensive income (11,526 ) 13,559 (loss)Total Vishay stockholders' equity 1,565,453 1,576,215 Noncontrolling interests 3,008 2,800 Total equity 1,568,461 1,579,015 Total liabilities, temporary equity, and $ 3,210,562 $ 3,154,473 equity

VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Statements of Cash Flows(Unaudited - In thousands) Three fiscal months ended April 3, 2021 April 4, 2020 (Unaudited) Operating activities Net earnings $ 71,643 $ 27,384 Adjustments to reconcile net earnings to net cash provided by operating activities:Depreciation and amortization 42,146 41,520 Gain on disposal of property and (177 ) (45 ) equipmentAccretion of interest on - 3,637 convertible debt instrumentsInventory write-offs for 4,784 5,643 obsolescenceLoss on early extinguishment of - 2,920 debtDeferred income taxes 901 (3,517 ) Other 5,728 3,524 Changes in operating assets andliabilities, net of effects of businesses (67,703 ) (46,588 ) acquiredNet cash provided by operating activities 57,322 34,478 Investing activities Purchase of property and equipment (28,527 ) (24,328 ) Proceeds from sale of property and equipment 200 53 Purchase of short-term investments (12,853 ) (35,463 ) Maturity of short-term investments 29,519 - Other investing activities 347 (1,507 ) Net cash used in investing activities (11,314 ) (61,245 ) Financing activities Repurchase of convertible debt instruments (300 ) (19,849 ) Net proceeds (payments) on revolving credit - 54,000 linesNet changes in short-term borrowings - 85 Dividends paid to common stockholders (12,608 ) (12,592 ) Dividends paid to Class B common stockholders (1,149 ) (1,149 ) Cash withholding taxes paid when shares (1,963 ) (1,991 ) withheld for vested equity awardsNet cash provided by (used in) financing (16,020 ) 18,504 activitiesEffect of exchange rate changes on cash and (6,015 ) (5,167 ) cash equivalents Net increase (decrease) in cash and cash 23,973 (13,430 ) equivalents Cash and cash equivalents at beginning of 619,874 694,133 periodCash and cash equivalents at end of period $ 643,847 $ 680,703

VISHAY INTERTECHNOLOGY, INC. Reconciliation of Adjusted Earnings Per Share(Unaudited - In thousands, except per share amounts) Fiscal quarters ended April 3, 2021 December 31, April 4, 2020 2020 GAAP net earningsattributable to Vishay $ 71,435 $ 37,567 $ 27,219 stockholders Reconciling items affecting gross profit:Impact of the COVID-19 $ - $ 268 $ 3,130 pandemic Other reconciling items affecting operating income:Impact of the COVID-19 $ - $ (580 ) $ 317 pandemic Reconciling items affecting other income (expense):Loss on early extinguishment $ - $ 553 $ 2,920 of debt Reconciling items affecting tax expense (benefit):Change in tax regulation $ (4,395 ) $ - $ - Change in deferred taxes dueto early extinguishment of - (217 ) (1,346 ) debtEffects of changes in - 3,751 - uncertain tax positionsTax effects of pre-tax items - (12 ) (1,482 ) above Adjusted net earnings $ 67,040 $ 41,330 $ 30,758 Adjusted weighted average 145,463 145,251 145,295 diluted shares outstanding Adjusted earnings per $ 0.46 $ 0.28 $ 0.21 diluted share

VISHAY INTERTECHNOLOGY, INC. Reconciliation of Free Cash (Unaudited - In thousands) Fiscal quarters ended April 3, 2021 December 31, April 4, 2020 2020Net cash provided by $ 57,322 $ 125,699 $ 34,478 operating activitiesProceeds from sale of 200 110 53 property and equipmentLess: Capital expenditures (28,527 ) (52,798 ) (24,328 ) Free cash $ 28,995 $ 73,011 $ 10,203

VISHAY INTERTECHNOLOGY, INC. Reconciliation of EBITDA and Adjusted EBITDA(Unaudited - In thousands) Fiscal quarters ended April 3, 2021 December 31, April 4, 2020 2020 GAAP net earnings attributable $ 71,435 $ 37,567 $ 27,219 to Vishay stockholdersNet earnings attributable to 208 276 165 noncontrolling interestsNet earnings $ 71,643 $ 37,843 $ 27,384 Interest expense $ 4,376 $ 7,159 $ 8,552 Interest income (287 ) (385 ) (1,854 ) Income taxes 15,514 8,887 8,750 Depreciation and amortization 42,146 42,454 41,520 EBITDA $ 133,392 $ 95,958 $ 84,352 Reconciling items Impact of the COVID-19 $ - $ (312 ) $ 3,447 pandemicLoss on early extinguishment - 553 2,920 of debt Adjusted EBITDA $ 133,392 $ 96,199 $ 90,719 Adjusted EBITDA margin** 17.4 % 14.4 % 14.8 % ** Adjusted EBITDA as a percentage of net revenues