GlobeNewswire Inc | Aug 10, 2021 07:10AM EDT

August 10, 2021

-- Revenues Q2 of $819 million. -- Gross margin Q2 of 28.0%. -- Operating margin Q2 of 15.3%. -- EPS Q2 of $0.64; adjusted EPS of $0.61. -- Free Cash for the trailing 12 months Q2 of $230 million. -- Guidance Q3 2021 for revenues of $810 to $850 million and at a gross margin of 28.3% plus/minus 50 basis points at Q2 exchange rates.

MALVERN, Pa., Aug. 10, 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 and six fiscal months ended July 3, 2021.

Revenues for the fiscal quarter ended July 3, 2021 were $819.1 million, compared to $764.6 million for the fiscal quarter ended April 3, 2021, and $581.7 million for the fiscal quarter ended July 4, 2020. Net earnings attributable to Vishay stockholders for the fiscal quarter ended July 3, 2021 were $93.2 million, or $0.64 per diluted share, compared to $71.4 million, or $0.49 per diluted share for the fiscal quarter ended April 3, 2021, and $24.7 million, or $0.17 per diluted share for the fiscal quarter ended July 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 the unusual tax items, were $0.61, $0.46, and $0.18 for the fiscal quarters ended July 3, 2021, April 3, 2021, and July 4, 2020, respectively.

Commenting on results for the second quarter 2021, Dr. Gerald Paul, President and Chief Executive Officer stated, In the second quarter of 2021, the steep upturn of our business that began in October of last year continued unbroken. Sales at this time are limited by our capacity. Inventory turns of Vishays products at distribution increased again in all regions compared to the previous quarter. Sales to the industrial markets reached record levels.

Commenting on the outlook Dr. Paul stated, For the third quarter 2021 we guide for revenues in the range of $810 to $850 million at a gross margin of 28.3% plus/minus 50 basis points at the exchange rates of Q2 2021.

A conference call to discuss Vishays second quarter financial results is scheduled for Tuesday, August 10, 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 or Canada) and the access code is 6716307.

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 from 1:00 p.m. ET on Tuesday, August 10, 2021, through 11:59 p.m. ET on Wednesday, August 25, 2021. The telephone number for the replay is 855-859-2056 (+1 404-537-3406, if calling from outside the United States or Canada) and the access code is 6716307.

AboutVishay

Vishay 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 TheDNAoftech. 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.

TheDNAoftech 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 July 3, 2021 quarters July 4, 2020 ended April 3, 2021Net revenues $ 819,120 $ 764,632 $ 581,717 Costs of products sold* 589,848 561,683 451,047 Gross profit 229,272 202,949 130,670 Gross margin 28.0 % 26.5 % 22.5 %Selling, general, and 103,900 105,685 89,127 administrative expenses*Restructuring and severance - - 743 costsOperating income 125,372 97,264 40,800 Operating margin 15.3 % 12.7 % 7.0 %Other income (expense): Interest expense (4,443 ) (4,376 ) (8,430 )Loss on early extinguishment of - - (1,146 )debtOther (3,749 ) (5,731 ) (1,484 )Total other income (expense) - (8,192 ) (10,107 ) (11,060 )netIncome before taxes 117,180 87,157 29,740 Income tax expense 23,799 15,514 4,845 Net earnings 93,381 71,643 24,895 Less: net earnings attributable 189 208 242 to noncontrolling interestsNet earnings attributable to $ 93,192 $ 71,435 $ 24,653 Vishay stockholdersBasic earnings per shareattributable to Vishay $ 0.64 $ 0.49 $ 0.17 stockholdersDiluted earnings per shareattributable to Vishay $ 0.64 $ 0.49 $ 0.17 stockholdersWeighted average shares 145,017 144,968 144,846 outstanding - basicWeighted average shares 145,445 145,463 145,170 outstanding - dilutedCash dividends per share $ 0.095 $ 0.095 $ 0.095 * The fiscal quarter ended July 4, 2020 includes incremental costs of productssold and selling, general, and administrative expenses (benefits) separablefrom normal operations directly attributable to the COVID-19 pandemic of $923and $(747), respectively.

VISHAY INTERTECHNOLOGY, INC.Summary of Operations(Unaudited - In thousands, except per share amounts)

Six fiscal months ended July 3, 2021 July 4, 2020Net revenues $ 1,583,752 $ 1,194,558 Costs of products sold* 1,151,531 916,648 Gross profit 432,221 277,910 Gross margin 27.3 % 23.3 %Selling, general, and administrative 209,585 188,959 expenses*Restructuring and severance costs - 743 Operating income 222,636 88,208 Operating margin 14.1 % 7.4 %Other income (expense): Interest expense (8,819 ) (16,982 )Loss on early extinguishment of debt - (4,066 )Other (9,480 ) (1,286 )Total other income (expense) - net (18,299 ) (22,334 )Income before taxes 204,337 65,874 Income tax expense 39,313 13,595 Net earnings 165,024 52,279 Less: net earnings attributable to 397 407 noncontrolling interestsNet earnings attributable to Vishay $ 164,627 $ 51,872 stockholdersBasic earnings per share attributable to $ 1.14 $ 0.36 Vishay stockholdersDiluted earnings per share attributable to $ 1.13 $ 0.36 Vishay stockholdersWeighted average shares outstanding - basic 144,992 144,818 Weighted average shares outstanding - 145,453 145,232 dilutedCash dividends per share $ 0.19 $ 0.19 * The six fiscal months ended July 4, 2020 includes incremental costs ofproducts sold and selling, general, and administrative expenses (benefits)separable from normal operations directly attributable to the COVID-19 pandemicof $4,053 and $(430), respectively.

VISHAY INTERTECHNOLOGY, INC.Consolidated Condensed Balance Sheets(In thousands)

July 3, 2021 December 31, 2020 (Unaudited) Assets Current assets: Cash and cash equivalents $ 726,759 $ 619,874 Short-term investments 129,035 158,476 Accounts receivable, net 398,651 338,632 Inventories: Finished goods 144,993 120,792 Work in process 218,414 201,259 Raw materials 144,472 126,200 Total inventories 507,879 448,251 Prepaid expenses and other current assets 149,346 132,103 Total current assets 1,911,670 1,697,336 Property and equipment, at cost: Land 75,547 76,231 Buildings and improvements 636,540 641,041 Machinery and equipment 2,745,465 2,732,771 Construction in progress 91,386 86,520 Allowance for depreciation (2,633,944 ) (2,593,398 ) 914,994 943,165 Right of use assets 107,426 102,440 Goodwill 157,991 158,183 Other intangible assets, net 61,799 66,795 Other assets 196,903 186,554 Total assets $ 3,350,783 $ 3,154,473



VISHAY INTERTECHNOLOGY, INC.Consolidated Condensed Balance Sheets (continued)(In thousands)

July 3, 2021 December 31, 2020 (Unaudited) Liabilities and equity Current liabilities: Trade accounts payable $ 224,226 $ 196,203Payroll and related expenses 151,668 141,034Lease liabilities 21,542 22,074Other accrued expenses 210,061 182,642Income taxes 31,617 20,470Total current liabilities 639,114 562,423 Long-term debt less current portion 454,031 394,886U.S. transition tax payable 110,681 125,438Deferred income taxes 1,869 1,852Long-term lease liabilities 91,880 86,220Other liabilities 105,631 104,356Accrued pension and other postretirement 288,159 300,113costsTotal liabilities 1,691,365 1,575,288 Redeemable convertible debentures - 170 Equity: Vishay stockholders' equity Common stock 13,271 13,256Class B convertible common stock 1,210 1,210Capital in excess of par value 1,346,132 1,409,200Retained earnings 296,629 138,990Accumulated other comprehensive income (221 ) 13,559(loss)Total Vishay stockholders' equity 1,657,021 1,576,215Noncontrolling interests 2,397 2,800Total equity 1,659,418 1,579,015Total liabilities, temporary equity, and $ 3,350,783 $ 3,154,473equity

VISHAY INTERTECHNOLOGY, INC.Consolidated Condensed Statements of Cash Flows(Unaudited - In thousands)

Six fiscal months ended July 3, 2021 July 4, 2020 Operating activities Net earnings $ 165,024 $ 52,279 Adjustments to reconcile net earnings to net cash provided by operating activities:Depreciation and amortization 83,879 82,158 Gain on disposal of property and equipment (207 ) (43 )Accretion of interest on convertible debt - 7,125 instrumentsInventory write-offs for obsolescence 9,550 11,587 Loss on early extinguishment of debt - 4,066 Deferred income taxes 519 (4,370 )Other 5,758 954 Change in U.S. transition tax liability (14,757 ) - Change in repatriation tax liability - (16,258 )Changes in operating assets and liabilities (74,983 ) (12,589 )Net cash provided by operating activities 174,783 124,909 Investing activities Purchase of property and equipment (60,710 ) (48,832 )Proceeds from sale of property and equipment 234 230 Purchase of short-term investments (27,488 ) (157,086 )Maturity of short-term investments 53,679 108,044 Other investing activities 347 (529 )Net cash used in investing activities (33,938 ) (98,173 ) Financing activities Repurchase of convertible debt instruments (300 ) (90,525 )Net changes in short-term borrowings - (113 )Dividends paid to common stockholders (25,216 ) (25,185 )Dividends paid to Class B common stockholders (2,298 ) (2,299 )Distributions to noncontrolling interests (800 ) (600 )Cash withholding taxes paid when shares withheld (1,963 ) (2,016 )for vested equity awardsNet cash used in financing activities (30,577 ) (120,738 )Effect of exchange rate changes on cash and cash (3,383 ) (201 )equivalents Net increase (decrease) in cash and cash 106,885 (94,203 )equivalents Cash and cash equivalents at beginning of period 619,874 694,133 Cash and cash equivalents at end of period $ 726,759 $ 599,930

VISHAY INTERTECHNOLOGY, INC.Reconciliation of Adjusted Earnings Per Share(Unaudited - In thousands, except per share amounts)

Fiscal quarters ended Six fiscal months ended July 3, 2021 April 3, July 4, July 3, 2021 July 4, 2021 2020 2020 GAAP netearningsattributable $ 93,192 $ 71,435 $ 24,653 $ 164,627 $ 51,872 to Vishaystockholders Reconcilingitems affectinggross profit:Impact of theCOVID-19 $ - $ - $ 923 $ - $ 4,053 pandemic Otherreconcilingitems affectingoperatingincome:Restructuringand severance $ - $ - $ 743 $ - $ 743 costsImpact of theCOVID-19 $ - $ - $ (747 ) - (430 )pandemic Reconcilingitemsaffecting other income(expense):Loss on earlyextinguishment $ - $ - $ 1,146 $ - $ 4,066 of debt Reconcilingitemsaffecting tax expense(benefit):Changes in tax $ (3,881 ) $ (4,395 ) $ - $ (8,276 ) $ - regulationChange indeferred taxesdue to early - - - - (1,346 )extinguishmentof debtEffects ofcash - - (190 ) - (190 )repatriationprogramTax effects ofpre-tax items - - (589 ) - (2,071 )above Adjusted net $ 89,311 $ 67,040 $ 25,939 $ 156,351 $ 56,697 earnings Adjustedweightedaverage 145,445 145,463 145,170 145,453 145,232 diluted sharesoutstanding Adjustedearnings per $ 0.61 $ 0.46 $ 0.18 $ 1.07 $ 0.39 diluted share

VISHAY INTERTECHNOLOGY, INC.Reconciliation of Free Cash(Unaudited - In thousands)

Fiscal quarters ended Six fiscal months ended July 3, 2021 April 3, July 4, July 3, 2021 July 4, 2020 2021 2020Net cashprovided by $ 117,461 $ 57,322 $ 90,431 $ 174,783 $ 124,909 operatingactivitiesProceedsfrom sale of 34 200 177 234 230 property andequipmentLess:Capital (32,183 ) (28,527 ) (24,504 ) (60,710 ) (48,832 )expendituresFree cash $ 85,312 $ 28,995 $ 66,104 $ 114,307 $ 76,307

VISHAY INTERTECHNOLOGY, INC.Reconciliation of EBITDA and Adjusted EBITDA(Unaudited - In thousands)

Fiscal quarters ended Six fiscal months ended July 3, 2021 April 3, 2021 July 4, 2020 July 3, 2021 July 4, 2020 GAAP netearningsattributable $ 93,192 $ 71,435 $ 24,653 $ 164,627 $ 51,872 to VishaystockholdersNet earningsattributableto 189 208 242 397 407 noncontrollinginterestsNet earnings $ 93,381 $ 71,643 $ 24,895 $ 165,024 $ 52,279 Interest $ 4,443 $ 4,376 $ 8,430 $ 8,819 $ 16,982 expenseInterest (325 ) (287 ) (956 ) (612 ) (2,810 )incomeIncome taxes 23,799 15,514 4,845 39,313 13,595 Depreciationand 41,733 42,146 40,638 83,879 82,158 amortizationEBITDA $ 163,031 $ 133,392 $ 77,852 $ 296,423 $ 162,204 Reconciling itemsImpact of theCOVID-19 $ - $ - $ 176 $ - $ 3,623 pandemicRestructuringand severance - - 743 - 743 costsLoss on earlyextinguishment - - 1,146 - 4,066 of debt Adjusted $ 163,031 $ 133,392 $ 79,917 $ 296,423 $ 170,636 EBITDA AdjustedEBITDA 19.9 % 17.4 % 13.7 % 18.7 % 14.3 %margin** ** Adjusted EBITDA as a percentage of net revenues