GlobeNewswire Inc | Nov 3, 2021 07:05AM EDT

November 03, 2021

-- Revenues Q3 of $814 million. -- Gross margin Q3 of 27.7%. -- Operating margin Q3 of 15.2%. -- EPS Q3 of $0.67; adjusted EPS of $0.63. -- Free Cash for the trailing 12 months Q3 of $267 million. -- Guidance Q4 2021 for revenues of $805 to $845 million and at a gross margin of 27.7% plus/minus 50 basis points at Q3 exchange rates.

MALVERN, Pa., Nov. 03, 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 nine fiscal months ended October 2, 2021.

Revenues for the fiscal quarter ended October 2, 2021 were $813.7 million, compared to $819.1 million for the fiscal quarter ended July 3, 2021, and $640.2 million for the fiscal quarter ended October 3, 2020. Net earnings attributable to Vishay stockholders for the fiscal quarter ended October 2, 2021 were $96.8 million, or $0.67 per diluted share, compared to $93.2 million, or $0.64 per diluted share for the fiscal quarter ended July 3, 2021, and $33.5 million, or $0.23 per diluted share for the fiscal quarter ended October 3, 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 $0.63, $0.61, and $0.25 for the fiscal quarters ended October 2, 2021, July 3, 2021, and October 3, 2020, respectively.

Commenting on results for the third quarter 2021, Dr. Gerald Paul, President and Chief Executive Officer stated, In the third quarter of 2021, we continued to operate under excellent economic conditions, resulting in a further increase of our record backlogs. During the quarter we experienced localized shortages of labor impacting the manufacturing output. The automotive sector is expected to increase over the next quarters as the current supply chain problems are getting resolved step by step. We also continued to strategically increase prices to offset the increased inflationary costs for metals, materials and transportation.

Dr. Paul continued, We anticipate higher growth rates than in the past for our key end markets and we intend to further invest in the expansion of our manufacturing capacities to be well positioned to take advantage of these growth opportunities. In this context, we announced that we will build a 12 fab for MOSFETs adjacent to our existing fab in Itzehoe, Germany. Despite increased capital expenditures, we expect to continue to generate strong annual free cash flow.

Commenting on the outlook Dr. Paul stated, For the fourth quarter 2021 we guide for revenues in the range of $805 to $845 million at a gross margin of 27.7% plus/minus 50 basis points at the exchange rates of Q3 2021.

A conference call to discuss Vishays third quarter financial results is scheduled for Wednesday, November 3, 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 9760937.

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 Wednesday, November 3, 2021 through 11:59 p.m. ET on Thursday, November 18. 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 9760937.

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 Form10-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 or otherwise; 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 October 2, July 3, 2021 October 3, 2021 2020 Net revenues $ 813,663 $ 819,120 $ 640,160 Costs of products sold* 587,927 589,848 488,451 Gross profit 225,736 229,272 151,709 Gross margin 27.7 % 28.0 % 23.7 % Selling, general, and 102,215 103,900 90,219 administrative expenses*Operating income 123,521 125,372 61,490 Operating margin 15.2 % 15.3 % 9.6 % Other income (expense): Interest expense (4,427 ) (4,443 ) (7,414 )Loss on early extinguishment of - - (3,454 )debtOther (2,679 ) (3,749 ) (4,898 )Total other income (expense) - (7,106 ) (8,192 ) (15,766 )net Income before taxes 116,415 117,180 45,724 Income tax expense 19,333 23,799 12,063 Net earnings 97,082 93,381 33,661 Less: net earnings attributable 262 189 177 to noncontrolling interests Net earnings attributable to $ 96,820 $ 93,192 $ 33,484 Vishay stockholders Basic earnings per shareattributable to Vishay $ 0.67 $ 0.64 $ 0.23 stockholders Diluted earnings per shareattributable to Vishay $ 0.67 $ 0.64 $ 0.23 stockholders Weighted average shares 145,017 145,017 144,854 outstanding - basic Weighted average shares 145,458 145,445 145,197 outstanding - diluted Cash dividends per share $ 0.095 $ 0.095 $ 0.095 * The fiscal quarter ended October 3, 2020 includes incremental costs ofproducts sold and selling, general, and administrative expenses (benefits)separable from normal operations directly attributable to the COVID-19 pandemicof $242 and $(441), respectively.

VISHAY INTERTECHNOLOGY, INC. Summary of Operations (Unaudited - In thousands, except per share amounts) Nine fiscal months ended October 2, 2021 October 3, 2020 Net revenues $ 2,397,415 $ 1,834,718 Costs of products sold* 1,739,458 1,405,099 Gross profit 657,957 429,619 Gross margin 27.4 % 23.4 % Selling, general, and administrative 311,800 279,178 expenses*Restructuring and severance costs - 743 Operating income 346,157 149,698 Operating margin 14.4 % 8.2 % Other income (expense): Interest expense (13,246 ) (24,396 )Loss on early extinguishment of debt - (7,520 )Other (12,159 ) (6,184 )Total other income (expense) - net (25,405 ) (38,100 ) Income before taxes 320,752 111,598 Income tax expense 58,646 25,658 Net earnings 262,106 85,940 Less: net earnings attributable to 659 584 noncontrolling interests Net earnings attributable to Vishay $ 261,447 $ 85,356 stockholders Basic earnings per share attributable to $ 1.80 $ 0.59 Vishay stockholders Diluted earnings per share attributable to $ 1.80 $ 0.59 Vishay stockholders Weighted average shares outstanding - basic 145,000 144,831 Weighted average shares outstanding - diluted 145,455 145,221 Cash dividends per share $ 0.285 $ 0.285 * The nine fiscal months ended October 3, 2020 includes incremental costs ofproducts sold and selling, general, and administrative expenses (benefits)separable from normal operations directly attributable to the COVID-19 pandemicof $4,295 and $(871), respectively.

VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (In thousands) October 2, 2021 December 31, 2020 (Unaudited) Assets Current assets: Cash and cash equivalents $ 831,760 $ 619,874 Short-term investments 84,177 158,476 Accounts receivable, net 378,523 338,632 Inventories: Finished goods 152,769 120,792 Work in process 223,355 201,259 Raw materials 156,544 126,200 Total inventories 532,668 448,251 Prepaid expenses and other current assets 146,870 132,103 Total current assets 1,973,998 1,697,336 Property and equipment, at cost: Land 75,063 76,231 Buildings and improvements 632,219 641,041 Machinery and equipment 2,746,511 2,732,771 Construction in progress 112,157 86,520 Allowance for depreciation (2,640,993 ) (2,593,398 ) 924,957 943,165 Right of use assets 110,083 102,440 Goodwill 157,683 158,183 Other intangible assets, net 59,583 66,795 Other assets 197,974 186,554 Total assets $ 3,424,278 $ 3,154,473

VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (continued) (In thousands) October 2, 2021 December 31, 2020 (Unaudited) Liabilities and equity Current liabilities: Trade accounts payable $ 221,666 $ 196,203 Payroll and related expenses 155,792 141,034 Lease liabilities 21,583 22,074 Other accrued expenses 206,045 182,642 Income taxes 40,648 20,470 Total current liabilities 645,734 562,423 Long-term debt less current portion 454,848 394,886 U.S. transition tax payable 110,681 125,438 Deferred income taxes 1,843 1,852 Long-term lease liabilities 94,064 86,220 Other liabilities 105,880 104,356 Accrued pension and other postretirement 283,049 300,113 costsTotal liabilities 1,696,099 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 1,346,980 1,409,200 Retained earnings 379,672 138,990 Accumulated other comprehensive income (15,613 ) 13,559 (loss)Total Vishay stockholders' equity 1,725,520 1,576,215 Noncontrolling interests 2,659 2,800 Total equity 1,728,179 1,579,015 Total liabilities, temporary equity, and $ 3,424,278 $ 3,154,473 equity

VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Statements of Cash Flows(Unaudited - In thousands) Nine fiscal months ended October 2, October 3, 2021 2020 Operating activities Net earnings $ 262,106 $ 85,940 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 125,095 123,776 (Gain) loss on disposal of property and (254 ) 257 equipmentAccretion of interest on convertible debt - 10,232 instrumentsInventory write-offs for obsolescence 14,960 17,891 Loss on early extinguishment of debt - 7,520 Deferred income taxes (4,208 ) (1,142 )Other 8,376 3,188 Change in U.S. transition tax liability (14,757 ) (14,757 )Change in repatriation tax liability - (16,258 )Changes in operating assets and liabilities, (80,866 ) (27,408 )net of effects of business acquiredNet cash provided by operating activities 310,452 189,239 Investing activities Purchase of property and equipment (118,156 ) (70,801 )Proceeds from sale of property and equipment 1,257 293 Purchase of businesses, net of cash acquired - (25,852 )Purchase of short-term investments (55,491 ) (157,177 )Maturity of short-term investments 126,171 241,016 Other investing activities 347 (529 )Net cash used in investing activities (45,872 ) (13,050 ) Financing activities Repurchase of convertible debt instruments (300 ) (148,177 )Net changes in short-term borrowings - (110 )Dividends paid to common stockholders (37,823 ) (37,779 )Dividends paid to Class B common stockholders (3,448 ) (3,448 )Distributions to noncontrolling interests (800 ) (600 )Cash withholding taxes paid when shares (1,963 ) (2,016 )withheld for vested equity awardsNet cash used in financing activities (44,334 ) (192,130 )Effect of exchange rate changes on cash and (8,360 ) 4,230 cash equivalents Net increase (decrease) in cash and cash 211,886 (11,711 )equivalents Cash and cash equivalents at beginning of 619,874 694,133 periodCash and cash equivalents at end of period $ 831,760 $ 682,422

VISHAYINTERTECHNOLOGY, INC.Reconciliationof Adjusted Earnings PerShare(Unaudited - Inthousands, except per shareamounts) Fiscal quarters ended Nine fiscal months ended October 2, July 3, 2021 October 3, October 2, October 3, 2021 2020 2021 2020 GAAP netearningsattributable to $ 96,820 $ 93,192 $ 33,484 $ 261,447 $ 85,356 Vishaystockholders Reconcilingitems affecting gross profit:Impact of theCOVID-19 $ - $ - $ 242 $ - $ 4,295 pandemic Otherreconcilingitems affecting operatingincome:Restructuringand severance $ - $ - $ - $ - $ 743 costsImpact of theCOVID-19 $ - $ - $ (441 ) - (871 )pandemic Reconcilingitems affecting other income(expense):Loss on earlyextinguishment $ - $ - $ 3,454 $ - $ 7,520 of debt Reconcilingitems affecting tax expense(benefit):Changes in tax $ - $ (3,881 ) $ - $ (8,276 ) $ - regulationChange indeferred taxesdue to early - - - - (1,346 )extinguishmentof debtEffects of cashrepatriation - - - - (190 )programEffects ofchanges in (5,714 ) - - (5,714 ) - valuationallowancesTax effects ofpre-tax items - - (716 ) - (2,787 )above Adjusted net $ 91,106 $ 89,311 $ 36,023 $ 247,457 $ 92,720 earnings Adjustedweighted average 145,458 145,445 145,197 145,455 145,221 diluted sharesoutstanding Adjustedearnings per $ 0.63 $ 0.61 $ 0.25 $ 1.70 $ 0.64 diluted share

VISHAYINTERTECHNOLOGY, INC.Reconciliation of Free Cash(Unaudited - In thousands) Fiscal quarters ended Nine fiscal months ended October 2, July 3, 2021 October 3, October 2, October 3, 2021 2020 2021 2020Net cashprovided by $ 135,669 $ 117,461 $ 64,330 $ 310,452 $ 189,239 operatingactivitiesProceeds fromsale of property 1,023 34 63 1,257 293 and equipmentLess: Capital (57,446 ) (32,183 ) (21,969 ) (118,156 ) (70,801 )expendituresFree cash $ 79,246 $ 85,312 $ 42,424 $ 193,553 $ 118,731

VISHAYINTERTECHNOLOGY, INC.Reconciliationof EBITDA and Adjusted EBITDA(Unaudited - In thousands) Fiscal quarters ended Nine fiscal months ended October 2, July 3, 2021 October 3, October 2, October 3, 2021 2020 2021 2020 GAAP netearningsattributable to $ 96,820 $ 93,192 $ 33,484 $ 261,447 $ 85,356 VishaystockholdersNet earningsattributable to 262 189 177 659 584 noncontrollinginterestsNet earnings $ 97,082 $ 93,381 $ 33,661 $ 262,106 $ 85,940 Interest expense $ 4,427 $ 4,443 $ 7,414 $ 13,246 $ 24,396 Interest income (295 ) (325 ) (514 ) (907 ) (3,324 )Income taxes 19,333 23,799 12,063 58,646 25,658 Depreciation and 41,216 41,733 41,618 125,095 123,776 amortizationEBITDA $ 161,763 $ 163,031 $ 94,242 $ 458,186 $ 256,446 Reconciling itemsImpact of theCOVID-19 $ - $ - $ (199 ) $ - $ 3,424 pandemicRestructuringand severance - - - - 743 costsLoss on earlyextinguishment - - 3,454 - 7,520 of debt Adjusted EBITDA $ 161,763 $ 163,031 $ 97,497 $ 458,186 $ 268,133 Adjusted EBITDA 19.9 % 19.9 % 15.2 % 19.1 % 14.6 %margin** ** AdjustedEBITDA as a percentage ofnet revenues