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Vishay Intertechnology Reports Third Quarter 2023 Results
来源: Nasdaq GlobeNewswire / 08 11月 2023 08:15:36 America/New_York
MALVERN, Pa., Nov. 08, 2023 (GLOBE NEWSWIRE) -- 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 third quarter ended September 30, 2023.
Highlights
- 3Q 2023 revenues of $853.7 million
- 3Q 2023 EPS of $0.47; adjusted EPS of $0.60
- 3Q 2023 book-to-bill of 0.63
- Backlog at quarter end was 5.5 months
- Returned a total of $31.1 million to stockholders
“During the third quarter, as expected, revenue decreased from the second quarter on inventory adjustments by our distribution and EMS customers in response to softened demand in industrial markets and contracting lead times. Nevertheless, we once again intentionally increased inventory with our distribution partners as we continued to execute our strategy of broadening our participation in this higher margin channel. The capacity readiness activities we have underway are increasing our value to the distribution channel and reliably supporting our accelerating design activities related to the megatrends of e-mobility, sustainability and connectivity,” said Joel Smejkal, President and Chief Executive Officer. “In addition, as announced separately today, we have signed a purchase agreement to acquire Newport wafer fab which will accelerate our plan to scale manufacturing and advance the technology differentiation of our silicon carbide MOSFETs.”
4Q 2023 Outlook
For the fourth quarter of 2023, management expects revenues in the range of $770 million and $810 million and a gross profit margin in the range of 25.5% +/- 50 basis points.Conference Call
A conference call to discuss Vishay’s third quarter financial results is scheduled for Wednesday, November 8, 2023 at 9:00 a.m. ET. To participate in the live conference call, please pre-register at https://register.vevent.com/register/BI4d27675bed8e4ca8934830406b6e87c1. Upon registering, you will be emailed a dial-in number, and unique PIN.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 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 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 “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 because of COVID-19 or otherwise (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; the timing of the Newport wafer fab acquisition; that the Newport wafer fab acquisition may not be consummated, including as a result of any of the conditions precedent (including the failure to obtain any required approvals or consents, or the exercise of certain third party purchase rights); global market downturn conditions and volatilities impacting the completion of the acquisition; that the 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
+1-610-644-1300VISHAY INTERTECHNOLOGY, INC. Summary of Operations (Unaudited - In thousands, except per share amounts) Fiscal quarters ended September 30, 2023 July 1, 2023 October 1, 2022 Net revenues $ 853,653 $ 892,110 $ 924,798 Costs of products sold 616,010 634,637 635,260 Gross profit 237,643 257,473 289,538 Gross margin 27.8 % 28.9 % 31.3 % Selling, general, and administrative expenses 122,513 122,857 106,436 Operating income 115,130 134,616 183,102 Operating margin 13.5 % 15.1 % 19.8 % Other income (expense): Interest expense (7,153 ) (6,404 ) (4,110 ) Loss on early extinguishment of debt (18,874 ) - - Other 7,409 5,257 2,137 Total other income (expense) - net (18,618 ) (1,147 ) (1,973 ) Income before taxes 96,512 133,469 181,129 Income tax expense 30,557 38,054 40,566 Net earnings 65,955 95,415 140,563 Less: net earnings attributable to noncontrolling interests 426 377 502 Net earnings attributable to Vishay stockholders $ 65,529 $ 95,038 $ 140,061 Basic earnings per share attributable to Vishay stockholders $ 0.47 $ 0.68 $ 0.98 Diluted earnings per share attributable to Vishay stockholders $ 0.47 $ 0.68 $ 0.98 Weighted average shares outstanding - basic 139,083 139,764 142,887 Weighted average shares outstanding - diluted 140,001 140,478 143,447 Cash dividends per share $ 0.10 $ 0.10 $ 0.10 VISHAY INTERTECHNOLOGY, INC. Summary of Operations (Unaudited - In thousands, except per share amounts) Nine fiscal months ended September 30, 2023 October 1, 2022 Net revenues $ 2,616,809 $ 2,642,103 Costs of products sold* 1,842,980 1,832,234 Gross profit 773,829 809,869 Gross margin 29.6 % 30.7 % Selling, general, and administrative expenses* 365,515 329,691 Operating income 408,314 480,178 Operating margin 15.6 % 18.2 % Other income (expense): Interest expense (18,677 ) (12,639 ) Loss on early extinguishment of debt (18,874 ) - Other 15,995 (2,234 ) Total other income (expense) - net (21,556 ) (14,873 ) Income before taxes 386,758 465,305 Income tax expense 113,199 108,023 Net earnings 273,559 357,282 Less: net earnings attributable to noncontrolling interests 1,211 1,260 Net earnings attributable to Vishay stockholders $ 272,348 $ 356,022 Basic earnings per share attributable to Vishay stockholders $ 1.95 $ 2.47 Diluted earnings per share attributable to Vishay stockholders $ 1.94 $ 2.46 Weighted average shares outstanding - basic 139,828 143,983 Weighted average shares outstanding - diluted 140,577 144,470 Cash dividends per share $ 0.30 $ 0.30 * The nine fiscal months ended October 1, 2022 includes incremental costs of products sold and selling, general, and administrative expenses separable from normal operations directly attributable to the COVID-19 pandemic of $6,661 and $546, respectively. VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (In thousands) September 30, 2023 December 31, 2022 (Unaudited) Assets Current assets: Cash and cash equivalents $ 1,095,119 $ 610,825 Short-term investments 78,994 305,272 Accounts receivable, net 442,646 416,178 Inventories: Finished goods 165,936 156,234 Work in process 271,107 261,345 Raw materials 206,499 201,300 Total inventories 643,542 618,879 Prepaid expenses and other current assets 179,825 170,056 Total current assets 2,440,126 2,121,210 Property and equipment, at cost: Land 76,139 75,907 Buildings and improvements 692,037 658,829 Machinery and equipment 2,973,943 2,857,636 Construction in progress 226,460 243,038 Allowance for depreciation (2,788,393 ) (2,704,951 ) 1,180,186 1,130,459 Right of use assets 127,992 131,193 Deferred income taxes 128,109 104,667 Goodwill 200,895 201,432 Other intangible assets, net 72,126 77,896 Other assets 91,773 98,796 Total assets $ 4,241,207 $ 3,865,653 VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (continued) (In thousands) September 30, 2023 December 31, 2022 (Unaudited) Liabilities and equity Current liabilities: Trade accounts payable $ 207,440 $ 189,099 Payroll and related expenses 162,113 166,079 Lease liabilities 26,097 25,319 Other accrued expenses 238,565 261,606 Income taxes 82,734 84,155 Total current liabilities 716,949 726,258 Long-term debt less current portion 817,257 500,937 U.S. transition tax payable 47,027 83,010 Deferred income taxes 138,628 117,183 Long-term lease liabilities 103,223 108,493 Other liabilities 92,896 92,530 Accrued pension and other postretirement costs 182,704 187,092 Total liabilities 2,098,684 1,815,503 Equity: Vishay stockholders' equity Common stock 13,318 13,291 Class B convertible common stock 1,210 1,210 Capital in excess of par value 1,286,568 1,352,321 Retained earnings 1,003,700 773,228 Treasury stock (at cost) (140,633 ) (82,972 ) Accumulated other comprehensive income (loss) (25,883 ) (10,827 ) Total Vishay stockholders' equity 2,138,280 2,046,251 Noncontrolling interests 4,243 3,899 Total equity 2,142,523 2,050,150 Total liabilities and equity $ 4,241,207 $ 3,865,653 VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Statements of Cash Flows (Unaudited - In thousands) Nine fiscal months ended September 30, 2023 October 1, 2022 Operating activities Net earnings $ 273,559 $ 357,282 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 133,910 121,301 (Gain) loss on disposal of property and equipment (495 ) (372 ) Inventory write-offs for obsolescence 27,469 18,197 Stock compensation expense 11,610 5,717 Loss on early extinguishment of debt 18,874 - Deferred income taxes 20,654 8,843 Other 7,574 (1,445 ) Change in U.S. transition tax liability (27,670 ) (14,757 ) Change in repatriation tax liability - (25,201 ) Changes in operating assets and liabilities (106,050 ) (151,773 ) Net cash provided by operating activities 359,435 317,792 Investing activities Purchase of property and equipment (184,079 ) (172,175 ) Proceeds from sale of property and equipment 1,034 472 Purchase of businesses, net of cash acquired (5,003 ) - Purchase of short-term investments (82,166 ) (182,079 ) Maturity of short-term investments 308,021 132,892 Other investing activities (1,219 ) (199 ) Net cash provided by (used in) investing activities 36,588 (221,089 ) Financing activities Proceeds from long-term borrowings 750,000 - Repurchase of convertible senior notes due 2025 (386,745 ) - Net payments on revolving credit facility (42,000 ) - Debt issuance costs (26,547 ) - Cash paid for capped call (94,200 ) - Dividends paid to common stockholders (38,207 ) (39,433 ) Dividends paid to Class B common stockholders (3,629 ) (3,629 ) Repurchase of common stock held in treasury (57,661 ) (54,671 ) Distributions to noncontrolling interests (867 ) (741 ) Cash withholding taxes paid when shares withheld for vested equity awards (3,994 ) (2,123 ) Net cash provided by (used in) financing activities 96,150 (100,597 ) Effect of exchange rate changes on cash and cash equivalents (7,879 ) (35,222 ) Net increase (decrease) in cash and cash equivalents 484,294 (39,116 ) Cash and cash equivalents at beginning of period 610,825 774,108 Cash and cash equivalents at end of period $ 1,095,119 $ 734,992 VISHAY INTERTECHNOLOGY, INC. Reconciliation of Adjusted Earnings Per Share (Unaudited - In thousands, except per share amounts) Fiscal quarters ended Nine fiscal months ended September 30, 2023 July 1, 2023 October 1, 2022 September 30, 2023 October 1, 2022 GAAP net earnings attributable to Vishay stockholders $ 65,529 $ 95,038 $ 140,061 $ 272,348 $ 356,022 Reconciling items affecting gross profit: Impact of the COVID-19 pandemic $ - $ - $ - $ - $ 6,661 Other reconciling items affecting operating income: Impact of the COVID-19 pandemic $ - $ - $ - $ - $ 546 Reconciling items affecting other income (expense): Loss on early extinguishment of debt $ 18,874 $ - $ - $ 18,874 $ - Reconciling items affecting tax expense (benefit): Effect of changes in uncertain tax positions $ - $ - $ (5,941 ) $ - $ (5,941 ) Tax effects of pre-tax items above (498 ) - - (498 ) (1,802 ) Adjusted net earnings $ 83,905 $ 95,038 $ 134,120 $ 290,724 $ 355,486 Adjusted weighted average diluted shares outstanding 140,001 140,478 143,447 140,577 144,470 Adjusted earnings per diluted share $ 0.60 $ 0.68 $ 0.93 $ 2.07 $ 2.46 VISHAY INTERTECHNOLOGY, INC. Reconciliation of Free Cash (Unaudited - In thousands) Fiscal quarters ended Nine fiscal months ended September 30, 2023 July 1, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Net cash provided by operating activities $ 122,303 107,239 209,480 $ 359,435 $ 317,792 Proceeds from sale of property and equipment 21 687 95 1,034 472 Less: Capital expenditures (66,829 ) (71,676 ) (76,475 ) (184,079 ) (172,175 ) Free cash $ 55,495 $ 36,250 $ 133,100 $ 176,390 $ 146,089 VISHAY INTERTECHNOLOGY, INC. Reconciliation of EBITDA and Adjusted EBITDA (Unaudited - In thousands) Fiscal quarters ended Nine fiscal months ended September 30, 2023 July 1, 2023 October 1, 2022 September 30, 2023 October 1, 2022 GAAP net earnings attributable to Vishay stockholders $ 65,529 $ 95,038 $ 140,061 $ 272,348 $ 356,022 Net earnings attributable to noncontrolling interests 426 377 502 1,211 1,260 Net earnings $ 65,955 $ 95,415 $ 140,563 $ 273,559 $ 357,282 Interest expense $ 7,153 $ 6,404 $ 4,110 $ 18,677 $ 12,639 Interest income (9,183 ) (6,292 ) (1,836 ) (21,419 ) (3,186 ) Income taxes 30,557 38,054 40,566 113,199 108,023 Depreciation and amortization 46,216 44,393 40,334 133,910 121,301 EBITDA $ 140,698 $ 177,974 $ 223,737 $ 517,926 $ 596,059 Reconciling items Impact of the COVID-19 pandemic $ - $ - $ - $ - $ 7,207 Loss on early extinguishment of debt 18,874 - - 18,874 - Adjusted EBITDA $ 159,572 $ 177,974 $ 223,737 $ 536,800 $ 603,266 Adjusted EBITDA margin** 18.7 % 19.9 % 24.2 % 20.5 % 22.8 % ** Adjusted EBITDA as a percentage of net revenues