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Vishay Intertechnology Reports Fourth Quarter and Fiscal Year 2022 Results
来源: Nasdaq GlobeNewswire / 08 2月 2023 06:10:00 America/Chicago
MALVERN, Pa., Feb. 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 fourth quarter and year ended December 31, 2022.
Highlights
- 4Q 2022 revenues of $855.3 million, a decrease of 7.5% versus 3Q 2022, reflecting stable pricing and a volume decline; up 1.5% versus 4Q 2021.
- 4Q 2022 GAAP EPS of $0.51 per share; adjusted EPS of $0.69 per share.
- FY 2022 capex of $325.3 million.
- FY 2022 free cash flow of $160.2 million.
- FY 2022 total cash return to stockholders of $140.2 million.
“During the fourth quarter we began to see indications of an inventory correction, which impacted revenues and our gross profit margin. Given that over 60% of our revenue is derived from the automotive and industrial ends markets which are experiencing strong demand from mega electrification trends, we are anticipating a narrow inventory correction in the first half of the year. For 2022, Vishay continued its track record of strong cash flow generation, providing ample funds to return a total of $140.2 million to stockholders through a combination of dividend payments and stock repurchases. This equates to 87.5% of free cash flow, which is well above the 70% floor we have committed to in our stockholders’ return policy,” said Joel Smejkal, president and CEO.
“Looking ahead, Vishay will implement a number of initiatives to prepare the company to meet our customers’ growing demand while investing more heavily in technical resources and capacity. Our goal in the near term is to position Vishay to be ready to fully participate in mega electrification trends in our end markets thereby generating substantial top line growth and expanded margins,” concluded Mr. Smejkal.
1Q 2023 Outlook
For the first quarter of 2023, management expects revenues in the range of $825 million and $865 million and a gross profit margin in the range of 28.0% +/- 50 basis points.Conference Call
Management will host a conference call today, February 8, 2023, at 9:00 a.m. ET to discuss fourth quarter and full year 2022 results. The dial-in number for the conference call is 877-407-0989 (+1 201-389-0921, if calling from outside the United States) and the access code is 13734859. Interested parties may also access a real-time webcast through the Investor Relations section of the company’s website at http://ir.vishay.com. A presentation accompanying management’s prepared remarks will be posted approximately 30 minutes before the conference call starts. For interested parties who are unable to join the live call, there will be a replay of the conference call from 12:00 p.m. ET on Wednesday, February 8, 2023, through 11:59 p.m. ET on Wednesday, February 22, 2023. The telephone number for the replay is +1 877-660-6853 (+1 201-612-7415, if calling from outside the United States or Canada) and the access code is 13734859.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, 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,” “anticipate,” “looking ahead” 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 Henrici
Executive Vice President, Corporate Development
+1-610-644-1300
VISHAY INTERTECHNOLOGY, INC. Summary of Operations (In thousands, except per share amounts) Years ended December 31, 2022 December 31, 2021 (unaudited) Net revenues $ 3,497,401 $ 3,240,487 Costs of products sold* 2,438,412 2,352,574 Gross profit 1,058,989 887,913 Gross margin 30.3 % 27.4 % Selling, general, and administrative expenses* 443,503 420,111 Operating income 615,486 467,802 Operating margin 17.6 % 14.4 % Other income (expense): Interest expense (17,129 ) (17,538 ) Other (4,852 ) (15,654 ) Total other income (expense) - net (21,981 ) (33,192 ) Income before taxes 593,505 434,610 Income tax expense 163,022 135,673 Net earnings 430,483 298,937 Less: net earnings attributable to noncontrolling interests 1,673 967 Net earnings attributable to Vishay stockholders $ 428,810 $ 297,970 Basic earnings per share attributable to Vishay stockholders $ 2.99 $ 2.05 Diluted earnings per share attributable to Vishay stockholders $ 2.98 $ 2.05 Weighted average shares outstanding - basic 143,399 145,005 Weighted average shares outstanding - diluted 143,915 145,495 Cash dividends per share $ 0.400 $ 0.385 * The year ended December 31, 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. Summary of Operations (Unaudited - In thousands, except per share amounts) Fiscal quarters ended December 31, 2022 October 1, 2022 December 31, 2021 Net revenues $ 855,298 $ 924,798 $ 843,072 Costs of products sold 606,178 635,260 613,116 Gross profit 249,120 289,538 229,956 Gross margin 29.1 % 31.3 % 27.3 % Selling, general, and administrative expenses 113,812 106,436 108,311 Operating income 135,308 183,102 121,645 Operating margin 15.8 % 19.8 % 14.4 % Other income (expense): Interest expense (4,490 ) (4,110 ) (4,292 ) Other (2,618 ) 2,137 (3,495 ) Total other income (expense) - net (7,108 ) (1,973 ) (7,787 ) Income before taxes 128,200 181,129 113,858 Income tax expense 54,999 40,566 77,027 Net earnings 73,201 140,563 36,831 Less: net earnings attributable to noncontrolling interests 413 502 308 Net earnings attributable to Vishay stockholders $ 72,788 $ 140,061 $ 36,523 Basic earnings per share attributable to Vishay stockholders $ 0.51 $ 0.98 $ 0.25 Diluted earnings per share attributable to Vishay stockholders $ 0.51 $ 0.98 $ 0.25 Weighted average shares outstanding - basic 141,643 142,887 145,019 Weighted average shares outstanding - diluted 142,247 143,447 145,617 Cash dividends per share $ 0.100 $ 0.100 $ 0.100
VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (In thousands) December 31, 2022 December 31, 2021 (Unaudited) Assets Current assets: Cash and cash equivalents $ 610,825 $ 774,108 Short-term investments 305,272 146,743 Accounts receivable, net 416,178 396,458 Inventories: Finished goods 156,234 147,293 Work in process 261,345 226,496 Raw materials 201,300 162,711 Total inventories 618,879 536,500 Prepaid expenses and other current assets 170,056 156,689 Total current assets 2,121,210 2,010,498 Property and equipment, at cost: Land 75,907 74,646 Buildings and improvements 658,829 639,879 Machinery and equipment 2,857,636 2,758,262 Construction in progress 243,038 145,828 Allowance for depreciation (2,704,951 ) (2,639,136 ) 1,130,459 979,479 Right of use assets 131,193 117,635 Deferred income taxes 104,667 95,037 Goodwill 201,432 165,269 Other intangible assets, net 77,896 67,714 Other assets 98,796 107,625 Total assets $ 3,865,653 $ 3,543,257
VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (continued) (In thousands) December 31, 2022 December 31, 2021 (Unaudited) Liabilities and equity Current liabilities: Trade accounts payable $ 189,099 $ 254,049 Payroll and related expenses 166,079 162,694 Lease liabilities 25,319 23,392 Other accrued expenses 261,606 218,089 Income taxes 84,155 35,443 Total current liabilities 726,258 693,667 Long-term debt less current portion 500,937 455,666 U.S. transition tax payable 83,010 110,681 Deferred income taxes 117,183 69,003 Long-term lease liabilities 108,493 99,987 Other liabilities 92,530 95,861 Accrued pension and other postretirement costs 187,092 271,672 Total liabilities 1,815,503 1,796,537 Equity: Vishay stockholders' equity Common stock 13,291 13,271 Class B convertible common stock 1,210 1,210 Capital in excess of par value 1,352,321 1,347,830 Retained earnings 773,228 401,694 Treasury stock (at cost) (82,972 ) - Accumulated other comprehensive income (loss) (10,827 ) (20,252 ) Total Vishay stockholders' equity 2,046,251 1,743,753 Noncontrolling interests 3,899 2,967 Total equity 2,050,150 1,746,720 Total liabilities and equity $ 3,865,653 $ 3,543,257
VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Statements of Cash Flows (In thousands) Years ended December 31, 2022 December 31, 2021 (unaudited) Operating activities Net earnings $ 430,483 $ 298,937 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 163,991 167,037 (Gain) loss on disposal of property and equipment (455 ) (303 ) Inventory write-offs for obsolescence 26,898 20,657 Pensions and other postretirement benefits, net of contributions (615 ) 2,106 Deferred income taxes 38,677 50,613 Other 7,380 16,226 Change in U.S. transition tax liability (14,757 ) (14,757 ) Change in repatriation tax liability (25,201 ) - Changes in operating assets and liabilities, net of effects of businesses acquired (142,113 ) (83,412 ) Net cash provided by operating activities 484,288 457,104 Investing activities Purchase of property and equipment (325,308 ) (218,372 ) Proceeds from sale of property and equipment 1,198 1,317 Purchase of businesses, net of cash acquired (50,000 ) (20,847 ) Purchase of short-term investments (285,956 ) (140,603 ) Maturity of short-term investments 132,901 147,893 Other investing activities (1,766 ) 129 Net cash used in investing activities (528,931 ) (230,483 ) Financing activities Repurchase of convertible debt instruments - (300 ) Net proceeds (payments) on revolving credit lines 42,000 - Dividends paid to common stockholders (52,348 ) (51,094 ) Dividends paid to Class B common stockholders (4,839 ) (4,657 ) Repurchase of common stock held in treasury (82,972 ) - Distributions to noncontrolling interests (741 ) (800 ) Cash withholding taxes paid when shares withheld for vested equity awards (2,123 ) (1,963 ) Net cash used in financing activities (101,023 ) (58,814 ) Effect of exchange rate changes on cash and cash equivalents (17,617 ) (13,573 ) Net increase (decrease) in cash and cash equivalents (163,283 ) 154,234 Cash and cash equivalents at beginning of period 774,108 619,874 Cash and cash equivalents at end of period $ 610,825 $ 774,108
VISHAY INTERTECHNOLOGY, INC. Reconciliation of Adjusted Earnings Per Share (Unaudited - In thousands, except per share amounts) Fiscal quarters ended Years ended December 31, 2022 October 1, 2022 December 31, 2021 December 31, 2022 December 31, 2021 GAAP net earnings attributable to Vishay stockholders $ 72,788 $ 140,061 $ 36,523 $ 428,810 $ 297,970 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 tax expense (benefit): Effects of changes in uncertain tax positions $ - $ (5,941 ) $ - $ (5,941 ) $ - Effects of changes in valuation allowances (33,669 ) - - (33,669 ) (5,714 ) Effect of change in indefinite reversal assertion 59,642 - - 59,642 - Changes in tax laws and regulations - - 53,316 - 45,040 Tax effects of pre-tax items above - - - (1,802 ) - Adjusted net earnings $ 98,761 $ 134,120 $ 89,839 $ 454,247 $ 337,296 Adjusted weighted average diluted shares outstanding 142,247 143,447 145,617 143,915 145,495 Adjusted earnings per diluted share $ 0.69 $ 0.93 $ 0.62 $ 3.16 $ 2.32
VISHAY INTERTECHNOLOGY, INC. Reconciliation of Free Cash (Unaudited - In thousands) Fiscal quarters ended Years ended December 31, 2022 October 1, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net cash provided by operating activities $ 166,496 $ 209,480 $ 146,652 $ 484,288 $ 457,104 Proceeds from sale of property and equipment 726 95 60 1,198 1,317 Less: Capital expenditures (153,133 ) (76,475 ) (100,216 ) (325,308 ) (218,372 ) Free cash $ 14,089 $ 133,100 $ 46,496 $ 160,178 $ 240,049
VISHAY INTERTECHNOLOGY, INC. Reconciliation of EBITDA and Adjusted EBITDA (Unaudited - In thousands) Fiscal quarters ended Years ended December 31, 2022 October 1, 2022 December 31, 2021 December 31, 2022 December 31, 2021 GAAP net earnings attributable to Vishay stockholders $ 72,788 $ 140,061 $ 36,523 $ 428,810 $ 297,970 Net earnings attributable to noncontrolling interests 413 502 308 1,673 967 Net earnings $ 73,201 $ 140,563 $ 36,831 $ 430,483 $ 298,937 Interest expense $ 4,490 $ 4,110 $ 4,292 $ 17,129 $ 17,538 Interest income (4,374 ) (1,836 ) (362 ) (7,560 ) (1,269 ) Income taxes 54,999 40,566 77,027 163,022 135,673 Depreciation and amortization 42,690 40,334 41,942 163,991 167,037 EBITDA $ 171,006 $ 223,737 $ 159,730 $ 767,065 $ 617,916 Reconciling items Impact of the COVID-19 pandemic $ - $ - $ - $ 7,207 $ - Adjusted EBITDA $ 171,006 $ 223,737 $ 159,730 $ 774,272 $ 617,916 Adjusted EBITDA margin** 20.0 % 24.2 % 18.9 % 22.1 % 19.1 % ** Adjusted EBITDA as a percentage of net revenues