VSH Vishay Intertechnology

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 second quarter ended June 29, 2024.

Highlights

• 2Q 2024 revenues of $741.2 million
• Gross margin was 22.0% and included the negative impact of approximately 170 basis points related to the addition of Newport
• EPS of $0.17
• 2Q 2024 book-to-bill of 0.86 with book-to-bill of 0.82 for semiconductors and 0.90 for passive components
• Backlog at quarter end was 4.6 months

“During the second quarter, we executed well on our Vishay 3.0 strategic plan, deepening our customer engagements supported by capacity that has landed and that we will continue to expand, and advancing our silicon carbide strategy as we prepare for the megatrends in sustainability and e-mobility,” said Joel Smejkal, President and CEO. “Revenue, including a full quarter of Newport, was flat quarter over quarter, primarily reflecting schedule agreement adjustments by automotive Tier 1 customers. At mid-year 2024, it is apparent that the industry recovery is taking longer than we had expected at the beginning of the year. As a result, we are adjusting the timetable of the Itzehoe, Germany expansion project beyond 2024 while holding to our planned capital investment of $2.6 billion between 2023 and 2028. For 2024, we now plan to invest between $360 million to $390 million in capex.”

3Q 2024 OutlookFor the third quarter of 2024, management expects revenues in the range of $745 million +/- $20 million, with gross profit margin in the range of 21.0% +/- 50 basis points, including the negative impact of approximately 175 to 200 basis points from the addition of Newport.

A conference call to discuss Vishay’s second quarter financial results is scheduled for Wednesday, August 7, 2024 at 9:00 a.m. ET. To participate in the live conference call, please pre-register at https://register.vevent.com/register/BI38004aee85364014b94cacc38200c3f4. 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 VishayVishay 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 free cash; earnings before interest, taxes, depreciation and amortization ("EBITDA"); and 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 free cash, EBITDA, and 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. The calculations of these measures 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 "intend," "suggest," "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 (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; that the Newport wafer 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 HenriciExecutive Vice President – Corporate Development+1-610-644-1300

VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands, except per share amounts)
	Fiscal quarters ended
	June 29, 2024				March 30, 2024				July 1, 2023
Net revenues	$	741,239			$	746,279			$	892,110
Costs of products sold		578,369				575,872				634,637
Gross profit		162,870				170,407				257,473
Gross margin		22.0	%			22.8	%			28.9	%
Selling, general, and administrative expenses		124,953				127,736				122,857
Operating income		37,917				42,671				134,616
Operating margin		5.1	%			5.7	%			15.1	%
Other income (expense):
Interest expense		(6,657	)			(6,496	)			(6,404	)
Other		5,011				8,087				5,257
Total other income (expense) - net		(1,646	)			1,591				(1,147	)
Income before taxes		36,271				44,262				133,469
Income tax expense		12,391				12,819				38,054
Net earnings		23,880				31,443				95,415
Less: net earnings attributable to noncontrolling interests		347				519				377
Net earnings attributable to Vishay stockholders	$	23,533			$	30,924			$	95,038
Basic earnings per share attributable to Vishay stockholders	$	0.17			$	0.22			$	0.68
Diluted earnings per share attributable to Vishay stockholders	$	0.17			$	0.22			$	0.68
Weighted average shares outstanding - basic		137,326				137,726				139,764
Weighted average shares outstanding - diluted		138,084				138,476				140,478
Cash dividends per share	$	0.10			$	0.10			$	0.10

VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands, except per share amounts)
	Six fiscal months ended
	June 29, 2024				July 1, 2023
Net revenues	$	1,487,518			$	1,763,156
Costs of products sold		1,154,241				1,226,970
Gross profit		333,277				536,186
Gross margin		22.4	%			30.4	%
Selling, general, and administrative expenses		252,689				243,002
Operating income		80,588				293,184
Operating margin		5.4	%			16.6	%
Other income (expense):
Interest expense		(13,153	)			(11,524	)
Other		13,098				8,586
Total other income (expense) - net		(55	)			(2,938	)
Income before taxes		80,533				290,246
Income tax expense		25,210				82,642
Net earnings		55,323				207,604
Less: net earnings attributable to noncontrolling interests		866				785
Net earnings attributable to Vishay stockholders	$	54,457			$	206,819
Basic earnings per share attributable to Vishay stockholders	$	0.40			$	1.48
Diluted earnings per share attributable to Vishay stockholders	$	0.39			$	1.47
Weighted average shares outstanding - basic		137,525				140,201
Weighted average shares outstanding - diluted		138,279				140,865
Cash dividends per share	$	0.20			$	0.20

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(Unaudited - In thousands)
	June 29, 2024				December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	672,731			$	972,719
Short-term investments		15,320				35,808
Accounts receivable, net		424,512				426,674
Inventories:
Finished goods		172,353				167,083
Work in process		280,490				267,339
Raw materials		218,480				213,098
Total inventories		671,323				647,520
Prepaid expenses and other current assets		213,331				214,443
Total current assets		1,997,217				2,297,164
Property and equipment, at cost:
Land		84,036				77,006
Buildings and improvements		752,194				719,387
Machinery and equipment		3,226,301				3,053,868
Construction in progress		283,024				290,593
Allowance for depreciation		(2,888,004	)			(2,846,208	)
		1,457,551				1,294,646
Right of use assets		124,878				126,829
Deferred income taxes		135,752				137,394
Goodwill		250,580				201,416
Other intangible assets, net		86,895				72,333
Other assets		99,828				110,141
Total assets	$	4,152,701			$	4,239,923

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets (continued)
(Unaudited - In thousands)
	June 29, 2024				December 31, 2023
Liabilities and equity
Current liabilities:
Trade accounts payable	$	198,527			$	191,002
Payroll and related expenses		152,423				161,940
Lease liabilities		27,502				26,485
Other accrued expenses		241,961				239,350
Income taxes		49,546				73,098
Total current liabilities		669,959				691,875
Long-term debt less current portion		820,622				818,188
U.S. transition tax payable		-				47,027
Deferred income taxes		108,886				95,776
Long-term lease liabilities		98,907				102,830
Other liabilities		85,306				87,918
Accrued pension and other postretirement costs		187,575				195,503
Total liabilities		1,971,255				2,039,117
Equity:
Vishay stockholders' equity
Common stock		13,358				13,319
Class B convertible common stock		1,210				1,210
Capital in excess of par value		1,296,721				1,291,499
Retained earnings		1,068,351				1,041,372
Treasury stock (at cost)		(186,816	)			(161,656	)
Accumulated other comprehensive income (loss)		(16,969	)			10,337
Total Vishay stockholders' equity		2,175,855				2,196,081
Noncontrolling interests		5,591				4,725
Total equity		2,181,446				2,200,806
Total liabilities and equity	$	4,152,701			$	4,239,923

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Cash Flows
(Unaudited - In thousands)
	Six fiscal months ended
	June 29, 2024				July 1, 2023
Operating activities
Net earnings	$	55,323			$	207,604
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		101,677				87,694
Gain on disposal of property and equipment		(1,091	)			(495	)
Inventory write-offs for obsolescence		19,051				18,023
Stock compensation expense		9,293				6,082
Change in U.S. transition tax liability		(37,622	)			(27,670	)
Change in repatriation tax liability		(15,000	)			-
Deferred income taxes		5,589				16,166
Other		(632	)			(811	)
Changes in operating assets and liabilities		(81,107	)			(69,461	)
Net cash provided by operating activities		55,481				237,132
Investing activities
Purchase of property and equipment		(115,648	)			(117,250	)
Proceeds from sale of property and equipment		1,265				1,013
Purchase and deposits for businesses, net of cash acquired		(200,185	)			(5,003	)
Purchase of short-term investments		(59,638	)			(41	)
Maturity of short-term investments		80,110				293,282
Other investing activities		(1,220	)			(892	)
Net cash provided by (used in) investing activities		(295,316	)			171,109
Financing activities
Net proceeds on revolving credit facility		-				143,000
Debt issuance costs		-				(6,120	)
Dividends paid to common stockholders		(25,033	)			(25,538	)
Dividends paid to Class B common stockholders		(2,419	)			(2,419	)
Repurchase of common stock held in treasury		(25,160	)			(40,399	)
Distributions to noncontrolling interests		-				(867	)
Cash withholding taxes paid when shares withheld for vested equity awards		(4,058	)			(3,653	)
Net cash provided by (used in) financing activities		(56,670	)			64,004
Effect of exchange rate changes on cash and cash equivalents		(3,483	)			6,350
Net increase (decrease) in cash and cash equivalents		(299,988	)			478,595
Cash and cash equivalents at beginning of period		972,719				610,825
Cash and cash equivalents at end of period	$	672,731			$	1,089,420

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of Free Cash
(Unaudited - In thousands)
	Fiscal quarters ended												Six fiscal months ended
	June 29, 2024				March 30, 2024				July 1, 2023				June 29, 2024				July 1, 2023
Net cash provided by operating activities	$	(24,730	)		$	80,211			$	107,239			$	55,481			$	237,132
Proceeds from sale of property and equipment		514				751				687				1,265				1,013
Less: Capital expenditures		(62,564	)			(53,084	)			(71,676	)			(115,648	)			(117,250	)
Free cash	$	(86,780	)		$	27,878			$	36,250			$	(58,902	)		$	120,895

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of EBITDA
(Unaudited - In thousands)
	Fiscal quarters ended												Six fiscal months ended
	June 29, 2024				March 30, 2024				July 1, 2023				June 29, 2024				July 1, 2023
GAAP net earnings attributable to Vishay stockholders	$	23,533			$	30,924			$	95,038			$	54,457			$	206,819
Net earnings attributable to noncontrolling interests		347				519				377				866				785
Net earnings	$	23,880			$	31,443			$	95,415			$	55,323			$	207,604
Interest expense	$	6,657			$	6,496			$	6,404			$	13,153			$	11,524
Interest income		(6,663	)			(9,053	)			(6,292	)			(15,716	)			(12,236	)
Income taxes		12,391				12,819				38,054				25,210				82,642
Depreciation and amortization		52,150				49,527				44,393				101,677				87,694
EBITDA	$	88,415			$	91,232			$	177,974			$	179,647			$	377,228
EBITDA margin**		11.9	%			12.2	%			19.9	%			12.1	%			21.4	%
** EBITDA as a percentage of net revenues