- Revenues for Q3 2015 $560.7 million
- Operating margin Q3 2015 of (4.3)%, or adjusted operating margin of 7.3%
- EPS Q3 2015 of $(0.19), or adjusted EPS of $0.17
- Impairment of goodwill and long-lived assets of $63.0 million
- Revenues lost due to Tianjin facility temporary shut-down approximately $20 million
- Book-to-bill October above 1
- Guidance for Q4 2015 for revenues of $540 - $580 million and gross margins of 21% to 23%
MALVERN, Pa., Nov. 03, 2015 (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 3, 2015.
Revenues for the fiscal quarter ended October 3, 2015 were $560.7 million, compared to $638.2 million for the fiscal quarter ended September 27, 2014. The net loss attributable to Vishay stockholders for the fiscal quarter ended October 3, 2015 was $(27.7) million, or $(0.19) per share, compared to net earnings attributable to Vishay stockholders of $27.0 million, or $0.17 per diluted share for the fiscal quarter ended September 27, 2014.
Net loss attributable to Vishay stockholders for the fiscal quarter ended October 3, 2015 includes restructuring and severance costs of $2.3 million, impairment of goodwill and long-lived assets charges of $63.0 million, and a loss related to the Tianjin explosion of $5.4 million. Net earnings attributable to Vishay stockholders for the fiscal quarter ended September 27, 2014 include restructuring and severance costs of $3.5 million and U.S. pension settlement charges of $15.6 million. These items are summarized on the attached reconciliation schedule. Adjusted earnings per diluted share, which exclude these items, were $0.17 and $0.26 for the fiscal quarters ended October 3, 2015 and September 27, 2014, respectively.
Commenting on the results for the third quarter 2015, Dr. Gerald Paul, President and Chief Executive Officer, stated, “As expected, the general economic conditions were not favorable in general. Additionally, the temporary shutdown of our Tianjin facility, caused by the shockwave of the explosion in the port of Tianjin, resulted in lost revenues of approximately $20 million in the quarter. Despite the current headwinds, we expect a free cash flow generation of substantially over $100 million for the year 2015.”
Dr. Gerald Paul continued, “The Capella business, acquired in 2014, has not performed as expected in its traditional end market of smart phones. We recorded impairment charges of $57.6 million to write down the related assets to their fair value. We still expect that the addition of Capella will, in the mid and long term, add considerable value to our entire optoelectronic components business through the creation of an in-house design capability and so to strengthen our position and potential for growing our optoelectronic business.”
Dr. Gerald Paul continued, “Our restructuring programs—the announced global fixed cost reduction and the rationalization in MOSFETs—are on plan. They will noticeably improve Vishay’s results in the future, independently of the economic environment. We believe in a cyclical rebound of the economy in the course of next year.”
Commenting on the outlook for the fourth quarter 2015 Dr. Paul stated, “We expect a continuation of the inventory reduction at distribution during the quarter and guide for revenues of $540 to $580 million and for gross margins of 21% to 23%, based on current exchange rates.”
A conference call to discuss third quarter financial results is scheduled for Tuesday, November 3, 2015 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 conference ID is 57522492.
There will be a replay of the conference call from 12:00 p.m. ET on Tuesday, November 3, 2015 through 11:30 p.m. ET on Tuesday, November 10, 2015. The telephone number for the replay is 800-585-8367 (+1 855-859-2056 or 404-537-3406 if calling from outside the United States or Canada) and the access code is 57522492.
There will also be a live audio webcast of the conference call. This can be accessed directly from the Investor Relations section of the Vishay website at https://ir.vishay.com .
About Vishay
Vishay Intertechnology, Inc., a Fortune 1000 Company listed on the NYSE (VSH), is one of the world's largest manufacturers of discrete semiconductors (diodes, MOSFETs, and infrared optoelectronics) and passive electronic components (resistors, inductors, and capacitors). These components are used in virtually all types of electronic devices and equipment, in the industrial, computing, automotive, consumer, telecommunications, military, aerospace, power supplies, and medical markets. Vishay’s product innovations, successful acquisition strategy, and "one-stop shop" service have made it a global industry leader. Vishay can be found on the Internet 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; 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, 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 term "EBITDA" is not defined in GAAP, the measure is 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 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, cash generation, internal growth and results, Capella’s future performance and the growth of the Company’s optoelectronics business, cost reduction programs and their financial impact, 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; delays or difficulties in implementing our cost reduction strategies; 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; uncertainty related to the effects of changes in foreign currency exchange rates; 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.
| VISHAY INTERTECHNOLOGY, INC. | ||||||||||||||||
| Summary of Operations | ||||||||||||||||
| (Unaudited - In thousands, except per share amounts) | ||||||||||||||||
| Fiscal quarters ended | ||||||||||||||||
| October 3, 2015 | July 4, 2015 | September 27, 2014 | ||||||||||||||
| Net revenues | $ | 560,654 | $ | 590,470 | $ | 638,211 | ||||||||||
| Costs of products sold | 430,510 | 448,988 | 479,819 | |||||||||||||
| Gross profit | 130,144 | 141,482 | 158,392 | |||||||||||||
| Gross margin | 23.2 | % | 24.0 | % | 24.8 | % | ||||||||||
| Selling, general, and administrative expenses | 88,995 | 91,652 | 93,837 | |||||||||||||
| Restructuring and severance costs | 2,324 | 5,660 | 3,508 | |||||||||||||
| Impairment of goodwill and long-lived assets | 62,980 | - | - | |||||||||||||
| U.S. pension settlement charges | - | - | 15,588 | |||||||||||||
| Operating income (loss) | (24,155 | ) | 44,170 | 45,459 | ||||||||||||
| Operating margin | -4.3 | % | 7.5 | % | 7.1 | % | ||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (6,677 | ) | (6,736 | ) | (6,167 | ) | ||||||||||
| Other | 3,240 | 1,160 | (474 | ) | ||||||||||||
| Loss related to Tianjin explosion | (5,350 | ) | - | - | ||||||||||||
| Total other income (expense) - net | (8,787 | ) | (5,576 | ) | (6,641 | ) | ||||||||||
| Income (loss) before taxes | (32,942 | ) | 38,594 | 38,818 | ||||||||||||
| Income taxes | (5,392 | ) | 12,076 | 11,841 | ||||||||||||
| Net earnings (loss) | (27,550 | ) | 26,518 | 26,977 | ||||||||||||
| Less: net earnings attributable to noncontrolling interests | 116 | 250 | 6 | |||||||||||||
| Net earnings (loss) attributable to Vishay stockholders | $ | (27,666 | ) | $ | 26,268 | $ | 26,971 | |||||||||
| Basic earnings (loss) per share attributable to Vishay stockholders | $ | (0.19 | ) | $ | 0.18 | $ | 0.18 | |||||||||
| Diluted earnings (loss) per share attributable to Vishay stockholders | $ | (0.19 | ) | $ | 0.17 | $ | 0.17 | |||||||||
| Weighted average shares outstanding - basic | 147,701 | 147,700 | 147,569 | |||||||||||||
| Weighted average shares outstanding - diluted | 147,701 | 151,700 | 155,546 | |||||||||||||
| Cash dividends per share | $ | 0.06 | $ | 0.06 | $ | 0.06 | ||||||||||
| VISHAY INTERTECHNOLOGY, INC. | ||||||||||
| Summary of Operations | ||||||||||
| (Unaudited - In thousands, except per share amounts) | ||||||||||
| Nine fiscal months ended | ||||||||||
| October 3, 2015 | September 27, 2014 | |||||||||
| Net revenues | $ | 1,744,560 | $ | 1,882,518 | ||||||
| Costs of products sold | 1,327,896 | 1,414,750 | ||||||||
| Gross profit | 416,664 | 467,768 | ||||||||
| Gross margin | 23.9 | % | 24.8 | % | ||||||
| Selling, general, and administrative expenses | 276,717 | 287,300 | ||||||||
| Restructuring and severance costs | 9,394 | 18,926 | ||||||||
| Impairment of goodwill and long-lived assets | 62,980 | - | ||||||||
| U.S. pension settlement charges | - | 15,588 | ||||||||
| Operating income | 67,573 | 145,954 | ||||||||
| Operating margin | 3.9 | % | 7.8 | % | ||||||
| Other income (expense): | ||||||||||
| Interest expense | (19,774 | ) | (17,968 | ) | ||||||
| Other | 7,860 | 1,046 | ||||||||
| Loss related to Tianjin explosion | (5,350 | ) | - | |||||||
| Total other income (expense) - net | (17,264 | ) | (16,922 | ) | ||||||
| Income before taxes | 50,309 | 129,032 | ||||||||
| Income taxes | 20,416 | 40,259 | ||||||||
| Net earnings | 29,893 | 88,773 | ||||||||
| Less: net earnings attributable to noncontrolling interests | 592 | 350 | ||||||||
| Net earnings attributable to Vishay stockholders | $ | 29,301 | $ | 88,423 | ||||||
| Basic earnings per share attributable to Vishay stockholders | $ | 0.20 | $ | 0.60 | ||||||
| Diluted earnings per share attributable to Vishay stockholders | $ | 0.19 | $ | 0.57 | ||||||
| Weighted average shares outstanding - basic | 147,700 | 147,565 | ||||||||
| Weighted average shares outstanding - diluted | 151,607 | 154,142 | ||||||||
| Cash dividends per share | $ | 0.18 | $ | 0.18 | ||||||
| VISHAY INTERTECHNOLOGY, INC. | ||||||||
| Consolidated Condensed Balance Sheets | ||||||||
| (In thousands) | ||||||||
| October 3, 2015 | December 31, 2014 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 390,305 | $ | 592,172 | ||||
| Short-term investments | 688,987 | 514,776 | ||||||
| Accounts receivable, net | 282,228 | 271,554 | ||||||
| Inventories: | ||||||||
| Finished goods | 113,881 | 113,361 | ||||||
| Work in process | 207,940 | 185,769 | ||||||
| Raw materials | 124,970 | 125,464 | ||||||
| Total inventories | 446,791 | 424,594 | ||||||
| Deferred income taxes | 29,160 | 17,815 | ||||||
| Prepaid expenses and other current assets | 96,279 | 105,539 | ||||||
| Total current assets | 1,933,750 | 1,926,450 | ||||||
| Property and equipment, at cost: | ||||||||
| Land | 90,079 | 91,844 | ||||||
| Buildings and improvements | 559,757 | 560,926 | ||||||
| Machinery and equipment | 2,381,285 | 2,368,046 | ||||||
| Construction in progress | 71,415 | 82,684 | ||||||
| Allowance for depreciation | (2,253,961 | ) | (2,205,405 | ) | ||||
| 848,575 | 898,095 | |||||||
| Goodwill | 138,403 | 144,359 | ||||||
| Other intangible assets, net | 107,778 | 186,613 | ||||||
| Other assets | 143,045 | 143,256 | ||||||
| Total assets | $ | 3,171,551 | $ | 3,298,773 | ||||
| VISHAY INTERTECHNOLOGY, INC. | |||||||||
| Consolidated Condensed Balance Sheets (continued) | |||||||||
| (In thousands) | |||||||||
| October 3, 2015 | December 31, 2014 | ||||||||
| (unaudited) | |||||||||
| Liabilities and stockholders' equity | |||||||||
| Current liabilities: | |||||||||
| Notes payable to banks | $ | 11 | $ | 18 | |||||
| Trade accounts payable | 148,889 | 174,451 | |||||||
| Payroll and related expenses | 120,680 | 120,023 | |||||||
| Other accrued expenses | 155,829 | 137,576 | |||||||
| Income taxes | 25,646 | 24,671 | |||||||
| Total current liabilities | 451,055 | 456,739 | |||||||
| Long-term debt less current portion | 431,766 | 454,922 | |||||||
| Deferred income taxes | 161,546 | 178,900 | |||||||
| Other liabilities | 65,510 | 76,811 | |||||||
| Accrued pension and other postretirement costs | 277,943 | 300,524 | |||||||
| Total liabilities | 1,387,820 | 1,467,896 | |||||||
| Equity: | |||||||||
| Vishay stockholders' equity | |||||||||
| Common stock | 13,544 | 13,532 | |||||||
| Class B convertible common stock | 1,213 | 1,213 | |||||||
| Capital in excess of par value | 2,057,552 | 2,055,246 | |||||||
| Retained earnings (accumulated deficit) | (172,770 | ) | (175,485 | ) | |||||
| Accumulated other comprehensive income (loss) | (121,186 | ) | (69,140 | ) | |||||
| Total Vishay stockholders' equity | 1,778,353 | 1,825,366 | |||||||
| Noncontrolling interests | 5,378 | 5,511 | |||||||
| Total equity | 1,783,731 | 1,830,877 | |||||||
| Total liabilities and equity | $ | 3,171,551 | $ | 3,298,773 | |||||
| VISHAY INTERTECHNOLOGY, INC. | ||||||||
| Consolidated Condensed Statements of Cash Flows | ||||||||
| (Unaudited - In thousands) | ||||||||
| Nine fiscal months ended | ||||||||
| October 3, 2015 | September 27, 2014 | |||||||
| Operating activities | ||||||||
| Net earnings | $ | 29,893 | $ | 88,773 | ||||
| Adjustments to reconcile net earnings to | ||||||||
| net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 134,281 | 132,344 | ||||||
| (Gain) loss on disposal of property and equipment | (116 | ) | (65 | ) | ||||
| Accretion of interest on convertible debentures | 3,167 | 2,930 | ||||||
| Inventory write-offs for obsolescence | 15,348 | 15,101 | ||||||
| Impairment of goodwill and long-lived assets | 62,980 | - | ||||||
| U.S. pension settlement charges | - | 15,588 | ||||||
| Deferred income taxes | (32,523 | ) | 6,869 | |||||
| Other | (1,939 | ) | (2,654 | ) | ||||
| Changes in operating assets and liabilities, | ||||||||
| net of effects of businesses acquired | (57,522 | ) | (61,875 | ) | ||||
| Net cash provided by operating activities | 153,569 | 197,011 | ||||||
| Investing activities | ||||||||
| Purchase of property and equipment | (86,767 | ) | (90,507 | ) | ||||
| Proceeds from sale of property and equipment | 1,989 | 2,345 | ||||||
| Purchase of businesses, net of cash acquired | - | (198,186 | ) | |||||
| Purchase of short-term investments | (362,595 | ) | (335,341 | ) | ||||
| Maturity of short-term investments | 161,611 | 330,734 | ||||||
| Sale of other investments | 400 | - | ||||||
| Other investing activities | (3,464 | ) | 1,734 | |||||
| Net cash provided by (used in) investing activities | (288,826 | ) | (289,221 | ) | ||||
| Financing activities | ||||||||
| Principal payments on long-term debt and capital lease obligations | - | (11 | ) | |||||
| Net proceeds (payments) on revolving credit lines | (27,000 | ) | 73,000 | |||||
| Net changes in short-term borrowings | (7 | ) | 14 | |||||
| Dividends paid to common stockholders | (24,378 | ) | (24,358 | ) | ||||
| Dividends paid to Class B common stockholders | (2,184 | ) | (2,183 | ) | ||||
| Excess tax benefit from RSUs vested | 21 | - | ||||||
| Proceeds from stock options exercised | - | 50 | ||||||
| Distributions to noncontrolling interests | (725 | ) | (547 | ) | ||||
| Other financing activities | - | (1,323 | ) | |||||
| Net cash provided by (used in) financing activities | (54,273 | ) | 44,642 | |||||
| Effect of exchange rate changes on cash and cash equivalents | (12,337 | ) | (17,478 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | (201,867 | ) | (65,046 | ) | ||||
| Cash and cash equivalents at beginning of period | 592,172 | 640,348 | ||||||
| Cash and cash equivalents at end of period | $ | 390,305 | $ | 575,302 | ||||
| VISHAY INTERTECHNOLOGY, INC. | |||||||||||||||||||||||||
| Reconciliation of Adjusted Earnings Per Share | |||||||||||||||||||||||||
| (Unaudited - In thousands, except per share amounts) | |||||||||||||||||||||||||
| Fiscal quarters ended | Nine fiscal months ended | ||||||||||||||||||||||||
| October 3, 2015 | July 4, 2015 | September 27, 2014 | October 3, 2015 | September 27, 2014 | |||||||||||||||||||||
| GAAP net earnings (loss) attributable to Vishay stockholders | $ | (27,666 | ) | $ | 26,268 | $ | 26,971 | $ | 29,301 | $ | 88,423 | ||||||||||||||
| Reconciling items affecting operating margin: | |||||||||||||||||||||||||
| Restructuring and severance costs | $ | 2,324 | $ | 5,660 | $ | 3,508 | $ | 9,394 | $ | 18,926 | |||||||||||||||
| Impairment of goodwill and long-lived assets | 62,980 | - | - | 62,980 | - | ||||||||||||||||||||
| U.S. pension settlement charges | - | - | 15,588 | - | 15,588 | ||||||||||||||||||||
| Reconciling items other income (expense): | |||||||||||||||||||||||||
| Loss related to Tianjin explosion | $ | 5,350 | $ | - | $ | - | $ | 5,350 | $ | - | |||||||||||||||
| Reconciling items affecting tax expense (benefit): | |||||||||||||||||||||||||
| Tax effects of items above and other one-time tax expense (benefit) | $ | (16,831 | ) | $ | (1,988 | ) | $ | (6,011 | ) | $ | (19,327 | ) | $ | (10,855 | ) | ||||||||||
| Adjusted net earnings | $ | 26,157 | $ | 29,940 | $ | 40,056 | $ | 87,698 | $ | 112,082 | |||||||||||||||
| Adjusted weighted average diluted shares outstanding | 150,455 | 151,700 | 155,546 | 151,607 | 154,142 | ||||||||||||||||||||
| Adjusted earnings per diluted share* | $ | 0.17 | $ | 0.20 | $ | 0.26 | $ | 0.58 | $ | 0.73 | |||||||||||||||
| * Includes add-back of interest on exchangeable notes in periods where the notes are dilutive. | |||||||||||||||||||||||||
| VISHAY INTERTECHNOLOGY, INC. | |||||||||||||||||||
| Reconciliation of EBITDA and Adjusted EBITDA | |||||||||||||||||||
| (Unaudited - In thousands) | |||||||||||||||||||
| Fiscal quarters ended | Nine fiscal months ended | ||||||||||||||||||
| October 3, 2015 | July 4, 2015 | September 27, 2014 | October 3, 2015 | September 27, 2014 | |||||||||||||||
| GAAP net earnings (loss) attributable to Vishay stockholders | $ | (27,666 | ) | $ | 26,268 | $ | 26,971 | $ | 29,301 | $ | 88,423 | ||||||||
| Net earnings attributable to noncontrolling interests | 116 | 250 | 6 | 592 | 350 | ||||||||||||||
| Net earnings (loss) | $ | (27,550 | ) | $ | 26,518 | $ | 26,977 | $ | 29,893 | $ | 88,773 | ||||||||
| Interest expense | $ | 6,677 | $ | 6,736 | $ | 6,167 | $ | 19,774 | $ | 17,968 | |||||||||
| Interest income | (1,115 | ) | (1,028 | ) | (1,172 | ) | (3,340 | ) | (3,656 | ) | |||||||||
| Income taxes | (5,392 | ) | 12,076 | 11,841 | 20,416 | 40,259 | |||||||||||||
| Depreciation and amortization | 44,096 | 44,775 | 45,413 | 134,281 | 132,344 | ||||||||||||||
| EBITDA | $ | 16,716 | $ | 89,077 | $ | 89,226 | $ | 201,024 | $ | 275,688 | |||||||||
| Reconciling items | |||||||||||||||||||
| Restructuring and severance costs | $ | 2,324 | $ | 5,660 | $ | 3,508 | $ | 9,394 | $ | 18,926 | |||||||||
| Impairment of goodwill and long-lived assets | 62,980 | - | - | 62,980 | - | ||||||||||||||
| U.S. pension settlement charges | - | - | 15,588 | - | 15,588 | ||||||||||||||
| Loss related to Tianjin explosion | 5,350 | - | - | 5,350 | - | ||||||||||||||
| Adjusted EBITDA | $ | 87,370 | $ | 94,737 | $ | 108,322 | $ | 278,748 | $ | 310,202 | |||||||||
| Adjusted EBITDA margin** | 15.6 | % | 16.0 | % | 17.0 | % | 16.0 | % | 16.5 | % | |||||||||
| ** Adjusted EBITDA as a percentage of net revenues | |||||||||||||||||||
Contact: Vishay Intertechnology, Inc. Peter G. Henrici Senior Vice President, Corporate Communications +1-610-644-1300
