VSH Vishay Intertechnology Inc.

Vishay Reports Results for First Quarter 2022

Vishay Reports Results for First Quarter 2022

  • Revenues Q1 of $854 million.

  • Gross margin Q1 of 30.3%.
  • Operating margin Q1 of 17.1%.
  • EPS Q1 of $0.71.
  • Free Cash for the trailing 12 months of $209 million.
  • Total Stockholder Return Q1 of $24.4 million--$14.5 million of dividend payments and $9.9 million of stock repurchases.
  • Guidance Q2 2022 for revenues of $830 to $870 million and at a gross margin of 28.1% plus/minus 50 basis points at Q1 exchange rates.

MALVERN, Pa., May 03, 2022 (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 ended April 2, 2022.

Revenues for the fiscal quarter ended April 2, 2022 were $853.8 million, compared to $843.1 million for the fiscal quarter ended December 31, 2021, and $764.6 million for the fiscal quarter ended April 3, 2021.  Net earnings attributable to Vishay stockholders for the fiscal quarter ended April 2, 2022 were $103.6 million, or $0.71 per diluted share, compared to $36.5 million, or $0.25 per diluted share for the fiscal quarter ended December 31, 2021, and $71.4 million, or $0.49 per diluted share for the fiscal quarter ended April 3, 2021.

As summarized on the attached reconciliation schedule, the prior periods presented include items affecting comparability.  Adjusted earnings per diluted share, which exclude these unusual tax items, were $0.71, $0.62, and $0.46 for the fiscal quarters ended April 2, 2022, December 31, 2021, and April 3, 2022, respectively.

Commenting on results for the first quarter 2022, Dr. Gerald Paul, President and Chief Executive Officer stated, “Revenues came in at the high end of our guidance. Despite ongoing increases in transportation costs, metal prices and higher general inflation, Vishay achieved contribution margins at the higher end of the historical range, supported by continued price increases and positive singularities. In the coming quarters we anticipate to continue to reach historical levels.”

Dr. Paul continued, “All regions and major end markets remain strong. There is no decline visible at this point in time. The supply chain remains lean. Sales of Vishay’s products to end customers by our distribution partners increased again to all-time highs in all regions while inventories of our products at distribution partners stayed flat. For the year we anticipate solid generation of free cash despite capital expenditures running at higher levels than in past years.”

Commenting on the outlook Dr. Paul stated, “Taking into account production challenges related to COVID lock-downs in Shanghai in April, we guide for the second quarter 2022 for revenues in the range of $830 to $870 million at a gross margin of 28.1% plus/minus 50 basis points, assuming the same exchange rates versus the dollar as in the first quarter.”

A conference call to discuss Vishay’s first quarter financial results is scheduled for Tuesday, May 3, 2022 at 9:00 a.m. ET. The dial-in number for the conference call is 877-407-0989 ( , if calling from outside the United States) and the access code is 13728314. 

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 . 

There will be a replay of the conference call from 12:00 p.m. ET on Tuesday, May 3, 2022 through 11:59 p.m. ET on Tuesday, May 17, 2022. The telephone number for the replay is ( , if calling from outside the United States or Canada) and the access code is 13728314. 

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 . 

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, margins, product pricing, product demand, anticipated areas of growth, market segment performance, capital expenditures, 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 “guide,” “will,” “expect,” “anticipate,” 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 

Senior Vice President, Corporate Communications 

 

 







VISHAY INTERTECHNOLOGY, INC.      
Summary of Operations      
(Unaudited - In thousands, except per share amounts)      
       
 Fiscal quarters ended 
 April 2, 2022 December 31, 2021 April 3, 2021 
       
Net revenues$853,793  $843,072  $764,632  
Costs of products sold 594,685   613,116   561,683  
Gross profit 259,108   229,956   202,949  
  Gross margin 30.3%  27.3%  26.5% 
       
Selling, general, and administrative expenses 112,855   108,311   105,685  
Operating income 146,253   121,645   97,264  
  Operating margin 17.1%  14.4%  12.7% 
       
Other income (expense):      
  Interest expense (4,222)  (4,292)  (4,376) 
  Other (5,751)  (3,495)  (5,731) 
  Total other income (expense) - net (9,973)  (7,787)  (10,107) 
       
Income before taxes 136,280   113,858   87,157  
       
Income tax expense 32,330   77,027   15,514  
       
Net earnings 103,950   36,831   71,643  
       
Less: net earnings attributable to noncontrolling interests 377   308   208  
       
Net earnings attributable to Vishay stockholders$103,573  $36,523  $71,435  
       
Basic earnings per share attributable to Vishay stockholders$0.71  $0.25  $0.49  
       
Diluted earnings per share attributable to Vishay stockholders$0.71  $0.25  $0.49  
       
Weighted average shares outstanding - basic 145,053   145,019   144,968  
       
Weighted average shares outstanding - diluted 145,553   145,617   145,463  
       
Cash dividends per share$0.100  $0.100  $0.095  





VISHAY INTERTECHNOLOGY, INC.    
Consolidated Condensed Balance Sheets    
(In thousands)    
     
 April 2, 2022 December 31, 2021 
 (Unaudited)   
Assets    
Current assets:    
  Cash and cash equivalents$789,248  $774,108  
  Short-term investments 96,561   146,743  
  Accounts receivable, net 418,288   396,458  
  Inventories:    
    Finished goods 159,909   147,293  
    Work in process 251,722   226,496  
    Raw materials 191,256   162,711  
  Total inventories 602,887   536,500  
     
  Prepaid expenses and other current assets 163,227   156,689  
Total current assets 2,070,211   2,010,498  
     
Property and equipment, at cost:    
  Land 74,237   74,646  
  Buildings and improvements 642,097   639,879  
  Machinery and equipment 2,775,615   2,758,262  
  Construction in progress 129,268   145,828  
  Allowance for depreciation (2,650,810)  (2,639,136) 
  970,407   979,479  
     
Right of use assets 114,094   117,635  
Deferred income taxes 93,497   95,037  
Goodwill 165,032   165,269  
Other intangible assets, net 65,546   67,714  
Other assets 101,382   107,625  
     Total assets$3,580,169  $3,543,257  





VISHAY INTERTECHNOLOGY, INC. 
Consolidated Condensed Balance Sheets (continued) 
(In thousands)    
     
 April 2, 2022 December 31, 2021 
 (Unaudited)   
     
Liabilities and equity    
Current liabilities:    
  Trade accounts payable$235,755  $254,049  
  Payroll and related expenses 156,012   162,694  
  Lease liabilities 23,080   23,392  
  Other accrued expenses 210,531   218,089  
  Income taxes 51,005   35,443  
Total current liabilities 676,383   693,667  
     
Long-term debt less current portion 456,484   455,666  
U.S. transition tax payable 110,681   110,681  
Deferred income taxes 71,435   69,003  
Long-term lease liabilities 96,272   99,987  
Other liabilities 93,261   95,861  
Accrued pension and other postretirement costs 259,531   271,672  
Total liabilities 1,764,047   1,796,537  
     
Equity:    
Vishay stockholders' equity    
  Common stock 13,290   13,271  
  Class B convertible common stock 1,210   1,210  
  Capital in excess of par value 1,349,552   1,347,830  
  Retained earnings 490,776   401,694  
  Treasury stock (at cost) (9,873)  -  
  Accumulated other comprehensive income (loss) (32,177)  (20,252) 
  Total Vishay stockholders' equity 1,812,778   1,743,753  
Noncontrolling interests 3,344   2,967  
Total equity 1,816,122   1,746,720  
Total liabilities and equity$3,580,169  $3,543,257  





VISHAY INTERTECHNOLOGY, INC.    
Consolidated Condensed Statements of Cash Flows    
(Unaudited - In thousands)  
 Three fiscal months ended 
 April 2, 2022 April 3, 2021 
     
Operating activities    
Net earnings$103,950  $71,643  
Adjustments to reconcile net earnings to net cash provided by operating activities:    
      Depreciation and amortization 40,650   42,146  
      (Gain) loss on disposal of property and equipment (59)  (177) 
      Inventory write-offs for obsolescence 5,825   4,784  
      Deferred income taxes 2,347   901  
      Other 8,816   5,728  
      Changes in operating assets and liabilities (127,944)  (67,703) 
Net cash provided by operating activities 33,585   57,322  
     
Investing activities    
Purchase of property and equipment (35,909)  (28,527) 
Proceeds from sale of property and equipment 72   200  
Purchase of short-term investments (7,753)  (12,853) 
Maturity of short-term investments 56,674   29,519  
Other investing activities (199)  347  
Net cash provided by (used in) investing activities 12,885   (11,314) 
     
Financing activities    
Repurchase of convertible debt instruments -   (300) 
Dividends paid to common stockholders (13,259)  (12,608) 
Dividends paid to Class B common stockholders (1,210)  (1,149) 
Repurchase of common stock held in treasury (9,873)  -  
Cash withholding taxes paid when shares withheld for vested equity awards (2,123)  (1,963) 
Net cash used in financing activities (26,465)  (16,020) 
Effect of exchange rate changes on cash and cash equivalents (4,865)  (6,015) 
     
Net increase in cash and cash equivalents 15,140   23,973  
     
Cash and cash equivalents at beginning of period 774,108   619,874  
Cash and cash equivalents at end of period$789,248  $643,847  
     





VISHAY INTERTECHNOLOGY, INC. 
Reconciliation of Adjusted Earnings Per Share 
(Unaudited - In thousands, except per share amounts) 
 Fiscal quarters ended 
 April 2, 2022 December 31, 2021 April 3, 2021 
       
GAAP net earnings attributable to Vishay stockholders$103,573 $36,523 $71,435  
       
Reconciling items affecting tax expense (benefit):      
Changes in tax laws and regulations$- $53,316 $(4,395) 
       
Adjusted net earnings$103,573 $89,839 $67,040  
       
Adjusted weighted average diluted shares outstanding 145,553  145,617  145,463  
       
Adjusted earnings per diluted share$0.71 $0.62 $0.46  
       





VISHAY INTERTECHNOLOGY, INC.      
Reconciliation of Free Cash      
(Unaudited - In thousands)      
 Fiscal quarters ended 
 April 2, 2022 December 31, 2021 April 3, 2021 
Net cash provided by operating activities$33,585  $146,652  $57,322  
Proceeds from sale of property and equipment 72   60   200  
Less: Capital expenditures (35,909)  (100,216)  (28,527) 
Free cash$(2,252) $46,496  $28,995  
       





VISHAY INTERTECHNOLOGY, INC.      
Reconciliation of EBITDA and Adjusted EBITDA      
(Unaudited - In thousands)      
 Fiscal quarters ended 
 April 2, 2022 December 31, 2021 April 3, 2021 
       
GAAP net earnings attributable to Vishay stockholders$103,573  $36,523  $71,435  
Net earnings attributable to noncontrolling interests 377   308   208  
Net earnings$103,950  $36,831  $71,643  
       
Interest expense$4,222  $4,292  $4,376  
Interest income (560)  (362)  (287) 
Income taxes 32,330   77,027   15,514  
Depreciation and amortization 40,650   41,942   42,146  
EBITDA$180,592  $159,730  $133,392  
       
Reconciling items$-  $-  $-  
       
Adjusted EBITDA$180,592  $159,730  $133,392  
       
Adjusted EBITDA margin** 21.2%  18.9%  17.4% 
       
** Adjusted EBITDA as a percentage of net revenues      
       


EN
03/05/2022

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