Vishay Reports Results for Fourth Quarter and Year 2012

Vishay Reports Results for Fourth Quarter and Year 2012

  • Revenues for Q4 2012 $531 million and for year 2012 $2,230 million

  • EPS Q4 2012 of $0.14, or adjusted EPS of $0.11 excluding one-time tax benefits

  • EPS for the year 2012 of $0.79, or adjusted EPS of $0.71 excluding gain on sale of property and one-time tax benefits

  • Cash from operations for the year 2012 of $287 million and capital expenditures of $150 million

  • Book-to-bill at 1.14 for January 2013

MALVERN, Pa.--(BUSINESS WIRE)-- Vishay Intertechnology, Inc. (NYS: VSH) , one of the world's largest manufacturers of discrete semiconductors and passive components, today announced its results for the year and fiscal quarter ended December 31, 2012.

Revenues for the year ended December 31, 2012 were $2,230.1 million, compared to $2,594.0 million for the year ended December 31, 2011. The net earnings attributable to Vishay stockholders for the year ended December 31, 2012 were $122.7 million, or $0.79 per diluted share, compared to $238.8 million, or $1.42 per diluted share for the year ended December 31, 2011.


Revenues for the fiscal quarter ended December 31, 2012 were $530.6 million, compared to $551.4 million for the fiscal quarter ended December 31, 2011. The net earnings attributable to Vishay stockholders for the fiscal quarter ended December 31, 2012 were $21.0 million, or $0.14 per diluted share, compared to $31.0 million, or $0.19 per diluted share for the fiscal quarter ended December 31, 2011.

Net earnings attributable to Vishay stockholders for the fiscal quarters ended December 31, 2012 and December 31, 2011 include one-time tax benefits primarily related to the release of deferred tax valuation allowances in various jurisdictions. The years ended December 31, 2012 and 2011 include other items affecting comparability. These items are summarized on the attached reconciliation schedule. Adjusted net earnings per diluted share, which exclude these items, were $0.11 and $0.71 for the fiscal quarter and year ended December 31, 2012, respectively, and $0.15 and $1.46 for the fiscal quarter and year ended December 31, 2011, respectively.

Commenting on the results for the fourth quarter 2012, Dr. Gerald Paul, President and Chief Executive Officer, stated, "As expected the fourth quarter 2012 was the weakest quarter of the year. But the order intake in the fourth quarter 2012 was higher than in the third quarter 2012 or in the fourth quarter 2011. The normal levels of inventory in the supply chain and a higher degree of confidence at our distribution customers might indicate a potential turn-around of the business. This is supported by a strong book-to-bill ratio for January."

Commenting on the results for the year 2012, Dr. Gerald Paul, stated, "Year 2012 was a rough year for Vishay and the electronics industry, as we were exposed to the economic fluctuations of the world economy. Yet Vishay generated cash flows from operations of $287 and invested $150 million in capital expenditures, while continuing to successfully pursue our goals - expanding manufacturing capacities in critical product lines; strengthening our research and development and design-in efforts; and expanding our sales presence in Asia. Cash flows from operations have been in excess of $200 million for each of the last 11 years, through both good and challenging economic conditions."

Commenting on the outlook for the first quarter 2013 Dr. Paul stated, "Based on current order trends, we guide for revenues of $520 to $560 million at improved gross margins that benefit from higher volumes and efficiencies."

A conference call to discuss fourth quarter and year ending financial results is scheduled for Tuesday, February 5, 2013 at 9:00 AM 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 86063529.

There will be a replay of the conference call from 12:00 PM ET on Tuesday, February 5, 2013 through 11:59 PM ET on Monday, February 11, 2013. 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 86063529.

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 http://ir.vishay.com.

About Vishay

Vishay Intertechnology, Inc., a Fortune 1,000 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 http://www.vishay.com.

This press release includes certain financial measures which are not recognized in accordance with generally accepted accounting principles ("GAAP"), including adjusted net earnings and adjusted earnings per share, 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 and should not be viewed as an alternative to GAAP measures of performance. Non-GAAP measures such as adjusted net earnings and adjusted earnings per share 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 these measures are meaningful to investors because they provide insight with respect to intrinsic operating results of the Company. Reconciling items to arrive at adjusted net earnings represent significant charges or credits that are important to an understanding of the Company's intrinsic operations. These reconciling items are indicated on the accompanying reconciliation schedule 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 acquisition activity, and the general state of the Company, 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; 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

December 31,

2012

September 29,

2012

December 31,

2011

Net revenues

$

530,570

$

572,781

$

551,391

Costs of products sold

421,779

439,227

425,735

Gross profit

108,791

133,554

125,656

Gross margin

20.5

%

23.3

%

22.8

%

Selling, general, and administrative expenses

87,277

89,095

92,091

Operating income

21,514

44,459

33,565

Operating margin

4.1

%

7.8

%

6.1

%

Other income (expense):

Interest expense

(6,339

)

(6,009

)

(5,288

)

Other

1,500

2,726

2,537

Total other income (expense) - net

(4,839

)

(3,283

)

(2,751

)

Income before taxes

16,675

41,176

30,814

Income taxes

(4,462

)

18,687

(388

)

Net earnings

21,137

22,489

31,202

Less: net earnings attributable to noncontrolling interests

162

209

250

Net earnings attributable to Vishay stockholders

$

20,975

$

22,280

$

30,952

Basic earnings per share attributable to Vishay stockholders

$

0.15

$

0.16

$

0.20

Diluted earnings per share attributable to Vishay stockholders

$

0.14

$

0.15

$

0.19

Weighted average shares outstanding - basic

143,273

143,273

157,184

Weighted average shares outstanding - diluted

150,193

150,118

163,863

VISHAY INTERTECHNOLOGY, INC.

Summary of Operations

(In thousands, except per share amounts)

Years ended

December 31,

2012

December 31,

2011

(unaudited)

Net revenues

$

2,230,097

$

2,594,029

Costs of products sold

1,703,424

1,874,043

Gross profit

526,673

719,986

Gross margin

23.6

%

27.8

%

Selling, general, and administrative expenses

349,625

367,623

Gain on sale of property

(12,153

)

-

Executive compensation charges

-

5,762

Operating income

189,201

346,601

Operating margin

8.5

%

13.4

%

Other income (expense):

Interest expense

(22,604

)

(19,277

)

Other

3,440

3,792

Total other income (expense) - net

(19,164

)

(15,485

)

Income before taxes

170,037

331,116

Income taxes

46,506

91,119

Net earnings

123,531

239,997

Less: net earnings attributable to noncontrolling interests

793

1,176

Net earnings attributable to Vishay stockholders

$

122,738

$

238,821

Basic earnings per share attributable to Vishay stockholders

$

0.82

$

1.49

Diluted earnings per share attributable to Vishay stockholders

$

0.79

$

1.42

Weighted average shares outstanding - basic

149,020

160,094

Weighted average shares outstanding - diluted

155,844

168,514

VISHAY INTERTECHNOLOGY, INC.

Consolidated Condensed Balance Sheets

(In thousands)

December 31,

2012

December 31,

2011

Assets

(unaudited)

Current assets:

Cash and cash equivalents

$

697,595

$

749,088

Short-term investments

294,943

249,139

Accounts receivable, net

247,035

270,970

Inventories:

Finished goods

109,571

104,478

Work in process

177,350

181,354

Raw materials

120,728

131,795

Total inventories

407,649

417,627

Deferred income taxes

24,385

24,632

Prepaid expenses and other current assets

119,656

119,220

Total current assets

1,791,263

1,830,676

Property and equipment, at cost:

Land

92,348

91,507

Buildings and improvements

523,091

493,550

Machinery and equipment

2,163,182

2,079,395

Construction in progress

101,570

94,717

Allowance for depreciation

(1,965,639

)

(1,851,264

)

914,552

907,905

Goodwill

34,866

9,051

Other intangible assets, net

133,717

103,927

Other assets

141,879

142,171

Total assets

$

3,016,277

$

2,993,730

VISHAY INTERTECHNOLOGY, INC.

Consolidated Condensed Balance Sheets (continued)

(In thousands)

December 31,

2012

December 31,

2011

(unaudited)

Liabilities and stockholders' equity

Current liabilities:

Notes payable to banks

$

6

$

13

Trade accounts payable

147,936

154,942

Payroll and related expenses

108,353

109,833