Vishay Reports Results for First Quarter 2013

Vishay Reports Results for First Quarter 2013

  • Revenues for Q1 2013 $554 million

  • EPS Q1 2013 of $0.19, or adjusted EPS of $0.18 excluding one-time tax benefit

  • Cash from operations for trailing twelve months Q1 2013 of $288 million and capital expenditures of $154 million

  • Guidance for Q2 2013 for revenues of $570 - $610 million at similar gross margin percent and slightly improved operating margin percent compared to Q1 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 fiscal quarter ended March 30, 2013.

Revenues for the fiscal quarter ended March 30, 2013 were $554.3 million, compared to $538.5 million for the fiscal quarter ended March 31, 2012. The net earnings attributable to Vishay stockholders for the fiscal quarter ended March 30, 2013 were $28.9 million, or $0.19 per diluted share, compared to $33.8 million, or $0.21 per diluted share for the fiscal quarter ended March 31, 2012.


Net earnings attributable to Vishay stockholders for the fiscal quarter ended March 30, 2013 include one-time tax benefits due to the retroactive enactment of the American Taxpayer Relief Act of 2012, signed into law on January 2, 2013. Items affecting comparability for the periods presented are summarized on the attached reconciliation schedule. Adjusted net earnings per diluted share, which exclude these items, were $0.18 and $0.21 for the fiscal quarters ended March 30, 2013 and March 31, 2012, respectively.

Commenting on the results for the first quarter 2013, Dr. Gerald Paul, President and Chief Executive Officer, stated, "In the first quarter Vishay Intertechnology, Inc. benefited from better economic conditions as well as from improved efficiencies and some temporary measures to save fixed costs. In the course of the quarter Vishay experienced a broad based recovery with particular strength of the automotive and industrial end markets. End demand at distribution is recovering: point of sale, the sales of Vishay products by its distributors to end customers, increased 8% quarter over quarter while inventories of Vishay products at its distributors decreased by 7%."

Dr. Gerald Paul continued, "While controlling our fixed costs we continue to pursue our Growth Plan by expanding manufacturing capacities in strategic product lines, by increasing our R&D and design-in efforts, by expanding our sales presence in Asia, and by acquiring specialty businesses."

Commenting on the recent signing of the definitive purchase agreement to acquire MCB Industrie, S.A., a manufacturer of specialty resistors for professional market segments, Marc Zandman, Vishay's Executive Chairman and Chief Business Development Officer, stated, "The planned acquisition of MCB Industrie S.A. will substantially expand and strengthen our resistors portfolio, both in motion sensors for avionics, military, and space applications and in power resistors for energy distribution, traction, and industrial market sectors. It will significantly enhance the existing resistors business of our successful Vishay Sfernice division. Consistent with the goals of our Growth Plan, it will supplement intensified internal growth and increase market share."

Commenting on the outlook for the second quarter 2013 Dr. Paul stated, "Based on current order trends, we guide for revenues of $570 to $610 million at similar gross margin percent and slightly improved operating margin percent compared to the first quarter of 2013."

A conference call to discuss first quarter financial results is scheduled for Tuesday, April 30, 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 31728035.

There will be a replay of the conference call from 10:30 AM ET on Tuesday, April 30, 2013 through 11:59 PM ET on Monday, May 6, 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 31728035.

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 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 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 adjusted net earnings and adjusted net earnings per diluted share 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 to 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, product lines, market share, 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

March 30,

December 31,

March 31,

2013

2012

2012

Net revenues

$

554,254

$

530,570

$

538,547

Costs of products sold

417,520

421,779

401,838

Gross profit

136,734

108,791

136,709

Gross margin

24.7

%

20.5

%

25.4

%

Selling, general, and administrative expenses

91,129

87,277

86,364

Operating income

45,605

21,514

50,345

Operating margin

8.2

%

4.1

%

9.3

%

Other income (expense):

Interest expense

(5,486

)

(6,339

)

(4,717

)

Other

115

1,500

1,308

Total other income (expense) - net

(5,371

)

(4,839

)

(3,409

)

Income before taxes

40,234

16,675

46,936

Income taxes

11,093

(4,462

)

12,861

Net earnings

29,141

21,137

34,075

Less: net earnings attributable to noncontrolling interests

210

162

263

Net earnings attributable to Vishay stockholders

$

28,931

$

20,975

$

33,812

Basic earnings per share attributable to Vishay stockholders

$

0.20

$

0.15

$

0.22

Diluted earnings per share attributable to Vishay stockholders

$

0.19

$

0.14

$

0.21

Weighted average shares outstanding - basic

143,484

143,273

157,199

Weighted average shares outstanding - diluted

150,632

150,193

163,944

VISHAY INTERTECHNOLOGY, INC.

Consolidated Condensed Balance Sheets

(In thousands)

March 30,

December 31,

2013

2012

Assets

(unaudited)

Current assets:

Cash and cash equivalents

$

632,780

$

697,595

Short-term investments

352,199

294,943

Accounts receivable, net

267,349

247,035

Inventories:

Finished goods

104,536

109,571

Work in process

186,935

177,350

Raw materials

127,912

120,728

Total inventories

419,383

407,649

Deferred income taxes

17,922

24,385

Prepaid expenses and other current assets

113,586

119,656

Total current assets

1,803,219

1,791,263

Property and equipment, at cost:

Land

91,614

92,348

Buildings and improvements

521,181

523,091

Machinery and equipment

2,170,652

2,163,182

Construction in progress

81,351

101,570

Allowance for depreciation

(1,977,503

)

(1,965,639

)

887,295

914,552

Goodwill

34,866

34,866

Other intangible assets, net

136,518

133,717

Other assets

135,978

141,879

Total assets

$

2,997,876

$

3,016,277

VISHAY INTERTECHNOLOGY, INC.

Consolidated Condensed Balance Sheets (continued)

(In thousands)

March 30,

December 31,

2013

2012

(unaudited)

Liabilities and stockholders' equity

Current liabilities:

Notes payable to banks

$

20

$

6

Trade accounts payable

133,748

147,936

Payroll and related expenses

107,417

108,353

Other accrued expenses

144,182

148,660

Income taxes

11,193

7,215

Total current liabilities

396,560

412,170

Long-term debt less current portion

394,509

392,931

Deferred income taxes

126,859

129,379

Other liabilities

113,102

108,600

Accrued pension and other postretirement costs

331,529

344,961

Total liabilities

1,362,559

1,388,041

Equity:

Vishay stockholders' equity

Common stock

13,147

13,114

Class B convertible common stock

1,213

1,213

Capital in excess of par value

1,999,268

1,999,901

Retained earnings (accumulated deficit)

(351,747

)

(380,678

)

Accumulated other comprehensive income (loss)

(31,682

)

(10,222

)

Total Vishay stockholders' equity

1,630,199

1,623,328

Noncontrolling interests

5,118

4,908

Total equity

1,635,317

1,628,236

Total liabilities and equity

$

2,997,876

$

3,016,277

VISHAY INTERTECHNOLOGY, INC.

Consolidated Condensed Statements of Cash Flows

(Unaudited - In thousands)

Three fiscal months ended

March 30,

March 31,

2013

2012

Operating activities

Net earnings

$

29,141

$

34,075

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization

41,346

41,993

(Gain) loss on disposal of property and equipment

137

(996

)

Accretion of interest on convertible debentures

886

611

Inventory write-offs for obsolescence

4,213

5,220

Other

2,337

1,416

Changes in operating assets and liabilities, net of effects of businesses acquired

(54,669

)

(59,697

)

Net cash provided by operating activities

23,391

22,622

Investing activities

Purchase of property and equipment

(20,181

)

(16,815

)

Proceeds from sale of property and equipment

769

2,789

Purchase of businesses, net of cash acquired or refunded

-

(85,642

)

Purchase of short-term investments

(242,501

)

(4,444

)

Maturity of short-term investments

181,631

121,684

Other investing activities

627

443

Net cash (used in) provided by investing activities

(79,655

)

18,015

Financing activities

Principal payments on long-term debt and capital lease obligations

(8

)

(5

)