Vishay Reports Results for Second Quarter 2013

Vishay Reports Results for Second Quarter 2013

  • Revenues for Q2 2013 $598 million
  • EPS Q2 2013 of $0.21, or adjusted EPS of $0.20
  • Cash from operations for trailing twelve months Q2 2013 of $287 million and capital expenditures of $150 million
  • Guidance for Q3 2013 for revenues of $605 - $645 million at improved margins compared to Q2 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 and six fiscal months ended June 29, 2013.

Revenues for the fiscal quarter ended June 29, 2013 were $597.7 million, compared to $588.2 million for the fiscal quarter ended June 30, 2012. The net earnings attributable to Vishay stockholders for the fiscal quarter ended June 29, 2013 were $31.3 million, or $0.21 per diluted share, compared to $45.7 million, or $0.29 per diluted share for the fiscal quarter ended June 30, 2012.


Net earnings attributable to Vishay stockholders for the fiscal quarter ended June 29, 2013 include an adjustment of $1.8 million related to performance-based stock compensation for certain former executives, following a determination that achievement of the three-year performance targets was no longer probable. These costs had been originally reported as a separate line item upon cessation of employment of these executives in 2011, and accordingly, this adjustment is also reported as a separate line item. Net earnings for the fiscal quarter ended June 30, 2012 include a pretax gain of $12.2 million on the sale of a vacated property in Belgium. These items are summarized on the attached reconciliation schedule. Adjusted net earnings per diluted share, which exclude these items, were $0.20 for the fiscal quarter ended June 29, 2013, compared to $0.24 for the fiscal quarter ended June 30, 2012.

Commenting on the results for the second quarter 2013, Dr. Gerald Paul, President and Chief Executive Officer, stated, "In the second quarter the revenues of Vishay Intertechnology, Inc. benefited from the general economic recovery. As forecasted, both manufacturing and operational fixed costs increased due to the end of the temporary cost savings measures. The fixed costs continue to be well under control and we expect them to stay at approximately the current level for the remainder of the year. In the second quarter operational results were impacted by a few adverse and temporary effects. The contributive margin suffered from start-up inefficiencies at a major foundry, valuation effects and unfavorable product mix shifts. For the third quarter we anticipate a return of the contributive margin to its traditional range."

Dr. Gerald Paul continued, "There is no change to our strategy 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 outlook for the third quarter 2013 Dr. Paul stated, "We guide for revenues of $605 to $645 million. Based on a return to Vishay's usual incremental performance, we also guide for improved gross and operating margins compared to the second quarter of 2013."

A conference call to discuss second quarter financial results is scheduled for Tuesday, July 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 93854053.

There will be a replay of the conference call from 10:30 AM ET on Tuesday, July 30, 2013 through 11:59 PM ET on Monday, August 5, 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 93854053.

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 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
June 29,March 30,June 30,
 2013  2013  2012 
 
Net revenues$597,665$554,254$588,199
Costs of products sold 454,808  417,520  440,580 
Gross profit142,857136,734147,619
Gross margin23.9%24.7%25.1%
 
Selling, general, and administrative expenses92,74591,12986,889
Executive compensation charge (credit)(1,778)--
Gain on sale of property -  -  (12,153)
Operating income51,89045,60572,883
Operating margin8.7%8.2%12.4%
 
Other income (expense):
Interest expense(5,824)(5,486)(5,539)
Other 784  115  (2,094)
Total other income (expense) - net (5,040) (5,371) (7,633)
 
Income before taxes46,85040,23465,250
 
Income taxes 15,365  11,093  19,420 
 
Net earnings31,48529,14145,830
 
Less: net earnings attributable to noncontrolling interests176210159
   
Net earnings attributable to Vishay stockholders$31,309 $28,931 $45,671 
 
Basic earnings per share attributable to Vishay stockholders$0.22$0.20$0.30
 
Diluted earnings per share attributable to Vishay stockholders$0.21$0.19$0.29
 
Weighted average shares outstanding - basic143,603143,484152,462
 
Weighted average shares outstanding - diluted151,880150,632159,249
  
VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands, except per share amounts)
 
Six fiscal months ended
June 29,June 30,
 2013  2012 
 
Net revenues$1,151,919$1,126,746
Costs of products sold 872,328  842,418 
Gross profit279,591284,328
Gross margin24.3%25.2%
 
Selling, general, and administrative expenses183,874173,253
Executive compensation charge (credit)(1,778)-
Gain on sale of property -  (12,153)
Operating income97,495123,228
Operating margin8.5%10.9%
 
Other income (expense):
Interest expense(11,310)(10,256)
Other 899  (786)
Total other income (expense) - net (10,411) (11,042)
 
Income before taxes87,084112,186
 
Income taxes 26,458  32,281 
 
Net earnings60,62679,905
 
Less: net earnings attributable to noncontrolling interests386422
  
Net earnings attributable to Vishay stockholders$60,240 $79,483 
 
Basic earnings per share attributable to Vishay stockholders$0.42$0.51
 
Diluted earnings per share attributable to Vishay stockholders$0.40$0.49
 
Weighted average shares outstanding - basic143,544154,831
 
Weighted average shares outstanding - diluted151,256161,596
  
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(In thousands)
 
June 29,December 31,
 2013  2012 
Assets(unaudited)
Current assets:
Cash and cash equivalents$561,199$697,595
Short-term investments466,501294,943
Accounts receivable, net294,253247,035
Inventories:
Finished goods115,003109,571
Work in process194,416177,350
Raw materials 135,687  120,728 
Total inventories445,106407,649
 
Deferred income taxes17,97124,385
Prepaid expenses and other current assets 101,871  119,656 
Total current assets1,886,9011,791,263
 
Property and equipment, at cost:
Land93,27092,348
Buildings and improvements534,926523,091
Machinery and equipment2,208,6422,163,182
Construction in progress66,643101,570
Allowance for depreciation (2,014,612) (1,965,639)
888,869914,552
 
Goodwill43,38334,866
 
Other intangible assets, net138,104133,717
 
Other assets 132,649  141,879 
Total assets$3,089,906 $3,016,277 
  
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets (continued)
(In thousands)
 
June 29,December 31,
20132012
(unaudited)
Liabilities and stockholders' equity
Current liabilities:
Notes payable to banks$839$6
Trade accounts payable155,733147,936
Payroll and related expenses121,797108,353
Other accrued expenses149,051148,660
Income taxes 7,114  7,215 
Total current liabilities434,534412,170
 
Long-term debt less current portion405,392392,931
Deferred income taxes137,264129,379
Other liabilities106,442108,600
Accrued pension and other postretirement costs 329,411  344,961 
Total liabilities 1,413,043  1,388,041 
 
Equity:
Vishay stockholders' equity Read Full Story

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