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 profit 142,857 136,734 147,619
Gross margin 23.9 % 24.7 % 25.1 %
 
Selling, general, and administrative expenses 92,745 91,129 86,889
Executive compensation charge (credit) (1,778 ) - -
Gain on sale of property   -     -     (12,153 )
Operating income 51,890 45,605 72,883
Operating margin 8.7 % 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 taxes 46,850 40,234 65,250
 
Income taxes   15,365     11,093     19,420  
 
Net earnings 31,485 29,141 45,830
 
Less: net earnings attributable to noncontrolling interests 176 210 159
     
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 - basic 143,603 143,484 152,462
 
Weighted average shares outstanding - diluted 151,880 150,632 159,249
   
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 profit 279,591 284,328
Gross margin 24.3 % 25.2 %
 
Selling, general, and administrative expenses 183,874 173,253
Executive compensation charge (credit) (1,778 ) -
Gain on sale of property   -     (12,153 )
Operating income 97,495 123,228
Operating margin 8.5 % 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 taxes 87,084 112,186
 
Income taxes   26,458     32,281  
 
Net earnings 60,626 79,905
 
Less: net earnings attributable to noncontrolling interests 386 422
   
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 - basic 143,544 154,831
 
Weighted average shares outstanding - diluted 151,256 161,596
   
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 investments 466,501 294,943
Accounts receivable, net 294,253 247,035
Inventories:
Finished goods 115,003 109,571
Work in process 194,416 177,350
Raw materials   135,687     120,728  
Total inventories 445,106 407,649
 
Deferred income taxes 17,971 24,385
Prepaid expenses and other current assets   101,871     119,656  
Total current assets 1,886,901 1,791,263
 
Property and equipment, at cost:
Land 93,270 92,348
Buildings and improvements 534,926 523,091
Machinery and equipment 2,208,642 2,163,182
Construction in progress 66,643 101,570
Allowance for depreciation   (2,014,612 )   (1,965,639 )
888,869 914,552
 
Goodwill 43,383 34,866
 
Other intangible assets, net 138,104 133,717
 
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,
2013 2012
(unaudited)
Liabilities and stockholders' equity
Current liabilities:
Notes payable to banks $ 839 $ 6
Trade accounts payable 155,733 147,936
Payroll and related expenses 121,797 108,353
Other accrued expenses 149,051 148,660
Income taxes   7,114     7,215  
Total current liabilities 434,534 412,170
 
Long-term debt less current portion 405,392 392,931
Deferred income taxes 137,264 129,379
Other liabilities 106,442 108,600
Accrued pension and other postretirement costs   329,411     344,961  
Total liabilities   1,413,043     1,388,041  
 
Equity:
Vishay stockholders' equity

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