Vishay Intertechnology Reports Fiscal Fourth Quarter and Full Year 2024 Results

February 05, 2025 07:15 ET | Source: Vishay Intertechnology, Inc. MALVERN, Pa., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Vishay Intertechnology, Inc., (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive electronic components, today announced results for the fiscal fourth quarter and year ended December 31, 2024. Highlights 4Q 2024 revenues of $714.7 million4Q 2024 GAAP loss per share of ($0.49); adjusted EPS of $0.004Q 2024 book-to-bill of 1.01, with book-to-bill of 0.99 for semiconductors and 1.03 for passive componentsBacklog at quarter end was 4.4 monthsReturned a total of $26.2 million to stockholders in Q4 2024; $105.1 million for the yearFY 2024 capex of $320.1 million “Our fourth quarter results came in as expected, slightly below the third quarter. Nevertheless, we saw many promising indicators including a positive book-to-bill for the first time in nine quarters, strong order intake for smart grid infrastructure projects, and initial shipments for A.I. servers,” said Joel Smejkal, President and CEO. “For 2025, we are well positioned to support a market upturn as capacity, print position, and customer engagements have been key priorities under Vishay 3.0. All of our strategic levers are in play as we continue to execute our five-year plan to position Vishay to take advantage of the megatrends of e-mobility and sustainability.” 1Q 2025 OutlookFor the first quarter of 2025, management expects revenues in the range of $710 million +/- $20 million and a gross profit margin in the range of 19.0% +/- 50 basis points, including the negative impact of approximately of 175-200 basis points related to Newport. Conference CallA conference call to discuss Vishay’s fourth quarter financial results is scheduled for Wednesday, February 5, 2025 at 9:00 a.m. ET. To participate in the live conference call, please pre-register at https://register.vevent.com/register/BI8ebcbdf5aaea4c50833bdc15cc86f02a. Upon registering, you will be emailed a dial-in number, and unique PIN.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 http://ir.vishay.com. There will be a replay of the conference call available on the Investor Relations website approximately one hour following the call and will remain available for 30 days. About VishayVishay 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 www.Vishay.com. 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 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 and margins, capital investment, capacity expansion, market trends, 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 and expressions such as "intend," "suggest," "guide," "will," "expect," 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 (including due to political, economic, and health instability and military conflicts and hostilities); 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; that the Newport wafer fab will not be integrated successfully into the Company’s overall business; that the expected benefits of the acquisition may not be realized; that the fab’s standards, procedures and controls will not be brought into conformance within the Company’s operation; difficulties in transitioning and retaining fab employees following the acquisition; difficulties in consolidating facilities and transferring processes and know-how; the diversion of our management’s attention from the management of our current business; 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 HenriciExecutive Vice President, Corporate Development+1-610-644-1300 VISHAY INTERTECHNOLOGY, INC. Summary of Operations (In thousands, except per share amounts) Years ended December 31, 2024 December 31, 2023 (unaudited) Net revenues$2,937,587 $3,402,045 Costs of products sold 2,311,295 2,427,552 Gross profit 626,292 974,493 Gross margin 21.3% 28.6% Selling, general, and administrative expenses 513,564 488,349 Restructuring and severance costs 40,614 - Impairment of goodwill 66,487 - Operating income 5,627 486,144 Operating margin 0.2% 14.3% Other income (expense): Interest expense (27,480) (25,131)Loss on early extinguishment of debt - (18,874)Other 19,464 25,263 Total other income (expense) - net (8,016) (18,742) Income (loss) before taxes (2,389) 467,402 Income tax expense 27,366 141,889 Net earnings (loss) (29,755) 325,513 Less: net earnings attributable to noncontrolling interests 1,395 1,693 Net earnings (loss) attributable to Vishay stockholders$(31,150) $323,820 Basic earnings (loss) per share attributable to Vishay stockholders$(0.23) $2.32 Diluted earnings (loss) per share attributable to Vishay stockholders$(0.23) $2.31 Weighted average shares outstanding - basic 136,964 139,447 Weighted average shares outstanding - diluted 136,964 140,246 Cash dividends per share$0.40 $0.40 VISHAY INTERTECHNOLOGY, INC. Summary of Operations (Unaudited - In thousands, except per share amounts) Fiscal quarters ended December 31, 2024 September 28, 2024 December 31, 2023 Net revenues$714,716 $735,353 $785,236 Costs of products sold 572,584 584,470 584,572 Gross profit 142,132 150,883 200,664 Gross margin 19.9% 20.5% 25.6% Selling, general, and administrative expenses 132,330 128,545 122,834 Restructuring and severance costs - 40,614 - Impairment of goodwill 66,487 - - Operating income (loss) (56,685) (18,276) 77,830 Operating margin -7.9% -2.5% 9.9% Other income (expense): Interest expense (7,731) (6,596) (6,454)Other 5,563 803 9,268 Total other income (expense) - net (2,168) (5,793) 2,814 Income (loss) before taxes (58,853) (24,069) 80,644 Income tax expense (benefit) 7,232 (5,076) 28,690 Net earnings (loss) (66,085) (18,993) 51,954 Less: net earnings attributable to noncontrolling interests 223 306 482 Net earnings (loss) attributable to Vishay stockholders$(66,308) $(19,299) $51,472 Basic earnings (loss) per share attributable to Vishay stockholders$(0.49) $(0.14) $0.37 Diluted earnings (loss) per share attributable to Vishay stockholders$(0.49) $(0.14) $0.37 Weighted average shares outstanding - basic 136,050 136,793 138,318 Weighted average shares outstanding - diluted 136,050 136,793 139,266 Cash dividends per share$0.10 $0.10 $0.10 VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (In thousands) December 31, 2024 December 31, 2023 (Unaudited) Assets Current assets: Cash and cash equivalents$590,286 $972,719 Short-term investments 16,130 35,808 Accounts receivable, net 401,901 426,674 Inventories: Finished goods 175,176 167,083 Work in process 296,393 267,339 Raw materials 217,812 213,098 Total inventories 689,381 647,520 Prepaid expenses and other current assets 217,809 214,443 Total current assets 1,915,507 2,297,164 Property and equipment, at cost: Land 84,124 77,006 Buildings and improvements 766,058 719,387 Machinery and equipment 3,259,213 3,053,868 Construction in progress 367,564 290,593 Allowance for depreciation (2,931,221) (2,846,208) 1,545,738 1,294,646 Right of use assets 117,953 126,829 Deferred income taxes 159,769 137,394 Goodwill 179,005 201,416 Other intangible assets, net 87,223 72,333 Other assets 105,501 110,141 Total assets$4,110,696 $4,239,923 VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (continued) (In thousands) December 31, 2024 December 31, 2023 (Unaudited) Liabilities and equity Current liabilities: Trade accounts payable$216,313 $191,002 Payroll and related expenses 137,101 161,940 Lease liabilities 25,901 26,485 Other accrued expenses 264,471 239,350 Income taxes 64,562 73,098 Total current liabilities 708,348 691,875 Long-term debt less current portion 905,019 818,188 U.S. transition tax payable - 47,027 Deferred income taxes 96,363 95,776 Long-term lease liabilities 94,218 102,830 Other liabilities 104,086 87,918 Accrued pension and other postretirement costs 173,700 195,503 Total liabilities 2,081,734 2,039,117 Equity: Vishay stockholders' equity Common stock 13,361 13,319 Class B convertible common stock 1,210 1,210 Capital in excess of par value 1,306,245 1,291,499 Retained earnings 955,500 1,041,372 Treasury stock (at cost) (212,062) (161,656)Accumulated other comprehensive income (loss) (35,292) 10,337 Total Vishay stockholders' equity 2,028,962 2,196,081 Noncontrolling interests - 4,725 Total equity 2,028,962 2,200,806 Total liabilities and equity$4,110,696 $4,239,923 VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Statements of Cash Flows (In thousands) Years ended December 31, 2024 December 31, 2023 (unaudited) Operating activities Net earnings (loss)$(29,755) $325,513 Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Depreciation and amortization 210,645 184,373 Gain on disposal of property and equipment (1,969) (554)Inventory write-offs for obsolescence 37,245 37,426 Impairment of goodwill 66,487 - Pensions and other postretirement benefits, net of contributions (6,036) (9,559)Stock compensation expense 20,921 16,532 Loss on early extinguishment of debt - 18,874 Deferred income taxes (23,514) 36,783 Other 20,416 9,442 Change in U.S. transition tax liability (37,622) (27,670)Change in repatriation tax liability (15,000) (63,600)Changes in operating assets and liabilities (68,116) (161,857)Net cash provided by operating activities 173,702 365,703 Investing activities Capital expenditures (320,079) (329,410)Proceeds from sale of property and equipment 3,015 1,156 Purchase of and deposits for businesses, net of cash acquired (216,024) (13,753)Purchase of short-term investments (145,327) (117,523)Maturity of short-term investments 164,983 387,898 Other investing activities 970 (1,219)Net cash used in investing activities (512,462) (72,851) Financing activities Proceeds from long-term borrowings - 750,000 Repurchase of convertible senior notes due 2025 (52,960) (386,745)Net proceeds (payments) on revolving credit facility 136,000 (42,000)Debt issuance and amendment costs (1,062) (26,823)Cash paid for capped call - (94,200)Dividends paid to common stockholders (49,833) (50,787)Dividends paid to Class B common stockholders (4,839) (4,839)Repurchase of common stock held in treasury (50,406) (78,684)Distributions to noncontrolling interests (2,500) (867)Acquisition of noncontrolling interests (5,500) - Cash withholding taxes paid when shares withheld for vested equity awards (4,303) (3,994)Net cash provided by (used in) financing activities (35,403) 61,061 Effect of exchange rate changes on cash and cash equivalents (8,270) 7,981 Net increase (decrease) in cash and cash equivalents (382,433) 361,894 Cash and cash equivalents at beginning of period 972,719 610,825 Cash and cash equivalents at end of period$590,286 $972,719 VISHAY INTERTECHNOLOGY, INC. Reconciliation of Adjusted Earnings Per Share (Unaudited - In thousands, except per share amounts) Fiscal quarters ended Years ended December 31, 2024 September 28, 2024 December 31, 2023 December 31, 2024 December 31, 2023 GAAP net earnings (loss) attributable to Vishay stockholders$(66,308) $(19,299) $51,472 $(31,150) $323,820 Reconciling items affecting operating income: Impairment of goodwill$66,487 $- $- $66,487 $- Restructuring and severance costs - 40,614 - 40,614 - Reconciling items affecting other income (expense): Loss on early extinguishment of debt$- $- $- $- $18,874 Reconciling items affecting tax expense (benefit): Tax effects of pre-tax items above$- $(10,299) $- $(10,299) $(498) Adjusted net earnings$179 $11,016 $51,472 $65,652 $342,196 Adjusted weighted average diluted shares outstanding 136,883 137,558 139,266 137,741 140,246 Adjusted earnings per diluted share$0.00 $0.08 $0.37 $0.48 $2.44 VISHAY INTERTECHNOLOGY, INC. Reconciliation of Free Cash (Unaudited - In thousands) Fiscal quarters ended Years ended December 31, 2024 September 28, 2024 December 31, 2023 December 31, 2024 December 31, 2023Net cash provided by operating activities$67,656 $50,565 6,268 $173,702 $365,703 Proceeds from sale of property and equipment 1,618 132 122 3,015 1,156 Less: Capital expenditures (144,904) (59,527) (145,331) (320,079) (329,410)Free cash$(75,630) $(8,830) $(138,941) $(143,362) $37,449 VISHAY INTERTECHNOLOGY, INC. Reconciliation of EBITDA and Adjusted EBITDA (Unaudited - In thousands) Fiscal quarters ended Years ended December 31, 2024 September 28, 2024 December 31, 2023 December 31, 2024 December 31, 2023 GAAP net earnings (loss) attributable to Vishay stockholders$(66,308) $(19,299) $51,472 $(31,150) $323,820 Net earnings attributable to noncontrolling interests 223 306 482 1,395 1,693 Net earnings (loss)$(66,085) $(18,993) $51,954 $(29,755) $325,513 Interest expense$7,731 $6,596 $6,454 $27,480 $25,131 Interest income (4,533) (5,230) (9,934) (25,479) (31,353)Income taxes 7,232 (5,076) 28,690 27,366 141,889 Depreciation and amortization 55,373 53,595 50,463 210,645 184,373 EBITDA$(282) $30,892 $127,627 $210,257 $645,553 Reconciling items Impairment of goodwill$66,487 $- $- $66,487 $- Restructuring and severance costs - 40,614 - 40,614 - Loss on early extinguishment of debt - - - - 18,874 Adjusted EBITDA$66,205 $71,506 $127,627 $317,358 $664,427 Adjusted EBITDA margin** 9.3% 9.7% 16.3% 10.8% 19.5% ** Adjusted EBITDA as a percentage of net revenues

Vishay Intertechnology Reports Fiscal Fourth Quarter and Full Year 2024 Results

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