MALVERN, Pa., Feb. 07, 2024 (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, 2023.
Highlights
4Q 2023 revenues of $785.2 million
4Q 2023 EPS of $0.37
4Q 2023 book-to-bill of 0.75
Backlog at quarter end was 5.3 months
Returned a total of $34.8 million to stockholders
FY 2023 capex of $329.4 million
FY 2023 free cash flow of $37.4 million
FY 2023 total stockholder return of $134.3 million
“For the fourth quarter, the trends in inventory adjustments, contracting lead times and softened demand in industrial end markets became more apparent. While customers continue to digest higher inventory levels, we proceeded to implement our strategy to broaden participation with our distribution partners,” said Joel Smejkal, President and Chief Executive Officer.
“Looking ahead, input from our customers and distribution partners suggest we will be dealing with an inventory digestion for the first half of the year, although some end markets are expected to rebound sooner. During this period of inventory adjustment, our strong balance sheet and liquidity gives us the resources to continue investing in incremental capacity and preparing Vishay for the long-term demand trends of e-mobility, sustainability and connectivity. Near term we intend to advance our distribution strategy which positions us to timely benefit from a rebound in demand,” concluded Mr. Smejkal.
1Q 2024 Outlook
For the first quarter of 2024, management expects revenues in the range of $735 million +/- $20 million and a gross profit margin in the range of 24.0% +/- 50 basis points.
Conference Call
A conference call to discuss Vishay’s fourth quarter financial results is scheduled for Wednesday, February 7, 2024 at 9:00 a.m. ET. To participate in the live conference call, please pre-register at https://register.vevent.com/register/BI3f265da18e964024a9221557bd90d469. 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 Vishay
Vishay 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 gross margin; 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, stockholder returns, 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; the timing of the Newport wafer fab acquisition; that the Newport wafer fab acquisition may not be consummated, including as a result of any of the conditions precedent (including the failure to obtain any required approvals or consents); global market downturn conditions and volatilities impacting the completion of the acquisition; that the 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 Henrici
Executive Vice President, Corporate Development
+1-610-644-1300
VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited – In thousands, except per share amounts)
Fiscal quarters ended
December 31, 2023
September 30, 2023
December 31, 2022
Net revenues
$
785,236
$
853,653
$
855,298
Costs of products sold
584,572
616,010
606,178
Gross profit
200,664
237,643
249,120
Gross margin
25.6
%
27.8
%
29.1
%
Selling, general, and administrative expenses
122,834
122,513
113,812
Operating income
77,830
115,130
135,308
Operating margin
9.9
%
13.5
%
15.8
%
Other income (expense):
Interest expense
(6,454
)
(7,153
)
(4,490
)
Loss on early extinguishment of debt
–
(18,874
)
–
Other
9,268
7,409
(2,618
)
Total other income (expense) – net
2,814
(18,618
)
(7,108
)
Income before taxes
80,644
96,512
128,200
Income tax expense
28,690
30,557
54,999
Net earnings
51,954
65,955
73,201
Less: net earnings attributable to noncontrolling interests
482
426
413
Net earnings attributable to Vishay stockholders
$
51,472
$
65,529
$
72,788
Basic earnings per share attributable to Vishay stockholders
$
0.37
$
0.47
$
0.51
Diluted earnings per share attributable to Vishay stockholders
$
0.37
$
0.47
$
0.51
Weighted average shares outstanding – basic
138,318
139,083
141,643
Weighted average shares outstanding – diluted
139,266
140,001
142,247
Cash dividends per share
$
0.10
$
0.10
$
0.10
VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(In thousands, except per share amounts)
Years ended
December 31, 2023
December 31, 2022
(unaudited)
Net revenues
$
3,402,045
$
3,497,401
Costs of products sold*
2,427,552
2,438,412
Gross profit
974,493
1,058,989
Gross margin
28.6
%
30.3
%
Selling, general, and administrative expenses*
488,349
443,503
Operating income
486,144
615,486
Operating margin
14.3
%
17.6
%
Other income (expense):
Interest expense
(25,131
)
(17,129
)
Loss on early extinguishment of debt
(18,874
)
–
Other
25,263
(4,852
)
Total other income (expense) – net
(18,742
)
(21,981
)
Income before taxes
467,402
593,505
Income tax expense
141,889
163,022
Net earnings
325,513
430,483
Less: net earnings attributable to noncontrolling interests
1,693
1,673
Net earnings attributable to Vishay stockholders
$
323,820
$
428,810
Basic earnings per share attributable to Vishay stockholders
$
2.32
$
2.99
Diluted earnings per share attributable to Vishay stockholders
$
2.31
$
2.98
Weighted average shares …
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