OREANDA-NEWS. Vishay Intertechnology, Inc. (NYSE: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 July 2, 2016.

Revenues for the fiscal quarter ended July 2, 2016 were $590.1 million, compared to $590.5 million for the fiscal quarter ended July 4, 2015. The net earnings attributable to Vishay stockholders for the fiscal quarter ended July 2, 2016 were $33.1 million, or $0.22 per diluted share, compared to $26.3 million, or $0.17 per diluted share for the fiscal quarter ended July 4, 2015.

Net earnings attributable to Vishay stockholders for the fiscal quarter ended July 2, 2016 include a gain on early extinguishment of debt of $1.0 million, restructuring and severance costs of $4.5 million, and a $1.2 million remeasurement of the deferred tax liability recorded for the cash repatriation program announced in the fourth fiscal quarter of 2015. Net earnings attributable to Vishay stockholders for the fiscal quarter ended July 4, 2015 include restructuring and severance costs of $5.7 million. These items are summarized on the attached reconciliation schedule. Adjusted earnings per diluted share, which exclude these items, were $0.23 and $0.20 for the fiscal quarters ended July 2, 2016 and July 4, 2015, respectively.

Commenting on the results for the second quarter 2016, Dr. Gerald Paul, President and Chief Executive Officer, stated, “As expected the broad recovery from the first quarter continued in the second quarter, at a slower pace though. As in the previous quarters the automotive market and several industrial product sectors continue to do well. The sales of Vishay products by its distributors to end customers increased. Inventory turns for Vishay products at distributors were stable. The production move of MOSFETs has been finalized as scheduled and we will enjoy the cost benefits going forward.”

Commenting on the outlook Dr. Paul stated, “For the third quarter, we guide for revenues of $570 to $610 million and gross margins of 24% to 26% at constant exchange rates.”

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 INTERTECHNOLOGY, INC. 
Summary of Operations 
(Unaudited - In thousands, except per share amounts) 
           
  Fiscal quarters ended
  July 2, 2016   April 2, 2016   July 4, 2015
           
Net revenues $   590,051     $   570,606     $   590,470  
Costs of products sold     443,923         433,297         448,988  
Gross profit     146,128         137,309         141,482  
Gross margin   24.8 %     24.1 %     24.0 %
           
Selling, general, and administrative expenses     92,253         90,286         91,652  
Restructuring and severance costs     4,467         6,475         5,660  
Operating income     49,408         40,548         44,170  
Operating margin   8.4 %     7.1 %     7.5 %
           
Other income (expense):          
Interest expense     (6,270 )       (6,466 )       (6,736 )
Other     2,256         779         1,160  
Gain on early extinguishment of debt     986         3,611         -  
  Total other income (expense) - net     (3,028 )       (2,076 )       (5,576 )
           
Income before taxes     46,380         38,472         38,594  
           
Income taxes     13,151         10,320         12,076  
           
Net earnings     33,229         28,152         26,518  
           
Less: net earnings attributable to noncontrolling interests     143         138         250  
           
Net earnings attributable to Vishay stockholders $   33,086     $   28,014     $   26,268  
           
Basic earnings per share attributable to Vishay stockholders $   0.22     $   0.19     $   0.18  
           
Diluted earnings per share attributable to Vishay stockholders $   0.22     $   0.19     $   0.17  
           
Weighted average shares outstanding - basic     147,643         147,832         147,700  
           
Weighted average shares outstanding - diluted     149,845         150,627         151,700  
           
Cash dividends per share $   0.0625     $   0.0625     $   0.0600  
           
VISHAY INTERTECHNOLOGY, INC. 
Summary of Operations 
(Unaudited - In thousands, except per share amounts) 
       
  Six fiscal months ended
  July 2, 2016   July 4, 2015
       
Net revenues $   1,160,657       1,183,906  
Costs of products sold     877,220         897,386  
Gross profit     283,437         286,520  
Gross margin   24.4 %     24.2 %
       
Selling, general, and administrative expenses     182,539         187,722  
Restructuring and severance costs     10,942         7,070  
Operating income     89,956         91,728  
Operating margin   7.8 %     7.7 %
       
Other income (expense):      
Interest expense     (12,736 )       (13,097 )
Other     3,035         4,620  
Gain on early extinguishment of debt     4,597         -   
Total other income (expense) - net     (5,104 )       (8,477 )
       
Income before taxes     84,852         83,251  
       
Income taxes     23,471         25,808  
       
Net earnings     61,381         57,443  
       
Less: net earnings attributable to noncontrolling interests     281         476  
       
Net earnings attributable to Vishay stockholders $   61,100     $   56,967  
       
Basic earnings per share attributable to Vishay stockholders $   0.41     $   0.39  
       
Diluted earnings per share attributable to Vishay stockholders $   0.41     $   0.37  
       
Weighted average shares outstanding - basic   147,739       147,699  
       
Weighted average shares outstanding - diluted   150,237       152,183  
       
Cash dividends per share $   0.125     $   0.120  
       
VISHAY INTERTECHNOLOGY, INC. 
Consolidated Condensed Balance Sheets 
(In thousands) 
       
  July 2, 2016   December 31, 2015
  (unaudited)    
Assets      
Current assets:      
Cash and cash equivalents $   475,167     $   475,507  
Short-term investments     546,110         619,040  
Accounts receivable, net     295,427         272,559  
Inventories:      
Finished goods     116,386         108,869  
Work in process     190,780         201,045  
Raw materials     107,936         110,657  
Total inventories     415,102         420,571  
       
Prepaid expenses and other current assets     97,123         99,815  
Total current assets     1,828,929         1,887,492  
       
Property and equipment, at cost:      
Land     90,973         89,593  
Buildings and improvements     570,245         562,171  
Machinery and equipment     2,426,160         2,380,299  
Construction in progress     64,116         79,910  
Allowance for depreciation     (2,301,084 )       (2,246,677 )
      850,410         865,296  
       
Goodwill     141,923         138,244  
       
Other intangible assets, net     95,725         103,258  
       
Other assets     150,435         158,696  
Total assets $   3,067,422     $   3,152,986  
       
VISHAY INTERTECHNOLOGY, INC. 
Consolidated Condensed Balance Sheets (continued) 
(In thousands) 
       
  July 2, 2016   December 31, 2015
  (unaudited)    
Liabilities and stockholders' equity      
Current liabilities:      
Notes payable to banks $   7     $   4  
Trade accounts payable     149,713         157,210  
Payroll and related expenses     112,886         113,976  
Other accrued expenses     158,859         164,336  
Income taxes     16,094         22,198  
Total current liabilities     437,559         457,724  
       
Long-term debt less current portion     335,144         436,738  
Deferred income taxes     298,325         305,413  
Other liabilities     64,123         60,450  
Accrued pension and other postretirement costs     251,375         264,618  
Total liabilities     1,386,526         1,524,943  
       
Equity:      
Vishay stockholders' equity      
Common stock     13,507         13,546  
Class B convertible common stock     1,213         1,213  
Capital in excess of par value     2,054,247         2,058,492  
Retained earnings (accumulated deficit)     (276,804 )       (319,448 )
Accumulated other comprehensive income (loss)     (116,408 )       (131,327 )
Total Vishay stockholders' equity     1,675,755         1,622,476  
Noncontrolling interests     5,141         5,567  
Total equity     1,680,896         1,628,043  
Total liabilities and equity $   3,067,422     $   3,152,986  
       
VISHAY INTERTECHNOLOGY, INC.   
Consolidated Condensed Statements of Cash Flows   
(Unaudited - In thousands)   
  Six fiscal months ended  
  July 2, 2016   July 4, 2015  
         
Operating activities        
Net earnings $   61,381     $   57,443    
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:        
Depreciation and amortization     79,117         90,185    
(Gain) loss on disposal of property and equipment     76         (115 )  
Accretion of interest on convertible debentures     2,259         2,090    
Inventory write-offs for obsolescence     11,225         9,329    
Gain on early extinguishment of debt     (4,597 )       -    
Other     (12,287 )       (10,924 )  
Changes in operating assets and liabilities, net of effects of businesses acquired     (42,203 )       (55,646 )  
Net cash provided by operating activities     94,971         92,362    
         
Investing activities        
Purchase of property and equipment     (51,073 )       (49,550 )  
Proceeds from sale of property and equipment     193         1,675    
Purchase of short-term investments     (274,524 )       (185,583 )  
Maturity of short-term investments     351,326         91,450    
Sale of short-term investments     -          503    
Sale of other investments     -          400    
Other investing activities     2,975         1,274    
Net cash provided by (used in) investing activities     28,897         (139,831 )  
         
Financing activities        
Principal payments on long-term debt and capital lease obligations     (34,044 )       -    
Net proceeds (payments) on revolving credit lines     (66,000 )       (30,000 )  
Net changes in short-term borrowings     (725 )       (1 )  
Common stock repurchases     (6,123 )       -    
Dividends paid to common stockholders     (16,924 )       (16,252 )  
Dividends paid to Class B common stockholders     (1,516 )       (1,456 )  
Excess tax benefit from RSUs vested     -          21    
Distributions to noncontrolling interests     (707 )       (725 )  
Net cash provided by (used in) financing activities     (126,039 )       (48,413 )  
Effect of exchange rate changes on cash and cash equivalents     1,831         (13,270 )  
         
Net increase (decrease) in cash and cash equivalents     (340 )       (109,152 )  
         
Cash and cash equivalents at beginning of period     475,507         592,172    
Cash and cash equivalents at end of period $   475,167       483,020    
         
VISHAY INTERTECHNOLOGY, INC. 
Reconciliation of Adjusted Earnings Per Share 
(Unaudited - In thousands, except per share amounts) 
  Fiscal quarters ended   Six fiscal months ended
  July 2, 2016   April 2, 2016   July 4, 2015   July 2, 2016   July 4, 2015
                   
GAAP net earnings attributable to Vishay stockholders $   33,086     $   28,014     $   26,268     $   61,100     $   56,967  
                   
Reconciling items affecting operating margin:                  
Restructuring and severance costs $   4,467     $   6,475     $   5,660     $   10,942     $   7,070  
                   
Reconciling items other income (expense):                  
Gain on early extinguishment of debt $   (986 )   $   (3,611 )   $   -     $   (4,597 )   $   -  
                   
Reconciling items affecting tax expense (benefit):                  
Tax effects of items above and other one-time tax expense (benefit) $   (2,325 )   $   (1,656 )   $   (1,988 )   $   (3,981 )   $   (2,496 )
                   
Adjusted net earnings $   34,242     $   29,222     $   29,940     $   63,464     $   61,541  
                   
Adjusted weighted average diluted shares outstanding     149,845         150,627         151,700         150,237         152,183  
                   
Adjusted earnings per diluted share* $   0.23     $   0.19     $   0.20     $   0.42     $   0.40  
                   
* Includes add-back of interest on exchangeable notes in periods where the notes are dilutive.            
                   
VISHAY INTERTECHNOLOGY, INC. 
Reconciliation of EBITDA and Adjusted EBITDA 
(Unaudited - In thousands) 
  Fiscal quarters ended   Six fiscal months ended
  July 2, 2016   April 2, 2016   July 4, 2015   July 2, 2016   July 4, 2015
                   
GAAP net earnings attributable to Vishay stockholders $   33,086     $   28,014     $   26,268     $   61,100     $   56,967  
Net earnings attributable to noncontrolling interests     143         138         250         281         476  
Net earnings $   33,229     $   28,152     $   26,518     $   61,381     $   57,443  
                   
Interest expense $   6,270     $   6,466     $   6,736     $   12,736     $   13,097  
Interest income     (1,033 )       (1,133 )       (1,028 )       (2,167 )       (2,225 )
Income taxes     13,151         10,320         12,076         23,471         25,808  
Depreciation and amortization     39,100         40,017         44,775         79,117         90,185  
EBITDA $   90,717     $   83,822     $   89,077     $   174,538     $   184,308  
                   
Reconciling items                  
Restructuring and severance costs $   4,467     $   6,475     $   5,660         10,942         7,070  
Gain on early extinguishment of debt     (986 )       (3,611 )       -         (4,597 )       -  
                   
Adjusted EBITDA $   94,198     $   86,686     $   94,737     $   180,883     $   191,378  
                   
Adjusted EBITDA margin**   16.0 %     15.2 %     16.0 %     15.6 %     16.2 %
                   
** Adjusted EBITDA as a percentage of net revenues