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Vishay Intertechnology Reports Fiscal Fourth Quarter and Full Year 2024 Results

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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

“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 Outlook
For 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 Call
A 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 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 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 Henrici
Executive 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, 2023
Net 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                  


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