Vishay Intertechnology, Inc. (VSH)

VSH 
$16
*  
0.04
0.25%
Get VSH Alerts
*Delayed - data as of Aug. 29, 2014  -  Find a broker to begin trading VSH now
Exchange: NYSE
Industry: Capital Goods
Community Rating:
 
 
Symbol List Views
FlashQuotes InfoQuotes
Stock Details
Summary Quote Real-Time Quote After Hours Quote Pre-market Quote Historical Quote Option Chain
CHARTS
Basic Chart Interactive Chart
COMPANY NEWS
Company Headlines Press Releases Market Stream
STOCK ANALYSIS
Analyst Research Guru Analysis Stock Report Competitors Stock Consultant Stock Comparison
FUNDAMENTALS
Call Transcripts Annual Report Income Statement Revenue/EPS SEC Filings Short Interest Dividend History
HOLDINGS
Ownership Summary Institutional Holdings Insiders
(SEC Form 4)
 Save stocks for next time

Vishay Intertechnology (VSH)

Q2 2011 Earnings Call

August 2, 2011 9:00 AM ET

Executives

Lior Yahalomi – EVP and CFO

David Tomlinson – SVP, Corporate Controller

Gerald Paul – President and CEO

Analysts

Steven Smigie – Raymond James & Associates

Shawn Harrison – Longbow Research LLC

Jim Suva – Citigroup Global Markets

Matt Sheerin – Stifel Nicolaus & Co., Inc.

Presentation

Operator

Good morning, and welcome to the Vishay Intertechnology Second Quarter 2011 Earnings Call. My name is Melissa, and I will be your conference operator today. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. (Operator Instructions)

I will now turn the call over to Dr. Yahalomi. Sir, you may begin.

Lior Yahalomi

Good morning, thank you, Melissa. This is Lior Yahalomi, Vishay’s Chief Financial Officer. Good morning, ladies and gentlemen, and welcome to Vishay’s second quarter 2011 earnings call. On the line with me today are Dr. Gerald Paul, Vishay’s President and Chief Executive Officer; Lori Lipcaman, Vishay’s Executive Vice President and Chief Accounting Officer; and David Tomlinson, Vishay’s Senior Vice President, Corporate Controller.

Before I start, Dave Tomlinson will read our customary opening statement.

David Tomlinson

You should be aware that in today’s conference call, we will be making certain forward-looking statements that discuss future events and performance. These statements are subject to risks and uncertainties that could cause actual results to differ from the forward-looking statements. For a discussion of factors that could cause results to differ, please see today’s press release and Vishay’s Form 10-K and Form 10-Q filings with the Securities and Exchange Commission.

Lior Yahalomi

Thank you, Dave. I will summarize our U.S. GAAP results. Dr. Paul will present a detailed analysis of the second quarter 2011 with comparisons to prior periods for our business excluding the spun-off Vishay Precision Group.

As you are aware, on July 6, 2010, we completed the spin-off of Vishay Precision Group into an independently publicly-traded company. Although VPG is an independent company, due to certain continuing involvement such as common board members, limited supply agreements, and leases and trademark licenses, we did not restate prior financial statements to present VPG as a discontinued operation for U.S. GAAP purposes.

To assist in the analysis of Vishay, including and excluding VPG, we realigned our U.S. GAAP reportable segments segregating VPG into its own segment. Consolidated results for the first and second quarters of 2010 include VPG.

Quarterly results. For the second quarter of 2011, Vishay reported revenues of $709.8 million or 2.1% higher than the first quarter of 2011 and 1.2% higher than the second quarter of 2010.

We reported earnings attributable to Vishay’s stockholders of $82.1 million compared to $75.3 million for the first quarter of 2011 and $76.7 million for the second quarter of 2010.

On an adjusted basis, net earnings for the quarter two were $84.6 million compared to $85.3 million for the first quarter of 2011 and $76.7 million for the second quarter of 2010.

Our consolidated gross margin for the quarter was 29.9% compared to 30.9% for the first quarter of 2011 and 30% for the second quarter of 2010.

SG&A expenses for this quarter were $92.8 million, or 13.1% of revenues, compared to $92.5 million, or 13.3% of revenues, for the first quarter of 2011 and $109.3 million, or 15.6%, for the last year’s second quarter. The fiscal quarter and six fiscal months ended July 2, 2011 include a pre-tax charge of $3.9 million to accelerate the recognition of certain executive compensation-related to the passing of our Founder and Former Executive Chairman, Dr. Felix Zandman.

Other income and expense for the second quarter of 2011 consists mainly of $4.6 million of interest expense, $2.7 million in interest income and $2.7 million in exchange rate losses.

The effective tax rate for the second quarter of 2011 was approximately 26%. Capital expenditures for the quarter were $26.8 million compared to $18.6 million in our first quarter of 2011 and $31.1 million in the second quarter of 2010.

Depreciation and amortization for the quarter was $46.1 million compared to $45.4 million in the first quarter of 2011 and $48.8 million in the second quarter of 2010.

As announced in our press release, Vishay reported earnings attributable to Vishay’s stockholders of $0.48 per diluted share for the second quarter of 2011. Adjusted diluted earnings per share, excluding the executive compensation charge were $0.50 compared to adjusted net earnings per diluted share of $0.49 for the first quarter of 2011 and adjusted net earnings per share – diluted share of $0.40 for the second quarter of 2010.

Six months results. For the six fiscal months of 2011 Vishay reported revenues of $1.4 billion or 4.7% higher than the same period in 2010. We reported earnings attributable to Vishay’s stockholders of $157.4 million compared to $122.1 million for the same period in 2010.

On an adjusted basis, net earnings for the six fiscal months of 2011 were $169.9 million compared to $122.1 million for the same period in 2010. Our consolidated gross margin for the six fiscal months of 2011 was 30.4% as compared to 21.1% for the same period in 2010.

SG&A expenses for the six fiscal months of 2011 were $185.3 million, or 13.2% of revenues, compared to $211.2 million, or 15.7% of revenues, for the same period in 2010. Other income and expense for the six fiscal months of 2011 consist mainly of $8.7 million of interest expense, $4.1 million in interest income and $4.6 million in exchange rate losses.

Read the rest of this transcript for free on seekingalpha.com