Vishay Intertechnology Inc. (NYSE:VSH) Q2 2020 Earnings Conference Call - Final Transcript
Aug 04, 2020 • 09:00 am ET
Good morning and welcome to Vishay Intertechnology Second Quarter 2020 Conference Call. With me today are Dr. Gerald Paul, Vishay's President and Chief Executive Officer; and Lori Lipcaman, our Executive Vice President and Chief Financial Officer.
As usual, we will start today's call with the CFO who will review Vishay's second quarter for 2020 financial results. Dr. Gerald Paul will then give an overview of our business and discuss operational performance, as well as segment results in more detail. Finally, we'll reserve time for questions and answers. This call is being webcast from the Investor Relations section of our website at ir.vishay.com. The replay for this call will be publicly available for 30 days. 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. In addition, during this call, we may refer to adjusted or other financial measures that are not prepared according to Generally Accepted Accounting Principles. We use non-GAAP measures because we believe they provide useful information about the operating performance of our businesses and should be considered by investors in conjunction with GAAP measures that we also provide. This morning we filed Form 8-K that outlines the variables that impact the diluted earnings per share computation.
On the Investor Relations section of our website, you can find the presentation of the second quarter 2020 financial information, containing some of the operational metrics Dr. Paul will be discussing.
Now I turn the call over to Chief Financial Officer, Lori Lipcaman.
Thank you, Peter. Good morning, everyone.
I am sure that most of you have had a chance to review our earnings press release. I will focus on some highlights and key metrics. Vishay reported revenues for Q2 of $582 million. EPS was $0.17 for the quarter. Adjusted EPS was $0.18 for the quarter.
During the quarter, we completed the cash repatriation program we initiated in response to U.S. tax reform. We repatriated $112 million to the United States and paid withholding and foreign taxes of $16 million. These taxes had been accrued upon enactment of the U.S. tax reform in 2017. The payment of these taxes is reflected as an operating cash flow on the statement of cash flow.
During the quarter, we repurchased $75.8 million principal amount of our convertible notes due in 2025, using some of the repatriated cash and recognized the U.S. GAAP loss on extinguishment.
Similar to Q1, we have identified certain COVID-19-related charges, net of certain subsidies, which are incremental to and separable from normal operations. These items were insignificant to Q2, but are added back when calculating our non-GAAP adjusted EPS for comparability purposes with Q1. I will elaborate on these transactions