Attached files
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| 8-K - CURRENT REPORT - BENCHMARK ELECTRONICS INC | v210200_8-k.htm |
EXHIBIT 99.1
Press
Release
For
More Information, Call:
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ELLEN
M. DYLLA
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INVESTOR
RELATIONS
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February
3, 2011
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(979)
849-6550
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FOR IMMEDIATE
RELEASE
BENCHMARK
ELECTRONICS REPORTS RESULTS FOR THE
QUARTER
AND YEAR ENDED DECEMBER 31, 2010
15%
YEAR OVER YEAR REVENUE GROWTH
52%
YEAR OVER YEAR INCREASE IN NON-GAAP DILUTED EPS
ANGLETON,
TX, FEBRUARY 3, 2011 – Benchmark Electronics, Inc. (NYSE: BHE), a leading
contract manufacturing provider, announced sales of $627 million for the quarter
ended December 31, 2010, compared to $600 million for the same quarter in
the prior year. The Company reported fourth quarter net income of $19 million,
or $0.31 per diluted share. In the comparable period in 2009, the Company
reported net income of $17 million, or $0.26 per diluted share. Excluding
special items, the Company would have reported net income of $23 million, or
$0.37 per diluted share for the fourth quarter of 2010, compared to net income
of $19 million, or $0.29 per diluted share, in the fourth quarter of 2009. The
reconciliation of GAAP to Non-GAAP financial results at the end of this press
release includes a description of our special items.
Sales for
the year ended December 31, 2010 were $2.4 billion, compared to $2.1 billion in
2009. The net income for the year ended December 31, 2010 was $81 million, or
$1.29 per diluted share. In the prior year, the net income was $54 million, or
$0.83 per diluted share. Excluding special items, the Company would have
reported net income of $86 million, or $1.37 per diluted share, in 2010,
compared to net income of $59 million, or $0.90 per diluted share, in
2009.
“We saw a
strong close to the fourth quarter due to increased demand from our computing
customers,” said Cary T. Fu, the Company’s Chief Executive Officer. “Our 2010
new program wins and our recent precision technology services expansion will
position us for continued revenue growth in the second half of
2011.”
Fourth
Quarter 2010 Financial Highlights
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·
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Operating
margin for the fourth quarter was 4.1% excluding special items and 3.3% on
a GAAP basis.
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·
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Cash
flows provided by operating activities for the fourth quarter were
approximately $10 million.
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·
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Cash
and long-term investments balance was $382 million at December 31, 2010.
Long-term investments consist of $35 million of auction rate
securities.
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·
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Accounts
receivable was $456 million at December 31, 2010; calculated days sales
outstanding were 66 days.
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·
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Inventory
was $362 million at December 31, 2010; inventory turns were 6.4
times.
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·
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Repurchases
of common shares for the fourth quarter totaled $5 million or 0.3 million
shares.
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·
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Net
income for the fourth quarter includes $2 million foreign currency
loss.
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·
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Tax
rate for the fourth quarter was 4.5% excluding special items and 0.3% on a
GAAP basis due to a change in the mix of taxable income between
jurisdictions.
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Industry
Sectors
The
following table sets forth sales by industry sector for the quarters ended
December 31, 2010, September 30, 2010 and December 31, 2009.
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December
31,
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September
30,
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December
31,
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||||||||||
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2010
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2010
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2009
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Computers
and related products for business enterprises
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33 | % | 31 | % | 39 | % | ||||||
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Telecommunications
equipment
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22 | % | 22 | % | 21 | % | ||||||
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Industrial
control equipment
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24 | % | 26 | % | 21 | % | ||||||
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Medical
devices
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10 | % | 10 | % | 12 | % | ||||||
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Testing
and instrumentation products
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11 | % | 11 | % | 7 | % | ||||||
First
Quarter 2011 Outlook
Sales for
the first quarter of 2011 are expected to range from $565 million to $605
million. Diluted earnings per share for the first quarter, excluding special
items, are expected to be between $0.30 and $0.36.
Non-GAAP
Financial Measures
This
press release includes financial measures for earnings and earnings per share
that exclude certain items and therefore are not in accordance with generally
accepted accounting principles (GAAP). A detailed reconciliation between the
GAAP results and results excluding special items (non-GAAP) is included at the
end of this press release. By disclosing this non-GAAP information, management
intends to provide investors with additional information to further analyze the
company’s performance and underlying trends. Management utilizes a measure of
net income and earnings per share on a non-GAAP basis that excludes certain
items to better assess operating performance and to help investors compare our
results with our previous guidance.
The
non-GAAP information included in this press release is not necessarily
comparable to non-GAAP information of other companies. Non-GAAP information
should not be viewed as a substitute for, or superior to, net income or other
data prepared in accordance with GAAP as measures of our profitability or
liquidity. Users of this financial information should consider the types of
events and transactions for which adjustments have been made.
Forward-Looking
Statements
This news
release contains certain forward-looking statements within the scope of the
Securities Act of 1933 and the Securities Exchange Act of 1934. The words
“expect,” “estimate,” “anticipate,” “predict,” and similar expressions, and the
negatives of such expressions, are intended to identify forward-looking
statements. Our forward-looking statements may be deemed to include, among other
things, the statement “our 2010 new program wins and our recent precision
technology services expansion will position us for continued revenue growth in
the second half of 2011”, our sales and diluted earnings per share (excluding
special items) guidance for the first quarter of 2011, as well as other
statements, express or implied, concerning: future operating results or the
ability to generate sales, income or cash flow; and Benchmark’s business and
growth strategies, including expected internal growth and performance goals.
Although Benchmark believes that these statements are based upon reasonable
assumptions, such statements involve risks, uncertainties and assumptions,
including but not limited to industry and economic conditions, and customer
actions. Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual outcomes may vary
materially from those indicated.
All
forward-looking statements included in this release are based upon information
available to Benchmark as of the date of this release, and Benchmark assumes no
obligation to update any such forward-looking statements. Persons are advised to
consult further disclosures on related subjects in Benchmark’s Form 10-K for the
year ended December 31, 2009, in its other filings with the Securities and
Exchange Commission and in its press releases.
Additional
Information
Benchmark
Electronics, Inc. provides integrated electronics manufacturing, design and
engineering services to original equipment manufacturers of computers and
related products for business enterprises, medical devices, industrial control
equipment, testing and instrumentation products, and telecommunication
equipment. Benchmark’s global operations include 21 facilities in ten countries.
Benchmark’s Common Shares trade on the New York Stock Exchange under the symbol
BHE.
A
conference call hosted by Benchmark management will be held today at 10:00 am
(Central time) to discuss the financial results of the Company and its future
outlook. This call will be broadcast via the Internet and may be accessed by
logging on to our website at www.bench.com.
###
Benchmark
Electronics, Inc. and Subsidiaries
Reconciliation
of GAAP to Non-GAAP Financial Results
(Amounts
in Thousands, Except Per Share Data)
(UNAUDITED)
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Three
Months Ended
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Year
Ended
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December
31,
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December
31,
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2010
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2009
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2010
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2009
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Income
from operations (GAAP)
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$ | 20,839 | $ | 18,616 | $ | 89,723 | $ | 52,815 | ||||||||
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Restructuring
charges
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4,575 | 2,363 | 6,724 | 8,264 | ||||||||||||
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Non-GAAP
income from operations
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$ | 25,414 | $ | 20,979 | $ | 96,447 | $ | 61,079 | ||||||||
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Net
income (GAAP)
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$ | 19,010 | $ | 16,686 | $ | 81,035 | $ | 53,895 | ||||||||
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Restructuring
charges, net of tax
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3,561 | 1,951 | 4,738 | 7,293 | ||||||||||||
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Discrete
US tax benefit
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— | — | — | (2,668 | ) | |||||||||||
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Non-GAAP
net income
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$ | 22,571 | $ | 18,637 | $ | 85,773 | $ | 58,520 | ||||||||
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Earnings
per share: (GAAP)
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Basic
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$ | 0.31 | $ | 0.26 | $ | 1.30 | $ | 0.83 | ||||||||
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Diluted
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$ | 0.31 | $ | 0.26 | $ | 1.29 | $ | 0.83 | ||||||||
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Earnings
per share: (Non-GAAP)
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Basic
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$ | 0.37 | $ | 0.29 | $ | 1.38 | $ | 0.90 | ||||||||
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Diluted
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$ | 0.37 | $ | 0.29 | $ | 1.37 | $ | 0.90 | ||||||||
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Weighted
average shares used in calculating earnings per share:
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Basic
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60,789 | 64,173 | 62,141 | 64,758 | ||||||||||||
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Diluted
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61,216 | 64,749 | 62,692 | 65,116 | ||||||||||||
Benchmark
Electronics, Inc. and Subsidiaries
Consolidated
Statements of Income
(Amounts
in Thousands, Except Per Share Data)
(UNAUDITED)
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Three
Months Ended
December
31,
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Year
Ended
December
31,
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2010
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2009
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2010
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2009
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Net
sales
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$ | 626,925 | $ | 600,223 | $ | 2,402,143 | $ | 2,089,253 | ||||||||
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Cost
of sales
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578,193 | 556,647 | 2,213,451 | 1,942,674 | ||||||||||||
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Gross
profit
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48,732 | 43,576 | 188,692 | 146,579 | ||||||||||||
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Selling,
general and administrative expenses
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23,318 | 22,597 | 92,245 | 85,500 | ||||||||||||
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Restructuring
charges
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4,575 | 2,363 | 6,724 | 8,264 | ||||||||||||
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Income
from operations
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20,839 | 18,616 | 89,723 | 52,815 | ||||||||||||
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Other
income (expense):
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Interest
income
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413 | 500 | 1,621 | 2,210 | ||||||||||||
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Interest
expense
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(340 | ) | (348 | ) | (1,362 | ) | (1,399 | ) | ||||||||
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Other
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(1,851 | ) | (735 | ) | (1,689 | ) | (1,705 | ) | ||||||||
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Total
other expense, net
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(1,778 | ) | (583 | ) | (1,430 | ) | (894 | ) | ||||||||
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Income
before income taxes
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19,061 | 18,033 | 88,293 | 51,921 | ||||||||||||
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Income
tax benefit (expense)
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(51 | ) | (1,347 | ) | (7,258 | ) | 1,974 | |||||||||
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Net
income
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$ | 19,010 | $ | 16,686 | $ | 81,035 | $ | 53,895 | ||||||||
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Denominator
for basic earnings per share - weighted average number of common shares
outstanding during the period
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60,789 | 64,173 | 62,141 | 64,758 | ||||||||||||
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Incremental
common shares attributable to restricted shares and the exercise of
outstanding equity instruments
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427 | 576 | 551 | 358 | ||||||||||||
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Denominator
for diluted earnings per share
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61,216 | 64,749 | 62,692 | 65,116 | ||||||||||||
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Earnings
per share:
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Basic
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$ | 0.31 | $ | 0.26 | $ | 1.30 | $ | 0.83 | ||||||||
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Diluted
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$ | 0.31 | $ | 0.26 | $ | 1.29 | $ | 0.83 | ||||||||
Benchmark
Electronics, Inc. and Subsidiaries
Condensed
Consolidated Balance Sheet
December
31, 2010
(Amounts
in Thousands)
(UNAUDITED)
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Assets
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||||
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Current
assets:
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||||
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Cash
and cash-equivalents
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$ | 346,345 | ||
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Accounts
receivable, net
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455,930 | |||
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Inventories,
net
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362,234 | |||
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Other
current assets
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54,506 | |||
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Total
current assets
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1,219,015 | |||
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Long-term
investments
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35,297 | |||
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Property,
plant and equipment, net
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127,442 | |||
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Other
assets, net
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58,066 | |||
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Goodwill,
net
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37,912 | |||
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Total
assets
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$ | 1,477,732 | ||
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Liabilities and
Shareholders’ Equity
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||||
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Current
liabilities:
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||||
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Current
installments of capital lease obligations
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$ | 362 | ||
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Accounts
payable
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257,295 | |||
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Accrued
liabilities
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63,690 | |||
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Total
current liabilities
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321,347 | |||
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Capital
lease obligations, less current installments
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11,019 | |||
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Other
long-term liabilities
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24,350 | |||
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Shareholders’
equity
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1,121,016 | |||
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Total
liabilities and shareholders’ equity
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$ | 1,477,732 | ||