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8-K - 8-K - BENCHMARK ELECTRONICS INCForm_8K.htm
EX-99.2 - EXHIBIT 99.2 - BENCHMARK ELECTRONICS INCEx_99.2.htm

 

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

 

BENCHMARK ELECTRONICS REPORTS RESULTS FOR THE

QUARTER ENDED SEPTEMBER 30, 2013

 

ANGLETON, TX, OCTOBER 24, 2013 – Benchmark Electronics, Inc. (NYSE: BHE), a leading integrated contract manufacturing provider, today announced financial results for the third quarter which ended September 30, 2013.

 

  

  

  

Three Months Ended

  

  

  

  

September 30,

  

  

June 30,

  

  

September 30,

  

  

  

2013 

  

  

2013 

  

  

2012 

  

Net sales (in millions)

  

$600

  

  

$608

  

  

$611

  

Net income (in millions)

  

$24

  

  

$8

  

  

$19

  

Net income – non-GAAP (in millions)

  

$17

  

  

$17

  

  

$18

  

Diluted EPS

  

$0.43

  

  

$0.16

  

  

$0.34

  

Diluted EPS – non-GAAP

  

$0.31

  

  

$0.31

  

  

$0.31

  

Operating margin (%)

  

 4.9 

%

  

 2.1 

%

  

 4.1 

%

Operating margin – non-GAAP (%)

  

 3.5 

%

  

 3.5 

%

  

 3.7 

%

 

“We are pleased with the results for the quarter with revenues and earnings in line with our expectations,” said President and CEO Gayla J. Delly. “In the third quarter, we experienced revenue growth in three of our five industries that we serve and expect growth in all industry sectors next quarter. Expected strong fourth quarter revenue growth is reflective of the new program ramps and are further diversified with revenue contribution from our recent acquisitions.”

 

Third Quarter 2013 Highlights

·         Revenue of $600 million decreased slightly from Q2 2013.

·         Top customer represented 15% of revenue.

·         New program bookings in Q3 2013 were $145 million to $170 million.

·         Restructuring and integration and acquisition-related costs totaled $1 million.

·         Cash flows provided by operating activities for Q3 2013 were approximately $39 million, which included approximately $10 million of Thailand flood insurance recoveries. The recovery process with our insurance carriers is ongoing.

·         Cash and long-term investments balance was $437 million at September 30, 2013.

·         Accounts receivable was $424 million at September 30, 2013; calculated days sales outstanding were 64 days compared to 69 days at June 30, 2013 and 67 days at September 30, 2012.

·         Inventory was $395 million at September 30, 2013; inventory turns were 5.6 times compared to 6.4 at June 30, 2013 and 6.0 at September 30, 2012.

·         Repurchases of common shares for the third quarter totaled $9 million or 431 thousand  shares. 

·         Operating margins of 3.5% were maintained despite late quarter order reductions and headwinds associated with new product ramps.

 

Subsequent Events


 

We acquired the EMS segment of CTS Corporation for $75 million. The acquired business has a footprint of five locations (4 in North America and 1 in Asia).

 

Third Quarter Industry Sector Update

The following table sets forth revenue by industry sector for the quarters ended September 30, 2013, June 30, 2013 and September 30, 2012.

 

  

  

September 30,

  

June 30,

  

September 30,

  

  

  

2013 

  

2013 

  

2012 

  

Computers and related products for business

  

  

  

  

  

  

  

enterprises

 30 

%

 29 

%

 30 

%

Industrial control equipment

 31 

  

 30 

  

 27 

  

Telecommunication equipment

 20 

  

 23 

  

 28 

  

Medical devices

 12 

  

 12 

  

 10 

  

Testing and instrumentation products

 7 

  

 6 

  

 5 

  

  

  

 100 

%

 100 

%

 100 

%

 

Fourth Quarter 2013 Outlook

·         Revenue between $685 and $715 million.

·         Diluted earnings per share between $0.34 and $0.38 (excluding restructuring, acquisition and Thailand flood related items).

 

Conference Call Details

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.

 

About Benchmark Electronics, Inc.

Benchmark Electronics, Inc. provides integrated manufacturing, design and engineering services to original equipment manufacturers of computers and related products for business enterprises, medical devices, industrial control equipment (which includes equipment for the aerospace and defense industry), testing and instrumentation products, and telecommunication equipment. Benchmark’s global operations include facilities in seven countries. Benchmark’s Common Shares trade on the New York Stock Exchange under the symbol BHE.

 

For More Information, Please Contact:

Lisa K. Weeks, VP of Strategy & Investor Relations

979-849-6550 (ext. 1361) or lisa.weeks@bench.com

 

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 “expected strong fourth quarter revenue growth is reflective of the new program ramps and are further diversified with revenue contribution from our recent acquisitions”, our sales and diluted earnings per share (excluding special items) guidance for the fourth quarter of 2013, as well as other statements, express or implied, concerning: the potential recovery of insurance proceeds; 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. 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, 2012, in its other filings with the Securities and Exchange Commission and in its press releases.

###


 

 

Benchmark Electronics, Inc. and Subsidiaries

  

  

  

  

  

  

  

  

  

  

  

Consolidated Statements of Income

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)

  

  

  

  

Three Months Ended

  

  

Nine Months Ended

  

  

  

September 30,

  

  

September 30,

  

  

2013 

  

2012 

  

  

2013 

  

2012 

Sales

$

 599,658 

$

 610,769 

  

$

 1,749,624 

$

 1,834,217 

Cost of sales

  

 554,218 

  

 565,989 

  

  

 1,622,983 

  

 1,702,938 

  

Gross profit

  

 45,440 

  

 44,780 

  

  

 126,641 

  

 131,279 

Selling, general and administrative expenses

  

 24,501 

  

 22,453 

  

  

 70,211 

  

 67,733 

Restructuring charges and integration

  

  

  

  

  

  

  

  

  

   and acquisition-related costs

  

 1,214 

  

 523 

  

  

 7,323 

  

 773 

Asset impairment charge and other

  

 - 

  

 - 

  

  

 2,606 

  

 - 

Thailand flood related items, net of insurance

  

 (9,748) 

  

 (3,078) 

  

  

 (9,748) 

  

 11,798 

  

Income from operations

  

 29,473 

  

 24,882 

  

  

 56,249 

  

 50,975 

Interest expense

  

 (481) 

  

 (443) 

  

  

 (1,403) 

  

 (1,090) 

Interest income

  

 292 

  

 326 

  

  

 997 

  

 935 

Other income, net

  

 745 

  

 178 

  

  

 560 

  

 96 

  

Income before income taxes

  

 30,029 

  

 24,943 

  

  

 56,403 

  

 50,916 

Income tax expense

  

 6,303 

  

 5,629 

  

  

 12,733 

  

 12,424 

  

Net income

$

 23,726 

$

 19,314 

  

$

 43,670 

$

 38,492 

  

  

  

  

  

  

  

  

  

  

  

Earnings per share:

  

  

  

  

  

  

  

  

  

  

Basic

$

 0.44 

$

0.35 

  

$

 0.80 

$

0.68 

  

Diluted

$

 0.43 

$

0.34 

  

$

 0.80 

$

0.67 

  

  

  

  

  

  

  

  

  

  

  

Weighted-average number of shares used in calculating earnings per share:

  

  

  

  

  

  

  

  

  

  

Basic

  

 54,087 

  

 55,814 

  

  

 54,361 

  

 56,750 

  

Diluted

  

 54,611 

  

 56,028 

  

  

 54,868 

  

 57,054 


 

 

Benchmark Electronics, Inc. and Subsidiaries

  

  

  

  

  

  

  

  

  

Condensed Consolidated Balance Sheets

(in thousands)

  

  

  

  

  

  

September 30,

  

December 31,

  

  

  

  

  

  

2013 

  

2012 

  

  

  

  

  

  

(unaudited)

  

  

Assets

  

  

  

  

  

Current assets:

  

  

  

  

  

  

Cash and cash equivalents

$

 426,560 

$

 384,579 

  

  

Accounts receivable, net

  

 423,564 

  

 459,081 

  

  

Inventories, net

  

 394,977 

  

 324,041 

  

  

Other current assets

  

 43,225 

  

 46,490 

  

  

  

  

Total current assets

  

 1,288,326 

  

 1,214,191 

  

Long-term investments

  

 10,617 

  

 10,324 

  

Property, plant and equipment, net

  

 173,336 

  

 176,104 

  

Goodwill, net

  

 37,912 

  

 37,912 

  

Other, net

  

 53,377 

  

 62,946 

  

  

  

  

Total assets

$

 1,563,568 

$

 1,501,477 

  

  

  

  

  

  

  

  

  

Liabilities and Shareholders’ Equity

  

  

  

  

  

Current liabilities:

  

  

  

  

  

  

Current installments of capital lease obligations

$

 560 

$

 497 

  

  

Accounts payable

  

 300,973 

  

 260,622 

  

  

Accrued liabilities

  

 62,141 

  

 69,396 

  

  

  

  

Total current liabilities

  

 363,674 

  

 330,515 

  

Capital lease obligations, less current installments

  

 9,672 

  

 10,103 

  

Other long-term liabilities

  

 22,469 

  

 21,334 

  

Shareholders’ equity

  

 1,167,753 

  

 1,139,525 

  

  

  

  

Total liabilities and shareholders’ equity

$

 1,563,568 

$

 1,501,477