Benchmark Electronics, Inc.
Revenue for the year ending December 31, 2000 increased 94% to $1.7 billion from $878 million for the year earlier. Net income increased 66% to $19.9 million for the year ending December 31, 2000 from $12.0 million for the prior year. Cash EPS increased 43% to $1.54 per diluted share outstanding compared with $1.08 per share in the prior year.
Donald E. Nigbor, president and CEO of Benchmark Electronics, Inc. commented: "The last twelve months have been quite challenging and rewarding. We have successfully partnered with our customers to expand the level and scope of their outsourcing efforts. This has occurred during a difficult component market and, more recently, the technology sector slowdown. In support of the expanded relationships, we have established two additional System Integration facilities in Singapore and Huntsville. These new sites, combined with our existing Dublin system integration facility, are expected to generate over $300 million in incremental revenues from our recently announced computer and test and instrumentation programs added during 2000."
Sequential Quarterly Financial Trend Highlights -- Fourth quarter revenue grew by 7.0% over the prior quarter. -- Gross margin increased from 7.4% to 7.5%. -- Net income was $8.1 million, a 30% increase from $6.2 million. -- Cash earnings per share for the quarter increased to $0.52 from $0.42. -- Accounts receivables increased by $21 million to $278 million in the fourth quarter as compared to $257 million in the third quarter. Calculated DSO was 51 days. -- Inventories increased by $29 million in the quarter to $346 million as compared to $317 million for the third quarter. Inventory turns were 5.2 for the quarter. -- During the fourth quarter the Company wrote off against previously recorded reserves, approximately $4 million of uncollectible receivables and $11 million of worthless inventory, most of which arose in connection with the 1999 acquisition. As these amounts were previously provided for, these fourth quarter write-offs did not have an income statement impact. Year 2001 Guidance
Going forward, our targets for this year anticipate organic revenue growth of 30 to 40 percent and net income growth of 100 to 130 percent. We see stable revenue for the first half of this year and strong growth in the second half considering the impact of the tech market slowdown resulting in more cautious customers' forecast. We anticipate our Q1 revenues and net income will be comparable with Q4 performance.
This news release contains forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include component availability and cost, risk of price fluctuation, reliance on major customers, fluctuations in operating results, changes in technology, competition, the ability to manage rapid growth, the ability to manage integration of acquired operations, risks associated with international sales and operations, interest rate risk, environmental regulations, litigation, market risk, segment risk, the ability to retain key personnel and the ability to maintain our technological and manufacturing process expertise. For a further list and description of risks and uncertainties, see the reports filed by Benchmark with the Securities and Exchange Commission, specifically forms 8-K, 10-Q, S-3 and 10-K. Benchmark disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Benchmark Electronics, Inc. is in the business of manufacturing electronics and provides its services to original equipment manufacturers of telecommunication equipment, computers and related products for business enterprises, video/audio/entertainment products, industrial control equipment, testing and instrumentation products, personal computers and medical devices. Benchmark's global operations include 14 facilities in six countries. Benchmark's Common Stock trades 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 CST 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 http://www.bench.com/. Additional information in the form of a slide presentation that summarizes and discusses the quarterly results may also be found on the website.
Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Amounts in Thousands, Except Per Share Data) (UNAUDITED) Three Months Ended Year Ended December 31, December 31, 2000 1999 2000 1999 Sales $489,658 338,802 1,704,924 877,839 Cost of sales 452,801 316,580 1,580,817 810,309 Gross profit 36,857 22,222 124,107 67,530 Selling, general and administrative expenses 16,235 13,207 57,871 32,477 Amortization of goodwill 3,425 2,981 12,841 6,430 Income from operations 17,197 6,034 53,395 28,623 Other income (expense): Interest expense (6,145) (4,756) (24,395) (9,696) Other (211) 283 (570) 1,349 Total other expense, net (6,356) (4,473) (24,965) (8,347) Income before income taxes and extraordinary item 10,841 1,561 28,430 20,276 Income tax expense 2,760 268 8,529 7,005 Income before extraordinary item 8,081 1,293 19,901 13,271 Extraordinary item -- loss on extinguishment of debt --- --- --- (1,297) Net income $8,081 1,293 19,901 11,974 Earnings per share: Basic $0.41 0.08 1.13 0.85 Diluted 0.40 0.08 1.06 0.80 Cash 0.52 0.22 1.54 1.08 Weighted average number of shares outstanding: Basic 19,548 16,399 17,578 14,081 Diluted 20,453 16,849 18,718 15,010 Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Balance Sheet December 31, 2000 (Amounts in Thousands, Except Per Share Data) (UNAUDITED) Assets Current assets: Cash $23,541 Accounts receivable, net 277,620 Inventories, net 346,463 Other current assets 19,596 Total current assets 667,220 Property, plant and equipment, net 136,388 Other assets, net 19,148 Goodwill, net 166,514 Total assets $989,270 Liabilities and Shareholders' Equity Current liabilities: Current installments of other long-term debt $20,275 Accounts payable 268,358 Other current liabilities 33,220 Total current liabilities 321,853 Revolving line of credit 93,500 Convertible subordinated notes 80,200 Other long-term debt, excluding current installments 67,094 Other long-term liabilities 14,678 Shareholders' equity 411,945 Total liabilities and shareholders' equity $989,270
SOURCE: Benchmark Electronics, Inc.
Contact: Gayla J. Delly, Vice President Finance of Benchmark
Electronics, Inc., 979-849-6550