Benchmark Electronics, Inc.
For the quarter ended September 30, 2001 sales revenue was $258 million as compared to $460 million for the same period in the prior year. Cash net income excluding restructuring charges was $2.2 million for the quarter compared to cash net income of $8.4 million in the same period a year earlier. Cash EPS excluding restructuring charges on a fully diluted basis was 11 cents per share for the quarter ended September 30, 2001 compared to 42 cents per share for the same quarter in the year earlier.
For the nine-month period ended September 30, 2001, revenue was $1.01 billion, compared to $1.21 billion for the same period in the prior year, a 17 percent decrease. Cash EPS excluding restructuring charges on a fully diluted basis was 64 cents per share for the nine months ended September 30, 2001 compared to $1.00 per share for the same period in the prior year. Cash provided from operations for the nine months ended September 30, 2001 was $101 million.
During the third quarter the company recorded a one-time pre-tax restructuring charge of $62.2 million associated with the previously announced consolidation and downsizing of certain of its facilities. These non-cash charges included the re-valuation of certain assets, including goodwill. The company anticipates additional pre-tax restructuring charges of approximately $3 million during the fourth quarter of 2001 related to the consolidation efforts.
"The weakness in end-market demand over the past nine months has dramatically changed the challenges that we face in the technology marketplace," stated Cary T. Fu, President. "Our team has shown excellent abilities to rapidly respond to market conditions, both in the fast paced uptick in demands experienced during the last calendar year and in the equally fast downturn in demands in the recent quarters. We have further reduced our cost structure through the recently announced consolidation and downsizing of facilities. Concurrently we are investing in and expanding our strengths in providing engineering support to our customers. We believe that these steps allow us to effectively compete in the current economic environment and position ourselves to be a leading electronic manufacturing services provider."
The economic uncertainties in today's marketplace make it challenging to provide guidance. However, the company expects revenues for the fourth quarter of 2001 in the range of $245 -- 275 million, and cash earnings per share, excluding restructuring charges of approximately $.09 -- .13 as the company starts to benefit from its restructuring activities, and ramping of new programs to production.
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. Although the Company 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, customer actions and the other factors discussed in Benchmark's Form 10-K for the year ended December 31, 2000 and its other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.
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 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 CDT 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/ .
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, 2001 2000 2001 2000 Net sales $257,969 459,540 1,007,307 1,215,266 Cost of sales 239,071 425,640 934,194 1,128,016 Gross profit 18,898 33,900 73,113 87,250 Selling, general and administrative expenses 12,581 15,523 41,406 41,636 Restructuring charges 62,201 -- 66,814 -- Amortization of goodwill 3,222 3,096 9,667 9,416 Operating income (loss) (59,106) 15,281 (44,774) 36,198 Other income (expense): Interest expense (3,862) (5,638) (14,175) (18,251) Other 719 (540) 1,013 (359) Total other expense, net (3,143) (6,178) (13,162) (18,610) Income (loss) before income taxes (62,249) 9,103 (57,936) 17,588 Income tax expense (benefit) (5,234) 2,867 (3,940) 5,769 Net income (loss) $(57,015) 6,236 (53,996) 11,819 Earnings (loss) per share: Basic $(2.90) 0.34 (2.75) 0.70 Diluted (2.90) 0.32 (2.75) 0.65 Earnings per share before restructuring charges: Basic $0.00 0.34 0.32 0.70 Diluted 0.00 0.32 0.31 0.65 Cash 0.11 0.42 0.64 1.00 Weighted average number of shares outstanding: Basic 19,645 18,189 19,616 16,914 Diluted 19,645 19,770 19,616 18,148 Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Balance Sheet September 30, 2001 (Amounts in Thousands) (UNAUDITED) Assets Current assets: Cash $ 24,008 Accounts receivable, net 176,629 Inventories, net 237,219 Other current assets 24,113 Total current assets 461,969 Property, plant and equipment, net 100,272 Other assets, net 13,206 Goodwill, net 122,820 Total assets $ 698,267 Liabilities and Shareholders' Equity Current liabilities: Current installments of other long-term debt $ 22,119 Accounts payable 130,529 Other current liabilities 20,349 Total current liabilities 172,997 Revolving line of credit 28,000 Convertible subordinated notes 80,200 Other long-term debt, excluding current installments 50,476 Other long-term liabilities 17,481 Shareholders' equity 349,113 Total liabilities and shareholders' equity $ 698,267
SOURCE: Benchmark Electronics, Inc.
Contact: Cary T. Fu, President, or Gayla J. Delly, Chief Financial
Officer, both of Benchmark Electronics, +1-979-849-6550