Benchmark Electronics, Inc.
Revenue for the year ending December 31, 2001 was $1.3 billion a 25% decrease from $1.7 billion of revenue in the previous year. Cash net income (excluding amortization of goodwill and non-recurring charges, net of tax) was $16 million for the year ending December 31, 2001 compared to $29 million for the prior year. Diluted cash earnings per share was $0.81 for the year ended December 31, 2001 compared to $1.54 per share in the prior year.
On a GAAP basis, the net loss for the quarter was $0.3 million or $0.02 per share, compared to net income of $8.1 million or $0.40 per share in the previous year and a net loss for the year of $54.3 million or $2.77 per share, compared to net income of $19.9 million or $1.06 per share in the previous year.
"We are pleased to be one of the first in our industry to benefit from the revenues in our new program introductions and new customer program wins during the fourth quarter of 2001. This is significant since we were one of the first in the industry to feel the effects of the downturn in the first quarter of 2001. These new programs provided the increase in sequential organic revenue growth in the fourth quarter. Our complex systems integration services combined with our commitment to proactive teaming with our customers and our flexibility proved invaluable in navigating through the past year's rapid and prolonged downturn in our customers' product demand levels. These long-standing fundamentals of our Benchmark culture allowed our team to demonstrate once again for customers our service capabilities and agility. We did this by responding to the negative marketplace changes in 2001 just as rapidly as we responded to the growth periods of 1999 and 2000," commented Cary T. Fu, president of Benchmark Electronics, Inc.
Quarterly Financial Highlights -- Cash generated from operations was $69 million in the fourth quarter. -- Fourth quarter revenue grew by 5.0% over the prior quarter. -- Gross margin increased from 7.3% to 7.6%. -- Accounts receivables increased by $3 million to $180 million in the fourth quarter as compared to $177 million in the third quarter. Calculated DSO was 60 days. -- Inventories decreased to $197 million in the quarter as compared to $237 million for the third quarter. Inventory turns were 5.1 for the quarter. -- During the fourth quarter the Company recorded $2.5 million in previously announced restructuring charges. First Quarter 2002 Guidance
The Company expects first quarter 2002 revenues in the range of $275 -- $300 million with corresponding cash earnings per share in the range of $0.16 -- $0.18, based on current customer indications. The Company does not anticipate any additional restructuring charges in 2002.
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 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/.
Benchmark Electronics, Inc. and Subsidiaries Consolidated Statements of Income (Amounts in Thousands, Except Per Share Data) (UNAUDITED) Three Months Ended Year Ended December 31, December 31, 2001 2000 2001 2000 Net sales $269,643 489,658 1,276,950 1,704,924 Cost of sales 249,246 452,801 1,183,440 1,580,817 Gross profit 20,397 36,857 93,510 124,107 Selling, general and administrative expenses 12,977 16,235 54,383 57,871 Restructuring charges 2,475 -- 69,289 -- Amortization of goodwill 2,552 3,425 12,219 12,841 Operating income (loss) 2,393 17,197 (42,381) 53,395 Other income (expense): Interest expense (2,823) (6,145) (16,998) (24,396) Other 73 (211) 1,086 (569) Total other expense, net (2,750) (6,356) (15,912) (24,965) Income (loss) before income taxes (357) 10,841 (58,293) 28,430 Income tax expense (benefit) (41) 2,760 (3,981) 8,529 Net income (loss) $(316) 8,081 (54,312) 19,901 Earnings (loss) per share: Basic $(0.02) 0.41 (2.77) 1.13 Diluted (0.02) 0.40 (2.77) 1.06 Earnings per share before restructuring charges: Basic $0.08 0.41 0.39 1.13 Diluted 0.07 0.40 0.38 1.06 Cash 0.16 0.52 0.81 1.54 Weighted average number of shares outstanding: Basic 19,651 19,548 19,625 17,578 Diluted 19,651 20,453 19,625 18,718 Condensed Consolidated Balance Sheet December 31, 2001 (Amounts in Thousands) (UNAUDITED) Assets Current assets: Cash $ 59,879 Accounts receivable, net 180,021 Inventories, net 197,278 Other current assets 25,112 Total current assets 462,290 Property, plant and equipment, net 93,805 Other assets, net 12,194 Goodwill, net 119,209 Total assets $ 687,498 Liabilities and Shareholders' Equity Current liabilities: Current installments of other long-term debt $ 22,367 Accounts payable 144,150 Other current liabilities 26,541 Total current liabilities 193,058 Revolving line of credit -- Convertible subordinated notes 80,200 Other long-term debt, excluding current installments 44,695 Other long-term liabilities 17,863 Shareholders' equity 351,682 Total liabilities and shareholders' equity $ 687,498
SOURCE: Benchmark Electronics, Inc.
Contact: Gayla J. Delly, Chief Financial Officer of Benchmark