Benchmark Electronics, Inc.
"Our team demonstrated excellent execution during the past year of economic downturn and throughout the first quarter of 2002. Focusing on the basics of excellent performance, winning new programs, controlling costs and improving our working capital turns drove the favorable results we experienced in both the December 2001 quarter and this quarter ended March 31, 2002," commented Donald E. Nigbor, Chief Executive Officer of Benchmark Electronics, Inc.
Subsequent to the March 31, 2002 quarter end, Benchmark completed a public offering of 4,312,500 shares of its common stock at a public offering price of $27.00 per share, yielding proceeds of approximately $110 million to be used for general corporate purposes and working capital requirements.
Quarterly Financial Highlights
-- Cash generated from operations was $26 million in the first quarter.
-- First quarter revenue grew by 22% over fourth quarter 2001.
-- Accounts receivables increased by $5.8 million to $185.8 million in the
first quarter from $180.0 million in the fourth quarter. Calculated
days sales outstanding improved to 51 days from 60 days in the
previous quarter.
-- Inventories decreased to $196.8 million in the quarter from
$197.3 million for the fourth quarter 2001. Inventory turns improved
to 6.2 for the quarter from 5.1 for the December 2001 quarter.
Second Quarter 2002 Guidance
Driven by new program wins over the past two years and based on current customer indications, the Company expects second quarter 2002 revenues to range from $330 million to $350 million, with corresponding earnings per share of $0.25 to $0.28.
"This growth, however, doesn't signal our exemption from the challenging economic conditions and lackluster growth in the technology sectors that continue to result in weakened demand levels," stated Cary T. Fu, President of Benchmark Electronics, Inc. "I believe that Benchmark is well positioned to benefit from the growth that will occur when the end markets do recover, but that recovery has not yet come."
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, 2001 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 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
March 31,
2002 2001
Net sales $ 329,188 431,905
Cost of sales 304,313 399,742
Gross profit 24,875 32,163
Selling, general and administrative 14,176 14,159
expenses
Restructuring charges -- 1,266
Amortization of goodwill -- 3,222
Operating income 10,699 13,516
Other income (expense):
Interest expense (2,914) (5,713)
Other 572 (500)
Total other expense, net (2,342) (6,213)
Income before income taxes 8,357 7,303
Income tax expense 3,009 2,191
Net income $ 5,348 5,112
Earnings per share:
Basic $ 0.27 0.26
Diluted 0.26 0.25
Earnings per share before restructuring charges:
Basic $ 0.27 0.31
Diluted 0.26 0.30
Cash 0.26 0.41
Weighted average number of shares outstanding:
Basic 19,763 19,597
Diluted 20,508 20,324
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
March 31, 2002
(Amounts in Thousands)
(UNAUDITED)
Assets
Current assets:
Cash $79,940
Accounts receivable, net 185,818
Inventories, net 196,837
Other current assets 27,892
Total current assets 490,487
Property, plant and equipment, net 86,518
Other assets, net 12,238
Goodwill, net 119,249
Total assets $708,492
Liabilities and Shareholders' Equity
Current liabilities:
Current installments of other long-term debt $22,873
Accounts payable 162,698
Other current liabilities 28,754
Total current liabilities 214,325
Revolving line of credit --
Convertible subordinated notes 80,200
Other long-term debt, excluding current installments 38,650
Other long-term liabilities 17,462
Shareholders' equity 357,855
Total liabilities and shareholders' equity $708,492
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SOURCE: Benchmark Electronics, Inc.
Contact: Gayla J. Delly, Chief Financial Officer, +1-979-849-6550
Website: http://www.bench.com/
