Benchmark Electronics, Inc.
"Over the past year we remained focused on one of our key business strategies, expansion in Asia. Our team is excited about our recently announced acquisition of the ACT Thailand and UK operations. We are also pleased to announce our greenfield operation in Suzhou, China which we expect to commence production in the fourth quarter this year," commented Donald E. Nigbor, Chief Executive Officer of Benchmark Electronics, Inc.
Quarterly Financial Highlights
-- Cash generated from operations was $47 million in the second quarter
and $73 million for the six month period ended June 30th.
-- Second quarter revenue grew by 23% over first quarter 2002.
-- Accounts receivables increased by $5.8 million to $191.6 million in
the second quarter from $185.8 million in the first quarter.
Calculated days sales outstanding improved to 43 days from 51 days in
the previous quarter.
-- Inventories decreased to $195.7 million in the quarter from
$196.8 million for the first quarter 2002. Inventory turns improved
to 7.6 for the quarter from 6.2 for the first quarter.
Third Quarter 2002 Guidance
We expect to close the acquisition of the ACT Thailand and UK operations in the middle of the third quarter. Based on current customer indications and including contributions for part of the quarter from the ACT Thailand and UK operations, the Company expects third quarter 2002 revenues to range from $420 million to $430 million, with corresponding earnings per share of $0.34 to $0.37, excluding any one-time transaction and related charges associated with the acquisition.
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 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 Six Months Ended
June 30, June 30,
2002 2001 2002 2001
Net sales $404,375 317,433 733,563 749,338
Cost of sales 373,573 295,381 677,886 695,123
Gross profit 30,802 22,052 55,677 54,215
Selling, general and
administrative
expenses 16,122 14,666 30,298 28,825
Asset write-offs 1,608 --- 1,608 ---
Restructuring charges --- 3,347 --- 4,613
Amortization of
goodwill --- 3,223 --- 6,445
Operating income 13,072 816 23,771 14,332
Other income (expense):
Interest expense (2,777) (4,600) (5,691) (10,313)
Other 2,607 794 3,179 294
Total other expense,
net (170) (3,806) (2,512) (10,019)
Income (loss) before
income taxes 12,902 (2,990) 21,259 4,313
Income tax expense
(benefit) 4,644 (897) 7,653 1,294
Net income (loss) $8,258 (2,093) 13,606 3,019
Earnings (loss)
per share:
Basic $0.35 (0.11) 0.63 0.15
Diluted 0.33 (0.11) 0.60 0.15
Cash 0.33 0.01 0.60 0.37
Earnings per share
before restructuring
charges:
Basic $0.35 0.01 0.63 0.32
Diluted 0.33 0.01 0.60 0.31
Cash 0.33 0.12 0.60 0.53
Weighted average
number of shares
outstanding:
Basic 23,654 19,605 21,719 19,601
Diluted 24,691 19,605 22,585 20,312
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
June 30, 2002
(Amounts in Thousands)
(UNAUDITED)
Assets
Current assets:
Cash $225,976
Accounts receivable, net 191,585
Inventories, net 195,682
Other current assets 29,849
Total current assets 643,092
Property, plant and equipment, net 80,733
Other assets, net 15,031
Goodwill, net 119,506
Total assets $858,362
Liabilities and Shareholders' Equity
Current liabilities:
Current installments of other long-term debt $23,415
Accounts payable 188,988
Other current liabilities 37,836
Total current liabilities 250,239
Revolving line of credit ---
Convertible subordinated notes 80,200
Other long-term debt, excluding current
installments 32,514
Other long-term liabilities 18,702
Shareholders' equity 476,707
Total liabilities and shareholders' equity $858,362
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SOURCE: Benchmark Electronics, Inc.
CONTACT: Gayla J. Delly, Chief Financial Officer of Benchmark
Electronics, Inc., +1-979-849-6550
Web site: http://www.bench.com/
