Benchmark Electronics, Inc.,
"Our team's performance speaks for itself. We are executing well and are continuing to challenge our teams to improve across all areas. While the technology recession continues, our vigilance to remain the supplier of choice for the sectors we serve has never been stronger," commented Cary T. Fu, President of Benchmark Electronics, Inc.
Quarterly Financial Highlights
-- Received Supplier of the Year Award from two major customers for 2002
-- Cash generated from operations was $63 million in the third quarter of
2002 and $136 million for the nine month period ended September 30,
2002.
-- Accounts receivables decreased by $4 million to $188 million in the
third quarter of 2002 from $192 million in the second quarter of 2002.
Calculated days sales outstanding improved to 40 days from 43 days in
the previous quarter.
-- Inventories increased to $208.7 million in the third quarter of 2002
from $195.7 million for the second quarter of 2002. Inventory turns
remained comparable to the prior quarter at 7.6 for the quarter.
Fourth Quarter 2002 Guidance
Based on current customer indications, the Company expects fourth quarter 2002 revenues to range from $425 million to $440 million, with corresponding earnings per share of $0.37 to $0.40.
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 computers and related products for business enterprises, medical devices, video/audio/entertainment products, industrial control equipment, testing and instrumentation products, and telecommunication equipment. Benchmark's global operations include facilities in seven 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 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,
2002 2001 2002 2001
Net sales $ 428,278 257,969 1,161,841 1,007,307
Cost of sales 395,767 239,071 1,073,653 934,194
Gross profit 32,511 18,898 88,188 73,113
Selling, general and
administrative expenses 17,268 12,581 47,566 41,406
Asset write-offs --- 61,720 1,608 61,720
Restructuring charges --- 481 --- 5,094
Amortization of goodwill --- 3,222 --- 9,667
Operating income (loss) 15,243 (59,106) 39,014 (44,774)
Other income (expense):
Interest expense (2,886) (3,862) (8,577) (14,175)
Other 2,364 719 5,543 1,013
Total other expense, net (522) (3,143) (3,034) (13,162)
Income (loss) before
income taxes 14,721 (62,249) 35,980 (57,936)
Income tax expense
(benefit) 5,138 (5,234) 12,791 (3,940)
Net income (loss) $ 9,583 (57,015) 23,189 (53,996)
Earnings (loss) per share:
Basic $ 0.40 (2.90) 1.03 (2.75)
Diluted 0.38 (2.90) 0.99 (2.75)
Cash 0.38 0.11 0.99 0.64
Earnings per share before
restructuring charges:
Basic $ 0.40 0.00 1.03 0.32
Diluted 0.38 0.00 0.99 0.31
Cash 0.38 0.11 0.99 0.64
Weighted average number of
shares outstanding:
Basic 24,246 19,645 22,565 19,616
Diluted 24,924 19,645 23,378 19,616
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
September 30, 2002
(Amounts in Thousands)
(UNAUDITED)
Assets
Current assets:
Cash $ 237,621
Accounts receivable, net 188,393
Inventories, net 208,694
Other current assets 32,888
Total current assets 667,596
Property, plant and equipment, net 93,155
Other assets, net 10,535
Goodwill, net 130,976
Total assets $ 902,262
Liabilities and Shareholders' Equity
Current liabilities:
Current installments
of other long-term debt $ 28,736
Notes payable 565
Accounts payable 199,157
Other current liabilities 49,390
Total current liabilities 277,848
Convertible subordinated notes 80,200
Other long-term debt, excluding
current installments 39,166
Other long-term liabilities 22,174
Shareholders' equity 482,874
Total liabilities
and shareholders' equity $ 902,262
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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/
