Benchmark Electronics, Inc.,
Sales revenue for the year ending December 31, 2002 was $1.6 billion, a 28% increase from $1.3 billion of revenue in the previous year. Net income for the year ended December 31, 2002 was $35.9 million on a GAAP basis, compared to a net loss of $54.3 million on the same basis in the prior year and to net income, excluding amortization of goodwill and restructuring charges, net of tax, of $16 million for the prior year. Diluted earnings per share on a GAAP basis was $1.51 for the year ending December 31, 2002, compared to $2.77 loss per share on the same basis in the prior year and to $0.81 cash earnings per share, excluding amortization of goodwill and restructuring charges, net of tax, in the prior year.
"The fourth quarter results exceeded our expectations," commented Cary T. Fu, President of Benchmark Electronics, Inc. "The performance of our team amidst the pressures of the marketplace during 2002 was evidenced through the strong support from our customers and new program awards throughout the year. We are proud of the results we had during 2002, and look forward to 2003 as an opportunity to further improve our financial and operational efficiencies."
Financial Highlights
-- Cash balance at December 31, 2002 of $313 million.
-- Cash generated from operations was $85 million in the fourth quarter
of 2002 and $222 million for the year ended December 31, 2002.
-- Accounts receivables decreased by $9 million to $179 million at the
end of the fourth quarter of 2002 from $188 million at the end of the
third quarter of 2002. Calculated days sales outstanding improved to
34 days from 40 days in the previous quarter.
-- Inventories decreased to $196 million at the end of the fourth quarter
of 2002 from $209 million at the end of the third quarter of 2002.
Inventory turns improved to 8.8 from 7.6 in the previous quarter.
First Quarter 2003 Guidance
Based on current customer indications, the Company expects the first quarter 2003 revenues to range from $440 million to $455 million, with corresponding earnings per share of $0.42 to $0.46. While this represents a slight sequential decrease from actual fourth quarter revenues, it reflects a slight sequential increase over our original fourth quarter expectations. Our fourth quarter revenues of $468 million exceeded our original revenue guidance of $425 million to $440 million due to increased demand levels.
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 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 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,
2002 2001 2002 2001
Net sales $468,179 269,643 1,630,020 1,276,950
Cost of sales 431,513 249,246 1,505,166 1,183,440
Gross profit 36,666 20,397 124,854 93,510
Selling, general and
administrative
expenses 16,625 12,977 64,191 54,383
Asset write-offs --- --- 1,608 61,720
Restructuring charges --- 2,475 --- 7,569
Amortization of
goodwill --- 2,552 --- 12,219
Operating income
(loss) 20,041 2,393 59,055 (42,381)
Other income (expense):
Interest expense (2,807) (2,823) (11,385) (16,998)
Other 1,753 73 7,296 1,086
Total other
expense, net (1,054) (2,750) (4,089) (15,912)
Income (loss) before
income taxes 18,987 (357) 54,966 (58,293)
Income tax
expense (benefit) 6,282 (41) 19,073 (3,981)
Net income (loss) $12,705 (316) 35,893 (54,312)
Earnings (loss)
per share:
Basic $0.52 (0.02) 1.56 (2.77)
Diluted 0.50 (A) (0.02) 1.51 (2.77)
Cash 0.50 0.16 1.51 0.81
Earnings per share
before restructuring
charges:
Basic $0.52 0.08 1.56 0.39
Diluted 0.50 (A) 0.07 1.51 0.38
Cash 0.50 0.16 1.51 0.81
Weighted average
number of shares
outstanding:
Basic 24,283 19,651 22,936 19,625
Diluted 27,141 (A) 19,651 23,732 19,625
(A) Includes add back of dilutive shares of 1,995 and dilutive interest
expense on convertible subordinated notes, net of tax, of $805.
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
December 31, 2002
(Amounts in Thousands)
(UNAUDITED)
Assets
Current assets:
Cash $312,576
Accounts receivable, net 178,957
Inventories, net 195,670
Other current assets 21,129
Total current assets 708,332
Property, plant and equipment, net 94,040
Other assets, net 10,056
Goodwill, net 119,823
Total assets $932,251
Liabilities and Shareholders' Equity
Current liabilities:
Current installments of other long-term debt $28,628
Accounts payable 212,938
Other current liabilities 74,393
Total current liabilities 315,959
Convertible subordinated notes 80,200
Other long-term debt, excluding current installments 28,339
Other long-term liabilities 8,723
Shareholders' equity 499,030
Total liabilities and shareholders' equity $932,251
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/
