Benchmark Electronics, Inc.,
During the first quarter, we settled and released various claims arising out of customer manufacturing agreements. In connection with the settlement of these claims, we recorded a non-cash gain totaling $8.1 million. There were no production revenues in connection with these manufacturing agreements during recent quarters.
"The first quarter results reflect the continued commitment and focus of the Benchmark team. We are reaping the benefits of our higher levels of capacity utilization, having one of the highest levels of utilization in the industry. Also, our continued cost and efficiency improvement programs over the past 18 months have significantly reduced our overhead costs. We continue to earn the confidence of new and existing customers by our consistent and excellent execution in this competitive environment," commented Cary T. Fu, President of Benchmark Electronics, Inc.
First Quarter 2003 Financial Highlights
-- Cash balance at March 31, 2003 of $322 million.
-- Cash generated from operations was $14 million in the first quarter of
2003.
-- Accounts receivables increased by $16 million to $195 million at the
end of the first quarter of 2003 from $179 million at the end of the
fourth quarter of 2002. Calculated days sales outstanding increased to
39 days from 34 days in the previous quarter.
-- Inventories increased to $197 million at the end of the first quarter
of 2003 from $196 million at the end of the fourth quarter of 2002.
Inventory turns decreased to 8.4 from 8.8 in the previous quarter.
Second Quarter 2003 Guidance
-- Revenue in the second quarter of 2003 is expected to be between
$430 million and $450 million.
-- We expect gross margins to be relatively flat in the second quarter of
2003 compared with the first quarter of 2003.
-- Earnings per share for the second quarter of 2003 are expected to be
$0.42 to $0.46 per diluted share.
-- The tax rate for the remainder of 2003 is expected to be approximately
32%.
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, 2002 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 eight 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
March 31,
2003 2002
Net sales $ 448,470 329,188
Cost of sales 412,865 304,313
Gross profit 35,605 24,875
Selling, general and
administrative expenses 16,472 14,176
Contract settlement (8,108) ---
Operating income 27,241 10,699
Other income (expense):
Interest expense (2,570) (2,914)
Other 816 572
Total other expense, net (1,754) (2,342)
Income before income taxes 25,487 8,357
Income tax expense 8,156 3,009
Net income $ 17,331 5,348
Earnings per share:
Basic $ 0.71 0.27
Diluted 0.66 0.26
Weighted average number of
shares outstanding:
Basic 24,509 19,763
Diluted 27,457 (A) 20,508
(A) Includes add back of dilutive shares of 1,995 and dilutive interest
expense on convertible subordinated notes, net of tax, of $818.
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
March 31, 2003
(Amounts in Thousands)
(UNAUDITED)
Assets
Current assets:
Cash $ 322,023
Accounts receivable, net 195,440
Inventories, net 197,270
Other current assets 21,124
Total current assets 735,857
Property, plant and equipment, net 89,107
Other assets, net 9,302
Goodwill, net 116,670
Total assets $ 950,936
Liabilities and Shareholders' Equity
Current liabilities:
Current installments of other
long-term debt $ 29,518
Accounts payable 230,422
Other current liabilities 60,046
Total current liabilities 319,986
Convertible subordinated notes 80,200
Other long-term debt, excluding
current installments 20,089
Other long-term liabilities 7,825
Shareholders' equity 522,836
Total liabilities and
shareholders' equity $ 950,936
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/
