Benchmark Electronics, Inc.
"In many ways, Benchmark's second quarter performance exceeded our expectations. We improved our operational metrics, continued to realign our resources and leveraged our capacities effectively. Our second quarter new program bookings, quite impressively, were one of our highest ever," commented Cary T. Fu, President of Benchmark Electronics, Inc.
Second Quarter 2003 Financial Highlights -- Cash balance at June 30, 2003 of $336 million. -- Cash generated from operations was $29 million in the second quarter of 2003. -- Accounts receivables decreased by $3 million during the quarter to $192 million. -- Calculated days sales outstanding remained consistent at 39 days for the quarter. -- Inventories decreased by $11 million during the quarter to $186 million. -- Inventory turns increased to 8.9 from 8.4 in the previous quarter. Third Quarter 2003 Guidance -- Revenue in the third quarter of 2003 is expected to be between $445 million and $460 million. -- We expect gross margins to be relatively flat in the third quarter of 2003 compared with the second quarter of 2003. -- Earnings per share for the third quarter of 2003 are expected to be $0.44 to $0.48 per diluted share. -- The tax rate for the remainder of 2003 is expected to be approximately 33%. (1) As previously disclosed, during the first quarter of 2003 we settled and released various claims arising out of customer manufacturing agreements and recorded a non-cash gain totaling $8.1 million ($5.5 million net of tax). Diluted earnings per share excluding the impact of the contract settlement gain was $0.46 for the quarter ending March 31, 2003 calculated as follows: Diluted earnings for the quarter ended March 31, 2003 $18,149 Contract settlement gain, net of tax (5,513) Diluted earnings excluding contract settlement gain $12,636 Diluted earnings per share excluding contract settlement gain $0.46 Weighted average shares outstanding for diluted earnings per share 27,457
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 10:00am 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 Six Months Ended June 30, June 30, 2003 2002 2003 2002 Net sales $448,948 404,375 897,418 733,563 Cost of sales 412,024 373,573 824,889 677,886 Gross profit 36,924 30,802 72,529 55,677 Selling, general and administrative expenses 16,442 16,122 32,914 30,298 Contract settlement --- --- (8,108) --- Asset write-offs --- 1,608 --- 1,608 Operating income 20,482 13,072 47,723 23,771 Other income (expense): Interest expense (2,349) (2,777) (4,919) (5,691) Other (148) 2,607 668 3,179 Total other expense, net (2,497) (170) (4,251) (2,512) Income before income taxes 17,985 12,902 43,472 21,259 Income tax expense 6,233 4,644 14,389 7,653 Net income $11,752 8,258 29,083 13,606 Numerator for basic earnings per share - net income $11,752 8,258 29,083 13,606 Interest expense on 6% convertible debt, net of tax 786 --- 1,610 --- Numerator for diluted earnings per share $12,538 8,258 30,693 13,606 Denominator for basic earnings per share - weighted average number of common shares outstanding during the period 24,644 23,654 24,577 21,719 Incremental common shares attributable to exercise of outstanding dilutive options 786 1,037 868 866 Incremental common shares attributable to conversion of 6% convertible debt 1,995 --- 1,995 --- Denominator for diluted earnings per share 27,425 24,691 27,440 22,585 Earnings per share: Basic $0.48 0.35 1.18 0.63 Diluted 0.46 0.33 1.12 0.60 Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Balance Sheet June 30, 2003 (Amounts in Thousands) (UNAUDITED) Assets Current assets: Cash $335,663 Accounts receivable, net 192,332 Inventories, net 185,822 Other current assets 21,014 Total current assets 734,831 Property, plant and equipment, net 84,677 Other assets, net 8,626 Goodwill, net 116,743 Total assets $944,877 Liabilities and Shareholders' Equity Current liabilities: Current installments of other long-term debt $25,420 Accounts payable 222,308 Other current liabilities 63,665 Total current liabilities 311,393 Convertible subordinated notes 80,200 Other long-term debt, excluding current installments 7,020 Other long-term liabilities 6,941 Shareholders' equity 539,323 Total liabilities and shareholders' equity $944,877
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/