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/
