Benchmark Electronics, Inc.,
"Our operating results for the third quarter were once again solid. We expect to see continued strong results in the fourth quarter driven by the ramp of new programs by several customers and the increased demand in some technology markets while we continue to diversify our customer base," commented Cary T. Fu, President of Benchmark Electronics, Inc.
Third Quarter 2003 Financial Highlights -- Cash balance at September 30, 2003 of $329 million. -- Convertible notes totaling $80.2 million converted into 1,994,987 shares of common stock. -- Total debt outstanding down to $26.5 million at September 30, 2003. -- Accounts receivable increased by $11 million during the quarter to $203 million. -- Calculated days sales outstanding increased to 40 days for the quarter. -- Inventories increased by $23 million during the quarter to $209 million. -- Inventory turns decreased to 8.0 from 8.9 in the previous quarter. Fourth Quarter 2003 Guidance -- Revenue in the fourth quarter of 2003 is expected to be between $460 million and $475 million. -- Earnings per share for the fourth quarter of 2003 are expected to be $0.47 to $0.51 per diluted share. -- During the fourth quarter of 2003, we will be closing our Scotland facility further aligning our operations with the current business environment. -- Costs related to closing this facility are estimated at $1.4 million. In addition, certain tax benefits may be realized by Benchmark as a result of this closure. -- These closure related costs and benefits have not been included in the fourth quarter guidance above.
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 Nine Months Ended September 30, September 30, 2003 2002 2003 2002 Net sales $ 455,352 428,278 1,352,770 1,161,841 Cost of sales 418,382 395,767 1,243,271 1,073,653 Gross profit 36,970 32,511 109,499 88,188 Selling, general and administrative expenses 16,330 17,268 49,244 47,566 Contract settlement --- --- (8,108) --- Asset write-offs --- --- --- 1,608 Operating income 20,640 15,243 68,363 39,014 Other income (expense): Interest expense (1,976) (2,886) (6,895) (8,577) Other 967 2,364 1,635 5,543 Total other expense, net (1,009) (522) (5,260) (3,034) Income before income taxes 19,631 14,721 63,103 35,980 Income tax expense 6,687 5,138 21,076 12,791 Net income $ 12,944 9,583 42,027 23,189 Earnings per share: Basic $ 0.51 0.40 1.69 1.03 Diluted 0.48 0.38 1.63 0.99 Weighted average number of shares outstanding: Basic 25,383 24,246 24,849 22,565 Diluted 26,749 24,924 25,843 23,378 Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Balance Sheet September 30, 2003 (Amounts in Thousands) (UNAUDITED) Assets Current assets: Cash $ 328,787 Accounts receivable, net 203,027 Inventories, net 208,635 Other current assets 21,111 Total current assets 761,560 Property, plant and equipment, net 81,855 Other assets, net 7,950 Goodwill, net 114,504 Total assets $ 965,869 Liabilities and Shareholders' Equity Current liabilities: Current installments of other long-term debt $ 26,516 Accounts payable 225,922 Other current liabilities 66,957 Total current liabilities 319,395 Other long-term debt, excluding current installments 16 Other long-term liabilities 6,784 Shareholders' equity 639,674 Total liabilities and shareholders' equity $ 965,869
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/