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/
