Benchmark Electronics, Inc.,
"Our new program activities have gained momentum and the overall technology marketplace has shown improvement. Another excellent quarter resulted from our team's performance. With a high number of variables impacting our quarter, our team remained focused and flexible and delivered strong results," commented Cary T. Fu, President of Benchmark Electronics, Inc.
First Quarter 2004 Financial Highlights
-- Operating margin of 4.5%.
-- Return on invested capital of 14%.
-- Working capital metrics were impacted by new program introduction
delays, back end loading of shipments and production mix changes.
-- Concentration of revenues reduced to 33% from top customer.
-- Cash balance at March 31, 2004 of $302 million.
-- No bank debt outstanding as of March 31, 2004.
-- Accounts receivable increased by $22 million during the quarter to
$231 million.
-- Calculated days sales outstanding increased to 43 days for the
quarter.
-- Inventories increased by $31 million during the quarter to
$270 million.
Second Quarter 2004 Guidance
-- Revenue in the second quarter of 2004 is expected to be between
$465 million and $490 million.
-- Earnings per share for the second quarter of 2004 are expected to be
$0.35 to $0.39 per diluted share.
Non-GAAP Financial Measures
This press release includes financial measures for earnings and earnings per share that excludes certain items and therefore are not in accordance with generally accepted accounting principles (GAAP). A detailed reconciliation between the GAAP results and results excluding special items (non-GAAP) is included at the end of this press release. By disclosing this non-GAAP information, management intends to provide investors with additional information to further analyze the company's performance and underlying trends. Management utilizes a measure of net income and earnings per share on a non-GAAP basis that excludes certain items to better assess operating performance and to help investors compare our results with our previous guidance.
Non-GAAP information is not necessarily comparable to other companies. Non-GAAP information should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as measures of our profitability or liquidity. Users of this financial information should consider the types of events and transactions for which adjustments have been made.
Forward-Looking Statements
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, 2003 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, 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,
2004 2003
Net sales $ 480,966 448,470
Cost of sales 443,809 412,865
Gross profit 37,157 35,605
Selling, general and administrative expenses 15,721 16,472
Contract settlement --- (8,108)
Operating income 21,436 27,241
Other income (expense):
Interest expense (765) (2,570)
Other 433 816
Total other expense, net (332) (1,754)
Income before income taxes 21,104 25,487
Income tax expense 5,909 8,156
Net income $ 15,195 17,331
Numerator for basic earnings per share
- net income 15,195 17,331
Interest expense on 6% convertible debt,
net of tax --- 818
Numerator for diluted earnings per share $ 15,195 18,149
Denominator for basic earnings per share -
weighted average number of common shares
outstanding during the period 40,954 36,764
Incremental common shares attributable to
exercise of outstanding dilutive options 1,399 1,430
Incremental common shares attributable to
conversion of 6% convertible debt --- 2,993
Denominator for diluted earnings per share 42,353 41,187
Earnings per share:
Basic $ 0.37 0.47
Diluted $ 0.36 0.44
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
March 31, 2004
(Amounts in Thousands)
(UNAUDITED)
Assets
Current assets:
Cash $ 301,864
Accounts receivable, net 230,755
Inventories, net 269,726
Other current assets 27,411
Total current assets 829,756
Property, plant and equipment, net 80,133
Other assets, net 6,560
Goodwill, net 113,478
Total assets $ 1,029,927
Liabilities and Shareholders' Equity
Current liabilities:
Current installments of other long-term debt $ 17
Accounts payable 265,688
Other current liabilities 73,207
Total current liabilities 338,912
Other long-term debt, excluding current installments 7
Other long-term liabilities 8,308
Shareholders' equity 682,700
Total liabilities and shareholders' equity $ 1,029,927
Benchmark Electronics, Inc. and Subsidiaries
Consolidated Statement of Income - Excluding Special Items
Three Months Ended March 31, 2003
(Amounts in Thousands)
(UNAUDITED)
As Before
Reported Special Special
Items Items
Net sales $ 448,470 --- 448,470
Cost of sales 412,865 --- 412,865
Gross profit 35,605 --- 35,605
Selling, general and administrative
expenses 16,472 --- 16,472
Contract settlement (8,108) 8,108 ---
Operating income 27,241 (8,108) 19,133
Other income (expense):
Interest expense (2,570) --- (2,570)
Other 816 --- 816
Total other expense, net (1,754) --- (1,754)
Income before income taxes 25,487 (8,108) 17,379
Income tax expense 8,156 (2,595) 5,561
Net income $ 17,331 (5,513) 11,818
Numerator for basic earnings per
share - net income $ 11,818
Interest expense on 6% convertible
debt, net of tax 818
Numerator for diluted earnings per
share $ 12,636
Denominator for basic earnings per
share - weighted average number
of common shares outstanding
during the period 36,764
Incremental common shares
attributable to exercise
of outstanding dilutive options 1,430
Incremental common shares
attributable to conversion
of 6% convertible debt 2,993
Denominator for diluted earnings
per share 41,187
Earnings per share:
Basic $ 0.32
Diluted $ 0.31
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/
