Benchmark Electronics, Inc.,
"The Benchmark team has once again delivered solid performance and results. Our flexibility and execution have enabled us to continue to perform well and attract additional opportunities, amidst a technology marketplace that has recently shown mixed indicators," commented Cary T. Fu, President of Benchmark Electronics, Inc.
Second Quarter 2004 Financial Highlights
-- Operating margin of 4.7%.
-- Return on invested capital of 14%.
-- Revenues from top customer represented 32% of total revenues.
-- Cash balance at June 30, 2004 of $312 million.
-- No bank debt outstanding as of June 30, 2004.
-- Accounts receivable remained consistent during the quarter at
$231 million.
-- Calculated days sales outstanding decreased to 42 days for the
quarter.
-- Inventories increased by $7 million during the quarter to
$277 million.
-- Inventory turns decreased to 6.5 times.
Third Quarter 2004 Guidance
-- Revenue in the third quarter of 2004 is expected to be between
$485 million and $505 million.
-- Earnings per share for the third quarter of 2004 are expected to be
$0.38 to $0.43 per diluted share.
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 http://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,
2004 2003 2004 2003
Net sales $491,392 448,948 972,358 897,418
Cost of sales 453,043 412,024 896,852 824,889
Gross profit 38,349 36,924 75,506 72,529
Selling, general and
administrative expenses 15,330 16,442 31,051 32,914
Contract settlement --- --- --- (8,108)
Operating income 23,019 20,482 44,455 47,723
Other income (expense):
Interest expense (394) (2,349) (1,159) (4,919)
Other 1,321 (148) 1,754 668
Total other income
(expense), net 927 (2,497) 595 (4,251)
Income before income
taxes 23,946 17,985 45,050 43,472
Income tax expense 6,390 6,233 12,299 14,389
Net income $17,556 11,752 32,751 29,083
Numerator for basic
earnings per share -
net income $17,556 11,752 32,751 29,083
Interest expense on 6%
convertible debt, net
of tax --- 786 --- 1,610
Numerator for diluted
earnings per share $17,556 12,538 32,751 30,693
Denominator for basic
earnings per share -
weighted average number
of common shares
outstanding during
the period 41,047 36,966 41,001 36,866
Incremental common shares
attributable to exercise
of outstanding dilutive
options 1,121 1,179 1,325 1,302
Incremental common shares
attributable to
conversion of 6%
convertible debt --- 2,993 --- 2,993
Denominator for diluted
earnings per share 42,168 41,138 42,326 41,161
Earnings per share:
Basic $0.43 0.32 0.80 0.79
Diluted $0.42 0.31 0.77 0.75
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
June 30, 2004
(Amounts in Thousands)
(UNAUDITED)
Assets
Current assets:
Cash $311,748
Accounts receivable, net 230,754
Inventories, net 277,105
Other current assets 30,229
Total current assets 849,836
Property, plant and equipment, net 74,240
Other assets, net 5,928
Goodwill, net 113,490
Total assets $1,043,494
Liabilities and Shareholders' Equity
Current liabilities:
Current installments of other long-term debt $18
Accounts payable 252,956
Other current liabilities 81,758
Total current liabilities 334,732
Other long-term debt, excluding current installments 2
Other long-term liabilities 8,244
Shareholders' equity 700,516
Total liabilities and shareholders' equity $1,043,494
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/
