Benchmark Electronics, Inc.,
"This quarter was once again challenging and it was rewarding to see the performance of the Benchmark team. We have expanded existing relationships, added new customers and ramped programs at a strong pace this year and continued to deliver strong results," commented Cary T. Fu, President and CEO of Benchmark Electronics, Inc.
Third Quarter 2004 Financial Highlights
-- Operating margin improved slightly to 4.75%.
-- Return on invested capital of 14.0%.
-- Cash balance at September 30, 2004 of $312 million.
-- No bank debt outstanding as of September 30, 2004.
-- Accounts receivable were $260 million at September 30, 2004;
calculated days sales outstanding were 46 days.
-- Inventories increased by $13 million to $290 million; inventory turns
were 6.4 times.
Fourth Quarter 2004 Guidance
-- Revenue in the fourth quarter of 2004 is expected to be between
$505 million and $530 million.
-- Earnings per share for the fourth quarter of 2004 are expected to be
$0.41 to $0.45 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 Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
Net sales $504,750 $455,352 $1,477,108 $1,352,770
Cost of sales 466,232 418,382 1,363,084 1,243,271
Gross profit 38,518 36,970 114,024 109,499
Selling, general and
administrative expenses 14,553 16,330 45,604 49,244
Contract settlement --- --- --- (8,108)
Operating income 23,965 20,640 68,420 68,363
Other income (expense):
Interest expense (392) (1,976) (1,551) (6,895)
Other 849 967 2,603 1,635
Total other income
(expense), net 457 (1,009) 1,052 (5,260)
Income before income
taxes 24,422 19,631 69,472 63,103
Income tax expense 6,389 6,687 18,688 21,076
Net income $18,033 $12,944 $50,784 $42,027
Numerator for basic
earnings per share -
net income $18,033 $12,944 $50,784 $42,027
Interest expense on
6% convertible debt,
net of tax --- 570 --- 2,187
Numerator for diluted
earnings per share $18,033 $13,514 $50,784 $44,214
Denominator for basic
earnings per share -
weighted average number
of common shares
outstanding during
the period 41,123 38,074 41,042 37,273
Incremental common shares
attributable to exercise
of outstanding dilutive
options 1,190 1,439 1,345 1,035
Incremental common shares
attributable to
conversion of
6% convertible debt --- 2,147 --- 2,706
Denominator for diluted
earnings per share 42,313 41,660 42,387 41,014
Earnings per share:
Basic $0.44 $0.34 $1.24 $1.13
Diluted $0.43 $0.32 $1.20 $1.08
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
September 30, 2004
(Amounts in Thousands)
(UNAUDITED)
Assets
Current assets:
Cash $311,693
Accounts receivable, net 259,705
Inventories, net 289,800
Other current assets 30,104
Total current assets 891,302
Property, plant and equipment, net 71,437
Other assets, net 5,824
Goodwill, net 113,474
Total assets $1,082,037
Liabilities and Shareholders' Equity
Current liabilities:
Current installments of other long-term debt $15
Accounts payable 268,847
Other current liabilities 82,215
Total current liabilities 351,077
Other long-term debt, excluding current installments ---
Other long-term liabilities 9,114
Shareholders' equity 721,846
Total liabilities and shareholders' equity $1,082,037
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/
