Benchmark Electronics, Inc.,
"Our second quarter results reflect revenue growth of 14% driven by the significant level of new program production," commented Cary T. Fu, President and CEO of Benchmark Electronics, Inc. "We are proud of the excellent results our teams delivered, driven by our intense focus on customer satisfaction. We expect strong growth and opportunities in the second half of 2005."
Second Quarter 2005 Financial Highlights
* Operating margin for the second quarter was 4.1%, impacted by a
combination of product pricing and mix as well as realignment costs of
approximately $0.6 million. When these realignment costs are
excluded, on a non-GAAP basis the operating margin was 4.3%.
* Return on invested capital of 13.1%.
* Cash and short-term investments balance at June 30, 2005 of
$287 million.
* No debt outstanding as of June 30, 2005.
* Accounts receivable increased by $43 million during the quarter to
$310 million; calculated days sales outstanding were 50 days.
* Inventories increased by $17 million during the quarter to
$313 million; inventory turns were 6.7 times.
* Working capital increased associated with our organic growth and the
high level of demand from our customers in the last month of the
quarter.
Third Quarter 2005 Guidance
* Revenue in the third quarter of 2005 is expected to be between
$555 million and $580 million.
* Earnings per share for the third quarter of 2005 are expected to be
$0.44 to $0.48 per diluted share.
Non-GAAP Financial Measures
This press release includes financial measures that exclude certain items and therefore are not in accordance with generally accepted accounting principles (GAAP). By disclosing this non-GAAP information, management intends to provide investors with additional information to further analyze the company's performance and underlying trends 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, 2004 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 Shares trade 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 (Central time) 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,
2005 2004 2005 2004
Net sales $560,817 $491,392 $1,070,399 $972,358
Cost of sales 522,071 453,043 994,168 896,852
Gross profit 38,746 38,349 76,231 75,506
Selling, general and
administrative
expenses 15,478 15,330 30,690 31,051
Operating income 23,268 23,019 45,541 44,455
Other income (expense):
Interest expense (85) (394) (152) (1,159)
Other 1,956 1,321 2,626 1,754
Total other income
(expense), net 1,871 927 2,474 595
Income before income
taxes 25,139 23,946 48,015 45,050
Income tax expense 6,441 6,390 12,388 12,299
Net income $18,698 $17,556 $35,627 $32,751
Denominator for basic
earnings per share --
weighted average
number of common
shares outstanding
during the period 41,707 41,047 41,667 41,001
Incremental common
shares attributable
to exercise of
outstanding dilutive
options 956 1,121 1,043 1,325
Denominator for
diluted earnings per
share 42,663 42,168 42,710 42,326
Earnings per share:
Basic $0.45 $0.43 $0.86 $0.80
Diluted $0.44 $0.42 $0.83 $0.77
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
June 30, 2005
(Amounts in Thousands)
(UNAUDITED)
Assets
Current assets:
Cash and cash-equivalents $ 70,118
Short-term investments 217,275
Accounts receivable, net 310,238
Inventories, net 312,833
Other current assets 31,970
Total current assets 942,434
Property, plant and equipment, net 80,215
Other assets, net 6,485
Goodwill, net 112,975
Total assets $ 1,142,109
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 265,645
Other current liabilities 74,213
Total current liabilities 339,858
Other long-term liabilities 9,084
Shareholders' equity 793,167
Total liabilities and shareholders' equity $ 1,142,109
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/
