Benchmark Electronics, Inc.,
"Our third quarter results are a clear indication that our strategy is working as we delivered double digit growth in sales and net income," stated Benchmark's President and CEO Cary T. Fu. "Our continued focus and execution on meeting our customers' needs around the world have provided for strong growth, profitability and increased shareholder value."
"I would like to thank our teams for their performance during the disruption caused by the Hurricane Rita evacuation that occurred during the last ten days of the third quarter. Our team's flexibility and dedication during this historical event in the Angleton/Houston area was nothing short of remarkable."
Third Quarter 2005 Financial Highlights
* Operating margin for the third quarter was 4.4%.
* Cash flows provided by operating activities for the third quarter was
$45 million.
* Return on invested capital of 12.7%.
* Cash and short-term investments balance at September 30, 2005 of
$321 million.
* No debt outstanding.
* Accounts receivable decreased by $8 million during the quarter to
$302 million; calculated days sales outstanding were 48 days.
* Inventories increased by $5 million during the quarter to
$318 million; inventory turns were 6.6 times.
Fourth Quarter 2005 Guidance
* Revenue in the fourth quarter of 2005 is expected to be between
$585 million and $615 million.
* Earnings per share for the fourth quarter of 2005 are expected to be
$0.49 to $0.54 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 Benchmark 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 Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
Net sales $ 561,452 $ 504,750 $1,631,851 $1,477,108
Cost of sales 521,148 466,232 1,515,316 1,363,084
Gross profit 40,304 38,518 116,535 114,024
Selling, general and
administrative expenses 15,617 14,553 46,307 45,604
Income from operations 24,687 23,965 70,228 68,420
Other income (expense):
Interest expense (86) (392) (238) (1,551)
Other 2,062 849 4,688 2,603
Total other income, net 1,976 457 4,450 1,052
Income before
income taxes 26,663 24,422 74,678 69,472
Income tax expense 6,356 6,389 18,744 18,688
Net income $ 20,307 $ 18,033 $ 55,934 $ 50,784
Denominator for basic earnings
per share - weighted average
number of common shares
outstanding during the
period 41,824 41,123 41,720 41,042
Incremental common shares
attributable to
exercise of outstanding
dilutive options 946 1,190 1,031 1,345
Denominator for diluted
earnings per share 42,770 42,313 42,751 42,387
Earnings per share:
Basic $ 0.49 $ 0.44 $ 1.34 $ 1.24
Diluted $ 0.47 $ 0.43 $ 1.31 $ 1.20
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
September 30, 2005
(Amounts in Thousands)
(UNAUDITED)
Assets
Current assets:
Cash and cash-equivalents $ 125,756
Short-term investments 195,480
Accounts receivable, net 302,254
Inventories, net 317,568
Other current assets 36,342
Total current assets 977,400
Property, plant and equipment, net 87,897
Other assets, net 6,487
Goodwill, net 112,990
Total assets $ 1,184,774
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 283,115
Other current liabilities 75,070
Total current liabilities 358,185
Other long-term liabilities 9,458
Shareholders' equity 817,131
Total liabilities and shareholders' equity $ 1,184,774
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/
