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NYSEBHE
Benchmark Electronics Reports Results for the Quarter and Year Ended December 31, 2009
18% SEQUENTIAL REVENUE GROWTH FOR QUARTER
PRNewswire-FirstCall
ANGLETON, Texas

Benchmark Electronics, Inc. , a leading contract manufacturing provider, announced sales of $600 million for the quarter ended December 31, 2009, compared to $582 million for the same quarter in the prior year. The Company reported fourth quarter net income of $17 million, or $0.26 per diluted share. In the comparable period of 2008, the Company reported a net loss of $204 million, or $3.13 per diluted share. Excluding restructuring charges and goodwill impairment charges in 2008, the Company would have reported net income of $19 million, or $0.29 per diluted share, in the fourth quarter of 2009 and $17 million, or $0.27 per diluted share, in the fourth quarter of 2008.

Sales for the year ended December 31, 2009 were $2.1 billion, compared to $2.6 billion in 2008. The net income for the year ended December 31, 2009 was $54 million, or $0.83 per diluted share. In the prior year, the net loss was $136 million, or $2.02 per diluted share. Excluding restructuring charges and a discrete tax benefit related to a previously closed facility, the Company would have reported net income of $59 million, or $0.90 per diluted share, in 2009. Excluding goodwill impairment, restructuring charges and a discrete tax benefit related to a previously closed facility, the Company would have reported net income of $82 million, or $1.22 per diluted share, in 2008.

"I am pleased with the solid performance of our team in the fourth quarter. The strong demand from our existing customers as well as the progress of our new program ramps contributed to an 18% sequential increase in revenues over the third quarter," said Cary T. Fu, the Company's Chief Executive Officer. "Our fourth quarter revenue and operating margin improvements were achieved in the face of numerous challenges, including the inefficiencies caused by component lead time constraints. We have gained significant momentum in new business bookings and program ramps and are well positioned to continue to gain share in our key markets."

  Fourth Quarter 2009 Financial Highlights
  --  Operating margin for the fourth quarter was 3.1% on a GAAP basis and
      3.5%, excluding restructuring charges.
  --  Cash flows provided by operating activities for the fourth quarter and
      the year ended December 31, 2009 were approximately $6 million and
      $124 million, respectively.
  --  Cash and long-term investments balance was $467 million at December
      31, 2009. Long-term investments consist of $46 million of auction rate
      securities.
  --  Accounts receivable was $417 million at December 31, 2009; calculated
      days sales outstanding were 63 days.
  --  Inventory was $316 million at December 31, 2009; inventory turns were
      7.1 times.
  --  Repurchases of common shares for the fourth quarter totaled $18
      million or 1.0 million shares.
  --  Restructuring charges for the fourth quarter of 2009 were
      approximately $2.4 million primarily related to capacity reduction and
      severance related costs in Europe and the Americas.


  First Quarter 2010 Outlook

Sales for the first quarter of 2010 are expected to range from $580 million to $620 million. Diluted earnings per share for the first quarter, excluding restructuring charges, are expected to be between $0.28 and $0.32.

Non-GAAP Financial Measures

This press release includes financial measures for earnings and earnings per share that exclude 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.

The non-GAAP information included in this press release is not necessarily comparable to non-GAAP information of 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. Our forward-looking statements may be deemed to include, among other things, the statement "we have gained significant momentum in new business bookings and program ramps and are well positioned to continue to gain share in our key markets," and our sales and diluted earnings per share (excluding restructuring charges) guidance for the first quarter of 2010, as well as other statements, express or implied, concerning: future operating results or the ability to generate sales, income or cash flow; and Benchmark's business and growth strategies, including expected internal growth and performance goals. 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, and customer actions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.

All forward-looking statements included in this release are based upon information available to Benchmark as of the date of this release, and Benchmark assumes no obligation to update any such forward-looking statements. Persons are advised to consult further disclosures on related subjects in Benchmark's Form 10-K for the year ended December 31, 2008, in its other filings with the Securities and Exchange Commission and in its press releases.

Additional Information

Benchmark Electronics, Inc. provides electronics manufacturing, design and engineering 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 24 facilities in ten 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 www.bench.com.

                   Benchmark Electronics, Inc. and Subsidiaries

               Reconciliation of GAAP to Non-GAAP Financial Results
                  (Amounts in Thousands, Except Per Share Data)
                                   (UNAUDITED)

                                    Three Months Ended       Year Ended
                                       December 31,         December 31,
                                     2009       2008      2009       2008
                                     ----       ----      ----       ----

  Income (loss) from operations 
   (GAAP)                          $18,616  $(231,924)  $52,815  $(166,480)
  Restructuring charges              2,363      2,527     8,264      2,780
  Goodwill impairment                    -    247,482         -    247,482
                                   -------    -------   -------    -------
  Non-GAAP income from operations  $20,979    $18,085   $61,079    $83,782
                                   =======    =======   =======    =======

  Net income (loss) (GAAP)         $16,686  $(203,738)  $53,895  $(135,632)
  Restructuring charges, net of 
   tax                               1,951      2,266     7,293      2,494
  Discrete US tax benefit                -          -    (2,668)    (3,440)
  Goodwill impairment, net of tax        -    218,904         -    218,904 
                                   -------    -------   -------    -------
  Non-GAAP net income              $18,637    $17,432   $58,520    $82,326
                                   =======    =======   =======    =======

  Earnings (loss) per share: (GAAP)
      Basic                          $0.26     $(3.13)    $0.83     $(2.02)
      Diluted                        $0.26     $(3.13)    $0.83     $(2.02)

  Earnings per share: (Non-GAAP)
      Basic                          $0.29      $0.27     $0.90      $1.23
      Diluted                        $0.29      $0.27     $0.90      $1.22

  Weighted average shares used in 
   calculating earnings (loss) 
   per share:
      Basic                         64,173     65,173    64,758     67,060
      Diluted                       64,749     65,406    65,116     67,528




                 Benchmark Electronics, Inc. and Subsidiaries

                   Consolidated Statements of Income (Loss)
                 (Amounts in Thousands, Except Per Share Data)
                                (UNAUDITED)

                                 Three Months Ended         Year Ended
                                     December 31,           December 31,

                                   2009       2008        2009        2008
                                   ----       ----        ----        ----

  Net sales                     $600,223   $581,770  $2,089,253  $2,590,167
  Cost of sales                  556,647    540,989   1,942,674   2,414,231
                                 -------    -------   ---------   ---------

       Gross profit               43,576     40,781     146,579     175,936

  Selling, general and 
   administrative expenses        22,597     22,696      85,500      92,154
  Restructuring charges            2,363      2,527       8,264       2,780
  Goodwill impairment                  -    247,482           -     247,482
                                     ---    -------         ---     -------

       Income (loss) from 
        operations                18,616   (231,924)     52,815    (166,480)

  Other income (expense):
     Interest income                 500      1,766       2,210       8,675
     Interest expense               (348)      (353)     (1,399)     (1,455)
     Other                          (735)       224      (1,705)      1,772
                                    ----        ---      ------       -----
   Total other income (expense), 
    net                             (583)     1,637        (894)      8,992
                                  ------     ------       -----      ------
       Income (loss) before 
        income taxes              18,033   (230,287)     51,921    (157,488)

  Income tax benefit (expense)    (1,347)    26,549       1,974      21,856
                                  ------     ------       -----      ------

       Net income (loss)         $16,686  $(203,738)    $53,895   $(135,632)
                                 =======  =========     =======   =========


  Denominator for basic 
   earnings (loss) per share 
   -weighted average number of
   common shares outstanding 
   during the period              64,173     65,173      64,758      67,060
  Incremental common shares
   attributable to restricted 
   shares and the assumed 
   exercise of outstanding 
   equity instruments                576          -         358           -
                                     ---        ---         ---         ---
  Denominator for diluted 
   earnings (loss) per share      64,749     65,173      65,116      67,060
                                  ======     ======      ======      ======

  Earnings (loss)  per share:
             Basic                 $0.26     $(3.13)      $0.83      $(2.02)
                                   =====     ======       =====      ======
             Diluted               $0.26     $(3.13)      $0.83      $(2.02)
                                   =====     ======       =====      ======






                Benchmark Electronics, Inc. and Subsidiaries

                    Condensed Consolidated Balance Sheet
                             December 31, 2009
                          (Amounts in Thousands)
                                (UNAUDITED)

  Assets
  ------

  Current assets:
    Cash and cash-equivalents                $421,243
    Accounts receivable, net                  417,268
    Inventories, net                          315,743
    Other current assets                       48,657
                                            ---------                                                    
           Total current assets             1,202,911

  Long-term investments                        45,686
  Property, plant and equipment, net          126,250
  Other assets, net                            56,195
  Goodwill, net                                37,912
                                            --------- 
           Total assets                    $1,468,954
                                            =========  

  Liabilities and Shareholders' Equity
  ------------------------------------

  Current liabilities:
    Current installments of capital lease
     obligations                                 $300
    Accounts payable                          275,900
    Accrued liabilities                        60,733
                                            ---------
           Total current liabilities          336,933

  Capital lease obligations, less current
   installments                                11,381
  Other long-term liabilities                  23,856
  Shareholders' equity                      1,096,784
                                            ---------
           Total liabilities and 
            shareholders' equity           $1,468,954
                                            =========

First Call Analyst:
FCMN Contact: james.walker@bench.com

SOURCE: Benchmark Electronics, Inc.

CONTACT: Ellen M. Dylla, Investor Relations of Benchmark Electronics,
Inc., +1-979-849-6550

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