benchmark.jpg

News Releases

NYSEBHE
Benchmark Reports First Quarter 2021 Results
First quarter 2021 results:
- Quarterly revenue of $506 million
- Semi-Cap revenue growth of 37% year-over-year
- Computing revenue growth of 19% year-over-year
- Higher-value markets revenue mix of 80%
- GAAP diluted EPS of $0.22 and non-GAAP diluted EPS of $0.21
- Cash from operations of $37 million and free cash flow of $30 million

TEMPE, Ariz., April 28, 2021 /PRNewswire/ -- Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the first quarter ended March 31, 2021.



Three Months Ended




Mar 31,



Dec 31,



Mar 31,


In millions, except EPS


2021



2020



2020


Sales


$

506



$

521



$

515


Net income(2)


$

8



$

8



$

4


Net income – non-GAAP(1)(2)


$

8



$

13



$

8


Diluted earnings per share(2)


$

0.22



$

0.21



$

0.10


Diluted EPS – non-GAAP(1)(2)


$

0.21



$

0.34



$

0.22


Operating margin(2)



2.4

%



2.3

%



1.3

%

Operating margin – non-GAAP(1)(2)



2.3

%



3.4

%



2.3

%


(1)     A reconciliation of GAAP and non-GAAP results is included below.

(2)     Results for the first quarter ended March 31, 2021, fourth quarter ended December 31, 2020 and first quarter 
         ended March 31, 2020 include the impact of approximately $1.4 million, $1.6 million and $0.7 million of net COVID-19 
         related costs, respectively.

"We delivered another solid quarter of revenue, earnings, and cash generation in line with our expectations," said Jeff Benck, Benchmark's President and CEO.  "We are particularly pleased with continued strength in the Semi-Cap market where revenues were up 37% year-over-year in the first quarter and are now forecasted to be up greater than 20% for the full year 2021." 

Benck continued, "Overall demand across many of our market sectors is strengthening and we expect this to continue through the year.  In the near-term, we are proactively working with our customers and suppliers to manage supply chain constraints. We remain focused on our strategic objectives which gives us confidence that we will grow revenue, margins, and earnings in 2021."

Cash Conversion Cycle



Mar 31,



Dec 31,



Mar 31,




2021



2020



2020


Accounts receivable days



49




53




56


Contract asset days



26




25




28


Inventory days



69




63




65


Accounts payable days



(64)




(54)




(61)


Advance payments from customers days



(15)




(16)




(7)


Cash Conversion Cycle days



65




71




81


First Quarter 2021 Industry Sector Update
Revenue and percentage of sales by industry sector (in millions) was as follows.



Mar 31,



Dec 31,



Mar 31,


Higher-Value Markets


2021



2020



2020


Medical


$

109



21

%


$

111



21

%


$

118



23

%

Semi-Cap



113


22




101


20




83


16


A&D



89


18




111


21




119


23


Industrials



95


19




97


19




103


20




$

406


80

%


$

420


81

%


$

423


82

%






















Mar 31,



Dec 31,



Mar 31,


Traditional Markets


2021



2020



2020


Computing


$

44



9

%


$

46



9

%


$

36



7

%

Telecommunications



56


11




55


10




56


11




$

100


20

%


$

101


19

%


$

92


18

%

Total


$

506


100

%


$

521


100

%


$

515


100

%

Overall, higher-value market revenues were down 4% year-over-year from softness in commercial aerospace (in A&D), industrials and medical elective surgeries. Traditional market revenues were up 8% year-over-year primarily from strength in the computing sector.

Second Quarter 2021 Outlook

  • Revenue between $515 - $555 million
  • Diluted GAAP earnings per share between $0.18 - $0.24
  • Diluted non-GAAP earnings per share between $0.23 - $0.29 (excluding restructuring charges and other costs and amortization of intangibles)
  • This guidance takes into consideration all known constraints for the quarter and assumes no further significant interruptions to our supply base, operations or customers. Guidance also assumes no material changes to end market conditions due to COVID-19.

Restructuring charges are expected to range between $0.8 million and $1.2 million in the second quarter and the amortization of intangibles is expected to be $1.7 million in the second quarter.

First Quarter 2021 Earnings Conference Call
The Company will host a conference call to discuss the results today at 5:00 p.m. Eastern Time.  The live webcast of the call and accompanying reference materials will be accessible by logging on to the Company's website at www.bench.com. A replay of the broadcast will also be available until Wednesday, May 5, 2021 on the Company's website.

About Benchmark Electronics, Inc.
Benchmark provides comprehensive solutions across the entire product life cycle by leading through its innovative technology and engineering design services, leveraging its optimized global supply chain and delivering world-class manufacturing services in the following industries: commercial aerospace, defense, advanced computing, next generation telecommunications, complex industrials, medical, and semiconductor capital equipment. Benchmark's global operations include facilities in seven countries and its common shares trade on the New York Stock Exchange under the symbol BHE.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act). These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts and may include words such as "anticipate," "believe," "intend," "plan," "project," "forecast," "strategy," "position," "continue," "estimate," "expect," "may," "will," "could," "predict," and similar expressions or the negative or other variations thereof. In particular, statements, express or implied, concerning future operating results, our ability to generate sales, income or cash flow, the anticipated impact of the COVID-19 pandemic, the outlook and guidance for second quarter 2021 results, our anticipated plans and responses to the COVID-19 pandemic, our expected revenue mix, our business strategy and strategic initiatives, our repurchases of shares of our common stock and our intentions concerning the payment of dividends, among others, are forward-looking statements. Although we believe these statements are based upon reasonable assumptions, they involve risks, uncertainties and assumptions that are beyond our ability to control or predict, relating to operations, markets and the business environment generally, including those discussed under Part I, Item 1A of the company's Annual Report on Form 10-K for the year ended December 31, 2020 and in any of our subsequent reports filed with the Securities and Exchange Commission (SEC). In particular, these statements also depend on the duration, severity and evolution of the COVID-19 pandemic and related risks, including government and other third-party responses to it and the consequences for the global economy, our business and the businesses of our suppliers and customers, as well as our ability (or inability) to execute on our plans to respond to the COVID-19 pandemic. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes, including the future results of our operations, may vary materially from those indicated. Undue reliance should not be placed on any forward-looking statements. Forward-looking statements are not guarantees of performance. All forward-looking statements included in this document are based upon information available to us as of the date of this document, and we assume no obligation to update.

Non-GAAP Financial Measures
Management discloses non–GAAP information to provide investors with additional information to analyze the Company's performance and underlying trends. A detailed reconciliation between GAAP results and results excluding special items ("non-GAAP") is included in the following tables attached to this document. In situations where a non-GAAP reconciliation has not been provided, the Company was unable to provide such a reconciliation without unreasonable effort due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. Management uses non–GAAP measures that exclude certain items in order to better assess operating performance and help investors compare results with our previous guidance.  This document also references "free cash flow", which the Company defines as cash flow from operations less additions to property, plant and equipment and purchased software.  The Company's non–GAAP information is not necessarily comparable to the non–GAAP information used by 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 a measure of the Company's profitability or liquidity.  Readers should consider the types of events and transactions for which adjustments have been made.

 

Benchmark Electronics, Inc. and Subsidiaries


Condensed Consolidated Statements of Income

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)




Three Months Ended




March 31,




2021



2020


Sales


$

505,721



$

514,964


Cost of sales



463,494




471,603


Gross profit



42,227




43,361


Selling, general and administrative expenses



30,548




31,575


Amortization of intangible assets



1,598




2,381


Restructuring charges and other costs



1,591




2,915


Ransomware incident related costs (recovery), net



(3,444)





Income from operations



11,934




6,490


Interest expense



(2,149)




(1,702)


Interest income



165




599


Other income (expense), net



(276)




(662)


Income before income taxes



9,674




4,725


Income tax expense



1,757




873


Net income


$

7,917



$

3,852


Earnings per share:









Basic


$

0.22



$

0.10


Diluted


$

0.22



$

0.10


Weighted-average number of shares used in calculating

   earnings per share:









Basic



36,250




36,790


Diluted



36,711




37,071


 

Benchmark Electronics, Inc. and Subsidiaries


Condensed Consolidated Balance Sheets

(UNAUDITED)

(in thousands)




March 31,



December 31,




2021



2020


Assets









Current assets:









Cash and cash equivalents


$

400,428



$

390,808


Restricted cash






5,182


Accounts receivable, net



276,287




309,331


Contract assets



148,205




142,779


Inventories



355,164




327,377


Other current assets



33,356




26,874


Total current assets



1,213,440




1,202,351


Property, plant and equipment, net



183,294




185,272


Operating lease right-of-use assets



88,915




79,966


Goodwill and other, net



275,104




276,646


Total assets


$

1,760,753



$

1,744,235











Liabilities and Shareholders' Equity









Current liabilities:









Current installments of long-term debt and finance lease obligations


$

9,209



$

9,161


Accounts payable



325,226




282,208


Advance payments from customers



76,833




84,122


Accrued liabilities



93,842




105,645


Total current liabilities



505,110




481,136


Long-term debt and finance lease obligations, less current installments



128,862




131,051


Operating lease liabilities



79,659




72,120


Other long-term liabilities



69,575




70,340


Shareholders' equity



977,547




989,588


Total liabilities and shareholders' equity


$

1,760,753



$

1,744,235


 

Benchmark Electronics, Inc. and Subsidiaries


Condensed Consolidated Statement of Cash Flows

(in thousands)

(UNAUDITED)




Three Months Ended




March 31,




2021



2020


Cash flows from operating activities:









Net income


$

7,917



$

3,852


Depreciation and amortization



11,055




12,192


Stock-based compensation expense



2,850




2,739


Accounts receivable, net



32,561




6,414


Contract assets



(5,426)




1,099


Inventories



(28,700)




(23,769)


Accounts payable



42,439




14,882


Advance payments from customers



(7,289)




1,785


Other changes in working capital and other, net



(18,794)




(22,303)


  Net cash provided by (used in) operations



36,613




(3,109)











Cash flows from investing activities:









Additions to property, plant and equipment and software



(6,422)




(12,896)


Other investing activities, net



13




1,405


  Net cash used in investing activities



(6,409)




(11,491)











Cash flows from financing activities:









Share repurchases



(13,052)




(19,329)


Net debt activity



(2,255)




92,813


Other financing activities, net



(8,453)




(6,946)


  Net cash provided by (used in) financing activities



(23,760)




66,538











Effect of exchange rate changes



(2,006)




(4,108)


Net increase in cash and cash equivalents and restricted cash



4,438




47,830


Cash and cash equivalents and restricted cash at beginning of year



395,990




363,956


Cash and cash equivalents and restricted cash at end of year


$

400,428



$

411,786


 

Benchmark Electronics, Inc. and Subsidiaries


Reconciliation of GAAP to Non-GAAP Financial Results

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)




Three Months Ended




March 31,



December 31,



March 31,




2021



2020



2020


Income from operations (GAAP)


$

11,934



$

11,857



$

6,490


Restructuring charges and other costs



1,591




4,490




1,908


Ransomware incident related costs (recovery), net



(3,444)




(45)





Impairment









1,007


Customer insolvency (recovery)



(32)




(553)





Amortization of intangible assets



1,598




1,979




2,381


Non-GAAP income from operations


$

11,647



$

17,728



$

11,786















Gross Profit (GAAP)


$

42,227



$

50,661



$

43,361


Customer insolvency (recovery)



(32)




(553)





Non-GAAP gross profit


$

42,195



$

50,108



$

43,361















Net income (GAAP)


$

7,917



$

7,695



$

3,852


Restructuring charges and other costs



1,591




4,490




1,908


Ransomware incident related costs (recovery), net



(3,444)




(45)





Customer insolvency (recovery)



(32)




(553)





Amortization of intangible assets



1,598




1,979




2,381


Impairment









1,007


Income tax adjustments(1)



169




(1,006)




(1,078)


Non-GAAP net income


$

7,799



$

12,560



$

8,070















Diluted earnings per share:













Diluted (GAAP)


$

0.22



$

0.21



$

0.10


Diluted (Non-GAAP)


$

0.21



$

0.34



$

0.22















Weighted-average number of shares used in













calculating diluted earnings per share:













Diluted (GAAP)



36,711




36,596




37,071


Diluted (Non-GAAP)



36,711




36,596




37,071















Net cash provided by (used in) operations


$

36,613



$

94,823



$

(3,109)


Additions to property, plant and equipment and software



(6,422)




(10,417)




(12,896)


Free cash flow (free cash flow used)


$

30,191



$

84,406



$

(16,005)



(1)     This amount represents the tax impact of the non-GAAP adjustments using the applicable effective tax rates.

 

SOURCE Benchmark Electronics, Inc.

For further information: Lisa K. Weeks, Senior Vice President, Chief Strategy Officer, 623-300-7052 or lisa.weeks@bench.com
Connect with Us

CONTACTS

Please direct investor queries to:

Lisa.Weeks@bench.com

 

GET INVESTOR ALERTS

* Required Fields