EX-99.1 2 ex99-1.htm EXHIBIT 99.1  

 

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

BENCHMARK ELECTRONICS REPORTS RESULTS FOR THE

QUARTER ENDED MARCH 31, 2014

 

ANGLETON, TX, APRIL 24, 2014 – Benchmark Electronics, Inc. (NYSE: BHE), a leading integrated contract manufacturing provider, today announced financial results for its first quarter.

 

“Benchmark again delivered strong performance, which allowed us to exceed our earnings expectations in the first quarter,” noted Gayla J. Delly, President and CEO. “Our focus on growth opportunities in the non‐traditional market sectors, coupled with operational excellence and enhanced customer solutions, resulted in improved year‐over‐year revenue and operating margins. Our strategy is delivering results and we expect to continue to expand margins and drive additional improvements throughout the year.”

 

First Quarter 2014 Highlights

·         Revenue of $639 million increased 18% from Q1 2013.

·         New program bookings in Q1 2014 were $135 million to $165 million.

·         Restructuring and integration and acquisition-related costs totaled $2.1 million.

·         Thailand flood related items include insurance recoveries of $1.6 million. The recovery process with our insurance carriers is complete.

·         Cash flows provided by operating activities for Q1 2014 were approximately $61 million.

·         Cash and cash equivalents balance was $394 million at March 31, 2014.

·         Accounts receivable was $465 million at March 31, 2014; calculated days sales outstanding were 65 days compared to 67 days at December 31, 2013 and 69 days at March 31, 2013.

·         Inventory was $443 million at March 31, 2014; inventory turns were 5.3 times compared to 7.0 at December 31, 2013 and 6.3 at March 31, 2013. Inventory increased in the first quarter to support new program ramps.

·         Repurchases of common shares for the first quarter totaled $5 million or 196,000 shares.

·         Non-GAAP operating margin for the first quarter was 3.6%.

·         Income tax expense for Q1 2014 includes a $1.2 million discrete tax benefit ($0.02 per diluted share) as a result of a 2013 tax rate incentive received in China during the first quarter.

 

First Quarter Industry Sector Update

The following table sets forth revenue by industry sector for the quarters ended March 31, 2014, December 31, 2013 and March 31, 2013.

 

  

  

March 31,

  

December 31,

  

March 31,

  

  

  

2014 

  

2013 

  

2013 

  

Computers and related products for business

  

  

  

  

  

  

  

enterprises

 20 

%

 32 

%

 25 

%

Industrial control equipment

 29 

  

 26 

  

 29 

  

Telecommunication equipment

 27 

  

 24 

  

 26 

  

Medical devices

 11 

  

 10 

  

 13 

  

Testing and instrumentation products

 13 

  

 8 

  

 7 

  

  

  

 100 

%

 100 

%

 100 

%

 

Second Quarter 2014 Outlook

·         Revenue between $665 and $700 million.

 

·         Diluted earnings per share between $0.35 and $0.40 (excluding restructuring charges and integration costs).

 

Conference Call Details

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.

 

About Benchmark Electronics, Inc.

Benchmark Electronics, Inc. provides integrated manufacturing, design and engineering services to original equipment manufacturers of computers and related products for business enterprises, medical devices, industrial control equipment (which includes equipment for the aerospace and defense industry), testing and instrumentation products, and telecommunication equipment. Benchmark’s global operations include facilities in seven countries. Benchmark’s common shares trade on the New York Stock Exchange under the symbol BHE.

 

For More Information, Please Contact:

Lisa K. Weeks, VP of Strategy & Investor Relations

979-849-6550 (ext. 1361) or lisa.weeks@bench.com

 

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 U.S. 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 press 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 “our strategy is delivering results and we expect to continue to expand margins and drive additional improvements throughout the year”, our sales and diluted earnings per share (excluding special items) guidance for the second quarter of 2014, 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. 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. Readers are advised to consult further disclosures on related subjects in the Company’s Annual

 

Report on Form 10-K for the year ended December 31, 2013, in its other filings with the Securities and Exchange Commission and in its press releases.

###

 

 

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,

  

  

  

  

2014 

  

2013 

  

2013 

  

  

  

  

  

  

  

  

  

  

Income from operations (GAAP)

$

 22,432 

$

 60,275 

$

 13,993 

  

Restructuring charges and integration

  

  

  

  

  

  

  

 and acquisition-related costs

  

 2,109 

  

 2,025 

  

 442 

  

Thailand flood related items, net of insurance

  

 (1,571) 

  

 (31,577) 

  

 - 

  

Non-GAAP income from operations

$

 22,970 

$

 30,723 

$

 14,435 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Net income (GAAP)

$

 19,125 

$

 67,489 

$

 11,487 

  

Restructuring charges and integration and

  

  

  

  

  

  

  

 acquisition-related costs, net of tax

  

 1,383 

  

 1,343 

  

 399 

  

Thailand flood related items, net of insurance and tax

  

 (1,263) 

  

 (27,810) 

  

 - 

  

Discrete US tax benefit

  

 - 

  

 (17,500) 

  

 - 

  

Non-GAAP net income

$

 19,245 

$

 23,522 

$

 11,886 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Earnings per share: (GAAP)

  

  

  

  

  

  

  

  

Basic

$

 0.36 

$

 1.26 

$

 0.21 

  

  

Diluted

$

 0.35 

$

 1.24 

$

 0.21 

  

  

  

  

  

  

  

  

  

  

Earnings per share: (Non-GAAP)

  

  

  

  

  

  

  

  

Basic

$

 0.36 

$

 0.44 

$

 0.22 

  

  

Diluted

$

 0.35 

$

 0.43 

$

 0.22 

  

  

  

  

  

  

  

  

  

  

Weighted-average number of shares used

  

  

  

  

  

  

  

 in calculating earnings per share:

  

  

  

  

  

  

  

  

Basic

  

 53,650 

  

 53,773 

  

 54,796 

  

  

Diluted

  

 54,277 

  

 54,327 

  

 55,150 

  
 

 

Benchmark Electronics, Inc. and Subsidiaries

  

  

  

  

  

  

  

  

Consolidated Statements of Income

  

(Amounts in Thousands, Except Per Share Data)

  

(UNAUDITED)

  

  

  

  

  

  

Three Months Ended

  

  

  

  

March 31,

  

  

  

2014 

  

2013 

  

Sales

$

 639,344 

$

 542,444 

  

Cost of sales

  

 588,221 

  

 505,610 

  

  

Gross profit

  

 51,123 

  

 36,834 

  

Selling, general and administrative expenses

  

 28,153 

  

 22,399 

  

Restructuring charges and integration and acquisition-related costs

  

 2,109 

  

 442 

  

Thailand flood related items, net of insurance

  

 (1,571) 

  

 - 

  

  

Income from operations

  

 22,432 

  

 13,993 

  

Interest expense

  

 (476) 

  

 (459) 

  

Interest income

  

 515 

  

 414 

  

Other income, net

  

 26 

  

 316 

  

  

Income before income taxes

  

 22,497 

  

 14,264 

  

Income tax expense

  

 3,372 

  

 2,777 

  

  

Net income

$

 19,125 

$

 11,487 

  

  

  

  

  

  

  

  

Earnings per share:

  

  

  

  

  

  

Basic

$

 0.36 

$

 0.21 

  

  

Diluted

$

 0.35 

$

 0.21 

  

  

  

  

  

  

  

  

Weighted-average number of shares used in calculating earnings per share:

  

  

  

  

  

  

Basic

  

 53,650 

  

 54,796 

  

  

Diluted

  

 54,277 

  

 55,150 

  
 

 

Benchmark Electronics, Inc. and Subsidiaries

  

  

  

  

  

  

  

  

  

Condensed Consolidated Balance Sheets

(in thousands)

  

  

  

  

  

  

March 31,

  

December 31,

  

  

  

  

  

  

2014 

  

2013 

  

  

  

  

  

  

(unaudited)

  

  

Assets

  

  

  

  

  

Current assets:

  

  

  

  

  

  

Cash and cash equivalents

$

 394,194 

$

 345,555 

  

  

Accounts receivable, net

  

 464,999 

  

 559,763 

  

  

Inventories, net

  

 443,203 

  

 396,699 

  

  

Other current assets

  

 40,222 

  

 40,816 

  

  

  

  

Total current assets

  

 1,342,618 

  

 1,342,833 

  

Long-term investments

  

 9,906 

  

 9,921 

  

Property, plant and equipment, net

  

 187,689 

  

 185,319 

  

Goodwill and other, net

  

 117,678 

  

 119,298 

  

  

  

  

Total assets

$

 1,657,891 

$

 1,657,371 

  

  

  

  

  

  

  

  

  

Liabilities and Shareholders’ Equity

  

  

  

  

  

Current liabilities:

  

  

  

  

  

  

Current installments of capital lease obligations

$

 605 

$

 582 

  

  

Accounts payable

  

 299,715 

  

 320,953 

  

  

Accrued liabilities

  

 75,861 

  

 76,842 

  

  

  

  

Total current liabilities

  

 376,181 

  

 398,377 

  

Capital lease obligations, less current installments

  

 9,366 

  

 9,521 

  

Other long-term liabilities

  

 23,670 

  

 22,440 

  

Shareholders’ equity

  

 1,248,674 

  

 1,227,033 

  

  

  

  

Total liabilities and shareholders’ equity

$

 1,657,891 

$

 1,657,371