EX-99.1 2 ex99_1.htm EXHIBIT 99.1  

 

 

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

BENCHMARK ELECTRONICS REPORTS FIRST QUARTER RESULTS

 

ANGLETON, TX, APRIL 23, 2015 – Benchmark Electronics, Inc. (NYSE: BHE), a leading integrated contract manufacturing provider, today announced financial results for the quarter ending March 31, 2015.

 

 

 

 

Three Months Ended

 

 

 

 

Mar 31,

 

 

Dec 31,

 

 

Mar 31,

 

 

 

2015

 

 

2014

 

 

2014

 

Net sales (in millions)

 

$621

 

 

$710

 

 

$639

 

Net income (in millions)

 

$14

 

 

$24

 

 

$19

 

Net income – non-GAAP (in millions)

 

$18

 

 

$23

 

 

$19

 

Diluted EPS

 

$0.27

 

 

$0.45

 

 

$0.35

 

Diluted EPS – non-GAAP

 

$0.34

 

 

$0.43

 

 

$0.35

 

Operating margin (%)

 

3.0

%

 

4.0

%

 

3.5

%

Operating margin – non-GAAP (%)

 

3.8

%

 

4.0

%

 

3.6

%

 

“I am pleased with the performance of our team in a challenging quarter,” said Gayla J. Delly, Benchmark’s President and CEO. “The team delivered first quarter revenues and earnings within our expectations even though industrial control demand headwinds were stronger than expected. Our operating margin improved 20 basis points year over year, driven by our ongoing focus on operational excellence and increased revenues from our growth markets. We believe we are well positioned to continue expanding operating margins throughout the year.”

 

First Quarter 2015 Overview

·         Cash flows used in operating activities were $11 million.

·         Cash and cash equivalents balance was $384 million at March 31, 2015.

·         Repurchases of common shares totaled $16 million or 0.7 million shares.

·         New program bookings were $105 million to $125 million.

·         Accounts receivable was $491 million at March 31, 2015; calculated days sales outstanding were 71 days compared to 66 days at December 31, 2014 and 65 days at March 31, 2014.

·         Inventory was $427 million at March 31, 2015; inventory turns were 5.3 times compared to 6.5 at December 31, 2014 and 5.3 at March 31, 2014.

·         Restructuring charges and integration costs totaled $5 million.

 

 

 

 

First Quarter Industry Sector Update

The following table sets forth revenue by industry sector for the referenced quarters.

 

 

 

Mar 31,

 

Dec 31,

 

Mar 31,

 

 

 

2015

 

2014

 

2014

 

Industrial control equipment

32

%

32

%

29

%

Telecommunication equipment

27

 

29

 

27

 

Computers and related products

19

 

20

 

20

 

Medical devices

13

 

11

 

11

 

Testing and instrumentation products

9

 

8

 

13

 

 

 

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

Second Quarter 2015 Outlook

·         Revenue between $635 and $665 million.

·         Diluted earnings per share between $0.37 and $0.41 (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 the Company’s website at www.bench.com.

 

About Benchmark Electronics, Inc.

Benchmark provides integrated manufacturing, design and engineering services to original equipment manufacturers of industrial control equipment (including equipment for the aerospace and defense industries), telecommunication equipment, computers and related products for business enterprises, medical devices, and testing and instrumentation products. Benchmark’s global operations include facilities in seven countries, and its 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 do not follow 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. Management discloses non-GAAP information to provide investors with additional information to analyze the Company’s performance and underlying trends. Management uses non-GAAP measures of net income and earnings per share

 

 

that exclude certain items in order to better assess operating performance and help investors compare results with our previous guidance. Our non-GAAP information is not necessarily comparable to 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 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,” “goals” and similar terms, and the negatives thereof, often identify forward-looking statements, which are not limited to historical facts. Our forward-looking statements include, among other things, the statement “we believe we are well positioned to continue expanding operating margins throughout the year”, 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 these statements are based upon reasonable assumptions, they involve risks and uncertainties relating to our operations, markets and business environment generally. If one or more of these risks or uncertainties materialize, or 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 the Company assumes no obligation to update them. Readers are advised to consult further disclosures on related subjects, particularly in Item 1A, “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, 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,

 

 

 

 

2015

 

2014

 

2014

 

 

 

 

 

 

 

 

 

 

Income from operations (GAAP)

$

18,708

$

28,653

$

22,432

 

Restructuring charges and integration costs

 

4,869

 

955

 

2,109

 

Gain on sale of subsidiary

 

-

 

(1,547)

 

-

 

Thailand flood-related items, net of insurance

 

-

 

-

 

(1,571)

 

Non-GAAP income from operations

$

23,577

$

28,061

$

22,970

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

$

14,205

$

24,011

$

19,125

 

Restructuring charges and integration costs, net of tax

 

3,595

 

740

 

1,383

 

Gain on sale of subsidiary, net of tax

 

-

 

(1,547)

 

-

 

Thailand flood-related items, net of insurance and tax

 

-

 

-

 

(1,263)

 

Non-GAAP net income

$

17,800

$

23,204

$

19,245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share: (GAAP)

 

 

 

 

 

 

 

 

Basic

$

0.27

$

0.45

$

0.36

 

 

Diluted

$

0.27

$

0.45

$

0.35

 

 

 

 

 

 

 

 

 

 

Earnings per share: (Non-GAAP)

 

 

 

 

 

 

 

 

Basic

$

0.34

$

0.44

$

0.36

 

 

Diluted

$

0.34

$

0.43

$

0.35

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares used

 

 

 

 

 

 

 

 in calculating earnings per share:

 

 

 

 

 

 

 

 

Basic

 

52,463

 

53,020

 

53,650

 

 

Diluted

 

53,045

 

53,609

 

54,277

 

 

 

Benchmark Electronics, Inc. and Subsidiaries

 

 

 

 

 

 

 

 

Consolidated Statements of Income

 

(Amounts in Thousands, Except Per Share Data)

 

(UNAUDITED)

 

 

 

 

 

 

Three Months Ended

 

 

 

 

March 31,

 

 

 

2015

 

2014

 

Sales

$

620,925

$

639,344

 

Cost of sales

 

569,146

 

588,221

 

 

Gross profit

 

51,779

 

51,123

 

Selling, general and administrative expenses

 

28,202

 

28,153

 

Restructuring charges and integration costs

 

4,869

 

2,109

 

Thailand flood-related items, net of insurance

 

-

 

(1,571)

 

 

Income from operations

 

18,708

 

22,432

 

Interest expense

 

(435)

 

(476)

 

Interest income

 

432

 

515

 

Other income (expense), net

 

(1,057)

 

26

 

 

Income before income taxes

 

17,648

 

22,497

 

Income tax expense

 

3,443

 

3,372

 

 

Net income

$

14,205

$

19,125

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

Basic

$

0.27

$

0.36

 

 

Diluted

$

0.27

$

0.35

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

Basic

 

52,463

 

53,650

 

 

Diluted

 

53,045

 

54,277

 

 

 

Benchmark Electronics, Inc. and Subsidiaries

 

 

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets

(in thousands)

 

 

 

 

 

 

March 31,

 

December 31,

 

 

 

 

 

 

2015

 

2014

 

 

 

 

 

 

(unaudited)

 

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

$

383,596

$

427,376

 

 

Accounts receivable, net

 

490,686

 

520,389

 

 

Inventories

 

426,837

 

401,261

 

 

Other current assets

 

41,369

 

39,527

 

 

 

 

Total current assets

 

1,342,488

 

1,388,553

 

Long-term investments

 

1,012

 

1,008

 

Property, plant and equipment, net

 

187,049

 

190,180

 

Goodwill and other, net

 

98,858

 

99,148

 

 

 

 

Total assets

$

1,629,407

$

1,678,889

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Current installments of capital lease obligations

$

701

$

676

 

 

Accounts payable

 

248,563

 

289,786

 

 

Accrued liabilities

 

63,364

 

68,636

 

 

 

 

Total current liabilities

 

312,628

 

359,098

 

Capital lease obligations, less current installments

 

8,665

 

8,845

 

Other long-term liabilities

 

19,512

 

19,906

 

Shareholders’ equity

 

1,288,602

 

1,291,040

 

 

 

 

Total liabilities and shareholders’ equity

$

1,629,407

$

1,678,889