8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 24, 2019

BENCHMARK ELECTRONICS, INC.

(Exact name of registrant as specified in its charter)

Texas (State or other jurisdiction of incorporation) 1-10560 (Commission File Number) 74-2211011 (I.R.S. Employer Identification No.)

56 South Rockford Drive, Tempe, Arizona 85281

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (623) 300-7000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.10 per share	BHE	New York Stock Exchange, Inc.

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On October 24, 2019, Benchmark Electronics, Inc. (the “Company”) issued a press release announcing its results of operations for the quarter ended September 30, 2019. A copy of the press release and accompanying investor presentation are attached hereto as Exhibits 99.1 and 99.2, respectively, and incorporated by reference herein. The information disclosed under this Item 2.02, including Exhibits 99.1 and 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press release, dated October 24, 2019
99.2	Investor presentation, dated October 24, 2019
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BENCHMARK ELECTRONICS, INC.

Date: October 28, 2019	By: /s/ Stephen J. Beaver
	Stephen J. Beaver, Esq.
	Vice President General Counsel

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EX-99.1

 

Exhibit 99.1

FOR IMMEDIATE RELEASE

BENCHMARK ELECTRONICS REPORTS THIRD QUARTER 2019 RESULTS

·Quarterly revenue of $555 million

·Medical revenue growth of 33% year-over-year

·A&D revenue growth of 10% year-over-year

·Quarterly gross margin expansion of 60 bps to 9.5%

·Quarterly EPS of $0.19 ($0.36 non-GAAP)

TEMPE, AZ, October 24, 2019 – Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the third quarter ended September 30, 2019.

	Three Months Ended
	Sep 30,	Jun 30,	Sep 30,
In millions, except EPS	2019	2019	2018
Sales	$555	$602	$641
Net income	$7	$9	$8
Net income – non-GAAP(1)	$14	$14	$15
Diluted EPS	$0.19	$0.24	$0.17
Diluted EPS – non-GAAP(1)	$0.36	$0.36	$0.33
Operating margin	1.8%	2.0%	1.7%
Operating margin – non-GAAP(1)	3.2%	3.1%	2.9%

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

Jeff Benck, Benchmark's President and CEO stated, “We are pleased with the solid execution of our team in the third quarter.  Revenues were up year-over-year in our Medical and Aerospace & Defense (A&D) markets with non-GAAP gross margins improving 60 bps sequentially to 9.5% and operating margins up 10 bps sequentially to 3.2% respectively.”

“We are laying the groundwork for an even stronger Benchmark with the progress our engaged team has made on our strategic priorities which are focused on:  improving our go-to-market approach, driving continued operational efficiencies, centralizing our G&A organization, and accelerating our solutions in the market.”

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Cash Conversion Cycle

	Sep 30,	Jun 30,	Sep 30,
	2019	2019	2018
Accounts receivable days	56	54	64
Contract asset days	26	23	22
Inventory days	57	52	49
Accounts payable days	(53)	(61)	(57)
Customer deposits	(7)	(3)	(4)
Cash Conversion Cycle days	79	65	74

Third Quarter 2019 Industry Sector Update

Revenue and percentage of sales by industry sector (in millions) was as follows.

			Sep 30,				Jun 30,				Sep 30,
	Higher-Value Markets		2019				2019			2018
Industrials		$	115	21	%	$	115	19	%	$	128	20	%
A&D			115	21			107	18			105	16
Medical			128	23			114	19			96	15
Semi-Cap			68	12			63	10			77	12
		$	426	77	%	$	399	66	%	$	406	63	%
			Sep 30,				Jun 30,				Sep 30,
	Traditional Markets		2019				2019			2018
Computing		$	59	11	%	$	133	22	%	$	146	23	%
Telecommunications			70	12			70	12			89	14
		$	129	23	%	$	203	34	%	$	235	37	%
	Total	$	555	100	%	$	602	100	%	$	641	100	%

Overall, higher‐value markets were up 5% year‐over‐year due to growth in Medical and A&D, despite softer demand in Semi-Cap.  Traditional market revenues were down 45% year-over-year primarily from legacy Computing revenues.

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Fourth Quarter 2019 Outlook

·Revenue between $520 - $570 million

·Diluted GAAP earnings per share between $0.21 - $0.29

·Diluted non-GAAP earnings per share between $0.34 - $0.42 (excluding restructuring charges and other costs and amortization of intangibles)

Restructuring charges are expected to range between $3.5 million to $4.5 million in the fourth quarter.

Third Quarter 2019 Results Conference Call Details

A conference call hosted by Benchmark management will be held today at 5:00 p.m. Eastern Time to discuss the Company’s financial results and 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 comprehensive solutions across the entire product life cycle; 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: aerospace and defense (A&D), medical, complex industrials, semiconductor capital equipment (Semi-Cap), next-generation telecommunications and advanced computing.  Benchmark’s global operations network includes facilities in seven countries and 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

623-300-7052 or lisa.weeks@bench.com

Forward-Looking Statements

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  The words “expect,” “estimate,” “anticipate,” “predict” and similar expressions, and the negatives thereof, often identify forward-looking statements, which are not limited to historical facts.  Forward-looking statements include, among other things: guidance for 2019 results; projected annual revenues resulting from new program bookings; statements, express or implied, concerning future operating results or margins, the ability to generate sales and income or cash flow; and Benchmark’s business and growth strategies and expected growth and performance.  Although Benchmark believes these statements are based upon reasonable assumptions, they involve risks and uncertainties relating to operations, markets and the business environment generally.  If one or more of these risks or uncertainties materializes, or underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.  Readers are advised to consult further disclosures on these risks and uncertainties, particularly in Item 1A, “Risk Factors”, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018

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and in its subsequent filings with the Securities and Exchange Commission.  All forward-looking statements included in this document are based upon information available to the Company as of the date of this document, and it assumes no obligation to update them.

Non-GAAP Financial Measures

This document includes certain financial measures that exclude items and therefore are not in accordance with U.S. generally accepted accounting principles (“GAAP”).  A detailed reconciliation between GAAP results and results excluding special items (“non-GAAP”) is included in the following tables attached to this document.  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 that exclude certain items in order to provide additional insight into operating results and underlying trends and help investors compare results with our previous guidance.  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.

###

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Benchmark Electronics, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Results
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)
			Three Months Ended						Nine Months Ended
			Sep 30,		Jun 30,		Sep 30,		Sep 30,
			2019		2019		2018		2019		2018
Income from operations (GAAP)		$	9,798	$	11,941	$	10,957	$	37,826	$	43,273
Restructuring charges and other costs			5,843		3,414		1,845		10,833		5,838
Settlement			-		773		-		773		-
Customer insolvency (recovery)			-		(16)		3,295		(2,758)		2,624
Amortization of intangible assets			2,367		2,361		2,368		7,095		7,101
Non-GAAP income from operations		$	18,008	$	18,473	$	18,465	$	53,769	$	58,836
Gross Profit (GAAP)		$	52,883	$	52,998	$	52,777	$	159,681	$	165,394
Settlement			-		773		-		773		-
Customer insolvency (recovery)			-		(16)		1,581		(1,040)		910
Non-GAAP gross profit		$	52,883	$	53,755	$	54,358	$	159,414	$	166,304
Net income (loss) (GAAP)		$	7,136	$	9,447	$	7,799	$	30,356	$	(4,899)
Restructuring charges and other costs			6,168		3,414		1,845		11,158		5,838
Customer insolvency (recovery)			-		(16)		3,295		(2,758)		2,624
Amortization of intangible assets			2,367		2,361		2,368		7,095		7,101
Settlements			(83)		(330)		-		(2,248)		-
Refinancing of credit facilities			-		-		1,982		-		1,982
Income tax adjustments(1)			(1,879)		(1,039)		(1,914)		(2,711)		(3,542)
Tax Cuts and Jobs Act(2)			-		-		-		-		40,537
Non-GAAP net income		$	13,709	$	13,837	$	15,375	$	40,892	$	49,641
Diluted earnings (loss) per share:
	Diluted (GAAP)	$	0.19	$	0.24	$	0.17	$	0.77	$	(0.10)
	Diluted (Non-GAAP)	$	0.36	$	0.36	$	0.33	$	1.04	$	1.04
Weighted-average number of shares used in
calculating diluted earnings (loss) per share:
	Diluted (GAAP)		37,645		38,583		46,455		39,184		47,415
	Diluted (Non-GAAP)		37,645		38,583		46,455		39,184		47,754

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

⁽²⁾This amount represents the impact of repatriating foreign earnings from our foreign jurisdictions to the U.S., offset by available U.S. foreign tax credits, and a non-recurring tax true-up benefit as a result of finalizing our federal and state income tax accounting for the U.S. transitions toll tax from the 2017 Tax Cuts and Jobs Act.

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Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)
			Three Months Ended				Nine Months Ended
			September 30,				September 30,
			2019		2018		2019		2018
Sales		$	555,229	$	640,688	$	1,759,651	$	1,909,415
Cost of sales			502,346		587,911		1,599,970		1,744,021
	Gross profit		52,883		52,777		159,681		165,394
Selling, general and administrative expenses			34,875		37,607		103,927		109,182
Amortization of intangible assets			2,367		2,368		7,095		7,101
Restructuring charges and other costs			5,843		1,845		10,833		5,838
	Income from operations		9,798		10,957		37,826		43,273
Interest expense			(1,687)		(3,822)		(5,014)		(8,543)
Interest income			734		1,619		3,084		5,197
Other income (expense), net			(136)		1,139		2,276		827
	Income before income taxes		8,709		9,893		38,172		40,754
Income tax expense			1,573		2,094		7,816		45,653
	Net income (loss)	$	7,136	$	7,799	$	30,356	$	(4,899)
Earnings (loss) per share:
	Basic	$	0.19	$	0.17	$	0.78	$	(0.10)
	Diluted	$	0.19	$	0.17	$	0.77	$	(0.10)
Weighted-average number of shares used in calculating
earnings (loss) per share:
	Basic		37,419		46,301		38,813		47,415
	Diluted		37,645		46,455		39,184		47,415

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Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(UNAUDITED)
(in thousands)
					September 30,		December 31,
					2019		2018
Assets
	Current assets:
		Cash and cash equivalents		$	348,042	$	458,102
		Accounts receivable, net			348,099		468,161
		Contract assets			161,068		140,082
		Inventories			315,835		309,975
		Other current assets			25,071		27,230
			Total current assets		1,198,115		1,403,550
	Property, plant and equipment, net				199,256		210,954
	Operating lease right-of-use assets				79,854		-
	Goodwill and other, net				281,521		285,279
			Total assets	$	1,758,746	$	1,899,783
Liabilities and Shareholders’ Equity
	Current liabilities:
		Current installments of long-term debt and finance lease obligations		$	8,784	$	6,793
		Accounts payable			295,693		422,053
		Accrued liabilities			136,760		108,313
			Total current liabilities		441,237		537,159
	Long-term debt and finance lease obligations, less current installments				141,017		147,277
	Operating lease liabilities				70,167		-
	Other long-term liabilities				77,553		83,122
	Shareholders’ equity				1,028,772		1,132,225
			Total liabilities and shareholders’ equity	$	1,758,746	$	1,899,783

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Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(in thousands)
(UNAUDITED)
				Nine Months Ended
				September 30,
				2019		2018
Cash flows from operating activities:
	Net income (loss)		$	30,356	$	(4,899)
	Depreciation and amortization			36,389		39,643
	Stock-based compensation expense			8,461		8,229
	Accounts receivable, net			121,171		(20,019)
	Contract assets			(20,986)		(9,402)
	Inventories			(6,557)		(54,342)
	Accounts payable			(122,156)		12,620
	Other changes in working capital and other, net			10,636		10,877
		Net cash provided by (used in) operations		57,314		(17,293)
Cash flows from investing activities:
	Additions to property, plant and equipment and software			(25,942)		(52,933)
	Other investing activities, net			252		(2,102)
		Net cash used in investing activities		(25,690)		(55,035)
Cash flows from financing activities:
	Share repurchases			(118,350)		(122,053)
	Net debt activity			(4,614)		(57,758)
	Other financing activities, net			(17,699)		(13,897)
		Net cash used in financing activities		(140,663)		(193,708)
Effect of exchange rate changes				(1,021)		(797)
Net decrease in cash and cash equivalents				(110,060)		(266,833)
	Cash and cash equivalents at beginning of year			458,102		742,546
	Cash and cash equivalents at end of period		$	348,042	$	475,713

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EX-99.2

Exhibit 99.2

© 2018 Benchmark Electronics, Inc. Benchmark Electronics, Inc. Q3 2019 Earnings October 24, 2019

| 2 © 2018 Benchmark Electronics, Inc. Forward - Looking Statements This document contains forward - looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934. The words “expect,” “estimate,” “anticipate,” “predict” and similar expressions, and the n egatives thereof, often identify forward - looking statements, which are not limited to historical facts. Forward - looking statements inclu de, among other things: guidance for 2019 results; projected annual revenues resulting from new program bookings; statements , express or implied, concerning future operating results or margins, the ability to generate sales and income or cash flow; and Benchmark ’s business and growth strategies and expected growth and performance. Although Benchmark believes these statements are based upon reasonable assumptions, they involve risks and uncertainties relating to operations, markets and the business environmen t generally. If one or more of these risks or uncertainties materializes, or underlying assumptions prove incorrect , actual outcomes may vary materially from those indicated. Readers are advised to consult further disclosures on these risks and uncertainties, part icularly in Item 1A, “Risk Factors”, of the Company’s Annual Report on Form 10 - K for the year ended December 31, 2018 and in its subsequent filings with the Securities and Exchange Commission. All forward - looking statements included in this document are based upon information available to the Company as of the date of this document, and it assumes no obligation to update them. Non - GAAP Financial Information This document includes certain financial measures that exclude items and therefore are not in accordance with U.S. generally accepted accounting principles (“GAAP”). A detailed reconciliation between GAAP results and results excluding special items (“n on - GAAP”) is included in the Appendix of this document. 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 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.

| 3 © 2018 Benchmark Electronics, Inc. CEO Perspective Jeff Benck President & Chief Executive Officer

© 2018 Benchmark Electronics, Inc. | 4 Third Quarter 2019 Summary Revenue at high end of guidance and earnings in line ► Year - over - year and sequential revenue growth in A&D and Medical ► Semi - cap down 11% year - over - year but sequential growth from June quarter Improving margins ► Non - GAAP gross margins increased 60 bps sequentially to 9.5 % ► Non - GAAP operating margins increased 10 bps sequentially to 3.2% Working capital and cash flow ► Cash conversion cycle of 79 days in Q3 - 19 ► Used $11 million in operating cash flows and $22 million in free cash flows in Q3

© 2018 Benchmark Electronics, Inc. | 5 Notable New Business Wins by Market Sector Industrials • Advanced IoT transportation sensors (process design, & mfg.) • Industrial infrastructure controls (mfg.) Medical • Platform of minimally invasive surgical devices (mfg .) • Defibrillator s (mfg .) Semi - Cap • Front - end semi - cap (precision technologies) • System controllers (mfg.) A&D • Advanced communication systems (Lark RF, solutions, mfg.) C&T • Digital display infrastructure equipment (mfg .) • Commercial printing modules (mfg .) Continued progress in targeting the right mix for funnel and bookings growth

| 6 © 2018 Benchmark Electronics, Inc. CFO Updates & Q3 - 19 Financial Highlights Roop Lakkaraju Chief Financial Officer

© 2018 Benchmark Electronics, Inc. | 7 Third Quarter 2019 Financial Summary For the Three Months Ended (In millions, except EPS) Sept. 30 , 2019 June 30 , 2019 Q/Q Sept. 30 , 2018 Y/Y Net Sales $555 $602 (8%) $641 (13%) GAAP Operating Margin 1.8% 2.0% (20) bps 1.7% 10 bps GAAP Diluted EPS $0.19 $0.24 (21%) $0.17 12% Non - GAAP Operating Margin 3.2% 3.1% 10 bps 2.9% 30 bps Non - GAAP Diluted EPS $0.36 $0.36 -- $0.33 9% GAAP ROIC 5.2% 5.3% (10 bps) 7.0% ( 180 bps) Non - GAAP ROIC 8.2% 8.2% -- 9.8% ( 160 bps) See APPENDIX 1 for a reconciliation of GAAP to non - GAAP Financial Results Our Guidance for the Third Quarter: ► Revenue (in millions) $525 – $ 555 ► Diluted EPS – non - GAAP $0.33 – $0.39

© 2018 Benchmark Electronics, Inc. | 8 Higher - Value Markets Sept. 30 , 2019 June 30 , 2019 Q/Q Industrials 21% $115 19% $115 -- Aerospace & Defense 21% $115 18% $107 8% Medical 23% $128 19% $114 12% Semi - Cap 12% $68 10% $63 9% Total Revenue $426 $399 7% Revenue by Market Sector (1) In millions Traditional Markets Sept. 30 , 2019 June 30 , 2019 Q/Q Computing 11% $59 22% $133 (55%) Telecommunication s 12% $70 12% $70 (2%) Total Revenue $129 $203 (37%) Sept. 30 , 2018 Y/Y 23% $146 (59%) 14% $89 (22%) $235 (45%) For the Three Months Ended Sept. 30 , 2018 Y/Y 20% $128 (10%) 16% $105 10% 15% $96 33% 12% $77 (11%) $406 5% (1) (1) (1) (1) (1) (1)

© 2018 Benchmark Electronics, Inc. | 9 GAAP Key Business Trends Return on Invested Capital (LTM) Operating Margin ($M) SG&A ($M) Revenue & Gross Margin ($ M ) NOPAT Inv. Capital 11.0 15.3 16.1 11.9 9.8 1.7% 2.3% 2.7% 2.0% 1.8% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 0.0 10.0 20.0 30.0 40.0 50.0 60.0 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 37.6 34.0 33.8 35.3 34.9 5.9% 5.2% 5.6% 5.9% 6.3% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 641 657 603 602 555 8.2% 8.4% 8.9% 8.8% 9.5% 1.0% 3.0% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% 0 200 400 600 800 1,000 1,200 1,400 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 GAAP ROIC = ( GAAP TTM income from operations – GAAP Tax Impact ) · (Average Invested Capital for last 5 quarters) 848 829 835 840 835 59 51 47 44 43 7.0% 6.2% 5.7% 5.3% 5.2% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19

design develop deliver advanced technology 10 © 2018 Benchmark Electronics, Inc. | 10 Non - GAAP Key Business Trends Operating Margin ($M) SG&A ($M) Revenue & Gross Margin ($ M ) NOPAT Inv. Capital Non - GAAP ROIC = (Non - GAAP TTM income from operations – Non - GAAP Tax Impact) · [Average Invested Capital for last 5 quarters] 35.9 34.0 35.5 35.3 34.9 5.6% 5.2% 5.9% 5.9% 6.3% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 641 657 603 602 555 8.5% 8.4% 8.8% 8.9% 9.5% 9.3% 9.5% 9.4% 10.1% 9.6% -1.0% 1.0% 3.0% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% 0 200 400 600 800 1,000 1,200 1,400 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 As Reported W/O Legacy Computing Contract 18.5 21.1 17.3 18.5 18.0 2.9% 3.2% 2.9% 3.1% 3.2% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 0.0 10.0 20.0 30.0 40.0 50.0 60.0 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 848 829 835 840 835 83 76 70 69 68 9.8% 9.2% 8.3% 8.2% 8.2% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 0 200 400 600 800 1000 1200 1400 1600 1800 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Return on Invested Capital (LTM)

© 2018 Benchmark Electronics, Inc. | 11 Cash Flow / Working Capital Highlights (1) Free cash flow (FCF) defined as net cash provided by operations (GAAP) less capex (In millions) Sept. 30 , 2019 June 30 , 2019 Sept. 30 , 2018 Cash Flows from (used in) Operations ($11) $52 ($1) FCF ($22) $47 ($16) Cash $348 $397 $476 International $180 $180 $170 US $168 $217 $306 Inventory $316 $316 $321 Accounts Receivable $348 $363 $456 Contract Assets $161 $156 $156 Accounts Payable $296 $372 $374 For the Three Months Ended 1

© 2018 Benchmark Electronics, Inc. | 12 Working Capital Update Q3 - 17 Q4 - 17 Q1 - 18 Q2 - 18 Q3 - 18 Q4 - 18 Q1 - 19 Q2 - 19 Q3 - 19 Accounts Receivable Days 61 59 59 61 64 64 61 54 56 Contract Asset Days 24 20 22 20 22 19 23 23 26 Inventory Days 46 40 50 47 49 46 52 52 57 Deposits 4 3 3 2 4 4 3 3 7 Accounts Payable Days 55 54 60 57 57 63 61 61 53 Cash Conversion Cycle 72 62 68 69 74 62 72 65 79 72 62 68 69 74 62 72 65 79 0 20 40 60 80 100 120 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Excluding the legacy computing contract, the updated CCC target is 75 to 82 days

© 2018 Benchmark Electronics, Inc. | 13 Capital Allocation Update Dividends ► Recurring quarterly dividend of $0.15 per share declared ► Dividend of $5.7 million paid in July 2019 Share repurchases ► Share repurchases of $118 million completed as of September 30, 2019 ► Remaining authorization to repurchase shares of $83 million at September 30, 2019

© 2018 Benchmark Electronics, Inc. | 14 Fourth Quarter 2019 Guidance * The above guidance excludes the impact of amortization of intangible assets and estimated restructuring charges and other costs Guidance Net Sales (in millions) $ 520 – $570 Diluted EPS – non - GAAP* $0.34 – $ 0.42

© 2018 Benchmark Electronics, Inc. | 15 Sequential Modeling Information ( Excluding Legacy Computing Contract) Higher - Value Markets Q4 - 19 Outlook (%) Industrials Flat Aerospace & Defense Flat Medical Down Mid Singles Semi - Cap Up >10% Traditional Markets Q4 - 19 Outlook (%) Computing Down > 20% Telecommunication s Flat Q4 - 19 Guidance Operating Margin - non - GAAP * 3.2% – 3.6% Interest Expense (in millions) $1.8 Effective Tax Rate 21% Weighted Average Shares (m) 37.2 * The above guidance excludes the impact of amortization of intangible assets and estimated restructuring charges and other costs

© 2018 Benchmark Electronics, Inc. | 16 Strategic Initiative Updates Jeff Benck - CEO

© 2018 Benchmark Electronics, Inc. | 17 Key Strategic Initiatives Optimize Go - to - Market 1 2 3 4 Drive Operational Efficiencies Centralize G&A Accelerate Eng. Services & Solutions • Organization realignment complete • Sectors, Marketing, New Business teams and Account Managers under Chief Revenue Officer (CRO) • EXPECTATION: Accelerated revenue growth • Transition to functional alignment underway: ‒ HR, IT, Finance, and Legal ‒ Speed deployment of common process • EXPECTATION: Increased efficiency and scalability • Network analysis and customer demand ongoing • San Jose, CA and Guaymas, MX closures underway • Productivity improvements in process • EXPECTATION; Effective utilization of global assets • Lark RF coming online for production in Q4 • Continue to invest in differentiated technology aligned with customer needs • Integrated sales of all Benchmark services • EXPECTATION: Differentiated capabilities for higher value

| 18 © 2018 Benchmark Electronics, Inc. Appendix

design develop deliver advanced technology 19 © 2018 Benchmark Electronics, Inc. | 19 APPENDIX 1 - Reconciliation of GAAP to non - GAAP Financial Results (Amounts in Thousands, Except Per Share Data) – (UNAUDITED) (1) This amount represents the tax impact of the non-GAAP adjustments using the applicable effective tax rates. (2) This amount represents the impact of repatriating foreign earnings from our foreign jurisdictions to the U.S., offset by available U.S. foreign tax credits, and a non-recurring tax true-up benefit as a result of finalizing our federal and state income tax accounting for the U.S. transitions toll tax from the 2017 Tax Cuts and Jobs Act. Three Months Ended Nine Months Ended Sep 30, Jun 30, Sep 30, Sep 30, 2019 2019 2018 2019 2018 Income from operations (GAAP) $ 9,798 $ 11,941 $ 10,957 $ 37,826 $ 43,273 Restructuring charges and other costs 5,843 3,414 1,845 10,833 5,838 Settlement - 773 - 773 - Customer insolvency (recovery) - (16) 3,295 (2,758) 2,624 Amortization of intangible assets 2,367 2,361 2,368 7,095 7,101 Non - GAAP income from operations $ 18,008 $ 18,473 $ 18,465 $ 53,769 $ 58,836 Gross Profit (GAAP) $ 52,883 $ 52,998 $ 52,777 $ 159,681 $ 165,394 Settlement - 773 - 773 - Customer insolvency (recovery) - (16) 1,581 (1,040) 910 Non - GAAP gross profit $ 52,883 $ 53,755 $ 54,358 $ 159,414 $ 166,304 Net income (loss) (GAAP) $ 7,136 $ 9,447 $ 7,799 $ 30,356 $ (4,899) Restructuring charges and other costs 6,168 3,414 1,845 11,158 5,838 Customer insolvency (recovery) - (16) 3,295 (2,758) 2,624 Amortization of intangible assets 2,367 2,361 2,368 7,095 7,101 Settlements (83) (330) - (2,248) - Refinancing of credit facilities - - 1,982 - 1,982 Income tax adjustments (1) (1,879) (1,039) (1,914) (2,711) (3,542) Tax Cuts and Jobs Act (2) - - - - 40,537 Non - GAAP net income $ 13,709 $ 13,837 $ 15,375 $ 40,892 $ 49,641 Diluted earnings (loss) per share: Diluted (GAAP) $ 0.19 $ 0.24 $ 0.17 $ 0.77 $ (0.10) Diluted (Non - GAAP) $ 0.36 $ 0.36 $ 0.33 $ 1.04 $ 1.04 Weighted - average number of shares used in calculating diluted earnings (loss) per share: Diluted (GAAP) 37,645 38,583 46,455 39,184 47,415 Diluted (Non - GAAP) 37,645 38,583 46,455 39,184 47,754

design develop deliver advanced technology 20 © 2018 Benchmark Electronics, Inc. | 20 APPENDIX 2 - Reconciliation of GAAP to Non - GAAP Financial Measures (Amounts in Thousands) – (UNAUDITED) Three Months Ended Sep 30, 2019 Jun 30, 2019 Sep 30, 2018 GAAP SG&A Expenses $ 34,875 $ 35,282 $ 37,607 Customer Insolvency - - 1,714 Non - GAAP SG&A Expenses $ 34,875 $ 35,282 $ 35,893

design develop deliver advanced technology 21 © 2018 Benchmark Electronics, Inc. | 21 APPENDIX 3 - Reconciliation of Free Cash Flow (Amounts in Thousands) – (UNAUDITED) Three Months Ended Sep 30, 2019 Jun 30, 2019 Sep 30, 2018 Net Cash Provided by (Used in) Operations $ (11,458) $ 52,358 $ (1,111) Additions to property, plant and equipment and software (10,447) (5,421) (14,570) Free Cash Flow (Free Cash Flow Used) $ (21,905) $ 46,937 $ (15,681)

XML

Document and Entity Information	Oct. 24, 2019
Cover [Abstract]
Entity Central Index Key	0000863436
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 24, 2019
Entity Registrant Name	BENCHMARK ELECTRONICS, INC.
Entity File Number	1-10560
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	74-2211011
Entity Address, Address Line One	56 South Rockford Drive
Entity Address, City or Town	Tempe
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85281
City Area Code	623
Local Phone Number	300-7000
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.10 per share
Trading Symbol	BHE
Security Exchange Name	NYSE
Entity Emerging Growth Company	false