EX-99.1 2 a07-12287_1ex99d1.htm EX-99.1

Exhibit 99.1

Press Release
For More Information, Call:

ELLEN M. SYKORA

 

 

INVESTOR RELATIONS

 

April 24, 2007

(979) 849-6550

 

 

 

FOR IMMEDIATE RELEASE

BENCHMARK ELECTRONICS REPORTS RESULTS FOR THE
QUARTER ENDED MARCH 31, 2007

ANGLETON, TX, APRIL 24, 2007 — Benchmark Electronics, Inc. (NYSE: BHE), a leading contract manufacturing provider, announced sales of $752 million for the quarter ended March 31, 2007, compared to $651 million for the same quarter in the prior year. First quarter net income was $24.5 million, or $0.34 per diluted share. In the comparable period of 2006, net income was $26.5 million, or $0.41 per diluted share. Excluding restructuring charges, integration costs, amortization of intangibles and the impact of stock-based compensation costs, the Company would have reported net income of $27.9 million, or $0.39 per diluted share, in the first quarter of 2007. Excluding restructuring charges, the impact of stock-based compensation costs and a tax benefit resulting from the closure of our UK facility, the Company would have reported net income of $24.7 million, or $0.38 per diluted share, in the first quarter of 2006.

“Benchmark Electronics, Inc. continues to have solid performance,” said Cary T. Fu, the Company’s Chief Executive Officer. “We saw strong booking performance in the first quarter derived from both existing and new customers.  Challenges during the first half of 2007 are seen with the softer market conditions and the ongoing customer initiatives focused on reducing inventory levels.  However, we have seen excellent growth opportunities with our new bookings and new product initiatives with several customers and are optimistic that we will see steady improvement in business conditions as the year progresses.”

First Quarter 2007 Financial Highlights

·                  Operating margin for the first quarter was 3.6% on a GAAP basis and was 4.2%, excluding restructuring charges, integration costs, amortization of intangibles and the impact of stock-based compensation expense.

·                  Cash flows provided by operating activities for the first quarter were approximately $95 million.

·                  Cash and short-term investments balance at March 31, 2007 of $257 million.

·                  Total debt outstanding of $­­­­23 million.

·                  Accounts receivable balance at March 31, 2007 of $512 million; calculated days sales outstanding were 61 days.

·                  Inventory of $464 million at March 31, 2007; inventory turns were 6.0 times.




Second Quarter 2007 Guidance

Sales for the second quarter of 2007 are expected to be between $740 million and $775 million. Diluted earnings per share for the second quarter, excluding restructuring charges, integration costs, amortization of intangibles and the impact of stock-based compensation expense, are expected to be between $0.36 and $0.41.

Non-GAAP Financial Measures

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

Non-GAAP information 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. Such forward-looking statements may be deemed to include, among other things, statements, express or implied, concerning: future operating results or the ability to generate sales, income or cash flow; Benchmark’s business and growth strategies, including expected internal growth and performance goals; and the anticipated effects of any developments or events on financial results. 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.

All forward-looking statements included in this release are based upon information available to Benchmark as of the date of the release, and Benchmark assumes no obligation to update any such forward-looking statements. Should one or more of these risks or uncertainties materialize, or should underlying




assumptions prove incorrect, actual outcomes may vary materially from those indicated. Persons are advised to consult further disclosures on related subjects in Benchmark’s Form 10-K for the year ended December 31, 2006, in its other filings with the Securities and Exchange Commission and in its press releases.

Additional Information

Benchmark Electronics, Inc. is in the business of manufacturing electronics and provides its 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 nine 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
Three Months Ended March 31, 2007 and 2006
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2007

 

2006

 

 

 

 

 

 

 

Income from operations (GAAP)

 

$

27,448

 

$

26,227

 

Stock-based compensation

 

628

 

486

 

Restructuring charges and integration costs

 

3,345

 

2,769

 

Amortization of intangibles

 

447

 

 

Non-GAAP income from operations

 

$

31,868

 

$

29,482

 

 

 

 

 

 

 

Net income (GAAP)

 

$

24,476

 

$

26,522

 

Stock-based compensation, net of tax

 

442

 

372

 

Restructuring charges and integration costs, net of tax

 

2,617

 

2,553

 

Amortization of intangibles, net of tax

 

322

 

 

UK investment tax benefit

 

 

(4,760

)

Non-GAAP net income

 

$

27,857

 

$

24,687

 

 

 

 

 

 

 

Numerator for basic earnings per share - net income (GAAP)

 

$

24,476

 

$

26,522

 

Interest expense on convertible debt, net of tax

 

115

 

 

Numerator for diluted earnings per share (GAAP)

 

$

24,591

 

$

26,522

 

 

 

 

 

 

 

Earnings per share: (GAAP)

 

 

 

 

 

Basic

 

$

0.34

 

$

0.42

 

Diluted

 

$

0.34

 

$

0.41

 

 

 

 

 

 

 

Numerator for basic earnings per share - net income (Non-GAAP)

 

$

27,857

 

$

24,687

 

Interest expense on convertible debt, net of tax

 

115

 

 

Numerator for diluted earnings per share (Non-GAAP)

 

$

27,972

 

$

24,687

 

 

 

 

 

 

 

Earnings per share: (Non-GAAP)

 

 

 

 

 

Basic

 

$

0.39

 

$

0.39

 

Diluted

 

$

0.39

 

$

0.38

 

 

 

 

 

 

 

Weighted average shares used in calculating

 

 

 

 

 

earnings per share:

 

 

 

 

 

Basic

 

71,435

 

63,601

 

Diluted

 

72,465

 

64,825

 

 




Benchmark Electronics, Inc. and Subsidiaries

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

 

 

Three Months Ended
March 31,

 

 

 

2007

 

2006

 

 

 

 

 

 

 

Net sales

 

$

752,482

 

$

651,244

 

Cost of sales

 

697,994

 

605,878

 

 

 

 

 

 

 

Gross profit

 

54,488

 

45,366

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

23,248

 

16,370

 

Amortization of intangibles

 

447

 

 

Restructuring charges and integration costs

 

3,345

 

2,769

 

 

 

 

 

 

 

Income from operations

 

27,448

 

26,227

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

Interest expense

 

(811

)

(86

)

Other

 

1,715

 

1,689

 

Total other income, net

 

904

 

1,603

 

 

 

 

 

 

 

Income before income taxes

 

28,352

 

27,830

 

 

 

 

 

 

 

Income tax expense

 

3,876

 

1,308

 

 

 

 

 

 

 

Net income

 

$

24,476

 

$

26,522

 

 

 

 

 

 

 

Numerator for basic earnings per share - net income

 

$

24,476

 

26,522

 

Interest expense on convertible debt, net of tax

 

115

 

 

Numerator for diluted earnings per share

 

$

24,591

 

$

26,522

 

 

 

 

 

 

 

Denominator for basic earnings per share - weighted average number of common shares outstanding during the period

 

71,435

 

63,601

 

Incremental common shares attributable to exercise of outstanding equity instruments

 

1,030

 

1,224

 

Denominator for diluted earnings per share

 

72,465

 

64,825

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

Basic

 

$

0.34

 

$

0.42

 

Diluted

 

$

0.34

 

$

0.41

 

 

 

 

 

 

 

 




Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet
March 31, 2007
(Amounts in Thousands)
(UNAUDITED)

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

Cash and cash-equivalents

 

$

151,570

 

Short-term investments

 

105,660

 

Accounts receivable, net

 

512,464

 

Inventories, net

 

463,528

 

Other current assets

 

91,851

 

 

 

 

 

Total current assets

 

1,325,073

 

 

 

 

 

Property, plant and equipment, net

 

163,073

 

Other assets, net

 

28,292

 

Goodwill, net

 

297,778

 

 

 

 

 

Total assets

 

$

1,814,216

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

Current installments of long-term debt and capital lease obligations

 

$

5,816

 

Convertible debt

 

5,000

 

Accounts payable

 

416,873

 

Other current liabilities

 

111,913

 

 

 

 

 

Total current liabilities

 

539,602

 

 

 

 

 

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

 

12,581

 

 

 

 

 

Other long-term liabilities

 

14,167

 

 

 

 

 

Shareholders’ equity

 

1,247,866

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

1,814,216