ANGLETON, Texas, July 24, 2014 /PRNewswire/ -- Benchmark
Electronics, Inc. (NYSE: BHE), a leading integrated contract
manufacturing provider, today announced financial results for its
second quarter.
|
|
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Three Months
Ended
|
|
|
|
|
June
30,
|
|
|
March 31,
|
|
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June 30,
|
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
Net sales (in
millions)
|
|
$717
|
|
|
$639
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|
$608
|
|
Net income (in
millions)
|
|
$22
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|
|
$19
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|
$8
|
|
Net income – non-GAAP
(in millions)
|
|
$23
|
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$19
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$17
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|
Diluted
EPS
|
|
$0.41
|
|
|
$0.35
|
|
|
$0.16
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|
Diluted EPS –
non-GAAP
|
|
$0.43
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|
|
$0.35
|
|
|
$0.31
|
|
Operating margin
(%)
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|
3.8
|
%
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|
3.5
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%
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|
2.1
|
%
|
Operating margin –
non-GAAP (%)
|
|
4.1
|
%
|
|
3.6
|
%
|
|
3.5
|
%
|
"We executed very well during the quarter. Our continued focus
on operational excellence enabled results for the second quarter to
exceed our expectations as we convert our robust pipeline of new
programs," said Gayla J. Delly,
President and CEO. "The solid quarter demonstrates the level of
performance we can achieve at current demand levels and provides
visibility into our future potential as we continue to accelerate
our pace and efficiency in new program introductions."
Second Quarter 2014 Highlights
- Revenue of $717 million increased
12% from Q1 2014 and 18% from Q2 2013.
- New program bookings were $120 million
to $150 million.
- Restructuring and integration and acquisition-related costs
totaled $1.9 million.
- Cash flows provided by operating activities were approximately
$25 million.
- Cash and cash equivalents balance was $402 million at June 30,
2014.
- Accounts receivable was $499
million at June 30, 2014;
calculated days sales outstanding were 63 days compared to 65 days
at March 31, 2014 and 69 days at
June 30, 2013.
- Inventory was $421 million at
June 30, 2014; inventory turns were
6.3 times compared to 5.3 at March 31,
2014 and 6.4 at June 30,
2013.
- Repurchases of common shares totaled $7
million or 314,000 shares.
- Non-GAAP operating margin was 4.1%.
Second Quarter Industry Sector Update
The following
table sets forth revenue by industry sector for the referenced
quarters.
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
2014
|
|
2014
|
|
2013
|
|
Computers and related
products for business
|
|
|
|
|
|
|
enterprises
|
21
|
%
|
20
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%
|
29
|
%
|
Industrial control
equipment
|
29
|
|
29
|
|
29
|
|
Telecommunication
equipment
|
29
|
|
27
|
|
23
|
|
Medical
devices
|
11
|
|
11
|
|
12
|
|
Testing and
instrumentation products
|
10
|
|
13
|
|
7
|
|
|
100
|
%
|
100
|
%
|
100
|
%
|
Third Quarter 2014 Outlook
- Revenue between $670 and $700
million.
- Diluted earnings per share between $0.38
and $0.42 (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, and its common
shares trade on the New York Stock Exchange under the symbol
BHE.
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. 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
uses a non-GAAP measure of net income and earnings per share that
excludes certain items to better assess operating performance and
to help investors compare our results with our previous guidance.
This 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 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 thereof, identify forward-looking
statements. Our forward-looking statements may be deemed to
include, among other things, the statement "provides visibility
into our future potential as we continue to accelerate our pace and
efficiency in new program introductions," our sales and diluted
earnings per share (excluding special items) guidance for the third
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 such
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
|
|
|
Six Months
Ended
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations (GAAP)
|
$
|
27,144
|
$
|
22,432
|
$
|
12,783
|
|
$
|
49,576
|
$
|
26,776
|
Restructuring charges
and integration
|
|
|
|
|
|
|
|
|
|
|
|
and
acquisition-related costs
|
|
1,907
|
|
2,109
|
|
5,667
|
|
|
4,016
|
|
6,109
|
Asset impairment
charge and other
|
|
-
|
|
-
|
|
2,606
|
|
|
-
|
|
2,606
|
Thailand flood
related items, net of insurance
|
|
-
|
|
(1,571)
|
|
-
|
|
|
(1,571)
|
|
-
|
Non-GAAP income from
operations
|
$
|
29,051
|
$
|
22,970
|
$
|
21,056
|
|
$
|
52,021
|
$
|
35,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
$
|
22,150
|
$
|
19,125
|
$
|
8,457
|
|
$
|
41,275
|
$
|
19,944
|
Restructuring charges
and integration
|
|
|
|
|
|
|
|
|
|
|
|
and
acquisition-related costs, net of tax
|
|
1,243
|
|
1,383
|
|
5,541
|
|
|
2,626
|
|
5,945
|
Asset impairment
charge and other,
|
|
|
|
|
|
|
|
|
|
|
|
net of
tax
|
|
-
|
|
-
|
|
2,849
|
|
|
-
|
|
2,849
|
Thailand flood
related items, net of insurance
|
|
|
|
|
|
|
|
|
|
|
|
and
tax
|
|
-
|
|
(1,263)
|
|
-
|
|
|
(1,263)
|
|
-
|
Non-GAAP net
income
|
$
|
23,393
|
$
|
19,245
|
$
|
16,847
|
|
$
|
42,638
|
$
|
28,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Earnings per share:
(GAAP)
|
|
|
|
|
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|
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|
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|
Basic
|
$
|
0.41
|
$
|
0.36
|
$
|
0.16
|
|
$
|
0.77
|
$
|
0.37
|
|
Diluted
|
$
|
0.41
|
$
|
0.35
|
$
|
0.16
|
|
$
|
0.76
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.43
|
$
|
0.36
|
$
|
0.31
|
|
$
|
0.79
|
$
|
0.53
|
|
Diluted
|
$
|
0.43
|
$
|
0.35
|
$
|
0.31
|
|
$
|
0.78
|
$
|
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares used in calculating earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
53,826
|
|
53,650
|
|
54,207
|
|
|
53,738
|
|
54,500
|
|
Diluted
|
|
54,405
|
|
54,277
|
|
54,500
|
|
|
54,394
|
|
54,897
|
Benchmark
Electronics, Inc. and Subsidiaries
|
|
Consolidated
Statements of Income
|
(Amounts in
Thousands, Except Per Share Data)
|
(UNAUDITED)
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
Sales
|
$
|
716,868
|
$
|
607,522
|
|
$
|
1,356,212
|
$
|
1,149,966
|
Cost of
sales
|
|
659,117
|
|
563,155
|
|
|
1,247,338
|
|
1,068,765
|
|
Gross
profit
|
|
57,751
|
|
44,367
|
|
|
108,874
|
|
81,201
|
Selling, general and
administrative expenses
|
|
28,700
|
|
23,311
|
|
|
56,853
|
|
45,710
|
Restructuring charges
and integration
|
|
|
|
|
|
|
|
|
|
and
acquisition-related costs
|
|
1,907
|
|
5,667
|
|
|
4,016
|
|
6,109
|
Asset impairment
charge and other
|
|
-
|
|
2,606
|
|
|
-
|
|
2,606
|
Thailand flood
related items, net of insurance
|
|
-
|
|
-
|
|
|
(1,571)
|
|
-
|
|
Income from
operations
|
|
27,144
|
|
12,783
|
|
|
49,576
|
|
26,776
|
Interest
expense
|
|
(473)
|
|
(463)
|
|
|
(949)
|
|
(922)
|
Interest
income
|
|
668
|
|
291
|
|
|
1,183
|
|
705
|
Other income
(expense), net
|
|
99
|
|
(501)
|
|
|
125
|
|
(185)
|
|
Income before income
taxes
|
|
27,438
|
|
12,110
|
|
|
49,935
|
|
26,374
|
Income tax
expense
|
|
5,288
|
|
3,653
|
|
|
8,660
|
|
6,430
|
|
Net income
|
$
|
22,150
|
$
|
8,457
|
|
$
|
41,275
|
$
|
19,944
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.41
|
$
|
0.16
|
|
$
|
0.77
|
$
|
0.37
|
|
Diluted
|
$
|
0.41
|
$
|
0.16
|
|
$
|
0.76
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares used in calculating earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
53,826
|
|
54,207
|
|
|
53,738
|
|
54,500
|
|
Diluted
|
|
54,405
|
|
54,500
|
|
|
54,394
|
|
54,897
|
Benchmark
Electronics, Inc. and Subsidiaries
|
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
401,869
|
$
|
345,555
|
|
|
Accounts receivable,
net
|
|
499,479
|
|
559,763
|
|
|
Inventories,
net
|
|
421,216
|
|
396,699
|
|
|
Other current
assets
|
|
42,667
|
|
40,816
|
|
|
|
|
Total current
assets
|
|
1,365,231
|
|
1,342,833
|
|
Long-term
investments
|
|
9,710
|
|
9,921
|
|
Property, plant and
equipment, net
|
|
190,686
|
|
185,319
|
|
Goodwill and other,
net
|
|
115,850
|
|
119,298
|
|
|
|
|
Total
assets
|
$
|
1,681,477
|
$
|
1,657,371
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current installments
of capital lease obligations
|
$
|
628
|
$
|
582
|
|
|
Accounts
payable
|
|
298,762
|
|
320,953
|
|
|
Accrued
liabilities
|
|
78,284
|
|
76,842
|
|
|
|
|
Total current
liabilities
|
|
377,674
|
|
398,377
|
|
Capital lease
obligations, less current installments
|
|
9,194
|
|
9,521
|
|
Other long-term
liabilities
|
|
23,751
|
|
22,440
|
|
Shareholders'
equity
|
|
1,270,858
|
|
1,227,033
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
1,681,477
|
$
|
1,657,371
|
SOURCE Benchmark Electronics, Inc.