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8-K - FORM 8-K - BENCHMARK ELECTRONICS INCForm_8K.htm
EX-99 - EXHIBIT 99.2 - BENCHMARK ELECTRONICS INCExhibit_99.2.htm

 

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

 

BENCHMARK ELECTRONICS REPORTS RESULTS FOR THE

QUARTER ENDED JUNE 30, 2013

 

ANGLETON, TX, JULY 25, 2013 – Benchmark Electronics, Inc. (NYSE: BHE), a leading integrated contract manufacturing provider, today announced financial results for the second quarter which ended June 30, 2013.

 

  

  

  

Three Months Ended

  

  

  

  

June 30,

  

  

March 31,

  

  

June 30,

  

  

  

2013 

  

  

2013 

  

  

2012 

  

Net sales (in millions)

  

$608

  

  

$542

  

  

$630

  

Net income (in millions)

  

$8

  

  

$11

  

  

$14

  

Net income – non-GAAP (in millions)

  

$17

  

  

$12

  

  

$18

  

Diluted EPS

  

$0.16

  

  

$0.21

  

  

$0.24

  

Diluted EPS – non-GAAP

  

$0.31

  

  

$0.22

  

  

$0.32

  

Operating margin (%)

  

 2.1 

%

  

 2.6 

%

  

 2.9 

%

Operating margin – non-GAAP (%)

  

 3.5 

%

  

 2.7 

%

  

 3.7 

%

 

“In the second quarter, we delivered strong performance with revenue and operating margins (non-GAAP) up sequentially from the first quarter of this year,” said President and CEO Gayla J. Delly. “While the current macro environment provides limited visibility, we continue to see good long-term opportunities with new and existing customers. Our business development efforts resulted in another quarter of robust bookings, providing a solid foundation for continued growth.”

 

Second Quarter 2013 Highlights

·         Revenue of $608 million increased 12% from Q1 2013.

·         Revenue bookings in Q2 2013 were $135 million to $155 million.

·         During the quarter, we acquired Suntron Corporation for $19 million which includes two sites: Tijuana, Mexico and Phoenix, Arizona.

·         Non-GAAP diluted earnings per share of $0.31 was above our expectations primarily impacted by Q2 revenue strength.

·         Restructuring and integration costs of $6 million are primarily related to severance and asset impairment charges related to the closure of our Brazil manufacturing operations.

·         Asset impairment charge and other of $3 million primarily relates to the impairment of a building classified as “Held for Sale”.

·         Cash flows provided by operating activities for Q2 2013 were approximately $11 million. There were no Thailand flood insurance recoveries during Q2 2013 and the recovery process with our insurance carriers is ongoing.

·         Cash and long-term investments balance was $409 million at June 30, 2013.

·         Accounts receivable was $464 million at June 30, 2013; calculated days sales outstanding were 69 days compared to 69 days at March 31, 2013 and 65 days at June 30, 2012.

·         Inventory was $350 million at June 30, 2013; inventory turns were 6.4 times compared to 6.3 at March 31, 2013 and 6.0 at June 30, 2012.

·         Repurchases of common shares for the second quarter totaled $9 million or  520 thousand  shares. 


 

 

Second Quarter Industry Sector Update

The following table sets forth revenue by industry sector for the quarters ended June 30, 2013, March 31, 2013 and June 30, 2012.

 

  

  

June 30,

  

March 31,

  

June 30,

  

  

  

2013 

  

2013 

  

2012 

  

Computers and related products for business

  

  

  

  

  

  

  

enterprises

 29 

%

 25 

%

 31 

%

Industrial control equipment

 30 

  

 30 

  

 26 

  

Telecommunication equipment

 23 

  

 26 

  

 25 

  

Medical devices

 12 

  

 13 

  

 10 

  

Testing and instrumentation products

 6 

  

 6 

  

 8 

  

  

  

 100 

%

 100 

%

 100 

%

 

Third Quarter 2013 Outlook

·         Revenue between $590 and $620 million.

·         Diluted earnings per share between $0.28 and $0.32 (excluding restructuring and Thailand flood related items).

 

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 23 facilities in nine 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 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 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. Our forward-looking statements may be deemed to include, among other things, the statements “while the current macro environment provides limited visibility, we continue to see good long-term opportunities with new and existing customers” and “our business development efforts resulted in another quarter of robust bookings, providing a solid foundation for continued growth”, our sales and diluted earnings per share (excluding special items) guidance for the third quarter of 2013, as well as other statements, express or implied, concerning: the potential recovery of insurance proceeds; 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. Persons are advised to consult further disclosures on related subjects in Benchmark’s Form 10-K for the year ended December 31, 2012, in its other filings with the Securities and Exchange Commission and in its press releases.

###


 

 

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,

  

  

2013 

  

2012 

  

  

2013 

  

2012 

Sales

$

 607,522 

$

 630,031 

  

$

 1,149,966 

$

 1,223,448 

Cost of sales

  

 563,155 

  

 584,040 

  

  

 1,068,765 

  

 1,136,949 

  

Gross profit

  

 44,367 

  

 45,991 

  

  

 81,201 

  

 86,499 

Selling, general and administrative expenses

  

 23,311 

  

 22,779 

  

  

 45,710 

  

 45,280 

Restructuring charges and integration costs

  

 5,667 

  

 286 

  

  

 6,109 

  

 250 

Asset impairment charge and other

  

 2,606 

  

 - 

  

  

 2,606 

  

 - 

Thailand flood related charges, net of insurance

  

 - 

  

 4,658 

  

  

 - 

  

 14,876 

  

Income from operations

  

 12,783 

  

 18,268 

  

  

 26,776 

  

 26,093 

Interest expense

  

 (463) 

  

 (322) 

  

  

 (922) 

  

 (647) 

Interest income

  

 291 

  

 231 

  

  

 705 

  

 609 

Other expense, net

  

 (501) 

  

 (448) 

  

  

 (185) 

  

 (82) 

  

Income before income taxes

  

 12,110 

  

 17,729 

  

  

 26,374 

  

 25,973 

Income tax expense

  

 3,653 

  

 4,149 

  

  

 6,430 

  

 6,795 

  

Net income

$

 8,457 

$

 13,580 

  

$

 19,944 

$

 19,178 

  

  

  

  

  

  

  

  

  

  

  

Earnings per share:

  

  

  

  

  

  

  

  

  

  

Basic

$

 0.16 

$

0.24 

  

$

 0.37 

$

0.34 

  

Diluted

$

 0.16 

$

0.24 

  

$

 0.36 

$

0.33 

  

  

  

  

  

  

  

  

  

  

  

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

  

  

  

  

  

  

  

  

  

  

Basic

  

 54,207 

  

 56,963 

  

  

 54,500 

  

 57,223 

  

Diluted

  

 54,500 

  

 57,198 

  

  

 54,897 

  

 57,599 


 

 

Benchmark Electronics, Inc. and Subsidiaries

  

  

  

  

  

  

  

  

  

Condensed Consolidated Balance Sheets

(in thousands)

  

  

  

  

  

  

June 30,

  

December 31,

  

  

  

  

  

  

2013 

  

2012 

  

  

  

  

  

  

(unaudited)

  

  

Assets

  

  

  

  

  

Current assets:

  

  

  

  

  

  

Cash and cash equivalents

$

 398,902 

$

 384,579 

  

  

Accounts receivable, net

  

 464,491 

  

 459,081 

  

  

Inventories, net

  

 350,416 

  

 324,041 

  

  

Other current assets

  

 44,712 

  

 46,490 

  

  

  

  

Total current assets

  

 1,258,521 

  

 1,214,191 

  

Long-term investments

  

 10,575 

  

 10,324 

  

Property, plant and equipment, net

  

 173,954 

  

 176,104 

  

Goodwill, net

  

 37,912 

  

 37,912 

  

Other, net

  

 57,856 

  

 62,946 

  

  

  

  

Total assets

$

 1,538,818 

$

 1,501,477 

  

  

  

  

  

  

  

  

  

Liabilities and Shareholders’ Equity

  

  

  

  

  

Current liabilities:

  

  

  

  

  

  

Current installments of capital lease obligations

$

 538 

$

 497 

  

  

Accounts payable

  

 294,222 

  

 260,622 

  

  

Accrued liabilities

  

 65,477 

  

 69,396 

  

  

  

  

Total current liabilities

  

 360,237 

  

 330,515 

  

Capital lease obligations, less current installments

  

 9,822 

  

 10,103 

  

Other long-term liabilities

  

 22,482 

  

 21,334 

  

Shareholders’ equity

  

 1,146,277 

  

 1,139,525 

  

  

  

  

Total liabilities and shareholders’ equity

$

 1,538,818 

$

 1,501,477