ANGLETON, Texas, April 24, 2014 /PRNewswire/ -- Benchmark
Electronics, Inc. (NYSE: BHE), a leading integrated contract
manufacturing provider, today announced financial results for its
first quarter.
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Three Months
Ended
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March
31,
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December
31,
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March 31,
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2014
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2013
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2013
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Net sales (in
millions)
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$639
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$757
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$542
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Net income (in
millions)
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$19
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$67
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$11
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Net income – non-GAAP
(in millions)
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$19
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$24
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$12
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Diluted
EPS
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$0.35
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$1.24
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$0.21
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Diluted EPS –
non-GAAP
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$0.35
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$0.43
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$0.22
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Operating margin
(%)
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3.5
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%
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8.0
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%
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2.6
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%
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Operating margin –
non-GAAP (%)
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3.6
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%
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4.1
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%
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2.7
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%
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"Benchmark again delivered strong performance, which allowed us
to exceed our earnings expectations in the first quarter," noted
Gayla J. Delly, President and CEO.
"Our focus on growth opportunities in the non‐traditional market
sectors, coupled with operational excellence and enhanced customer
solutions, resulted in improved year‐over‐year revenue and
operating margins. Our strategy is delivering results and we expect
to continue to expand margins and drive additional improvements
throughout the year."
First Quarter 2014 Highlights
- Revenue of $639 million increased
18% from Q1 2013.
- New program bookings in Q1 2014 were $135 million to $165 million.
- Restructuring and integration and acquisition-related costs
totaled $2.1 million.
- Thailand flood related items
include insurance recoveries of $1.6
million. The recovery process with our insurance carriers is
complete.
- Cash flows provided by operating activities for Q1 2014 were
approximately $61 million.
- Cash and cash equivalents balance was $394 million at March 31,
2014.
- Accounts receivable was $465
million at March 31, 2014;
calculated days sales outstanding were 65 days compared to 67 days
at December 31, 2013 and 69 days at
March 31, 2013.
- Inventory was $443 million at
March 31, 2014; inventory turns were
5.3 times compared to 7.0 at December 31,
2013 and 6.3 at March 31,
2013. Inventory increased in the first quarter to support
new program ramps.
- Repurchases of common shares for the first quarter totaled
$5 million or 196,000 shares.
- Non-GAAP operating margin for the first quarter was 3.6%.
- Income tax expense for Q1 2014 includes a $1.2 million discrete tax benefit ($0.02 per diluted share) as a result of a 2013
tax rate incentive received in China during the first quarter.
First Quarter Industry Sector Update
The following
table sets forth revenue by industry sector for the quarters ended
March 31, 2014, December 31, 2013 and March 31, 2013.
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March 31,
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December
31,
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March 31,
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2014
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2013
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2013
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Computers and related
products for business
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enterprises
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20
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%
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32
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%
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25
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%
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Industrial control
equipment
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29
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26
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29
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Telecommunication
equipment
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27
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24
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26
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Medical
devices
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11
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10
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13
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Testing and
instrumentation products
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13
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8
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7
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100
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%
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100
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%
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100
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%
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Second Quarter 2014 Outlook
- Revenue between $665 and $700
million.
- Diluted earnings per share between $0.35
and $0.40 (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. Benchmark's
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 are not in accordance with
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
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 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 of such expressions, are intended to
identify forward-looking statements. Our forward-looking statements
may be deemed to include, among other things, the statement "our
strategy is delivering results and we expect to continue to expand
margins and drive additional improvements throughout the year", our
sales and diluted earnings per share (excluding special items)
guidance for the second 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 any
such forward-looking 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
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Reconciliation of
GAAP to Non-GAAP Financial Results
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(Amounts in
Thousands, Except Per Share Data)
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(UNAUDITED)
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Three Months
Ended
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March 31,
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December
31,
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March 31,
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2014
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2013
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2013
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Income from
operations (GAAP)
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$
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22,432
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$
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60,275
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$
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13,993
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Restructuring charges
and integration
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and
acquisition-related costs
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2,109
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2,025
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442
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Thailand flood
related items, net of insurance
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(1,571)
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(31,577)
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-
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Non-GAAP income from
operations
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$
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22,970
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$
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30,723
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$
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14,435
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Net income
(GAAP)
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$
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19,125
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$
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67,489
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$
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11,487
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Restructuring charges
and integration and
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acquisition-related costs, net of
tax
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1,383
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1,343
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399
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Thailand flood
related items, net of insurance and tax
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(1,263)
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(27,810)
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-
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Discrete US tax
benefit
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-
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(17,500)
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-
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Non-GAAP net
income
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$
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19,245
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$
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23,522
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$
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11,886
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Earnings per share:
(GAAP)
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Basic
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$
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0.36
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$
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1.26
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$
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0.21
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Diluted
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$
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0.35
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$
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1.24
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$
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0.21
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Earnings per share:
(Non-GAAP)
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Basic
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$
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0.36
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$
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0.44
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$
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0.22
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Diluted
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$
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0.35
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$
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0.43
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$
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0.22
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Weighted-average
number of shares used
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in calculating
earnings per share:
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Basic
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53,650
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53,773
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54,796
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Diluted
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54,277
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54,327
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55,150
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Benchmark
Electronics, Inc. and Subsidiaries
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Consolidated
Statements of Income
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(Amounts in
Thousands, Except Per Share Data)
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(UNAUDITED)
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Three Months
Ended
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March 31,
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2014
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2013
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Sales
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$
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639,344
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$
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542,444
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Cost of
sales
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588,221
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505,610
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Gross
profit
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51,123
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36,834
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Selling, general and
administrative expenses
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28,153
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22,399
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Restructuring charges
and integration and acquisition-related costs
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2,109
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442
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Thailand flood
related items, net of insurance
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(1,571)
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-
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Income from
operations
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22,432
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13,993
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Interest
expense
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(476)
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(459)
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Interest
income
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515
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414
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Other income,
net
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26
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316
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Income before income
taxes
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22,497
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14,264
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Income tax
expense
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3,372
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2,777
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Net income
|
$
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19,125
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$
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11,487
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Earnings per
share:
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Basic
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$
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0.36
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$
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0.21
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Diluted
|
$
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0.35
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$
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0.21
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Weighted-average
number of shares used in calculating earnings per share:
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|
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Basic
|
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53,650
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|
54,796
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Diluted
|
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54,277
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55,150
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Benchmark
Electronics, Inc. and Subsidiaries
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Condensed
Consolidated Balance Sheets
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(in
thousands)
|
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March 31,
|
|
December
31,
|
|
|
|
|
|
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2014
|
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2013
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(unaudited)
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Assets
|
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Current
assets:
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Cash and cash
equivalents
|
$
|
394,194
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$
|
345,555
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Accounts receivable,
net
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464,999
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|
559,763
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|
Inventories,
net
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443,203
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|
396,699
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Other current
assets
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40,222
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|
40,816
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Total current
assets
|
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1,342,618
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|
1,342,833
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Long-term
investments
|
|
9,906
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|
9,921
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|
Property, plant and
equipment, net
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|
187,689
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|
185,319
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|
Goodwill and other,
net
|
|
117,678
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|
119,298
|
|
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Total
assets
|
$
|
1,657,891
|
$
|
1,657,371
|
|
|
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|
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|
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|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current installments
of capital lease obligations
|
$
|
605
|
$
|
582
|
|
|
Accounts
payable
|
|
299,715
|
|
320,953
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|
|
Accrued
liabilities
|
|
75,861
|
|
76,842
|
|
|
|
|
Total current
liabilities
|
|
376,181
|
|
398,377
|
|
Capital lease
obligations, less current installments
|
|
9,366
|
|
9,521
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|
Other long-term
liabilities
|
|
23,670
|
|
22,440
|
|
Shareholders'
equity
|
|
1,248,674
|
|
1,227,033
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
1,657,891
|
$
|
1,657,371
|
SOURCE Benchmark Electronics, Inc.