Exhibit 99.1
Press Release
For More Information, Call:
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GAYLA J. DELLY |
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CHIEF FINANCIAL OFFICER |
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APRIL 22, 2004 |
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(979) 849-6550 |
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FOR IMMEDIATE RELEASE
BENCHMARK ELECTRONICS REPORTS
STRONG FIRST QUARTER 2004 RESULTS
ANGLETON, TX, APRIL 22, 2004 – Benchmark Electronics, Inc., (NYSE: BHE) a leading contract manufacturing provider, announced sales revenue of $481 million for the quarter ended March 31, 2004, compared to $448 million for the same quarter last year. First quarter net income was $15.2 million, or $0.36 per diluted share. In the comparable period last year, net income was $17.3 million, or $0.44 per diluted share, which included a contract settlement gain of $5.5 million, net of tax, or $0.13 per diluted share. Without the effect of the contract settlement gain in the first quarter of 2003, the Company’s net income was $11.8 million, or $0.31 per diluted share.
“Our new program activities have gained momentum and the overall technology marketplace has shown improvement. Another excellent quarter resulted from our team’s performance. With a high number of variables impacting our quarter, our team remained focused and flexible and delivered strong results,” commented Cary T. Fu, President of Benchmark Electronics, Inc.
First Quarter 2004 Financial Highlights
• Operating margin of 4.5%.
• Return on invested capital of 14%.
• Working capital metrics were impacted by new program introduction delays, back end loading of shipments and production mix changes.
• Concentration of revenues reduced to 33% from top customer.
• Cash balance at March 31, 2004 of $302 million.
• No bank debt outstanding as of March 31, 2004.
• Accounts receivable increased by $22 million during the quarter to $231 million.
• Calculated days sales outstanding increased to 43 days for the quarter.
• Inventories increased by $31 million during the quarter to $270 million.
• Revenue in the second quarter of 2004 is expected to be between $465 million and $490 million.
• Earnings per share for the second quarter of 2004 are expected to be $0.35 to $0.39 per diluted share.
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 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. Although the Company 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, customer actions and the other factors discussed in Benchmark’s Form 10-K for the year ended December 31, 2003 and its other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.
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 facilities in eight countries. Benchmark’s Common Stock trades 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 CDT 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.
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Benchmark Electronics, Inc. and Subsidiaries
Consolidated Statements of Income
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)
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Three
Months Ended |
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2004 |
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2003 |
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Net sales |
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$ |
480,966 |
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448,470 |
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Cost of sales |
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443,809 |
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412,865 |
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Gross profit |
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37,157 |
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35,605 |
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Selling, general and administrative expenses |
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15,721 |
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16,472 |
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Contract settlement |
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— |
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(8,108 |
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Operating income |
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21,436 |
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27,241 |
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Other income (expense): |
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Interest expense |
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(765 |
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(2,570 |
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Other |
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433 |
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816 |
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Total other expense, net |
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(332 |
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(1,754 |
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Income before income taxes |
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21,104 |
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25,487 |
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Income tax expense |
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5,909 |
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8,156 |
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Net income |
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$ |
15,195 |
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17,331 |
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Numerator for basic earnings per share - net income |
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15,195 |
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17,331 |
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Interest expense on 6% convertible debt, netof tax |
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— |
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818 |
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Numerator for diluted earnings per share |
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$ |
15,195 |
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18,149 |
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Denominator for basic earnings per share - |
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40,954 |
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36,764 |
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Incremental common shares attributable to |
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1,399 |
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1,430 |
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Incremental common shares attributable to |
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— |
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2,993 |
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Denominator for diluted earnings per share |
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42,353 |
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41,187 |
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Earnings per share: |
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Basic |
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$ |
0.37 |
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0.47 |
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Diluted |
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$ |
0.36 |
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0.44 |
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Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
March 31, 2004
(Amounts in Thousands)
(UNAUDITED)
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Assets |
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Current assets: |
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Cash |
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$ |
301,864 |
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Accounts receivable, net |
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230,755 |
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Inventories, net |
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269,726 |
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Other current assets |
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27,411 |
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Total current assets |
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829,756 |
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Property, plant and equipment, net |
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80,133 |
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Other assets, net |
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6,560 |
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Goodwill, net |
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113,478 |
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Total assets |
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$ |
1,029,927 |
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Liabilities and Shareholders’ Equity |
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Current liabilities: |
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Current installments of other long-term debt |
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$ |
17 |
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Accounts payable |
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265,688 |
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Other current liabilities |
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73,207 |
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Total current liabilities |
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338,912 |
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Other long-term debt, excluding current installments |
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7 |
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Other long-term liabilities |
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8,308 |
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Shareholders’ equity |
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682,700 |
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Total liabilities and shareholders’ equity |
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$ |
1,029,927 |
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Benchmark Electronics, Inc. and Subsidiaries
Consolidated Statement of Income – Excluding Special Items
Three Months Ended March 31, 2003
(Amounts in Thousands)
(UNAUDITED)
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As |
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Special Items |
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Before |
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Net sales |
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$ |
448,470 |
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— |
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448,470 |
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Cost of sales |
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412,865 |
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— |
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412,865 |
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Gross profit |
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35,605 |
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— |
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35,605 |
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Selling, general and administrative expenses |
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16,472 |
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— |
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16,472 |
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Contract settlement |
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(8,108 |
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8,108 |
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— |
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Operating income |
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27,241 |
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(8,108 |
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19,133 |
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Other income (expense): |
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Interest expense |
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(2,570 |
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— |
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(2,570 |
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Other |
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816 |
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— |
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816 |
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Total other expense, net |
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(1,754 |
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— |
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(1,754 |
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Income before income taxes |
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25,487 |
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(8,108 |
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17,379 |
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Income tax expense |
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8,156 |
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(2,595 |
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5,561 |
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Net income |
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$ |
17,331 |
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(5,513 |
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11,818 |
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Numerator for basic earnings per share –net income |
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$ |
11,818 |
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Interest expense on 6% convertible debt, netof tax |
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818 |
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Numerator for diluted earnings per share |
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$ |
12,636 |
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Denominator for basic earnings per share – |
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36,764 |
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Incremental common shares attributable to |
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1,430 |
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Incremental common shares attributable to |
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2,993 |
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Denominator for diluted earnings per share |
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41,187 |
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Earnings per share: |
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Basic |
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$ |
0.32 |
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Diluted |
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$ |
0.31 |
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