Exhibit 99.1
For More Information, Call:
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GAYLA J. DELLY |
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CHIEF FINANCIAL OFFICER |
October 20, 2005 |
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(979) 849-6550 |
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ANGLETON, TX, OCTOBER 20, 2005 – Benchmark Electronics, Inc., (NYSE: BHE) a leading contract manufacturing provider, announced sales of $561 million for the quarter ended September 30, 2005, compared to $505 million for the same quarter last year. Third quarter net income was $20.3 million, or $0.47 per diluted share. In the comparable period last year, net income was $18.0 million, or $0.43 per diluted share.
“Our third quarter results are a clear indication that our strategy is working as we delivered double digit growth in sales and net income,” stated Benchmark’s President and CEO Cary T. Fu. “Our continued focus and execution on meeting our customers’ needs around the world have provided for strong growth, profitability and increased shareholder value.”
“I would like to thank our teams for their performance during the disruption caused by the Hurricane Rita evacuation that occurred during the last ten days of the third quarter. Our team’s flexibility and dedication during this historical event in the Angleton/Houston area was nothing short of remarkable.”
• Operating margin for the third quarter was 4.4%.
• Cash flows provided by operating activities for the third quarter was $45 million.
• Return on invested capital of 12.7%.
• Cash and short-term investments balance at September 30, 2005 of $321 million.
• No debt outstanding.
• Accounts receivable decreased by $8 million during the quarter to $302 million; calculated days sales outstanding were 48 days.
• Inventories increased by $5 million during the quarter to $318 million; inventory turns were 6.6 times.
• Revenue in the fourth quarter of 2005 is expected to be between $585 million and $615 million.
• Earnings per share for the fourth quarter of 2005 are expected to be $0.49 to $0.54 per diluted share.
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 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, customer actions and the other factors discussed in Benchmark’s Form 10-K for the year ended December 31, 2004 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 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.
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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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Nine Months Ended |
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2005 |
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2004 |
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2005 |
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2004 |
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Net sales |
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$ |
561,452 |
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$ |
504,750 |
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$ |
1,631,851 |
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$ |
1,477,108 |
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Cost of sales |
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521,148 |
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466,232 |
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1,515,316 |
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1,363,084 |
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Gross profit |
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40,304 |
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38,518 |
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116,535 |
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114,024 |
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Selling, general and administrative expenses |
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15,617 |
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14,553 |
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46,307 |
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45,604 |
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Income from operations |
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24,687 |
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23,965 |
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70,228 |
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68,420 |
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Other income (expense): |
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Interest expense |
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(86 |
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(392 |
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(238 |
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(1,551 |
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Other |
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2,062 |
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849 |
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4,688 |
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2,603 |
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Total other income, net |
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1,976 |
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457 |
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4,450 |
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1,052 |
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Income before income taxes |
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26,663 |
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24,422 |
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74,678 |
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69,472 |
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Income tax expense |
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6,356 |
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6,389 |
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18,744 |
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18,688 |
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Net income |
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$ |
20,307 |
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$ |
18,033 |
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$ |
55,934 |
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$ |
50,784 |
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Denominator for basic earnings per share - weighted average number of common shares outstanding during the period |
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41,824 |
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41,123 |
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41,720 |
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41,042 |
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Incremental common shares attributable to exercise of outstanding dilutive options |
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946 |
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1,190 |
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1,031 |
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1,345 |
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Denominator for diluted earnings per share |
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42,770 |
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42,313 |
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42,751 |
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42,387 |
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Earnings per share: |
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Basic |
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$ |
0.49 |
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$ |
0.44 |
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$ |
1.34 |
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$ |
1.24 |
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Diluted |
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$ |
0.47 |
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$ |
0.43 |
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$ |
1.31 |
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$ |
1.20 |
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Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
September 30, 2005
(Amounts in Thousands)
(UNAUDITED)
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Assets |
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Current assets: |
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Cash and cash-equivalents |
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$ |
125,756 |
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Short-term investments |
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195,480 |
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Accounts receivable, net |
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302,254 |
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Inventories, net |
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317,568 |
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Other current assets |
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36,342 |
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Total current assets |
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977,400 |
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Property, plant and equipment, net |
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87,897 |
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Other assets, net |
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6,487 |
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Goodwill, net |
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112,990 |
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Total assets |
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$ |
1,184,774 |
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Liabilities and Shareholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
283,115 |
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Other current liabilities |
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75,070 |
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Total current liabilities |
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358,185 |
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Other long-term liabilities |
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9,458 |
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Shareholders’ equity |
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817,131 |
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Total liabilities and shareholders’ equity |
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$ |
1,184,774 |
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