ANGLETON, Texas, Oct. 27 /PRNewswire-FirstCall/ -- Benchmark Electronics, Inc.
(NYSE: BHE), a leading contract manufacturing provider, announced sales of
$510 million for the quarter ended September 30, 2009, compared to $642
million for the same quarter in the prior year. The Company reported third
quarter net income of $16 million, or $0.25 per diluted share. In the
comparable period of 2008, net income was $24 million, or $0.35 per diluted
share. Excluding restructuring charges and a discrete tax benefit related to a
previously closed facility, the Company would have reported net income of $17
million, or $0.27 per diluted share, in the third quarter of 2009 and $20
million, or $0.31 per diluted share, in the third quarter of 2008.
"We are seeing positive signs that the economy is beginning to slowly recover
as our customers are more confident," said Cary T. Fu, the Company's Chief
Executive Officer. "Our team has done a great job during this downturn. We've
expanded our customer base and service capabilities, aggressively reduced our
costs, realigned our capacity and improved our efficiencies. These actions
have put us in a great position to benefit from the economic recovery."
Third Quarter 2009 Financial Highlights
-- Operating margin for the third quarter was 2.3% on a GAAP basis and
3.0%, excluding restructuring charges.
-- Cash flows provided by operating activities for the third quarter and
the first nine months of 2009 were approximately $41 million and $117
million, respectively.
-- Cash and long-term investments balance was $484 million at September
30,
2009. Long-term investments consist of $46 million of auction rate
securities.
-- Accounts receivable was $378 million at September 30, 2009; calculated
days sales outstanding were 67 days.
-- Inventory was $294 million at September 30, 2009; inventory turns were
6.5 times.
-- Repurchases of common shares for the third quarter totaled $6 million
or
0.4 million shares.
-- Restructuring charges for the third quarter of 2009 were approximately
$3.8 million primarily related to capacity reduction and severance
related costs in Europe.
-- Income tax benefit includes a $2.4 million ($0.04 per diluted share)
discrete tax benefit related to a revaluation loss in Mexico.
Fourth Quarter 2009 Outlook
Sales for the fourth quarter of 2009 are expected to range from $520 million
to $560 million. Diluted earnings per share for the fourth quarter, excluding
restructuring charges, are expected to be between $0.22 and $0.26.
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, our sales and diluted earnings per share
(excluding restructuring charges) guidance for the fourth quarter of 2009, 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, including but not limited to industry and economic conditions,
and customer actions. 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, 2008, in its other
filings with the Securities and Exchange Commission and in its press releases.
Additional Information
Benchmark Electronics, Inc. provides electronics manufacturing, design and
engineering 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 24 facilities in ten
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.
Benchmark Electronics, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Results
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Income from operations (GAAP) $11,674 $21,857 $34,199 $65,446
Restructuring charges 3,754 253 5,901 253
Non-GAAP income from
operations $15,428 $22,110 $40,100 $65,699
Net income (GAAP) $16,416 $23,635 $37,209 $68,106
Restructuring charges, net
of tax 3,647 228 5,343 228
Discrete US tax benefit (2,668) (3,440) (2,668) (3,440)
Non-GAAP net income $17,395 $20,423 $39,884 $64,894
Earnings per share: (GAAP)
Basic $0.25 $0.36 $0.57 $1.01
Diluted $0.25 $0.35 $0.57 $1.00
Earnings per share: (Non-GAAP)
Basic $0.27 $0.31 $0.61 $0.96
Diluted $0.27 $0.31 $0.61 $0.95
Weighted average shares used
in calculating earnings
per share:
Basic 64,754 66,268 64,955 67,693
Diluted 65,194 66,630 65,206 68,251
Benchmark Electronics, Inc. and Subsidiaries
Consolidated Statements of Income
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Net sales $510,461 $641,672 $1,489,030 $2,008,397
Cost of sales 473,648 597,503 1,386,027 1,873,240
Gross profit 36,813 44,169 103,003 135,157
Selling, general and
administrative expenses 21,385 22,059 62,903 69,458
Restructuring charges 3,754 253 5,901 253
Income from
operations 11,674 21,857 34,199 65,446
Other income (expense):
Interest income 382 1,680 1,710 6,909
Interest expense (350) (378) (1,051) (1,102)
Other (575) (790) (970) 1,547
Total other income
(expense), net (543) 512 (311) 7,354
Income before income
taxes 11,131 22,369 33,888 72,800
Income tax benefit
(expense) 5,285 1,266 3,321 (4,694)
Net income $16,416 $23,635 $37,209 $68,106
Denominator for basic
earnings per share - weighted
average number of common
shares outstanding during
the period 64,754 66,268 64,955 67,693
Incremental common shares
attributable to restricted
shares and the assumed
exercise of outstanding
equity instruments 440 362 251 558
Denominator for diluted
earnings per share 65,194 66,630 65,206 68,251
Earnings per share:
Basic $0.25 $0.36 $0.57 $1.01
Diluted $0.25 $0.35 $0.57 $1.00
The results for the three and nine months ended September 30, 2008
reflect an immaterial correction of the Company's prior period
financial statements related to stock-based compensation expense.
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
September 30, 2009
(Amounts in Thousands)
(UNAUDITED)
Assets
Current assets:
Cash and cash-equivalents $438,044
Accounts receivable, net 378,492
Inventories, net 293,550
Other current assets 47,499
Total current assets 1,157,585
Long-term investments 46,306
Property, plant and equipment, net 127,867
Other assets, net 61,398
Goodwill, net 37,912
Total assets $1,431,068
Liabilities and Shareholders' Equity
Current liabilities:
Current installments of capital lease obligations $285
Accounts payable 239,697
Accrued liabilities 60,396
Total current liabilities 300,378
Capital lease obligations, less current installments 11,459
Other long-term liabilities 24,654
Shareholders' equity 1,094,577
Total liabilities and shareholders' equity $1,431,068
SOURCE Benchmark Electronics, Inc.
Ellen M. Dylla, Investor Relations of Benchmark Electronics, Inc.,
+1-979-849-6550
