Benchmark Electronics Reports Results For The Quarter Ended March 31, 2013

ANGLETON, Texas, April 25, 2013 /PRNewswire/ -- Benchmark Electronics, Inc. (NYSE: BHE), a leading integrated contract manufacturing provider, today announced financial results for the first quarter which ended March 31, 2013.




Three Months Ended





March 31,



December 31,



March 31,




2013



2012



2012


Net sales (in millions)


$542



$634



$593


Net income (in millions)


$11



$18



$6


Net income – non-GAAP (in millions)


$12



$18



$14


Diluted EPS


$0.21



$0.33



$0.10


Diluted EPS – non-GAAP


$0.22



$0.33



$0.25


Operating margin (%)


2.6

%


3.9

%


1.3

%

Operating margin – non-GAAP (%)


2.7

%


3.7

%


3.0

%

"First quarter revenues and earnings were in line with our expectations," said Gayla J. Delly, the Company's Chief Executive Officer. "These results were driven by our teams' continued ability to execute effectively in the current uncertain global economic environment. Against these headwinds, contributions from new program ramps, operational excellence and strength in new program wins provide good momentum for future growth. As we look ahead, we expect second quarter revenues in the range of $560 million to $590 million and diluted earnings per share (excluding restructuring and Thailand flood related items) between $0.25 and $0.30."

First Quarter 2013 Highlights

  • Revenue of $542 million included the anticipated softness in the computing and related products industry sector.
  • Non-GAAP diluted earnings per share of $0.22 was slightly above our expectations reflecting a favorable mix and effective management of new program ramps.
  • Cash flows provided by operating activities for Q1 2013 were approximately $49 million. There were no Thailand flood insurance recoveries during Q1 2013 and the recovery process with our insurance carriers is ongoing.
  • Cash and long-term investments balance was $427 million at March 31, 2013.
  • Accounts receivable was $419 million at March 31, 2013; calculated days sales outstanding were 69 days compared to 65 days at December 31, 2012 and 72 days at March 31, 2012.
  • Inventory was $321 million at March 31, 2013; inventory turns were 6.3 times compared to 7.3 at December 31, 2012 and 5.5 at March 31, 2012.
  • Repurchases of common shares for the first quarter totaled $12 million or 680 thousand shares.

First Quarter Industry Sector Update
The following table sets forth revenue by industry sector for the quarters ended March 31, 2013, December 31, 2012 and March 31, 2012.



March 31,


December 31,


March 31,




2013


2012


2012


Computers and related products for business








enterprises

25

%

33

%

31

%

Industrial control equipment

30


27


27


Telecommunication equipment

26


25


25


Medical devices

13


10


9


Testing and instrumentation products

6


5


8




100

%

100

%

100

%

Second Quarter 2013 Outlook

  • Revenue between $560 and $590 million.
  • Diluted earnings per share between $0.25 and $0.30 (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 21 facilities in nine 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 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 statement "against these headwinds, our contributions from new program ramps, operational excellence and strength in new program wins provide good momentum for future growth", our sales and diluted earnings per share (excluding special items) guidance for the second 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








Reconciliation of GAAP to Non-GAAP Financial Results

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)


















Three months ended





March 31,





2013


2012









Income from operations (GAAP)

$

13,993

$

7,825


Restructuring charges


442


(36)


Thailand flood related charges, net of insurance


-


10,218


Non-GAAP income from operations

$

14,435

$

18,007






























Net income (GAAP)

$

11,487

$

5,598


Restructuring charges, net of tax


399


(126)


Thailand flood related charges, net of insurance and tax


-


9,002


Non-GAAP net income

$

11,886

$

14,474
















Earnings per share: (GAAP)







Basic

$

0.21

$

0.10



Diluted

$

0.21

$

0.10









Earnings per share: (Non-GAAP)







Basic

$

0.22

$

0.25



Diluted

$

0.22

$

0.25









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







Basic


54,796


57,484



Diluted


55,150


57,853























Benchmark Electronics, Inc. and Subsidiaries















Consolidated Statements of Income


(Amounts in Thousands, Except Per Share Data)


(UNAUDITED)







Three months ended





March 31,




2013


2012


Sales

$

542,444

$

593,417


Cost of sales


505,610


552,909



Gross profit


36,834


40,508


Selling, general and administrative expenses


22,399


22,501


Restructuring charges


442


(36)


Thailand flood related charges, net of insurance


-


10,218



Income from operations


13,993


7,825


Interest expense


(459)


(325)


Interest income


414


378


Other income, net


316


366



Income before income taxes


14,264


8,244


Income tax expense


2,777


2,646



Net income

$

11,487

$

5,598









Earnings per share:







Basic

$

0.21

$

0.10



Diluted

$

0.21

$

0.10









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







Basic


54,796


57,484



Diluted


55,150


57,853























Benchmark Electronics, Inc. and Subsidiaries










Condensed Consolidated Balance Sheets

(in thousands)







March 31,


December 31,







2013


2012







(unaudited)



Assets






Current assets:







Cash and cash equivalents

$

416,854

$

384,579



Accounts receivable, net


418,633


459,081



Inventories, net


320,605


324,041



Other current assets


43,542


46,490





Total current assets


1,199,634


1,214,191


Long-term investments


10,291


10,324


Property, plant and equipment, net


173,351


176,104


Goodwill, net


37,912


37,912


Other, net


61,589


62,946





Total assets

$

1,482,777

$

1,501,477










Liabilities and Shareholders' Equity






Current liabilities:







Current installments of capital lease obligations

$

517

$

497



Accounts payable


251,072


260,622



Accrued liabilities


56,110


69,396





Total current liabilities


307,699


330,515


Capital lease obligations, less current installments


9,971


10,103


Other long-term liabilities


22,027


21,334


Shareholders' equity


1,143,080


1,139,525





Total liabilities and shareholders' equity

$

1,482,777

$

1,501,477

 

SOURCE Benchmark Electronics, Inc.



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