Benchmark Electronics Reports First Quarter Results

Apr 19, 2001, 01:00 ET from Benchmark Electronics, Inc.

    ANGLETON, Texas, April 19 /PRNewswire/ -- Benchmark Electronics, Inc.
 (NYSE:   BHE) announced sales revenue of $432 million for the quarter ended
 March 31, 2001 -- an increase of 24% from $349 million in the same period a
 year earlier.  Net income excluding restructuring charges was $6.0 million for
 the quarter, a 203% increase over net income of $2.0 million in the same
 quarter of 2000.  Cash EPS excluding restructuring charges on a fully diluted
 basis was 41 cents per share for the quarter ended March 31, 2001, compared to
 24 cents per share for the same quarter in the year earlier.
     Our first quarter was in line with our revised expectations.  This quarter
 was impacted by the general slowdown in the technology marketplaces, which
 affected not only existing customer programs but also the pace of the new
 program rampings.  We have taken aggressive measures to adjust our cost
 structure to the current market conditions.  Based on current demand forecasts
 from our customers for the second quarter, we anticipate revenue to be
 approximately 10 - 15% below the first quarter and cash earnings per share in
 the range of 20 to 25 cents, excluding any restructuring charges.
     Donald E. Nigbor, president and CEO of Benchmark Electronics, Inc.
 commented:  "Benchmark has undertaken the very painful steps of reducing our
 workforce in line with the revenue forecasts from our customers.  We value
 each of our team members greatly and take these steps only when required by
 the business environment.  Although this downturn has been rapid and deep, we
 remain confident of Benchmark's future and the future of the EMS industry."
 
     First Quarter Financial Trend Highlights
     --  Gross margin was 7.5%, which is consistent with the fourth quarter
         2000.
     --  Selling general and administrative expenses remained at 3.3% for the
         first quarter 2001.
     --  Inventories decreased by $36 million in the quarter to $310 million
         as compared to $346 million for the fourth quarter 2000.  Inventory
         turns remained at 5.2 for the quarter.
     --  Accounts receivable decreased by $42 million in the quarter to
         $235 million as compared to $278 million for the fourth quarter 2000.
         Days sales outstanding improved to 49.0 for the quarter.
 
     This news release contains forward-looking statements based on current
 expectations, forecasts and assumptions that involve risks and uncertainties
 that could cause actual outcomes and results to differ materially.  These
 risks and uncertainties include component availability and cost, risk of
 component price fluctuations, reliance on major customers, delays, reductions
 and cancellations of orders forecasted by customers, fluctuations in quarterly
 operating results, changes in technology, competition, the ability to manage
 through an industry downturn, the ability to manage integration of acquired
 operations, risks associated with international sales and operations, interest
 rate risk, environmental regulations, litigation, market risk, segment risk,
 the ability to retain key personnel, our level of indebtedness, a
 deterioration in the condition of the capital markets and the ability to
 maintain our technological and manufacturing process expertise.  For a further
 list and description of risks and uncertainties, see the reports filed by
 Benchmark with the Securities and Exchange Commission, specifically forms 8-K,
 10-Q, 10-K and S-3.  Benchmark disclaims any intention or obligation to update
 or revise any forward-looking statements, whether as a result of new
 information, future events or otherwise.
     Benchmark Electronics, Inc. is in the business of manufacturing
 electronics and provides its services to original equipment manufacturers of
 telecommunication equipment, computers and related products for business
 enterprises, video/audio/entertainment products, industrial control equipment,
 testing and instrumentation products, personal computers and medical devices.
 Benchmark's global operations include 16 facilities in six 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
 9:00 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.  Additional information in the
 form of a slide presentation that summarizes and discusses the quarterly
 results may also be found on the website.
 
                  Benchmark Electronics, Inc. and Subsidiaries
 
                  Condensed Consolidated Statements of Income
                 (Amounts in Thousands, Except Per Share Data)
                                  (UNAUDITED)
 
                                                       Three Months Ended
                                                            March 31,
 
                                                       2001           2000
 
     Sales                                           $431,905        349,155
     Cost of sales                                    399,742        325,509
 
      Gross profit                                     32,163         23,646
 
     Selling, general and administrative expenses      14,160         12,681
     Restructuring charges (a)                          1,266            ---
     Amortization of goodwill                           3,222          3,220
 
      Income from operations                           13,515          7,745
 
     Other income (expense):
      Interest expense                                 (5,749)        (5,563)
      Other                                              (463)           828
     Total other expense, net                          (6,212)        (4,735)
 
      Income before income taxes                        7,303          3,010
 
     Income tax expense                                 2,191          1,033
 
      Net income                                       $5,112          1,977
 
     Earnings per share:
      Basic                                             $0.26           0.12
      Diluted                                            0.25           0.12
      Cash                                               0.36           0.24
 
     Weighted average number of shares outstanding:
      Basic                                            19,597         16,248
      Diluted                                          20,324         17,173
 
 
     (a)  During the quarter ended March 31, 2001, we recorded restructuring
          charges of $1.27 million ($0.89 million after-tax) related to
          reductions in force.
 
     Earnings per share before restructuring charges:
      Basic                                             $0.31           0.12
      Diluted                                            0.30           0.12
      Cash                                               0.41           0.24
 
 
                  Benchmark Electronics, Inc. and Subsidiaries
 
                      Condensed Consolidated Balance Sheet
                                 March 31, 2001
                 (Amounts in Thousands, Except Per Share Data)
                                  (UNAUDITED)
 
     Assets
 
     Current assets:
      Cash                                            $22,646
      Accounts receivable, net                        235,280
      Inventories, net                                309,652
      Other current assets                             18,032
       Total current assets                           585,610
 
     Property, plant and equipment, net               129,053
     Other assets, net                                 18,069
     Goodwill, net                                    162,214
 
       Total assets                                  $894,946
 
     Liabilities and Shareholders' Equity
 
     Current liabilities:
      Current installments of other long-term debt    $21,134
      Accounts payable                                204,987
      Other current liabilities                        28,890
       Total current liabilities                      255,011
 
     Revolving line of credit                          73,000
     Convertible subordinated notes                    80,200
     Other long-term debt, excluding
      current installments                             61,716
     Other long-term liabilities                       14,963
 
     Shareholders' equity                             410,056
 
       Total liabilities and shareholders' equity    $894,946
 
 

SOURCE Benchmark Electronics, Inc.
    ANGLETON, Texas, April 19 /PRNewswire/ -- Benchmark Electronics, Inc.
 (NYSE:   BHE) announced sales revenue of $432 million for the quarter ended
 March 31, 2001 -- an increase of 24% from $349 million in the same period a
 year earlier.  Net income excluding restructuring charges was $6.0 million for
 the quarter, a 203% increase over net income of $2.0 million in the same
 quarter of 2000.  Cash EPS excluding restructuring charges on a fully diluted
 basis was 41 cents per share for the quarter ended March 31, 2001, compared to
 24 cents per share for the same quarter in the year earlier.
     Our first quarter was in line with our revised expectations.  This quarter
 was impacted by the general slowdown in the technology marketplaces, which
 affected not only existing customer programs but also the pace of the new
 program rampings.  We have taken aggressive measures to adjust our cost
 structure to the current market conditions.  Based on current demand forecasts
 from our customers for the second quarter, we anticipate revenue to be
 approximately 10 - 15% below the first quarter and cash earnings per share in
 the range of 20 to 25 cents, excluding any restructuring charges.
     Donald E. Nigbor, president and CEO of Benchmark Electronics, Inc.
 commented:  "Benchmark has undertaken the very painful steps of reducing our
 workforce in line with the revenue forecasts from our customers.  We value
 each of our team members greatly and take these steps only when required by
 the business environment.  Although this downturn has been rapid and deep, we
 remain confident of Benchmark's future and the future of the EMS industry."
 
     First Quarter Financial Trend Highlights
     --  Gross margin was 7.5%, which is consistent with the fourth quarter
         2000.
     --  Selling general and administrative expenses remained at 3.3% for the
         first quarter 2001.
     --  Inventories decreased by $36 million in the quarter to $310 million
         as compared to $346 million for the fourth quarter 2000.  Inventory
         turns remained at 5.2 for the quarter.
     --  Accounts receivable decreased by $42 million in the quarter to
         $235 million as compared to $278 million for the fourth quarter 2000.
         Days sales outstanding improved to 49.0 for the quarter.
 
     This news release contains forward-looking statements based on current
 expectations, forecasts and assumptions that involve risks and uncertainties
 that could cause actual outcomes and results to differ materially.  These
 risks and uncertainties include component availability and cost, risk of
 component price fluctuations, reliance on major customers, delays, reductions
 and cancellations of orders forecasted by customers, fluctuations in quarterly
 operating results, changes in technology, competition, the ability to manage
 through an industry downturn, the ability to manage integration of acquired
 operations, risks associated with international sales and operations, interest
 rate risk, environmental regulations, litigation, market risk, segment risk,
 the ability to retain key personnel, our level of indebtedness, a
 deterioration in the condition of the capital markets and the ability to
 maintain our technological and manufacturing process expertise.  For a further
 list and description of risks and uncertainties, see the reports filed by
 Benchmark with the Securities and Exchange Commission, specifically forms 8-K,
 10-Q, 10-K and S-3.  Benchmark disclaims any intention or obligation to update
 or revise any forward-looking statements, whether as a result of new
 information, future events or otherwise.
     Benchmark Electronics, Inc. is in the business of manufacturing
 electronics and provides its services to original equipment manufacturers of
 telecommunication equipment, computers and related products for business
 enterprises, video/audio/entertainment products, industrial control equipment,
 testing and instrumentation products, personal computers and medical devices.
 Benchmark's global operations include 16 facilities in six 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
 9:00 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.  Additional information in the
 form of a slide presentation that summarizes and discusses the quarterly
 results may also be found on the website.
 
                  Benchmark Electronics, Inc. and Subsidiaries
 
                  Condensed Consolidated Statements of Income
                 (Amounts in Thousands, Except Per Share Data)
                                  (UNAUDITED)
 
                                                       Three Months Ended
                                                            March 31,
 
                                                       2001           2000
 
     Sales                                           $431,905        349,155
     Cost of sales                                    399,742        325,509
 
      Gross profit                                     32,163         23,646
 
     Selling, general and administrative expenses      14,160         12,681
     Restructuring charges (a)                          1,266            ---
     Amortization of goodwill                           3,222          3,220
 
      Income from operations                           13,515          7,745
 
     Other income (expense):
      Interest expense                                 (5,749)        (5,563)
      Other                                              (463)           828
     Total other expense, net                          (6,212)        (4,735)
 
      Income before income taxes                        7,303          3,010
 
     Income tax expense                                 2,191          1,033
 
      Net income                                       $5,112          1,977
 
     Earnings per share:
      Basic                                             $0.26           0.12
      Diluted                                            0.25           0.12
      Cash                                               0.36           0.24
 
     Weighted average number of shares outstanding:
      Basic                                            19,597         16,248
      Diluted                                          20,324         17,173
 
 
     (a)  During the quarter ended March 31, 2001, we recorded restructuring
          charges of $1.27 million ($0.89 million after-tax) related to
          reductions in force.
 
     Earnings per share before restructuring charges:
      Basic                                             $0.31           0.12
      Diluted                                            0.30           0.12
      Cash                                               0.41           0.24
 
 
                  Benchmark Electronics, Inc. and Subsidiaries
 
                      Condensed Consolidated Balance Sheet
                                 March 31, 2001
                 (Amounts in Thousands, Except Per Share Data)
                                  (UNAUDITED)
 
     Assets
 
     Current assets:
      Cash                                            $22,646
      Accounts receivable, net                        235,280
      Inventories, net                                309,652
      Other current assets                             18,032
       Total current assets                           585,610
 
     Property, plant and equipment, net               129,053
     Other assets, net                                 18,069
     Goodwill, net                                    162,214
 
       Total assets                                  $894,946
 
     Liabilities and Shareholders' Equity
 
     Current liabilities:
      Current installments of other long-term debt    $21,134
      Accounts payable                                204,987
      Other current liabilities                        28,890
       Total current liabilities                      255,011
 
     Revolving line of credit                          73,000
     Convertible subordinated notes                    80,200
     Other long-term debt, excluding
      current installments                             61,716
     Other long-term liabilities                       14,963
 
     Shareholders' equity                             410,056
 
       Total liabilities and shareholders' equity    $894,946
 
 SOURCE  Benchmark Electronics, Inc.