EX-99.1 2 Ex_99.1.htm EXHIBIT 99.1  

 

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

BENCHMARK ELECTRONICS REPORTS RESULTS FOR THE

QUARTER AND YEAR ENDED DECEMBER 31, 2013

 

ANGLETON, TX, FEBRUARY 4, 2014 – Benchmark Electronics, Inc. (NYSE: BHE), a leading integrated contract manufacturing provider, today announced financial results for the fourth quarter and year which ended December 31, 2013.

 

  

  

  

Three Months Ended

  

  

  

  

December 31,

  

  

September 30,

  

  

December 31,

  

  

  

2013 

  

  

2013 

  

  

2012 

  

Net sales (in millions)

  

$757

  

  

$600

  

  

$634

  

Net income (in millions)

  

$67

  

  

$24

  

  

$18

  

Net income – non-GAAP (in millions)

  

$24

  

  

$17

  

  

$18

  

Diluted EPS

  

$1.24

  

  

$0.43

  

  

$0.33

  

Diluted EPS – non-GAAP

  

$0.43

  

  

$0.31

  

  

$0.33

  

Operating margin (%)

  

 8.0 

%

  

 4.9 

%

  

 3.9 

%

Operating margin – non-GAAP (%)

  

 4.1 

%

  

 3.5 

%

  

 3.7 

%

 

  

  

  

Year Ended

  

  

  

  

December 31,

  

  

  

2013 

  

2012 

  

Net sales (in millions)

  

$2,506

  

$2,468

  

Net income (in millions)

  

$111

  

$57

  

Net income – non-GAAP (in millions)

  

$69

  

$68

  

Diluted EPS

  

$2.03

  

$1.00

  

Diluted EPS – non-GAAP

  

$1.26

  

$1.21

  

Operating margin (%)

  

 4.6 

%

 3.1 

%

Operating margin – non-GAAP (%)

  

 3.5 

%

 3.5 

%

 

“We completed 2014 with a robust fourth quarter and year-over-year growth. Revenue and earnings exceeded our fourth quarter expectations with growth driven organically by revenue from new programs as well as revenue contributions from recent acquisitions,” said Gayla J. Delly, the Company’s President and CEO. “Strong revenues combined with operating discipline allowed us to achieve an operating margin of 4.1% for the quarter. We see continued strength in our pipeline of opportunities and are optimistic about the long-term growth of the Company.”

 

Fourth Quarter 2013 Highlights

·         Revenue of $757 million increased 26% from Q3 2013.

·         New program bookings in Q4 2013 were $150 million to $180 million.

·         Restructuring and integration and acquisition-related costs totaled $2 million.

·         Thailand flood related items includes insurance recoveries of $31 million including $11 million for property, plant and equipment losses and $20 million for inventory and business interruption losses. The recovery process with our insurance carriers is largely complete and we expect final resolution in the first quarter of 2014.   

 

·         Cash flows used in operating activities for Q4 2013 were approximately $1 million, which includes approximately $20 million of Thailand flood insurance recoveries for inventory and business interruption losses.

·         Cash and cash equivalents balance was $346 million at December 31, 2013.

·         Accounts receivable was $560 million at December 31, 2013; calculated days sales outstanding were 67 days compared to 64 days at September 30, 2013 and 65 days at December 31, 2012.

·         Inventory was $397 million at December 31, 2013; inventory turns were 7.0 times compared to 5.6 at September 30, 2013 and 7.3 at December 31, 2012.

·         Repurchases of common shares for the fourth quarter totaled $10 million or 462 thousand  shares. 

·         Non-GAAP operating margin for the fourth quarter was 4.1%.

 

Fourth Quarter Industry Sector Update

The following table sets forth revenue by industry sector for the quarters ended December 31, 2013, September 30, 2013 and December 31, 2012.

 

  

  

December 31,

  

September 30,

  

December 31,

  

  

  

2013 

  

2013 

  

2012 

  

Computers and related products for business

  

  

  

  

  

  

  

enterprises

 32 

%

 30 

%

 33 

%

Industrial control equipment

 27 

  

 31 

  

 27 

  

Telecommunication equipment

 24 

  

 20 

  

 25 

  

Medical devices

 10 

  

 12 

  

 10 

  

Testing and instrumentation products

 7 

  

 7 

  

 5 

  

  

  

 100 

%

 100 

%

 100 

%

 

First Quarter 2014 Outlook 

·         Revenue between $630 and $660 million.

·         Diluted earnings per share between $0.29 and $0.34 (excluding restructuring, integration 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 facilities in seven countries. Benchmark’s Common Shares trade on the New York Stock Exchange under the symbol BHE.

 

For More Information, Please Contact:

Lisa K. Weeks, VP of Strategy & Investor Relations

979-849-6550 (ext. 1361) or lisa.weeks@bench.com

 

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 statements “we see continued strength in our pipeline of opportunities and are optimistic about the long-term growth of the Company” and “the recovery process with our insurance carriers is largely complete and we expect final resolution in the first quarter of 2014”, our sales and diluted earnings per share (excluding special items) guidance for the first quarter of 2014, 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

  

  

  

  

  

  

  

  

  

  

  

Consolidated Statements of Income

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)

  

  

  

  

Three Months Ended

  

  

Year Ended

  

  

  

December 31,

  

  

December 31,

  

  

2013 

  

2012 

  

  

2013 

  

2012 

Sales

$

 756,843 

$

 633,933 

  

$

 2,506,467 

$

 2,468,150 

Cost of sales

  

 697,000 

  

 588,474 

  

  

 2,319,983 

  

 2,291,412 

  

Gross profit

  

 59,843 

  

 45,459 

  

  

 186,484 

  

 176,738 

Selling, general and administrative expenses

  

 29,120 

  

 22,218 

  

  

 99,331 

  

 89,951 

Restructuring charges and integration

  

  

  

  

  

  

  

  

  

   and acquisition-related costs

  

 2,025 

  

 1,427 

  

  

 9,348 

  

 2,200 

Asset impairment charge and other

  

 - 

  

 - 

  

  

 2,606 

  

 - 

Thailand flood related items, net of insurance

  

 (31,577) 

  

 (2,770) 

  

  

 (41,325) 

  

 9,028 

  

Income from operations

  

 60,275 

  

 24,584 

  

  

 116,524 

  

 75,559 

Interest expense

  

 (531) 

  

 (490) 

  

  

 (1,934) 

  

 (1,580) 

Interest income

  

 691 

  

 371 

  

  

 1,688 

  

 1,306 

Other income (expense), net

  

 (661) 

  

 58 

  

  

 (101) 

  

 154 

  

Income before income taxes

  

 59,774 

  

 24,523 

  

  

 116,177 

  

 75,439 

Income tax expense (benefit)

  

 (7,715) 

  

 6,408 

  

  

 5,018 

  

 18,832 

  

Net income

$

 67,489 

$

 18,115 

  

$

 111,159 

$

 56,607 

  

  

  

  

  

  

  

  

  

  

  

Earnings per share:

  

  

  

  

  

  

  

  

  

  

Basic

$

 1.26 

$

 0.33 

  

$

 2.05 

$

 1.01 

  

Diluted

$

 1.24 

$

 0.33 

  

$

 2.03 

$

 1.00 

  

  

  

  

  

  

  

  

  

  

  

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

  

  

  

  

  

  

  

  

  

  

Basic

  

 53,773 

  

 55,038 

  

  

 54,213 

  

 56,320 

  

Diluted

  

 54,327 

  

 55,256 

  

  

 54,779 

  

 56,634 
 

 

Benchmark Electronics, Inc. and Subsidiaries

  

  

  

  

  

  

  

  

  

Condensed Consolidated Balance Sheets

(in thousands)

  

  

  

  

  

  

December 31,

  

December 31,

  

  

  

  

  

  

2013 

  

2012 

  

  

  

  

  

  

(unaudited)

  

  

Assets

  

  

  

  

  

Current assets:

  

  

  

  

  

  

Cash and cash equivalents

$

 345,555 

$

 384,579 

  

  

Accounts receivable, net

  

 559,763 

  

 459,081 

  

  

Inventories, net

  

 396,699 

  

 324,041 

  

  

Other current assets

  

 40,816 

  

 46,490 

  

  

  

  

Total current assets

  

 1,342,833 

  

 1,214,191 

  

Long-term investments

  

 9,921 

  

 10,324 

  

Property, plant and equipment, net

  

 185,319 

  

 176,104 

  

Goodwill and other, net

  

 119,298 

  

 100,858 

  

  

  

  

Total assets

$

 1,657,371 

$

 1,501,477 

  

  

  

  

  

  

  

  

  

Liabilities and Shareholders’ Equity

  

  

  

  

  

Current liabilities:

  

  

  

  

  

  

Current installments of capital lease obligations

$

 582 

$

 497 

  

  

Accounts payable

  

 320,953 

  

 260,622 

  

  

Accrued liabilities

  

 76,842 

  

 69,396 

  

  

  

  

Total current liabilities

  

 398,377 

  

 330,515 

  

Capital lease obligations, less current installments

  

 9,521 

  

 10,103 

  

Other long-term liabilities

  

 22,440 

  

 21,334 

  

Shareholders’ equity

  

 1,227,033 

  

 1,139,525 

  

  

  

  

Total liabilities and shareholders’ equity

$

 1,657,371 

$

 1,501,477