EX-99.1 2 a05-13415_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Press Release

For More Information, Call:

 

GAYLA J. DELLY

 

 

CHIEF FINANCIAL OFFICER

 

July 21, 2005

(979) 849-6550

 

 

 

FOR IMMEDIATE RELEASE

 

BENCHMARK ELECTRONICS REPORTS SALES

AND EARNINGS FOR SECOND QUARTER 2005

 

ANGLETON, TX, JULY 21, 2005 – Benchmark Electronics, Inc., (NYSE: BHE) a leading contract manufacturing provider, announced sales revenue of $561 million for the quarter ended June 30, 2005, compared to $491 million for the same quarter last year.  Second quarter net income was $18.7 million, or $0.44 per diluted share. In the comparable period last year, net income was $17.6 million, or $0.42 per diluted share.

 

“Our second quarter results reflect revenue growth of 14% driven by the significant level of new program production,” commented Cary T. Fu, President and CEO of Benchmark Electronics, Inc. “We are proud of the excellent results our teams delivered, driven by our intense focus on customer satisfaction.  We expect strong growth and opportunities in the second half of 2005. “

 

Second Quarter 2005 Financial Highlights

 

•                  Operating margin for the second quarter was 4.1%, impacted by a combination of product pricing and mix as well as realignment costs of approximately $0.6 million.  When these realignment costs are excluded, on a non-GAAP basis the operating margin was 4.3%.

•                  Return on invested capital of 13.1%.

•                  Cash and short-term investments balance at June 30, 2005 of $287 million.

•                  No debt outstanding as of June 30, 2005.

•                  Accounts receivable increased by $43 million during the quarter to $310 million; calculated days sales outstanding were 50 days.

•                  Inventories increased by $17 million during the quarter to $313 million; inventory turns were 6.7 times.

•                  Working capital increased associated with our organic growth and the high level of demand from our customers in the last month of the quarter.

 

Third Quarter 2005 Guidance

 

•                  Revenue in the third quarter of 2005 is expected to be between $555 million and $580 million.

•                  Earnings per share for the third quarter of 2005 are expected to be $0.44 to $0.48 per diluted share.

 


 

Non-GAAP Financial Measures

 

This press release includes financial measures that exclude certain items and therefore are not in accordance with generally accepted accounting principles (GAAP). By disclosing this non-GAAP information, management intends to provide investors with additional information to further analyze the company’s performance and underlying trends and to help investors compare our results with our previous guidance.

 

Non-GAAP information is not necessarily comparable to 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.  Although the Company 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.

 

###

 


 

Benchmark Electronics, Inc. and Subsidiaries

 

Consolidated Statements of Income

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)

 

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

560,817

 

$

491,392

 

$

1,070,399

 

$

972,358

 

Cost of sales

 

522,071

 

453,043

 

994,168

 

896,852

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

38,746

 

38,349

 

76,231

 

75,506

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

15,478

 

15,330

 

30,690

 

31,051

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

23,268

 

23,019

 

45,541

 

44,455

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest expense

 

(85

)

(394

)

(152

)

(1,159

)

Other

 

1,956

 

1,321

 

2,626

 

1,754

 

Total other income (expense), net

 

1,871

 

927

 

2,474

 

595

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

25,139

 

23,946

 

48,015

 

45,050

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

6,441

 

6,390

 

12,388

 

12,299

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

18,698

 

$

17,556

 

$

35,627

 

$

32,751

 

 

 

 

 

 

 

 

 

 

 

Denominator for basic earnings per share - weighted average number of common shares outstanding during the period

 

41,707

 

41,047

 

41,667

 

41,001

 

Incremental common shares attributable to exercise of outstanding dilutive options

 

956

 

1,121

 

1,043

 

1,325

 

Denominator for diluted earnings per share

 

42,663

 

42,168

 

42,710

 

42,326

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.45

 

$

0.43

 

$

0.86

 

$

0.80

 

Diluted

 

$

0.44

 

$

0.42

 

$

0.83

 

$

0.77

 

 


 

Benchmark Electronics, Inc. and Subsidiaries

 

Condensed Consolidated Balance Sheet

June 30, 2005

(Amounts in Thousands)

(UNAUDITED)

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

Cash and cash-equivalents

 

$

70,118

 

Short-term investments

 

217,275

 

Accounts receivable, net

 

310,238

 

Inventories, net

 

312,833

 

Other current assets

 

31,970

 

 

 

 

 

Total current assets

 

942,434

 

 

 

 

 

Property, plant and equipment, net

 

80,215

 

Other assets, net

 

6,485

 

Goodwill, net

 

112,975

 

 

 

 

 

Total assets

 

$

1,142,109

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

Accounts payable

 

$

265,645

 

Other current liabilities

 

74,213

 

 

 

 

 

Total current liabilities

 

339,858

 

 

 

 

 

Other long-term liabilities

 

9,084

 

 

 

 

 

Shareholders’ equity

 

793,167

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

1,142,109