EX-99.1 2 a06-4455_1ex99d1.htm EXHIBIT 99

Exhibit 99.1

 

Press Release

For More Information, Call:

 

GAYLA J. DELLY

 

 

CHIEF FINANCIAL OFFICER

 

February 7, 2006

(979) 849-6550

 

 

 

FOR IMMEDIATE RELEASE

 

BENCHMARK ELECTRONICS REPORTS SALES

AND EARNINGS FOR FOURTH QUARTER 2005

 

ANGLETON, TX, FEBRUARY 7, 2006 – Benchmark Electronics, Inc. (NYSE: BHE), a leading contract manufacturing provider, announced sales of $625 million for the quarter ended December 31, 2005, compared to $524 million for the same quarter last year. Fourth quarter net income was $24.7 million, or $0.57 per diluted share. In the comparable period last year, net income was $20.2 million, or $0.47 per diluted share.

 

Sales revenue for the year ended December 31, 2005 was $2.3 billion, a 12.8% increase from $2.0 billion in the previous year. Net income for the year ended December 31, 2005 was $80.6 million, compared to $71.0 million for the prior year. Diluted earnings per share was $1.88 for the year ended December 31, 2005, compared to $1.67 per share in the prior year.

 

“We continued to execute well throughout the fourth quarter and full year of 2005 resulting in a year of record revenues and earnings. We fully expect our momentum and level of execution to continue into 2006 and beyond,” stated Benchmark’s President and CEO Cary T. Fu.

 

Fourth Quarter 2005 Financial Highlights

 

•                  Operating margin for the fourth quarter was 4.65%.

•                  Cash flows provided by operating activities for the fourth quarter was $15 million.

•                  Cash and short-term investments balance at December 31, 2005 of $327 million.

•                  No debt outstanding.

•                  Accounts receivable balance at December 31, 2005 of $366 million; calculated days sales outstanding were 53 days.

•                  Inventory of $362 million at December 31, 2005; inventory turns were 6.4 times.

 

First Quarter and Full Year 2006 Guidance

 

Revenues for the first quarter of 2006 are expected to be between $590 million and $615 million. Diluted earnings per share for the first quarter are expected to be between $0.50 and $0.54, excluding restructuring charges and the impact of stock-based compensation expenses.

 


 

Revenues for the full year 2006 are expected to be between $2.47 billion and $2.54 billion. Diluted earnings per share for 2006 are expected to between $2.11 and $2.17, excluding restructuring charges and the impact of stock-based compensation expenses.

 

During 2006, the Company will continue to expand our low-cost capacity while realigning and further strengthening our global footprint to support continued business opportunities. Restructuring charges associated with these re-alignment efforts, primarily related to the closure of our UK facility, are estimated to be in the range of $3.5 million to $4.5 million pre-tax during 2006. The actual timing of such charges has yet to be determined, although it is expected that the majority of these charges will be recorded in the first half of 2006.

 

Benchmark currently expects fiscal year 2006 GAAP earnings per share to be $2.00 to $2.05 per diluted share which includes an estimated $0.06 - $0.07 per diluted share associated with restructuring charges to be incurred and $0.05 per share for stock-based compensation to be expensed in fiscal year 2006 under new accounting guidelines, SFAS 123R.

 

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 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, 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
December 31,

 

Year Ended
December 31,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

625,374

 

$

524,232

 

$

2,257,225

 

$

2,001,340

 

Cost of sales

 

580,307

 

484,489

 

2,095,623

 

1,847,573

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

45,067

 

39,743

 

161,602

 

153,767

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

16,015

 

15,504

 

62,322

 

61,108

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

29,052

 

24,239

 

99,280

 

92,659

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest expense

 

(92

)

(154

)

(330

)

(1,705

)

Other

 

2,176

 

596

 

6,864

 

3,199

 

Total other income, net

 

2,084

 

442

 

6,534

 

1,494

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

31,136

 

24,681

 

105,814

 

94,153

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

6,481

 

4,474

 

25,225

 

23,162

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

24,655

 

$

20,207

 

$

80,589

 

$

70,991

 

 

 

 

 

 

 

 

 

 

 

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

 

41,990

 

41,407

 

41,788

 

41,134

 

Incremental common shares attributable to exercise of outstanding dilutive options

 

904

 

1,213

 

1,065

 

1,331

 

Denominator for diluted earnings per share

 

42,894

 

42,620

 

42,853

 

42,465

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.59

 

$

0.49

 

$

1.93

 

$

1.73

 

Diluted

 

$

0.57

 

$

0.47

 

$

1.88

 

$

1.67

 

 


 

Benchmark Electronics, Inc. and Subsidiaries

 

Condensed Consolidated Balance Sheet

December 31, 2005

(Amounts in Thousands)

(UNAUDITED)

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

Cash and cash-equivalents

 

$

110,845

 

Short-term investments

 

215,960

 

Accounts receivable, net

 

365,568

 

Inventories, net

 

361,554

 

Other current assets

 

30,579

 

 

 

 

 

Total current assets

 

1,084,506

 

 

 

 

 

Property, plant and equipment, net

 

94,140

 

Other assets, net

 

6,784

 

Goodwill, net

 

112,978

 

 

 

 

 

Total assets

 

$

1,298,408

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

Accounts payable

 

$

371,887

 

Other current liabilities

 

66,256

 

 

 

 

 

Total current liabilities

 

438,143

 

 

 

 

 

Other long-term liabilities

 

14,146

 

 

 

 

 

Shareholders’ equity

 

846,119

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

1,298,408