UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 25, 2013
BENCHMARK ELECTRONICS, INC.
(Exact name of registrant as specified in its charter)
| Texas |
1-10560 |
74-2211011 |
|
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
3000 Technology Drive, Angleton, Texas 77515
(Address of principal executive offices) (Zip code)
Registrant’s telephone number, including area code: (979) 849-6550
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
| On April 25, 2013, Benchmark Electronics, Inc. issued a press release announcing results for the quarter ended March 31, 2013. A copy of the press release is attached as Exhibit 99.1 hereto and is hereby incorporated herein by reference. The information in this Form 8-K is being furnished under Item 2.02 and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. |
Item 9.01. Financial Statements and Exhibits.
| (d) Exhibits | |
| Exhibit 99.1 | Press release dated April 25, 2013 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BENCHMARK ELECTRONICS, INC. | ||
| Dated: April 25, 2013 | By: /s/ Donald F. Adam | |
| Donald F. Adam Chief Financial Officer | ||
EXHIBITS INDEX
Exhibit Number |
Description |
| Exhibit 99.1 | Press release dated April 25, 2013 |
Exhibit 99.1
FOR IMMEDIATE RELEASE
BENCHMARK ELECTRONICS REPORTS RESULTS FOR THE
QUARTER ENDED MARCH 31, 2013
ANGLETON, TX, APRIL 25, 2013 – 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.
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 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 | ||||