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NYSEBHE
Benchmark Electronics Reports First Quarter Results
PR Newswire
ANGLETON, Texas

ANGLETON, Texas, April 23, 2015 /PRNewswire/ -- Benchmark Electronics, Inc. (NYSE: BHE), a leading integrated contract manufacturing provider, today announced financial results for the quarter ending March 31, 2015.




Three Months Ended





Mar 31,



Dec 31,



Mar 31,




2015



2014



2014


Net sales (in millions)


$621



$710



$639


Net income (in millions)


$14



$24



$19


Net income – non-GAAP (in millions)


$18



$23



$19


Diluted EPS


$0.27



$0.45



$0.35


Diluted EPS – non-GAAP


$0.34



$0.43



$0.35


Operating margin (%)


3.0

%


4.0

%


3.5

%

Operating margin – non-GAAP (%)


3.8

%


4.0

%


3.6

%

"I am pleased with the performance of our team in a challenging quarter," said Gayla J. Delly, Benchmark's President and CEO. "The team delivered first quarter revenues and earnings within our expectations even though industrial control demand headwinds were stronger than expected. Our operating margin improved 20 basis points year over year, driven by our ongoing focus on operational excellence and increased revenues from our growth markets. We believe we are well positioned to continue expanding operating margins throughout the year."

First Quarter 2015 Overview

  • Cash flows used in operating activities were $11 million.
  • Cash and cash equivalents balance was $384 million at March 31, 2015.
  • Repurchases of common shares totaled $16 million or 0.7 million shares.
  • New program bookings were $105 million to $125 million.
  • Accounts receivable was $491 million at March 31, 2015; calculated days sales outstanding were 71 days compared to 66 days at December 31, 2014 and 65 days at March 31, 2014.
  • Inventory was $427 million at March 31, 2015; inventory turns were 5.3 times compared to 6.5 at December 31, 2014 and 5.3 at March 31, 2014.
  • Restructuring charges and integration costs totaled $5 million.

First Quarter Industry Sector Update
The following table sets forth revenue by industry sector for the referenced quarters.



Mar 31,


Dec 31,


Mar 31,




2015


2014


2014


Industrial control equipment

32

%

32

%

29

%

Telecommunication equipment

27


29


27


Computers and related products

19


20


20


Medical devices

13


11


11


Testing and instrumentation products

9


8


13




100

%

100

%

100

%









Second Quarter 2015 Outlook

  • Revenue between $635 and $665 million.
  • Diluted earnings per share between $0.37 and $0.41 (excluding restructuring charges and integration costs).

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 the Company's website at www.bench.com.

About Benchmark Electronics, Inc.
Benchmark provides integrated manufacturing, design and engineering services to original equipment manufacturers of industrial control equipment (including equipment for the aerospace and defense industries), telecommunication equipment, computers and related products for business enterprises, medical devices, and testing and instrumentation products. Benchmark's global operations include facilities in seven countries, and its common shares trade on the New York Stock Exchange under the symbol BHE.

Non-GAAP Financial Measures
This press release includes financial measures for earnings and earnings per share that exclude certain items and therefore do not follow U.S. 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. Management discloses non-GAAP information to provide investors with additional information to analyze the Company's performance and underlying trends. Management uses non-GAAP measures of net income and earnings per share that exclude certain items in order to better assess operating performance and help investors compare results with our previous guidance. Our non-GAAP information is not necessarily comparable to non-GAAP information used by 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 press 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," "goals" and similar terms, and the negatives thereof, often identify forward-looking statements, which are not limited to historical facts. Our forward-looking statements include, among other things, the statement "we believe we are well positioned to continue expanding operating margins throughout the year", as well as other statements, express or implied, concerning: 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 these statements are based upon reasonable assumptions, they involve risks and uncertainties relating to our operations, markets and business environment generally. If one or more of these risks or uncertainties materialize, or 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 the Company assumes no obligation to update them. Readers are advised to consult further disclosures on related subjects, particularly in Item 1A, "Risk Factors" of the Company's Annual Report on Form 10-K for the year ended December 31, 2014, 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,


December 31,


March 31,





2015


2014


2014











Income from operations (GAAP)

$

18,708

$

28,653

$

22,432


Restructuring charges and integration costs


4,869


955


2,109


Gain on sale of subsidiary


-


(1,547)


-


Thailand flood-related items, net of insurance


-


-


(1,571)


Non-GAAP income from operations

$

23,577

$

28,061

$

22,970






































Net income (GAAP)

$

14,205

$

24,011

$

19,125


Restructuring charges and integration costs, net of tax


3,595


740


1,383


Gain on sale of subsidiary, net of tax


-


(1,547)


-


Thailand flood-related items, net of insurance and tax


-


-


(1,263)


Non-GAAP net income

$

17,800

$

23,204

$

19,245




















Earnings per share: (GAAP)









Basic

$

0.27

$

0.45

$

0.36



Diluted

$

0.27

$

0.45

$

0.35











Earnings per share: (Non-GAAP)









Basic

$

0.34

$

0.44

$

0.36



Diluted

$

0.34

$

0.43

$

0.35











Weighted-average number of shares used

 in calculating earnings per share:
















Basic


52,463


53,020


53,650



Diluted


53,045


53,609


54,277


 

Benchmark Electronics, Inc. and Subsidiaries









Consolidated Statements of Income


(Amounts in Thousands, Except Per Share Data)


(UNAUDITED)







Three Months Ended





March 31,




2015


2014


Sales

$

620,925

$

639,344


Cost of sales


569,146


588,221



Gross profit


51,779


51,123


Selling, general and administrative expenses


28,202


28,153


Restructuring charges and integration costs


4,869


2,109


Thailand flood-related items, net of insurance


-


(1,571)



Income from operations


18,708


22,432


Interest expense


(435)


(476)


Interest income


432


515


Other income (expense), net


(1,057)


26



Income before income taxes


17,648


22,497


Income tax expense


3,443


3,372



Net income

$

14,205

$

19,125









Earnings per share:







Basic

$

0.27

$

0.36



Diluted

$

0.27

$

0.35









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







Basic


52,463


53,650



Diluted


53,045


54,277


 

Benchmark Electronics, Inc. and Subsidiaries










Condensed Consolidated Balance Sheets

(in thousands)







March 31,


December 31,







2015


2014







(unaudited)



Assets






Current assets:







Cash and cash equivalents

$

383,596

$

427,376



Accounts receivable, net


490,686


520,389



Inventories


426,837


401,261



Other current assets


41,369


39,527





Total current assets


1,342,488


1,388,553


Long-term investments


1,012


1,008


Property, plant and equipment, net


187,049


190,180


Goodwill and other, net


98,858


99,148





Total assets

$

1,629,407

$

1,678,889










Liabilities and Shareholders' Equity






Current liabilities:







Current installments of capital lease obligations

$

701

$

676



Accounts payable


248,563


289,786



Accrued liabilities


63,364


68,636





Total current liabilities


312,628


359,098


Capital lease obligations, less current installments


8,665


8,845


Other long-term liabilities


19,512


19,906


Shareholders' equity


1,288,602


1,291,040





Total liabilities and shareholders' equity

$

1,629,407

$

1,678,889

 

SOURCE Benchmark Electronics, Inc.

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