Exhibit 99.1
Press Release
For More Information, Call:
GAYLA J. DELLY
CHIEF FINANCIAL OFFICER
(979) 849-6550
JULY 24, 2003
FOR IMMEDIATE RELEASE
BENCHMARK ELECTRONICS REPORTS
EARNINGS FOR SECOND QUARTER 2003
ANGLETON, TX, JULY 24, 2003- Benchmark Electronics, Inc., (NYSE: BHE) a leading contract manufacturing provider, announced sales revenue of $449 million for the quarter ended June 30, 2003, compared to $404 million in the same quarter of the prior year and $448 million in the previous quarter. Second quarter net income was $11.8 million, compared to $8.3 million in the same quarter of the prior year and $17.3 million in the previous quarter. Diluted earnings per share on a GAAP basis was $0.46 for the second quarter of 2003, compared to $0.33 for the second quarter of 2002 and $0.66 per share ($0.46 per share excluding a contract settlement gain)1 for the previous quarter.
"In many ways, Benchmark's second quarter performance exceeded our expectations. We improved our operational metrics, continued to realign our resources and leveraged our capacities effectively. Our second quarter new program bookings, quite impressively, were one of our highest ever," commented Cary T. Fu, President of Benchmark Electronics, Inc.
Second Quarter 2003 Financial Highlights
Third Quarter 2003 Guidance
$8.1 million ($5.5 million net of tax). Diluted earnings per share excluding the impact of the contract settlement gain was $0.46 for the quarter ending March 31, 2003 calculated as follows:
| Diluted earnings for the quarter ended March 31, 2003 | $ | 18,149 | ||
| Contract settlement gain, net of tax | (5,513 | ) | ||
| Diluted earnings excluding contract settlement gain | $ | 12,636 | ||
| Diluted earnings per share excluding contract settlement gain | $ | 0.46 | ||
| Weighted average shares outstanding for diluted earnings per share | 27,457 | |||
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, 2002 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, video/audio/entertainment products, industrial control equipment, testing and instrumentation products, and telecommunication equipment. Benchmark's global operations include facilities in eight countries. Benchmark's Common Stock trades on the New York Stock Exchange under the symbol BHE.
A conference call hosted by Benchmark management will be held today at 10:00am CDT 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.
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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, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 2003 | 2002 | 2003 | 2002 | |||||||||
| Net sales | $ | 448,948 | 404,375 | 897,418 | 733,563 | ||||||||
| Cost of sales | 412,024 | 373,573 | 824,889 | 677,886 | |||||||||
| Gross profit | 36,924 | 30,802 | 72,529 | 55,677 | |||||||||
| Selling, general and administrative expenses | 16,442 | 16,122 | 32,914 | 30,298 | |||||||||
| Contract settlement | — | — | (8,108 | ) | — | ||||||||
| Asset write-offs | — | 1,608 | — | 1,608 | |||||||||
| Operating income | 20,482 | 13,072 | 47,723 | 23,771 | |||||||||
| Other income (expense): | |||||||||||||
| Interest expense | (2,349 | ) | (2,777 | ) | (4,919 | ) | (5,691 | ) | |||||
| Other | (148 | ) | 2,607 | 668 | 3,179 | ||||||||
| Total other expense, net | (2,497 | ) | (170 | ) | (4,251 | ) | (2,512 | ) | |||||
| Income before income taxes | 17,985 | 12,902 | 43,472 | 21,259 | |||||||||
| Income tax expense | 6,233 | 4,644 | 14,389 | 7,653 | |||||||||
| Net income | $ | 11,752 | 8,258 | 29,083 | 13,606 | ||||||||
| Numerator for basic earnings per share — net income | $ | 11,752 | 8,258 | 29,083 | 13,606 | ||||||||
| Interest expense on 6% convertible debt, net of tax | 786 | — | 1,610 | — | |||||||||
| Numerator for diluted earnings per share | $ | 12,538 | 8,258 | 30,693 | 13,606 | ||||||||
| Denominator for basic earnings per share — weighted average number of common shares outstanding during the period | 24,644 | 23,654 | 24,577 | 21,719 | |||||||||
| Incremental common shares attributable to exercise of outstanding dilutive options | 786 | 1,037 | 868 | 866 | |||||||||
| Incremental common shares attributable to conversion of 6% convertible debt | 1,995 | — | 1,995 | — | |||||||||
| Denominator for diluted earnings per share | 27,425 | 24,691 | 27,440 | 22,585 | |||||||||
| Earnings per share: | |||||||||||||
| Basic | $ | 0.48 | 0.35 | 1.18 | 0.63 | ||||||||
| Diluted | 0.46 | 0.33 | 1.12 | 0.60 | |||||||||
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
June 30, 2003
(Amounts in Thousands)
(UNAUDITED)
| Assets | ||||||
| Current assets: | ||||||
| Cash | $ | 335,663 | ||||
| Accounts receivable, net | 192,332 | |||||
| Inventories, net | 185,822 | |||||
| Other current assets | 21,014 | |||||
| Total current assets | 734,831 | |||||
| Property, plant and equipment, net | 84,677 | |||||
| Other assets, net | 8,626 | |||||
| Goodwill, net | 116,743 | |||||
| Total assets | $ | 944,877 | ||||
| Liabilities and Shareholders' Equity | ||||||
| Current liabilities: | ||||||
| Current installments of other long-term debt | $ | 25,420 | ||||
| Accounts payable | 222,308 | |||||
| Other current liabilities | 63,665 | |||||
| Total current liabilities | 311,393 | |||||
| Convertible subordinated notes | 80,200 | |||||
| Other long-term debt, excluding current installments | 7,020 | |||||
| Other long-term liabilities | 6,941 | |||||
| Shareholders' equity | 539,323 | |||||
| Total liabilities and shareholders' equity | $ | 944,877 | ||||
