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Exhibit 99.1
Press Release
For More Information, Call:
GAYLA J. DELLY
CHIEF FINANCIAL OFFICER
(979) 849-6550 | | October 21, 2004 |
FOR IMMEDIATE RELEASE
BENCHMARK ELECTRONICS REPORTS RECORD SALES
AND RECORD EARNINGS FOR THIRD QUARTER 2004
ANGLETON, TX, OCTOBER 21, 2004—Benchmark Electronics, Inc., (NYSE: BHE) a leading contract manufacturing provider, announced sales revenue of $505 million for the quarter ended September 30, 2004, compared to $455 million for the same quarter last year. Third quarter net income was $18.0 million, or $0.43 per diluted share. In the comparable period last year, net income was $12.9 million, or $0.32 per diluted share.
"This quarter was once again challenging and it was rewarding to see the performance of the Benchmark team. We have expanded existing relationships, added new customers and ramped programs at a strong pace this year and continued to deliver strong results," commented Cary T. Fu, President and CEO of Benchmark Electronics, Inc.
Third Quarter 2004 Financial Highlights
- •
- Operating margin improved slightly to 4.75%.
- •
- Return on invested capital of 14.0%.
- •
- Cash balance at September 30, 2004 of $312 million.
- •
- No bank debt outstanding as of September 30, 2004.
- •
- Accounts receivable were $260 million at September 30, 2004; calculated days sales outstanding were 46 days.
- •
- Inventories increased by $13 million to $290 million; inventory turns were 6.4 times.
Fourth Quarter 2004 Guidance
- •
- Revenue in the fourth quarter of 2004 is expected to be between $505 million and $530 million.
- •
- Earnings per share for the fourth quarter of 2004 are expected to be $0.41 to $0.45 per diluted share.
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, 2003 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 Stock trades on the New York Stock Exchange under the symbol BHE.
A conference call hosted by Benchmark management will be held today at 10:00 am 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 atwww.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
September 30,
| | Nine Months Ended
September 30,
| |
|---|
| | 2004
| | 2003
| | 2004
| | 2003
| |
|---|
| Net sales | | $ | 504,750 | | $ | 455,352 | | $ | 1,477,108 | | $ | 1,352,770 | |
| Cost of sales | | | 466,232 | | | 418,382 | | | 1,363,084 | | | 1,243,271 | |
| | |
| |
| |
| |
| |
| | | Gross profit | | | 38,518 | | | 36,970 | | | 114,024 | | | 109,499 | |
Selling, general and administrative expenses |
|
|
14,553 |
|
|
16,330 |
|
|
45,604 |
|
|
49,244 |
|
| Contract settlement | | | — | | | — | | | — | | | (8,108 | ) |
| | |
| |
| |
| |
| |
| | | Operating income | | | 23,965 | | | 20,640 | | | 68,420 | | | 68,363 | |
| Other income (expense): | | | | | | | | | | | | | |
| | Interest expense | | | (392 | ) | | (1,976 | ) | | (1,551 | ) | | (6,895 | ) |
| | Other | | | 849 | | | 967 | | | 2,603 | | | 1,635 | |
| | |
| |
| |
| |
| |
| Total other income (expense), net | | | 457 | | | (1,009 | ) | | 1,052 | | | (5,260 | ) |
| | |
| |
| |
| |
| |
| | | Income before income taxes | | | 24,422 | | | 19,631 | | | 69,472 | | | 63,103 | |
| Income tax expense | | | 6,389 | | | 6,687 | | | 18,688 | | | 21,076 | |
| | |
| |
| |
| |
| |
| | | Net income | | $ | 18,033 | | $ | 12,944 | | $ | 50,784 | | $ | 42,027 | |
| | |
| |
| |
| |
| |
| Numerator for basic earnings per share — net income | | $ | 18,033 | | $ | 12,944 | | $ | 50,784 | | $ | 42,027 | |
| Interest expense on 6% convertible debt, net of tax | | | — | | | 570 | | | — | | | 2,187 | |
| | |
| |
| |
| |
| |
| Numerator for diluted earnings per share | | $ | 18,033 | | $ | 13,514 | | $ | 50,784 | | $ | 44,214 | |
| | |
| |
| |
| |
| |
| Denominator for basic earnings per share — weighted average number of common shares outstanding during the period | | | 41,123 | | | 38,074 | | | 41,042 | | | 37,273 | |
| Incremental common shares attributable to exercise of outstanding dilutive options | | | 1,190 | | | 1,439 | | | 1,345 | | | 1,035 | |
| Incremental common shares attributable to conversion of 6% convertible debt | | | — | | | 2,147 | | | — | | | 2,706 | |
| | |
| |
| |
| |
| |
| Denominator for diluted earnings per share | | | 42,313 | | | 41,660 | | | 42,387 | | | 41,014 | |
| | |
| |
| |
| |
| |
| Earnings per share: | | | | | | | | | | | | | |
| | Basic | | $ | 0.44 | | $ | 0.34 | | $ | 1.24 | | $ | 1.13 | |
| | |
| |
| |
| |
| |
| | Diluted | | $ | 0.43 | | $ | 0.32 | | $ | 1.20 | | $ | 1.08 | |
| | |
| |
| |
| |
| |
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
September 30, 2004
(Amounts in Thousands)
(UNAUDITED)
| Assets | | | |
Current assets: |
|
|
|
| | Cash | | $ | 311,693 |
| | Accounts receivable, net | | | 259,705 |
| | Inventories, net | | | 289,800 |
| | Other current assets | | | 30,104 |
| | |
|
| | | Total current assets | | | 891,302 |
Property, plant and equipment, net |
|
|
71,437 |
| Other assets, net | | | 5,824 |
| Goodwill, net | | | 113,474 |
| | |
|
| | | Total assets | | $ | 1,082,037 |
| | |
|
| Liabilities and Shareholders' Equity | | | |
Current liabilities: |
|
|
|
| | Current installments of other long-term debt | | $ | 15 |
| | Accounts payable | | | 268,847 |
| | Other current liabilities | | | 82,215 |
| | |
|
| | | Total current liabilities | | | 351,077 |
Other long-term debt, excluding current installments |
|
|
— |
| Other long-term liabilities | | | 9,114 |
Shareholders' equity |
|
|
721,846 |
| | |
|
| | | Total liabilities and shareholders' equity | | $ | 1,082,037 |
| | |
|
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