Exhibit 99.1
Press Release
For More Information, Call:
GAYLA J. DELLY CHIEF FINANCIAL OFFICER (979) 849-6550 | | April 21, 2005
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| | FOR IMMEDIATE RELEASE |
BENCHMARK ELECTRONICS REPORTS SALES
AND EARNINGS FOR FIRST QUARTER 2005
ANGLETON, TX, APRIL 21, 2005 – Benchmark Electronics, Inc., (NYSE: BHE) a leading contract manufacturing provider, announced sales revenue of $510 million for the quarter ended March 31, 2005, compared to $481 million for the same quarter last year. First quarter net income was $16.9 million, or $0.40 per diluted share. In the comparable period last year, net income was $15.2 million, or $0.36 per diluted share.
“Our first quarter results reflect revenue growth of 6% and net income growth of 11% year over year,” commented Cary T. Fu, President and CEO of Benchmark Electronics, Inc. “The first quarter results were excellent in light of the soft economic conditions seen recently in the technology marketplace. Our focus for the remainder of 2005 is on efficiently ramping our new programs in this challenging environment.”
First Quarter 2005 Financial Highlights
• Operating margin for the first quarter was 4.4%.
• Return on invested capital of 13.8%.
• Cash and short-term investments balance at March 31, 2005 of $344 million.
• No debt outstanding as of March 31, 2005.
• Accounts receivable were $267 million at March 31, 2005; calculated days sales outstanding were 47 days.
• Inventories increased by $39 million to $295 million; inventory turns were 6.4 times.
Second Quarter 2005 Guidance
• Revenue in the second quarter of 2005 is expected to be between $525 million and $550 million.
• Earnings per share for the second quarter of 2005 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, 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 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 (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.
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Benchmark Electronics, Inc. and Subsidiaries
Consolidated Statements of Income
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)
| | Three Months Ended March 31, | |
| | 2005 | | 2004 | |
| | | | | |
Net sales | | $ | 509,582 | | $ | 480,966 | |
Cost of sales | | 472,097 | | 443,809 | |
Gross profit | | 37,485 | | 37,157 | |
| | | | | |
Selling, general and administrative expenses | | 15,212 | | 15,721 | |
Operating income | | 22,273 | | 21,436 | |
| | | | | |
Other income (expense): | | | | | |
Interest expense | | (67 | ) | (765 | ) |
Other | | 670 | | 433 | |
Total other income (expense), net | | 603 | | (332 | ) |
| | | | | |
Income before income taxes | | 22,876 | | 21,104 | |
| | | | | |
Income tax expense | | 5,947 | | 5,909 | |
| | | | | |
Net income | | $ | 16,929 | | $ | 15,195 | |
| | | | | |
Denominator for basic earnings per share - weighted average number of common shares outstanding during the period | | 41,627 | | 40,954 | |
Incremental common shares attributable to exercise of outstanding dilutive options | | 1,081 | | 1,399 | |
Denominator for diluted earnings per share | | 42,708 | | 42,353 | |
| | | | | |
Earnings per share: | | | | | |
Basic | | $ | 0.41 | | $ | 0.37 | |
Diluted | | $ | 0.40 | | $ | 0.36 | |
| | | | | | | | |
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
March 31, 2005
(Amounts in Thousands)
(UNAUDITED)
Assets | | | |
| | | |
Current assets: | | | |
Cash and cash-equivalents | | $ | 90,225 | |
Short-term investments | | 253,335 | |
Accounts receivable, net | | 267,491 | |
Inventories, net | | 295,479 | |
Other current assets | | 28,552 | |
| | | |
Total current assets | | 935,082 | |
| | | |
Property, plant and equipment, net | | 80,433 | |
Other assets, net | | 6,623 | |
Goodwill, net | | 112,947 | |
| | | |
Total assets | | $ | 1,135,085 | |
| | | |
Liabilities and Shareholders’ Equity | | | |
| | | |
Current liabilities: | | | |
Accounts payable | | $ | 281,068 | |
Other current liabilities | | 74,582 | |
| | | |
Total current liabilities | | 355,650 | |
| | | |
Other long-term liabilities | | 8,887 | |
| | | |
Shareholders’ equity | | 770,548 | |
| | | |
Total liabilities and shareholders’ equity | | $ | 1,135,085 | |
| | | | | |