Benchmark Electronics Reports Results For The Quarter Ended June 30, 2014 - KTUL.com - Tulsa, Oklahoma - News, Weather & Sports

Benchmark Electronics Reports Results For The Quarter Ended June 30, 2014

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SOURCE Benchmark Electronics, Inc.

ANGLETON, Texas, July 24, 2014 /PRNewswire/ -- Benchmark Electronics, Inc. (NYSE: BHE), a leading integrated contract manufacturing provider, today announced financial results for its second quarter.




Three Months Ended





June 30,



March 31,



June 30,




2014



2014



2013


Net sales (in millions)


$717



$639



$608


Net income (in millions)


$22



$19



$8


Net income – non-GAAP (in millions)


$23



$19



$17


Diluted EPS


$0.41



$0.35



$0.16


Diluted EPS – non-GAAP


$0.43



$0.35



$0.31


Operating margin (%)


3.8

%


3.5

%


2.1

%

Operating margin – non-GAAP (%)


4.1

%


3.6

%


3.5

%

"We executed very well during the quarter. Our continued focus on operational excellence enabled results for the second quarter to exceed our expectations as we convert our robust pipeline of new programs," said Gayla J. Delly, President and CEO. "The solid quarter demonstrates the level of performance we can achieve at current demand levels and provides visibility into our future potential as we continue to accelerate our pace and efficiency in new program introductions."

Second Quarter 2014 Highlights

  • Revenue of $717 million increased 12% from Q1 2014 and 18% from Q2 2013.
  • New program bookings were $120 million to $150 million.
  • Restructuring and integration and acquisition-related costs totaled $1.9 million.
  • Cash flows provided by operating activities were approximately $25 million.
  • Cash and cash equivalents balance was $402 million at June 30, 2014.
  • Accounts receivable was $499 million at June 30, 2014; calculated days sales outstanding were 63 days compared to 65 days at March 31, 2014 and 69 days at June 30, 2013.
  • Inventory was $421 million at June 30, 2014; inventory turns were 6.3 times compared to 5.3 at March 31, 2014 and 6.4 at June 30, 2013.
  • Repurchases of common shares totaled $7 million or 314,000 shares.
  • Non-GAAP operating margin was 4.1%.

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


June 30,


March 31,


June 30,



2014


2014


2013


Computers and related products for business







   enterprises

21

%

20

%

29

%

Industrial control equipment

29


29


29


Telecommunication equipment

29


27


23


Medical devices

11


11


12


Testing and instrumentation products

10


13


7



100

%

100

%

100

%

Third Quarter 2014 Outlook

  • Revenue between $670 and $700 million.
  • Diluted earnings per share between $0.38 and $0.42 (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 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 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. 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 uses a non-GAAP measure of net income and earnings per share that excludes certain items to better assess operating performance and to help investors compare our results with our previous guidance. This non-GAAP information 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 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" and similar expressions, and the negatives thereof, identify forward-looking statements. Our forward-looking statements may be deemed to include, among other things, the statement "provides visibility into our future potential as we continue to accelerate our pace and efficiency in new program introductions," our sales and diluted earnings per share (excluding special items) guidance for the third quarter of 2014, 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 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 such statements. Readers are advised to consult further disclosures on related subjects in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, 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



Six Months Ended




June 30,


March 31,


June 30,



June 30,




2014


2014


2013



2014


2013














Income from operations (GAAP)

$

27,144

$

22,432

$

12,783


$

49,576

$

26,776

Restructuring charges and integration












   and acquisition-related costs


1,907


2,109


5,667



4,016


6,109

Asset impairment charge and other


-


-


2,606



-


2,606

Thailand flood related items, net of insurance


-


(1,571)


-



(1,571)


-

Non-GAAP income from operations

$

29,051

$

22,970

$

21,056


$

52,021

$

35,491





















































Net income (GAAP)

$

22,150

$

19,125

$

8,457


$

41,275

$

19,944

Restructuring charges and integration












   and acquisition-related costs, net of tax


1,243


1,383


5,541



2,626


5,945

Asset impairment charge and other,












   net of tax


-


-


2,849



-


2,849

Thailand flood related items, net of insurance












   and tax


-


(1,263)


-



(1,263)


-

Non-GAAP net income

$

23,393

$

19,245

$

16,847


$

42,638

$

28,738



























Earnings per share: (GAAP)













Basic

$

0.41

$

0.36

$

0.16


$

0.77

$

0.37


Diluted

$

0.41

$

0.35

$

0.16


$

0.76

$

0.36














Earnings per share: (Non-GAAP)













Basic

$

0.43

$

0.36

$

0.31


$

0.79

$

0.53


Diluted

$

0.43

$

0.35

$

0.31


$

0.78

$

0.52














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













Basic


53,826


53,650


54,207



53,738


54,500


Diluted


54,405


54,277


54,500



54,394


54,897

 


Benchmark Electronics, Inc. and Subsidiaries


Consolidated Statements of Income

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)





Three Months Ended



Six Months Ended




June 30,



June 30,



2014


2013



2014


2013

Sales

$

716,868

$

607,522


$

1,356,212

$

1,149,966

Cost of sales


659,117


563,155



1,247,338


1,068,765


Gross profit


57,751


44,367



108,874


81,201

Selling, general and administrative expenses


28,700


23,311



56,853


45,710

Restructuring charges and integration










   and acquisition-related costs


1,907


5,667



4,016


6,109

Asset impairment charge and other


-


2,606



-


2,606

Thailand flood related items, net of insurance


-


-



(1,571)


-


Income from operations


27,144


12,783



49,576


26,776

Interest expense


(473)


(463)



(949)


(922)

Interest income


668


291



1,183


705

Other income (expense), net


99


(501)



125


(185)


Income before income taxes


27,438


12,110



49,935


26,374

Income tax expense


5,288


3,653



8,660


6,430


Net income

$

22,150

$

8,457


$

41,275

$

19,944












Earnings per share:











Basic

$

0.41

$

0.16


$

0.77

$

0.37


Diluted

$

0.41

$

0.16


$

0.76

$

0.36












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











Basic


53,826


54,207



53,738


54,500


Diluted


54,405


54,500



54,394


54,897

 

Benchmark Electronics, Inc. and Subsidiaries


Condensed Consolidated Balance Sheets

(in thousands)







June 30,


December 31,







2014


2013







(unaudited)



Assets






Current assets:







Cash and cash equivalents

$

401,869

$

345,555



Accounts receivable, net


499,479


559,763



Inventories, net


421,216


396,699



Other current assets


42,667


40,816





Total current assets


1,365,231


1,342,833


Long-term investments


9,710


9,921


Property, plant and equipment, net


190,686


185,319


Goodwill and other, net


115,850


119,298





Total assets

$

1,681,477

$

1,657,371










Liabilities and Shareholders' Equity






Current liabilities:







Current installments of capital lease obligations

$

628

$

582



Accounts payable


298,762


320,953



Accrued liabilities


78,284


76,842





Total current liabilities


377,674


398,377


Capital lease obligations, less current installments


9,194


9,521


Other long-term liabilities


23,751


22,440


Shareholders' equity


1,270,858


1,227,033





Total liabilities and shareholders' equity

$

1,681,477

$

1,657,371

 

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