UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 8, 2000
BENCHMARK ELECTRONICS, INC.
(Exact name of registrant as specified in its charter)
TEXAS 1-10560 74-2211011
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
3000 TECHNOLOGY DRIVE, ANGLETON, TEXAS 77515
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (409) 849-6550
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ITEM 5. OTHER EVENTS.
Benchmark Electronics, Inc. today made the press release attached
hereto as Exhibit 99.1
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
The following material is filed as an exhibit to this Current Report
on Form 8-K.
EXHIBIT
NUMBER DESCRIPTION
------- -----------
99.1 Press Release dated February 8, 2000.
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S I G N A T U R E
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BENCHMARK ELECTRONICS, INC.
Dated: February 8, 2000 By: /s/ DONALD E. NIGBOR
Donald E. Nigbor
Treasurer
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EXHIBIT INDEX
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
99.1 Press Release dated February 8, 2000
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EXHIBIT 99.1
PRESS RELEASE
FOR MORE INFORMATION, CALL:
DONALD E. NIGBOR, PRESIDENT FEBRUARY 8, 2000
OR
CARY T. FU
EXECUTIVE VICE PRESIDENT
(409) 849-6550
FOR IMMEDIATE RELEASE
BENCHMARK ELECTRONICS REPORTS RECORD REVENUE
FOR THE QUARTER AND YEAR ENDED
DECEMBER 31, 1999
ANGLETON, TX, FEBRUARY 8, 2000 - Benchmark Electronics, Inc. (NYSE:BHE)
announced earnings of $1,293,000 (diluted earnings of 8 cents per share) on
record sales revenue of $338,801,000 for the quarter ended December 31, 1999, as
compared to earnings of $4,713,000 (diluted earnings of 38 cents per share) on
sales revenue of $143,738,000 for the comparable period of 1998. Cash earnings
per share for the quarter were $.19 on a fully diluted basis. Cash earnings per
share is calculated by adding back the goodwill amortization net of the tax
effect.
Benchmark's sales for the year ended December 31, 1999 were $877,839,000
as compared to sales of $524,065,000, an increase of 67% over sales a year ago.
For the year ended December 31, Benchmark earned $11,974,430 (diluted earnings
of 80 cents per share) during 1999 as compared to net income of $16,372,000
(diluted earnings of $1.35 per share) in 1998. Results for the quarter and the
year ended December 31, 1999 include the results of operations of AVEX
Electronics, Inc. and its subsidiaries and certain affiliates, which were
acquired by Benchmark on August 24, 1999, from the date of the acquisition.
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Donald E. Nigbor, president and CEO of Benchmark Electronics, Inc.
commented: "We are pleased with the progress we made during this past quarter.
Our people have shown unparalleled commitment to customer satisfaction during a
period of unprecedented growth and challenge. These efforts have generated
significant opportunities for new quotations for both existing and new
customers. Our recent program wins should ramp during the latter part of 2000
with significant growth in 2001."
In addition, the Company recorded a correction to previously reported
earnings for the third quarter of 1999 in order to reflect an extraordinary
charge of $1.296 million, net of tax, in that quarter, relating to the early
extinguishment of indebtedness that occurred as part of financing the AVEX
acquisition. As corrected, earnings after extraordinary items for the third
quarter of 1999 were $39,533, rather than the $1,336,221 previously reported.
QUARTER HIGHLIGHTS
o Fourth quarter revenue grew by 47% over the prior quarter.
o Accounts receivable decreased by $33 million in the fourth quarter to
$196 million.
o Inventories increased by $13 million in the fourth quarter to $214
million compared to $201 million at the end of September. The primary
causes for increased inventories were the increase of hub inventories
and the ramping of new programs.
o Several new programs were booked--most significantly a medical customer
selected Benchmark as its' manufacturing solution and a computer
customer awarded Benchmark a new program.
o The Guadalajara, Mexico operation has moved to the new building with a
total of approximately 160,000 square feet.
o Customer focus at acquisition sites has improved and is evidenced by
recent program wins.
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
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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 8-K dated August 24, 1999 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 a leading independent provider of
electronics manufacturing and engineering services to original equipment
providers in the telecommunication, enterprise computer and peripherals,
high-end video/audio/entertainment, industrial control, testing and
instrumentation, computer, and medical device markets. Benchmark's global
operations include 14 facilities in 8 countries. Benchmark's Common Stock trades
on the New York Stock Exchange under the symbol BHE.
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BENCHMARK ELECTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------------------------- -------------------------------
1999 1998 1999 1998
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
Net sales .................................................. $ 338,801,345 143,737,769 877,838,540 524,065,077
Cost of sales .............................................. 316,579,982 129,157,944 810,309,375 472,354,251
Gross profit .......................................... 22,221,363 14,579,825 67,529,165 51,710,826
Selling, general and administrative expenses ............... 13,207,308 4,922,129 32,476,575 17,680,338
Amortization of goodwill ................................... 2,980,504 909,711 6,429,575 3,310,661
Operating income ...................................... 6,033,551 8,747,985 28,623,015 30,719,827
Other income (expense):
Interest expense ...................................... (4,756,231) (1,030,018) (9,696,301) (4,393,528)
Other ................................................. 283,672 151,337 1,349,764 563,738
Total other expense, net ................................... (4,472,559) (878,681) (8,346,537) (3,829,790)
Income before income taxes and extraordinary item ..... 1,560,992 7,869,304 20,276,478 26,890,037
Income tax expense ......................................... 267,785 3,156,543 7,005,360 10,517,567
Income before extraordinary item ...................... 1,293,207 4,712,761 13,271,118 16,372,470
Extraordinary item - loss on extinguishment of debt ........ -- -- (1,296,688) --
Net income ............................................ $ 1,293,207 4,712,761 11,974,430 16,372,470
============= ============= ============= =============
Earnings per share:
Basic ................................................. $ 0.08 0.41 0.85 1.41
============= ============= ============= =============
Diluted ............................................... 0.08 0.38 0.80 1.35
============= ============= ============= =============
Weighted average number of shares outstanding:
Basic ................................................. 16,399,126 11,618,865 14,081,235 11,594,271
============= ============= ============= =============
Diluted ............................................... 16,849,459 12,499,844 15,009,842 12,098,349
============= ============= ============= =============
</TABLE>
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