EXHIBIT 99.1
PRESS RELEASE
FOR MORE INFORMATION, CALL:
CARY T. FU
EXECUTIVE VICE PRESIDENT
OR
GAYLA J. DELLY
VICE PRESIDENT FINANCE OCTOBER 25, 2000
(979) 849-6550
FOR IMMEDIATE RELEASE
BENCHMARK ELECTRONICS REPORTS RECORD SALES
AND RECORD EARNINGS FOR THE QUARTER ENDED
SEPTEMBER 30, 2000
ANGLETON, TX, OCTOBER 25, 2000 - Benchmark Electronics, Inc. (NYSE: BHE)
announced record earnings of $6.2 million (diluted earnings of 32 cents per
share) on record sales revenue of $460 million for the quarter ended September
30, 2000 - a $53 million sequential quarterly increase in revenue over revenue
of $407 million and earnings of $3.6 million (diluted earnings of 21 cents per
share) for the quarter ended June 30, 2000. Cash earnings per share on a fully
diluted basis were 42 cents per share for the quarter ended September 30, 2000
compared to 33 cents per share for the prior quarter.
Donald E. Nigbor, president and CEO of Benchmark Electronics, Inc. commented:
"Our results exceeded expectations this quarter mainly due to the ramping and
acceleration of new programs. The diversification of our customer base has
allowed for strong performance and a stable base for continued growth for the
upcoming year. The challenges we face during the upcoming quarters will be to
continue to monitor our start up costs associated with new programs and the
timing and acceleration levels of revenues from new programs."
QUARTER HIGHLIGHTS
o We have been awarded two major customer commitments since last quarter.
One is the expansion of existing business with a test and
instrumentation customer for the complete complex system build. The
second is a PCB
<PAGE>
PR October 25, 2000 Page 2
assembly program from a new customer that is a leader in optical
systems. Both projects are anticipated to ramp during FY 2001.
o Third quarter revenue increased $53 million (13% increase) over the
previous quarter ended June 30, 2000.
o Third quarter net income increased by $2.6 million (73% increase) over
the prior quarter's net income, with gross margin improving to 7.4%
from 7.3% and S,G & A increased to 3.4% from 3.3% over last quarter.
These changes reflect the impact of increased capacity utilization and
the increased revenues, offset slightly by the start-up costs of new
and ramping programs.
o During August, the Company completed an offering of 3.162 million
shares of common stock at a price of $38 per share. The net proceeds
from this offering of $113 million were used to repay outstanding
indebtedness under the revolving line of credit.
o The Company has expanded its available credit under its revolving line
of credit to $175 million.
o Accounts receivable increased by $16 million over the previous quarter
to $257 million primarily due to increased sales. Days sales
outstanding in receivables improved to 50 days from 53 days.
o Inventories increased by $40 million over the previous quarter to $317
million. Inventory turns were unchanged at 5.4 times per year. The
primary causes for the increased inventories continue to be the ramping
of new programs and the increases in hub and component inventories
driven by customer requirements and market conditions.
o In order to support the continued strong demand on the East Coast, we
have recently acquired a business in Manassas, Virginia and leased a
new facility in Mansfield, Massachusetts. Each facility is
approximately 40,000 square feet. Both facilities will be ramping
production during the next two quarters.
o We closed the previously announced sale of our Swedish operating
assets.
o The results of operations for the third quarter of 2000 include a full
quarter of operating results of the business acquired by the Company on
August 24, 1999.
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PR October 25, 2000 Page 3
This news release contains forward-looking statements based on current
expectations, forecasts and assumptions that involve risks and
uncertainties that could cause actual outcomes and results to differ
materially. These risks and uncertainties include component
availability and cost, risk of price fluctuation, reliance on major
customers, fluctuations in operating results, changes in technology,
competition, the ability to manage rapid growth, the ability to manage
integration of acquired operations, risks associated with international
sales and operations, interest rate risk, environmental regulations,
litigation, market risk, segment risk, the ability to retain key
personnel and the ability to maintain our technological and
manufacturing process expertise. For a further list and description of
risks and uncertainties, see the reports filed by Benchmark with the
Securities and Exchange Commission, specifically forms 8-K, 10-Q, S-3
and 10-K. Benchmark disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Benchmark Electronics, Inc. is in the business of manufacturing
electronics and provides its services to original equipment manufacturers
of telecommunication equipment, computers and related products for
business enterprises, video/audio/entertainment products, industrial
control equipment, testing and instrumentation products, personal
computers and medical devices. Benchmark's global operations include 14
facilities in six 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 10:30 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 at WWW.BENCH.COM.
###
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PR October 25, 2000 Page 4
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999 2000 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Sales ........................................ $ 459,540 229,870 1,215,266 539,037
Cost of sales ................................ 425,640 216,106 1,128,016 493,729
---------- ---------- ---------- ----------
Gross profit .............................. 33,900 13,764 87,250 45,308
Selling, general and administrative
expenses .................................... 15,523 8,642 41,636 19,269
Amortization of goodwill ..................... 3,096 1,630 9,416 3,449
---------- ---------- ---------- ----------
Income from operations .................... 15,281 3,492 36,198 22,590
Other income (expense):
Interest expense .......................... (5,638) (2,625) (18,251) (4,940)
Other ..................................... (540) 1,116 (359) 1,066
---------- ---------- ---------- ----------
Total other expense, net .................... (6,178) (1,509) (18,610) (3,874)
---------- ---------- ---------- ----------
Income before income taxes and
extraordinary item ....................... 9,103 1,983 17,588 18,716
Income tax expense ........................... 2,867 647 5,769 6,738
---------- ---------- ---------- ----------
Income before extraordinary item .......... 6,236 1,336 11,819 11,978
---------- ---------- ---------- ----------
Extraordinary item - loss on
extinguishment of debt ...................... -- (1,297) -- (1,297)
---------- ---------- ---------- ----------
Net income ................................ $ 6,236 39 11,819 10,681
========== ========== ========== ==========
Earnings per share:
Basic ..................................... $ 0.34 0.00 0.70 0.80
========== ========== ========== ==========
Diluted ................................... 0.32 0.00 0.65 0.74
========== ========== ========== ==========
Weighted average number of shares outstanding:
Basic .................................... 18,189 15,626 16,914 13,360
========== ========== ========== ==========
Diluted .................................. 19,770 16,812 18,148 14,448
========== ========== ========== ==========
</TABLE>
<PAGE>
PR October 25, 2000 Page 5
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
September 30, 2000
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)
ASSETS
Current assets:
Cash ............................................ $ 23,740
Accounts receivable, net ........................ 257,378
Inventories, net ................................ 317,298
Other current assets ............................ 23,186
--------
Total current assets ......................... 621,602
Property, plant and equipment, net ................. 128,581
Other assets, net .................................. 25,450
Goodwill, net ...................................... 164,431
--------
Total assets ................................. $940,064
========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current installments of other long-term debt .... $ 17,519
Other current liabilities ....................... 302,812
--------
Total current liabilities .................... 320,331
Revolving line of credit ........................... 56,500
Convertible subordinated notes ..................... 80,200
Other long-term debt, excluding current installments 67,600
Other long-term liabilities ........................ 12,172
Shareholders' equity ............................... 403,261
--------
Total liabilities and shareholders' equity ... $940,064
========
