Sales Performance - Sales for Q3 2024 were $657.7 million, a 9% decrease from $719.7 million in Q3 2023[112] - Sales for Q3 2024 decreased 9% to $657.7 million from $719.7 million in Q3 2023, with a year-to-date sales decrease of 7% to $1,999.2 million from $2,147.6 million[120] - Semi-Cap sales increased 13% to $187.4 million in Q3 2024 from $165.3 million in Q3 2023, and increased 10% to $525.2 million for the first nine months of 2024[120] - Medical sales decreased 28% to $107.1 million in Q3 2024 from $149.1 million in Q3 2023, with a year-to-date decrease of 23% to $333.4 million from $431.1 million[122] - Aerospace and Defense sales increased 2% to $102.0 million in Q3 2024 from $99.7 million in Q3 2023, and increased 22% to $316.7 million for the first nine months of 2024[123] - Sales to the top ten customers represented 52% of total sales for both the nine months ended September 30, 2024 and 2023[113] Financial Metrics - Gross profit margin for Q3 2024 was 10.1%, up from 9.6% in Q3 2023[119] - Net income margin for Q3 2024 was 2.3%, down from 2.8% in Q3 2023[119] - Income from operations for Q3 2024 was 4.3%, compared to 4.2% in Q3 2023[119] - Gross profit decreased 3% to $66.7 million in Q3 2024 from $69.1 million in Q3 2023, but increased 1% to $202.1 million for the first nine months of 2024[129] - Income from operations decreased 7% to $28.1 million in Q3 2024 from $30.3 million in Q3 2023, while increasing 4% to $80.9 million for the first nine months of 2024[130] - Net income for Q3 2024 was $15.4 million, or $0.42 per diluted share, down from $20.4 million, or $0.57 per diluted share in Q3 2023[144] - For the first nine months of 2024, net income was $44.9 million, or $1.23 per diluted share, compared to $46.8 million, or $1.30 per diluted share in the same period of 2023[144] Expenses and Charges - Restructuring charges recognized during the nine months ended September 30, 2024 amounted to $5.6 million[115] - SG&A expenses increased to $36.6 million in Q3 2024 from $35.5 million in Q3 2023, and increased to $112.0 million for the first nine months of 2024 from $111.4 million[134] - Interest expense decreased to $6.6 million in Q3 2024 from $8.5 million in Q3 2023, and decreased to $20.7 million for the first nine months of 2024 from $23.2 million[139] - Income tax expense for Q3 2024 was $5.0 million with a 24.6% effective tax rate, compared to $5.2 million and a 20.2% effective tax rate in Q3 2023[142] Cash Flow and Investments - Cash, cash equivalents, and restricted cash totaled $324.4 million as of September 30, 2024, with $318.6 million held outside the United States[146] - Cash provided from operating activities was $143.3 million during the first nine months of 2024, primarily driven by a $44.9 million net income and a $102.5 million decrease in inventories[149] - Cash used in investing activities was $23.7 million, mainly for capital expenditures of $22.6 million for property, plant, and equipment[151] - Cash used in financing activities was $81.2 million, including $455.0 million in borrowings and $507.5 million in principal payments under the Credit Agreement[152] - As of September 30, 2024, the company had $124.7 million in borrowings outstanding under the term loan facility and $155.0 million under the revolving credit facility[158] Dividends and Share Repurchase - The company declared a quarterly cash dividend of $0.17 per share, totaling $6.1 million, paid on October 11, 2024[161] - The company repurchased 0.1 million shares for $5.1 million at an average price of $40.27 per share during the three and nine months ended September 30, 2024[165] Operational Efficiency - The company has seen easing of material constraints across commodity categories, except for older technologies[113] - The company employs ERP systems and lean manufacturing principles to enhance efficiency and cost-effectiveness[108] - The company anticipates capital expenditures of approximately $60 million to $70 million over the next 12 months to increase production capacity[160] International Operations - 65% of sales in Q3 2024 were from international operations, up from 60% in Q3 2023, while 62% of sales for the first nine months of 2024 were from international operations, up from 59% in the same period of 2023[125]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $658 million, exceeding the midpoint of guidance and showing year-over-year growth in Aerospace and Defense and semiconductor capital equipment [8][9] - Non-GAAP gross margin was 10.2%, marking the fourth consecutive quarter of margins above 10% [9][17] - Non-GAAP operating margin reached 5.3%, representing the 16th consecutive quarter of year-over-year operating margin expansion [9][37] - Non-GAAP earnings per share (EPS) was $0.57, at the higher end of the guidance range of $0.52 to $0.58 [17][24] - Free cash flow for the quarter was $29 million, bringing the trailing 12-month total to $245 million [10][20] Business Line Data and Key Metrics Changes - Semiconductor capital equipment revenue increased by 13% year-over-year, driven by improving demand and new customer wins [14][26] - Industrial revenue decreased by 2%, primarily due to reduced demand from existing customers [14] - Medical revenue declined by 28% year-over-year, impacted by inventory rebalancing and end demand weakness [15] - Aerospace and Defense (A&D) revenue grew by 2%, with strong demand in commercial aerospace and defense sectors [15][33] - Advanced Computing and Communications (AC&C) revenue decreased by 27% year-over-year, driven by the completion of large high-performance computing programs [16][34] Market Data and Key Metrics Changes - The semiconductor sector is showing signs of recovery, although the pace of the next upcycle is challenging to predict [26][28] - The medical sector continues to experience broad market weakness, particularly in medical devices, expected to persist for the next few quarters [29] - The industrial sector is showing stabilization with expectations for year-over-year growth in Q4 [52] - The A&D sector is anticipated to return to double-digit growth in Q4, supported by strong demand in defense and aerospace [33] Company Strategy and Development Direction - The company is focused on high-value sectors while maintaining operational discipline, positioning itself for a structural multiyear growth cycle in the EMS industry [12][38] - Continued investment in capacity expansion, including a new facility in Penang, is aimed at capturing incremental market share [27][28] - The company emphasizes operational improvements and efficient use of working capital to support growth and shareholder returns [40] Management's Comments on Operating Environment and Future Outlook - Management noted that while demand has stabilized, end market softness in several sectors continues to weigh on revenue growth opportunities [9][52] - There is optimism regarding the semiconductor recovery and strong performance in the A&D sector, with expectations for growth in 2025 [26][41] - The company remains committed to supporting customer success and driving operational improvements regardless of market conditions [40] Other Important Information - The company reduced debt by $11 million during the quarter, leaving $125 million outstanding on its term loan [21] - Approximately $8 million was invested in capital expenditures to support growth and enhance capabilities [21] - The company repurchased approximately 127,000 shares at an average price of $40.27 per share, totaling $5.1 million [22][39] Q&A Session Summary Question: Are there any sectors that the company is more optimistic about now than in the last call? - Management expressed encouragement regarding the semiconductor recovery and strong performance in the A&D sector, expecting growth to pick up in Q4 [42][43] Question: How has the pricing environment been for bidding on programs? - The pricing environment has remained rational, with competition present but focused on differentiated, complex solutions [44][46] Question: What is the potential for operating margin growth when demand improves? - Management anticipates an increase of 25 to 50 basis points in operating margin with a more uniform recovery in the semiconductor sector [47][48] Question: Are there signs of improvement in underperforming markets like industrial and medical? - Management noted stabilization in the industrial sector and some green shoots, while the medical sector continues to face prolonged challenges [51][52] Question: What is the focus on engineering services within the business? - There has been a pronounced number of wins in engineering, with a focus on higher value-add services that can lead to manufacturing opportunities [55][56]

Revenue Performance - Revenue for Q3 2024 was $658 million, a decrease from $720 million in Q3 2023, representing a year-over-year decline of approximately 8.6%[3] - The company expects Q4 2024 revenue to be between $640 million and $680 million, with diluted GAAP earnings per share guidance of $0.40 to $0.46[7] - Revenue from the Semiconductor Capital Equipment sector was $188 million, accounting for 28% of total sales, an increase from 23% in Q3 2023[6] Earnings and Profitability - GAAP diluted earnings per share for Q3 2024 were $0.42, down from $0.57 in Q3 2023, reflecting a decrease of approximately 26.3%[3] - Non-GAAP diluted earnings per share for Q3 2024 were $0.57, unchanged from Q2 2024 but down from $0.65 in Q3 2023[3] - Net income for the third quarter of 2024 was $44,904,000, compared to $46,763,000 in the same period of 2023, representing a decrease of about 3.9%[18] - GAAP income from operations for Q3 2024 was $28,105 million, an increase from $25,529 million in Q4 2023[20] - Non-GAAP income from operations reached $34,851 million, compared to $33,107 million in Q4 2023, reflecting a growth of 5.3%[20] - GAAP operating margin improved to 4.3% in Q3 2024, up from 3.8% in Q4 2023[20] - Net income (GAAP) for Q3 2024 was $15,374 million, a decrease from $20,412 million in Q3 2023[20] - Non-GAAP net income was $20,714 million, slightly down from $23,293 million in Q3 2023[20] - Diluted earnings per share (GAAP) for Q3 2024 was $0.42, compared to $0.49 in Q3 2023[20] - Free cash flow for the period was $39,036 million, a significant decrease from $137,079 million in Q3 2023[20] - Gross profit (GAAP) was $66,741 million, down from $71,004 million in Q3 2023[20] - Non-GAAP gross profit was $67,154 million, slightly lower than $71,420 million in Q3 2023[20] Cash Flow and Working Capital - The company generated positive free cash flow of $29 million in Q3 2024, contributing to a total of $245 million over the last 12 months[3] - Net cash provided by operating activities increased significantly to $143,309,000 in September 2024 from $37,214,000 in September 2023, marking an increase of approximately 284.5%[18] - The company reported a significant increase in cash flows from operating activities, driven by improved working capital management[18] - Cash and cash equivalents at the end of the period increased to $324,423,000 from $260,760,000, reflecting an increase of approximately 24.4%[18] Asset and Liability Management - Total current assets decreased from $1,635,747,000 in December 31, 2023 to $1,508,707,000 as of September 30, 2024, a decline of approximately 7.8%[16] - Total liabilities decreased from $1,195,670,000 in December 31, 2023 to $1,046,321,000 as of September 30, 2024, a reduction of about 12.5%[16] - Current liabilities decreased from $713,547,000 in December 31, 2023 to $639,131,000 as of September 30, 2024, a decrease of approximately 10.4%[16] - Long-term debt, net of current installments, decreased from $326,674,000 in December 31, 2023 to $272,000,000 as of September 30, 2024, a reduction of about 16.7%[16] - Inventories decreased from $683,801,000 in December 31, 2023 to $581,901,000 as of September 30, 2024, a decline of about 14.9%[16] Operational Efficiency - The cash conversion cycle improved to 90 days in Q3 2024, down from 105 days in Q3 2023[4] - The company has experienced a 16th consecutive quarter of non-GAAP operating margin expansion year-over-year[3] - Future growth will be supported by the new CFO, Bryan Schumaker, who is expected to drive operational excellence[4] Other Financial Activities - Stock-based compensation expense for Q4 2024 is expected to be $3.5 million, with amortization of intangible assets at $1.2 million[8] - The company engaged in share repurchases amounting to $5,101,000 during the period[18] - The company incurred restructuring charges of $795 million in Q3 2024, compared to $2,899 million in Q3 2023[20]

Financial Results - Benchmark Electronics reported third quarter 2024 revenue of $658 million, a decrease from $666 million in the previous quarter and $720 million year-over-year [1][2][7] - The company generated net cash provided by operations of $39 million and positive free cash flow of $29 million [1][2] - GAAP gross margin was 10.1%, while non-GAAP gross margin was 10.2% [1][2][21] - GAAP operating margin was 4.3%, and non-GAAP operating margin was 5.3% [1][2][21] - GAAP earnings per share (EPS) was $0.42, and non-GAAP EPS was $0.57 [1][2][21] Year-over-Year Comparison - Revenue decreased year-over-year primarily due to declines in Medical and Advanced Computing and Communications (AC&C) sales, partially offset by increases in Semi-Cap and Aerospace & Defense (A&D) sales [7] - Net income for the third quarter was $15 million, down from $20 million in the same quarter last year [2][7] - Non-GAAP net income remained stable at $21 million compared to the previous quarter but decreased from $23 million year-over-year [2][7] Cash Conversion Cycle - The cash conversion cycle days remained at 90 days, down from 105 days a year ago [4] - Accounts receivable days improved to 51 days from 60 days year-over-year [4] - Inventory days decreased to 89 days from 100 days year-over-year [4] Industry Sector Update - Revenue by industry sector for the third quarter included Semi-Cap at $188 million (28% of sales), Complex Industrials at $151 million (23%), Medical at $107 million (16%), and A&D at $102 million (16%) [5][6][7] - The decline in revenue was primarily attributed to decreases in AC&C and Medical sales, while Semi-Cap sales saw an increase [7] Fourth Quarter Guidance - The company expects fourth quarter 2024 revenue to be between $640 million and $680 million [8] - Diluted GAAP EPS is projected to be between $0.40 and $0.46, while diluted non-GAAP EPS is expected to be between $0.53 and $0.59 [8]

TEMPE, Ariz., Oct. 7, 2024 /PRNewswire/ -- Benchmark Electronics, Inc. (NYSE: BHE), a global provider of engineering, design, and manufacturing services, today announced the appointment of Bryan Schumaker as the company's chief financial officer (CFO) effective October 8. Schumaker brings more than 20 years of financial and leadership experience across public and private sectors, driving growth, operational excellence, and strategic capital management. Bryan Schumaker, CFO, BenchmarkBryan Schumaker, CFO, Be ...

New Facility Will Enable Further Vertical Integration when Coupled with Existing Benchmark Facilities in Penang, Adding Critical Capacity and Capabilities TEMPE, Ariz., Sept. 12, 2024 /PRNewswire/ -- Benchmark Electronics, Inc. (NYSE: BHE), a global provider of engineering, design, and manufacturing services, today celebrated the grand opening of a new facility in Penang, Malaysia. This will be Benchmark's fourth facility in the region and will become a critical addition to existing facilities, allowing for ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-------------------------------------------------------------------------------------------------|-----------------------| | For the transition period from _________________ | ...

Benchmark Electronics, Inc. BHE reported better-than-expected second-quarter earnings on Tuesday. Benchmark Electronics reported quarterly earnings of 57 cents per share which beat the analyst consensus estimate of 51 cents per share. The company reported quarterly sales of $666.00 million which beat the analyst consensus estimate of $635.75 million. "Once again Benchmark delivered solid results, demonstrating consistent progress toward achieving our longerterm operational objectives," said Jeff Benck, Benc ...

Benchmark Electronics, Inc. (NYSE:BHE) Q2 2024 Earnings Conference Call July 30, 2024 5:00 PM ET Company Participants Paul Mansky - Head of Investor Relations Jeff Benck - President and Chief Executive Officer Arvind Kamal - Interim Chief Financial Officer Conference Call Participants Steven Fox - Fox Advisors Melissa Fairbanks - Raymond James Jaeson Schmidt - Lake Street Chris Grenga - Needham and Company Anja Soderstrom - Sidoti Operator Good day, everyone, and welcome to today’s Benchmark Second Quarter ...

Benchmark | 1 Benchmark Electronics Second Quarter 2024 Financial Results July 30, 2024 Benchmark. Forward-Looking 2024 Statements | 2 This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts and may include words such as "anticipate," "believe," "i ...