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 ...

[Second Quarter 2024 Financial Highlights](index=1&type=section&id=Second%20Quarter%202024%20Financial%20Highlights) [Key Financial and Operational Results](index=1&type=section&id=Key%20Financial%20and%20Operational%20Results) Benchmark reported solid results for the second quarter of 2024, with revenue of $666 million, achieving a GAAP diluted EPS of $0.43 and a non-GAAP diluted EPS of $0.57, alongside improved operating margins and strong free cash flow Q2 2024 Key Financial Metrics | Metric | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Sales (Millions) | $666M | $676M | $733M | | GAAP Net Income (Millions) | $16M | $14M | $14M | | Non-GAAP Net Income (Millions) | $21M | $20M | $20M | | GAAP Diluted EPS ($) | $0.43 | $0.38 | $0.39 | | Non-GAAP Diluted EPS ($) | $0.57 | $0.55 | $0.56 | | GAAP Operating Margin (%) | 4.1% | 3.8% | 3.3% | | Non-GAAP Operating Margin (%) | 5.1% | 4.9% | 4.5% | - Generated **$56 million** in net cash from operations and **$47 million** in positive free cash flow during the second quarter of 2024[17](index=17&type=chunk) Cash Conversion Cycle (Days) | Period | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | :--- | | Cash Conversion Cycle | 90 | 94 | 103 | [Management Commentary and Dividend](index=1&type=section&id=Management%20Commentary%20and%20Dividend) Management highlighted the company's consistent progress and solid results, maintaining focus on execution, margin protection, inventory reduction, and positive free cash flow, which is now expected to exceed $120 million for fiscal year 2024, alongside a quarterly dividend increase to $0.17 per share - The Board of Directors authorized an increase in the quarterly dividend from **$0.165 to $0.17 per share**[25](index=25&type=chunk) - CEO Jeff Benck stated the company delivered solid results and is making consistent progress toward long-term objectives[26](index=26&type=chunk) - The company now expects free cash flow to exceed **$120 million** in fiscal year 2024, focusing on protecting margins and driving down inventories amidst market uncertainty[10](index=10&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) [Revenue by Industry Sector](index=2&type=section&id=Revenue%20by%20Industry%20Sector) Total revenue for Q2 2024 was $666 million, a decrease from both the prior quarter ($676 million) and the same quarter last year ($733 million), driven by lower sales in Complex Industrials, Medical, and AC&C sectors, partially offset by growth in Semi-Cap and Aerospace & Defense (A&D) Revenue by Sector (Millions) | Sector | Q2 2024 Revenue | % of Total | Q2 2023 Revenue | % of Total | | :--- | :--- | :--- | :--- | :--- | | Semi-Cap | $172 | 26% | $164 | 22% | | Complex Industrials | $142 | 21% | $167 | 23% | | Medical | $111 | 17% | $145 | 20% | | A&D | $109 | 16% | $80 | 11% | | AC&C | $132 | 20% | $177 | 24% | | **Total** | **$666** | **100%** | **$733** | **100%** | - Year-over-year revenue decrease was primarily due to declines in Complex Industrials, Medical, and Advanced Computing and Communications (AC&C), partially offset by increases in Semi-Cap and A&D sales[35](index=35&type=chunk) [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the second quarter of 2024, sales decreased to $665.9 million from $733.2 million year-over-year, yet gross profit remained stable at $68.0 million, and income from operations increased to $27.3 million from $24.5 million, resulting in net income rising to $15.5 million, or $0.43 per diluted share Consolidated Income Statement Summary (Thousands) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Sales (Thousands) | $665,896 | $733,232 | $1,341,471 | $1,427,927 | | Gross Profit (Thousands) | $67,950 | $67,031 | $135,358 | $130,989 | | Income from Operations (Thousands) | $27,253 | $24,481 | $52,782 | $47,223 | | Net Income (Thousands) | $15,528 | $13,991 | $29,530 | $26,351 | | Diluted EPS ($) | $0.43 | $0.39 | $0.81 | $0.74 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, Benchmark's total assets were $2.15 billion, down from $2.27 billion at the end of 2023, primarily due to reductions in inventories and accounts receivable, while total liabilities also decreased to $1.06 billion from $1.20 billion, mainly from lower long-term debt and advance payments, with shareholders' equity increasing slightly to $1.10 billion Balance Sheet Summary (Thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents (Thousands) | $309,287 | $277,391 | | Inventories (Thousands) | $599,842 | $683,801 | | Total current assets (Thousands) | $1,510,651 | $1,635,747 | | **Total assets (Thousands)** | **$2,154,739** | **$2,274,755** | | Total current liabilities (Thousands) | $643,060 | $713,547 | | Long-term debt (Thousands) | $283,559 | $326,674 | | **Total liabilities (Thousands)** | **$1,059,635** | **$1,195,670** | | **Shareholders' equity (Thousands)** | **$1,095,104** | **$1,079,085** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2024, net cash provided by operating activities was $104.3 million, a significant improvement from a net use of $0.4 million in the same period of 2023, largely due to positive changes in working capital, particularly a decrease in inventories, with net cash used in investing activities at $15.8 million and financing activities at $58.9 million Cash Flow Summary - Six Months Ended June 30 (Thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities (Thousands) | $104,274 | ($368) | | Net cash used in investing activities (Thousands) | ($15,812) | ($46,464) | | Net cash (used in) provided by financing activities (Thousands) | ($58,892) | $84,941 | | Net increase in cash (Thousands) | $26,652 | $37,900 | [Outlook](index=2&type=section&id=Outlook) [Third Quarter 2024 Guidance](index=2&type=section&id=Third%20Quarter%202024%20Guidance) For the third quarter of 2024, Benchmark anticipates revenue to be between $630 million and $670 million, projecting diluted GAAP earnings per share in the range of $0.36 to $0.42, and non-GAAP diluted earnings per share between $0.52 and $0.58 Q3 2024 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenue (Millions) | $630M - $670M | | Diluted GAAP EPS ($) | $0.36 - $0.42 | | Diluted non-GAAP EPS ($) | $0.52 - $0.58 | - Expected charges in Q3 2024 include approximately **$1.0 million** for restructuring, **$4.5 million** for stock-based compensation, and **$1.2 million** for amortization of intangible assets[28](index=28&type=chunk) [Supplemental Information](index=2&type=section&id=Supplemental%20Information) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=3&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) The company provides non-GAAP financial measures to help investors analyze performance by excluding items like restructuring charges, stock-based compensation, and amortization of intangibles, with Q2 2024 GAAP income from operations of $27.3 million adjusting to a non-GAAP figure of $34.1 million, and GAAP net income of $15.5 million reconciling to a non-GAAP net income of $21.0 million - Management uses non-GAAP measures, which exclude items such as restructuring charges, stock-based compensation, and amortization of intangibles, to better assess operating performance and compare results with previous guidance[38](index=38&type=chunk) Q2 2024 GAAP to Non-GAAP Reconciliation (Thousands) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Income from operations (Thousands) | $27,253 | $6,861 | $34,114 | | Net income (Thousands) | $15,528 | $5,424 | $20,952 | [About Benchmark Electronics, Inc.](index=2&type=section&id=About%20Benchmark%20Electronics%2C%20Inc.) Benchmark Electronics, Inc. provides comprehensive design and manufacturing solutions across the entire product life cycle, serving various sectors including semiconductor capital equipment, complex industrials, medical, commercial aerospace, defense, and advanced computing and communications, operating globally with facilities in seven countries and traded on the NYSE under the symbol BHE - Benchmark offers end-to-end product life cycle solutions, including technology and engineering design, supply chain management, and manufacturing services[5](index=5&type=chunk) - The company serves the following key industries: semiconductor capital equipment, complex industrials, medical, commercial aerospace, defense, and advanced computing and communications[5](index=5&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements concerning the company's outlook, guidance, and business strategy, which are based on current assumptions but involve risks and uncertainties, such as customer demand fluctuations, supply chain constraints, inflation, and geopolitical tensions, that could cause actual results to differ materially - Forward-looking statements include guidance for Q3 and fiscal year 2024, future operating results, and business strategy initiatives[14](index=14&type=chunk) - Key risks that could affect future results include customer demand fluctuations, supply chain constraints, inflationary pressures, foreign currency fluctuations, high interest rates, and geopolitical uncertainties[14](index=14&type=chunk) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Benchmark will host a conference call at 5:00 p.m. Eastern Time to discuss the second quarter 2024 results, with a live webcast and replay available on the company's website, www.bench.com - The company will host a conference call at **5:00 p.m. Eastern Time** to discuss the Q2 2024 results[19](index=19&type=chunk) - A live webcast and replay of the call are accessible on the company's website at www.bench.com[19](index=19&type=chunk)

Second quarter 2024 results(1): "Once again Benchmark delivered solid results, demonstrating consistent progress toward achieving our longerterm operational objectives," said Jeff Benck, Benchmark's President and CEO. Second Quarter 2024 Industry Sector Update Revenue decreased quarter over quarter primarily due to decreases in Medical and Advanced Computing and Communications (AC&C) sales, which were partially offset by an increase in Semi-Cap sales. Revenue decreased year-over-year primarily due to decrea ...