Benchmark Electronics(BHE) - 2024 Q3 - Quarterly Results

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]