Benchmark Electronics(US:BHE)2024-10-31 21:35Sales 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]