Benchmark Electronics(US:BHE)2024-02-26 16:00Sales Performance - Complex Industrials sales increased by 1%, A&D by 4%, Medical decreased by 6%, Semi-Cap by 11%, Advanced Computing by 9%, and Next-Generation Communications by 6%[238] - Total sales for 2023 were $2,838,976, a decrease of 1.6% from $2,886,331 in 2022[350] - Sales to the ten largest customers represented 52% of total sales in both 2023 and 2022, with Applied Materials, Inc. accounting for 12% of total sales in 2023 and 15% in 2022[238] Financial Position - Total current assets decreased from $1,652,149 thousand in 2022 to $1,635,747 thousand in 2023, while total assets increased from $2,227,331 thousand in 2022 to $2,274,755 thousand in 2023[348] - Cash and cash equivalents increased from $207,430 thousand in 2022 to $277,391 thousand in 2023[348] - Accounts receivable decreased from $491,957 thousand in 2022 to $449,404 thousand in 2023[348] - Total current liabilities decreased from $749,136 thousand in 2022 to $713,547 thousand in 2023[348] - Long-term debt increased from $320,675 thousand in 2022 to $326,674 thousand in 2023[348] - Shareholders' equity increased from $1,026,416 thousand in 2022 to $1,079,085 thousand in 2023[348] Profitability - Gross profit increased to $271,070 in 2023, up 6.2% from $255,235 in 2022[350] - Net income for 2023 was $64,315, down 5.6% from $68,229 in 2022[352] - Basic earnings per share decreased to $1.81 in 2023 from $1.94 in 2022, a decline of 6.7%[350] - Income from operations rose to $109,664 in 2023, an increase of 21.8% compared to $90,069 in 2022[350] - Comprehensive income for 2023 was $66,688, slightly down from $69,154 in 2022[352] Cash Flow and Investments - Net cash provided by operating activities increased significantly to $174,294,000 from a cash outflow of $(177,467,000) in 2022[355] - Total cash, cash equivalents, and restricted cash at the end of 2023 was $283,213,000, up from $207,430,000 at the end of 2022, representing a 36.5% increase[355] - Additions to property, plant, and equipment were $(73,479,000) in 2023, an increase from $(43,357,000) in 2022, reflecting ongoing investment in infrastructure[355] Debt Management - The company had borrowings under credit agreements totaling $749,500,000 in 2023, down from $828,000,000 in 2022[355] - Principal payments on credit agreements increased to $(743,602,000) in 2023 from $(633,000,000) in 2022, indicating a focus on debt reduction[355] - Interest expense increased significantly to $(31,875) in 2023 from $(12,894) in 2022, reflecting a rise in borrowing costs[350] Risk Management - The company is assessing the potential impact of foreign currency exchange risks and interest rate risks on its financial performance, particularly related to its floating rate term loan facility[370] - The company is undergoing certification for the U.S. Cybersecurity Maturity Model Certification (CMMC) program to enhance its cybersecurity posture[246] - The company expects to report the potential impact of the Pillar Two model rules on its provision for income taxes in its interim financial statements for the quarterly period ending March 31, 2024[362] Credit Management - The company reported a provision for doubtful accounts of $1,321,000 in 2023, compared to $489,000 in 2022, indicating a significant increase in expected credit losses[355] - The allowance for doubtful accounts decreased to $470,000 at the end of 2023 from $514,000 at the end of 2022, suggesting improved credit management[359] Material Constraints - The company has seen a general easing of material constraints across commodity categories, except for older technologies where capacity remains limited[238]