Benchmark Reports Fourth Quarter and Year End Results for 2023
TEMPE, Ariz./PRNewswire/ — Benchmark Electronics, Inc. (NYSE: BHE) announced financial results for the fourth quarter and year ended December 31, 2023.
|
Three Months Ended |
||||||||||||
|
December 31, |
September 30, |
December 31, |
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|
(Amounts in millions, except per share data) |
2023 |
2023 |
2022 |
|||||||||
|
Sales |
$ |
691 |
$ |
720 |
$ |
751 |
||||||
|
Net income |
$ |
18 |
$ |
20 |
$ |
21 |
||||||
|
Income from operations |
$ |
32 |
$ |
30 |
$ |
27 |
||||||
|
Net income – non-GAAP(1) |
$ |
21 |
$ |
21 |
$ |
21 |
||||||
|
Income from operations – non-GAAP(1) |
$ |
35 |
$ |
34 |
$ |
33 |
||||||
|
Diluted earnings per share |
$ |
0.49 |
$ |
0.57 |
$ |
0.60 |
||||||
|
Diluted earnings per share – non-GAAP(1) |
$ |
0.58 |
$ |
0.57 |
$ |
0.60 |
||||||
|
Operating margin |
4.6 |
% |
4.2 |
% |
3.6 |
% |
||||||
|
Operating margin – non-GAAP(1) |
5.1 |
% |
4.7 |
% |
4.3 |
% |
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|
Year Ended |
||||||||||
|
December 31, |
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|
(Amounts in millions, except per share data) |
2023 |
2022 |
||||||||
|
Sales |
$ |
2,839 |
$ |
2,886 |
||||||
|
Net income |
$ |
64 |
$ |
68 |
||||||
|
Income from operations |
$ |
110 |
$ |
90 |
||||||
|
Net income – non-GAAP(1) |
$ |
73 |
$ |
75 |
||||||
|
Income from operations – non-GAAP(1) |
$ |
124 |
$ |
104 |
||||||
|
Diluted earnings per share |
$ |
1.79 |
$ |
1.91 |
||||||
|
Diluted earnings per share – non-GAAP(1) |
$ |
2.04 |
$ |
2.09 |
||||||
|
Operating margin |
3.9 |
% |
3.1 |
% |
||||||
|
Operating margin – non-GAAP(1) |
4.4 |
% |
3.6 |
% |
||||||
|
(1) |
A reconciliation of non-GAAP results to the most directly comparable GAAP measures and a discussion of why management believes these non-GAAP results are useful is included below. |
“Benchmark delivered another solid year of performance in 2023 as we continued to execute to our strategic plan. I’m particularly pleased with our free cash flow performance which was aided by inventory reductions. At the same time, our operational discipline allowed us to expand both gross and operating margin despite the dynamic environment,” said Jeff Benck, Benchmark’s President and CEO.
Benck continued, “Looking forward, we expect the current demand softness across several of our end-markets will likely persist through the first half of 2024, driven by customers closely managing inventories. However, as demonstrated by our performance this past year, I am confident in our ability to deliver further margin expansion and positive free cash flow in 2024.”
Cash Conversion Cycle
|
December 31, |
September 30, |
December 31, |
||||||||||
|
2023 |
2023 |
2022 |
||||||||||
|
Accounts receivable days |
59 |
60 |
59 |
|||||||||
|
Contract asset days |
23 |
24 |
22 |
|||||||||
|
Inventory days |
99 |
100 |
97 |
|||||||||
|
Accounts payable days |
(53) |
(53) |
(56) |
|||||||||
|
Advance payments from customers days |
(30) |
(26) |
(26) |
|||||||||
|
Cash conversion cycle days |
98 |
105 |
96 |
|||||||||
Fourth Quarter 2023 Industry Sector Update
Revenue and percentage of sales by industry sector were as follows.
|
December 31, |
September 30, |
December 31, |
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|
(In millions) |
2023 |
2023 |
2022 |
|||||||||||||||||||||
|
Medical |
$ |
126 |
18 |
% |
$ |
149 |
21 |
% |
$ |
144 |
19 |
% |
||||||||||||
|
Semi-Cap |
168 |
24 |
165 |
23 |
178 |
24 |
||||||||||||||||||
|
A&D |
102 |
15 |
100 |
14 |
90 |
12 |
||||||||||||||||||
|
Industrials |
132 |
19 |
154 |
21 |
143 |
19 |
||||||||||||||||||
|
Advanced Computing |
95 |
14 |
66 |
9 |
92 |
12 |
||||||||||||||||||
|
Next Gen Communications |
68 |
10 |
86 |
12 |
104 |
14 |
||||||||||||||||||
|
Total |
$ |
691 |
100 |
% |
$ |
720 |
100 |
% |
$ |
751 |
100 |
% |
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Revenue decreased year over year primarily due to a decrease in Next Gen Communications of 35% and a decrease in Medical of 13%, partially offset by an increase in A&D of 13%.
First Quarter 2024 Guidance
- Revenue between $625 million – $665 million
- Diluted GAAP earnings per share between $0.32 – $0.38
- Diluted non-GAAP earnings per share between $0.42 – $0.48 (excluding restructuring charges and other costs and amortization of intangibles)
Restructuring charges are expected to range between $3.1 million and $3.5 million in the first quarter of 2024 and the amortization of intangibles is expected to be $1.2 million in the first quarter.
Fourth Quarter 2023 Earnings Conference Call
The Company will host a conference call to discuss the results today at 5:00 p.m. Eastern Time. The live webcast of the call and accompanying reference materials will be accessible by logging on to the Company’s website at www.bench.com. A replay of the broadcast will also be available on the Company’s website.
