Benchmark Electronics, Inc. · NYSE:BHE
Benchmark Electronics — Q2 2015 Earnings Presentation
15 slides from Benchmark Electronics's earnings presentation, Jul 23, 2015
Slide 1: Second Quarter 2015 Earnings Release Conference Call
Second Quarter 2015 Earnings Release Conference Call July 23, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements This document contains forward-looking statements within the scope of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “expect,” “estimate,” “anticipate,” “predict” and similar expressions, and the negatives thereof, often identify forward-look
Slide 3: Second Quarter 2015 Highlights
Second Quarter 2015 Highlights Revenue of $664 million at the high end of guidance range Non-GAAP operating margin at 4.2% - a 40 basis point quarter- over-quarter and 10 basis point year-over-year improvement Generated non-GAAP EPS of $0.42 Strong operating cash flow of $52 million Return
Slide 4: Portfolio Trends
Portfolio Trends Traditional Market Revenue Higher Growth Market Revenue 3-Year CAGR = 5% 3-Year CAGR = 10% (Computing and Telecom) (Industrial, Medical and T&I) Q2 sales in traditional markets driven by seasonality and stronger customer demand Higher growth markets >50% of sales for the third s
Slide 5: Second Quarter 2015 New Business Wins
Second Quarter 2015 New Business Wins Q2 2015 Number of New Quarterly Estimated Annual Revenue Business Wins by Segment Run Rate for New Business Wins Q2 2015: 42 new business bookings, including 13 engineering projects Estimated annual revenue run rate between $110-130 million design develop de
Slide 6: Second Quarter 2015 Financial Summary
Second Quarter 2015 Financial Summary For the Three Months Ended (In millions, except EPS) Jun 30, 2015 Mar 31, 2015 Jun 30, 2014 Net Sales $664.0 $620.9 $716.9 Net Income – GAAP $21.2 $14.2 $22.2 Net Income – non-GAAP $22.0 $17.8 $23.4 Diluted EPS – GAAP $0.40 $0.27 $0.41 Diluted EPS – non-GAAP $0.
Slide 7: Trending Operating Income
Trending Operating Income Continued improvement in operating income percentage Results from portfolio diversification and operational excellence initiatives design develop deliver advanced technology 7
Slide 8: Second Quarter Industry Sector Update
Second Quarter Industry Sector Update Revenue by Industry Sector Sector (in millions) Jun 30, 2015 Mar 31, 2015 Jun 30, 2014 Q2 YoY Industrial Controls 30% $201 32% $199 29% $211 (5)% Telecommunications 27% $177 27% $166 29% $205 (14%) Computing 20% $137 19% $120 21% $148 (7%) Medical 14% $90 13% $8
Slide 9: Financial Statement Highlights
Financial Statement Highlights Balance Sheet and Cash Flows (In millions) Jun 30, 2015 Mar 31, 2015 Jun 30, 2014 Cash $409.3* $383.6 $401.9 Cash Flows from Operating Activities $52.0 ($10.9) $25.0 Capital Expenditures $8.2 $16.8 $15.7 Depreciation & Amortization $12.3 $12.1 $11.4 Accounts Receivable
Slide 10: Working Capital Update
Working Capital Update Jun 30, 2015 Mar 31, 2015 Accounts Receivable Days 68 71 Accounts Payable Days 42 39 Inventory Days 66 68 Cash Conversion Cycle Days 91 99 Accounts Receivable and Accounts Payable each improved by three days; inventory improved by two days Cash Conversion Cycle improved by
Slide 11: Third Quarter 2015 Guidance
Third Quarter 2015 Guidance Guidance Net Sales (in millions) $635 – $665 Operating Margin – non-GAAP 3.8% – 4.2% Effective Tax Rate 21% - 22% Diluted EPS – non-GAAP $0.38 – $0.42 Outlook is for the third quarter ending September 30, 2015. design develop deliver advanced technology 11
Slide 12: Benchmark Market Overview
Benchmark Market Overview Q3-15 2015 Higher Growth Markets Jun 30, 2015 Outlook (%) Outlook Industrial Controls 30% $201 Up Mid-Single Digits Growth Medical 14% $90 Up Mid-Single Digits Growth Test & Instrumentation 9% $59 Up Mid-Single Digits Stable Total Revenue $350 Q3-15 2015 Traditional Markets
Slide 13: Summary
Second Quarter 2015 Summary Near Term Cash Priorities: o Share repurchases ($69 million remaining in current program) o Capital expenditures $40-50 million in 2015 o Strategic growth investments Key Strategic Initiatives: o Portfolio Diversification o Lean and Operational Excellence o Working Ca
Slide 14: Appendix
Appendix design develop deliver advanced technology 14
Slide 15: Reconciliation of GAAP to non-GAAP Financial Results
Reconciliation of GAAP to non-GAAP Financial Results (Amounts in Thousands, Except Per Share Data) – (UNAUDITED) design develop deliver advanced technology 15
Benchmark Electronics — Q2 2015 Earnings Presentation on 6ix