Benchmark Electronics, Inc. · NYSE:BHE

Benchmark Electronics — Q4 2015 Earnings Presentation

18 slides from Benchmark Electronics's earnings presentation, Feb 9, 2016

  1. Slide 1: Q4-2015 and Full Year 2015 Earnings Presentation

    Q4-2015 and Full Year 2015 Earnings Presentation February 9, 2016 design develop deliver advanced technology

  2. 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

  3. Slide 3: President and CEO Update

    President and CEO Update design develop deliver advanced technology 2

  4. Slide 4: Strategic Plan Execution Highlights

    Strategic Plan Execution Highlights Priorities 2015 Waypoint Targets Portfolio ► 55% of revenues from higher-value markets (medical, industrial, and >70% from Higher- Shift to Higher-Value test & instrumentation) Value Markets Markets ► Historic high for Benchmark ► Achieved 4.5% operating margin >5

  5. Slide 5: Evolving Our Portfolio with Engineering-led Solutions

    Evolving Our Portfolio with Engineering-led Solutions 2015 Engineering Investments Target mix  Design Engineering Talent 45% $1.4bn  Advanced $1.2bn Technologies 30% 4.2% OI 55%  Acquisitions $1.4bn >5% OI $1.1bn 70% Revenue Revenue $2.5bn >$3.0bn Traditional markets Higher-Value markets Source:

  6. Slide 6: Benchmark Results and Outlook by Market Segment

    Benchmark Results and Outlook by Market Segment 2016 2016 Higher-Value Markets Traditional Markets Outlook* Outlook* Industrials** Computing Decline – Medical > 10% Telecommunications Macro Annual Related Test & Instrumentation Growth Total Revenue Total Revenue * 2016 Outlook represents Year-over-Y

  7. Slide 7: First Quarter 2016 Guidance

    First Quarter 2016 Guidance Guidance Net Sales (in millions) $565 – $590 Operating Margin – non-GAAP 3.8% – 4.1% Interest Expense $2.3 million Effective Tax Rate 24-25% Diluted EPS – non-GAAP $0.29 – $0.33  Outlook is for the first quarter ending March 31, 2016. design develop deliver advanced tech

  8. Slide 8: Q4 and 2015 Financial Highlights

    Q4 and 2015 Financial Highlights design develop deliver advanced technology 7

  9. Slide 9: Fourth Quarter 2015 Financial Summary

    Fourth Quarter 2015 Financial Summary For the Three Months Ended (In millions, except EPS) Dec 31, 2015 Sep 30, 2015 Dec 31, 2014 Net Sales $625.7 $630.2 $709.5 Net Income – GAAP $39.4 $20.6 $23.3 Net Income – non-GAAP $23.0 $21.2 $22.5 Diluted EPS – GAAP $0.77 $0.40 $0.44 Diluted EPS – non-GAAP $0.

  10. Slide 10: Fiscal Year 2015 Financial Summary

    Fiscal Year 2015 Financial Summary For the Twelve Months Ended (In millions, except EPS) Dec 31, 2015 Dec 31, 2014 Net Sales $2,540.9 $2,797.1 Net Income – GAAP $95.4 $81.2 Net Income – non-GAAP $84.1 $88.1 Diluted EPS – GAAP $1.83 $1.50 Diluted EPS – non-GAAP $1.61 $1.63 Operating Margin – GAAP 3.7

  11. Slide 11: Trending Operating Income

    Trending Operating Income Revenue Diversification and Operational Excellence Drive Higher Margins design develop deliver advanced technology 10

  12. Slide 12: Fourth Quarter 2015 New Business Wins

    Fourth Quarter 2015 New Business Wins Q4 2015 Number of New Quarterly Estimated Annual Revenue Business Wins by Segment Run Rate for New Business Wins  Q4 2015: 35 new business bookings, including 12 engineering projects  Estimated annual revenue run rate between $115-135 million  Continued new b

  13. Slide 13: Benchmark Results and Outlook by Market Segment

    Benchmark Results and Outlook by Market Segment For the Three Months Ended Q1-16 Higher-Value Markets Sep 30, 2015 Dec 31, 2015 Outlook (%) Industrials* 31% $198 35% $223 Up Mid Single Digits Medical 14% $87 15% $92 Flat Test & Instrumentation 9% $58 8% $51 Flat Total Revenue $343 $366 Q1-16 Traditi

  14. Slide 14: Financial Statement Highlights

    Financial Statement Highlights Balance Sheet and Cash Flows (In millions)) Dec 31, 2015 Sep 30, 2015 Dec 31, 2014 Cash $466.0* $462.1 $427.4 Debt $235.2 $9.0 $9.5 Cash Flows from Operating Activities $28.1 $77.6 $22.1 Capital Expenditures $5.2 $7.9 $8.8 Depreciation & Amortization $13.2 $12.0 $12.5

  15. Slide 15: Working Capital Update

    Working Capital Update Dec 31, 2015 Sep 30, 2015 Accounts Receivable Days 69 67 Accounts Payable Days 40 43 Inventory Days 64 66 Cash Conversion Cycle Days 93 90  Cash Conversion Cycle days greater by three days related to shipments later in the quarter than expected  Ongoing initiatives for worki

  16. Slide 16: Share Repurchases

    Share Repurchases Continue to use U.S. cash for share buybacks $490 million returned to shareholders since 2007 Inception to 2011-2015 2015 2015 $US Stock Repurchases (M) $490 $257 $68 Buyback % of FCF 60% 73% 63%  $135 million remaining on authorized purchase plans design develop deliver advanced

  17. Slide 17: Appendix

    Appendix design develop deliver advanced technology 16

  18. Slide 18: Reconciliation of GAAP to non-GAAP Financial Results

    Reconciliation of GAAP to non-GAAP Financial Results (Amounts in Thousands, Except Per Share Data) – (UNAUDITED) Three Months Ended Year Ended Dec 31, Sep 30, Dec 31, December 31, 2015 2015 2014 2015 2014 Income from operations (GAAP) $21,905 $26,148 $28,653 $ 92,969 $100,144 Restructuring charges a

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