Slide 1: Benchmark Electronics Q3-21 Earnings Results
Benchmark Electronics Q3-21 Earnings Results October 27, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act). These forward-looking statements are identified as any statement
Slide 3: Q3-21 Overview
Q3-21 Overview Achieved revenue of $572 million (9% year-over-year growth) - Strength from Semi-Cap, Industrials and Computing sectors Realized Non-GAAP gross margin of 9.4% and Non-GAAP operating margin of 3.3% Non-GAAP earnings per share of $0.39 Cash conversion cycle of 71 days Managing ongoing s
Slide 4: Q3-21 New Business Wins
Q3-21 New Business Wins Medical Glucose monitoring systems (process design & manufacturing) Robotic surgery applications (design & manufacturing) Mobile medical cart (design) Semi-Cap Wafer handling system (manufacturing) Wafer inspection tool (manufacturing) Aerospace & Defense Satellite antennas (
Slide 5: Roop Lakkaraju, Chief Financial Officer
Roop Lakkaraju Chief Financial Officer
Slide 6: Third Quarter Revenue by Market Sector
Third Quarter Revenue by Market Sector Q3-21 Sept. 30, 2021 Revenue by Mix and Market Sector June 30, 2021 Sept. 30, 2020 For the Three Months Ended Dollars in Millions Higher-Value Markets Mix % Revenue Mix % Revenue Q/Q Mix % Revenue Y/Y Medical 21% $118 20% $109 8% 26% $134 (12%) Semi-Cap 23% $13
Slide 7: Third Quarter 2021 Financial Summary
Third Quarter 2021 Financial Summary (In millions, except EPS) Sept. 30, 2021 June 30, 2021 Q/Q Sept. 30, 2020 Y/Y Net Sales $572 $545 5% $526 9% GAAP Gross Margin 9.4% 8.8% 60 bps 8.8% 60 bps GAAP SG&A $34.4 $34.0 1% $29.7 16% GAAP Operating Margin 2.1% 2.0% 10 bps 1.6% 50 bps GAAP Diluted EPS $0.2
Slide 8: Cash Conversion Cycle Update
Cash Conversion Cycle Update Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Accounts Receivable Days 55 52 53 49 48 49 Contract Asset Days 28 28 25 26 26 25 Inventory Days 72 66 63 69 75 83 Accounts Payable Days (61) (54) (54) (64) (69) (70) Advance Payments from Customers Days (10) (11) (16) (15) (16) (16) Ca
Slide 9: Liquidity and Capital Resources
Liquidity and Capital Resources For the Three Months Ended Cash (In millions) Sept. 30, 2021 June 30, 2021 Sept. 30, 2020 Cash Flows from (used in) Operations $(42) $4 $6 FCF (1) $(55) $(9) $0 Cash $291 $370 $335 International $185 $235 $174 US $106 $135 $161 (1) Free cash flow (FCF) defined as net
Slide 10: Capital Allocation Update
Capital Allocation Update Dividends Quarterly dividend of $0.165 per share totaling $5.9 million paid in July 2021 Recurring quarterly dividend of $0.165 per share paid to shareholders on October 14, 2021 Recurring quarterly dividends to continue until further notice Share Repurchases Share repurcha
Slide 11: Fourth Quarter 2021 Guidance
Fourth Quarter 2021 Guidance * This guidance takes into consideration all known constraints for the quarter and assumes no further significant interruptions to our supply base, operations or customers. Guidance also assumes no material changes to end market conditions and our operations due to COVID
Slide 12: 2021 Revenue Trends and Key Initiatives
2021 Revenue Trends and Key Initiatives Jeff Benck - CEO
Slide 13: Trends by Market Sector
Trends by Market Sector Sector Q4-21 Revenue Guidance CY2021 Revenue Outlook Comments Medical Component availability impacting strong demand recovery Some new program ramps moving from 2021 into early next year Expect medical to be a strong growth sector in 2022 Semi-Cap Now expecting 40% full year
Slide 14: 2021 Key Strategic Initiatives Update
2021 Key Strategic Initiatives Update 01 Grow Revenue Strong bookings driving revenue growth Again achieved >50% attach rate of engineering projects to manufacturing services bookings in Q3 Continued strength in Semi-Cap 2021 is expected to continue into 2022 High performance computing and strengthe
Slide 15: Highlights and Q4-21 Outlook
Highlights and Q4-21 Outlook Expected revenue growth in the high single digits for 2021 Strong Semi-Cap demand continues (expect 40% annual revenue growth) Second half High Performance Computing programs will continue into next year Improving demand and revenue in Industrials In all sectors, demand
Slide 16: Appendix
Appendix Benchmark. 16
Slide 17: Appendix 1 - Reconciliation of GAAP to non-GAAP Financial Results
(Amounts in Thousands, Except Per Share Data) – (UNAUDITED) APPENDIX 1 - Reconciliation of GAAP to non-GAAP Financial Results