Slide 1: Benchmark Electronics Second Quarter 2023 Earnings
Benchmark Benchmark Electronics Second Quarter 2023 Earnings July 31, 2023 | 1
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking 2023 Statements Non-GAAP Financial Information This document contains forward-looking statements within the meaning of Section 27A of the Management discloses non‐GAAP information to provide investors with additional information to Securities Act of 1933, as amended and Section 21E o
Slide 3: Second Quarter 2023 Results
Second Quarter 2023 Results • Total revenue of $733 million, up 6% sequentially and 1% year-over-year. - Supply chain premiums (SCP)* reduced by $74 million year-over-year - Excluding SCP, year-over-year revenue grew 12% with double-digit growth in 4 of 6 sectors • GAAP and non-GAAP operating margin
Slide 4: Roop Lakkaraju, Chief Financial Officer
Roop Lakkaraju Chief Financial Officer | 4
Slide 5: Second Quarter GAAP Revenue by Market Sector
Second Quarter GAAP Revenue by Market Sector 13% 11% Revenue by Mix and Market Sector For the Three Months Ended Dollars in Millions Jun 30, 2023 Mar 31, 2023 Jun 30, 2022 23% Q2-23 20% Sector Mix % Revenue Mix % Revenue Q/Q Growth Mix % Revenue Y/Y Growth Medical 20% $145 20% $137 6% 23% $166 (13%)
Slide 6: Sector Results Excluding Supply Chain Premium
Sector Results Excluding Supply Chain Premium Q2-23 Results ($MM) Supply chain Revenue adjusted Year-over-Year growth Total Revenue premiums (SCP) for SCP adjusted for SCP Medical $145 $(2) $143 14% Semi-Cap $164 $(1) $163 (4%) A&D $80 $- $80 (10%) Industrials $167 $(9) $158 28% Adv. Computing $81 $
Slide 7: Second Quarter 2023 Financial Summary
Second Quarter 2023 Financial Summary (Dollars in millions, except Jun 30, 2023 Mar 31, 2023 Q/Q Jun 31, 2022 Y/Y EPS) Net Sales $733 $695 5% $728 1% GAAP Gross Margin 9.1% 9.2% (10) bps 8.1% 100 bps GAAP SG&A $37.7 $38.2 (1%) $35.8 5% GAAP Operating Margin 3.3% 3.3% 0 bps 3.1% 20 bps GAAP Diluted E
Slide 8: Non-GAAP Financial Summary Excluding Supply Chain Premiums
Non-GAAP Financial Summary Excluding Supply Chain Premiums (Dollars in millions, except EPS) See APPENDIX 1 and APPENDIX 2 for reconciliations of GAAP to non-GAAP Financial Results | 8
Slide 9: Cash Conversion Cycle Update
Cash Conversion Cycle Update Q2-23 Q1-23 Q4-22 Q3-22 Q2-22 Accounts Receivable Days 59 60 59 56 55 Contract Asset Days 23 25 22 22 22 Inventory Days 102 111 97 95 90 Accounts Payable Days (56) (60) (56) (67) (67) Advance Payments from (25) (27) (26) (27) (23) Customers Days Cash Conversion Cycle 103
Slide 10: Liquidity and Capital Allocation
Liquidity and Capital Allocation For the Three Months Ended • Recurring quarterly dividend of Jun 30, Mar 31, Jun 30, $0.165 per share totaling $5.9 Cash (In millions) 2023 2023 2022 million paid in April 2023 Cash Flows from (used in) Operations $25 ($25) ($25) • No share repurchases in the FCF (1)
Slide 11: Third Quarter 2023 Guidance
Third Quarter 2023 Guidance Q2-2023 Net Sales* $680 - $720 million Diluted EPS – GAAP $0.45 - $0.51 Diluted EPS – non-GAAP $0.51 - $0.59 Operating Margin – non-GAAP 4.7% - 4.9% Other Expenses, Net ~ $9 million Effective Tax Rate 19% - 21% Weighted Average Shares ~ 35.7 million * Guidance does not in
Slide 12: Business Trends - Jeff Benck, CEO
Business Trends Jeff Benck - CEO | 12
Slide 13: Sector Outlook
Sector Outlook* Q3-23 FY2023 Sector Commentary Q/Q Y/Y • Benefitting from medical device demand from existing programs and new Medical ramps • Strength in defibrillators sub-sector • Broader market recovery timing is pushing deeper into 2024 Semi-Cap • We expect to continue to out-perform the market
Slide 14: Summary
Summary • Delivered 12% revenue growth* and 28% non-GAAP operating income growth year-on-year • Generated positive operating and free cash flow • Expecting growth in at least 4 of 6 sectors for fiscal 2023* • Investing in Semi-Cap for long-term secular growth • Supply chain expected to continue to i
Slide 15: Appendix
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Slide 16: APPENDIX 1 - Reconciliation of GAAP to non-GAAP Financial Results
APPENDIX 1 - Reconciliation of GAAP to non-GAAP Financial Results (Dollars in Thousands, Except Per Share Data) – (UNAUDITED) Three Months Ended Six Months Ended June 30, Mar 31, June 30, June 30, 2023 2023 2022 2023 2022 Income from operations (GAAP) $ 24,481 $ 22,742 $ 22,432 $ 47,223 $ 37,839 Amo
Slide 17: APPENDIX 2 - Reconciliation of Supply Chain Premiums
APPENDIX 2 - Reconciliation of Supply Chain Premiums (Dollars in Millions) – (UNAUDITED) Three Months Ended June 30, Mar 31, Dec 31, Sept 30, June 30, Mar 31, Mar 31, 2023 2023 2022 2022 2022 2022 2021 Sales (GAAP) $ 733 $ 695 $ 751 $ 772 $ 728 $ 636 $ 506 Adjustment for supply chain premiums (17) (
Slide 18: APPENDIX 3 - Reconciliation of Supply Chain Premiums by Sector
APPENDIX 3 - Reconciliation of Supply Chain Premiums by Sector (Dollars in Millions) – (UNAUDITED) Three Months Ended Jun 30, Mar 31, Jun 30, Sales (GAAP) 2023 2023 2022 Medical $ 145 $ 137 $ 166 Semi-Cap 164 149 175 A&D 80 79 90 Industrials 167 144 159 Advanced Computing 81 96 69 Next Gen Comms 96