Slide 1: Fourth Quarter and Fiscal Year 2022 Financial Results
Benchmark Benchmark Electronics Fourth Quarter and Fiscal Year 2022 Financial Results February 1, 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: Q4 2022 Results
Q4 2022 Results • Achieved 19% year-over-year revenue growth to $751 million, with double-digit growth in 4 of 6 sectors • GAAP and non-GAAP gross margin of 9.6% • GAAP and non-GAAP operating margin of 3.6% and 4.3%, respectively • GAAP and non-GAAP EPS of $0.60 • All items below adjusted for supply
Slide 4: FY 2022 Results
FY 2022 Results • Achieved record revenue of $2.9 billion, up 28% year-on-year, with double-digit growth in 5 of 6 sectors • GAAP and non-GAAP gross margin of 8.8% • GAAP and non-GAAP operating margin of 3.1% and 3.6%, respectively • GAAP EPS of $1.91 and non-GAAP EPS of $2.09 • All items below adju
Slide 5: Roop Lakkaraju, Chief Financial Officer
Roop Lakkaraju Chief Financial Officer | 5
Slide 6: Fourth Quarter Reported Revenue by Market Sector
Fourth Quarter Reported Revenue by Market Sector 14% 12% Revenue by Mix and Market Sector For the Three Months Ended Dollars in Millions Dec 31, 2022 Sept 30, 2022 Dec 31, 2021 Q4-22 19% Q/Q Y/Y 19% Sector Mix % Revenue Mix % Revenue Growth Mix % Revenue Growth Medical 19% $144 21% $166 (13%) 20% $1
Slide 7: Fourth Quarter 2022 Financial Summary
Fourth Quarter 2022 Financial Summary (Dollars in millions, except Dec 31, 2022 Sept 30, 2022 Q/Q Dec 31, 2021 Y/Y EPS) Net Sales $751 $772 (3%) $633 19% GAAP Gross Margin 9.6% 8.7% 90 bps 9.8% (20) bps GAAP SG&A $39.5 $38.5 3% $37.7 5% GAAP Operating Margin 3.6% 3.3% 30 bps 2.9% 70 bps GAAP Diluted
Slide 8: 2022 Reported Revenue by Market Sector
2022 Reported Revenue by Market Sector 11% 10% Revenue by Mix and Market Sector For the Twelve Months Ended 21% Dollars in Millions Dec. 31, 2022 Dec. 31, 2021 CY-22 21% Sector Mix % Revenue Mix % Revenue Y/Y Medical 21% $593 20% $462 28% Semi-Cap 25% $722 24% $549 31% 25% 12% Aerospace & Defense 12
Slide 9: Fiscal Year 2022 Financial Summary
Fiscal Year 2022 Financial Summary (Dollars in millions, except Dec. 31, 2022 Dec. 31, 2021 ‘21 to ‘22 change Y/Y EPS) Net Sales $2,886 $2,255 $631 28% GAAP Gross Margin 8.8% 9.1% (30) bps GAAP SG&A $150.2 $136.7 $13.5 10% GAAP Operating Margin 3.1% 2.4% 70 bps GAAP Diluted EPS $1.91 $0.99 $0.92 93%
Slide 10: Non-GAAP Financial Summary Excluding Supply Chain Premiums
Non-GAAP Financial Summary Excluding Supply Chain Premiums (Dollars in millions, except EPS) Sales Operating Income and Margin 4.6% 4.1% 4.0% $74 $46 $91 3.7% 4.3% 3.5% 3.6% $41 $57 3.8% $10 $26 3.6% $4 3.4% 3.3% 2.6% 3.1% $33 2.3% $28 $24 $23 $698 $705 2.5% $21 $592 $637 $19 $535 $546 $579 2.3% $50
Slide 11: Cash Conversion Cycle Update
Cash Conversion Cycle Update Q4-22 Q3-22 Q2-22 Q1-22 Q4-21 Q3-21 Accounts Receivable Days 59 56 55 54 51 49 Contract Asset Days 22 22 22 24 22 25 Inventory Days 97 95 90 95 82 83 Accounts Payable Days (56) (67) (67) (71) (67) (70) Advance Payments from (26) (27) (23) (20) (19) (16) Customers Days Ca
Slide 12: Liquidity and Capital Resources
Liquidity and Capital Resources For the Twelve For the Three Months Ended Months Ended Dec. 31, Dec. 30, Dec. 31, Sept. 30, Dec. 30, • Strong balance sheet and Cash (In millions) 2022 2021 2022 2022 2021 appropriate debt structure Cash Flows from (used in) ($177) ($3) ($53) ($31) ($1) • Refinanced c
Slide 13: Capital Allocation Update
Capital Allocation Update • FY’22: paid $47M in capital expenditures Capital • Since 2018 invested $227M in additions to property, plant and equipment and software Expenditures • Strategic capital expenditures for future organic growth • FY’22: paid cash dividends of $23M Cash • Since 2018 paid cash
Slide 14: First Quarter and Fiscal Year 2023 Update
First Quarter and Fiscal Year 2023 Update Q1:2023 Net Sales* $640 - $680 million Diluted EPS – GAAP $0.35 - $0.40 FY 2023 Diluted EPS – non-GAAP $0.39 - $0.45 Net Sales Growth * 7 – 9% Operating Margin – non-GAAP 3.6% - 3.8.% Diluted EPS – GAAP $1.96 - $2.06 Other Expenses, Net $6 million Diluted EP
Slide 15: Business Trends
Business Trends Jeff Benck - CEO | 15
Slide 16: Sector Year-Over-Year Outlook
Sector Year-Over-Year Outlook* Fiscal Year 2022 Results ($MM) Outlook * Supply chain Revenue Revenue growth Total Revenue premiums adjusted for adjusted for Q1:23 FY2023 Sector Commentary (SCP) SCP * SCP* • Memory weakness and trade restrictions are impacting current demand and visibility Semi-Cap $
Slide 17: Q4-22 New Business Wins
Q4-22 New Business Wins • Cosmetic surgery treatment system (Manufacturing) Medical • Minimally invasive surgical robotic platform (Design) • Novel rapid cancer diagnostics solution (Design) • Wafer handling equipment (Manufacturing) Semi-Cap • Test development solutions supporting metrology and lit
Slide 18: Highlights
Highlights • Executed through adversity, culminating in record results in 2022 • Strategically diversified portfolio enabled solid growth in 5 of 6 sectors in 2022* • Supply chain remains a challenge, but continued improvement expected in 2023 • Expecting growth in at least 4 of 6 sectors in 2023* •
Slide 19: Appendix
Appendix Benchmark 19 Copyright © 2023 by original author Benchmark Electronics, Inc. Not to be reproduced, distributed, or used in any means without written permission by Benchmark.
Slide 20: 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 Year Ended Dec 31, Sept 30, June 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, 2022 2022 2022 2022 2021 2021 2021 2021 2022 2021 Income from operatio
Slide 21: Reconciliation of Supply Chain Premiums
APPENDIX 2 - Reconciliation of Supply Chain Premiums (Dollars in Millions) – (UNAUDITED) Three Months Ended Year Ended Dec 31, Sept 30, June 30, Mar 31, Dec 31, Sept 30, June 30, Mar 31, Dec 31, 2022 2022 2022 2022 2021 2021 2021 2021 2022 2021 Sales (GAAP) $ 751 $ 772 $ 728 $ 636 $ 633 $ 572 $ 545
Slide 22: Reconciliation of Supply Chain Premiums by Sector
APPENDIX 3 - Reconciliation of Supply Chain Premiums by Sector (Dollars in Millions) – (UNAUDITED) Year Ended Dec 31, Dec 31, Sales (GAAP) 2022 2021 Medical $ 593 $ 462 Semi-Cap 722 549 A&D 348 382 Industrials 593 428 Advanced Computing 310 199 Next Gen Comms 320 235 Total Sales (GAAP) $ 2,886 $ 2,2