Slide 1: Benchmark Electronics Q3-22 Earnings Results
Benchmark Electronics Q3-22 Earnings Results October 26, 2022
Slide 2: Forward-Looking Statements
Forward-Looking 2022 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. These forward-looking statements are identified as any statement that does
Slide 3: Q3-22 Overview
Q3-22 Overview Achieved 35% year-over-year revenue growth to $772 million Balanced strength led by Computing, Telco and Industrials sectors Realized GAAP and non-GAAP gross margin of 8.7% and 8.6% Realized GAAP and non-GAAP operating margin of 3.3% and 3.6% Excluding supply chain premiums, revenue g
Slide 4: Roop Lakkaraju, Chief Financial Officer
Roop Lakkaraju Chief Financial Officer
Slide 5: Third Quarter Revenue by Market Sector
Third Quarter Revenue by Market Sector Q3-22 Sept 30, 2022 Revenue by Mix and Market Sector June 30, 2022 Sept 30, 2021 For the Three Months Ended Dollars in Millions Higher-Value Markets Mix % Revenue Mix % Revenue Q/Q Growth Mix % Revenue Y/Y Growth Medical 21% $166 23% $166 0% 21% $118 41% Semi-C
Slide 6: Third Quarter 2022 Financial Summary
Third Quarter 2022 Financial Summary (In millions, except EPS) Sept 30, 2022 June 30, 2022 Q/Q Sept 30, 2021 Y/Y Net Sales $772 $728 6% $572 35% GAAP Gross Margin 8.7% 8.1% 60 bps 9.4% (70) bps GAAP SG&A $38.5 $35.8 8% $34.4 12% GAAP Operating Margin 3.3% 3.1% 20 bps 2.1% 120 bps GAAP Diluted EPS $0
Slide 7: Non-GAAP Financial Summary Excluding Supply Chain Premiums
Non-GAAP Financial Summary Excluding Supply Chain Premiums (In millions, except EPS) Gross Margin without pass-through revenue
Slide 8: Trended Non-GAAP Return on Invested Capital
Trended Non-GAAP Return on Invested Capital * ROIC grew by 53% between Q1:21 and Q3:22 Fueled by growth of 53% in revenue and 137% in operating income since Q1:22 Anticipating 10% or better ROIC exiting fiscal 2022 * Non-GAAP ROIC = (Non-GAAP TTM income from operations + Stock-based compensation – N
Slide 9: Cash Conversion Cycle Update
Cash Conversion Cycle Update Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Accounts Receivable Days 49 51 54 55 56 Contract Asset Days 25 22 24 22 22 Inventory Days 83 82 95 90 95 Accounts Payable Days (70) (67) (71) (67) (67) Advance Payments from Customers Days (16) (19) (20) (23) (27) Cash Conversion Cycle 71 69
Slide 10: Liquidity and Capital Resources
Liquidity and Capital Resources (1) Free cash flow (used) (FCF) defined as net cash provided by (used in) operations less capex Debt Structure (In millions) Sept 30, 2022 Senior Secured Term Loan $131 Revolving Credit Facility Drawn Amount $170 Strong balance sheet and available debt facilities Stra
Slide 11: Capital Allocation Update
Capital Allocation Update Dividends Quarterly dividend of $0.165 per share totaling $5.8 million paid in July 2022 Recurring quarterly dividend of $0.165 per share paid to shareholders as of September 30, 2022 on October 14, 2022 Recurring quarterly dividends to continue until further notice Share R
Slide 12: Fourth Quarter 2022 Guidance
Fourth Quarter 2022 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. Q4:2022 Guidance Net Sales $760 - $800 million Diluted EPS – GAAP $0.52 - $0.56 Diluted EPS – non-
Slide 13: 2022 Outlook
2022 Outlook Jeff Benck - CEO Benchmark. 13
Slide 14: Q3-22 New Business Wins
Q3-22 New Business Wins Medical Precision optical ultrasound system (Manufacturing) Automatic external defibrillator (Manufacturing) Cardiology treatment platform (Design) Semi-Cap Wafer surface conditioning tools (Manufacturing) Process control tools (Engineering) Automated vacuum curing tools (Man
Slide 15: Q4-22 Sector Outlook
Q4-22 Sector Outlook Medical CY2022 Revenue Semi-Cap A&D Industrials Computing Telco Sector Revenue Drivers Strong year-over-year growth fueled by recovery in existing programs and new ramps Continued impact from supply constraints Limited semi-cap demand softening due to memory weakness and new Chi
Slide 16: Expecting to Achieve Mid-Term Model 2022
Expecting to Achieve Mid-Term Model 2022 Mid-Term Model FY:22E Performance Excluding Supply Chain Premium Revenue growth at ~4x target rate Non-GAAP Gross Margin within the target range Operating Expenses achieved target Non-GAAP Operating Income achieved high end of range in Q3:22 and expected to e
Slide 17: Highlights
Highlights 2022 Mid-Term Model expected to be achieved for the full year Strong demand across market sectors Diversified portfolio with limited exposure to consumer or commoditized markets Anticipate 56% non-GAAP earnings growth in fiscal 2022 Well positioned for growth in 2023 and a return to posit
Slide 18: Appendix
Appendix Benchmark. 18
Slide 19: 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
Slide 20: Appendix - Reconciliation of Supply Chain Premiums
(Amounts in Millions) – (UNAUDITED) APPENDIX 2 - Reconciliation of Supply Chain Premiums