Slide 1: Benchmark Electronics Second Quarter 2024 Financial Results
Benchmark Benchmark Electronics Second Quarter 2024 Financial Results July 30, 2024 | 1
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking 2024 Statements Non-GAAP Financial Information This document contains forward-looking statements within the meaning of Section 27A of the Management discloses certain non‐GAAP information to provide investors with additional Securities Act of 1933, as amended and Section 21E of the S
Slide 3: Second Quarter 2024 Results
Second Quarter 2024 Results • Revenue of $666M was above guidance; roughly flat sequentially and down 9% year-over-year ‒ Year-over-year strength in Semi-Cap and A&D ‒ Offset by anticipated softness in Medical, AC&C and Industrials • GAAP EPS of $0.43 and non-GAAP* EPS of $0.57, above the high end o
Slide 4: Arvind Kamal, Interim Chief Financial Officer
Arvind Kamal Interim Chief Financial Officer | 4
Slide 5: Second Quarter 2024 Revenue by Market Sector
Second Quarter 2024 Revenue by Market Sector 20% Revenue by Mix and Market Sector For the Three Months Ended 16% (Dollars in Millions) Jun 30, 2024 Mar 31, 2024 Jun 30, 2023 Q2-24 26% Sector Mix % Revenue Mix % Revenue Q/Q Mix % Revenue Y/Y Semi-Cap 26% $172 25% $166 4% 22% $164 5% 17% Complex Indus
Slide 6: Second Quarter 2024 Financial Summary
Second Quarter 2024 Financial Summary (Dollars in Millions, except Jun 30, 2024 Mar 31, 2024 Q/Q Jun 30, 2023 Y/Y EPS) Net Sales $666 $676 (1%) $733 (9%) GAAP Gross Margin 10.2% 10.0% 20 bps 9.1% 110 bps GAAP SG&A $38.0 $37.3 2% $37.7 1% GAAP Operating Margin 4.1% 3.8% 30 bps 3.3% 80 bps GAAP Dilute
Slide 7: Trended Non-GAAP Results
Trended Non-GAAP* Results (Dollars in Millions, except EPS) * See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results | 7
Slide 8: Cash Conversion Cycle Update
Cash Conversion Cycle Update Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Accounts Receivable Days 51 56 59 60 59 Contract Asset Days 25 24 23 24 23 Inventory Days 90 94 99 100 102 Accounts Payable Days (52) (52) (53) (53) (56) Advance Payments from Customers Days (24) (28) (30) (26) (25) Cash Conversion Cycle Day
Slide 9: Liquidity Update
Liquidity Update For the Three Months Ended Jun 30, Mar 31, Jun 30, • Achieved positive net cash in the (In Millions) 2024 2024 2023 quarter as we continue to pay Cash Flows from Operations $56 $48 $25 down the revolver FCF (1) $47 $43 $16 • Continued inventory reductions Cash $310 $296 $245 support
Slide 10: Capital Allocation Update
Capital Allocation Update Dividends Share Repurchases • Quarterly dividend of $0.165 per share totaling $5.9 • No share repurchases in Q2 2024 million paid in April 2024 • Share repurchase program remaining authorization of • Recurring quarterly dividend of $0.165 per share $155 million as of June 3
Slide 11: Third Quarter 2024 Guidance
Third Quarter 2024 Guidance Q3 2024 Net Sales $630 - $670 million Gross Margin – non-GAAP ~10% Operating Margin – non-GAAP 4.8% – 5.0% Other Expenses, Net ~$6 million Restructuring Charges $1.0 million Amortization of Intangibles $1.2 million Stock-Based Compensation Expense $4.5 million Effective T
Slide 12: Business Trends - Jeff Benck, CEO
Business Trends Jeff Benck - CEO | 12
Slide 13: Sector Outlook
Sector Outlook Q3-24 FY2024 Sector Commentary Q/Q Y/Y • Expect high single to low double-digit growth in 2024 Semi-Cap • Memory market strength expected to be joined by logic in 2025 • Grand Opening of new Penang site in September • Demand reduction coupled with inventory rebalancing weighing on gro
Slide 14: Summary: Progress Toward 2025 Objectives
Summary Progress Toward 2025 Objectives 1. Manage volatility while continuing to progress to our target model profitability ‒ Delivered year-on-year expansion of non-GAAP Gross and Operating Margins in each quarter since we introduced our 2025 target model in Q4 2022 2. Continue to work down invento
Slide 15: Appendix
Appendix Benchmark 15 Copyright © 2024 by original author Benchmark Electronics, Inc. Not to be reproduced, distributed, or used in any means without written permission by Benchmark.
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, March 31, December 31, September 30, June 30, March 31, June 30, June 30, 2024 2024 2023 2023 2023 2023 2024 2023 Income from ope