Slide 1: Benchmark Electronics Third Quarter 2024 Financial Results
Benchmark Benchmark Electronics Third Quarter 2024 Financial Results October 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: Third Quarter 2024 Results
Third Quarter 2024 Results • Revenue of $658M was above the mid-point of guidance - Double-digit growth in Semi-Cap year-over-year - Offset by anticipated softness in Medical and AC&C • GAAP EPS of $0.42 and non-GAAP* EPS of $0.57 • GAAP and non-GAAP gross margin of 10.1% and 10.2%, respectively, ea
Slide 4: Third Quarter 2024 Revenue by Market Sector
Third Quarter 2024 Revenue by Market Sector 17% Revenue by Mix and Market Sector 16% For the Three Months Ended (Dollars in Millions) Sept 30, 2024 June 30, 2024 Sept 30, 2023 16% Q3-24 28% Sector Mix % Revenue Mix % Revenue Q/Q Mix % Revenue Y/Y Semi-Cap 28% $188 26% $172 9% 23% $165 13% Complex In
Slide 5: Third Quarter 2024 Financial Summary
Third Quarter 2024 Financial Summary (Dollars in Millions, except Sept 30, 2024 June 30, 2024 Q/Q Sept 30, 2023 Y/Y EPS) Net Sales $658 $666 (1%) $720 (9%) GAAP Gross Margin 10.1% 10.2% (10) bps 9.6% 50 bps GAAP SG&A $36.6 $38.0 (4%) $35.5 3% GAAP Operating Margin 4.3% 4.1% 20 bps 4.2% 10 bps GAAP D
Slide 6: 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 | 6
Slide 7: Cash Conversion Cycle Update
Cash Conversion Cycle Update Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Accounts Receivable Days 51 51 56 59 60 Contract Asset Days 26 25 24 23 24 Inventory Days 89 90 94 99 100 Accounts Payable Days (54) (52) (52) (53) (53) Advance Payments from Customers Days (22) (24) (28) (30) (26) Cash Conversion Cycle Days
Slide 8: Liquidity Update
Liquidity Update For the Three Months Ended • Continued inventory reductions Sept 30, June 30, Sept 30, supporting free cash flow (In Millions) 2024 2024 2023 $39 $56 $38 • Further reduced revolving debt Cash Flows from Operations balance FCF (1) $29 $47 $18 Cash $324 $310 $261 • Strong balance shee
Slide 9: Capital Allocation Update
Capital Allocation Update Dividends Debt Management Share Repurchases • Quarterly dividend of $0.165 • Reduced revolving debt • Repurchased $5.1 million in per share totaling $6.0 million balance by $10 million stock during the quarter at an paid in July 2024 sequentially average price of $40.27 • I
Slide 10: Fourth Quarter 2024 Guidance
Fourth Quarter 2024 Guidance Q4 2024 Net Sales $640 - $680 million Gross Margin – non-GAAP ~10.2% Operating Margin – non-GAAP 4.9% – 5.1% Other Expenses, Net ~$6.4 million Restructuring Charges $1.0 million Amortization of Intangibles $1.2 million Stock-Based Compensation Expense $3.5 million Effect
Slide 11: Business Trends
Business Trends Jeff Benck - CEO | 11
Slide 12: Sector Outlook
Sector Outlook Q4-24 2024 Sector Commentary Q/Q Y/Y • Expect >10% growth in 2024 and further new program ramps in 2025 Semi-Cap • Memory market continues to lead the recovery, logic slower to rebound • Grand opening of new Precision Technology site in Penang in 3Q • Expect flat year-over-year in 2H2
Slide 13: Summary: Progress Toward Key Objectives
Summary Progress Toward Key Objectives 1. Manage demand volatility while continuing to progress toward improved profitability - Delivered year-on-year non-GAAP Operating Margin expansion for 16th consecutive quarter 2. Continue to work down inventory - Reduced inventory by ~$18M sequentially and $14
Slide 14: Appendix
Appendix Benchmark 14 Copyright © 2024 by original author Benchmark Electronics, Inc. Not to be reproduced, distributed, or used in any means without written permission by Benchmark.
Slide 15: 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 Nine Months Ended September 30, June 30, March 31, December 31, September 30, June 30, March 31, September 30, 2024 2024 2024 2023 2023 2023 2023 2024 2023