Slide 1: Benchmark Electronics Q1-22 Earnings Results
Benchmark Electronics Q1-22 Earnings Results April 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: Q1-22 Overview
Q1-22 Overview Achieved 26% year-over-year revenue growth at $636 million - Driven by strength from Semi-cap and Industrials sectors Strategically invested in inventory to support customer demand Managing ongoing supply chain challenges and COVID impacts in Asia Realized Non-GAAP gross margin of 9.1
Slide 4: Q1-22 New Business Wins
Q1-22 New Business Wins Medical Ophthalmic therapy device (Design, Manufacturing) Image guided radiation platform (Manufacturing) Neurological monitoring system (Design) Semi-Cap Wafer Metrology system (Engineering) Chemical Mechanical Planarization modules (Manufacturing) Lithography sub-modules (E
Slide 5: Roop Lakkaraju, Chief Financial Officer
Roop Lakkaraju Chief Financial Officer
Slide 6: First Quarter Revenue by Market Sector
First Quarter Revenue by Market Sector Q1-22 Mar. 31, 2022 Revenue by Mix and Market Sector Dec. 31, 2021 Mar. 31, 2021 For the Three Months Ended Dollars in Millions Higher-Value Markets Mix % Revenue Mix % Revenue Q/Q Mix % Revenue Y/Y Medical 18% $117 20% $127 (8%) 21% $109 8% Semi-Cap 29% $183 2
Slide 7: First Quarter 2022 Financial Summary
First Quarter 2022 Financial Summary (In millions, except EPS) Mar. 31, 2022 Dec. 31, 2021 Q/Q Mar. 31, 2021 Y/Y Net Sales $636 $633 <1% $506 26% GAAP Gross Margin 9.1% 9.8% -70 bps 8.3% 80 bps GAAP SG&A $36.3 $37.7 -4% $30.5 19% GAAP Operating Margin 2.4% 2.9% -50 bps 2.4% 0 bps GAAP Diluted EPS $0
Slide 8: Cash Conversion Cycle Update
Cash Conversion Cycle Update Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Accounts Receivable Days 49 48 49 51 54 Contract Asset Days 26 26 25 22 24 Inventory Days 69 75 83 82 95 Accounts Payable Days (64) (69) (70) (67) (71) Advance Payments from Customers Days (15) (16) (16) (19) (20) Cash Conversion Cycle 65 64
Slide 9: Liquidity and Capital Resources
Liquidity and Capital Resources (1) Free cash flow (FCF) defined as net cash provided by (used in) operations less capex Debt Structure (In millions) Mar. 31, 2022 Senior Secured Term Loan $131 Revolving Credit Facility Drawn Amount $73 Strong balance sheet and available debt facilities Strategicall
Slide 10: Capital Allocation Update
Capital Allocation Update Dividends Quarterly dividend of $0.165 per share totaling $5.8 million paid in January 2022 Recurring quarterly dividend of $0.165 per share paid to shareholders as of March 31, 2022 on April 14, 2022 Recurring quarterly dividends to continue until further notice Share Repu
Slide 11: Second Quarter 2022 Guidance
Second 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. Guidance also assumes no material changes to end market conditions and our operations due to COVID
Slide 12: 2022 Outlook
2022 Outlook Jeff Benck - CEO Benchmark. 12
Slide 13: Q2-22 Sector Outlook
Q2-22 Sector Outlook Medical CY2022 Revenue Outlook Semi-Cap A&D Industrials Computing Telco CY2022 Sector Revenue Drivers Strong sequential growth fueled by recovery in existing programs and new ramps Outside service provider constraints effecting near-term revenue growth Continued demand strength
Slide 14: Strategic Objectives Progress Report
Strategic Objectives Progress Report Grew quarterly revenues 26% (largest quarter since Q4-18) Achieved 70% engineering services attach rate to EMS bookings Executing on planned program ramps 01 Grow Revenue 03 Grow Earnings Faster Than Revenue 02 Invest in Sustainable Infrastructure and Talent 2022
Slide 15: 2022 Mid-Term Target Model Progression
2022 Mid-Term Target Model Progression 2022 Mid-Term Model Mid-Term Model set in October 2020 to be achieved exiting 2022 Q1-22 achieved or out-performed three of our four objectives Revenue growth above target Highest revenue level since Q4-2018 Non-GAAP Operating Margin within the range aided by o
Slide 16: Highlights and 2022 Outlook
Highlights and 2022 Outlook Strong demand across all sectors Strong bookings momentum supports long term growth Executing through Semi-cap “super-cycle” Medical likely to be the highest growth sector Telco benefitting from early ramp of major broadband wins Strategically acquiring inventory to help
Slide 17: Appendix
Appendix Benchmark. 17
Slide 18: 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 Three Months Ended Mar 31, Dec 31, Mar 31, 2022 2021 2021 Income from operations (GAAP) $ 15,407 $ 18,635 $ 11,934 Amortization of intangible assets 1,609 1,591 1,598 Restruc