Slide 1: Benchmark Electronics First Quarter 2023 Earnings
Benchmark Benchmark Electronics First Quarter 2023 Earnings May 3, 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: First Quarter 2023 Results
First Quarter 2023 Results • Achieved 9% year-over-year revenue growth to $695 million, with double-digit growth in 3 of 6 sectors • GAAP and non-GAAP gross margin of 9.2% • GAAP and non-GAAP operating margin of 3.3% and 3.7%, respectively • GAAP and non-GAAP EPS of $0.35 and $0.42, respectively • A
Slide 4: Roop Lakkaraju, Chief Financial Officer
Roop Lakkaraju Chief Financial Officer | 4
Slide 5: First Quarter GAAP Revenue by Market Sector
First Quarter GAAP Revenue by Market Sector 13% 14% Revenue by Mix and Market Sector For the Three Months Ended Dollars in Millions Mar 31, 2023 Dec 31, 2022 Mar 31, 2022 21% Q1-23 20% Sector Medical Mix % 20% Revenue $137 Mix % Revenue 19% $144 Q/Q Growth (5%) Mix % 18% Revenue $117 Y/Y Growth 17%
Slide 6: Sector Results Excluding Supply Chain Premium
Sector Results Excluding Supply Chain Premium Q1-23 Results ($MM) Supply chain Revenue adjusted Year-over-Year growth Total Revenue premiums (SCP) for SCP adjusted for SCP Medical $137 $(5) $132 26% Semi-Cap $149 $(2) $147 (16)% A&D $79 $- $79 (2%) Industrials $144 $(8) $136 24% Adv. Computing $96 $
Slide 7: First Quarter 2023 Financial Summary
First Quarter 2023 Financial Summary (Dollars in millions, except Mar 31, 2023 Dec 31, 2022 Q/Q Mar 31, 2022 Y/Y EPS) Net Sales $695 $751 (7%) $636 9% GAAP Gross Margin 9.2% 9.6% (40) bps 9.1% 10 bps GAAP SG&A $38.2 $39.5 (3%) $36.3 5% GAAP Operating Margin 3.3% 3.6% (30) bps 2.4% 90 bps GAAP Dilute
Slide 8: Non-GAAP Financial Summary Excluding Supply Chain Premiums
Non-GAAP Financial Summary Excluding Supply Chain Premiums (Dollars in millions, except EPS) See APPENDIX 1 and APPENDIX 2 for reconciliations of GAAP to non-GAAP Financial Results | 8
Slide 9: Cash Conversion Cycle Update
Cash Conversion Cycle Update Q1-23 Q4-22 Q3-22 Q2-22 Q1-22 Accounts Receivable Days 60 59 56 55 54 Contract Asset Days 25 22 22 22 24 Inventory Days 111 97 95 90 95 Accounts Payable Days (60) (56) (67) (67) (71) Advance Payments from (27) (26) (27) (23) (20) Customers Days Cash Conversion Cycle 109
Slide 10: Liquidity and Capital Resources
Liquidity and Capital Resources For the Three Months Ended • Expanded revolver by $100M on Mar 31, Dec 31, Mar 31, existing terms Cash (In millions) 2023 2022 2022 • Cash Flow from Operations Cash Flows from (used in) Operations ($25) ($53) ($68) primarily impacted by inventory FCF (1) ($64) ($66) (
Slide 11: Capital Allocation Update
Capital Allocation Update Dividends Share Repurchases • Quarterly dividend of $0.165 per share totaling $5.8 • No Share repurchases in Q1 2023 million paid in January 2023 • Share repurchase program remaining authorization of • Recurring quarterly dividend of $0.165 per share $155 million as of Marc
Slide 12: Second Quarter 2023 Guidance
Second Quarter 2023 Guidance Q2-2023 Net Sales* $670 - $710 million Diluted EPS – GAAP $0.35 - $0.41 Diluted EPS – non-GAAP $0.43 - $0.49 Operating Margin – non-GAAP 3.9% - 4.1% Other Expenses, Net $7 million Effective Tax Rate 18% - 20% Weighted Average Shares ~ 35.6 million * Guidance does not inc
Slide 13: Business Trends
Business Trends Jeff Benck - CEO | 13
Slide 14: Sector Outlook
Sector Outlook* Q2-23 FY2023 Sector Commentary Q/Q Y/Y • Strong demand in existing programs and new ramps in progress Medical • Improving supply chain • New wins start to ramp in 2H-23 Semi-Cap • Currently anticipate sequentially flat to up through rest of the year • Commercial aero strength and imp
Slide 15: First Quarter 2023 New Business Wins
First Quarter 2023 New Business Wins • Automatic external defibrillator (Manufacturing) Medical • Minimally invasive surgical system (Manufacturing) • Next generation CT scanner platform (Manufacturing) • Wafer test platform (Design) Semi-Cap • Vacuum system (Design) • Commercial aerospace eVTOL sol
Slide 16: Summary
Summary • Published second annual sustainability report (bench.com/sustainability) • Delivered 17% revenue growth* and 21% non-GAAP operating income growth year-over-year • Strategically diversified portfolio enabled year-over-year growth in 4 of 6 sectors* • Expecting growth in at least 4 of 6 sect
Slide 17: Appendix
Appendix Benchmark 17 Copyright © 2023 by original author Benchmark Electronics, Inc. Not to be reproduced, distributed, or used in any means without written permission by Benchmark.
Slide 18: 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 Mar 31, Dec 31, Mar 31, 2023 2022 2022 Income from operations (GAAP) $ 22,742 $ 26,946 $ 15,407 Amortization of intangible assets 1,592 1,592 1,609 Restruc
Slide 19: Reconciliation of Supply Chain Premiums
APPENDIX 2 - Reconciliation of Supply Chain Premiums (Dollars in Millions) – (UNAUDITED) Three Months Ended Mar 31, Dec 31, Sept 30, June 30, Mar 31, Mar 31, 2023 2022 2022 2022 2022 2021 Sales (GAAP) $ 695 $ 751 $ 772 $ 728 $ 636 $ 506 Adjustment for supply chain premiums (18) (46) (74) (91) (57) (
Slide 20: Reconciliation of Supply Chain Premiums by Sector
APPENDIX 3 - Reconciliation of Supply Chain Premiums by Sector (Dollars in Millions) – (UNAUDITED) Three Months Ended Mar 31, Dec 31, Mar 31, Sales (GAAP) 2023 2022 2022 Medical $ 137 $ 144 $ 117 Semi-Cap 149 178 183 A&D 79 90 82 Industrials 144 143 137 Advanced Computing 96 92 55 Next Gen Comms 90