Slide 1: First Quarter 2024 Financial Results
Benchmark Benchmark Electronics First Quarter 2024 Financial Results May 1, 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: First Quarter 2024 Results
First Quarter 2024 Results • Revenue of $676M with A&D and Semi-Cap growth offset by softness in Medical and Communications • GAAP and non-GAAP* gross margin of 10.0%, up 80 bps and 70 bps year-over-year, respectively • GAAP operating margin of 3.8% with non-GAAP* of 4.9%, up 50 bps year-over-year •
Slide 4: Arvind Kamal, Interim Chief Financial Officer
Arvind Kamal Interim Chief Financial Officer | 4
Slide 5: First Quarter 2024 Revenue by Market Sector
First Quarter 2024 Revenue by Market Sector 13% 8% Revenue by Mix and Market Sector For the Three Months Ended 16% (Dollars in Millions) Mar 31, 2024 Dec 31, 2023 Mar 31, 2023 Q1-24 25% Sector Mix % Revenue Mix % Revenue Q/Q Mix % Revenue Y/Y Semi-Cap 25% $166 24% $168 (1)% 21% $149 12% 17% Complex
Slide 6: First Quarter 2024 Financial Summary
First Quarter 2024 Financial Summary (Dollars in Millions, except Mar 31, 2024 Dec 31, 2023 Q/Q Mar 31, 2023 Y/Y EPS) Net Sales $676 $691 (2%) $695 (3%) GAAP Gross Margin 10.0% 10.3% (30) bps 9.2% 80 bps GAAP SG&A $37.3 $35.6 5% $38.2 (2%) GAAP Operating Margin 3.8% 4.6% (80) bps 3.3% 50 bps GAAP Di
Slide 7: Trended Non-GAAP Results with and without Stock-Based Compensation
Trended Non-GAAP Results with and without Stock-Based Compensation (Dollars in Millions, except EPS) See APPENDIX 1 and APPENDIX 2 for reconciliations of GAAP to non-GAAP Financial Results | 7
Slide 8: Cash Conversion Cycle Update
Cash Conversion Cycle Update Q1-24 Q4-23 Q3-23 Q2-23 Q1-23 Accounts Receivable Days 56 59 60 59 60 Contract Asset Days 24 23 24 23 25 Inventory Days 94 99 100 102 111 Accounts Payable Days (52) (53) (53) (56) (60) Advance Payments from Customers Days (28) (30) (26) (25) (27) Cash Conversion Cycle Da
Slide 9: Liquidity Update
Liquidity Update For the Three Months Ended Mar 31, Dec 31, Mar 31, • Strong balance sheet and (In Millions) 2024 2023 2023 leverage ratio Cash Flows from (used in) $48 $137 ($25) • Working down inventory to help Operations $43 $126 ($64) drive free cash flow FCF (1) Cash $296 $283 $212 • Continued
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 Q1 2024 million paid in January 2024 • Share repurchase program remaining authorization of • Recurring quarterly dividend of $0.165 per share $155 million as of Marc
Slide 11: Second Quarter 2024 Guidance
Second Quarter 2024 Guidance Q2 2024 Net Sales $615 - $655 million Gross Margin – non-GAAP ~10% Operating Margin – non-GAAP 4.7% - 4.9% Other Expenses, Net ~$7 million Restructuring Charges $2.0 million Amortization of Intangibles $1.2 million Stock-Based Compensation Expense $4.4 million Effective
Slide 12: Business Trends
Business Trends Jeff Benck - CEO | 12
Slide 13: Sector Outlook
Sector Outlook Q2-24 FY2024 Sector Commentary Q/Q Y/Y • We continue to out-perform the market due to share gain Semi-Cap • Several key new wins during the quarter across multiple customers • 2024 remains dynamic with market recovery expected in 2025 • Demand reduction coupled with inventory rebalanc
Slide 14: Summary: Progress Toward 2024 Objectives
Summary Progress Toward 2024 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 March 31, December 31, March 31, 2024 2023 2023 Income from operations (GAAP) $ 25,529 $ 32,100 $ 22,742 Restructuring charges and other costs 3,343 2,054
Slide 17: Appendix 2 - Reconciliation of Non-GAAP Results Excluding Stock-Based Compensation
APPENDIX 2 - Reconciliation of Non-GAAP Financial Results Excluding Stock-Based Compensation Expense to Previously Reported Amounts (Dollars in Thousands, Except Per Share Data) – (UNAUDITED) Three Months Ended Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, 2024 (1) 2023 2023 2023 2023 Non-GAAP income from