Slide 1: Q1 2016 Earnings Presentation
design develop deliver advanced technology Q1 - 2016 Earnings Presentation April 21, 2016
Slide 2: Forward-Looking Statements
design develop deliver advanced technology 2 Forward - Looking Statements This document contains forward - looking statements within the scope of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “expect,” “estimate,” “anticipate,” “predict” and similar expressions, and t
Slide 3: President and CEO Update
design develop deliver advanced technology 3 President and CEO Update
Slide 4: First Quarter 2016 Summary
design develop deliver advanced technology 4 First Quarter 2016 Summary ▪ Revenue at $549 millions and non - GAAP operating margin at 3.5%, which lagged expectations due to: − Lower - than - expected demand from our top computing customer − Late quarter industrial sector slowdown − Delayed qualifica
Slide 5: Strategic Plan Execution Highlights
design develop deliver advanced technology 5 Strategic Plan Execution Highlights Priorities ► 64% of revenues from higher - value markets (medical, industrial, and test & instrumentation) ► >10% HVM YoY growth in 2016 Q1 - 2016 Update Targets Portfolio Shift to Higher - Value Markets Margin Expansio
Slide 6: Q1 2016 New Business Wins by Segment
design develop deliver advanced technology 6 Q1 2016 New Business Wins by Segment ▪ Q1 2016: 27 new business bookings and 17 engineering projects ▪ Estimated annual revenue run rate between $110 - 140 million ▪ Continued new business wins in targeted markets Quarterly Estimated Annual Revenue Run Ra
Slide 7: Second Quarter 2016 Guidance
design develop deliver advanced technology 7 Guidance Net Sales (in millions) $570 – $600 Operating Margin – non - GAAP 3.6% – 4.0% Interest Expense (in millions) $2.3 million Effective Tax Rate 22% Diluted EPS – non - GAAP $0.29 – $0.33 ▪ Outlook is for the second quarter ending June 30, 2016. Seco
Slide 8: Q1 2016 Financial Highlights
design develop deliver advanced technology 8 Q1 2016 Financial Highlights
Slide 9: First Quarter 2016 Financial Summary
design develop deliver advanced technology 9 (In millions, except EPS) Mar 31 , 2016 Dec 31 , 2015 Mar 31 , 2015 Net Sales $549.2 $625.7 $620.9 Net Income – GAAP $11.1 $39.4 $14.2 Net Income – non - GAAP $13.2 $23.0 $17.8 Diluted EPS – GAAP $0.22 $0.77 $0.27 Diluted EPS – non - GAAP $0.26 $0.45 $0.3
Slide 10: Trending Operating Income
design develop deliver advanced technology 10 Trending Operating Income
Slide 11: Benchmark Results and Outlook by Market Segment
design develop deliver advanced technology 11 Higher - Value Markets Dec 31 , 2015 Mar 31 , 2016 Q2 - 16 Outlook (%) Industrials* 35% $223 39% $213 Up 8 - 12% Medical 15% $92 15% $83 Up High Single Digits Test & Instrumentation 8% $51 10% $53 Up Mid Single Digits Total Revenue $366 $349 Traditional
Slide 12: Balance Sheet and Cash Flows
design develop deliver advanced technology 12 Balance Sheet and Cash Flows (In millions) ) Mar 31 , 2016 Dec 31 , 2015 Mar 31, 2015 Cash $519.2* $466.0 $383.6 Debt $232.3 $235.2 $9.4 Cash Flows from (used in) Operating Activities $76.5 $28.1 ($10.9) Capital Expenditures $7.8 $5.2 $16.8 Depreciation
Slide 13: Working Capital Update
design develop deliver advanced technology 13 Mar 31 , 2016 Dec 31 , 2015 Accounts Receivable Days 68 69 Accounts Payable Days 39 40 Inventory Days 70 64 Cash Conversion Cycle Days 99 93 ▪ Cash Conversion Cycle days increased due to lower - than - expected demand ▪ Ongoing initiatives for working ca
Slide 14: Share Repurchases
design develop deliver advanced technology 14 Share Repurchases Continue to use U.S. cash for share buybacks $ 505 million returned to shareholders since 2007 ▪ $120 m illion remaining on authorized purchase plans Inception to 2015 2011 - 2016 Last 3 Years $US Stock Repurchases (M ) $505 $271 $155 B
Slide 15: Appendix
design develop deliver advanced technology 15 Appendix
Slide 16: Reconciliation of GAAP to non-GAAP Financial Results
design develop deliver advanced technology 16 Reconciliation of GAAP to non - GAAP Financial Results (Amounts in Thousands, Except Per Share Data) – (UNAUDITED) Mar 31, Dec 31, Mar 31, 2016 2015 2015 16,268$ 21,905$ 18,708$ 2,789 6,308 4,869 19,057$ 28,213$ 23,577$ 11,052$ 39,421$ 14,205$ 2,098 4,71
Slide 17: Additional Information and Where to Find It
design develop deliver advanced technology 17 Additional Information and Where to Find It Benchmark has filed a definitive proxy statement with the SEC with respect to the 2016 Annual Meeting and has mailed the definitive proxy statement and accompanying white proxy card to its shareholders. Benchma