BHE
Benchmark Electronics
Fourth Quarter and Fiscal Year 2024 Results
January 29, 2025
Today's Speakers
Jeff Benck,
Bryan Schumaker,
President and CEO
EVP and CFO
Forward-Looking 2025 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 not relate strictly to historical or current facts and may include words such as "anticipate," "believe," "intend," "plan," "project," "forecast," "strategy," "position," "continue," "estimate," "expect," "may," "will," "could," "predict," and similar expressions of the negative or other variations thereof. In particular, statements, express or implied, concerning the Company's outlook and guidance for first quarter and fiscal year 2025 results, future operating results or margins, the ability to generate sales and income or cash flow, expected revenue mix, the Company's business strategy and strategic initiatives, the Company's repurchases of shares of its common stock, the Company's expectations regarding restructuring charges, stock-based compensation expense, amortization of intangibles, award of any tax incentives and capital expenditures, and the Company's intentions concerning the payment of dividends, among others, are forward-looking statements. Although the Company believes these statements are based on and derived from reasonable assumptions, they involve risks, uncertainties and assumptions that are beyond the Company's ability to control or predict, relating to operations, markets and the business environment generally, including those discussed under Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and in any of the Company's subsequent reports filed with the Securities and Exchange Commission. Events relating to the possibility of customer demand fluctuations, supply chain constraints, continuing inflationary pressures, the effects of foreign currency fluctuations and high interest rates, geopolitical uncertainties including continuing hostilities and tensions, trade restrictions and sanctions, or the ability to utilize the Company's manufacturing facilities at sufficient levels to cover its fixed operating costs, may have resulting impacts on the Company's business, financial condition, results of operations, and the Company's ability (or inability) to execute on its plans. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes, including the future results of the Company's operations, may vary materially from those indicated. Undue reliance should not be placed on any forward-looking statements. Forward-looking statements are not guarantees of performance. All forward-looking statements included in this document are based upon information available to the Company as of the date of this document, and the Company assumes no obligation to update.
Non-GAAP Financial Information
Management discloses certain non‐GAAP information to provide investors with additional information to analyze the Company's performance and underlying trends. These non-GAAP financial measures exclude restructuring charges, stock-based compensation expense, amortization of intangible assets acquired in business combinations, certain legal and other settlement losses (gains), customer insolvency losses (recoveries), asset impairments, other significant non-recurring costs and the related tax impacts of all of the above. A detailed reconciliation between GAAP results and results excluding certain items ("non-GAAP") is included in the following tables attached to this document. In situations where a non-GAAP reconciliation has not been provided, the Company was unable to provide such a reconciliation without unreasonable effort due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact‐ and the periods in which the non- GAAP adjustments may be recognized. Management uses non GAAP measures that exclude certain items in order to better assess operating performance and help investors compare results with our previous guidance. This document also references "free cash flow", a non-GAAP measure, which the Company defines as cash flow from operations‐ less additions to property, plant and equipment and purchased‐ software. The Company's non GAAP information‐ is not necessarily comparable to the non GAAP information used by other companies. Non GAAP information should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as a measure of the Company's profitability or liquidity. Readers should consider the types of events and transactions for which adjustments have been made.
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Fourth Quarter 2024 Results *
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Fiscal Year 2024 Results *
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Fourth Quarter 2024 Revenue by Market Sector
18% 13%
Revenue by Mix and Market Sector
18% Q4-24
21%
30%
(Dollars in Millions)
Q4-23
Q3-24
Q4-24
Sector
Revenue Mix %
Revenue Mix %
Revenue Mix %
Q/Q
Y/Y
Semi-Cap
$168
24%
$188
28%
$198
30%
6%
18%
Complex Industrials
$132
19%
$151
23%
$140
21%
(7%)
5%
Medical
$126
18%
$107
16%
$117
18%
9%
(7%)
A&D
$102
15%
$102
16%
$117
18%
15%
15%
AC&C
$163
24%
$110
17%
$85
13%
(23%)
(48%)
Semi-Cap
Complex Industrials
Medical
A&D
AC&C
Total Revenue
$691 100%
$658 100%
$657 100%
0%
(5%)
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Fourth Quarter 2024 Financial Summary *
(Dollars in Millions, except EPS)
Q4-23
Q3-24
Q4-24
Q/Q
Y/Y
Net Sales
$691
$658
$657
0%
(5%)
GAAP Gross Margin
10.3%
10.1%
10.3%
20 bps
0 bps
GAAP SG&A
$35.6
$36.6
$37.5
2%
5%
GAAP Operating Margin
4.6%
4.3%
4.3%
0 bps
(30) bps
GAAP Diluted EPS
$0.49
$0.42
$0.50
19%
2%
GAAP ROIC
7.3%
7.7%
7.7%
0 bps
40 bps
Non-GAAP Gross Margin
10.3%
10.2%
10.4%
20 bps
10 bps
Non-GAAP SG&A
$33.1
$32.3
$35.1
9%
6%
Non-GAAP Operating Margin
5.5%
5.3%
5.1%
(20) bps
(40) bps
Non-GAAP Diluted EPS
$0.65
$0.57
$0.61
7%
(6%)
Non-GAAP ROIC
9.3%
9.9%
9.9%
0 bps
60 bps
* See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results
GAAP ROIC = (GAAP TTM income from operations - GAAP Tax Impact) / (Average Invested Capital for last 5 quarters)
Non-GAAP ROIC = (non-GAAP TTM income from operations + Stock-based compensation - non-GAAP Tax Impact) ÷ [Average Invested Capital for last 5 quarters]
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Fiscal Year 2024 Revenue by Market Sector
18%
16%
17% FY-24 27%
22%
Semi-Cap
Complex Industrials
Medical
A&D
AC&C
Revenue by Mix and Market Sector
(Dollars in Millions)
FY 2023
FY 2024
Sector
Revenue
Mix %
Revenue
Mix %
Y/Y
Semi-Cap
$646
23%
$723
27%
12%
Complex Industrials
$596
21%
$573
22%
(4%)
Medical
$557
20%
$451
17%
(19%)
A&D
$362
13%
$434
16%
20%
AC&C
$678
23%
$475
18%
(30%)
Total Revenue
$2,839
100%
$2,656
100%
(6%)
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Fiscal Year 2024 Financial Summary *
(Dollars in Millions, except EPS)
FY 2023
FY 2024
Y/Y (%)
Net Sales
$2,839
$2,656
(6%)
GAAP Gross Margin
9.5%
10.2%
70 bps
GAAP SG&A
$147.0
$149.5
2%
GAAP Operating Margin
3.9%
4.1%
20 bps
GAAP Diluted EPS
$1.79
$1.72
(4%)
GAAP ROIC
7.3%
7.7%
40 bps
Non-GAAP Gross Margin
9.6%
10.2%
60 bps
Non-GAAP SG&A
$133.4
$136.0
2%
Non-GAAP Operating Margin
4.9%
5.1%
20 bps
Non-GAAP Diluted EPS
$2.38
$2.29
(4%)
Non-GAAP ROIC
9.3%
9.9%
60 bps
* See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results
GAAP ROIC = (GAAP TTM income from operations - GAAP Tax Impact) / (Average Invested Capital for last 5 quarters)
Non-GAAP ROIC = (non-GAAP TTM income from operations + Stock-Based Compensation - non-GAAP Tax Impact) ÷ [Average Invested Capital for last 5 quarters]
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Trended Non-GAAP Results*
(Dollars in Millions, except EPS)
Sales
Operating Income and Margin
5.5%
5.3%
5.1%
5.1%
4.9%
$691
Q4-23
$676
Q1-24
$666
Q2-24
$658
Q3-24
$657
Q4-24
$38
$33
$34
$35
$33
Q4-23
Q1-24
Q2-24
Q3-24
Q4-24
Non-GAAP operating income
Non-GAAP operating margin
Gross Profit and Margin
10.3%
10.2%
10.2%
10.4%
10.0%
$71
$68
$68
$67
$68
Q4-23
Q1-24
Q2-24
Q3-24
Q4-24
Non-GAAP gross profit
Non-GAAP gross margin
* See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results
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Net Income and Diluted EPS
$0.65
$0.61
$0.57
$0.57
$0.55
$23
$20
$21
$21
$22
Q4-23
Q1-24
Q2-24
Q3-24
Q4-24
Non-GAAP net income
Non-GAAP diluted EPS
Disclaimer
Benchmark Electronics Inc. published this content on January 29, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on January 29, 2025 at 23:09:03.236.