BHE Benchmark Electronics Inc

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 31, 2023

 

 

BENCHMARK ELECTRONICS, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Texas			001-10560	74-2211011
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
56 South Rockford Drive
Tempe, Arizona				85288
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (623) 300-7000

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.10 per share		BHE		The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

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Item 2.02 Results of Operations and Financial Condition.

On July 31, 2023, Benchmark Electronics, Inc. (the “Company”) issued a press release announcing its results of operations for the quarter ended June 30, 2023. A copy of the press release and accompanying investor presentation are attached hereto as Exhibits 99.1 and 99.2, respectively, and incorporated by reference herein. The information disclosed under this Item 2.02, including Exhibits 99.1 and 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
99.1		Press release, dated July 31, 2023
99.2		Investor presentation, dated July 31, 2023
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			BENCHMARK ELECTRONICS, INC.
Date:	July 31, 2023	By:	/s/ Stephen J. Beaver
			Stephen J. Beaver, Esq. Senior Vice President, General Counsel and Chief Legal Officer

 

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Exhibit 99.1

FOR IMMEDIATE RELEASE

 

BENCHMARK REPORTS SECOND QUARTER 2023 RESULTS

 

Second quarter 2023 results:

 

TEMPE, AZ, July 31, 2023 – Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the second quarter ended June 30, 2023.

 

		Three Months Ended
		June 30,				Mar 31,				June 30,
In millions, except EPS		2023				2023				2022
Sales		$	733			$	695			$	728
Net income		$	14			$	12			$	17
Income from operations		$	24			$	23			$	22
Net income – non-GAAP(1)		$	17			$	15			$	18
Income from operations – non-GAAP(1)		$	29			$	26			$	23
Diluted earnings per share		$	0.39			$	0.35			$	0.49
Diluted EPS – non-GAAP(1)		$	0.48			$	0.42			$	0.50
Operating margin			3.3	%			3.3	%			3.1	%
Operating margin – non-GAAP(1)			4.0	%			3.7	%			3.1	%

 

(1) A reconciliation of GAAP and non-GAAP results is included below.

 

“Benchmark delivered a strong quarter, exceeding the high end of our guidance ranges on revenue and non-GAAP operating income. Our team’s ability to navigate continued supply chain challenges and progress on operational efficiencies enabled us to deliver these results,” said Jeff Benck, Benchmark’s President and CEO.

Benck continued “As we enter the second half, we are confident that our diversified portfolio and investments in future growth position us to both navigate the dynamic near-term macro environment and capture incremental share in tomorrow’s growth markets.”

 

Cash Conversion Cycle

		June 30,				Mar 31,				June 30,
		2023				2023				2022
Accounts receivable days			59				60				55
Contract asset days			23				25				22
Inventory days			102				111				90
Accounts payable days			(56	)			(60	)			(67	)
Advance payments from customers days			(25	)			(27	)			(23	)
Cash Conversion Cycle days			103				109				77

 

 

 

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Second Quarter 2023 Industry Sector Update

Revenue and percentage of sales by industry sector (in millions) were as follows.

 

		June 30,								Mar 31,								June 30,
		2023								2023								2022
Medical		$	145				20	%		$	137				20	%		$	166				23	%
Semi-Cap			164				22				149				21				175				24
A&D			80				11				79				11				90				12
Industrials			167				23				144				21				159				22
Advanced Computing			81				11				96				14				69				10
Next Gen Communications			96				13				90				13				69				9
Total		$	733				100	%		$	695				100	%		$	728				100	%

 

Overall, revenues were up 1% year-over-year from strength in the Industrials, Advanced Computing and Next Gen Communications sectors.

 

Third Quarter 2023 Guidance

 

Restructuring charges are expected to range between $1.1 million and $1.5 million in the third quarter and the amortization of intangibles is expected to be $1.6 million in the third quarter.

 

Second Quarter 2023 Earnings Conference Call

The Company will host a conference call to discuss the results today at 5:00 p.m. Eastern Time. The live webcast of the call and accompanying reference materials will be accessible by logging on to the Company's website at www.bench.com. A replay of the broadcast will also be available on the Company's website.

 

About Benchmark Electronics, Inc.

Benchmark provides comprehensive solutions across the entire product life cycle by leading through its innovative technology and engineering design services, leveraging its optimized global supply chain and delivering world-class manufacturing services in the following industries: commercial aerospace, defense, advanced computing, next generation telecommunications, complex industrials, medical, and semiconductor capital equipment. Benchmark's global operations include facilities in seven countries and its common shares trade on the New York Stock Exchange under the symbol BHE.

 

For More Information, Please Contact:

Paul Mansky, Investor Relations and Corporate Development

512-580-2719 or paul.mansky@bench.com

 

 

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Forward-Looking Statements

This press release 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 third quarter and fiscal year 2023 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 and amortization of intangibles, 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, 2022, 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 trade restrictions, 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 Measures

Management discloses non‐GAAP information to provide investors with additional information to analyze the Company’s performance and underlying trends. 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”, 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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Benchmark Electronics, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Income

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2023				2022				2023				2022
Sales		$	733,232			$	728,029			$	1,427,927			$	1,364,112
Cost of sales			666,201				669,273				1,296,938				1,247,754
Gross profit			67,031				58,756				130,989				116,358
Selling, general and administrative expenses			37,672				35,842				75,870				72,131
Amortization of intangible assets			1,591				1,592				3,183				3,201
Restructuring charges and other costs (income)			3,287				(1,110	)			4,713				3,187
Income from operations			24,481				22,432				47,223				37,839
Interest expense			(8,258	)			(2,185	)			(14,708	)			(3,935	)
Interest income			1,622				261				2,880				391
Other income (expense), net			61				784				(2,104	)			490
Income before income taxes			17,906				21,292				33,291				34,785
Income tax expense			3,915				4,071				6,940				6,604
Net income		$	13,991			$	17,221			$	26,351			$	28,181
Earnings per share:
Basic		$	0.39			$	0.49			$	0.74			$	0.80
Diluted		$	0.39			$	0.49			$	0.74			$	0.79
Weighted-average number of shares used in calculating earnings per share:
Basic			35,618				35,157				35,478				35,201
Diluted			35,676				35,336				35,730				35,616

 

 

 

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Benchmark Electronics, Inc. and Subsidiaries

 

Condensed Consolidated Balance Sheets

(UNAUDITED)

(in thousands)

 

		June 30,				December 31,
		2023				2022
Assets
Current assets:
Cash and cash equivalents		$	244,587			$	207,430
Restricted cash			743				—
Accounts receivable, net			484,648				491,957
Contract assets			185,877				183,613
Inventories			756,391				727,749
Other current assets			48,815				41,400
Total current assets			1,721,061				1,652,149
Property, plant and equipment, net			222,245				211,478
Operating lease right-of-use assets			92,657				93,081
Goodwill and other, net			271,500				270,623
Total assets		$	2,307,463			$	2,227,331
Liabilities and Shareholders’ Equity
Current liabilities:
Current installments of long-term debt		$	3,458			$	4,275
Accounts payable			417,406				424,272
Advance payments from customers			185,677				197,937
Accrued liabilities			115,380				122,652
Total current liabilities			721,921				749,136
Long-term debt, less current installments			423,967				320,675
Operating lease liabilities			85,343				86,687
Other long-term liabilities			28,503				44,417
Shareholders’ equity			1,047,729				1,026,416
Total liabilities and shareholders’ equity		$	2,307,463			$	2,227,331

 

5

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Benchmark Electronics, Inc. and Subsidiaries

 

Condensed Consolidated Statement of Cash Flows

(in thousands)

(UNAUDITED)

 

		Six Months Ended
		June 30,
		2023				2022
Cash flows from operating activities:
Net income		$	26,351			$	28,181
Depreciation and amortization			22,549				21,862
Stock-based compensation expense			8,657				8,487
Accounts receivable			6,359				(91,200	)
Contract assets			(2,264	)			(23,929	)
Inventories			(28,096	)			(146,178	)
Accounts payable			9,499				69,943
Advance payments from customers			(12,260	)			55,433
Other changes in working capital and other, net			(31,163	)			(16,109	)
Net cash used in operations			(368	)			(93,510	)
Cash flows from investing activities:
Additions to property, plant and equipment and software			(47,049	)			(24,971	)
Other investing activities, net			585				5,657
Net cash used in investing activities			(46,464	)			(19,314	)
Cash flows from financing activities:
Share repurchases			—				(9,391	)
Net debt activity			102,237				134,363
Other financing activities, net			(17,296	)			(14,183	)
Net cash provided by financing activities			84,941				110,789
Effect of exchange rate changes			(209	)			(5,795	)
Net increase (decrease) in cash and cash equivalents and restricted cash			37,900				(7,830	)
Cash and cash equivalents and restricted cash at beginning of year			207,430				271,749
Cash and cash equivalents and restricted cash at end of period		$	245,330			$	263,919

 

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Benchmark Electronics, Inc. and Subsidiaries

 

Reconciliation of GAAP to Non-GAAP Financial Results

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)

 

		Three Months Ended												Six Months Ended
		June 30,				Mar 31,				June 30,				June 30,
		2023				2023				2022				2023				2022
Income from operations (GAAP)		$	24,481			$	22,742			$	22,432			$	47,223			$	37,839
Amortization of intangible assets			1,591				1,592				1,592				3,183				3,201
Restructuring charges and other costs			2,364				1,426				1,266				3,790				3,580
Gain on assets held for sale			—				—				(2,376	)			—				(393	)
Asset impairment			923				—				—				923				—
Non-GAAP income from operations		$	29,359			$	25,760			$	22,914			$	55,119			$	44,227
GAAP operating margin			3.3	%			3.3	%			3.1	%			3.3	%			2.8	%
Non-GAAP operating margin			4.0	%			3.7	%			3.1	%			3.9	%			3.2	%
Gross Profit (GAAP)		$	67,031			$	63,958			$	58,756			$	130,989			$	116,358
Non-GAAP gross profit		$	67,031			$	63,958			$	58,756			$	130,989			$	116,358
GAAP gross margin			9.1	%			9.2	%			8.1	%			9.2	%			8.5	%
Non-GAAP gross margin			9.1	%			9.2	%			8.1	%			9.2	%			8.5	%
Selling, general and administrative expenses		$	37,672			$	38,198			$	35,842			$	75,870			$	72,131
Non-GAAP selling, general and administrative expenses		$	37,672			$	38,198			$	35,842			$	75,870			$	72,131
Net income (GAAP)		$	13,991			$	12,360			$	17,221			$	26,351			$	28,181
Amortization of intangible assets			1,591				1,592				1,592				3,183				3,201
Restructuring charges and other costs			2,364				1,426				1,266				3,790				3,580
Gain on assets held for sale			—				—				(2,376	)			—				(393	)
Asset impairment			923				—				—				923				—
Settlement			(1,155	)			—				—				(1,155	)			—
Income tax adjustments(1)			(670	)			(516	)			(82	)			(1,186	)			(1,288	)
Non-GAAP net income		$	17,044			$	14,862			$	17,621			$	31,906			$	33,281
Diluted earnings per share:
Diluted (GAAP)		$	0.39			$	0.35			$	0.49			$	0.74			$	0.79
Diluted (Non-GAAP)		$	0.48			$	0.42			$	0.50			$	0.89			$	0.93
Weighted-average number of shares used in calculating diluted earnings per share:
Diluted (GAAP)			35,676				35,592				35,336				35,730				35,616
Diluted (Non-GAAP)			35,676				35,592				35,336				35,730				35,616
Net cash provided by (used in) operations		$	24,538			$	(24,906	)		$	(25,485	)		$	(368	)		$	(93,510	)
Additions to property, plant and equipment and software			(8,318	)			(38,731	)			(6,996	)			(47,049	)			(24,971	)
Free cash flow (used)		$	16,220			$	(63,637	)		$	(32,481	)		$	(47,417	)		$	(118,481	)

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Benchmark Electronics Second Quarter 2023 Earnings July 31, 2023

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Forward-Looking 2023 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 third quarter 2023 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 and amortization of intangibles, 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, 2022, 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 trade restrictions, 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 our 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 non‐GAAP information to provide investors with additional information to analyze the Company’s performance and underlying trends. 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”, 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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Second Quarter 2023 Results Total revenue of $733 million, up 6% sequentially and 1% year-over-year. Supply chain premiums (SCP)* reduced by $74 million year-over-year Excluding SCP, year-over-year revenue grew 12% with double-digit growth in 4 of 6 sectors GAAP and non-GAAP operating margin of 3.3% and 4.0%** Improved 20 and 90 basis points year-over-year, respectively GAAP EPS of $0.39 with non-GAAP EPS of $0.48**, the high end of guidance range Generated positive operating cash flow and free cash flow in the quarter * Component pass-through revenue for supply chain premiums (SCP) with no impact on non-GAAP operating income or EPS ** See APPENDIX 1 for a reconciliation of GAAP to nonGAAP Financial Result

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Roop Lakkaraju Chief Financial Officer

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Second Quarter GAAP Revenue by Market Sector Q2-23 Jun 30, 2023 Revenue by Mix and Market Sector Mar 31, 2023 Jun 30, 2022 For the Three Months Ended Dollars in Millions Sector   Mix % Revenue   Mix % Revenue Q/Q Growth   Mix % Revenue Y/Y Growth Medical   20% $145   20% $137 6%   23% $166 (13%) Semi-Cap   22% $164   21% $149 11%   24% $175 (6%) Aerospace & Defense   11% $80   11% $79 1%   12% $90 (11%) Industrials   23% $167   21% $144 16%   22% $159 5% Advanced Computing   11% $81   14% $96 (15%)   10% $69 19% Next Gen Comms   13% $96   13% $90 6%   9% $69 38% Total Revenue 100% $733 100% $695 6% 100% $728 1%

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Sector Results Excluding Supply Chain Premium Q2-23 Results ($MM) Total Revenue Supply chain premiums (SCP) Revenue adjusted for SCP Year-over-Year growth adjusted for SCP Medical $145 $(2) $143 14% Semi-Cap $164 $(1) $163 (4%) A&D $80 $- $80 (10%) Industrials $167 $(9) $158 28% Adv. Computing $81 $- $81 19% Next Gen Comms $96 $(5) $91 53% See APPENDIX 3 for a reconciliation of GAAP Sales to non-GAAP Sales Adjusted for Supply Chain Premiums

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Second Quarter 2023 Financial Summary (Dollars in millions, except EPS) Jun 30, 2023 Mar 31, 2023 Q/Q Jun 31, 2022 Y/Y Net Sales $733 $695 5% $728 1% GAAP Gross Margin 9.1% 9.2% (10) bps 8.1% 100 bps GAAP SG&A $37.7 $38.2 (1%) $35.8 5% GAAP Operating Margin 3.3% 3.3% 0 bps 3.1% 20 bps GAAP Diluted EPS $0.39 $0.35 11% $0.49 (20%) GAAP ROIC 7.1% 7.4% (30) bps 6.3% 80 bps Net Sales $733 $695 5% $728 1% Non-GAAP Gross Margin 9.1% 9.2% (10) bps 8.1% 100 bps Non-GAAP SG&A $37.7 $38.2 (1%) $35.8 5% Non-GAAP Operating Margin 4.0% 3.7% 30 bps 3.1% 90 bps Non-GAAP Diluted EPS $0.48 $0.42 14% $0.50 (4%) Non-GAAP ROIC 9.5% 9.6% (10) bps 9.6% (10) 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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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

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Cash Conversion Cycle Update

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Liquidity and Capital Allocation (1) Free cash flow (FCF) defined as net cash provided by (used in) operations less capex. See APPENDIX 1. Debt Structure (In millions) Senior Secured Term Loan $129 Revolving Credit Facility Drawn Amount $300 Recurring quarterly dividend of $0.165 per share totaling $5.9 million paid in April 2023 No share repurchases in the quarter Remaining share repurchase authorization of $155 million as of June 30, 2023 For the Three Months Ended Cash (In millions) Jun 30, 2023 Mar 31, 2023 Jun 30, 2022 Cash Flows from (used in) Operations $25 ($25) ($25) FCF (1) $16 ($64) ($32) Cash $245 $212 $264 International $236 $192 $185 US $9 $20 $79

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Third Quarter 2023 Guidance Q2-2023 Net Sales* $680 - $720 million Diluted EPS – GAAP $0.45 - $0.51 Diluted EPS – non-GAAP $0.51 - $0.59 Operating Margin – non-GAAP 4.7% - 4.9% Other Expenses, Net ~ $9 million Effective Tax Rate 19% - 21% Weighted Average Shares ~ 35.7 million * Guidance does not include supply chain premium revenue This guidance takes into consideration all known constraints for the quarter and assumes no further significant interruptions to our supply base, operations or customers.

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Business Trends Jeff Benck - CEO

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Sector Outlook* * Excludes supply chain premiums (SCP) revenue in forecast and comparable period(s) Q3-23 Q/Q FY2023 Y/Y Sector Commentary Medical Benefitting from medical device demand from existing programs and new ramps Strength in defibrillators sub-sector Semi-Cap Broader market recovery timing is pushing deeper into 2024 We expect to continue to out-perform the market A&D New wins and program ramps drive 2023 growth Improving supply chain for commercial aero Industrials New customer revenues in test and measurement and energy efficiency Adv. Computing Major HPC program has been completed as of June 2023 New HPC win expected to ramp in Q4 Next Gen Comms Potential for comms infrastructure deployment push-out weighing on outlook See APPENDIX 3 for a reconciliation of GAAP to non-GAAP Financial Results

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Summary Delivered 12% revenue growth* and 28% non-GAAP operating income growth year-on-year Generated positive operating and free cash flow Expecting growth in at least 4 of 6 sectors for fiscal 2023* Investing in Semi-Cap for long-term secular growth Supply chain expected to continue to improve in second half * Excluding supply chain premium revenue in forecast and comparable period(s).

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Appendix

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(Dollars in Thousands, Except Per Share Data) – (UNAUDITED) APPENDIX 1 - Reconciliation of GAAP to non-GAAP Financial Results

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(Dollars in Millions) – (UNAUDITED) APPENDIX 2 - Reconciliation of Supply Chain Premiums

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(Dollars in Millions) – (UNAUDITED) APPENDIX 3 - Reconciliation of Supply Chain Premiums by Sector

v3.23.2

Document And Entity Information	Jul. 31, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 31, 2023
Entity Registrant Name	BENCHMARK ELECTRONICS, INC.
Entity Central Index Key	0000863436
Entity Emerging Growth Company	false
Securities Act File Number	001-10560
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	74-2211011
Entity Address, Address Line One	56 South Rockford Drive
Entity Address, City or Town	Tempe
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85288
City Area Code	(623)
Local Phone Number	300-7000
Entity Information, Former Legal or Registered Name	Not Applicable
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.10 per share
Trading Symbol	BHE
Security Exchange Name	NYSE

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