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): October 25, 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. ☐

 

Item 2.02 Results of Operations and Financial Condition.

On October 25, 2023, Benchmark Electronics, Inc. (the “Company”) issued a press release announcing its results of operations for the quarter ended September 30, 2023. A copy of the press release and accompanying investor presentation are attached hereto as Exhibits

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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 October 25, 2023
99.2		Investor presentation, dated October 25, 2023
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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:	October 25, 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 THIRD QUARTER 2023 RESULTS

 

Third quarter 2023 results:

 

TEMPE, AZ, October 25, 2023 – Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the third quarter ended September 30, 2023.

 

		Three Months Ended
		September 30,				June 30,				September 30,
In millions, except EPS		2023				2023				2022
Sales		$	720			$	733			$	772
Net income		$	20			$	14			$	19
Income from operations		$	30			$	24			$	25
Net income – non-GAAP(1)		$	21			$	17			$	20
Income from operations – non-GAAP(1)		$	34			$	29			$	28
Diluted earnings per share		$	0.57			$	0.39			$	0.53
Diluted EPS – non-GAAP(1)		$	0.57			$	0.48			$	0.57
Operating margin			4.2	%			3.3	%			3.3	%
Operating margin – non-GAAP(1)			4.7	%			4.0	%			3.6	%

 

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

 

“Benchmark’s strategy is to serve high-complexity growth opportunities within our targeted sectors. This focus, coupled with the team’s commitment to operational improvement, enabled us to deliver another set of strong results in the third quarter,” said Jeff Benck, Benchmark’s President and CEO.

Benck continued “I am proud of the team’s continued execution despite the dynamic market environment. Looking forward, we remain focused on delivering continued operating leverage and believe we are well positioned to capitalize on the opportunities in front of us.”

 

Cash Conversion Cycle

		September 30,				June 30,				September 30,
		2023				2023				2022
Accounts receivable days			60				59				56
Contract asset days			24				23				22
Inventory days			100				102				95
Accounts payable days			(53	)			(56	)			(67	)
Advance payments from customers days			(26	)			(25	)			(27	)
Cash Conversion Cycle days			105				103				79

 

 

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Third Quarter 2023 Industry Sector Update

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

 

		September 30,								June 30,								September 30,
		2023								2023								2022
Medical		$	149				21	%		$	145				20	%		$	166				21	%
Semi-Cap			165				23				164				22				186				24
A&D			100				14				80				11				86				11
Industrials			154				21				167				23				155				20
Advanced Computing			66				9				81				11				95				13
Next Gen Communications			86				12				96				13				84				11
Total		$	720				100	%		$	733				100	%		$	772				100	%

 

Revenue decreased quarter over quarter and year over year primarily due to a decrease in Advanced Computing of 19% and 30%, respectively, due to completion of a high performance compute program, partially offset by an increase in A&D of 24% and 16%, respectively.

 

Fourth Quarter 2023 Guidance

 

Restructuring charges are expected to range between $0.8 million and $1.2 million in the fourth quarter and the amortization of intangibles is expected to be $1.2 million in the fourth quarter.

 

Third 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

1-623-300-7052 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 fourth 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 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 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								Nine Months Ended
		September 30,								September 30,
		2023				2022				2023				2022
Sales		$	719,695			$	771,575			$	2,147,622			$	2,135,687
Cost of sales			650,618				704,825				1,947,556				1,952,579
Gross profit			69,077				66,750				200,066				183,108
Selling, general and administrative expenses			35,509				38,544				111,379				110,675
Amortization of intangible assets			1,592				1,591				4,775				4,792
Restructuring charges and other costs			1,635				1,331				6,348				4,518
Income from operations			30,341				25,284				77,564				63,123
Interest expense			(8,475	)			(3,493	)			(23,183	)			(7,428	)
Interest income			1,343				452				4,223				843
Other income, net			2,384				1,087				280				1,577
Income before income taxes			25,593				23,330				58,884				58,115
Income tax expense			5,181				4,501				12,121				11,105
Net income		$	20,412			$	18,829			$	46,763			$	47,010
Earnings per share:
Basic		$	0.57			$	0.54			$	1.32			$	1.34
Diluted		$	0.57			$	0.53			$	1.30			$	1.32
Weighted-average number of shares used in calculating earnings per share:
Basic			35,647				35,151				35,535				35,184
Diluted			35,876				35,348				35,879				35,604

 

 

 

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Benchmark Electronics, Inc. and Subsidiaries

 

Condensed Consolidated Balance Sheets

(UNAUDITED)

(in thousands)

 

		September 30,				December 31,
		2023				2022
Assets
Current assets:
Cash and cash equivalents		$	259,542			$	207,430
Restricted cash			1,218				—
Accounts receivable, net			477,685				491,957
Contract assets			190,085				183,613
Inventories			725,349				727,749
Other current assets			53,190				41,400
Total current assets			1,707,069				1,652,149
Property, plant and equipment, net			231,661				211,478
Operating lease right-of-use assets			122,104				93,081
Goodwill and other, net			272,311				270,623
Total assets		$	2,333,145			$	2,227,331
Liabilities and Shareholders’ Equity
Current liabilities:
Current installments of long-term debt		$	4,281			$	4,275
Accounts payable			382,170				424,272
Advance payments from customers			189,058				197,937
Accrued liabilities			123,595				122,652
Total current liabilities			699,104				749,136
Long-term debt, less current installments			428,231				320,675
Operating lease liabilities			114,279				86,687
Other long-term liabilities			28,482				44,417
Shareholders’ equity			1,063,049				1,026,416
Total liabilities and shareholders’ equity		$	2,333,145			$	2,227,331

 

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Benchmark Electronics, Inc. and Subsidiaries

 

Condensed Consolidated Statement of Cash Flows

(in thousands)

(UNAUDITED)

 

		Nine Months Ended
		September 30,
		2023				2022
Cash flows from operating activities:
Net income		$	46,763			$	47,010
Depreciation and amortization			34,103				32,987
Stock-based compensation expense			12,331				13,282
Accounts receivable			12,937				(123,600	)
Contract assets			(6,472	)			(32,487	)
Inventories			1,789				(228,501	)
Accounts payable			(24,420	)			84,588
Advance payments from customers			(8,879	)			93,476
Other changes in working capital and other, net			(30,938	)			(11,472	)
Net cash provided by (used in) operations			37,214				(124,717	)
Cash flows from investing activities:
Additions to property, plant and equipment and software			(66,713	)			(33,594	)
Other investing activities, net			588				5,666
Net cash used in investing activities			(66,125	)			(27,928	)
Cash flows from financing activities:
Share repurchases			—				(9,391	)
Net debt activity			107,194				169,303
Other financing activities, net			(23,306	)			(20,127	)
Net cash provided by financing activities			83,888				139,785
Effect of exchange rate changes			(1,647	)			(9,552	)
Net increase (decrease) in cash and cash equivalents and restricted cash			53,330				(22,412	)
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		$	260,760			$	249,337

 

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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												Nine Months Ended
		Sept. 30,				June 30,				Sept. 30,				September 30,
		2023				2023				2022				2023				2022
Income from operations (GAAP)		$	30,341			$	24,481			$	25,284			$	77,564			$	63,123
Amortization of intangible assets			1,592				1,591				1,591				4,775				4,792
Restructuring charges and other costs			1,437				2,364				1,331				5,227				4,911
Gain on assets held for sale			—				—				—				—				(393	)
Asset impairment			198				923				—				1,121				—
Customer insolvency (recovery)			—				—				(599	)			—				(599	)
Non-GAAP income from operations		$	33,568			$	29,359			$	27,607			$	88,687			$	71,834
GAAP operating margin			4.2	%			3.3	%			3.3	%			3.6	%			3.0	%
Non-GAAP operating margin			4.7	%			4.0	%			3.6	%			4.1	%			3.4	%
Gross Profit (GAAP)		$	69,077			$	67,031			$	66,750			$	200,066			$	183,108
Customer insolvency (recovery)			—				—				(425	)			—				(425	)
Non-GAAP gross profit		$	69,077			$	67,031			$	66,325			$	200,066			$	182,683
GAAP gross margin			9.6	%			9.1	%			8.7	%			9.3	%			8.6	%
Non-GAAP gross margin			9.6	%			9.1	%			8.6	%			9.3	%			8.6	%
Selling, general and administrative expenses		$	35,509			$	37,672			$	38,544			$	111,379			$	110,675
Customer insolvency (recovery)			—				—				174				—				174
Non-GAAP selling, general and administrative expenses		$	35,509			$	37,672			$	38,718			$	111,379			$	110,849
Net income (GAAP)		$	20,412			$	13,991			$	18,829			$	46,763			$	47,010
Amortization of intangible assets			1,592				1,591				1,591				4,775				4,792
Restructuring charges and other costs			1,437				2,364				1,331				5,227				4,911
Gain on assets held for sale			—				—				—				—				(393	)
Asset impairment			198				923				—				1,121				—
Settlement			(3,375	)			(1,155	)			(611	)			(4,530	)			(611	)
Customer insolvency (recovery)			—				—				(599	)			—				(599	)
Income tax adjustments(1)			245				(670	)			(351	)			(941	)			(1,639	)
Non-GAAP net income		$	20,509			$	17,044			$	20,190			$	52,415			$	53,471
Diluted earnings per share:
Diluted (GAAP)		$	0.57			$	0.39			$	0.53			$	1.30			$	1.32
Diluted (Non-GAAP)		$	0.57			$	0.48			$	0.57			$	1.46			$	1.50
Weighted-average number of shares used in calculating diluted earnings per share:
Diluted (GAAP)			35,876				35,676				35,348				35,879				35,604
Diluted (Non-GAAP)			35,876				35,676				35,348				35,879				35,604
Net cash provided by (used in) operations		$	37,583			$	24,538			$	(31,208	)		$	37,214			$	(124,717	)
Additions to property, plant and equipment and software			(19,664	)			(8,318	)			(8,623	)			(66,713	)			(33,594	)
Free cash flow (used)		$	17,919			$	16,220			$	(39,831	)		$	(29,499	)		$	(158,311	)

 

(1) This amount represents the tax impact of the non-GAAP adjustments using the applicable effective tax rates.

 

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Benchmark Electronics Third Quarter 2023 Earnings October 25, 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 fourth 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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Third Quarter 2023 Results Revenue of $720 million Total revenue impacted by $58 million reduction in supply chain premium (SCP)* Excluding SCP, year-over-year growth in 4 of 6 sectors GAAP and non-GAAP** gross margin of 9.6% - Expansion of 90 and 100 basis points year-over-year, respectively GAAP operating income year-over-year growth of 20% and non-GAAP of 22% GAAP and non-GAAP** EPS of $0.57, above mid-point of guidance range Generated sequential increase in positive free cash flow * 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 non-GAAP Financial Results

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Roop Lakkaraju Chief Financial Officer

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Third Quarter GAAP Revenue by Market Sector Q3-23 Sep 30, 2023 Revenue by Mix and Market Sector Jun 30, 2023 Sep 30, 2022 For the Three Months Ended Dollars in Millions Sector   Mix % Revenue   Mix % Revenue Q/Q Growth   Mix % Revenue Y/Y Growth Medical   21% $149   20% $145 3%   21% $166 (10%) Semi-Cap   23% $165   22% $164 1%   24% $186 (11%) Aerospace & Defense   14% $100   11% $80 24%   11% $86 16% Industrials   21% $154   23% $167 (8%)   20% $155 (1%) Advanced Computing   9% $66   11% $81 (19%)   13% $95 (30%) Next Gen Comms   12% $86   13% $96 (10%)   11% $84 3% Total Revenue 100% $720 100% $733 (2%) 100% $772 (7%)

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Sector Results Excluding Supply Chain Premium Q3-23 Results ($MM) Total Revenue Supply Chain Premiums (SCP) Revenue adjusted for SCP Year-over-Year growth adjusted for SCP Medical $149 $(2) $147 8% Semi-Cap $165 $(1) $164 (10%) A&D $100 $0 $100 20% Industrials $154 $(11) $143 9% Advanced Computing $66 $0 $66 (30%) Next Gen Comms $86 $(2) $84 20% See APPENDIX 3 for a reconciliation of GAAP Sales to non-GAAP Sales Adjusted for Supply Chain Premiums

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Third Quarter 2023 Financial Summary (Dollars in millions, except EPS) Sep 30, 2023 Jun 30, 2023 Q/Q Sep 30, 2022 Y/Y Net Sales $720 $733 (2%) $772 (7%) GAAP Gross Margin 9.6% 9.1% 50 bps 8.7% 90 bps GAAP SG&A $35.5 $37.7 (6%) $38.5 (8%) GAAP Operating Margin 4.2% 3.3% 90 bps 3.3% 90 bps GAAP Diluted EPS $0.57 $0.39 46% $0.53 8% GAAP ROIC 7.1% 7.1% 0 bps 7.1% 0 bps Net Sales $720 $733 (2%) $772 (7%) Non-GAAP Gross Margin 9.6% 9.1% 50 bps 8.6% 100 bps Non-GAAP SG&A $35.5 $37.7 (6%) $38.7 (8%) Non-GAAP Operating Margin 4.7% 4.0% 70 bps 3.6% 110 bps Non-GAAP Diluted EPS $0.57 $0.48 19% $0.57 0% Non-GAAP ROIC 9.4% 9.5% (10) bps 9.8% (40) 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 Q3-23 Q2-23 Q1-23 Q4-22 Q3-22 Accounts Receivable Days 60 59 60 59 56 Contract Asset Days 24 23 25 22 22 Inventory Days 100 102 111 97 95 Accounts Payable Days (53) (56) (60) (56) (67) Customer Days (26) (25) (27) (26) (27) Cash Conversion Cycle 105 103 109 96 79

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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 $305 Recurring quarterly dividend of $0.165 per share totaling $5.9 million paid in July 2023 No share repurchases in the quarter Remaining share repurchase authorization of $155 million as of September 30, 2023 For the Three Months Ended For the Three Months Ended Cash (In millions) Sep 30, 2023 Jun 30, 2023 Sep 30, 2022 Cash Flows from (used in) Operations $38 $25 ($31) FCF (1) $18 $16 ($40) Cash $261 $245 $249 International $238 $236 $189 U.S. $23 $9 $60

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Fourth Quarter 2023 Guidance Q4-2023 Net Sales* $675 - $725 million Diluted EPS – GAAP $0.49 - $0.55 Diluted EPS – non-GAAP $0.54 - $0.60 Operating Margin – non-GAAP 4.8% - 5.0% Other Expenses, Net ~ $9 million Effective Tax Rate 19% - 21% Weighted Average Shares ~ 35.9 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) Q4-23 Q/Q FY2023 Y/Y Sector Commentary Medical Improved supply enabled us to meet demand Demand adjusting amid dynamic macro environment Continuing to win new opportunities ramping in 2024-2025 Semi-Cap Current market outlook points to a flat 2024 New program wins helping to offset overall market softness A&D New wins and program ramps to drive 2024 growth Commercial Aero remains strong Defense demand strengthening Industrials Some softening in international markets Domestic test, automation and energy more resilient Adv. Computing New HPC program build to commence in Q4 Expecting HPC build to continue into early 2024 Next Gen Comms Comms infrastructure capex is under pressure Expecting sector to be challenged in 2024 See APPENDIX 3 for a reconciliation of GAAP to non-GAAP Financial Results

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Summary Exceeded mid-point of guidance for Q3 2023 Delivered strong year-over-year growth in 4 of 6 sectors* Expanded non-GAAP operating margin by >80 basis points year-over-year* Grew non-GAAP operating income 22% year-over-year Increased free cash flow generation, annualized at >$70 million Focused on delivering positive operating leverage Protecting investment in Semi-Cap to capitalize on the next upcycle * 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

v3.23.3

Document And Entity Information	Oct. 25, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 25, 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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