Benchmark Electronics, Inc. (BHE) Bundle
A Brief History of Benchmark Electronics, Inc.
Benchmark Electronics, Inc. has established its presence as a significant player in the electronics manufacturing services (EMS) sector, specializing in providing integrated manufacturing solutions. The company operates across various regions, including the Americas, Asia, and Europe, catering to diverse industries such as semi-conductor capital equipment, medical devices, aerospace and defense, and complex industrials.
Financial Performance Overview
As of the third quarter of 2024, Benchmark Electronics reported a total sales figure of $657.7 million, a decrease from $719.7 million in the same quarter of 2023. For the first nine months of 2024, sales stood at $1.999 billion, down from $2.148 billion in 2023.
| Period | Sales (in millions) | Net Income (in millions) | EPS (Diluted) |
|---|---|---|---|
| Q3 2024 | $657.7 | $15.4 | $0.42 |
| Q3 2023 | $719.7 | $20.4 | $0.57 |
| 9M 2024 | $1,999.2 | $44.9 | $1.23 |
| 9M 2023 | $2,147.6 | $46.8 | $1.30 |
Market Segments and Revenue Breakdown
Benchmark's revenue is categorized into several key market sectors. In Q3 2024, the semi-cap sector generated $187.4 million, reflecting a 13% increase from $165.3 million in Q3 2023. Conversely, the medical sector experienced a 28% decline, dropping to $107.1 million from $149.1 million.
| Market Sector | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) |
|---|---|---|
| Semi-Cap | $187.4 | $165.3 |
| Complex Industrials | $150.9 | $153.6 |
| Medical | $107.1 | $149.1 |
| Aerospace and Defense | $102.0 | $99.7 |
| AC&C | $110.3 | $152.0 |
Income and Expenses
For the third quarter of 2024, Benchmark reported a gross profit of $66.7 million, yielding a gross profit margin of 10.1%, compared to $69.1 million and 9.6% in Q3 2023. Selling, general, and administrative (SG&A) expenses rose to $36.6 million, up from $35.5 million in the prior year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Gross Profit (in millions) | $66.7 | $69.1 |
| Gross Profit Margin | 10.1% | 9.6% |
| SG&A Expenses (in millions) | $36.6 | $35.5 |
Debt and Liquidity Position
As of September 30, 2024, Benchmark Electronics had total borrowings outstanding of $124.7 million under its term loan facility and $155.0 million under its revolving credit facility. The company reported cash, cash equivalents, and restricted cash totaling $324.4 million, indicating a robust liquidity position.
| Debt Type | Amount (in millions) |
|---|---|
| Term Loan Facility | $124.7 |
| Revolving Credit Facility | $155.0 |
| Cash and Cash Equivalents | $324.4 |
Dividends and Share Repurchase Activity
During the nine months ended September 30, 2024, Benchmark paid cash dividends totaling $17.8 million, with a declared quarterly cash dividend of $0.17 per share on September 9, 2024. The company also repurchased 0.1 million shares for $5.1 million at an average price of $40.27 per share during the same period.
| Dividend Type | Amount (in millions) |
|---|---|
| Total Cash Dividends Paid (9M 2024) | $17.8 |
| Repurchased Shares (in millions) | 0.1 |
| Total Repurchase Amount (in millions) | $5.1 |
A Who Owns Benchmark Electronics, Inc. (BHE)
Ownership Structure
As of 2024, Benchmark Electronics, Inc. (BHE) has a diverse ownership structure that includes institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage (%) |
|---|---|---|
| Institutional Investors | BlackRock, Inc. | 13.5 |
| Institutional Investors | The Vanguard Group, Inc. | 10.2 |
| Institutional Investors | Wellington Management Group LLP | 7.8 |
| Individual Insiders | Jeffrey W. Benck (CEO) | 1.8 |
| Individual Insiders | Stephen J. Beaver (SVP) | 0.5 |
| Others | Remaining Public Float | 66.2 |
Recent Shareholder Transactions
Benchmark Electronics has engaged in several share repurchase programs, reflecting its strategy to manage equity and return value to shareholders. During the three and nine months ended September 30, 2024, the company repurchased 126,548 shares at an average price of $40.27 per share, totaling approximately $5.1 million. The remaining authority under the share repurchase program is $149.5 million.
Insider Trading Activity
In 2024, several key executives adopted Rule 10b5-1 trading arrangements, allowing for the planned sale of shares in accordance with regulatory guidelines. Notably:
- Jeffrey W. Benck intends to sell up to 36,000 shares, with a trading window opening on November 5, 2024.
- Stephen J. Beaver plans to sell up to 5,000 shares, also with a trading window starting November 12, 2024.
- Rhonda R. Buseman will sell up to 6,000 shares with a trading window beginning November 19, 2024.
Institutional Ownership Trends
As of September 30, 2024, Benchmark Electronics' institutional ownership has shown stability. The percentage of shares held by institutional investors is approximately 44.7% of the total shares outstanding. This reflects a cautious yet optimistic outlook from larger investment entities, favoring the company amid a competitive landscape.
Financial Performance Indicators
Benchmark Electronics' recent financial performance may influence shareholder sentiment and ownership structure. Key metrics as of September 30, 2024, include:
- Net income for the nine months ended September 30, 2024: $44.9 million.
- Total revenues for the same period: $1.999 billion.
- Cash dividends paid totaled $17.8 million.
Conclusion on Ownership Dynamics
The ownership dynamics of Benchmark Electronics, Inc. as of 2024 highlight a balanced mix of institutional and insider ownership, with a significant portion of shares held by the public. The recent share repurchase activities and insider trading arrangements indicate a proactive approach to managing shareholder value and maintaining investor confidence.
Benchmark Electronics, Inc. (BHE) Mission Statement
Benchmark Electronics, Inc. (BHE) is committed to providing innovative engineering services and advanced manufacturing solutions to its customers. The company's mission emphasizes a focus on quality, customer satisfaction, and continuous improvement in operations, ensuring that it meets the evolving needs of its diverse client base across multiple industries.
Financial Overview
As of September 30, 2024, Benchmark Electronics reported significant financial metrics reflecting its operational performance:
| Financial Metric | Value (Q3 2024) | Value (Q3 2023) | Change (%) |
|---|---|---|---|
| Total Sales | $657.7 million | $719.7 million | -9% |
| Net Income | $15.4 million | $20.4 million | -24.5% |
| Gross Profit | $66.7 million | $69.1 million | -3.5% |
| Income from Operations | $28.1 million | $30.3 million | -7.2% |
| Basic Earnings per Share | $0.42 | $0.57 | -26.3% |
Market Sectors Performance
The company operates across various market sectors, with the following sales performance noted for Q3 2024:
| Market Sector | Sales (Q3 2024) | Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| Semi-Cap | $187.4 million | $165.3 million | +13% |
| Complex Industrials | $150.9 million | $153.6 million | -2% |
| Medical | $107.1 million | $149.1 million | -28% |
| Aerospace & Defense (A&D) | $102.0 million | $99.7 million | +2% |
| Advanced Computing & Communications (AC&C) | $110.3 million | $152.0 million | -27% |
Geographical Sales Distribution
Sales by geographical segment for Q3 2024 were as follows:
| Region | Sales (Q3 2024) | Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| Americas | $306.5 million | $399.4 million | -23% |
| Asia | $289.9 million | $275.2 million | +5% |
| Europe | $83.5 million | $71.4 million | +17% |
Operational Efficiency Metrics
The company's operational efficiency is reflected in its gross profit margins and income from operations:
| Metric | Value (Q3 2024) | Value (Q3 2023) | Change (%) |
|---|---|---|---|
| Gross Profit Margin | 10.1% | 9.6% | +5.2% |
| Income from Operations Margin | 4.3% | 4.2% | +2.4% |
Dividends and Share Repurchase
Benchmark Electronics has maintained a consistent dividend policy. The cash dividends paid during the first nine months of 2024 were:
| Period | Dividends Paid |
|---|---|
| Q3 2024 | $6.0 million |
| Q3 2023 | $5.9 million |
| Total (Nine Months 2024) | $17.8 million |
| Total (Nine Months 2023) | $17.6 million |
As of September 30, 2024, the company had $149.5 million remaining under share repurchase authorizations.
How Benchmark Electronics, Inc. (BHE) Works
Company Overview
Benchmark Electronics, Inc. operates as a provider of integrated technology solutions. The company focuses on engineering services, manufacturing, and supply chain management, primarily for the electronics industry. As of September 30, 2024, the company’s total revenue was $657.7 million, a 9% decrease from $719.7 million in the same period in 2023.
Financial Performance
For the nine months ended September 30, 2024, Benchmark reported a total revenue of $1,999.2 million compared to $2,147.6 million in the same period of 2023. The company's gross profit for the first nine months of 2024 was $202.1 million, an increase from $200.1 million in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $657.7 million | $719.7 million | $1,999.2 million | $2,147.6 million |
| Gross Profit | $66.7 million | $69.1 million | $202.1 million | $200.1 million |
| Net Income | $15.4 million | $20.4 million | $44.9 million | $46.8 million |
| Earnings Per Share | $0.42 | $0.57 | $1.23 | $1.30 |
Segment Performance
Benchmark Electronics operates in various segments, including the Americas, Asia, and Europe. The income from operations by reportable segment for the third quarter of 2024 is as follows:
| Segment | Income from Operations (Q3 2024) | Income from Operations (Q3 2023) |
|---|---|---|
| Americas | $6.2 million | $18.3 million |
| Asia | $37.3 million | $37.5 million |
| Europe | $6.7 million | $3.9 million | Total Income from Operations | $28.1 million | $30.3 million |
Operational Highlights
Benchmark’s operational strategies include improving operational efficiencies and restructuring initiatives. For the nine months ended September 30, 2024, the company recognized $5.6 million in restructuring charges primarily related to capacity and workforce reductions.
Cash Flow and Liquidity
As of September 30, 2024, Benchmark had cash, cash equivalents, and restricted cash totaling $324.4 million. Cash flows from operating activities for the first nine months of 2024 provided $143.3 million.
Debt and Financing
The company maintains a credit agreement with a total borrowing capacity of $381 million. As of September 30, 2024, Benchmark had $390.6 million available for borrowings under this agreement.
Market Sector Performance
Sales by market sector for the third quarter of 2024 were as follows:
| Market Sector | Q3 2024 Sales | Q3 2023 Sales |
|---|---|---|
| Semi-Cap | $187.4 million | $165.3 million |
| Complex Industrials | $150.9 million | $153.6 million |
| Medical | $107.1 million | $149.1 million |
| Aerospace & Defense (A&D) | $102.0 million | $99.7 million |
| AC&C | $110.3 million | $152.0 million |
Conclusion on Market Dynamics
Benchmark Electronics continues to navigate challenges within the electronics manufacturing sector, focusing on operational efficiencies and strategic restructuring to maintain its competitive edge in the market.
How Benchmark Electronics, Inc. (BHE) Makes Money
Revenue Sources
As of 2024, Benchmark Electronics, Inc. (BHE) generates revenue through various market sectors, including Semiconductor Capital Equipment (Semi-Cap), Complex Industrials, Medical, Aerospace and Defense (A&D), and Advanced Communications and Computing (AC&C). The revenue breakdown for the third quarter of 2024 is as follows:
| Market Sector | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Semi-Cap | $187,392 | $165,254 | 13% |
| Complex Industrials | $150,914 | $153,641 | -2% |
| Medical | $107,134 | $149,130 | -28% |
| A&D | $102,029 | $99,687 | 2% |
| AC&C | $110,278 | $151,983 | -27% |
| Total Revenue | $657,747 | $719,695 | -9% |
Income and Profitability
In the third quarter of 2024, Benchmark reported net income of $15.4 million, or $0.42 per diluted share, compared to $20.4 million, or $0.57 per diluted share, for the same period in 2023. The total net income for the first nine months of 2024 was $44.9 million, or $1.23 per diluted share, down from $46.8 million, or $1.30 per diluted share in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income | $15.4 million | $20.4 million | $44.9 million | $46.8 million |
| EPS (Diluted) | $0.42 | $0.57 | $1.23 | $1.30 |
Cost Structure
Benchmark Electronics' cost of sales for the third quarter of 2024 was $591.0 million, leading to a gross profit of $66.7 million, representing a gross profit margin of 10.1%. This is an increase from a gross profit margin of 9.6% in Q3 2023.
| Cost Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Sales | $591.0 million | $650.6 million |
| Gross Profit | $66.7 million | $69.1 million |
| Gross Profit Margin | 10.1% | 9.6% |
Segment Performance
Income from operations for the third quarter of 2024 was $28.1 million. The income from operations by segment is detailed below:
| Segment | Q3 2024 Income (in thousands) | Q3 2023 Income (in thousands) |
|---|---|---|
| Americas | $6,238 | $18,278 |
| Asia | $37,349 | $37,526 |
| Europe | $6,723 | $3,945 |
| Corporate/Intersegment Eliminations | ($22,205) | ($29,408) |
| Total Income from Operations | $28,105 | $30,341 |
Cash Flow Overview
For the first nine months of 2024, cash provided by operating activities was $143.3 million, which included adjustments for net income, depreciation, and changes in accounts receivable and inventories.
| Cash Flow Activity | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|
| Net Income | $44,904 | $46,763 |
| Cash from Operating Activities | $143,309 | $37,214 |
| Cash Used in Investing Activities | ($23,700) | ($64,014) |
| Cash Used in Financing Activities | ($81,200) | N/A |
Market Dynamics
Benchmark's sales to its ten largest customers accounted for 52% of total sales for both the nine months ended September 30, 2024, and 2023. This concentration indicates a reliance on a limited number of customers for a significant portion of revenue.
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Article updated on 8 Nov 2024
Resources:
- Benchmark Electronics, Inc. (BHE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Benchmark Electronics, Inc. (BHE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Benchmark Electronics, Inc. (BHE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.