Benchmark Reports Fourth Quarter and Full Year 2020 Results
Jeff Benck, Benchmark’s President and CEO stated, “We closed out a very challenging year, delivering fourth quarter results that not only met our expectations, but demonstrated sequential improvement in both non-GAAP gross margins at 9.6% and higher non-GAAP earnings at $0.34 enabled by higher-value sector mix and improved utilization across the company. I am very proud of our team, which has proven to be very resourceful and resilient in the face of this pandemic and continues to deliver for our customers.”
Benck continued, “Our focused efforts on improving working capital management are also bearing fruit as we generated $95 million of operating cash flow in the quarter and over $120 million for the year, which exceeded our forecast. I look forward to 2021 with optimism knowing that our strategic investments in the business to drive differentiated value and sustainability have solidified a path to achieve revenue, margin, and earnings growth in 2021 aligned with our mid-term financial goals.”
Fourth Quarter 2020 Industry Sector Update
Revenue and percentage of sales by industry sector (in millions) was as follows.
|
Dec 31, |
Sep 30, |
Dec 31, |
|||||||||||||||
|
Higher-Value Markets |
2020 |
2020 |
2019 |
||||||||||||||
|
Medical |
$ |
111 |
21 |
% |
$ |
134 |
26 |
% |
$ |
103 |
20 |
% |
|||||
|
Semi-Cap |
101 |
20 |
99 |
19 |
81 |
16 |
|||||||||||
|
A&D |
111 |
21 |
105 |
20 |
106 |
21 |
|||||||||||
|
Industrials |
97 |
19 |
86 |
16 |
107 |
21 |
|||||||||||
|
$ |
420 |
81 |
% |
$ |
424 |
81 |
% |
$ |
397 |
78 |
% |
||||||
|
Dec 31, |
Sep 30, |
Dec 31, |
|||||||||||||||
|
Traditional Markets |
2020 |
2020 |
2019 |
||||||||||||||
|
Computing |
$ |
46 |
9 |
% |
$ |
44 |
8 |
% |
$ |
45 |
9 |
% |
|||||
|
Telecommunications |
55 |
10 |
58 |
11 |
66 |
13 |
|||||||||||
|
$ |
101 |
19 |
% |
$ |
102 |
19 |
% |
$ |
111 |
22 |
% |
||||||
|
Total |
$ |
521 |
100 |
% |
$ |
526 |
100 |
% |
$ |
508 |
100 |
% |
|||||
Overall, higher-value market revenues were up 6% year-over-year from strength in the Semi-Cap, Medical, and A&D sectors. Traditional market revenues were down from program transitions.
First Quarter 2021 Outlook
- Revenue between $480 – $520 million
- Diluted GAAP earnings per share between $0.11 – $0.14
- Diluted non-GAAP earnings per share between $0.18 – $0.22 (excluding restructuring charges and other costs and amortization of intangibles)
- This guidance takes into consideration all known constraints for the quarter and assumes no further significant interruptions to our supply base, operations or customers. Guidance also assumes no material changes to end market conditions due to COVID-19.
Restructuring charges are expected to range between $1.0 million and $2.0 million in the first quarter and the amortization of intangibles is expected to be $2.0 million in the first quarter.
Fourth Quarter 2020 and CY2020 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 until Thursday, February 11, 2021 on the Company’s website.
