Engaged Capital Reminds Benchmark Board That Numbers Don’t Lie

  • Reminds investors of BHE’s ten year history of long-term underperformance under the current Board
  • Vote the BLUE Engaged Capital Proxy Card today to elect Robert K. Gifford, Jeffrey S. McCreary, and Brendan B. Springstubb and Restore Shareholder Value

NEWPORT BEACH, Calif.--()--Engaged Capital, LLC (together with its affiliates, “Engaged Capital”), an investment firm specializing in enhancing the value of small and mid-cap North American equities and a 4.9% shareholder of Benchmark Electronics, Inc. (“BHE” or the “Company”) (NYSE: BHE), issued the following statement in connection with its campaign to elect three highly-qualified directors at the Company’s upcoming May 11, 2016 Annual Meeting of Shareholders. The statement is also available on Engaged Capital’s website www.adeeperbench.com.

“Absent from BHE’s misleading and increasingly shrill April 26th letter to shareholders was any reference to the returns the Company has generated for shareholders under the oversight of the current incumbent directors. Allow us to remind you of the facts: BHE has underperformed all relevant indices and peer groups for over a decade.

  Total Return Performance Since:
1-1-15   1-1-14   1-1-13   1-1-12   1-1-11   1-1-10   1-1-09   1-1-08   1-1-07   1-1-06
BHE (23%) (15%) 18% 45% 8% 4% 53% 10% (20%) (13%)
EMS Peer Group Average (4%) 19% 58% 70% 38% 49% 309% 57% 23% 10%
EMS Peer Group Median (6%) 6% 63% 53% 36% 47% 202% 60% 7% 3%
S&P 1500 4% 18% 56% 82% 85% 115% 174% 73% 83% 111%
S&P 1500 IT 6% 26% 63% 87% 89% 112% 242% 95% 125% 146%
S&P 1500 EMS (2%) 7% 48% 76% 60% 98% 229% 65% 53% 46%
 
BHE Relative Returns vs:
EMS Peer Group Average (19%) (34%) (40%) (25%) (30%) (45%) (256%) (47%) (42%) (22%)
EMS Peer Group Median (17%) (21%) (45%) (8%) (28%) (44%) (149%) (49%) (27%) (15%)
S&P 1500 (27%) (33%) (39%) (36%) (77%) (112%) (120%) (63%) (102%) (123%)
S&P 1500 IT (29%) (42%) (45%) (42%) (81%) (109%) (188%) (85%) (145%) (158%)
S&P 1500 EMS (21%) (22%) (30%) (31%) (52%) (94%) (176%) (55%) (73%) (59%)

"We have proposed three highly-qualified individuals (two of whom have extensive EMS industry backgrounds and one who is a top-5 shareholder) to act as shareholder representatives on BHE's board. BHE only has one independent director in the boardroom with EMS industry experience and no large shareholders. The Company's increasingly hyperbolic and panicked response to a well-reasoned call for change, underscores the urgent need for independent voices in the boardroom. Vote today to let the Board know that the time for change is now!”

VOTE THE BLUE ENGAGED CAPITAL PROXY CARD FOR ALL THREE ENGAGED CAPITAL NOMINEES TODAY

If you have any questions, or require assistance with your vote, please contact Morrow & Co., LLC, toll- free at (800) 662-5200, call direct at (203) 658-9400 or email: engaged@morrowco.com

About Engaged Capital:

Engaged Capital, LLC (“Engaged Capital”) was established in 2012 by a group of professionals with significant experience in activist investing in North America and was seeded by Grosvenor Capital Management, L.P., one of the oldest and largest global alternative investment managers. Engaged Capital is a limited liability company owned by its principals and formed to create long-term shareholder value by bringing an owner’s perspective to the managements and boards of undervalued public companies. Engaged Capital manages both a long-only and long/short North American equity fund. Engaged Capital’s efforts and resources are dedicated to a single investment style, “Constructive Activism” with a focus on delivering superior, long-term, risk-adjusted returns for investors. Engaged Capital is based in Newport Beach, California.

Contacts

Investor Contact:
Morrow & Co., LLC
Tom Ball, 203-658-9400
tomball@morrowco.com
or
John Ferguson, 203-658-9400
jferguson@morrowco.com
or
visit www.adeeperbench.com
or
Media Contact:
Bayfield Strategy, Inc.
Riyaz Lalani, 416-907-9365
rlalani@bayfieldstrategy.com

Release Summary

Engaged Capital reminds investors of Benchmark Electronics' ten year history of long-term underperformance under the current Board. Learn more: www.adeeperbench.com

Engaged Capital, LLC