TTM Technologies, Inc. Reports First Quarter 2011 Results
SANTA ANA, Calif., May 5, 2011 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (Nasdaq:TTMI), a major global printed circuit board (PCB) manufacturer, today reported results for the first quarter 2011, ended March 28, 2011.
First Quarter 2011 Highlights
Net sales were $342.8 million GAAP net income attributable to stockholders was $27.1 million, or $0.33 per diluted share Non-GAAP net income attributable to stockholders was $33.3 million, or $0.40 per diluted share Gross margin was 23.9 percent
"We are pleased with the continuing progress in our business," said Kent Alder, President and CEO of TTM. "Our first quarter results were in line with our expectations and reflected normal seasonality. We maintained solid gross margin despite typical seasonal sales patterns, which reflects the growing contribution of our advanced technology products to our overall product mix. Overall, sales increased approximately 16 percent compared to first quarter 2010 pro forma sales of $296.5 million."
Financial Results
Net sales for the first quarter of 2011 decreased to $342.8 million from $373.4 million in the fourth quarter of 2010.
Operating income for the first quarter of 2011 decreased to $45.7 million from $52.6 million in the fourth quarter of 2010.
GAAP net income attributable to stockholders for the first quarter of 2011 was $27.1 million, or $0.33 per diluted share, compared to $33.0 million, or $0.41 per diluted share, for the fourth quarter of 2010.
On a non-GAAP basis, net income attributable to stockholders for the first quarter of 2011 was $33.3 million, or $0.40 per diluted share. This compares to non-GAAP net income attributable to stockholders of $39.7 million, or $0.49 per diluted share, in the fourth quarter of 2010.
EBITDA for the first quarter of 2011 was $66.5 million, or 19.4 percent of net sales, compared to $76.5 million, or 20.5 percent of net sales, for the fourth quarter of 2010.
"We remain encouraged by current market trends and believe we are well positioned within the global PCB market," Alder continued. "Our Asia Pacific operations, in particular, are experiencing strong demand for PCBs used in touchpad tablets and smartphones. Our North America operations continue to generate solid cash flow. We are focused on leveraging our combined strengths as a company to continue to execute our growth strategy."
Please refer to the tables below for a reconciliation between GAAP and non-GAAP net income attributable to stockholders as well as EBITDA.
Business Outlook
For the second quarter of 2011, TTM estimates revenue will be in the range of $350 million to $370 million, GAAP earnings attributable to stockholders in a range from $0.28 to $0.37 per diluted share and non-GAAP earnings attributable to stockholders in a range from $0.36 to $0.45 per diluted share.
To Access the Live Webcast/Conference Call
The company will host a conference call and webcast to discuss the first quarter 2011 results and the second quarter 2011 outlook on Thursday, May 5, 2011, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time).
Telephone access is available by dialing 1-877-941-2928. The conference also will be webcast on TTM Technologies' website at www.ttmtech.com.
To Access a Replay of the Webcast
The webcast will be available for replay until May 12, 2011, on TTM Technologies' website at www.ttmtech.com.
About Our Non-GAAP Financial Measures
This release includes information about the Company's non-GAAP net income attributable to stockholders and non-GAAP earnings per share attributable to stockholders, which are non-GAAP financial measures. Management believes that both measures -- which add back amortization of intangibles, stock-based compensation expense, non-cash interest expense on debt, asset impairment, restructuring and other charges as well as the associated tax impact of these charges -- provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations.
A material limitation associated with the use of the above non-GAAP financial measures is that they have no standardized measurement prescribed by GAAP and may not be comparable with similar non-GAAP financial measures used by other companies. The Company compensates for these limitations by providing full disclosure of each non-GAAP financial measure and reconciliation to the most directly comparable GAAP financial measure. However, the non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
Safe Harbor Statement
This release contains forward-looking statements that relate to future events or performance. These statements reflect the company's current expectations, and the company does not undertake to update or revise these forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other company statements will not be realized. Furthermore, readers are cautioned that these statements involve risks and uncertainties, many of which are beyond the company's control, which could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include, but are not limited to, the company's dependence upon the electronics industry, contemplated significant capital expenditures and related financing requirements, the Company's ability to integrate and manage its Asia Pacific operations, the company's dependence upon a small number of customers, the unpredictability of and potential fluctuation in future revenues and operating results and other "Risk Factors" set forth in the company's most recent SEC filings.
About TTM
TTM Technologies, Inc. is a major global printed circuit board manufacturer, focusing on quick-turn and technologically advanced PCBs and the backplane and sub-system assembly business. TTM stands for time-to-market, representing how the company's time-critical, one-stop manufacturing services enable customers to shorten the time required to develop new products and bring them to market. Additional information can be found at www.ttmtech.com.
The TTM Technologies logo is available at https://www.globenewswire.com/newsroom/prs/?pkgid=5691
TTM TECHNOLOGIES, INC.
Selected Unaudited Financial Information
(In thousands, except per share data)
First Quarter Fourth Quarter
2011 2010 2010
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales $ 342,801 $ 138,219 $ 373,391
Cost of goods sold 260,875 111,246 283,388
Gross profit 81,926 26,973 90,003
Operating expenses:
Selling and marketing 9,033 6,727 9,460
General and administrative 23,051 9,037 23,360
Amortization of definite-lived intangibles 4,158 791 4,613
Restructuring charges -- 50 (60)
Impairment of long-lived assets -- 500 --
Total operating expenses 36,242 17,105 37,373
Operating income 45,684 9,868 52,630
Interest expense (6,291) (2,781) (6,373)
Interest income 197 61 145
Other, net 780 (69) 2,446
Income before income taxes 40,370 7,079 48,848
Income tax provision (11,282) (2,594) (12,319)
Net income 29,088 4,485 36,529
Net income attributable to noncontrolling interest (1,965) -- (3,503)
Net income attributable to stockholders $ 27,123 $ 4,485 $ 33,026
Earnings per share attributable to stockholders:
Basic $ 0.34 $ 0.10 $ 0.41
Diluted $ 0.33 $ 0.10 $ 0.41
Weighted average common shares:
Basic 80,696 43,310 80,139
Diluted 82,304 43,979 80,962
SELECTED BALANCE SHEET DATA
March 28, 2011 December 31, 2010
Cash and cash equivalents $ 202,340 $ 216,078
Accounts and notes receivable, net 292,033 287,703
Inventories 144,600 135,385
Total current assets 679,505 676,499
Property, plant and equipment, net 760,370 740,630
Other non-current assets 349,059 344,823
Total assets 1,788,934 1,761,952
Current portion long-term debt 87,504 67,123
Accounts payable 204,025 204,974
Total current liabilities 449,739 418,200
Debt, net of discount 407,277 458,278
Total long-term liabilities 464,023 510,894
Noncontrolling interest 106,911 104,603
Total stockholders' equity 875,172 832,858
Total liabilities and stockholders' equity 1,788,934 1,761,952
SUPPLEMENTAL DATA
First Quarter Fourth Quarter
2011 2010 2010
Gross margin 23.9% 19.5% 24.1%
EBITDA margin 19.4 10.5 20.5
Operating margin 13.3 7.1 14.1
End Market Breakdown:
First Quarter Fourth Quarter
2011 2010 2010
Aerospace/Defense 16% 42% 16%
Cellular Phone 9 -- 12
Computing/Storage/Peripherals 27 12 22
Medical/Industrial/Instrumentation 8 11 8
Networking/Communications 34 33 37
Other 6 2 5
Stock-based Compensation:
First Quarter Fourth Quarter
2011 2010 2010
Amount included in:
Cost of goods sold $ 216 $ 328 $ 308
Selling and marketing 111 108 107
General and administrative 1,427 976 1,839
Total stock-based compensation expense $ 1,754 $ 1,412 $ 2,254
Operating Segment Data:
First Quarter Fourth Quarter
Net sales: 2011 2010 2010
Asia Pacific $ 202,465 $ -- $ 220,212
North America 142,250 138,219 156,421
Total sales 344,715 138,219 376,633
Inter-segment sales (1,914) -- (3,242)
Total net sales $ 342,801 $ 138,219 $ 373,391
Operating segment income:
Asia Pacific $ 33,077 $ -- $ 38,257
North America 16,765 10,659 18,986
Total operating segment income 49,842 10,659 57,243
Amortization of definite-lived intangibles (4,158) (791) (4,613)
Total operating income 45,684 9,868 52,630
Total other expense (5,314) (2,789) (3,782)
Income before income taxes $ 40,370 $ 7,079 $ 48,848
RECONCILIATIONS1
First Quarter Fourth Quarter
2011 2010 2010
EBITDA reconciliation2:
Net income $ 29,088 $ 4,485 $ 36,529
Add back items:
Income tax provision 11,282 2,594 12,319
Interest expense 6,291 2,781 6,373
Amortization of definite-lived intangibles 4,188 820 4,643
Depreciation expense 15,695 3,883 16,633
EBITDA $ 66,544 $ 14,563 $ 76,497
Non-GAAP EPS reconciliation3:
GAAP net income attributable to stockholders $ 27,123 $ 4,485 $ 33,026
Add back items:
Amortization of definite-lived intangibles 4,188 820 4,643
Stock-based compensation 1,754 1,412 2,254
Non-cash interest expense 2,191 1,440 2,189
Impairment, restructuring and other charges -- 2,769 (54)
Income tax effects (1,993) (1,704) (2,389)
Non-GAAP net income attributable to stockholders $ 33,263 $ 9,222 $ 39,669
Non-GAAP earnings per diluted share attributable to stockholders $ 0.40 $ 0.21 $ 0.49
1 This information provides a reconciliation of EBITDA, non-GAAP net income attributable to stockholders and non-GAAP EPS attributable to stockholders to the financial information in our consolidated statements of operations.
2 EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization. We present EBITDA to enhance the understanding of our operating results, and it is a key measure we use to evaluate our operations. In addition, we provide our EBITDA because we believe that investors and securities analysts will find EBITDA to be a useful measure for evaluating our operating performance and comparing our operating performance with that of similar companies that have different capital structures and for evaluating our ability to meet our future debt service, capital expenditures, and working capital requirements. However, EBITDA should not be considered as an alternative to cash flows from operating activities as a measure of liquidity or as an alternative to net income as a measure of operating results in accordance with accounting principles generally accepted in the United States of America.
3 This information provides non-GAAP net income attributable to stockholders and non-GAAP EPS attributable to stockholders, which are non-GAAP financial measures. Management believes that both measures --- which add back amortization of intangibles, stock-based compensation expense, non-cash interest expense on debt (before consideration of capitalized interest), asset impairment, restructuring and other charges as well as the associated tax impact of these charges --- provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations.
CONTACT: Steve Richards, CFO
714-327-3000
Image: TTM Technologies
Source: TTM TechnologiesReleased May 5, 2011