TTM Technologies, Inc. Reports Record Fourth Quarter and Fiscal Year 2010 Results
SANTA ANA, Calif., Feb. 10, 2011 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (Nasdaq:TTMI), a major global printed circuit board (PCB) manufacturer, today reported results for the fourth quarter and fiscal year 2010, ended December 31, 2010.
Fourth Quarter 2010 Highlights
Net sales increased 6 percent sequentially to a record $377.9 million GAAP net income attributable to stockholders grew 14 percent sequentially to $33.0 million, or $0.41 per diluted share Non-GAAP net income attributable to stockholders increased sequentially 13 percent to $39.7 million, or $0.49 per diluted share Gross margin increased sequentially to 23.8 percent The combination with Meadville Holdings Ltd. was again highly accretive to GAAP earnings, adding more than $0.20 per diluted share in the fourth quarter
Fiscal Year 2010 Highlights
Completed combination with Meadville on April 9, 2010 Net sales increased to $1.2 billion GAAP net income attributable to stockholders grew to $71.5 million, or $1.01 per diluted share Non-GAAP net income attributable to stockholders increased to $105.5 million, or $1.49 per diluted share Gross margin increased to 21.5 percent
Financial Results
Net sales for the fourth quarter of 2010 increased to $377.9 million from $357.8 million in the third quarter of 2010.
Operating income for the fourth quarter of 2010 increased to $52.6 million from $45.7 million in the third quarter of 2010.
GAAP net income attributable to stockholders for the fourth quarter of 2010 was $33.0 million, or $0.41 per diluted share, compared to $29.1 million, or $0.36 per diluted share, for the third quarter of 2010. The results for both the third and fourth quarters of 2010 included foreign exchange gains that contributed approximately $0.02 per diluted share each quarter.
On a non-GAAP basis, net income attributable to stockholders for the fourth quarter of 2010 was $39.7 million, or $0.49 per diluted share. This compares to non-GAAP net income attributable to stockholders of $35.0 million, or $0.43 per diluted share, in the third quarter of 2010.
EBITDA for the fourth quarter of 2010 was $76.5 million, or 20.2 percent of net sales, compared to $66.9 million, or 18.7 percent of net sales, for the third quarter of 2010.
"Our better than expected results for the fourth quarter capped a remarkable year for TTM and demonstrate the continuing success of our strategic growth initiatives as well as the strength of our market position," said Kent Alder, President and CEO of TTM. "Strong demand for our advanced technology products, including PCBs used in touchpad tablets, networking equipment and smartphones, contributed to the record fourth quarter revenue and profitability. We continue to benefit from robust growth in our Asia Pacific operations and solid performance in our North America operations. Additionally, we are leveraging our global footprint, highly efficient operations and low cost structure to increase TTM's margins."
For the fiscal year 2010, the increase in sales, operating income, net income and EBITDA were primarily due to the combination with Meadville.
Net sales for fiscal year 2010 increased to $1.2 billion from $582.5 million in fiscal year 2009.
Operating income for fiscal year 2010 increased to $125.6 million from $18.5 million in fiscal year 2009.
GAAP net income attributable to stockholders for fiscal year 2010 was $71.5 million, or $1.01 per diluted share, compared to $4.9 million, or $0.11 per diluted share, for fiscal year 2009.
On a non-GAAP basis, net income attributable to stockholders for fiscal year 2010 was $105.5 million, or $1.49 per diluted share. This compares to fiscal year 2009 non-GAAP net income attributable to stockholders of $30.7 million, or $0.70 per diluted share.
EBITDA for fiscal year 2010 was $193.4 million, or 16.3 percent of net sales, compared to $42.0 million, or 7.2 percent of net sales, for fiscal year 2009.
Please refer to the tables below for a reconciliation between GAAP and non-GAAP net income attributable to stockholders as well as EBITDA.
"2010 was a milestone year for TTM," said Alder. "We completed the transformative combination with Meadville, achieved record revenue and profitability, and generated strong cash flow to fund expansion. We made great strides in positioning TTM to take advantage of the growth in the global PCB market. As we enter 2011, we are excited about the multiple growth drivers we see for our business and believe we are well positioned for success as our momentum continues."
Business Outlook
The Company's guidance for the first quarter of 2011 reflects normal seasonality. For the first quarter of 2011, TTM estimates revenue will be in the range of $338 million to $358 million, GAAP earnings attributable to stockholders in a range from $0.27 to $0.36 per diluted share and non-GAAP earnings attributable to stockholders in a range from $0.35 to $0.44 per diluted share.
To Access the Live Webcast/Conference Call
The company will host a conference call and webcast to discuss the fourth quarter and fiscal year 2010 results and the first quarter 2011 outlook on Thursday, February 10, 2011, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time).
To listen to the live webcast, log on to the TTM Technologies website at www.ttmtech.com. To access the live conference call, dial 1-800-762-8795 or 1-480-248-5081.
To Access a Replay of the Webcast
The call will be available for replay until February 17, 2011, on TTM Technologies' website at www.ttmtech.com.
A telephone replay also will be available beginning two hours after the conclusion of the conference call. You may access the telephone replay by dialing 1-303-590-3030 or 1-800-406-7325 and entering confirmation code 4402248.
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 and restructuring charges, inventory adjustments, costs related to the Meadville Holdings transaction and miscellaneous closing costs 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, the impact of the current economic crisis, the company's dependence upon a small number of customers, the unpredictability of and potential fluctuation in future revenues and operating results, increased competition from low-cost foreign manufacturers 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
- Tables Follow -
TTM Technologies, Inc. Reports 2010 Fourth Quarter and Fiscal Year Results
TTM TECHNOLOGIES, INC.
Selected Unaudited Financial Information
(In thousands, except per share data)
Fourth Quarter Third Quarter Full Year
2010 2009 2010 2010 2009
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales $ 377,859 $ 149,924 $ 357,813 $ 1,184,139 $ 582,476
Cost of goods sold 287,856 122,250 277,478 929,734 479,267
Gross profit 90,003 27,674 80,335 254,405 103,209
Operating expenses:
Selling and marketing 9,460 6,480 9,055 34,345 26,517
General and administrative 23,360 11,088 21,922 79,668 36,548
Amortization of definite-lived intangibles 4,613 860 3,653 13,678 3,440
Restructuring charges (60) 481 -- 389 5,490
Impairment of long-lived assets -- 2,125 -- 766 12,761
Total operating expenses 37,373 21,034 34,630 128,846 84,756
Operating income 52,630 6,640 45,705 125,559 18,453
Interest expense (6,373) (2,802) (6,690) (22,255) (11,198)
Interest income 145 111 164 505 467
Other, net 2,446 305 2,405 4,828 401
Income before income taxes 48,848 4,254 41,584 108,637 8,123
Income tax provision (12,319) (1,887) (9,439) (28,738) (3,266)
Net income 36,529 2,367 32,145 79,899 4,857
Net income attributable to noncontrolling interest (3,503) -- (3,054) (8,368) --
Net income attributable to stockholders $ 33,026 $ 2,367 $ 29,091 $ 71,531 $ 4,857
Earnings per share attributable to stockholders:
Basic $ 0.41 $ 0.05 $ 0.36 $ 1.02 $ 0.11
Diluted $ 0.41 $ 0.05 $ 0.36 $ 1.01 $ 0.11
Weighted average common shares:
Basic 80,139 43,172 80,059 70,220 43,080
Diluted 80,962 43,930 80,521 70,819 43,579
SELECTED BALANCE SHEET DATA
December 31, 2010 December 31, 2009
Cash and cash equivalents $ 216,078 $ 94,347
Short-term investments -- 1,351
Restricted cash -- 120,000
Accounts and notes receivable, net 288,579 89,519
Inventories 135,385 60,153
Total current assets 670,845 382,559
Property, plant and equipment, net 738,529 88,577
Other non-current assets 346,270 71,922
Total assets 1,755,644 543,058
Current portion long-term debt 67,123 --
Accounts payable 204,974 37,867
Total current liabilities 412,546 59,447
Debt, net of discount 458,278 139,882
Total long-term liabilities 510,369 142,694
Noncontrolling interest 104,474 --
Total stockholders' equity 832,729 340,917
Total liabilities and stockholders' equity 1,755,644 543,058
SUPPLEMENTAL DATA
Fourth Quarter Third Quarter Full Year
2010 2009 2010 2010 2009
Gross margin 23.8% 18.5% 22.5% 21.5% 17.7%
EBITDA margin 20.2 8.4 18.7 16.3 7.2
Operating margin 13.9 4.4 12.8 10.6 3.2
End Market Breakdown:
Fourth Quarter Third Quarter
2010 2009 2010
Aerospace/Defense 16% 42% 17%
Cellular Phone 12 -- 11
Computing/Storage/Peripherals 22 10 21
Medical/Industrial/Instrumentation 8 9 9
Networking/Communications 37 38 36
Other 5 1 6
Stock-based Compensation:
Fourth Quarter Third Quarter
2010 2009 2010
Amount included in:
Cost of goods sold $ 308 $ 412 $ 309
Selling and marketing 107 134 104
General and administrative 1,839 1,021 1,241
Total stock-based compensation expense $ 2,254 $ 1,567 $ 1,654
Operating Segment Data:
Fourth Quarter Third Quarter
Net sales: 2010 2009 2010
Asia Pacific $ 224,680 $ -- $ 211,463
North America 156,421 149,924 148,263
Total sales 381,101 149,924 359,726
Inter-segment sales (3,242) -- (1,913)
Total net sales $ 377,859 $ 149,924 $ 357,813
Operating segment income:
Asia Pacific $ 38,257 $ -- $ 32,211
North America 18,986 7,500 17,147
Total operating segment income 57,243 7,500 49,358
Amortization of definite-lived intangibles (4,613) (860) (3,653)
Total operating income 52,630 6,640 45,705
Total other expense (3,782) (2,386) (4,121)
Income before income taxes $ 48,848 $ 4,254 $ 41,584
RECONCILIATIONS1
Fourth Quarter Third Quarter Full Year
2010 2009 2010 2010 2009
EBITDA reconciliation2:
Net income $ 36,529 $ 2,367 $ 32,145 $ 79,899 $ 4,857
Add back items:
Income tax provision 12,319 1,887 9,439 28,738 3,266
Interest expense 6,373 2,802 6,690 22,255 11,198
Amortization of definite-lived intangibles 4,643 889 3,682 13,795 3,567
Depreciation expense 16,633 4,649 14,932 48,747 19,140
EBITDA $ 76,497 $ 12,594 $ 66,888 $ 193,434 $ 42,028
Non-GAAP EPS reconciliation3:
GAAP net income attributable to stockholders $ 33,026 $ 2,367 $ 29,091 $ 71,531 $ 4,857
Add back items:
Amortization of definite-lived intangibles 4,643 889 3,682 13,795 3,567
Stock-based compensation 2,254 1,567 1,654 6,914 6,265
Non-cash interest expense 2,189 1,410 2,187 7,744 5,469
Impairment, restructuring and other charges (54) 6,770 467 17,749 27,868
Income tax effects (2,389) (4,718) (2,113) (12,222) (17,357)
Non-GAAP net income attributable to stockholders $ 39,669 $ 8,285 $ 34,968 $ 105,511 $ 30,669
Non-GAAP earnings per diluted share attributable to stockholders $ 0.49 $ 0.19 $ 0.43 $ 1.49 $ 0.70
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 and restructuring charges, inventory write-down related to facility closures, inventory fair value adjustment, costs related to the Meadville Holdings transaction and miscellaneous closing costs 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 February 10, 2011