TTM Technologies, Inc. Reports 2009 Fourth Quarter and Year-End Results
SANTA ANA, Calif., Feb. 4, 2010 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (Nasdaq:TTMI), North America's largest printed circuit board (PCB) manufacturer, today reported results for the fourth quarter of 2009, ended December 31, 2009.
Fourth Quarter 2009 Financial Highlights
-- Net sales totaled $149.9 million, an increase of almost 8 percent from
the third quarter of 2009.
-- TTM demonstrated strong free cash flow, increasing cash and cash
equivalents, restricted cash and short-term investments by $15.0 million
in the fourth quarter and ending the year with a balance of $215.7
million.
Fourth Quarter 2009 Financial Results - GAAP
"We are pleased about the renewed strength in our commercial end markets, which led to a significant increase in revenue over the third quarter," said Kent Alder, President and CEO of TTM. "The increase in demand that we experienced in the fourth quarter was broad-based and marks our first quarter of sequential revenue growth since the first quarter of 2008."
Fourth quarter net sales of $149.9 million increased $10.8 million, or 7.8 percent, from third quarter net sales of $139.1 million.
Fourth quarter gross margin of 18.5 percent improved from third quarter gross margin of 17.4 percent.
Fourth quarter operating income of $7.3 million was an improvement over a third quarter operating loss of $5.4 million. TTM recorded $17.1 million and $6.1 million in charges related to previously announced plant closures and the Meadville Holdings transaction in the third and fourth quarters, respectively. Net income for the fourth quarter was $2.8 million, or $0.06 per diluted share, compared to a net loss in the third quarter of $4.9 million, or $0.11 per basic share. Excluding the charges discussed above, net income for the fourth quarter was $6.2 million, or $0.14 per diluted share, compared to net income of $5.5 million, or $0.13 per diluted share, in the third quarter.
"Considering the significant restructuring we have accomplished over the past year, I am very pleased with our financial performance," Alder said. "Our employees have responded well to the increase in market demand while providing greater operational efficiency to the Company."
Fourth Quarter 2009 Financial Results -- Non-GAAP
Non-GAAP results for the fourth quarter exclude amortization of intangibles, stock-based compensation expense, non-cash interest expense, asset impairment and restructuring charges, costs related to the Meadville Holdings transaction and miscellaneous closing costs as well as the income tax effects related to these expenses.
Fourth quarter non-GAAP net income was $8.4 million, or $0.19 per diluted share. This compares to third quarter non-GAAP net income of $7.8 million, or $0.18 per diluted share.
Excluding asset impairment charges, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the fourth quarter was $14.7 million, or 9.8 percent of net sales, compared to third quarter adjusted EBITDA of $10.7 million, or 7.7 percent of net sales.
Fourth Quarter 2009 Segment Information
TTM Technologies reports two operating segments: PCB Manufacturing and Backplane Assembly.
For the PCB Manufacturing segment, fourth quarter net sales (before inter-company sales) were $128.2 million, compared with $123.2 million in the third quarter. Fourth quarter operating segment income (before amortization of intangibles) was $5.7 million compared to an operating segment loss of $1.9 million in the third quarter. Excluding plant closure and transaction costs, fourth quarter operating income (before amortization of intangibles) for the PCB Manufacturing segment was $11.8 million compared to third quarter operating segment income of $12.1 million
For the Backplane Assembly segment, fourth quarter net sales (before inter-company sales) were $29.3 million, compared with $24.0 million in the third quarter. Fourth quarter operating segment income (before amortization of intangibles) was $2.4 million compared with an operating segment loss of $2.6 million in the third quarter. Excluding plant closure costs, fourth quarter operating income (before amortization of intangibles) for the Backplane Assembly segment was $2.5 million compared to third quarter operating segment income of $0.5 million.
Full Year 2009 Financial Results
Net sales of $582.5 million for the full year 2009 decreased $98.5 million, or 14.5 percent, from full year 2008 net sales of $681.0 million. The decrease in sales was primarily due to the weak economy and TTM's restructuring efforts.
For 2009, TTM recorded net income of $5.2 million, or $ 0.12 per diluted share, compared to a net loss of $36.9 million, or $0.86 per basic share, in 2008. Non-GAAP net income for 2009 was $30.7 million, or $0.71 per diluted share, compared to 2008 non-GAAP net income of $44.6 million, or $1.04 per diluted share.
Balance Sheet
Cash and cash equivalents, restricted cash and short-term investments at the end of the fourth quarter totaled $215.7 million, an increase of $15.0 million from $200.7 million at the end of the third quarter.
First Quarter 2010 Forecast
For the first quarter of 2010, TTM estimates revenue in a range from $132 million to $140 million, GAAP earnings in a range from $0.06 to $0.11 per diluted share and non-GAAP earnings in a range from $0.14 to $0.19 per diluted share. The forecast for the first quarter 2010 does not include results from Meadville Holdings.
To Access the Live Webcast/Conference Call
The company will host a conference call to discuss the fourth quarter results and the first quarter 2010 outlook on February 4, 2010, at 4:30 p.m. Eastern Standard Time (1:30 p.m. Pacific Standard Time).
To listen to the live webcast, log on to the TTM Technologies website at http://www.ttmtech.com. To access the live conference call, dial 1-877-941-2928 or 1-480-629-9725
To Access a Replay of the Webcast
A digital replay will be available on TTM Technologies' website at http://www.ttmtech.com and will remain accessible for one week following the live event.
A telephone replay also will be available beginning two hours after the conclusion of the conference call until February 11, 2010. You may access the telephone replay by dialing 1-303-590-3030 or 1-800-406-7325 and entering confirmation code 4177386.
About Our Non-GAAP Financial Measures
This release includes information about the Company's non-GAAP net income and non-GAAP earnings per share, which are non-GAAP financial measures. Management believes that both measures -- which exclude amortization of intangibles, stock-based compensation expense, non-cash interest expense on our convertible debt, asset impairment and restructuring charges, inventory write-down related to facility closures, 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 North America's largest 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)
-----------------------------------------------------
Third
Fourth Quarter Quarter Full Year
-----------------------------------------------------
2009 20081,2 2009 2009 20081,2
-----------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales $149,924 $164,916 $139,075 $582,476 $680,981
Cost of goods sold 122,250 134,145 114,868 479,267 543,741
-----------------------------------------------------
Gross profit 27,674 30,771 24,207 103,209 137,240
-----------------------------------------------------
Operating expenses:
Selling and marketing 6,480 7,420 6,546 26,517 30,436
General and administrative 11,088 7,940 9,403 36,548 33,255
Amortization of
definite-lived intangibles 860 951 860 3,440 3,799
Restructuring charges 481 -- 2,501 5,490 --
Impairment of long-lived
assets 1,500 123,322 10,293 12,136 123,322
Metal reclamation -- -- -- -- (3,700)
-----------------------------------------------------
Total operating expenses 20,409 139,633 29,603 84,131 187,112
-----------------------------------------------------
Operating income (loss) 7,265 (108,862) (5,396) 19,078 (49,872)
Interest expense (2,802) (2,777) (2,919) (11,198) (11,065)
Interest income 111 223 196 467 1,370
Other, net 305 (416) 57 401 (1,804)
-----------------------------------------------------
Income (loss) before income
taxes 4,879 (111,832) (8,062) 8,748 (61,371)
Income tax (provision)
benefit (2,126) 42,644 3,177 (3,505) 24,460
-----------------------------------------------------
Net income (loss) $2,753 $(69,188) $(4,885) $5,243 $(36,911)
=====================================================
Earnings (loss) per common
share:
Basic $0.06 $(1.62) $(0.11) $0.12 $(0.86)
Diluted $0.06 $(1.62) $(0.11) $0.12 $(0.86)
Weighted average common
shares:
Basic 43,172 42,810 43,142 43,080 42,681
Diluted 43,930 42,810 43,142 43,579 42,681
SELECTED BALANCE SHEET DATA
----------------------
December December 31,
31, 2009 20081
----------------------
Cash and cash equivalents $94,347 $148,465
Restricted cash 120,000 --
Short-term investments 1,351 3,657
Accounts receivable, net 89,519 115,232
Inventories 60,153 71,011
Total current assets 384,433 353,130
Property, plant and
equipment, net 88,577 114,931
Other non-current assets 71,683 72,179
Total assets 544,693 540,240
Accounts payable 37,867 48,750
Total current liabilities 60,696 72,768
Convertible senior notes,
net 139,882 134,914
Total long-term
liabilities 142,694 137,436
Stockholders' equity 341,303 330,036
Total liabilities and
stockholders' equity 544,693 540,240
SUPPLEMENTAL DATA
-----------------------------------------------------
Third
Fourth Quarter Quarter Full Year
-----------------------------------------------------
2009 20081,2 2009 2009 20081,2
-----------------------------------------------------
EBITDA $13,219 $(102,653) $399 $42,653 $(25,065)
EBITA $8,570 $(108,074) $(4,253) $23,513 $(46,389)
Gross margin 18.5% 18.7% 17.4% 17.7% 20.2%
EBITDA margin 8.8 (62.2) 0.3 7.3 (3.7)
Operating margin 4.8 (66.0) (3.9) 3.3 (7.3)
End Market Breakdown:
--------------------------------
Third
Fourth Quarter Quarter
--------------------------------
2009 2008 2009
--------------------------------
Aerospace/Defense 42% 40% 44%
Networking/Communications 38 37 35
Computing/Storage/Periphera
ls 10 12 12
Medical/Industrial/Instrume
ntation/Other 10 11 9
Stock-based Compensation:
--------------------------------
Third
Fourth Quarter Quarter
--------------------------------
2009 2008 2009
--------------------------------
Amount included in:
Cost of goods sold $412 $331 $413
Selling and marketing 134 98 133
General and administrative 1,021 786 980
--------------------------------
Total stock-based
compensation expense $1,567 $1,215 $1,526
================================
Operating Segment Data:
--------------------------------
Third
Fourth Quarter Quarter
--------------------------------
Net sales: 2009 20081 2009
--------------------------------
PCB Manufacturing $128,207 $144,211 $123,171
Backplane Assembly 29,332 31,064 23,950
--------------------------------
Total sales 157,539 175,275 147,121
Inter-company sales (7,615) (10,359) (8,046)
--------------------------------
Total net sales $149,924 $164,916 $139,075
--------------------------------
Operating segment income
(loss):
PCB Manufacturing $5,743 $(107,505) $(1,897)
Backplane Assembly 2,382 (406) (2,639)
--------------------------------
Total operating segment
income (loss) 8,125 (107,911) (4,536)
Amortization of intangibles (860) (951) (860)
--------------------------------
Total operating income
(loss) 7,265 (108,862) (5,396)
Total other expense (2,386) (2,970) (2,666)
--------------------------------
Income (loss) before income
taxes $4,879 $(111,832) $(8,062)
================================
RECONCILIATIONS3
-----------------------------------------------------
Third
Fourth Quarter Quarter Full Year
-----------------------------------------------------
2009 20081 2009 2009 20081
-----------------------------------------------------
EBITA/EBITDA
reconciliation:
Net income (loss) $2,753 $(69,188) $(4,885) $5,243 $(36,911)
Add back items:
Income tax provision
(benefit) 2,126 (42,644) (3,177) 3,505 (24,460)
Interest expense 2,802 2,777 2,919 11,198 11,065
Amortization of intangibles 889 981 890 3,567 3,917
-----------------------------------------------------
EBITA 8,570 (108,074) (4,253) 23,513 (46,389)
Depreciation expense 4,649 5,421 4,652 19,140 21,324
-----------------------------------------------------
EBITDA $13,219 $(102,653) $399 $42,653 $(25,065)
=====================================================
Add back: Impairment of
long-lived assets 1,500 123,322 10,293 12,136 123,322
-----------------------------------------------------
Adjusted EBITDA $14,719 $20,669 $10,692 $54,789 $98,257
=====================================================
Non-GAAP EPS
reconciliation4:
GAAP net income (loss) $2,753 $(69,188) $(4,885) $5,243 $(36,911)
Add back items:
Amortization of
definite-lived
intangibles 889 981 890 3,567 3,917
Stock-based compensation 1,567 1,215 1,526 6,265 5,076
Non-cash convertible debt
interest expense 1,410 1,298 1,381 5,469 3,208
Impairment of long-lived
assets 1,500 123,322 10,293 12,136 123,322
Restructuring charges 481 -- 2,501 5,490 --
Inventory write-down
related to facility
closures -- -- 2,637 3,350 --
Meadville Holdings
transaction costs 4,004 -- 1,377 5,383 --
Miscellaneous closing
costs 160 -- 292 884 --
Income tax effects (4,362) (48,358) (8,235) (17,046) (54,014)
-----------------------------------------------------
Non-GAAP net income $8,402 $9,270 $7,777 $30,741 $44,598
Non-GAAP earnings per
diluted share $0.19 $0.22 $0.18 $0.71 $1.04
1 On January 1, 2009, the Company adopted new authoritative guidance for
convertible debt instruments that may be settled in cash upon conversion
(including partial cash settlement) by separately accounting for the liability
and equity components in a manner that will reflect the entity's nonconvertible
debt borrowing rate when interest cost is recognized in subsequent periods. The
Company has retrospectively applied this method of accounting back to the
issuance date of convertible debt, which for the Company was May 2008.
2 Certain reclassifications of prior year amounts have been made to conform to the
current year presentation. Beginning in the second quarter of 2009, the Company
reports gains and losses from the sale or disposal of property, plant and
equipment as a component of general and administrative expenses in the
consolidated condensed statements of operations. Prior to the second quarter
2009, the gains and losses from the sale or disposal of property, plant and
equipment were included as a component of cost of goods sold.
3 This information provides a reconciliation of EBITA/EBITDA/Adjusted EBITDA and
non-GAAP EPS to the financial information in our consolidated statements of
operations.
4 This information provides non-GAAP net income and non-GAAP EPS, which are
non-GAAP financial measures. Management believes that both measures --- which
exclude amortization of intangibles, stock-based compensation expense, non-cash
interest expense on our convertible debt (before consideration of capitalized
interest), asset impairment and restructuring charges, inventory write-down
related to facility closures, 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.
"EBITDA" means earnings before interest expense, income taxes, depreciation and
amortization."EBITA" means earnings before interest expense, income taxes and
amortization.We present EBITDA / EBITA / Adjusted EBITDA to enhance the
understanding of our operating results.EBITDA / EBITA / Adjusted EBITDA is a key
measure we use to evaluate our operations.In addition, we provide our EBITDA /
EBITA / Adjusted EBITDA because we believe that investors and securities analysts
will find EBITDA / EBITA / Adjusted 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 / EBITA / Adjusted 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.
CONTACT: TTM Technologies, Inc.
Steve Richards, Chief Financial Officer
(714) 241-0303
investor@ttmtech.com
Released February 4, 2010