TTM Technologies, Inc. Reports Third Quarter 2024 Results

SANTA ANA, Calif., Oct. 30, 2024 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (NASDAQ: TTMI) (“TTM”), a leading global manufacturer of technology solutions including mission systems, radio frequency (“RF”) components and RF microwave/microelectronic assemblies and printed circuit boards (“PCB”s) today reported results for the third quarter 2024, which ended on September 30, 2024.

Third Quarter 2024 Highlights

Net sales were $616.5 million
GAAP net income of $14.3 million, or $0.14 per diluted share
Non-GAAP net income was $42.7 million, or $0.41 per diluted share, inclusive of a $17.8 million pre-tax, non-operational, foreign exchange loss
Cash flow from operations was $65.1 million, or 10.6% of sales
Book to bill of 1.20 for the third quarter
A&D program backlog a record $1.49 billion

Third Quarter 2024 GAAP Financial Results

Net sales for the third quarter of 2024 were $616.5 million, compared to $572.6 million in the third quarter of 2023.

GAAP operating income for the third quarter of 2024 was $51.0 million compared to GAAP operating loss for the third quarter of 2023 of $10.2 million, inclusive of a $44.1 million goodwill impairment charge related to the RF&S Components segment.

GAAP net income for the third quarter of 2024 was $14.3 million, or $0.14 per diluted share, compared to GAAP net loss for the third quarter of 2023 of $37.1 million, or ($0.36) per diluted share. GAAP net income for the third quarter of 2024 included a $17.8 million pre-tax foreign exchange loss, compared to a $0.9 million pre-tax foreign exchange gain in the third quarter of 2023.

Third Quarter 2024 Non-GAAP Financial Results

On a non-GAAP basis, net income for the third quarter of 2024 was $42.7 million, or $0.41 per diluted share. This compares to non-GAAP net income of $44.9 million, or $0.43 per diluted share, for the third quarter of 2023. Non-GAAP net income for the third quarter of 2024 included a $17.8 million pre-tax foreign exchange loss, compared to a $0.9 million pre-tax foreign exchange gain in the third quarter of 2023.

Adjusted EBITDA in the third quarter of 2024 was $84.4 million, or 13.7% of sales compared to adjusted EBITDA of $84.1 million, or 14.7% of sales for the third quarter of 2023. Adjusted EBITDA for the third quarter of 2024 included a $17.8 million foreign exchange loss, compared to a $0.9 million foreign exchange gain in the third quarter of 2023.

“TTM delivered strong operating margin performance due to higher revenues, favorable mix, and outstanding operational execution. Revenues reflected the third consecutive quarter of year on year growth due to demand strength in our Aerospace and Defense and Data Center Computing end markets, the latter being driven by generative AI,” said Tom Edman, CEO of TTM. “In addition, cash flow from operations was a healthy 10.6% of revenues enabling the company to maintain a solid balance sheet with a net leverage ratio of 1.4x,” concluded Mr. Edman.

Business Outlook

For the fourth quarter of 2024, TTM estimates that revenues will be in the range of $610 million to $650 million, and non-GAAP net income will be in the range of $0.44 to $0.50 per diluted share.

With respect to the Company’s outlook for non-GAAP net income per diluted share, we are unable to predict with reasonable certainty or without unreasonable effort certain items that may affect a comparable measure calculated and presented in accordance with GAAP. Our expected non-GAAP net income per diluted share excludes primarily the future impact of restructuring actions, impairment charges, unusual gains and losses, and tax adjustments. These reconciling items are highly variable and difficult to predict due to various factors outside of management’s control and could have a material impact on our future period net income per diluted share calculated and presented in accordance with GAAP. Accordingly, a reconciliation of non-GAAP net income per diluted share to a comparable measure calculated and presented in accordance with GAAP has not been provided because the Company is unable to provide such reconciliation without unreasonable effort. For the same reasons, TTM is unable to address the probable significance of the information.

Live Webcast/Conference Call
TTM will host a conference call and webcast to discuss third quarter 2024 results and the fourth quarter 2024 outlook on Wednesday, October 30, 2024, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call will include forward-looking statements.

Access to the conference call is available by clicking on the registration link TTM Technologies, Inc. third quarter 2024 conference call. Registering participants will receive dial in information and a unique PIN to join the call. Participants can register at any time up to the start of the conference call. The conference call will also be simulcast on the company’s website, and can be accessed by clicking on the link TTM Technologies Inc. third quarter 2024 webcast. The webcast will remain accessible for one week following the live event.

To Access a Replay of the Webcast
The replay of the webcast will remain accessible for one week following the live event on TTM’s website at TTM Technologies Inc. third quarter 2024 webcast.

About TTM
TTM Technologies, Inc. is a leading global manufacturer of technology solutions, including mission systems, radio frequency (“RF”) components, RF microwave/microelectronic assemblies, and quick-turn and technologically advanced printed circuit boards (“PCB”s). TTM stands for time-to-market, representing how TTM'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.ttm.com.

Forward-Looking Statements
The preliminary financial results included in this press release represent the most current information available to management. The company’s actual results when disclosed in its Form 10-Q may differ from these preliminary results as a result of the completion of the company’s financial closing procedures, final adjustments, completion of the review by the company’s independent registered accounting firm, and other developments that may arise between now and the disclosure of the final results. This release contains forward-looking statements that relate to future events or performance. TTM cautions you that such statements are simply predictions and actual events or results may differ materially. These statements reflect TTM's current expectations, and TTM 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 TTM statements will not be realized. Further, these statements involve risks and uncertainties, many of which are beyond TTM'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, general market and economic conditions, including interest rates, currency exchange rates, and consumer spending, demand for TTM's products, market pressures on prices of TTM's products, warranty claims, changes in product mix, contemplated significant capital expenditures and related financing requirements, TTM's dependence upon a small number of customers, and other factors set forth in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's public reports filed with the SEC.

About Our Non-GAAP Financial Measures
To supplement our consolidated condensed financial statements presented on a GAAP basis, this release includes information about TTM’s adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share, all of which are non-GAAP financial measures. TTM presents non-GAAP financial information to enable investors to see TTM through the eyes of management and to provide better insight into TTM’s ongoing financial performance.

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 to similar non-GAAP financial measures used by other companies. TTM compensates for these limitations by providing full disclosure of each non-GAAP financial measure and reconciliations below 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.

Contact:
Sameer Desai,
Vice President, Corporate Development & Investor Relations
Sameer.desai@ttmtech.com
714-327-3050

TTM TECHNOLOGIES, INC.

Selected Unaudited Financial Information

(In thousands, except per share data)



CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS		Third Quarter						First Three Quarters
		2024			2023			2024			2023



	Net sales	$	616,538		$	572,582		$	1,791,788		$	1,663,528
	Cost of goods sold		486,650			459,312			1,440,954			1,365,628

	Gross profit		129,888			113,270			350,834			297,900

	Operating expenses:
	Selling and marketing		19,961			18,763			60,053			58,245
	General and administrative		42,567			38,916			124,841			111,829
	Research and development		8,054			6,173			23,922			19,682
	Amortization of definite-lived intangibles		6,951			11,429			28,636			37,245
	Impairment of goodwill		-			44,100			-			44,100
	Restructuring charges		1,393			4,091			6,367			19,061
	Total operating expenses		78,926			123,472			243,819			290,162

	Operating income (loss)		50,962			(10,202	)		107,015			7,738

	Interest expense		(11,768	)		(10,101	)		(36,311	)		(34,751	)
	Loss on extinguishment of debt		-			-			-			(1,154	)
	Gain on sale of subsidiary		-			-			-			1,270
	Other, net		(14,177	)		3,044			(1,086	)		9,310

	Income (loss) before income taxes		25,017			(17,259	)		69,618			(17,587	)
	Income tax provision		(10,706	)		(19,807	)		(18,489	)		(18,469	)

	Net income (loss)	$	14,311		$	(37,066	)	$	51,129		$	(36,056	)

	Earnings (loss) per share:
	Basic	$	0.14		$	(0.36	)	$	0.50		$	(0.35	)
	Diluted		0.14			(0.36	)		0.49			(0.35	)

	Weighted-average shares used in computing per share amounts:
	Basic		101,958			103,510			101,704			102,873
	Diluted		103,828			103,510			103,928			102,873

	Reconciliation of the denominator used to calculate basic earnings per share and diluted earnings per share:
	Weighted-average shares outstanding		101,958			103,510			101,704			102,873
	Dilutive effect of performance-based stock units, restricted stock units and stock options		1,870			-			2,224			-
	Diluted shares		103,828			103,510			103,928			102,873


SELECTED BALANCE SHEET DATA		September 30, 2024		January 1, 2024
	Cash and cash equivalents, including restricted cash	$	469,500	$	450,208
	Accounts and notes receivable, net		422,885		413,557
	Receivable from sale of SH E-MS property		-		6,737
	Contract assets		362,668		292,050
	Inventories		227,913		213,075
	Total current assets		1,524,827		1,429,687
	Property, plant and equipment, net		859,247		807,667
	Operating lease right of use asset		79,500		86,286
	Other non-current assets		955,244		1,000,023
	Total assets		3,418,818		3,323,663

	Short-term debt, including current portion of long-term debt	$	3,465	$	3,500
	Accounts payable		387,071		334,609
	Total current liabilities		763,250		703,984
	Debt, net of discount		912,809		914,336
	Total long-term liabilities		1,108,459		1,108,640
	Total equity		1,547,109		1,511,039
	Total liabilities and equity		3,418,818		3,323,663


SUPPLEMENTAL DATA			Third Quarter						First Three Quarters
			2024			2023			2024	2023
	Gross margin			21.1%			19.8%		19.6%	17.9%
	Operating margin			8.3%			(1.8)%		6.0%	0.5%

	End Market Breakdown:
			Third Quarter
			2024			2023
		Aerospace and Defense		46%			45%
		Automotive		14%			15%
		Data Center Computing		19%			17%
		Medical/Industrial/Instrumentation		14%			16%
		Networking		7%			7%

	Stock-based Compensation:
			Third Quarter
		Amount included in:	2024			2023
		Cost of goods sold	$	2,719		$	2,212
		Selling and marketing		1,087			888
		General and administrative		4,192			2,958
		Research and development		332			309
		Total stock-based compensation expense	$	8,330		$	6,367

	Operating Segment Data:
			Third Quarter
		Net sales:	2024			2023
		PCB	$	606,793		$	563,676
		RF&S Components		9,745			8,906
		Total net sales	$	616,538		$	572,582

		Operating segment income:
		PCB	$	96,659		$	82,868
		RF&S Components		2,427			(41,441	)
		Corporate & Other		(38,838	)		(37,865	)
		Total operating segment income		60,248			3,562
		Amortization of definite-lived intangibles		(9,286	)		(13,764	)
		Total operating income (loss)		50,962			(10,202	)
		Total other expense		(25,945	)		(7,057	)
		Income (loss) before income taxes	$	25,017		$	(17,259	)


RECONCILIATIONS¹			Third Quarter						First Three Quarters
			2024			2023			2024			2023

	Non-GAAP gross profit reconciliation²:
		GAAP gross profit	$	129,888		$	113,270		$	350,834		$	297,900
		Add back item:
		Amortization of definite-lived intangibles		2,335			2,335			7,006			10,566
		Stock-based compensation		2,719			2,212			6,689			5,371
		Unrealized (gain) loss on commodity hedge		(79	)		770			(1,265	)		(491	)
		Purchase accounting related inventory markup		-			-			-			327
		Other charges		871			725			709			3,374
		Non-GAAP gross profit	$	135,734		$	119,312		$	363,973		$	317,047
		Non-GAAP gross margin		22.0	%		20.8	%		20.3	%		19.1	%

	Non-GAAP operating income reconciliation³:
		GAAP operating income (loss)	$	50,962		$	(10,202	)	$	107,015		$	7,738
		Add back items:
		Amortization of definite-lived intangibles		9,286			13,764			35,642			47,811
		Stock-based compensation		8,330			6,367			21,697			16,728
		Gain on sale of property		-			-			(14,420	)		-
		Unrealized (gain) loss on commodity hedge		(79	)		770			(1,265	)		(491	)
		Purchase accounting related inventory markup		-			-			-			327
		Restructuring, acquisition-related and other charges		4,260			47,192			19,306			65,218
		Non-GAAP operating income	$	72,759		$	57,891		$	167,975		$	137,331
		Non-GAAP operating margin		11.8	%		10.1	%		9.4	%		8.3	%

	Non-GAAP net income and EPS reconciliation⁴:
		GAAP net income (loss)	$	14,311		$	(37,066	)	$	51,129		$	(36,056	)
		Add back items:
		Amortization of definite-lived intangibles		9,286			13,764			35,642			47,811
		Stock-based compensation		8,330			6,367			21,697			16,728
		Non-cash interest expense		493			502			1,517			1,726
		Gain on sale of property		-			-			(14,420	)		-
		Loss on extinguishment of debt		-			-			-			1,154
		Gain on sale of subsidiary		-			-			-			(1,270	)
		Unrealized (gain) loss on commodity hedge		(79	)		770			(1,265	)		(491	)
		Purchase accounting related inventory markup		-			-			-			327
		Restructuring, acquisition-related and other charges		4,260			47,192			19,306			65,218
		Income taxes⁵		6,064			13,353			1,977			1,427
		Non-GAAP net income	$	42,665		$	44,882		$	115,583		$	96,574
		Non-GAAP earnings per diluted share	$	0.41		$	0.43		$	1.11		$	0.92

	Non-GAAP diluted number of shares:
		GAAP diluted number of shares		103,828			103,510			103,928			102,873
		Dilutive effect of performance-based stock units, restricted stock units and stock options		-			1,419			-			1,809
		Non-GAAP diluted number of shares		103,828			104,929			103,928			104,682

	Adjusted EBITDA reconciliation⁶:
		GAAP net income (loss)	$	14,311		$	(37,066	)	$	51,129		$	(36,056	)
		Add back items:
		Income tax provision		10,706			19,807			18,489			18,469
		Interest expense		11,768			10,101			36,311			34,751
		Amortization of definite-lived intangibles		9,286			13,764			35,642			47,811
		Depreciation expense		27,829			23,870			78,709			74,060
		Stock-based compensation		8,330			6,367			21,697			16,728
		Gain on sale of property		-			-			(14,420	)		-
		Loss on extinguishment of debt		-			-			-			1,154
		Gain on sale of subsidiary		-			-			-			(1,270	)
		Unrealized (gain) loss on commodity hedge		(79	)		770			(1,265	)		(491	)
		Purchase accounting related inventory markup		-			-			-			327
		Restructuring, acquisition-related and other charges		2,265			46,467			17,473			61,844
		Adjusted EBITDA	$	84,416		$	84,080		$	243,765		$	217,327
		Adjusted EBITDA margin		13.7	%		14.7	%		13.6	%		13.1	%

	Free cash flow reconciliation:
		Operating cash flow	$	65,090		$	58,852		$	150,840		$	139,814
		Capital expenditures, net		(40,859	)		(33,659	)		(100,110	)		(113,783	)
		Free cash flow	$	24,231		$	25,193		$	50,730		$	26,031


¹This information provides a reconciliation of non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP EPS, and adjusted EBITDA to the financial information in our consolidated condensed statements of operations.

²Non-GAAP gross profit and gross margin measures exclude amortization of intangibles, stock-based compensation expense, unrealized (gain) loss on commodity hedge, purchase accounting related inventory markup, and other charges.

³Non-GAAP operating income and operating margin measures exclude amortization of intangibles, stock-based compensation expense, gain on sale of property, unrealized (gain) loss on commodity hedge, purchase accounting related inventory markup, restructuring, acquisition-related costs, and other charges.

⁴ This information provides non-GAAP net income and non-GAAP EPS, 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), gain on sale of property, loss on extinguishment of debt, gain on sale of subsidiary, unrealized (gain) loss on commodity hedge, purchase accounting related inventory markup, restructuring, acquisition-related costs, and other charges as well as the associated tax impact of these charges and discrete tax items -- provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations.

⁵ Income tax adjustments reflect the difference between income taxes based on a non-GAAP tax rate and a forecasted annual GAAP tax rate.

⁶Adjusted EBITDA is defined as earnings before income taxes, interest expense, amortization of intangibles, depreciation, stock-based compensation expense, gain on sale of property, loss on extinguishment of debt, gain on sale of subsidiary, unrealized (gain) loss on commodity hedge, purchase accounting related inventory markup, restructuring, acquisition-related costs, and other charges. We present adjusted 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 adjusted EBITDA because we believe that investors and securities analysts will find 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, 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.

Source: TTM Technologies, Inc.

Released October 30, 2024

TTM Technologies, Inc. Reports Third Quarter 2024 Results

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