TTM Technologies, Inc. Reports Fiscal Second Quarter 2020 Results

SANTA ANA, Calif., July 29, 2020 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (NASDAQ:TTMI), a leading global printed circuit board (“PCB”) and radio frequency (“RF”) components manufacturer, today reported results for the second quarter of fiscal 2020, which ended on June 29, 2020.

On April 19th, TTM completed the previously announced sale of its Mobility business unit. The operating results and related assets and liabilities of the Mobility business under US GAAP are presented as discontinued operations for all periods. To facilitate the comparison of TTM’s results to previously issued guidance, non-GAAP financial information is also provided below which includes approximately three weeks of results for the Mobility business unit as well as results from the previously announced closure of the two E-MS plants. Please refer to the earnings schedule for additional details on exited businesses and continuing operations.

Second Quarter 2020 Highlights

GAAP net sales were $570.3 million
Non-GAAP net sales were $601.1 million
GAAP net income of $192.8 million, or $1.79 per diluted share, inclusive of a net gain on the sale of the Mobility business unit of $183.1 million or $1.70 per diluted share
Non-GAAP net income was $33.3 million, or $0.31 per diluted share, inclusive of $0.01 of foreign exchange loss
Cash flow from operations of $119.0 million
Today repaid $400 million of Term Loan B from cash received from Mobility Business Unit divestiture

Second Quarter 2020 GAAP Financial Results
Net sales from continuing operations for the second quarter of 2020 were $570.3 million, compared to $526.9 million in the second quarter of 2019 and $497.6 million in the first quarter of 2020.

GAAP operating income from continuing operations for the second quarter of 2020 was $23.0 million, compared to $29.0 million in the second quarter of 2019 and $16.2 million in the first quarter of 2020.

GAAP net income for the second quarter of 2020 was $192.8 million, or $1.79 per diluted share and includes an estimated net gain of $183.1 million from the sale of the Mobility business. This compares to net income of $3.4 million, or $0.03 per diluted share in the second quarter of 2019, and net loss of $1.2 million, or ($0.01) per diluted share, in the first quarter of 2020.

Second Quarter 2020 Non-GAAP Financial Results
Net sales for the second quarter of 2020 were $601.1 million, compared to $633.0 million in the second quarter of 2019 and $610.8 million in the first quarter of 2020.

On a non-GAAP basis, net income for the second quarter of 2020 was $33.3 million, or $0.31 per diluted share. This compares to non-GAAP net income of $21.3 million, or $0.20 per diluted share, for the second quarter of 2019 and $19.6 million, or $0.18 per diluted share, in the first quarter of 2020.

Adjusted EBITDA for the second quarter of 2020 was $80.3 million, or 13.4 percent of net sales, compared to adjusted EBITDA of $82.9 million, or 13.1 percent of net sales, for the second quarter of 2019 and $82.1 million, or 13.4 percent of net sales, for the first quarter of 2020.

“In the second quarter, TTM demonstrated excellent operational execution and overcame COVID-19 related challenges to deliver revenue and earnings above the previously guided range. All of our manufacturing facilities continue to remain operational and I want to recognize all of our employees for their tremendous efforts in support of our customers during these challenging times,” said Tom Edman, CEO of TTM. “The diversified mix of end markets that we serve enabled TTM to grow revenues and outperform earnings expectations despite weakness in the automotive and commercial aerospace end markets. Finally, TTM has shown financial discipline, bringing our net debt to EBITDA ratio to 2.1, following the receipt of proceeds from the sale of the Mobility Business Unit and subsequent repayment of our Term loan.”

Business Outlook
Looking ahead, we believe that we will continue to experience COVID-19 related impacts on our end markets as well as inefficiencies with our own production. Taking this into consideration, TTM estimates that revenue for the third quarter of 2020 will be in the range of $470 million to $510 million, and non-GAAP net income will be in the range of $0.16 to $0.22 per diluted share. This guidance no longer includes the Mobility Business Unit but continues to include the E-MS business unit while that business winds down.

Live Webcast/Conference Call
TTM will host a conference call and webcast to discuss second quarter 2020 results and the third quarter 2020 outlook on Wednesday, July 29, 2020, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call will include forward-looking statements.

Telephone access is available by dialing domestic 800-367-2403 or international 334-777-6978 (ID 9715005). The conference call also will be webcast on TTM’s website at www.ttm.com.

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 www.ttm.com.

About TTM
TTM Technologies, Inc. is a leading global printed circuit board manufacturer, focusing on quick-turn and volume production of technologically advanced PCBs and backplane assemblies as well as a global designer and manufacturer of high-frequency radio frequency (RF) and microwave components and assemblies. 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
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, the impact of COVID-19, 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
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 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.

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 is not available without unreasonable effort and has not been provided.

- Tables Follow -

TTM TECHNOLOGIES, INC.
Selected Unaudited Financial Information
(In thousands, except per share data)


			Second Quarter						First Quarter			First Two Quarters
				2020		2019*				2020			2020		2019*

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

	Net sales		$	570,298		$	526,877		$	497,646		$	1,067,944		$	1,063,322
	Cost of goods sold			469,868			434,029			416,304			886,172			871,648

	Gross profit			100,430			92,848			81,342			181,772			191,674

	Operating expenses:
		Selling and marketing		15,969			16,898			16,169			32,138			34,458
		General and administrative		33,309			29,137			34,339			67,648			58,987
		Research and development		5,181			4,496			4,762			9,943			9,212
		Amortization of definite-lived intangibles		9,561			10,593			9,562			19,123			26,745
		Restructuring charges		13,414			2,732			328			13,742			3,164
		Total operating expenses		77,434			63,856			65,160			142,594			132,566

	Operating income			22,996			28,992			16,182			39,178			59,108

	Interest expense			(18,572	)		(20,553	)		(19,781	)		(38,353	)		(41,688	)
	Other, net			455			3,007			2,502			2,957			2,650

	Income (Loss) from continuing operations before income taxes			4,879			11,446			(1,097	)		3,782			20,070
	Income tax benefit (provision)			4,467			1,047			(2,123	)		2,344			(1,339	)

	Net income (loss) from continuing operations			9,346			12,493			(3,220	)		6,126			18,731
	Income (loss) from discontinued operations, net of income taxes			183,464			(9,069	)		2,046			185,510			(18,559	)
	Net income (loss)		$	192,810		$	3,424		$	(1,174	)	$	191,636		$	172

	* Reclassified Research and development expenses as a separate line item from General and administrative expenses

	Earnings (loss) per share:
		Basic earnings (loss) per share from continuing operations	$	0.09		$	0.12		$	(0.03	)	$	0.06		$	0.18
		Basic earnings (loss) per share from discontinued operations		1.72			(0.09	)		0.02			1.75			(0.18	)
		Basic earnings (loss) per share	$	1.81		$	0.03		$	(0.01	)	$	1.81		$	0.00

		Diluted earnings (loss) per share from continuing operations	$	0.09		$	0.12		$	(0.03	)	$	0.06		$	0.18
		Diluted earnings (loss) per share from discontinued operations		1.70			(0.09	)		0.02			1.72			(0.18	)
		Diluted earnings (loss) per share	$	1.79		$	0.03		$	(0.01	)	$	1.78		$	0.00


	Weighted-average shares used in computing per share amounts:
		Basic		106,295			105,470			105,686			105,990			104,893
		Diluted		107,485			132,045			105,686			107,431			105,860


	Reconciliation of the denominator used to calculate basic earnings per share and diluted earnings per share:

	Net income			9,346			12,493						6,126			18,731
		Add back items: interest expense, net of tax		-			2,780						-			-
	Adjusted net income			9,346			15,273						6,126			18,731
	Weighted-average shares outstanding			106,295			105,470						105,990			104,893
	Dilutive effect of convertible debt			-			25,938						-			-
	Dilutive effect of warrants			-			-						-			-
	Dilutive effect of performance-based stock units, restricted stock units & stock options			1,190			637						1,441			967
	Diluted shares			107,485			132,045						107,431			105,860
	Earnings per share:
		Basic earnings per share from continuing operations	$	0.09		$	0.12					$	0.06		$	0.18
		Basic earnings (loss) per share from discontinued operations		1.72			(0.09	)					1.75			(0.18	)
		Basic earnings per share	$	1.81		$	0.03					$	1.81		$	0.00

		Diluted earnings per share from continuing operations	$	0.09		$	0.12					$	0.06		$	0.18
		Diluted earnings (loss) per share from discontinued operations		1.70			(0.09	)					1.72			(0.18	)
		Diluted earnings per share	$	1.79		$	0.03					$	1.78		$	0.00

SELECTED BALANCE SHEET DATA
			June 29, 2020			December 30, 2019
	Cash and cash equivalents, including restricted cash		$	694,668		$	379,818
	Accounts and notes receivable, net			414,329			503,598
	Contract assets			287,281			254,600
	Inventories			122,847			113,753
	Current assets held for sale			-			67,572
	Total current assets			1,871,912			1,342,684
	Property, plant and equipment, net			660,866			678,201
	Operating lease right of use asset			21,993			22,173
	Non-current assets held for sale			-			425,597
	Other non-current assets			1,039,900			1,092,278
	Total assets			3,594,671			3,560,933

	Short-term debt, including current portion of long-term debt		$	649,975		$	249,975
	Accounts payable			351,819			329,866
	Current liabilities held for sale			-			185,391
	Total current liabilities			1,197,457			946,666
	Debt, net of discount			832,834			1,225,962
	Non-current liabilities held for sale			-			1,530
	Total long-term liabilities			951,649			1,335,230
	Total equity			1,445,565			1,279,037
	Total liabilities and equity			3,594,671			3,560,933


SUPPLEMENTAL DATA
			Second Quarter						First Quarter			First Two Quarters
				2020			2019			2020			2020		2019*
	Gross margin			17.6	%		17.6	%		16.3	%		17.0	%		18.0	%
	Operating margin			4.0	%		5.5	%		3.3	%		3.7	%		5.6	%

	End Market Breakdown, including Mobility:
			Second Quarter						First Quarter
				2020			2019			2020

		Aerospace/Defense		31	%		28	%		30	%
		Automotive		12	%		16	%		12	%
		Cellular Phone		3	%		6	%		11	%
		Computing/Storage/Peripherals		13	%		15	%		14	%
		Medical/Industrial/Instrumentation		20	%		15	%		16	%
		Networking/Communications		19	%		17	%		14	%
		Other		2	%		3	%		3	%





	Stock-based Compensation, including Mobility:
			Second Quarter						First Quarter
				2020			2019			2020
		Amount included in:
		Cost of goods sold	$	620		$	569		$	850
		Selling and marketing		291			383			451
		General and administrative		1,690			2,611			3,477
		Research & Development		46			39			57
		Total stock-based compensation expense	$	2,647		$	3,602		$	4,835


	Operating Segment Data:
			Second Quarter						First Quarter
		Net sales:		2020			2019			2020
		PCB	$	520,067		$	466,960		$	467,430
		E-M Solutions		50,231			59,917			30,216
		Total net sales	$	570,298		$	526,877		$	497,646

		Operating segment income:
		PCB	$	80,056		$	62,463		$	61,626
		E-M Solutions		(15,577	)		863			(4,329	)
		Corporate		(30,538	)		(22,561	)		(30,170	)
		Total operating segment income		33,941			40,765			27,127
		Amortization of definite-lived intangibles		(10,945	)		(11,773	)		(10,945	)
		Total operating income		22,996			28,992			16,182
		Total other expense		(18,117	)		(17,546	)		(17,279	)
		Income (Loss) from continuing operations before income taxes	$	4,879		$	11,446		$	(1,097	)

RECONCILIATIONS¹

			GAAP December 30, 2019			Mobility balances December 30, 2019²			Combined December 30, 2019
	Cash and cash equivalents, including restricted cash		$	379,818		$	20,336		$	400,154
	Accounts and notes receivable, net			503,598			66			503,664
	Contract assets			254,600			33,635			288,235
	Inventories			113,753			8,266			122,019
	Current assets held for sale			67,572			(67,572	)		-
	Total current assets			1,342,684			-			1,342,684
	Property, plant and equipment, net			678,201			344,728			1,022,929
	Operating lease right of use asset			22,173			1,983			24,156
	Non-current assets held for sale			425,597			(425,597	)		-
	Other non-current assets			1,092,278			78,886			1,171,164
	Total assets			3,560,933			-			3,560,933

	Short-term debt, including current portion of long-term debt		$	249,975		$	-		$	249,975
	Accounts payable			329,866			153,700			483,566
	Current liabilities held for sale			185,391			(185,391	)		-
	Total current liabilities			946,666			-			946,666
	Debt, net of discount			1,225,962			-			1,225,962
	Non-current liabilities held for sale			1,530			(1,530	)		-
	Total long-term liabilities			1,335,230			-			1,335,230
	Total equity			1,279,037			-			1,279,037
	Total liabilities and equity			3,560,933			-			3,560,933


			Second Quarter						First Quarter			First Two Quarters
				2020			2019			2020			2020		2019*
	Non-GAAP revenue reconciliation³:
		GAAP revenue	$	570,298		$	526,877		$	497,646		$	1,067,944		$	1,063,322
		Revenue from discontinued operations		30,777			106,161			113,174			143,951			189,916
		Non-GAAP revenue	$	601,075		$	633,038		$	610,820		$	1,211,895		$	1,253,238

	Non-GAAP gross profit reconciliation⁴:
		GAAP gross profit	$	100,430		$	92,848		$	81,342		$	181,772		$	191,674
		Gross profit from discontinued operations		2,402			(8,233	)		4,749			7,151			(18,374	)
		Add back item:
		Amortization of definite-lived intangibles		1,384			1,180			1,383			2,767			2,359
		Accelerated Depreciation		2,397			-			-			2,397			-
		Stock-based compensation		620			569			850			1,470			1,275
		Non-GAAP gross profit	$	107,233		$	86,364		$	88,324		$	195,557		$	176,934
		Non-GAAP gross margin		17.8	%		13.6	%		14.5	%		16.1	%		14.1	%

	Non-GAAP operating income reconciliation⁵:
		GAAP operating income	$	22,996		$	28,992		$	16,182		$	39,178		$	59,108
		Operating income (loss) from discontinued operations		976			(12,148	)		1,441			2,417			(24,774	)
		Add back items:
		Amortization of definite-lived intangibles		11,079			12,447			11,620			22,699			30,452
		Accelerated Depreciation		2,754			-			-			2,754			-
		Stock-based compensation		2,647			3,602			4,835			7,482			7,528
		Restructuring, acquisition-related, and other charges		14,273			4,351			1,596			15,869			5,454
		Non-GAAP operating income	$	54,725		$	37,244		$	35,674		$	90,399		$	77,768
		Non-GAAP operating margin		9.1	%		5.9	%		5.8	%		7.5	%		6.2	%

	Non-GAAP net income and EPS reconciliation⁶:
		GAAP net income (loss)	$	9,346		$	12,493			(3,220	)	$	6,126		$	18,731
		Net income (loss) from discontinued operations		183,464			(9,069	)		2,046			185,510			(18,559	)
		Add back items:
		Amortization of definite-lived intangibles		11,079			12,447			11,620			22,699			30,452
		Accelerated Depreciation		2,754			-			-			2,754			-
		Gain on sales of the Mobility business unit		(248,863	)		-			-			(248,863	)		-
		Stock-based compensation		2,647			3,602			4,835			7,482			7,528
		Non-cash interest expense		3,604			3,467			3,553			7,157			7,335
		(Gain) on sale of assets		(274	)		(235	)		(233	)		(507	)		(3,306	)
		Restructuring, acquisition-related, and other charges		13,969			4,351			1,596			15,565			5,454
		Income taxes⁷		55,613			(5,789	)		(593	)		55,020			(9,939	)
		Non-GAAP net income	$	33,339		$	21,267		$	19,604		$	52,943		$	37,696
		Non-GAAP earnings per diluted share	$	0.31		$	0.20		$	0.18		$	0.49		$	0.36

	Non-GAAP diluted number of shares⁸:
		Diluted shares		107,485			132,045			107,378			107,431			105,860
		Dilutive effect of convertible debt		-			(25,938	)		-			-			-
		Non-GAAP diluted number of shares		107,485			106,107			107,378			107,431			105,860

	Adjusted EBITDA reconciliation⁹:
		GAAP net income (loss)	$	9,346		$	12,493		$	(3,220	)	$	6,126		$	18,731
		Net income (loss) from discontinued operations		183,464			(9,069	)		2,046		$	185,510		$	(18,559	)
		Add back items:
		Income tax provision (benefit)		61,498			(2,829	)		2,865			64,363			(4,306	)
		Interest expense		18,572			20,871			20,004			38,576			42,559
		Amortization of definite-lived intangibles		11,079			12,447			11,620			22,699			30,452
		Gain on sales of the Mobility business unit		(248,863	)		-			-			(248,863	)		-
		Depreciation expense		28,871			41,235			42,632			71,503			82,837
		Stock-based compensation		2,647			3,602			4,835			7,482			7,528
		(Gain) on sale of assets		(274	)		(235	)		(233	)		(507	)		(3,306	)
		Restructuring, acquisition-related, and other charges		13,969			4,351			1,596			15,565			5,454
		Adjusted EBITDA	$	80,309		$	82,866		$	82,145		$	162,454		$	161,390
		Adjusted EBITDA margin		13.4	%		13.1	%		13.4	%		13.4	%		12.9	%

	Free cash flow reconciliation, including Mobility:
		Operating cash flow		118,996			86,123			27,913			146,909			123,047
		Capital expenditures, net		(22,370	)		(34,741	)		(32,451	)		(54,821	)		(63,187	)
		Free cash flow	$	96,626		$	51,382		$	(4,538	)	$	92,088		$	59,860

TTM Consolidated
End Markets	1Q 19	2Q 19	3Q 19	4Q 19	FY2019	1Q 20	2Q 20
Aerospace/Defense	27%	28%	24%	26%	26%	30%	31%
Automotive	17%	16%	17%	14%	16%	12%	12%
Cellular Phones	7%	6%	19%	16%	13%	11%	3%
Computing/Storage/Periph	13%	15%	12%	14%	13%	14%	13%
Medical/Industrial/Inst	15%	15%	13%	13%	14%	16%	20%
Networking/Communications	18%	17%	13%	15%	15%	14%	19%
Other	3%	3%	2%	2%	3%	3%	2%

Mobility Business Unit
End Markets	1Q 19	2Q 19	3Q 19	4Q 19	FY2019	1Q 20	2Q 20
Aerospace/Defense	0%	0%	0%	0%	0%	0%	0%
Automotive	5%	6%	3%	2%	4%	3%	4%
Cellular Phones	48%	41%	73%	65%	60%	56%	54%
Computing/Storage/Periph	28%	36%	14%	19%	22%	22%	25%
Medical/Industrial/Inst	7%	5%	2%	3%	4%	3%	4%
Networking/Communications	5%	5%	4%	6%	5%	6%	5%
Other	7%	7%	4%	5%	5%	10%	8%

SZ + SH-EMS
End Markets	1Q 19	2Q 19	3Q 19	4Q 19	FY2019	1Q 20	2Q 20
Aerospace/Defense	0%	1%	0%	0%	0%	0%	0%
Automotive	56%	58%	74%	59%	63%	49%	54%
Cellular Phones	0%	0%	0%	0%	0%	0%	0%
Computing/Storage/Periph	0%	0%	0%	0%	0%	0%	0%
Medical/Industrial/Inst	22%	23%	11%	19%	18%	23%	14%
Networking/Communications	21%	18%	16%	22%	19%	29%	35%
Other	1%	0%	-1%	0%	0%	-1%	-3%

TTM, excluding Mobility, SZ & SH E-MS
End Markets	1Q 19	2Q 19	3Q 19	4Q 19	FY2019	1Q 20	2Q 20
Aerospace/Defense	33%	36%	36%	37%	35%	38%	33%
Automotive	17%	15%	15%	15%	15%	13%	11%
Cellular Phones	0%	-1%	1%	0%	0%	1%	0%
Computing/Storage/Periph	12%	12%	12%	13%	12%	12%	13%
Medical/Industrial/Inst	16%	17%	18%	17%	17%	18%	21%
Networking/Communications	20%	19%	16%	17%	18%	16%	19%
Other	2%	2%	2%	1%	3%	2%	3%

Select Non-GAAP income statement data
TTM Proforma Excluding Mobility, SZ & SH-EMS	Q1-19A	Q2-19A	Q3-19A	Q4-19A	FY 2019A	Q1-20A	Q2-20A
Sales	500.4	486.0	479.7	506.0	1,972.1	483.4	548.9
Gross Profit	97.7	91.2	82.2	100.1	371.2	86.0	105.6
Gross Margin	19.5%	18.8%	17.1%	19.8%	18.8%	17.8%	19.2%
Op Income	52.2	46.2	33.8	49.4	179.8	37.7	54.4
OM	10.4%	9.5%	7.0%	9.8%	9.1%	7.8%	9.9%
EBITDA	70.0	70.6	59.5	70.5	270.5	63.5	76.4
EBITDA %	14.0%	14.5%	12.4%	13.9%	13.7%	13.1%	13.9%

TTM Consolidated	Q1-19A	Q2-19A	Q3-19A	Q4-19A	FY 2019A	Q1-20A	Q2-20A
Sales	620.2	633.0	716.8	719.3	2,689.3	610.8	601.1
Gross Profit	90.6	86.4	106.0	126.8	409.7	88.3	107.2
Gross Margin	14.6%	13.6%	14.8%	17.6%	15.2%	14.5%	17.8%
Op Income	40.5	37.2	54.0	72.4	204.1	35.7	54.7
Operating Margin	6.5%	5.9%	7.5%	10.1%	7.6%	5.8%	9.1%
EBITDA	78.5	82.9	103.5	111.3	376.2	82.1	80.3
EBITDA %	12.7%	13.1%	14.4%	15.5%	14.0%	13.4%	13.4%

Mobility	Q1-19A	Q2-19A	Q3-19A	Q4-19A	FY 2019A	Q1-20A	Q2-20A
Sales	83.8	106.1	182.6	183.5	556.0	113.2	30.8
Gross Profit	(10.1)	(8.2)	18.6	24.3	24.5	4.7	2.4
Gross Margin	-12.1%	-7.8%	10.2%	13.2%	4.4%	4.2%	7.8%
Op Income	(11.9)	(10.3)	15.9	21.0	14.7	2.1	1.1
Operating Margin	-14.2%	-9.7%	8.7%	11.4%	2.6%	1.9%	3.6%
EBITDA	6.0	9.2	36.9	38.5	90.6	21.9	3.8
EBITDA %	7.2%	8.7%	20.2%	21.0%	16.3%	19.3%	12.3%


SZ + SH-EMS	Q1-19A	Q2-19A	Q3-19A	Q4-19A	FY 2019A	Q1-20A	Q2-20A
Sales	36.0	40.9	54.5	29.8	161.2	14.2	21.4
Gross Profit	3.0	3.4	5.2	2.3	13.9	(2.4)	(0.3)
Gross Margin	8.3%	8.3%	9.5%	7.7%	8.6%	-16.7%	-1.4%
Op Income	2.0	1.2	4.3	2.0	9.5	(3.8)	(0.8)
Operating Margin	5.6%	2.9%	7.9%	6.7%	5.9%	-26.8%	-3.8%
EBITDA	2.5	3.1	7.1	2.0	14.7	(3.6)	0.1
EBITDA %	6.9%	7.6%	13.0%	6.7%	9.1%	-25.4%	0.4%

¹This information provides a reconciliation of non-GAAP balance sheet data to the financial information in our consolidated condensed balance sheet and non-GAAP revenue, 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.

²Excludes the estimated gain on sale of Mobility.

³Non-GAAP revenue includes revenue from discontinued operations.

⁴Non-GAAP gross profit and gross margin measures include discontinued operations and exclude amortization of intangibles, accelerated depreciation due to the closure of two EM-Solutions plants, and stock-based compensation expense.

⁵Non-GAAP operating income and operating margin measures include discontinued operations and exclude amortization of intangibles, accelerated depreciation due to the closure of two EM-Solutions plants, stock-based compensation expense, gain on sale of assets, acquisition-related costs, restructuring and other charges.

⁶ This information provides non-GAAP net income and non-GAAP EPS, which are non-GAAP financial measures. Management believes that both measures -- which include discontinued operations and add back amortization of intangibles, accelerated depreciation due to the closure of two EM-Solutions plants, stock-based compensation expense, non-cash interest expense on debt (before consideration of capitalized interest), gain on sale of assets, acquisition-related costs, restructuring 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.

⁷ Income tax adjustments reflect the difference between income taxes based on a non-GAAP tax rate and a forecasted annual GAAP tax rate.

⁸ Non-GAAP diluted number of shares used in computing non-GAAP earnings per share excludes the dilutive effect of convertible debt.

⁹ Adjusted EBITDA is defined as earnings, including discontinued operations, before interest expense, income taxes, depreciation, amortization of intangibles, stock-based compensation expense, gain on sale of assets, acquisition-related costs, restructuring 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.

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

Source: TTM Technologies

Released July 29, 2020

TTM Technologies, Inc. Reports Fiscal Second Quarter 2020 Results

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