REDMOND, Wash., April 26 /PRNewswire/ -- TTM Technologies, Inc.
(Nasdaq: TTMI), a leading manufacturer of time-critical, technologically
advanced printed circuit boards, today reported results for the quarter ended
April 2, 2001.
The company posted solid revenue growth and profitability in the first
quarter, despite challenging industry conditions. Net sales increased
9 percent to $46.0 million from $42.1 million for the first quarter of 2000.
This increase resulted entirely from organic growth. Gross profit increased
49 percent to $18.3 million, as gross profit margins expanded to 39.8 percent
in the first quarter of 2001, compared to 29.2 percent for the same period in
Operating income increased 71 percent to $12.6 million for the first
quarter of 2001, compared to $7.3 million for the first quarter of 2000.
Operating margins increased from 17.4 percent in the first quarter of 2000 to
27.3 percent in the first quarter of 2001. Net income was $7.6 million, or
$0.19 per diluted share, for the first quarter of 2001, compared to
$2.1 million, or $0.07 per diluted share, for the same period in 2000.
Diluted cash earnings per share were $0.23 for the first quarter of 2001,
compared to $0.10 in the year-ago period.
EBITDA increased 53 percent to $15.7 million for the first quarter of
2001, compared to $10.3 million for the same period in 2000. EBITDA margins
expanded from 24.5 percent in the first quarter of 2000 to 34.2 percent in the
first quarter of 2001.
For the first quarter of 2001, quick-turn business as a percentage of
total revenues increased to approximately 38 percent, compared to
approximately 27 percent for the first quarter of 2000. In addition, the
percentage of revenues generated by the networking and high-end computing end
markets expanded from 51 percent in the first quarter of 2000 to 60 percent
the first quarter of 2001.
"We managed operations very effectively during the first quarter, despite
the widespread slowdown in the electronics industry," said Kent Alder,
President and CEO of TTM Technologies. "We maintained strong margins and
controlled expenses, even as we committed greater resources to sales and
marketing. Our strong balance sheet and cash flow give us financial
flexibility and the ability to invest in our quick-turn capacity and
technological capabilities. As a result, we are well positioned to capitalize
on a recovery in the electronics market."
"New customer acquisition is the major focus of our quick-turn strategy.
In the first quarter, the company continued to increase its customer base,
adding a significant number of new customers," Alder stated. "We also
expanded the total number of salespeople -- including sales management, direct
sales, and sales reps -- from 48 at the end of 2000 to 85 currently, well on
our way to our established objective of doubling our sales force in 2001."
Return on Invested Capital
TTM's return on invested capital (ROIC), based on tax-effected EBITA,
expanded in the first quarter of 2001. The annualized rate of return for the
first quarter of 2001 increased to 23 percent from 16 percent for the year-ago
"Despite the sharp slowdown in the electronics industry, the prototype
portion of our quick-turn business remains healthy," stated Alder. "However,
we have experienced a significant slowdown in our volume segment.
Consequently, we expect to fall short of our previously issued full year
guidance of $220 to $224 million in revenues and cash earnings per share of
$0.85 to $0.90 for 2001. Given the deteriorating industry environment
throughout the first quarter and lack of visibility, we expect our second
quarter revenues will be down 25 to 30 percent from first quarter levels.
However, we are unable to provide earnings guidance at this time.
Furthermore, although we are optimistic relative to a rebound in demand in the
second half of the year, we are uncertain about the exact timing of a market
TTM Technologies, Inc. is a leading supplier of time-critical,
technologically advanced printed circuit boards to original equipment
manufacturers and electronic manufacturing services companies. 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. TTM completed its IPO in
September 2000 and trades on the Nasdaq National Market System under the
The company will conduct a conference call to discuss its first-quarter
performance and outlook today at 11 a.m. eastern/8 a.m. pacific time. The
call will be simulcast, and available for replay until May 10, 2001, on the
company's website at www.ttmtech.com .
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, that 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 company's dependence upon a small number of customers, and the other
"Factors That May Affect Future Results" set forth in the company's
TTM TECHNOLOGIES, INC.
Selected Financial Information
(In thousands, except per share data)
CONSOLIDATED STATEMENTS OF INCOME
Net sales $46,001 $42,080
Cost of goods sold 27,705 29,802
Gross profit 18,296 12,278
Sales and marketing 2,464 1,879
General and administrative 2,076 1,244
Amortization of intangibles 1,202 1,202
Amortization of deferred retention bonus -- 462
Management fees -- 150
Total operating expenses 5,742 4,937
Operating income 12,554 7,341
Interest expense (864) (3,811)
Amortization of debt issuance costs (10) (241)
Interest income and other, net 158 109
Income before income taxes 11,838 3,398
Income tax provision (4,276) (1,275)
Net income $ 7,562 $ 2,123
Earnings per common share:
Basic $ 0.20 $ 0.07
Diluted 0.19 0.07
Cash (diluted)** 0.23 0.10
Weighted average common shares:
Basic 37,353 29,925
Diluted 38,922 32,029
** Fully diluted EPS plus amortization of intangibles
SELECTED BALANCE SHEET DATA
As of April 2, As of Dec. 31,
Cash $ 23,724 $ 9,294
Accounts receivable, net 20,932 33,690
Inventories 6,133 6,893
Total current assets 51,216 50,296
Net PP 44,681 44,774
Other assets 107,161 107,063
Total assets 203,058 202,133
Current maturities of long-term
debt $ 7,313 $ 7,031
Other current liabilities 16,179 21,079
Long-term liabilities 34,312 36,281
Shareholders' equity 145,254 137,742
Total liabilities and
shareholders' equity 203,058 202,133
EBITDA*** $15,712 $10,301
EBITA**** 13,756 9,155
Gross margin 39.8% 29.2%
EBITDA margin 34.2 24.5
Operating margin 27.3 17.4
Return on Invested Capital (tax-effected) 23.4% 16.0%
End Market Breakdown:
Networking/communications 39.5% 24.4%
High-end computing 20.2 26.4
Industrial/Medical 25.7 18.5
Computer peripherals 9.4 21.3
Handheld 3.2 4.2
Other 2.0 5.2
*** EBITDA (earnings before interest, taxes, depreciation and
amortization) is the sum of operating income, management fees,
amortization of deferred retention bonus, amortization of
intangibles and depreciation expense.
**** EBITA (earnings before interest, taxes and amortization) is the sum
of operating income, management fees amortization of deferred
retention bonus and amortization of intangibles.
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SOURCE TTM Technologies, Inc.