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TTM Technologies, Inc. Reports First Quarter 2002 Results
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REDMOND, Wash., Apr 29, 2002 /PRNewswire-FirstCall via COMTEX/ -- TTM Technologies, Inc. (Nasdaq: TTMI), a leading manufacturer of time-critical, technologically advanced printed circuit boards, today reported results for the first quarter ended April 1, 2002. First-Quarter Results In the first quarter, revenue and profitability declined, year-over-year, due to continued weakness in the electronics industry. Net sales declined 48 percent to $23.7 million, compared to $46.0 million for the first quarter of 2001. Gross profit declined 87 percent to $2.3 million, as gross margins declined to 9.9 percent in the first quarter of 2002, compared to 39.8 percent for the same period in 2001. As a result of lower volume and pricing and reduced absorption of fixed manufacturing overhead, the company reported an operating loss of $0.2 million in the first quarter of 2002, compared to operating income of $12.6 million for the first quarter of 2001. Prior period results included a quarterly goodwill amortization charge of $0.9 million, which was eliminated with the adoption of Statement of Financial Accounting Standards No. 142, in the first quarter of 2002. For the first quarter of 2002, the net loss was $0.3 million, or $0.01 per diluted share, compared to net income of $7.6 million, or $0.19 per diluted share, for the same period in 2001. Cash earnings were $22,000, or breakeven on a per share basis, for the first quarter of 2002, compared to $8.8 million, or $0.23 per diluted share, for the same period in 2001. Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 85 percent to $2.4 million for the first quarter of 2002, compared to $15.9 million for the same period in 2001. "Over the course of the quarter, we saw some strengthening of demand in our quick-turn business," said Kent Alder, President and CEO of TTM Technologies. For the first quarter of 2002, quick-turn business increased to 44 percent of total revenues, compared to 38 percent for the first quarter of 2001. "In a challenging business environment, we remained near breakeven in the first quarter, due to the success of our sales efforts and effective cost controls," said Alder. "Not only did we add approximately 40 new customers during the quarter, we expanded existing customer relationships, which is reflected in two additions to our top-10 customer list. On the cost side, we continued to lower both material and labor costs." "Our balance sheet remains among the strongest in the EMS industry as a result of continued positive cash flow from operations and our successful secondary offering completed in February," added Alder. "We believe our strong balance sheet provides us with the resources and flexibility to invest in technology and to position ourselves to capture market share in the future." Return on Invested Capital TTM's return on invested capital (ROIC), based on tax-affected EBITA, was 2.7 percent in the first quarter of 2002, compared with 23.4 percent in the year-ago period. On a trailing 12-month basis, TTM generated an ROIC of 6.7 percent. In the first quarter, the company received net cash proceeds of $15.3 million from its secondary stock offering and generated cash from operations of $3.9 million. At the quarter's end, TTM had net cash of $10.6 million, compared with net debt of $8.1 million at year-end 2001. Outlook "Despite some encouraging improvements we experienced in the first quarter, predicting the timing and nature of a technology and capital spending recovery remains difficult," said Alder. For the second quarter of 2002, TTM anticipates revenues ranging from $22 to $24 million and cash earnings per share between a profit of $0.01 and a loss of $0.01. "Looking ahead, we remain optimistic about our ability to capture additional market share," concluded Alder. "We also expect to remain one of the most profitable companies in the industry, based on our continued focus on sales and marketing efforts, as well as productivity improvements and cost control measures." 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. Conference Call/Webcast The company will conduct a conference call to discuss its first quarter performance and outlook, today at 4:30 p.m. Eastern/1:30 p.m. Pacific time. The call will be simulcast, and available for replay until May 6, 2002, on the company's Web site 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, general economic conditions and specific conditions in the markets TTM addresses, including the recent significant slowdown in the technology sector and related excess capacity, the unpredictability of future revenues and expenses, potential fluctuations in revenues and operating results, and other "Risk Factors" set forth in the company's Form 10-K for 2001.
TTM TECHNOLOGIES, INC.
Selected Financial Information
(In thousands, except per share data)
First Quarter
2001
2002 2001 Adjusted*
CONSOLIDATED STATEMENTS OF INCOME
Net sales $23,734 $46,001 $46,001
Cost of goods sold 21,387 27,705 27,705
Gross profit 2,347 18,296 18,296
Operating expenses:
Sales and marketing 1,655 2,464 2,464
General and administrative 577 2,076 2,076
Amortization of intangibles 300 1,202 300
Total operating expenses 2,532 5,742 4,840
Operating income (185) 12,554 13,456
Interest expense (267) (864) (864)
Amortization of debt issuance costs (10) (10) (10)
Interest income and other, net 53 158 158
Income before income taxes (409) 11,838 12,740
Income tax benefit (provision) 131 (4,276) (4,601)
Net income $(278) $7,562 $8,139
Earnings per common share (EPS):
Basic $(0.01) $0.20 $0.22
Diluted (0.01) 0.19 0.21
Cash (diluted)** 0.00 0.23 0.22
Weighted average common shares:
Basic 38,604 37,353 37,353
Diluted 38,604 38,922 38,922
* Adjusted to show the impact of eliminating goodwill amortization
and the related income tax effect as if SFAS No. 142 had been in
place during the first quarter of 2001
** Fully diluted EPS plus amortization of intangibles
SELECTED BALANCE SHEET DATA 04/01/02 12/31/01
Cash $41,284 $24,490
Accounts receivable, net 12,138 11,208
Inventories 3,369 3,126
Total current assets 59,603 43,971
Net PP&E 49,480 50,906
Other assets 96,846 98,199
Total assets 205,929 193,076
Current maturities of long-term debt $4,781 $4,500
Other current liabilities 9,515 10,372
Long-term liabilities 25,875 28,125
Shareholders' equity 165,758 150,079
Total liabilities and shareholders' equity 205,929 193,076
SUPPLEMENTAL DATA
First Quarter
2001
2002 2001 Adjusted*
EBITDA*** $2,444 $15,870 $15,870
EBITA**** $168 $13,914 $13,914
Gross margin 9.9 % 39.8 % 39.8 %
EBITDA margin 10.3 34.5 34.5
Operating margin (0.8) 27.3 29.3
Return on Invested Capital (after tax) 2.7 % 23.4 % 23.4 %
End Market Breakdown:
First Quarter
2002 2001
Networking/communications 31.2 % 39.5 %
High-end computing 14.4 20.2
Industrial/Medical 28.6 25.7
Computer peripherals 18.3 9.4
Handheld 3.1 3.2
Other 4.4 2.0
*** EBITDA (earnings before interest, taxes, depreciation and
amortization) means earnings before interest expense (including
amortization of debt issuance costs), income taxes, depreciation
and amortization.
**** EBITA (earnings before interest, taxes and amortization) means
earnings before interest expense (including amortization of debt
issuance costs), income taxes and amortization.
SOURCE: TTM Technologies, Inc. |
