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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%


  1 This 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.  
 
  2 Excludes the estimated gain on sale of Mobility.  
 
  3 Non-GAAP revenue includes revenue from discontinued operations.  
 
  4 Non-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.  
 
  5 Non-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


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Source: TTM Technologies