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TTM Technologies, Inc. Reports Fourth Quarter 2001 Cash Earnings of $0.04 and Full-Year Results of $0.41 Per Share
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REDMOND, Wash., Jan 31, 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
fourth quarter and full year ended December 31, 2001.
Fourth-Quarter Results In the fourth quarter, revenue and profitability declined, year-over-year, due to general economic weakness and a continued downturn in the electronics industry. Net sales declined 58 percent to $25.4 million, compared to $60.5 million for the fourth quarter of 2000. Gross profit declined 83 percent to $4.8 million, as gross margins declined to 19.0 percent in the fourth quarter of 2001, compared to 45.9 percent for the same period in 2000. As a result of lower volume and reduced absorption of fixed manufacturing overhead, operating income declined 96 percent to $0.9 million in the fourth quarter of 2001, compared to $20.5 million for the fourth quarter of 2000. Net income was $0.3 million, or $0.01 per diluted share, for the fourth quarter of 2001, compared to net income of $12.7 million, or $0.33 per diluted share, for the same period in 2000. Diluted cash earnings per share were $0.04 for the fourth quarter of 2001, compared to $0.36 for the same period in 2000. Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 82 percent to $4.3 million for the fourth quarter of 2001, compared to $23.2 million for the year-ago period. For the fourth quarter of 2001, quick-turn business increased to 39 percent of total revenues, compared to 37 percent for the fourth quarter of 2000. During the quarter, the company gained 40 new customers. "Through a very challenging business environment, we remained profitable in the fourth quarter and for the year, due to effective cost control and capturing new customer accounts," said Kent Alder, President and CEO of TTM Technologies. "We acted quickly to adjust our cost structure as we approached the industry downturn-with lower material costs and a workforce reduction of more than one-third-while significantly expanding our sales and marketing efforts." Full-Year Results Net sales for 2001 declined 37 percent to $129.0 million, compared to $203.7 million for 2000. Gross profit declined 52 percent to $36.8 million, as gross margins declined to 28.5 percent for 2001, compared to 37.6 percent for 2000. During 2001, operating income declined 62 percent to $19.2 million, compared to adjusted operating income (excluding costs associated with the buyout of compensation and management contracts) of $51.3 million in 2000. Net income was $11.0 million, or $0.28 per diluted share, for 2001, compared to adjusted net income (excluding the above-listed items, an extraordinary item related to the extinguishment of debt, and a tax benefit) of $24.7 million, or $0.72 per diluted share, for 2000. Diluted cash earnings per share were $0.41 for 2001, compared to adjusted diluted cash earnings per share of $0.86 in 2000. Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 48 percent to $33.0 million for 2001, compared to adjusted EBITDA of $63.2 million for 2000. Return on Invested Capital TTM's return on invested capital (ROIC), based on tax-affected EBITA, was 5.8 percent in the fourth quarter of 2001, compared with 35.2 percent in the year-ago period. For the year, TTM generated an ROIC of 11.8 percent. The company's balance sheet strengthened further during the quarter. Through 2001, TTM reduced its net debt to $8.1 million, down $25.9 million since year-end 2000. As a result, TTM ended 2001 with a net debt-to-capital ratio of 5.1 percent, compared to 19.8 percent at year-end 2000. Outlook For the first quarter of 2002, TTM anticipates revenues of $22 to $25 million and approximately breakeven cash net income, with cash earnings per share between a profit of $0.02 and a loss of $0.02. "As the industry downturn continues into 2002, we will remain focused on securing new customers, proactive cost management, and strengthening our capital structure, thereby maximizing our financial performance," said Alder. "Our long-term outlook remains optimistic, and we continue to build for the future," concluded Alder. "We have invested in additional quick-turn capacity and advanced our technological capabilities. Our focus on these attractive market niches, combined with our strong balance sheet, will provide us with new opportunities as the printed circuit board industry continues to consolidate." 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 shop 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 fourth quarter and full-year performance and outlook, today at 11:00 a.m. Eastern/8:00 a.m. Pacific time. The call will be simulcast, and available for replay until February 7, 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 registration statement on Form S-3.
TTM TECHNOLOGIES, INC.
Selected Financial Information
(In thousands, except per share data)
Fourth Quarter Full Year
2000
2001 2000 2001 2000 Adjusted*
CONSOLIDATED
STATEMENTS OF INCOME
Net sales $25,427 $60,509 $128,989 $203,729 $203,729
Cost of goods sold 20,604 32,719 92,235 127,137 127,137
Gross profit 4,823 27,790 36,754 76,592 76,592
Operating expenses:
Sales and marketing 1,411 3,217 7,272 10,156 10,156
General and
administrative 1,347 2,876 5,435 8,305 8,305
Amortization of
intangibles 1,202 1,202 4,808 4,810 4,810
Amortization of
deferred retention
bonus -- -- -- 5,470 1,387
Management fees -- -- -- 2,150 650
Total operating
expenses 3,960 7,295 17,515 30,891 25,308
Operating income 863 20,495 19,239 45,701 51,284
Interest expense (543) (979) (2,644) (12,176) (12,176)
Amortization of debt
issuance costs (11) (11) (41) (742) (742)
Interest income and
other, net 100 57 629 181 181
Income before income
taxes and
extraordinary item 409 19,562 17,183 32,964 38,547
Income tax benefit
(provision) (134) (6,831) (6,189) 1,900 (13,854)
Income before
extraordinary item 275 12,731 10,994 34,864 24,693
Extraordinary item,
net of taxes -- -- -- (6,792) --
Net income 275 12,731 10,994 28,072 24,693
Earnings per common
share before
extraordinary items
(EPS):
Basic $ 0.01 $ 0.34 $ 0.29 $ 1.09 $ 0.77
Diluted 0.01 0.33 0.28 1.02 0.72
Cash (diluted)** 0.04 0.36 0.41 1.16 0.86
Earnings per common
share after
extraordinary items
(EPS):
Basic 0.01 0.34 0.29 0.88 0.77
Diluted 0.01 0.33 0.28 0.82 0.72
Cash (diluted)** 0.04 0.36 0.41 0.96 0.86
Weighted average
common shares:
Basic 37,593 37,274 37,482 31,919 31,919
Diluted 38,917 39,142 38,899 34,166 34,166
* Excluding costs associated with the buyout of compensation and
management contracts, extraordinary item related to the extinguishment
of debts and tax benefits related to our IPO.
** Fully diluted EPS plus amortization of intangibles
SELECTED BALANCE SHEET DATA 12/31/01 12/31/00
Cash $24,490 $9,294
Accounts receivable, net 11,208 33,690
Inventories 3,126 6,893
Total current assets 43,971 50,296
Net PP&E 50,906 44,774
Other assets 98,199 107,063
Total assets 193,076 202,133
Current maturities of long-term
debt $ 4,500 $7,031
Other current liabilities 10,372 21,079
Long-term liabilities 28,125 36,281
Shareholders' equity 150,079 137,742
Total liabilities and
shareholders' equity 193,076 202,133
SUPPLEMENTAL DATA
Fourth Quarter Full Year
2000
2001 2000 2001 2000 Adjusted*
EBITDA*** 4,292 23,229 32,971 61,662 63,162
EBITA**** 2,165 21,754 24,676 56,162 57,662
Gross margin 19.0 % 45.9 % 28.5 % 37.6 % 37.6 %
EBITDA margin 16.9 38.4 25.6 30.3 31.0
Operating margin 3.4 33.9 14.9 22.4 25.2
Return on Invested
Capital (after tax) 5.8 % 35.2 % 11.8 % 24.2 %
End Market Breakdown:
Fourth quarter
2001 2000
Networking/communications 25.3 % 38.9 %
High-end computing 22.9 27.3
Industrial/Medical 30.1 18.1
Computer peripherals 16.6 7.9
Handheld 2.7 4.5
Other 2.4 3.3
*** 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.
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SOURCE TTM Technologies, Inc.
CONTACT: Stacey Peterson, Chief Financial Officer of TTM Technologies,
Inc., +1-714-241-0303
URL: http://www.ttmtech.com
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