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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
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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