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TTM technologies, inc. reports fourth quarter and fiscal year 2013 results
for immediate release
COSTA MESA, CA - February 5, 2014 - TTM Technologies, Inc. (Nasdaq: TTMI), a major global printed circuit board (PCB) manufacturer, today reported results for the fourth quarter and fiscal year 2013, which ended December 30, 2013.
Fourth Quarter 2013 Highlights
Net sales for the fourth quarter of 2013 were $366.1 million compared to $338.7 million in the third quarter of 2013 and $381.7 million in the fourth quarter of 2012. Fourth quarter 2012 revenue included $22 million of revenue from TTM's SYE plant, in which TTM sold its controlling equity interest during the second quarter of 2013.
GAAP operating income for the fourth quarter of 2013 was $29.3 million compared to an operating loss of $1.2 million in the third quarter of 2013 and operating income of $20.7 million in the fourth quarter of 2012.
GAAP net income attributable to stockholders for the fourth quarter of 2013 was $11.3 million, or $0.14 per diluted share. This compares to a GAAP net loss attributable to stockholders of $7.7 million, or $0.09 per share, in the third quarter of 2013 and net income of $13.7 million, or $0.17 per diluted share, in the fourth quarter of 2012.
On a non-GAAP basis, net income attributable to stockholders for the fourth quarter of 2013 was $22.1 million, or $0.27 per diluted share. This compares to non-GAAP net income attributable to stockholders of $11.6 million, or $0.14 per diluted share, for the third quarter of 2013 and $19.3 million, or $0.23 per diluted share, for the fourth quarter of 2012.
Adjusted EBITDA for the fourth quarter of 2013 was $58.4 million, or 16.0 percent of net sales, compared to adjusted EBITDA of $42.3 million, or 12.5 percent of net sales, for the third quarter of 2013 and $52.5 million, or 13.7 percent of net sales, for the fourth quarter of 2012.
"We delivered strong results for the fourth quarter as seasonal revenue growth combined with solid execution resulted in increases in gross margins and operating profit," said Tom Edman, CEO of TTM. "Revenue came in toward the high end of our guidance range and non-GAAP earnings were above our expectations for the quarter. Strong demand for our advanced HDI and rigid-flex PCBs used in smartphones, tablets and e-readers in particular drove our product mix shift toward advanced technology PCBs and brought our Asia Pacific factory utilization rates above 90%."
Full Year 2013 Financial Results
Net sales for fiscal year 2013 increased to $1.4 billion from $1.3 billion in fiscal year 2012.
GAAP operating income for fiscal year 2013 was $69.1 million, an increase from an operating loss of $142.0 million in fiscal year 2012. Included in operating results were charges for severance and asset impairments of $14.2 million in 2013 and non-cash charges for goodwill and other asset impairments of $218.4 million in 2012.
GAAP net income attributable to stockholders for fiscal year 2013 was $21.9 million, or $0.26 per diluted share, compared to a GAAP net loss of $174.6 million, or $2.13 per share, for fiscal year 2012.
On a non-GAAP basis, net income attributable to stockholders for fiscal year 2013 was $51.3 million, or $0.62 per diluted share. This compares to fiscal year 2012 non-GAAP net income attributable to stockholders of $69.8 million, or $0.85 per diluted share.
Adjusted EBITDA for fiscal year 2013 was $181.3 million, or 13.3 percent of net sales, compared to $190.6 million, or 14.1 percent of net sales, for fiscal year 2012.
"During 2013, we implemented a number of key initiatives to increase operational efficiencies and improve our margin profile. We believe actions such as the divesture of the SYE plant and the closure of the MAS facility will improve our cost structure over time," continued Edman.
"As we enter 2014, we expect a normal seasonal decline in our business in the first half of the year followed by an increase in the second half. Longer term, we believe we are well positioned to extend our leadership position in the PCB industry by delivering advanced technology to a broad customer base across diverse end markets," concluded Edman.
Our first quarter 2014 guidance reflects the seasonal decline in business in our cell phone and computing end markets. For the first quarter of 2014, TTM estimates that revenue will be in the range of $290 million to $310 million, and non-GAAP earnings in the range of $0.03 to $0.09 per diluted share.
To Access the Live Webcast/Conference Call
The Company will host a conference call and webcast to discuss fourth quarter and fiscal year 2013 results and first quarter 2014 outlook on Wednesday, February 5, 2014, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time).
Telephone access is available by dialing domestic 1-888-549-7750 or international 1-480-629-9866. The conference call also will be webcast on TTM Technologies' website at www.ttmtech.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 Technologies' website at www.ttmtech.com.
About Our Non-GAAP Financial Measures
This release includes information about the Company's non-GAAP net income attributable to stockholders and non-GAAP earnings per share attributable to stockholders, which are non-GAAP financial measures. The Company presents non-GAAP financial information to enable investors to see the company through the eyes of management and to provide better insight into the Company's ongoing financial performance.
Management believes that the non-GAAP financial information - which add back amortization of intangibles, stock-based compensation expense, non-cash interest expense on debt, asset impairments, restructuring and other unusual or infrequent items (such as the gain realized on the SYE transaction) as well as the associated tax impact of these charges and discrete tax items - provides additional useful information to investors regarding the Company's ongoing financial condition and results of operations.
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. The Company 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.
Safe Harbor Statement
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, which 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, contemplated significant capital expenditures and related financing requirements, the Company's dependence upon a small number of customers, the unpredictability of and potential fluctuation in future revenues and operating results and other "Risk Factors" set forth in the Company's most recent SEC filings.
TTM Technologies, Inc. is a major global printed circuit board manufacturer, focusing on quick-turn and technologically advanced PCBs and the backplane and sub-system assembly business. 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. Additional information can be found at www.ttmtech.com.
(ticker: TTMI, exchange: NASDAQ)
Chief Financial Officer