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TTM Technologies, Inc. Reports Second Quarter 2001 Cash Earnings of $0.09 Per Share
As a result of lower revenues, partially offset by cost savings, operating income declined 56 percent to $3.8 million in the second quarter of 2001, compared to $8.7 million for the second quarter of 2000. Net income was $2.2 million, or $0.06 per diluted share, for the second quarter of 2001, compared to $3.0 million, or $0.09 per diluted share, for the same period in 2000. Diluted cash earnings per share were $0.09 for the second quarter of 2001, compared to $0.13 in the same period in 2000.
Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 42 percent to $7.1 million for the second quarter of 2001, compared to $12.2 million for the second quarter of 2000.
For the second quarter of 2001, quick-turn business as a percentage of total revenues increased to approximately 45 percent, compared to approximately 32 percent for the second quarter of 2000. During the quarter, the company captured more than 60 new customer accounts.
“During the second quarter, we benefited from proactive cost cutting, including a 26 percent year-to-date reduction in the labor force, reduced working hours, lower material costs, and a significant expansion in our sales force,” said Kent Alder, President and CEO of TTM Technologies. “However, the challenging business environment affected all segments of our business, with the greatest impact felt in ramp-to-volume and volume production.”
Return on Invested Capital and Liquidity
TTM's return on invested capital (ROIC), based on tax-effected EBITA, was 10.5 percent in the second quarter of 2001, compared with 18.5 percent in the year-ago period. On a trailing 12-month basis, TTM had an ROIC of 24.6 percent.
The company’s balance sheet strengthened further during the quarter. Through the first half of the year, TTM reduced its net debt to $13.5 million, down $20.5 million since year-end 2000. As a result, TTM has a net debt-to-capital ratio of 8.4 percent, compared to 19.8 percent at year-end 2000.
For the third quarter of 2001, the company is estimating revenues of $26 to $30 million and cash earnings per share of $0.04 to $0.08. “Despite the pressure on revenues, we continue to actively manage our business to maximize profitability and cash flow,” said Alder.
“On a longer-term basis, TTM remains well positioned,” concluded Alder. “We serve the most attractive niches of the printed circuit board market, and we continue to believe our focus on time to market provides better growth prospects and higher profitability than the overall industry. In addition, our specialized production facilities enable us to meet customer needs at any stage, from prototype through volume production. As the printed circuit board industry continues to consolidate, our strong financial position, full-service capabilities and technological sophistication will enable us to continue to capture market share.”
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 shopping manufacturing services enable customers to shorten the time required to develop new products and bring them to market. TTM trades on the Nasdaq National Market System under the symbol “TTMI”.
The company will conduct a conference call to discuss its second-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 July 26, 2001, 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, the unpredictability of future revenues and expenses, potential fluctuations in revenues and operating results and the other "Factors That May Affect Future Results" set forth in the company's Form 10-K for 2000.
TTM TECHNOLOGIES, INC. Selected Financial Information (In thousands, except per share data) First Two Fiscal Second Quarter Quarters 2001 2000 2001 2000 CONSOLIDATED STATEMENTS OF INCOME Net sales $30,666 $46,080 $76,668 $88,160 Cost of goods sold 22,905 31,028 50,610 60,830 Gross profit 7,761 15,052 26,058 27,330 Operating expenses: Sales and marketing 1,907 2,143 4,371 4,022 General and administrative 844 2,153 2,921 3,397 Amortization of intangibles 1,202 1,202 2,404 2,404 Amortization of deferred retention bonus - 462 - 924 Management fees - 350 - 500 Total operating expenses 3,953 6,310 9,696 11,247 Operating income 3,808 8,742 16,362 16,083 Interest expense (668) (3,816) (1,532) (7,627) Amortization of debt issuance costs (10) (254) (21) (495) Interest income and other, net 275 100 434 209 Income before income taxes 3,405 4,772 15,243 8,170 Income tax provision 1,227 1,757 5,503 3,032 Net income 2,178 3,015 9,740 5,138 Earnings per common share (EPS): Basic $0.06 $0.10 $0.26 $0.17 Diluted 0.06 0.09 0.25 0.16 Cash (diluted)* 0.09 0.13 0.31 0.24 Weighted average common shares: Basic 37,441 29,925 37,397 29,925 Diluted 38,894 32,029 38,908 32,029 *Fully diluted EPS plus amortization of intangibles SELECTED BALANCE SHEET DATA July 2, 2001 Dec. 31, 2000 Cash $26,447 $9,294 Accounts receivable, net 13,253 33,690 Inventories 3,854 6,893 Total current assets 47,723 50,296 Net PP 46,937 44,774 Other assets 104,239 107,063 Total assets 198,899 202,133 Current maturities of long-term debt $7,594 $7,031 Other current liabilities 11,091 21,079 Long-term liabilities 32,344 36,281 Shareholders' equity 147,870 137,742 Total liabilities and shareholders' equity 198,899 202,133 SUPPLEMENTAL DATA First Two Fiscal Second Quarter Quarters 2001 2000 2001 2000 EBITDA*** $7,103 12,182 22,814 22,286 EBITA**** 5,010 10,756 18,766 19,911 Gross margin 25.3 % 32.7 % 34.0 % 31.0 % EBITDA margin 23.2 26.4 29.8 25.3 Operating margin 12.4 19.0 21.3 18.2 Return on Invested Capital (after tax) 10.5 % 18.5 % End Market Breakdown: Second Quarter 2001 2000 Networking/communications 35.9 % 31.5 % High-end computing 14.3 26.7 Industrial/Medical 27.3 20.9 Computer peripherals 11.8 11.2 Handheld 7.0 4.2 Other 3.7 5.5 *** EBITDA (earnings before interest, taxes, depreciation and amortization) is the sum of operating income, management fees, amortization of deferred retention bonus, amortization of intangibles and depreciation expense. **** EBITA (earnings before interest, taxes and amortization) is the sum of operating income, management fees amortization of deferred retention bonus and amortization of intangibles. MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X32381824