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TTM Technologies, Inc. Reports Second Quarter 2001 Cash Earnings of $0.09 Per Share
In the second quarter, general economic weakness and a downturn in the electronics industry led to a year-over-year decline in revenue. Net sales declined 33 percent to $30.7 million compared to $46.1 million for the second quarter of 2000. Gross profit declined 48 percent to $7.8 million, as gross margins declined to 25.3 percent in the second quarter of 2001, compared to 32.7 percent for the same period in 2000.

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.

Outlook

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”.

Conference Call/Webcast

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.

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