EX-99.1
Published on April 26, 2006
Exhibit 99.1
Contact: | Steve Richards Chief Financial Officer 714/241-0303 |
TTM TECHNOLOGIES, INC. REPORTS FIRST QUARTER 2006 RESULTS;
STRONG PERFORMANCE CONTINUES, AND OUTLOOK REMAINS POSITIVE
STRONG PERFORMANCE CONTINUES, AND OUTLOOK REMAINS POSITIVE
SANTA ANA, CA April 26, 2006 TTM Technologies, Inc. (Nasdaq: TTMI), a leading
manufacturer of time-critical and technologically advanced printed circuit boards, today reported
results for the first quarter of 2006.
First-Quarter Results
First quarter 2006 net sales increased $9.6 million, or 15 percent, to a record $72.7 million from
$63.1 million in the fourth quarter of 2005 and increased $13.8 million, or 23 percent, from $58.9
million in the first quarter of 2005. The sequential increase, from the fourth quarter of 2005,
resulted primarily from improved demand as well as favorable quick-turn pricing trends.
For the first quarter of 2006, quick-turn business represented 21 percent of net sales, compared to
22 percent for the fourth quarter of 2005 and 21 percent for the first quarter of 2005.
Gross margin increased to 27.8 percent for the first quarter of 2006 from 23.8 percent in the
fourth quarter of 2005 and 23.0 percent for the first quarter of 2005. Gross margin benefited from
higher prices as well as better absorption of fixed costs due to increased production.
General and administrative expense, including amortization of intangibles, was $3.9 million in the
first quarter of 2006, an increase from $3.1 million in the fourth quarter of 2005 and $3.7 million
in the year-ago period. The increase was primarily due to incentive compensation and stock-based
compensation expense.
As a result of strong revenue growth and higher profitability, TTM posted operating income of $13.0
million for the first quarter of 2006, up from $8.8 million for the fourth quarter of 2005 and $6.8
million for the first quarter of 2005.
Net income for the first quarter of 2006 was $8.8 million, or $0.21 per diluted share, compared
with $19.0 million, or $0.46 per diluted share, for the fourth quarter of 2005, and $4.5 million,
or $0.11 per diluted share, for the first quarter of 2005. Net income for the fourth quarter of
2005 included a $12.7 million, or $0.31 per diluted share, benefit from a reduction of the deferred
income tax asset valuation allowance.
EBITDA (earnings before interest, taxes, depreciation and amortization) increased to $16.7 million
for the first quarter of 2006 from $12.5 million for the fourth quarter of 2005 and $9.7 million
for the first quarter of 2005.
In the first quarter of 2006, TTM generated cash flow from operations of $9.8 million, enabling it
to fund net capital expenditures of $3.3 million while expanding its cash and
short-term investments to a total of $90.5 million, an increase of $8.1 million from year-end 2005
levels.
TTM continues to capitalize on strong industry conditions with solid demand across multiple market
segments, especially in networking and communications, said Kent Alder, President and CEO of TTM
Technologies. We significantly increased production at each of our facilities during the first
quarter. Were particularly pleased with TTMs industry-leading earnings, strong cash flow and
margin expansion.
Outlook
For the second quarter of 2006, TTM is estimating further gains, with revenues in a range of $73
million to $77 million and earnings in a range of $0.20 to $0.24 per diluted share.
Conference Call/Webcast
TTM Technologies, Inc. is a leading supplier of time-critical and technologically advanced printed
circuit boards to original equipment manufacturers and electronics manufacturing services
companies. TTM stands for time-to-market, representing how the companys time-critical, one-stop
manufacturing services enable customers to shorten the time required to develop new products and
bring them to market.
The company will conduct a conference call to discuss its first-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 May 3, 2006, on the companys website, www.ttmtech.com.
This release contains forward-looking statements that relate to future events or performance.
These statements reflect the companys 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 companys 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 companys dependence upon the electronics industry, the companys
dependence upon a small number of customers, general economic conditions and specific conditions in
the markets TTM addresses, the unpredictability of and potential fluctuation in future revenues and
operating results, increased competition from low-cost foreign manufacturers, and other Risk
Factors set forth in the companys most recent SEC filings.
- Tables Follow -
TTM TECHNOLOGIES, INC.
Selected Unaudited Financial Information
Selected Unaudited Financial Information
(In thousands, except per share data)
First Quarter | Fourth Quarter | |||||||||||
2006 | 2005 | 2005 | ||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||
Net sales |
$ | 72,688 | $ | 58,883 | $ | 63,131 | ||||||
Cost of goods sold |
52,485 | 45,345 | 48,102 | |||||||||
Gross profit |
20,203 | 13,538 | 15,029 | |||||||||
Operating expenses: |
||||||||||||
Selling and marketing |
3,359 | 3,017 | 3,045 | |||||||||
General and administrative |
3,584 | 3,404 | 2,840 | |||||||||
Amortization of definite-lived intangibles |
300 | 300 | 301 | |||||||||
Total operating expenses |
7,243 | 6,721 | 6,186 | |||||||||
Operating income |
12,960 | 6,817 | 8,843 | |||||||||
Interest expense |
(42 | ) | (51 | ) | (63 | ) | ||||||
Amortization of debt issuance costs |
(19 | ) | (13 | ) | (20 | ) | ||||||
Interest income and other, net |
977 | 384 | 733 | |||||||||
Income before income taxes |
13,876 | 7,137 | 9,493 | |||||||||
Income tax benefit (provision) |
(5,065 | ) | (2,677 | ) | 9,555 | |||||||
Net income |
$ | 8,811 | $ | 4,460 | $ | 19,048 | ||||||
Earnings per common share: |
||||||||||||
Basic |
0.21 | 0.11 | 0.46 | |||||||||
Diluted |
0.21 | 0.11 | 0.46 | |||||||||
Weighted average common shares: |
||||||||||||
Basic |
41,441 | 41,078 | 41,301 | |||||||||
Diluted |
41,978 | 41,784 | 41,810 |
SELECTED BALANCE SHEET DATA
April 3, 2006 | December 31, 2005 | |||||||
Cash and short-term investments |
$ | 90,453 | $ | 82,358 | ||||
Accounts receivable, net |
42,422 | 38,631 | ||||||
Inventories, net |
12,867 | 12,564 | ||||||
Total current assets |
151,376 | 140,415 | ||||||
Net property, plant and equipment |
52,650 | 51,798 | ||||||
Other assets |
77,965 | 80,930 | ||||||
Total assets |
281,991 | 273,143 | ||||||
Accounts payable |
$ | 12,567 | $ | 11,310 | ||||
Total current liabilities |
27,464 | 29,191 | ||||||
Stockholders equity |
254,527 | 243,952 | ||||||
Total liabilities and stockholders equity |
281,991 | 273,143 |
SUPPLEMENTAL DATA
First Quarter | Fourth Quarter | |||||||||||
2006 | 2005 | 2005 | ||||||||||
EBITDA |
$ | 16,678 | $ | 9,684 | $ | 12,477 | ||||||
EBITA |
$ | 14,267 | $ | 7,531 | $ | 9,906 | ||||||
Gross margin |
27.8 | % | 23.0 | % | 23.8 | % | ||||||
EBITDA margin |
22.9 | 16.4 | 19.8 | |||||||||
Operating margin |
17.8 | 11.6 | 14.0 |
End Market Breakdown:
First Quarter | |||||||||
2006 | 2005 | ||||||||
Networking/communications |
44.2 | % | 49.3 | % | |||||
High-end computing |
23.2 | 25.9 | |||||||
Industrial/medical |
18.4 | 14.3 | |||||||
Computer peripherals |
6.0 | 5.0 | |||||||
Handheld |
2.7 | 2.4 | |||||||
Other |
5.5 | 3.1 |
RECONCILIATIONS*
First Quarter | Fourth Quarter | |||||||||||
2006 | 2005 | 2005 | ||||||||||
EBITA/EBITDA reconciliation: |
||||||||||||
Net income |
$ | 8,811 | $ | 4,460 | $ | 19,048 | ||||||
Add back items: |
||||||||||||
Income taxes |
5,065 | 2,677 | (9,555 | ) | ||||||||
Interest expense |
42 | 51 | 63 | |||||||||
Amortization of debt issuance costs |
19 | 13 | 20 | |||||||||
Amortization of intangibles |
330 | 330 | 330 | |||||||||
EBITA |
14,267 | 7,531 | 9,906 | |||||||||
Depreciation expense |
2,411 | 2,153 | 2,571 | |||||||||
EBITDA |
$ | 16,678 | $ | 9,684 | $ | 12,477 | ||||||
* | This information provides a reconciliation of EBITA/EBITDA to the financial information in our consolidated statements of operations. |
EBITDA means earnings before interest expense, income taxes, depreciation and amortization.
EBITA means earnings before interest expense, income taxes
and amortization. We present EBITDA / EBITA to enhance the understanding of our operating results.
EBITDA / EBITA is a key measure
we use to evaluate our operations. In addition, we provide our EBITDA / EBITA because we believe
that investors and securities analysts will find EBITDA /
EBITA to be a useful measure for evaluating our operating performance and comparing our operating
performance with that of similar companies that have
different capital structures and for evaluating our ability to meet our future debt service,
capital expenditures, and working capital requirements. However, EBITDA /
EBITA should not be considered as an alternative to cash flows from operating activities as a
measure of liquidity or as an alternative to net income as a measure
of operating results in accordance with accounting principles generally accepted in the United
States.