EX-99.1
Published on July 29, 2004
Exhibit 99.1
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Contact: |
Stacey Peterson |
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Chief Financial Officer |
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714/241-0303 |
TTM
TECHNOLOGIES, INC. REPORTS INCREASED REVENUES AND
EARNINGS IN THE SECOND QUARTER OF 2004
SANTA ANA, CA July 29, 2004 TTM Technologies, Inc. (Nasdaq: TTMI), a leading manufacturer of time-critical and technologically advanced printed circuit boards, today reported results for the second quarter ended June 28, 2004.
Second-Quarter Results
We achieved yet another period of expanded revenues and earnings in the second quarter of 2004, said Kent Alder, President and CEO of TTM Technologies. Market conditions remained favorable, and we continued to capture an increased share of the market. Additionally, the second quarters cash flow from operations of $14.1 million represented our sixteenth consecutive quarter of positive cash flow from operationsevery quarter since we have been a public company.
Second quarter 2004 revenue increased 50 percent to $61.6 million, compared to $41.0 million for the second quarter of 2003. Sequentially, from the first quarter of 2004 to the second quarter, revenues increased $3.9 million, or 7 percent.
For the second quarter of 2004, quick-turn business represented 22 percent of total revenues, compared to 29 percent for the second quarter of 2003 and 24 percent for the first quarter of 2004. The percentage declined due to higher growth in our standard volume products and a lower ramp-to-volume portion of our quick-turn business, at the end of the second quarter.
Gross margins increased to 31.0 percent for the second quarter of 2004, compared to 15.7 percent for the second quarter of 2003 and 30.0 percent for the first quarter of 2004. This margin improvement reflects TTMs significant operating leverage as well as a favorable product mix, as reflected in our increased layer count, and strong operating efficiency.
TTM posted an operating profit of $11.0 million for the second quarter of 2004, compared to an operating profit of $735,000 for the second quarter of 2003 and an operating profit of $10.4 million for the first quarter of 2004. The second quarter of 2004 included a pretax restructuring charge of $855,000 to write down the value of the Burlington property, which we closed two years ago and are holding for sale.
Net income for the second quarter of 2004 was $6.9 million, or $0.17 per diluted share, compared with net income of $6.5 million, or $0.15 per diluted share, for the first quarter of 2004, and net income of $432,000, or $0.01 per diluted share, for the second quarter of 2003. The non-cash restructuring charge reduced second quarter 2004 after-tax earnings by $539,000, or $0.01 per share.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2004 was $13.5 million, up from $3.1 million for the second quarter of 2003 and $12.8 million for the first quarter of 2004.
Financial Strength
Our balance sheet continued to strengthen in the second quarter, continued Alder. Compared to the first quarter of 2004, cash and short-term investments increased $9.9 million, to $47.1 million at the end of the second quarter. Debt declined to $6.7 million at the end of the second quarter from $7.8 million at the end of the first period. TTMs $25 million revolving credit facility remained undrawn at the end of the quarter.
Outlook
With healthy bookings and broad-based customer input confirming that market conditions remain favorable, we expect solid revenue and earnings in the third quarter of 2004, concluded Alder. For the third quarter of 2004, TTM is estimating revenues of $62 million to $64 million and earnings of $0.18 to $0.20 per 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 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 August 5, 2004, on the companys Web site, 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 Registration Statement on Form S-3, and 10-K.
- Tables Follow -
TTM TECHNOLOGIES, INC.
Selected Unaudited Financial Information
(In thousands, except per share data)
CONSOLIDATED STATEMENTS OF OPERATIONS
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Second Quarter |
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First Quarter |
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First Two Fiscal Quarters |
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2004 |
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2003 |
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2004 |
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2004 |
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2003 |
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Net sales |
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$ |
61,595 |
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$ |
41,047 |
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$ |
57,696 |
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$ |
119,291 |
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$ |
80,681 |
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Cost of goods sold |
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42,519 |
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34,601 |
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40,416 |
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82,935 |
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69,709 |
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Gross profit |
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19,076 |
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6,446 |
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17,280 |
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36,356 |
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10,972 |
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Operating expenses: |
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Selling and marketing |
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3,118 |
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2,644 |
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3,041 |
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6,159 |
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5,189 |
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General and administrative |
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3,812 |
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2,766 |
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3,508 |
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7,320 |
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5,580 |
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Amortization of intangibles |
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301 |
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301 |
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300 |
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601 |
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601 |
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Restructuring charges |
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855 |
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855 |
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203 |
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Total operating expenses |
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8,086 |
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5,711 |
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6,849 |
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14,935 |
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11,573 |
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Operating income (loss) |
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10,990 |
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735 |
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10,431 |
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21,421 |
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(601 |
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Interest expense |
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(107 |
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(152 |
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(120 |
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(227 |
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(307 |
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Amortization of debt issuance costs |
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(26 |
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(23 |
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(27 |
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(53 |
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(39 |
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Interest income and other, net |
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116 |
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88 |
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92 |
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208 |
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165 |
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Income (loss) before income taxes and extraordinary item |
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10,973 |
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648 |
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10,376 |
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21,349 |
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(782 |
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Income tax benefit (provision) |
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(4,063 |
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(216 |
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(3,850 |
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(7,913 |
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240 |
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Net income (loss) before extraordinary item |
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6,910 |
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432 |
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6,526 |
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13,436 |
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(542 |
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Extraordinary gain |
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824 |
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Net income |
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$ |
6,910 |
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$ |
432 |
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$ |
6,526 |
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$ |
13,436 |
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$ |
282 |
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Earnings per common share before extraordinary item: |
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Basic |
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$ |
0.17 |
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$ |
0.01 |
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$ |
0.16 |
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$ |
0.33 |
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$ |
(0.01 |
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Diluted |
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0.17 |
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0.01 |
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0.15 |
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0.32 |
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(0.01 |
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Earnings per common share: |
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Basic |
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0.17 |
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0.01 |
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0.16 |
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0.33 |
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0.01 |
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Diluted |
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0.17 |
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0.01 |
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0.15 |
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0.32 |
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0.01 |
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Weighted average common shares: |
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Basic |
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40,759 |
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39,854 |
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40,605 |
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40,683 |
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39,808 |
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Diluted |
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41,851 |
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40,549 |
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42,181 |
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42,014 |
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39,808 |
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SELECTED BALANCE SHEET DATA
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June 28, 2004 |
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December 31, 2003 |
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Cash and short-term investments |
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$ |
47,069 |
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$ |
31,745 |
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Accounts receivable, net |
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35,918 |
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28,519 |
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Inventories, net |
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9,409 |
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8,617 |
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Total current assets |
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96,580 |
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74,887 |
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Net property, plant and equipment |
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45,096 |
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43,536 |
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Other assets |
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80,897 |
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87,434 |
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Total assets |
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222,573 |
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205,857 |
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Current maturities of long-term debt |
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$ |
4,444 |
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$ |
4,444 |
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Other current liabilities |
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22,050 |
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18,091 |
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Long-term liabilities |
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3,077 |
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4,995 |
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Shareholders equity |
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193,002 |
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178,327 |
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Total liabilities and shareholders equity |
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222,573 |
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205,857 |
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SUPPLEMENTAL DATA
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Second Quarter |
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First Quarter |
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First Two Fiscal Quarters |
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2004 |
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2003 |
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2004 |
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2004 |
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2003 |
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EBITDA |
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$ |
13,491 |
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$ |
3,084 |
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$ |
12,812 |
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$ |
26,303 |
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$ |
4,882 |
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EBITA |
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$ |
11,436 |
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$ |
1,124 |
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$ |
10,852 |
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$ |
22,288 |
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$ |
989 |
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Gross margin |
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31.0 |
% |
15.7 |
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30.0 |
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30.5 |
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13.6 |
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EBITDA margin |
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21.9 |
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7.5 |
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22.2 |
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22.0 |
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6.1 |
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Operating margin |
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17.8 |
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1.8 |
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18.1 |
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18.0 |
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(0.7 |
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End Market Breakdown:
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Second Quarter |
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2004 |
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2003 |
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Networking/communications |
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42.7 |
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38.5 |
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High-end computing |
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27.9 |
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38.2 |
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Industrial/medical |
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18.8 |
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10.3 |
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Computer peripherals |
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4.2 |
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7.6 |
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Handheld |
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2.8 |
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2.1 |
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Other |
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3.6 |
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3.3 |
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RECONCILIATIONS*
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Second Quarter |
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First Quarter |
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First Two Fiscal Quarters |
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2004 |
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2003 |
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2004 |
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2004 |
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2003 |
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EBITA/EBITDA reconciliation: |
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Net income |
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$ |
6,910 |
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$ |
432 |
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$ |
6,526 |
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$ |
13,436 |
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$ |
282 |
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Add back items: |
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Income taxes |
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4,063 |
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216 |
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3,850 |
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7,913 |
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(240 |
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Interest expense |
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107 |
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152 |
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120 |
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227 |
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307 |
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Amortization of debt issuance costs |
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26 |
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23 |
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27 |
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53 |
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39 |
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Amortization of intangibles |
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330 |
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301 |
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329 |
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659 |
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601 |
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EBITA |
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11,436 |
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1,124 |
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10,852 |
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22,288 |
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989 |
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Depreciation expense |
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2,055 |
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1,960 |
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1,960 |
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4,015 |
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3,893 |
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EBITDA |
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$ |
13,491 |
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$ |
3,084 |
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$ |
12,812 |
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$ |
26,303 |
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$ |
4,882 |
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* 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.