Exhibit 99.1

 

	Contact:	Stacey Peterson
		Chief Financial Officer
		714/241-0303

 

TTM TECHNOLOGIES, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2004 RESULTS

 

SANTA ANA, CA – February 8, 2005 – TTM Technologies, Inc. (Nasdaq: TTMI), a leading manufacturer of time-critical and technologically advanced printed circuit boards, today reported results for the fourth quarter and full year ended December 31, 2004.

 

“We are very pleased with our performance in 2004, which was highlighted by strong sales growth, expanded profitability, and the continued success of our time and technology strategy,” said Kent Alder, President and CEO of TTM Technologies.  “We continue to generate strong cash flow and ended the year with cash and short-term investments of $58.5 million and no debt.”

 

Fourth-Quarter Results

 

Fourth quarter 2004 net sales increased 9 percent to $59.2 million, compared to $54.3 million for the fourth quarter of 2003.  Sequentially, from the third quarter of 2004, net sales decreased $3.0 million, or 5 percent.  This sequential decrease resulted primarily from a reduction in orders associated with capacity constraints at our Chippewa Falls facility late in the third quarter and early in the fourth quarter of 2004.

 

For the fourth quarter of 2004, quick-turn business represented 26 percent of net sales, compared to 27 percent for the fourth quarter of 2003 and 22 percent for the third quarter of 2004.  Year-over-year growth in standard lead-time products outpaced that of quick-turn products.  Sequentially, quick-turn expanded as a percentage of net sales, due to higher quick-turn volumes as well as a mix shift associated with the temporary slowdown at Chippewa Falls.

 

Gross margin decreased to 24.6 percent for the fourth quarter of 2004, compared to 26.1 percent for the fourth quarter of 2003 and 28.4 percent for the third quarter of 2004.  Gross margin in the fourth quarter was affected by a raw materials price increase, pricing pressure, lower operating efficiency, and mix changes.

 

Primarily due to the decline in gross margin, as well as higher selling expenses related to the greater percentage of quick-turn products, TTM posted an operating profit of $8.2 million for the fourth quarter of 2004, compared to $11.6 million for the third quarter of 2004.  Year-over-year, operating profit increased from $7.1 million for the fourth quarter of 2003.

 

Net income for the fourth quarter of 2004 was $6.8 million, or $0.16 per diluted share, compared with $8.0 million, or $0.19 per diluted share, for the third quarter of 2004, and $4.7 million, or $0.11 per diluted share, for the fourth quarter of 2003.  During the fourth quarter, TTM recorded a $1.2 million reduction to its income tax expense, which resulted from reducing its deferred income tax asset valuation allowance.  Based on increases in 2004 earnings and expectations of future earnings, the company believes it will most likely utilize this portion of its net deferred tax assets.  Excluding the $1.2 million reversal of the tax valuation allowance, earnings per share would have been $0.14 per diluted share for the fourth quarter of 2004.

 

EBITDA (earnings before interest, taxes, depreciation and amortization) for the fourth quarter of 2004 was $11.0 million, compared with $9.9 million for the fourth quarter of 2003 and $14.2 million for the third quarter of 2004.

 

 

Full-Year Performance

 

Net sales for 2004 expanded 33 percent to $240.6 million from $180.3 million for 2003.  Net income increased to $28.3 million, or $0.68 per diluted share, in 2004, compared to $7.4 million, or $0.18 per diluted share, in 2003.  Results in 2004 included a restructuring charge of $855,000 pretax, or $0.01 per share, and a $1.2 million, or $0.03 per share, reversal of a tax valuation allowance.  For 2003, there was a restructuring charge of $649,000 pretax, or $0.01 per share, and an extraordinary gain of $1.5 million, or $0.03.

 

Financial Strength

 

In the fourth quarter of 2004, TTM generated cash flow from operations of $9.4 million, enabling it to fund net capital expenditures of $3.9 million, while expanding its cash and short-term investments by $6.0 million, to a total of $58.5 million.

 

Outlook

 

For the first quarter of 2005, TTM is estimating revenues of $59 million to $62 million and earnings of $0.12 to $0.15 per diluted share.  “While we expect business conditions to remain relatively stable, the benefits of our capacity expansion at Chippewa Falls should offset the seasonal slowdown in quick-turn typically experienced in the first quarter of the year,” concluded Alder.  “For 2005 we are optimistic about TTM’s prospects, as we continue to add new customers, cross-sell our three integrated facilities, upgrade our technological capabilities, expand our capacity, and increase market 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 company’s 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 fourth-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 February 15, 2005, on the company’s Web site, 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, 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, the company’s 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 company’s most recent SEC filings.

 

- Tables Follow -

 

 

TTM TECHNOLOGIES, INC.

 

Selected Unaudited Financial Information

 

(In thousands, except per share data)

 

		Fourth Quarter						Third Quarter 2004			Full Year
		2004			2003						2004				2003
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales		$	59,164		$	54,309		$	62,195		$	240,650				$	180,317
Cost of goods sold		44,611			40,114			44,557			172,103				145,694
Gross profit		14,553			14,195			17,638			68,547				34,623
Operating expenses:
Selling and marketing		3,082			2,965			2,791			12,032				10,858
General and administrative		2,989			3,376			2,914			13,223				11,696
Amortization of intangibles		301			301			300			1,202				1,202
Restructuring charges		—			446			—			855				649
Total operating expenses		6,372			7,088			6,005			27,312				24,405
Operating Income		8,181			7,107			11,633			41,235				10,218
Interest expense		(58		)	(132		)	(82		)	(367		)		(583			)
Amortization of debt issuance costs		(13		)	(26		)	(82		)	(148		)		(97			)
Interest income and other, net		394			83			191			793				352
Income before income taxes and extraordinary item		8,504			7,032			11,660			41,513				9,890
Income tax provision		(1,655		)	(2,788		)	(3,615		)	(13,183		)		(3,901			)
Net income before extraordinary item		6,849			4,244			8,045			28,330				5,989
Extraordinary gain		—			411			—			—				1,453
Net income		$	6,849		$	4,655		$	8,045		$	28,330				$	7,442
Earnings per common share before extraordinary item:
Basic		$	0.17		$	0.11		$	0.20		$	0.69				$	0.15
Diluted		0.16			0.10			0.19			0.68				0.15
Earnings per common share:
Basic		0.17			0.12			0.20			0.69				0.19
Diluted		0.16			0.11			0.19			0.68				0.18
Weighted average common shares:
Basic		40,897			40,415			40,851			40,780				39,993
Diluted		41,685			42,015			41,769			41,868				41,123

 

 

SELECTED BALANCE SHEET DATA

 

		December 31, 2004			December 31, 2003
Cash and short-term investments		$	58,538		$	31,745
Accounts receivable, net		35,778			28,519
Inventories, net		8,993			8,617
Total current assets		106,334			74,887
Net property, plant and equipment		52,174			43,536
Other assets		77,262			87,434
Total assets		235,770			205,857
Current maturities of long-term debt		$	—		$	4,444
Other current liabilities		23,689			18,091
Long-term liabilities		455			4,995
Shareholders’ equity		211,626			178,327
Total liabilities and shareholders’ equity		235,770			205,857

 

SUPPLEMENTAL DATA

 

			Fourth Quarter						Third Quarter 2004			Full Year
			2004			2003						2004			2003
EBITDA			$	11,030		$	9,911		$	14,227		$	51,560		$	21,057
EBITA			$	8,905		$	7,931		$	12,154		$	43,347		$	13,283
Gross margin			24.6		%	26.1		%	28.4		%	28.5		%	19.2		%
EBITDA margin			18.6			18.2			22.9			21.4			11.7
Operating margin			13.8			13.1			18.7			17.1			5.7
End Market Breakdown:
			Fourth Quarter
			2004			2003
	Networking/communications		44.0		%	41.7		%
	High-end computing		30.7			29.9
	Industrial/medical		12.0			12.7
	Computer peripherals		5.5			9.7
	Handheld		3.0			2.9
	Other		4.8			3.1

 

RECONCILIATIONS*

 

		Fourth Quarter						Third Quarter 2004			Full Year
		2004			2003						2004			2003
EBITA/EBITDA reconciliation:
Net income		$	6,849		$	4,655		$	8,045		$	28,330		$	7,442
Add back items:
Income taxes		1,655			2,788			3,615			13,183			3,901
Interest expense		58			132			82			367			583
Amortization of debt issuance costs		13			26			82			148			97
Amortization of intangibles		330			330			330			1,319			1,260
EBITA		8,905			7,931			12,154			43,347			13,283
Depreciation expense		2,125			1,980			2,073			8,213			7,774
EBITDA		$	11,030		$	9,911		$	14,227		$	51,560		$	21,057

 

* 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.