EXHIBIT 99.1
Published on April 30, 2008
Exhibit 99.1
FOR IMMEDIATE
RELEASE
|
Contacts:
|
Corporation:
|
Investors
and Media:
|
|
TTM
Technologies, Inc.
|
Guerrant
Associates
|
|
|
Steve
Richards, Chief Financial Officer
|
Laura
Guerrant
|
|
|
(714)
241-0303
|
(808)
882-1467
|
|
|
investor@ttmtech.com
|
lguerrant@guerrantir.com
|
TTM
TECHNOLOGIES, INC. REPORTS FIRST QUARTER 2008 RESULTS
Improved
Net Sales, Gross Margin and Net Income
SANTA ANA,
CA –– April 30, 2008 –– TTM Technologies, Inc. (Nasdaq: TTMI), North America’s
largest printed circuit board (PCB) manufacturer, today reported results for the
first quarter of 2008, ended March 31, 2008.
Financial
& Operational Highlights
|
§
|
First
quarter 2008 net sales of $174.1 million improved 3.9 percent over fourth
quarter 2007 net sales.
|
|
§
|
First
quarter 2008 gross margin of 21.6 percent increased 90 basis points over
fourth quarter 2007 gross margins.
|
|
§
|
First
quarter 2008 net income of $14.4 million improved 21.5 percent over fourth
quarter 2007 net income.
|
|
§
|
Strong
operating cash flow of $26.8 million enabled further pay down of debt
associated with the Printed Circuit Group (PCG)
acquisition. TTM paid down $10 million in debt during the first
quarter, reducing the debt balance to $75
million.
|
First
Quarter 2008 Financial Results
Commenting on results for the first
quarter, Kent Alder, President and CEO of TTM, noted, “We delivered another
quarter of solid financial performance, with the Aerospace/Defense end market
showing improved strength, coupled with continued strong demand for our high
tech manufacturing services. Our results were above expectations, and we
realized sequential improvement in net sales, gross margin and net
income. The first quarter results are a real compliment to the
management team and demonstrate the success we are having as we work to improve
margins.” Alder added, “TTM’s business and end market demand remain
healthy and stable, and the Company has not seen a significant impact from the
slowing global economy. We will continue to operate efficiently and
effectively, with a customer-focused strategy to grow our business and create
value.”
First
quarter 2008 net sales of $174.1 million improved 3.9 percent over fourth
quarter 2007 net sales of $167.5 million.
First
quarter 2008 gross margin of 21.6 percent increased 90 basis points over fourth
quarter 2007 gross margin of 20.7 percent.
Selling
and marketing expense for the first quarter was $7.7 million, representing 4.4
percent of sales. This is relatively consistent with fourth quarter
selling and marketing expense of $7.6 million, representing 4.6 percent of
sales.
TTM
Technologies, Inc. Reports First Quarter 2008 Financial
Results…….Page 2 of 3
General
and administrative expense, including amortization of intangibles, for the first
quarter was $9.2 million, representing 5.3 percent of sales. This
compares to fourth quarter general and administrative expense, including
amortization of intangibles, of $9.5 million, representing 5.7 percent of
sales. The decrease in general and administrative expense was
primarily due to lower auditing and consulting expense.
The
Company noted that a one-time benefit attributable to an agreement
reached with a vendor regarding metal reclamation positively affected operating
income for the quarter. The $3.7 million benefit recorded as
metal reclamation added approximately $0.05 to diluted earnings per share for
the first quarter.
TTM posted
operating income of $24.4 million for the first quarter, an increase of 39.2
percent over fourth quarter operating income of $17.6 million.
First
quarter net income of $14.4 million, or $0.34 per diluted share, increased 21.5
percent over fourth quarter net income of $11.8 million, or $0.28 per diluted
share.
EBITDA
(earnings before interest, taxes, depreciation and amortization) for the first
quarter was $31.0 million, or 17.8 percent of sales, compared with fourth
quarter EBITDA of $24.4 million, or 14.5 percent of sales. (A
reconciliation of this non-GAAP measure is provided after the GAAP financial
statements accompanying this press release.)
First
Quarter Segment Information – PCB Manufacturing and Backplane
Assembly
TTM
Technologies reports two operating segments: PCB Manufacturing and Backplane
Assembly.
For the
PCB Manufacturing segment, first quarter net sales (before inter-company sales)
were $148.7 million, compared with $147.5 million in the fourth
quarter. First quarter operating segment income (before amortization
of intangibles) was $22.7 million, compared with $17.1 million in the fourth
quarter.
For the
Backplane Assembly segment, first quarter net sales (before inter-company sales)
were $32.6 million, compared with $27.8 million in the fourth
quarter. First quarter operating segment income (before amortization
of intangibles) was $2.7 million, compared with $1.5 million in the fourth
quarter.
Balance
Sheet
Cash and
cash equivalents at the end of the first quarter totaled $32.6 million, compared
with $18.7 million at the end of the fourth quarter. This increase in cash is
primarily attributable to higher net income and strong collection of receivables
during the first quarter.
TTM’s
strong operating cash flow contributed to continued pay down of debt associated
with the PCG acquisition. During the quarter, the Company reduced
debt by $10 million, reducing the total debt balance to $75
million.
Second
Quarter Fiscal Year 2008 Forecast
For the
second quarter of 2008, TTM estimates revenues in a range of $170 million to
$177 million and earnings in a range of $0.20 to $0.25 per diluted
share.
TTM
Technologies, Inc. Reports First Quarter 2008 Financial Results…….Page 3
of
3
To Access the Live Web Cast/Conference Call
The
company will host a conference call to discuss the first quarter results and
second quarter outlook on April 30, 2008, at 4:30 p.m. Eastern Daylight Time
(1:30 p.m. Pacific Daylight Time).
To listen
to the live web cast, log on to the TTM Technologies website at http://www.ttmtech.com. To
access the live conference call, dial 303-262-2140 or
800-240-6709.
To
Access a Replay of the Web Cast
A digital
replay will be available on TTM Technologies' website at http://www.ttmtech.com
and will remain accessible for one week following the live event.
A
telephone replay also will be available beginning two hours after the conclusion
of the conference call until May 2, 2008. You may access the
telephone replay by dialing 303-590-3000 or 800-405-2236 and entering
confirmation code 11112623#.
Safe
Harbor Statement
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.
About
TTM
TTM
Technologies, Inc. is North America’s largest printed circuit board
manufacturer, focusing on quick-turn and technologically advanced PCBs and the
backplane and sub-system assembly business. 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. Additional information can be
found at www.ttmtech.com.
- Tables
Follow -
|
TTM
TECHNOLOGIES, INC.
|
||||||||||||
|
Selected
Unaudited Financial Information
|
||||||||||||
|
(In
thousands, except per share data)
|
||||||||||||
|
First
Quarter
|
Fourth
Quarter
|
|||||||||||
|
2008
|
2007
|
2007
|
||||||||||
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
||||||||||||
|
Net
sales
|
$ | 174,071 | $ | 176,897 | $ | 167,466 | ||||||
|
Cost
of goods sold
|
136,469 | 142,176 | 132,809 | |||||||||
|
Gross
profit
|
37,602 | 34,721 | 34,657 | |||||||||
|
Operating
expenses:
|
||||||||||||
|
Selling
and marketing
|
7,714 | 7,560 | 7,623 | |||||||||
|
General
and administrative
|
8,205 | 8,342 | 8,445 | |||||||||
|
Amortization
of definite-lived intangibles
|
947 | 1,025 | 1,036 | |||||||||
|
Metal
reclamation
|
(3,700 | ) | - | - | ||||||||
|
Total
operating expenses
|
13,166 | 16,927 | 17,104 | |||||||||
|
Operating
income
|
24,436 | 17,794 | 17,553 | |||||||||
|
Interest
expense
|
(1,835 | ) | (5,098 | ) | (2,734 | ) | ||||||
|
Interest
income and other, net
|
284 | 759 | 200 | |||||||||
|
Income
before income taxes
|
22,885 | 13,455 | 15,019 | |||||||||
|
Income
tax provision
|
(8,513 | ) | (4,990 | ) | (3,186 | ) | ||||||
|
Net
income
|
$ | 14,372 | $ | 8,465 | $ | 11,833 | ||||||
|
Earnings
per common share:
|
||||||||||||
|
Basic
|
$ | 0.34 | $ | 0.20 | $ | 0.28 | ||||||
|
Diluted
|
$ | 0.34 | $ | 0.20 | $ | 0.28 | ||||||
|
Weighted
average common shares:
|
||||||||||||
|
Basic
|
42,429 | 42,149 | 42,360 | |||||||||
|
Diluted
|
42,736 | 42,398 | 42,756 | |||||||||
|
SELECTED
BALANCE SHEET DATA
|
||||||||
|
March
31, 2008
|
December
31, 2007
|
|||||||
|
Cash
and cash equivalents
|
$ | 32,569 | $ | 18,681 | ||||
|
Accounts
receivable, net
|
118,240 | 118,581 | ||||||
|
Inventories
|
73,646 | 65,675 | ||||||
|
Total
current assets
|
239,590 | 219,936 | ||||||
|
Property,
plant and equipment, net
|
121,796 | 123,647 | ||||||
|
Other
non-current assets
|
156,013 | 155,215 | ||||||
|
Total
assets
|
517,399 | 498,798 | ||||||
|
Current
portion long-term debt
|
$ | 43,000 | $ | 40,000 | ||||
|
Accounts
payable
|
61,936 | 53,632 | ||||||
|
Total
current liabilities
|
134,270 | 121,097 | ||||||
|
Long-term
liabilities
|
38,444 | 49,107 | ||||||
|
Stockholders'
equity
|
344,685 | 328,594 | ||||||
|
Total
liabilities and stockholders' equity
|
517,399 | 498,798 | ||||||
|
SUPPLEMENTAL
DATA
|
||||||||||||
|
First
Quarter
|
Fourth
Quarter
|
|||||||||||
|
2008
|
2007
|
2007
|
||||||||||
|
EBITDA
|
$ | 30,976 | $ | 25,468 | $ | 24,355 | ||||||
|
EBITA
|
$ | 25,696 | $ | 19,608 | $ | 18,818 | ||||||
|
Gross
margin
|
21.6 | % | 19.6 | % | 20.7 | % | ||||||
|
EBITDA
margin
|
17.8 | 14.4 | 14.5 | |||||||||
|
Operating
margin
|
14.0 | 10.1 | 10.5 | |||||||||
|
End
Market Breakdown:
|
||||||||||||
|
First
Quarter
|
Fourth
Quarter
|
|||||||||||
|
2008
|
2007
|
2007
|
||||||||||
|
Networking/Communications
|
42 | % | 43 | % | 40 | % | ||||||
|
Aerospace/Defense
|
34 | 28 | 33 | |||||||||
|
Computing/Storage/Peripherals
|
12 | 13 | 13 | |||||||||
|
Medical/Industrial/Instrumentation/Other
|
12 | 16 | 14 | |||||||||
|
Stock-based
Compensation:
|
||||||||||||
|
First
Quarter
|
Fourth
Quarter
|
|||||||||||
|
2008
|
2007
|
2007
|
||||||||||
|
Amount
included in:
|
||||||||||||
|
Cost
of goods sold
|
$ | 233 | $ | 187 | $ | 250 | ||||||
|
Selling
and marketing
|
73 | 50 | 22 | |||||||||
|
General
and administrative
|
685 | 423 | 622 | |||||||||
|
Total
stock-based compensation expense
|
$ | 991 | $ | 660 | $ | 894 | ||||||
|
Operating
Segment Data:
|
||||||||||||
|
First
Quarter
|
Fourth
Quarter
|
|||||||||||
|
Net
sales:
|
2008
|
2007
|
2007
|
|||||||||
|
PCB
Manufacturing
|
$ | 148,705 | $ | 152,151 | $ | 147,524 | ||||||
|
Backplane
Assembly
|
32,570 | 33,657 | 27,837 | |||||||||
|
Total
Sales
|
181,275 | 185,808 | 175,361 | |||||||||
|
Inter-Company
Sales
|
(7,204 | ) | (8,911 | ) | (7,895 | ) | ||||||
|
Total
Net Sales
|
$ | 174,071 | $ | 176,897 | $ | 167,466 | ||||||
|
Operating
Segment Income:
|
||||||||||||
|
PCB
Manufacturing
|
$ | 22,679 | $ | 16,367 | $ | 17,055 | ||||||
|
Backplane
Assembly
|
2,704 | 2,452 | 1,534 | |||||||||
|
Total
Op Segment Income
|
25,383 | 18,819 | 18,589 | |||||||||
|
Amortization
of Intangibles
|
(947 | ) | (1,025 | ) | (1,036 | ) | ||||||
|
Total
Op Income
|
24,436 | 17,794 | 17,553 | |||||||||
|
Total
Other Income (Expense)
|
(1,551 | ) | (4,339 | ) | (2,534 | ) | ||||||
|
Income
Before Income Taxes
|
$ | 22,885 | $ | 13,455 | $ | 15,019 | ||||||
|
RECONCILIATIONS*
|
||||||||||||
|
First
Quarter
|
Fourth
Quarter
|
|||||||||||
|
2008
|
2007
|
2007
|
||||||||||
|
EBITA/EBITDA
reconciliation:
|
||||||||||||
|
Net
income
|
$ | 14,372 | $ | 8,465 | $ | 11,833 | ||||||
|
Add
back items:
|
||||||||||||
|
Income
taxes
|
8,513 | 4,990 | 3,186 | |||||||||
|
Interest
expense
|
1,835 | 5,098 | 2,734 | |||||||||
|
Amortization
of intangibles
|
976 | 1,055 | 1,065 | |||||||||
|
EBITA
|
25,696 | 19,608 | 18,818 | |||||||||
|
Depreciation
expense
|
5,280 | 5,860 | 5,537 | |||||||||
|
EBITDA
|
$ | 30,976 | $ | 25,468 | $ | 24,355 | ||||||
|
*
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 of
America.
|