EXHIBIT 99.1
Published on July 29, 2008
Exhibit 99.1
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Contacts:
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Corporation:
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Investors
and Media:
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TTM
Technologies, Inc.
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Guerrant
Associates
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Steve
Richards, Chief Financial Officer
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Laura
Guerrant
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(714)
241-0303
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(808)
882-1467
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investor@ttmtech.com
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lguerrant@guerrantir.com
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TTM
TECHNOLOGIES, INC. REPORTS SECOND QUARTER 2008 RESULTS
SANTA ANA,
CA –– July 29, 2008 –– TTM Technologies, Inc. (Nasdaq: TTMI), North America’s
largest printed circuit board (PCB) manufacturer, today reported results for the
second quarter of 2008, ended June 30, 2008.
Financial
& Operational Highlights
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§
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Second
quarter 2008 net sales of $173.0 million were in line with the Company’s
guidance, and gross margin of 21.1 percent exceeded the Company’s
guidance.
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§
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The
Company completed a successful convertible debt offering and used a
portion of the proceeds to retire the remaining balance of the term loan
debt associated with the Printed Circuit Group
acquisition.
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Second
Quarter 2008 Financial Results
Kent
Alder, President and CEO of TTM, noted, “Results for the second quarter
continued our long history of delivering solid financial performance. Our gross
margin and our diluted earnings per share, when adjusted for costs related to
repaying our debt, exceeded our expectations.” Alder continued, “The
Aerospace/Defense end market showed continued strength, and we again saw strong
demand for our high tech manufacturing services.”
Second
quarter net sales of $173.0 million decreased from first quarter 2008 net sales
of $174.1 million and were in line with the Company’s guidance.
Second
quarter 2008 gross margin of 21.1 percent declined slightly from first quarter
2008 gross margin of 21.6 percent but exceeded the high end of the guidance
range.
Selling
and marketing expense for the second quarter was $7.8 million, representing 4.5
percent of net sales. This is consistent with first quarter selling and
marketing expense of $7.7 million, representing 4.4 percent of net
sales.
Second
quarter general and administrative expense, including amortization of
intangibles, was $9.8 million, representing 5.7 percent of net sales.
This compares to general and administrative expense, including amortization of
intangibles, for the first quarter of $9.2 million, representing 5.3 percent of
sales. General and administrative expense increased in the second quarter due to
higher incentive compensation and stock-based compensation expense.
Operating
expenses totaled $17.5 million in the second quarter. During the first quarter
of 2008, TTM reduced operating expenses by $3.7 million due to a metal
reclamation recovery. Absent this reduction in expense, first quarter
operating expenses would have totaled $16.9 million.
TTM
Technologies, Inc. Reports Second Quarter 2008 Financial
Results…Page 2 of 3
TTM posted
second quarter operating income of $19.1 million, which compares to first
quarter operating income of $24.4 million, which included the aforementioned
$3.7 million metal reclamation recovery.
Other
expense in the second quarter was $4.1 million compared to $1.6 million in the
first quarter. This increase is largely attributable to the write-off
of the remaining financing costs and the unwinding of a hedge related to the
Company’s term loan, which was repaid in May with the proceeds from the
convertible debt offering. TTM recorded $1.9 million in expense to amortize the
remaining financing costs and $1.2 million to unwind the hedge.
Second
quarter net income of $9.4 million, or $0.22 per diluted share, was in line with
guidance and compares with first quarter net income of $14.4 million, or $0.34
per diluted share. Net income in the first quarter benefited by $3.7
million, or about $0.05 per diluted share, from the metal reclamation recovery.
Net income decreased in the second quarter by $3.1 million, or about $0.04 per
diluted share, due to the costs discussed above related to the term loan
repayment.
EBITDA
(earnings before interest, taxes, depreciation and amortization) for the second
quarter was $24.5 million, or 14.1 percent of sales, compared with first quarter
EBITDA of $31.0 million, or 17.8 percent of sales. (A reconciliation
of this non-GAAP measure is provided after the GAAP financial statements
accompanying this press release.)
Second
Quarter Segment Information – PCB Manufacturing and Backplane
Assembly
TTM
Technologies reports two operating segments: PCB Manufacturing and Backplane
Assembly.
For the
PCB Manufacturing segment, second quarter net sales (before inter-company sales)
were $149.6 million, compared with $148.7 million in the first
quarter. Second quarter operating segment income (before amortization
of intangibles) was $17.8 million, compared with $22.7 million in the first
quarter.
For the
Backplane Assembly segment, second quarter net sales (before inter-company
sales) were $31.2 million, compared with $32.6 million for the first quarter.
Second quarter operating segment income (before amortization of intangibles) was
$2.2 million, compared with $2.7 million in the first quarter.
Balance
Sheet
Cash and
cash equivalents at the end of the second quarter totaled $118.7 million,
compared with $32.6 million at the end of the first quarter. The
substantial increase in cash is primarily attributable to the successful
convertible debt offering the Company completed during the quarter.
Third
Quarter Fiscal Year 2008 Forecast
For the
third quarter of 2008, TTM estimates revenues in a range of $163 million to $171
million and earnings in a range of $0.19 to $0.25 per diluted
share.
To
Access the Live Web Cast/Conference Call
The
company will host a conference call to discuss the second quarter results and
third quarter outlook on July 29, 2008, at 4:30 p.m. Eastern Daylight Time (1:30
p.m. Pacific Daylight Time).
TTM Technologies, Inc.
Reports Second Quarter 2008 Financial Results…Page 3 of
3
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 303-262-2137 or
800-218-4007.
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 August 5, 2008. You may access the
telephone replay by dialing 303-590-3000 or 800-405-2236 and entering
confirmation code 11117066#.
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
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TTM
TECHNOLOGIES, INC.
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Selected
Unaudited Financial Information
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(In
thousands, except per share 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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2008
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2007
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2008
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2008
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2007
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CONSOLIDATED
STATEMENTS OF OPERATIONS
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Net
sales
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$ | 172,975 | $ | 162,016 | $ | 174,071 | $ | 347,046 | $ | 338,913 | ||||||||||
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Cost
of goods sold
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136,395 | 132,470 | 136,469 | 272,864 | 274,646 | |||||||||||||||
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Gross
profit
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36,580 | 29,546 | 37,602 | 74,182 | 64,267 | |||||||||||||||
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Operating
expenses:
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Selling
and marketing
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7,750 | 7,551 | 7,714 | 15,464 | 15,111 | |||||||||||||||
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General
and administrative
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8,825 | 7,890 | 8,205 | 17,030 | 16,232 | |||||||||||||||
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Amortization
of definite-lived intangibles
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950 | 1,046 | 947 | 1,897 | 2,071 | |||||||||||||||
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Metal
reclamation
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- | - | (3,700 | ) | (3,700 | ) | - | |||||||||||||
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Total
operating expenses
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17,525 | 16,487 | 13,166 | 30,691 | 33,414 | |||||||||||||||
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Operating
income
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19,055 | 13,059 | 24,436 | 43,491 | 30,853 | |||||||||||||||
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Interest
expense
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(3,288 | ) | (3,368 | ) | (1,835 | ) | (5,123 | ) | (8,466 | ) | ||||||||||
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Interest
income and other, net
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(843 | ) | 236 | 284 | (559 | ) | 995 | |||||||||||||
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Income
before income taxes
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14,924 | 9,927 | 22,885 | 37,809 | 23,382 | |||||||||||||||
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Income
tax provision
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(5,480 | ) | (3,743 | ) | (8,513 | ) | (13,993 | ) | (8,733 | ) | ||||||||||
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Net
income
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$ | 9,444 | $ | 6,184 | $ | 14,372 | $ | 23,816 | $ | 14,649 | ||||||||||
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Earnings
per common share:
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Basic
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$ | 0.22 | $ | 0.15 | $ | 0.34 | $ | 0.56 | $ | 0.35 | ||||||||||
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Diluted
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$ | 0.22 | $ | 0.15 | $ | 0.34 | $ | 0.56 | $ | 0.35 | ||||||||||
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Weighted
average common shares:
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Basic
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42,676 | 42,199 | 42,429 | 42,553 | 42,174 | |||||||||||||||
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Diluted
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43,080 | 42,496 | 42,736 | 42,908 | 42,447 | |||||||||||||||
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SELECTED
BALANCE SHEET DATA
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June
30, 2008
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December
31, 2007
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Cash
and cash equivalents
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$ | 118,687 | $ | 18,681 | ||||||||||||||||
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Accounts
receivable, net
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118,197 | 118,581 | ||||||||||||||||||
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Inventories
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78,348 | 65,675 | ||||||||||||||||||
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Total
current assets
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331,263 | 219,936 | ||||||||||||||||||
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Property,
plant and equipment, net
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122,874 | 123,647 | ||||||||||||||||||
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Other
non-current assets
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166,977 | 155,215 | ||||||||||||||||||
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Total
assets
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621,114 | 498,798 | ||||||||||||||||||
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Current
portion long-term debt
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$ | - | $ | 40,000 | ||||||||||||||||
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Accounts
payable
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51,515 | 53,632 | ||||||||||||||||||
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Total
current liabilities
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81,350 | 121,097 | ||||||||||||||||||
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Long-term
liabilities
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177,453 | 49,107 | ||||||||||||||||||
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Stockholders'
equity
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362,311 | 328,594 | ||||||||||||||||||
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Total
liabilities and stockholders' equity
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621,114 | 498,798 | ||||||||||||||||||
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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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2008
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2007
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2008
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2008
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2007
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EBITDA
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$ | 24,460 | $ | 20,113 | $ | 30,976 | $ | 55,436 | $ | 45,581 | ||||||||||
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EBITA
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$ | 19,191 | $ | 14,369 | $ | 25,696 | $ | 44,887 | $ | 33,977 | ||||||||||
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Gross
margin
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21.1 | % | 18.2 | % | 21.6 | % | 21.4 | % | 19.0 | |||||||||||
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EBITDA
margin
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14.1 | 12.4 | 17.8 | 16.0 | 13.4 | |||||||||||||||
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Operating
margin
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11.0 | 8.1 | 14.0 | 12.5 | 9.1 | |||||||||||||||
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End
Market Breakdown:
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Second
Quarter
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First
Quarter
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2008
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2007
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2008
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Networking/Communications
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40 | % | 42 | % | 42 | % | ||||||||||||||
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Aerospace/Defense
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36 | 30 | 34 | |||||||||||||||||
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Computing/Storage/Peripherals
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11 | 15 | 12 | |||||||||||||||||
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Medical/Industrial/Instrumentation/Other
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13 | 13 | 12 | |||||||||||||||||
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Stock-based
Compensation:
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Second
Quarter
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First
Quarter
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2008
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2007
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2008
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Amount
included in:
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Cost
of goods sold
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$ | 390 | $ | 255 | $ | 233 | ||||||||||||||
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Selling
and marketing
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118 | 48 | 73 | |||||||||||||||||
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General
and administrative
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970 | 581 | 685 | |||||||||||||||||
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Total
stock-based compensation expense
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$ | 1,478 | $ | 884 | $ | 991 | ||||||||||||||
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Operating
Segment Data:
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Second
Quarter
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First
Quarter
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Net
sales:
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2008
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2007
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2008
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PCB
Manufacturing
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$ | 149,596 | $ | 138,651 | $ | 148,705 | ||||||||||||||
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Backplane
Assembly
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31,160 | 32,164 | 32,570 | |||||||||||||||||
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Total
Sales
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180,756 | 170,815 | 181,275 | |||||||||||||||||
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Inter-Company
Sales
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(7,781 | ) | (8,799 | ) | (7,204 | ) | ||||||||||||||
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Total
Net Sales
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$ | 172,975 | $ | 162,016 | $ | 174,071 | ||||||||||||||
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Operating
Segment Income:
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PCB
Manufacturing
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$ | 17,780 | $ | 12,019 | $ | 22,679 | ||||||||||||||
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Backplane
Assembly
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2,225 | 2,086 | 2,704 | |||||||||||||||||
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Total
Op Segment Income
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20,005 | 14,105 | 25,383 | |||||||||||||||||
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Amortization
of Intangibles
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(950 | ) | (1,046 | ) | (947 | ) | ||||||||||||||
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Total
Op Income
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19,055 | 13,059 | 24,436 | |||||||||||||||||
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Total
Other Income (Expense)
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(4,131 | ) | (3,132 | ) | (1,551 | ) | ||||||||||||||
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Income
Before Income Taxes
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$ | 14,924 | $ | 9,927 | $ | 22,885 | ||||||||||||||
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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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2008
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2007
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2008
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2008
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2007
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EBITA/EBITDA
reconciliation:
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Net
income
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$ | 9,444 | $ | 6,184 | $ | 14,372 | $ | 23,816 | $ | 14,649 | ||||||||||
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Add
back items:
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Income
taxes
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5,480 | 3,743 | 8,513 | 13,993 | 8,733 | |||||||||||||||
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Interest
expense
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3,288 | 3,368 | 1,835 | 5,123 | 8,466 | |||||||||||||||
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Amortization
of intangibles
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979 | 1,074 | 976 | 1,955 | 2,129 | |||||||||||||||
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EBITA
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19,191 | 14,369 | 25,696 | 44,887 | 33,977 | |||||||||||||||
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Depreciation
expense
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5,269 | 5,744 | 5,280 | 10,549 | 11,604 | |||||||||||||||
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EBITDA
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$ | 24,460 | $ | 20,113 | $ | 30,976 | $ | 55,436 | $ | 45,581 | ||||||||||
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*
This information provides a reconciliation of EBITA/EBITDA to the
financial information in our consolidated statements of
operations.
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"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.
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