EXHIBIT 99.1
Published on October 29, 2008
Exhibit
99.1
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FOR IMMEDIATE
RELEASE
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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-Oiye
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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 THIRD QUARTER 2008 RESULTS
SANTA ANA,
CA –– October 29, 2008 –– TTM Technologies, Inc. (Nasdaq: TTMI), North America’s
largest printed circuit board (PCB) manufacturer, today reported results for the
third quarter of 2008, ended September 29, 2008.
Third
Quarter 2008 Financial & Operational Highlights
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§
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TTM
demonstrated strong free cash flow, increasing cash and cash
equivalents and short-term investments by $16.3 million in the third
quarter for a quarter ending balance of $135.0
million.
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§
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Strength
at a number of Aerospace/Defense customers raised this end market to 39
percent of net sales from 36 percent of net sales in the second
quarter.
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Third
Quarter 2008 Financial Results
Kent
Alder, President and CEO of TTM, noted, “We are pleased with our results for the
third quarter. Despite challenging global macroeconomic conditions, we continued
our trend of delivering solid financial performance. During the
quarter, we continued to generate significant cash. The Aerospace/Defense end
market was a significant part of our success and is showing continued
strength.”
Third
quarter net sales of $169.0 million decreased $4.0 million, or 2.3 percent, from
second quarter net sales of $173.0 million.
Third
quarter gross margin of 19.0 percent declined from second quarter gross margin
of 21.1 percent.
TTM posted
third quarter operating income of $15.5 million, which compares to second
quarter operating income of $19.1 million.
Third
quarter net income of $9.5 million, or $0.22 per diluted share, was in line with
guidance and compares with second quarter net income of $9.4 million, or $0.22
per diluted share. In the third quarter, TTM recorded a $579,000
unrealized loss on its $20.1 million holdings in the Reserve Primary Fund, a
money market fund that is currently liquidating its assets. The Company
classified the amount in this money market fund as short-term investments. This
unrealized loss, net of tax, reduced third quarter earnings per diluted share by
$0.01.
EBITDA
(earnings before interest, taxes, depreciation and amortization) for the third
quarter was $22.2 million, or 13.1 percent of net sales, compared with second
quarter EBITDA of $24.5 million, or 14.1 percent of net
sales. (A reconciliation of this non-GAAP measure is provided after
the GAAP financial statements accompanying this press release.)
TTM
Technologies, Inc. Reports Third Quarter 2008 Financial Results…Page 2 of
3
Third
Quarter Segment Information – PCB Manufacturing and Backplane
Assembly
TTM
Technologies reports two operating segments: PCB Manufacturing and Backplane
Assembly.
For the
PCB Manufacturing segment, third quarter net sales (before inter-company sales)
were $148.0 million, compared with $149.6 million in the second
quarter. Third quarter operating segment income (before amortization
of intangibles) was $14.3 million, compared with $17.8 million in the second
quarter.
For the
Backplane Assembly segment, third quarter net sales (before inter-company sales)
were $29.3 million, compared with $31.2 million in the second
quarter. Third quarter operating segment income (before amortization
of intangibles) was $2.1 million, compared with $2.2 million in the second
quarter.
Balance
Sheet
Cash and
cash equivalents and short-term investments at the end of the third quarter
totaled $135.0 million, compared with $118.7 million at the end of the second
quarter, an increase of $16.3 million.
Fourth
Quarter Fiscal Year 2008 Forecast
For the
fourth quarter of 2008, TTM estimates revenues in a range of $156 million to
$164 million and earnings in a range of $0.14 to $0.19 per diluted
share.
To
Access the Live Webcast/Conference Call
The
company will host a conference call to discuss the third quarter results and
fourth quarter outlook on October 29, 2008, at 4:30 p.m. Eastern Daylight Time
(1:30 p.m. Pacific Daylight Time).
To listen
to the live webcast, log on to the TTM Technologies website at http://www.ttmtech.com. To
access the live conference call, dial 303-262-2142 or
800-257-6566.
To
Access a Replay of the Webcast
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 October 31, 2008. You may access the
telephone replay by dialing 303-590-3000 or 800-405-2236 and entering
confirmation code 11121228#.
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 impact of the current economic crisis, the company's dependence
upon a small number of customers, 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.
TTM
Technologies, Inc. Reports Third Quarter 2008 Financial Results…Page 3 of
3
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 -
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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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Third
Quarter
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Second
Quarter
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First
Three 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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$ | 169,019 | $ | 163,079 | $ | 172,975 | $ | 516,065 | $ | 501,992 | ||||||||||
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Cost
of goods sold
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136,873 | 131,834 | 136,395 | 409,737 | 406,480 | |||||||||||||||
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Gross
profit
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32,146 | 31,245 | 36,580 | 106,328 | 95,512 | |||||||||||||||
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Operating
expenses:
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Selling
and marketing
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7,552 | 7,101 | 7,750 | 23,016 | 22,212 | |||||||||||||||
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General
and administrative
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8,138 | 7,951 | 8,825 | 25,168 | 24,183 | |||||||||||||||
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Amortization
of definite-lived intangibles
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951 | 1,019 | 950 | 2,848 | 3,090 | |||||||||||||||
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Metal
reclamation
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- | - | - | (3,700 | ) | - | ||||||||||||||
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Total
operating expenses
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16,641 | 16,071 | 17,525 | 47,332 | 49,485 | |||||||||||||||
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Operating
income
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15,505 | 15,174 | 19,055 | 58,996 | 46,027 | |||||||||||||||
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Interest
expense
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(1,556 | ) | (2,628 | ) | (3,288 | ) | (6,679 | ) | (11,094 | ) | ||||||||||
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Interest
income
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702 | 194 | 302 | 1,147 | 1,227 | |||||||||||||||
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Other,
net
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(384 | ) | 127 | (1,145 | ) | (1,388 | ) | 89 | ||||||||||||
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Income
before income taxes
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14,267 | 12,867 | 14,924 | 52,076 | 36,249 | |||||||||||||||
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Income
tax provision
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(4,809 | ) | (4,666 | ) | (5,480 | ) | (18,802 | ) | (13,399 | ) | ||||||||||
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Net
income
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$ | 9,458 | $ | 8,201 | $ | 9,444 | $ | 33,274 | $ | 22,850 | ||||||||||
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Earnings
per common share:
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Basic
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$ | 0.22 | $ | 0.19 | $ | 0.22 | $ | 0.78 | $ | 0.54 | ||||||||||
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Diluted
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$ | 0.22 | $ | 0.19 | $ | 0.22 | $ | 0.77 | $ | 0.54 | ||||||||||
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Weighted
average common shares:
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Basic
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42,805 | 42,260 | 42,676 | 42,637 | 42,203 | |||||||||||||||
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Diluted
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43,182 | 42,625 | 43,080 | 43,000 | 42,506 | |||||||||||||||
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SELECTED
BALANCE SHEET DATA
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September
29, 2008
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December
31, 2007
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Cash
and cash equivalents
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$ | 115,470 | $ | 18,681 | ||||||
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Short-term
investments
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19,522 | - | ||||||||
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Accounts
receivable, net
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115,265 | 118,581 | ||||||||
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Inventories
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76,964 | 65,675 | ||||||||
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Total
current assets
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342,439 | 219,936 | ||||||||
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Property,
plant and equipment, net
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121,260 | 123,647 | ||||||||
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Other
non-current assets
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163,381 | 155,215 | ||||||||
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Total
assets
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627,080 | 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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48,055 | 53,632 | ||||||||
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Total
current liabilities
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76,490 | 121,097 | ||||||||
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Long-term
liabilities
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177,176 | 49,107 | ||||||||
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Stockholders'
equity
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373,414 | 328,594 | ||||||||
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Total
liabilities and stockholders' equity
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627,080 | 498,798 | ||||||||
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SUPPLEMENTAL
DATA
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Third
Quarter
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Second
Quarter
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First
Three 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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$ | 22,151 | $ | 22,174 | $ | 24,460 | $ | 77,587 | $ | 67,755 | ||||||||||
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EBITA
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$ | 16,803 | $ | 16,543 | $ | 19,191 | $ | 61,690 | $ | 50,520 | ||||||||||
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Gross
margin
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19.0 | % | 19.2 | % | 21.1 | % | 20.6 | % | 19.0 | % | ||||||||||
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EBITDA
margin
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13.1 | 13.6 | 14.1 | 15.0 | 13.5 | |||||||||||||||
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Operating
margin
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9.2 | 9.3 | 11.0 | 11.4 | 9.2 | |||||||||||||||
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End
Market Breakdown:
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Third
Quarter
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Second
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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39 | % | 40 | % | 40 |
%
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Aerospace/Defense
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39 | 32 | 36 | |||||||||||||||||
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Computing/Storage/Peripherals
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11 | 13 | 11 | |||||||||||||||||
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Medical/Industrial/Instrumentation/Other
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11 | 15 | 13 | |||||||||||||||||
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Stock-based
Compensation:
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Third
Quarter
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Second
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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$ | 388 | $ | 258 | $ | 390 | ||||||||||||||
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Selling
and marketing
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116 | 55 | 118 | |||||||||||||||||
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General
and administrative
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888 | 609 | 970 | |||||||||||||||||
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Total
stock-based compensation expense
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$ | 1,392 | $ | 922 | $ | 1,478 | ||||||||||||||
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Operating
Segment Data:
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Third
Quarter
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Second
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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$ | 148,003 | $ | 140,514 | $ | 149,596 | ||||||||||||||
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Backplane
Assembly
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29,254 | 30,679 | 31,160 | |||||||||||||||||
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Total
Sales
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177,257 | 171,193 | 180,756 | |||||||||||||||||
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Inter-Company
Sales
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(8,238 | ) | (8,114 | ) | (7,781 | ) | ||||||||||||||
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Total
Net Sales
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$ | 169,019 | $ | 163,079 | $ | 172,975 | ||||||||||||||
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Operating
Segment Income:
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PCB
Manufacturing
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$ | 14,312 | $ | 13,899 | $ | 17,780 | ||||||||||||||
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Backplane
Assembly
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2,144 | 2,294 | 2,225 | |||||||||||||||||
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Total
Op Segment Income
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16,456 | 16,193 | 20,005 | |||||||||||||||||
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Amortization
of Intangibles
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(951 | ) | (1,019 | ) | (950 | ) | ||||||||||||||
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Total
Op Income
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15,505 | 15,174 | 19,055 | |||||||||||||||||
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Total
Other Expense
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(1,238 | ) | (2,307 | ) | (4,131 | ) | ||||||||||||||
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Income
Before Income Taxes
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$ | 14,267 | $ | 12,867 | $ | 14,924 | ||||||||||||||
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RECONCILIATIONS*
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Third
Quarter
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Second
Quarter
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First
Three 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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$ | 9,458 | $ | 8,201 | $ | 9,444 | $ | 33,274 | $ | 22,850 | ||||||||||
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Add
back items:
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Income
taxes
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4,809 | 4,666 | 5,480 | 18,802 | 13,399 | |||||||||||||||
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Interest
expense
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1,556 | 2,628 | 3,288 | 6,679 | 11,094 | |||||||||||||||
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Amortization
of intangibles
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980 | 1,048 | 979 | 2,935 | 3,177 | |||||||||||||||
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EBITA
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16,803 | 16,543 | 19,191 | 61,690 | 50,520 | |||||||||||||||
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Depreciation
expense
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5,348 | 5,631 | 5,269 | 15,897 | 17,235 | |||||||||||||||
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EBITDA
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$ | 22,151 | $ | 22,174 | $ | 24,460 | $ | 77,587 | $ | 67,755 | ||||||||||
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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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