Form: 8-K

Current report filing

November 4, 2010

Documents

EXHIBIT 99.1

TTM Technologies, Inc. Reports Record Third Quarter Results

SANTA ANA, Calif., Nov. 4, 2010 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (Nasdaq:TTMI), a major global printed circuit board (PCB) manufacturer, today reported results for the third quarter of 2010, ended September 27, 2010.

Third Quarter 2010 Highlights

  • Net sales increased 15 percent sequentially to a record $357.8 million.
  • GAAP net income attributable to stockholders grew sequentially to $29.1 million, or $0.36 per diluted share
  • Non-GAAP net income attributable to stockholders increased sequentially 75 percent to $35.0 million, or $0.43 per diluted share.
  • Gross margins increased to 22.5 percent.
  • The combination with Meadville Holdings Ltd. was highly accretive to GAAP earnings, adding $0.15 per diluted share this quarter.
  • The integration of the two companies is progressing well.

Financial Results

Net sales for the third quarter of 2010 increased to $357.8 million from $310.2 million in the second quarter of 2010.

Operating income for the third quarter 2010 increased 163 percent to $45.7 million from $17.4 million in the second quarter. The second quarter results included charges of $14.6 million related to plant closures, impairment of long-lived assets, transaction costs, and inventory fair value adjustments.

GAAP net income attributable to stockholders for the third quarter of 2010 was $29.1 million, or $0.36 per diluted share, compared to $4.9 million, or $0.06 per diluted share for the second quarter of 2010. The results for the third quarter of 2010 included a $1.8 million foreign exchange gain and a decrease in the estimated annual effective tax rate that combined contributed $0.04 per diluted share.

On a non-GAAP basis, net income attributable to stockholders for the third quarter of 2010 was $35.0 million, or $0.43 per diluted share. This compares to second quarter of 2010 non-GAAP net income attributable to stockholders of $19.9 million, or $0.26 per diluted share.

Adjusted EBITDA for the third quarter of 2010 was $62.1 million, or 17.4 percent of net sales, compared to $32.6 million, or 10.5 percent of net sales for the second quarter of 2010.

Please refer to the tables below for a reconciliation between GAAP and non-GAAP net income attributable to stockholders and adjusted EBITDA.

"By all measures our third quarter business performance was outstanding," said Kent Alder, President and CEO of TTM. "We achieved record revenue and profitability, exceeding the guidance we provided for the quarter. The recently completed combination with Meadville has clearly been a transformative event for TTM. Integration is progressing well as evidenced by the strength of our results for the third quarter."

"Both our North American and Asian facilities continue to experience solid backlogs and high levels of capacity utilization. Our scale, diversified customer base and end markets, as well as the strategic initiatives we have taken to date to enhance operating efficiencies, have combined to drive better results. All of these factors increase our confidence in our position for long-term growth," concluded Alder.

Business Outlook

For the fourth quarter of 2010, TTM estimates revenue will be in the range of $351 million to $367 million, GAAP earnings attributable to stockholders in a range from $0.28 to $0.35 per diluted share and non-GAAP earnings attributable to stockholders in a range from $0.35 to $0.42 per diluted share. 

To Access the Live Webcast/Conference Call

The company will host a conference call and webcast to discuss the third quarter results and the fourth quarter 2010 outlook on November 4, 2010, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time).

To listen to the live webcast, log on to the TTM Technologies website at www.ttmtech.com. To access the live conference call, dial 1-800-762-8795 or 1-480-248-5081.

To Access a Replay of the Webcast

The call will be available for replay until November 11, 2010, on TTM Technologies' website at www.ttmtech.com.

A telephone replay also will be available beginning two hours after the conclusion of the conference call.  You may access the telephone replay by dialing 1-303-590-3030 or 1-800-406-7325 and entering confirmation code 4377086.

About Our Non-GAAP Financial Measures

This release includes information about the Company's non-GAAP net income attributable to stockholders and non-GAAP earnings per share attributable to stockholders, which are non-GAAP financial measures. Management believes that both measures -- which add back amortization of intangibles, stock-based compensation expense, non-cash interest expense on debt, asset impairment and restructuring charges, inventory adjustments, costs related to the Meadville Holdings transaction and miscellaneous closing costs as well as the associated tax impact of these charges -- provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations.

A material limitation associated with the use of the above non-GAAP financial measures is that they have no standardized measurement prescribed by GAAP and may not be comparable with similar non-GAAP financial measures used by other companies. The Company compensates for these limitations by providing full disclosure of each non-GAAP financial measure and reconciliation to the most directly comparable GAAP financial measure. However, the non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

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.

About TTM

TTM Technologies, Inc. is a major global 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.

The TTM Technologies logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5691

- Tables Follow -

TTM Technologies, Inc. Reports 2010 Third Quarter Results

TTM TECHNOLOGIES, INC.
Selected Unaudited Financial Information
(In thousands, except per share data)
           
           
  Third Quarter Second Quarter First Three Fiscal Quarters
  2010 2009 2010 2010 2009
           
CONSOLIDATED STATEMENTS OF OPERATIONS        
           
Net sales  $ 357,813  $ 139,075  $ 310,248  $ 806,280  $ 432,552
Cost of goods sold  277,478  114,868  253,154  641,878  357,017
           
Gross profit  80,335  24,207  57,094  164,402  75,535
           
Operating expenses:          
Selling and marketing  9,055  6,546  9,103  24,885  20,037
General and administrative  21,922  9,403  25,349  56,308  25,460
Amortization of definite-lived intangibles  3,653  860  4,621  9,065  2,580
Restructuring charges  --   2,501  399  449  5,009
Impairment of long-lived assets  --   10,293  266  766  10,636
Total operating expenses 34,630  29,603  39,738  91,473  63,722 
           
Operating income (loss)  45,705  (5,396)  17,356  72,929  11,813
           
Interest expense  (6,690)  (2,919)  (6,411)  (15,882)  (8,396)
Interest income  164  196  135  360  356
Other, net  2,405  57  46  2,382  96
           
Income (loss) before income taxes  41,584  (8,062)  11,126  59,789  3,869
Income tax (provision) benefit  (9,439)  3,177  (4,386)  (16,419)  (1,379)
           
Net income (loss)  32,145  (4,885)  6,740  43,370  2,490
           
Net income attributable to noncontrolling interest  (3,054)  --   (1,811)  (4,865)  -- 
Net income (loss) attributable to stockholders  $ 29,091  $ (4,885)  $ 4,929  $ 38,505  $ 2,490
           
Earnings (loss) per share attributable to stockholders:        
Basic  $ 0.36  $ (0.11)  $ 0.06  $ 0.58  $ 0.06
Diluted  $ 0.36  $ (0.11)  $ 0.06  $ 0.57  $ 0.06
           
Weighted average common shares:          
Basic  80,059  43,142  76,050  66,730  43,048
Diluted  80,521  43,142  76,485  67,251  43,458
           
           
           
SELECTED BALANCE SHEET DATA           
  September 27, 2010 December 31, 2009      
Cash and cash equivalents  $ 164,230  $ 94,347      
Restricted cash  --   120,000      
Short-term investments  --   1,351      
Accounts and notes receivable, net  299,786  89,519      
Inventories  133,399  60,153      
Total current assets  633,540  382,559      
Property, plant and equipment, net  701,549  88,577      
Other non-current assets  360,864  71,922      
Total assets  1,695,953  543,058      
           
Current portion long-term debt  66,944  --       
Accounts payable  243,318  37,867      
Total current liabilities  405,394  59,447      
Debt, net of discount  456,749  139,882      
Total long-term liabilities  505,149  142,694      
Noncontrolling interest  101,194  --       
Total stockholders' equity  785,410  340,917      
Total liabilities and stockholders' equity  1,695,953  543,058      
           
SUPPLEMENTAL DATA          
  Third Quarter Second Quarter First Three Fiscal Quarters
  2010 2009 2010 2010 2009
Gross margin  22.5%  17.4%  18.4%  20.4%  17.5%
Adjusted EBITDA margin  17.4  7.7  10.5  13.6  9.3
Operating margin  12.8  (3.9)  5.6  9.0  2.7
           
End Market Breakdown:          
  Third Quarter Second Quarter    
  2010 2009 2010    
           
Aerospace/Defense  17%  44%  19%    
Cellular Phones  11  --   10    
Computing/Storage/Peripherals  21  12  25    
Medical/Industrial/Instrumentation  9  8  9    
Networking/Communications  36  35  32    
Other  6  1  5    
           
Stock-based Compensation:          
  Third Quarter Second Quarter    
  2010 2009 2010    
Amount included in:          
Cost of goods sold  $ 309  $ 413  $ 327    
Selling and marketing  104  133  109    
General and administrative  1,241  980  1,158    
Total stock-based compensation expense  $ 1,654  $ 1,526  $ 1,594    
           
           
Operating Segment Data:          
  Third Quarter Second Quarter    
 Net sales:  2010 2009 2010    
 North America   $ 148,263  $ 139,075  $ 138,925    
 Asia Pacific   211,463  --   173,073    
 Total sales   359,726  139,075  311,998    
 Inter-segment sales   (1,913)  --   (1,750)    
 Total net sales   $ 357,813  $ 139,075  $ 310,248    
           
 Operating segment income (loss):           
 North America   $ 17,147  $ (4,536)  $ 6,206    
 Asia Pacific   32,211  --   15,771    
 Total operating segment income (loss)   49,358  (4,536)  21,977    
 Amortization of definite-lived intangibles   (3,653)  (860)  (4,621)    
 Total operating income (loss)   45,705  (5,396)  17,356    
 Total other expense   (4,121)  (2,666)  (6,230)    
 Income (loss) before income taxes   $ 41,584  $ (8,062)  $ 11,126    
           
RECONCILIATIONS1          
  Third Quarter Second Quarter First Three Fiscal Quarters
  2010 2009 2010 2010 2009
Adjusted EBITDA reconciliation2:          
Net income (loss) attributable to stockholders  $ 29,091  $ (4,885)  $ 4,929  $ 38,505  $ 2,490
Add back items:          
Income tax provision (benefit), net3  8,869  (3,177)  4,019  15,482  1,379
Interest expense3  6,466  2,919  6,229  15,477  8,396
Amortization of definite-lived intangibles  3,682  890  4,650  9,152  2,678
Depreciation expense, net3  14,022  4,652  12,501  30,406  14,491
Impairment of long-lived assets  --   10,293  266  766  10,636
Adjusted EBITDA  $ 62,130  $ 10,692  $ 32,594  $ 109,788  $ 40,070
           
Non-GAAP EPS reconciliation4:          
GAAP net income (loss) attributable to stockholders  $ 29,091  $ (4,885)  $ 4,929  $ 38,505  $ 2,490
Add back items:          
Amortization of definite-lived intangibles  3,682  890  4,650  9,152  2,678
Stock-based compensation  1,654  1,526  1,594  4,660  4,698
Non-cash interest expense  2,187  1,381  1,928  5,555  4,059
Impairment of long-lived assets  --   10,293  266  766  10,636
Restructuring charges  --   2,501  399  449  5,009
Inventory write-down related to facility closures  --   2,637  --   284  3,350
Inventory fair value adjustment  --   --   6,651  6,651  -- 
Transaction costs  428  1,378  6,986  9,212  1,379
Miscellaneous closing costs  39  292  265  441  724
Income tax effects  (2,117)  (8,235)  (7,731)  (12,208)  (11,596)
Non-GAAP net income attributable to stockholders  $ 34,964  $ 7,778  $ 19,937  $ 63,467  $ 23,427
           
Non-GAAP earnings per diluted share attributable
 to stockholders  		 $ 0.43    $  0.18  $      0.26     $     0.94  $     0.54
           
1 This information provides a reconciliation of adjusted EBITDA, non-GAAP net income attributable to stockholders and non-GAAP EPS attributable to stockholders to the financial information in our consolidated statements of operations.
           
2 Adjusted EBITDA is defined as net income attributable to stockholders adjusted for controlling portion of interest expense, income taxes, depreciation, amortization and asset impairment. We present adjusted EBITDA to enhance the understanding of our operating results, and it is a key measure we use to evaluate our operations. In addition, we provide our adjusted EBITDA because we believe that investors and securities analysts will find adjusted EBITDA 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, adjusted EBITDA is not defined under generally accepted accounting principles ("GAAP") in the United States of America, and it may not be comparable to similarly titled measures by other companies. Adjusted EBITDA 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.
           
3 Excludes noncontrolling interest portion.
           
4 This information provides non-GAAP net income attributable to stockholders and non-GAAP EPS attributable to stockholders, which are non-GAAP financial measures. Management believes that both measures --- which add back amortization of intangibles, stock-based compensation expense, non-cash interest expense on debt (before consideration of capitalized interest), asset impairment and restructuring charges, inventory write-down related to facility closures, inventory fair value adjustment, costs related to the Meadville Holdings transaction and miscellaneous closing costs as well as the associated tax impact of these charges --- provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations. 
CONTACT:  TTM Technologies, Inc.
          Steve Richards, CFO
          714-327-3000