Form: 8-K

Current report filing

November 2, 2011

EXHIBIT 99.1

TTM Technologies, Inc. Reports Third Quarter 2011 Results

SANTA ANA, Calif., Nov. 2, 2011 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (Nasdaq:TTMI), a major global printed circuit board (PCB) manufacturer, today reported results for the third quarter 2011, ended September 26, 2011.

Third Quarter 2011 Highlights

  • Net sales were $358.3 million
  • GAAP net income attributable to stockholders was $24.5 million, or $0.30 per diluted share
  • Non-GAAP net income attributable to stockholders was $31.0 million, or $0.38 per diluted share
  • Gross margin was 19.7 percent

"Our third quarter financial results were impacted by the challenging macroeconomic environment," said Kent Alder, President and CEO of TTM. "Softer demand for printed circuit boards due to weaker economic conditions – combined with several push outs of orders at the end of the quarter – led to lower than expected revenue for the quarter."

"We remain confident that the underlying long-term drivers for advanced PCBs, such as the proliferation of converged mobile devices and the surge in networking applications, remain unchanged," Alder said.  "We believe we have invested wisely in our capacity expansion, which has been focused on advanced PCB technology, enabling TTM to be well positioned for the next stage of growth when the demand environment improves." 

Financial Results

Net sales for the third quarter decreased to $358.3 million from $366.1 million in the second quarter. 

Operating income for the third quarter increased to $36.3 million compared to an operating loss of $8.5 million in the second quarter due to a non-cash asset impairment charge of $48.1 million. Excluding the asset impairment charge, operating income for the second quarter was $39.6 million.

GAAP net income attributable to stockholders for the third quarter was $24.5 million, or $0.30 per diluted share, compared to net loss of $20.9 million, or $0.26 per basic share, for the second quarter. Included in the second quarter net loss attributable to stockholders was the after-tax asset impairment charge of $46.6 million, or $0.57 per basic share.

On a non-GAAP basis, net income attributable to stockholders for the third quarter was $31.0 million, or $0.38 per diluted share. This compares to non-GAAP net income attributable to stockholders of $32.9 million, or $0.40 per diluted share, in the second quarter.

EBITDA for the third quarter was $59.3 million, or 16.5 percent of net sales, compared to adjusted EBITDA of $64.2 million, or 17.5 percent of net sales, for the second quarter. 

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

Business Outlook

For the fourth quarter, TTM estimates revenue will be in the range of $345 million to $365 million, GAAP earnings attributable to stockholders in a range from $0.19 to $0.28 per diluted share and non-GAAP earnings attributable to stockholders in a range from $0.27 to $0.36 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 outlook on Wednesday, November 2, 2011, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time).

Telephone access is available by dialing domestic 1-877-941-6009 or international 1-480-629-9645. The conference call also will be webcast on TTM Technologies' website at www.ttmtech.com.

To Access a Replay of the Webcast

The webcast will be available for replay until November 9, 2011, on TTM Technologies' website at www.ttmtech.com.

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, restructuring and other charges 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, contemplated significant capital expenditures and related financing requirements, the Company's ability to integrate and manage its Asia Pacific operations, the company's dependence upon a small number of customers, the unpredictability of and potential fluctuation in future revenues and operating results 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 Third Quarter 2011 Results

TTM TECHNOLOGIES, INC.
Selected Unaudited Financial Information
(In thousands, except per share data)
           
  Third Quarter Second Quarter First Three Fiscal Quarters
  2011 2010 2011 2011 2010
           
CONSOLIDATED STATEMENTS OF OPERATIONS          
           
Net sales  $ 358,261  $ 357,813  $ 366,117  $ 1,067,179  $ 806,280
Cost of goods sold  287,587  277,478  288,782  837,244  641,878
           
Gross profit  70,674  80,335  77,335  229,935  164,402
           
Operating expenses:          
Selling and marketing  8,668  9,055  9,323  27,024  24,885
General and administrative  21,342  21,922  24,111  68,504  56,308
Amortization of definite-lived intangibles  4,315  3,653  4,321  12,794  9,065
Restructuring charges  --   --   --   --   449
Impairment of long-lived assets  --   --   48,125  48,125  766
Total operating expenses  34,325  34,630  85,880  156,447  91,473
           
Operating income (loss)  36,349  45,705  (8,545)  73,488  72,929
           
Interest expense  (6,734)  (6,690)  (6,684)  (19,709)  (15,882)
Interest income  139  164  166  502  360
Other, net  1,214  2,405  3,269  5,263  2,382
           
Income (loss) before income taxes  30,968  41,584  (11,794)  59,544  59,789
Income tax provision  (4,921)  (9,439)  (8,474)  (24,677)  (16,419)
           
Net income (loss)  26,047  32,145  (20,268)  34,867  43,370
           
Net income attributable to noncontrolling interest  (1,569)  (3,054)  (635)  (4,169)  (4,865)
Net income (loss) attributable to stockholders  $ 24,478  $ 29,091  $ (20,903)  $ 30,698  $ 38,505
           
Earnings (loss) per share attributable to stockholders:          
Basic  $ 0.30  $ 0.36  $ (0.26)  $ 0.38  $ 0.58
Diluted  $ 0.30  $ 0.36  $ (0.26)  $ 0.37  $ 0.57
           
Weighted average common shares:          
Basic  81,332  80,059  81,309  81,119  66,730
Diluted  81,934  80,521  81,309  81,929  67,251
           
           
           
SELECTED BALANCE SHEET DATA           
  September 26, 2011 December 31, 2010      
Cash and cash equivalents  $ 207,666  $ 216,078      
Accounts and notes receivable, net  301,194  287,703      
Inventories  147,637  135,385      
Total current assets  696,681  676,499      
Property, plant and equipment, net  755,258  740,630      
Other non-current assets  326,314  344,823      
Total assets  $ 1,778,253  $ 1,761,952      
           
Short-term debt, including current portion long-term debt  $ 120,777  $ 67,123      
Accounts payable  216,041  204,974      
Total current liabilities  486,020  418,200      
Debt, net of discount  366,722  458,278      
Total long-term liabilities  390,813  510,894      
Noncontrolling interest  111,416  104,603      
Total stockholders' equity  901,420  832,858      
Total liabilities and stockholders' equity  $ 1,778,253  $ 1,761,952      
SUPPLEMENTAL DATA          
  Third Quarter Second Quarter First Three Fiscal Quarters
  2011 2010 2011 2011 2010
Gross margin  19.7%  22.5%  21.1%  21.5%  20.4%
Adjusted EBITDA margin  16.5  18.7  17.5  17.8  14.6
Operating margin  10.1  12.8  (2.3)  6.9  9.0
           
End Market Breakdown:          
  Third Quarter Second Quarter    
  2011 2010 2011    
           
Aerospace/Defense  16%  17%  17%    
Cellular Phone  10  11  9    
Computing/Storage/Peripherals  21  21  23    
Medical/Industrial/Instrumentation  7  9  7    
Networking/Communications  38  36  38    
Other  8  6  6    
           
Stock-based Compensation:          
  Third Quarter Second Quarter    
  2011 2010 2011    
Amount included in:          
Cost of goods sold  $ 218  $ 309  $ 255    
Selling and marketing  101  104  100    
General and administrative  1,735  1,241  1,770    
Total stock-based compensation expense  $ 2,054  $ 1,654  $ 2,125    
           
           
Operating Segment Data:          
  Third Quarter Second Quarter    
 Net sales:  2011 2010 2011    
 Asia Pacific   $ 222,284  $ 211,463  $ 226,203    
 North America   137,355  148,263  142,245    
 Total sales   359,639  359,726  368,448    
 Inter-segment sales   (1,378)  (1,913)  (2,331)    
 Total net sales   $ 358,261  $ 357,813  $ 366,117    
           
 Operating segment income (loss):           
 Asia Pacific   $ 27,855  $ 32,211  $ (18,016)    
 North America   12,809  17,147  13,792    
 Total operating segment income (loss)   40,664  49,358  (4,224)    
 Amortization of definite-lived intangibles   (4,315)  (3,653)  (4,321)    
 Total operating income (loss)   36,349  45,705  (8,545)    
 Total other expense   (5,381)  (4,121)  (3,249)    
 Income (loss) before income taxes   $ 30,968  $ 41,584  $ (11,794)    
           
RECONCILIATIONS1          
  Third Quarter Second Quarter First Three Fiscal Quarters
  2011 2010 2011 2011 2010
Adjusted EBITDA reconciliation2:          
Net income (loss)  $ 26,047  $ 32,145  $ (20,268)  $ 34,867  $ 43,370
Add back items:          
Income tax provision  4,921  9,439  8,474  24,677  16,419
Interest expense  6,734  6,690  6,684  19,709  15,882
Amortization of definite-lived intangibles  4,343  3,682  4,350  12,881  9,152
Depreciation expense  17,231  14,931  16,826  49,752  32,113
EBITDA  $ 59,276  $ 66,887  $ 16,066  $ 141,886  $ 116,936
           
Add back: Impairment of long-lived assets  --   --   48,125  48,125  766
Adjusted EBITDA  $ 59,276  $ 66,887  $ 64,191  $ 190,011  $ 117,702
           
Non-GAAP EPS reconciliation3:          
GAAP net income (loss) attributable to stockholders  $ 24,478  $ 29,091  $ (20,903)  $ 30,698  $ 38,505
Add back items:          
Amortization of definite-lived intangibles  4,343  3,682  4,350  12,881  9,152
Stock-based compensation  2,054  1,654  2,125  5,933  4,660
Non-cash interest expense  1,909  2,187  2,116  6,216  5,555
Impairment, restructuring and other charges  --   467  48,125  48,125  17,803
Income tax effects  (1,826)  (2,113)  (2,894)  (6,713)  (9,831)
Non-GAAP net income attributable to stockholders  $ 30,958  $ 34,968  $ 32,919  $ 97,140  $ 65,844
           
Non-GAAP earnings per diluted share attributable to stockholders  $ 0.38  $ 0.43  $ 0.40  $ 1.19  $ 0.98
           
           
1 This information provides a reconciliation of EBITDA, 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 earnings before 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 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.
           
3 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, restructuring and other charges 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: Steve Richards, CFO
         714-327-3000