Form: 8-K

Current report filing

May 1, 2012

Documents

EXHIBIT 99.1

TTM Technologies, Inc. Reports First Quarter 2012 Results

SANTA ANA, Calif., May 1, 2012 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (Nasdaq:TTMI), a major global printed circuit board (PCB) manufacturer, today reported results for the first quarter 2012, which ended March 26, 2012.

First Quarter 2012 Highlights

  • Net sales were $300.5 million
  • GAAP net income attributable to stockholders was $12.6 million, or $0.15 per diluted share
  • Non-GAAP net income attributable to stockholders was $18.8 million, or $0.23 per diluted share
  • Gross margin was 18.8 percent

Financial Results

Net sales for the first quarter decreased to $300.5 million from $361.5 million in the fourth quarter.

Operating income for the first quarter increased to $21.8 million compared to operating income of $17.6 million in the fourth quarter. Included in operating results for the fourth quarter of 2011 was a non-cash goodwill impairment charge of $15.2 million at the company's backplane assembly plant in Shanghai, China.

GAAP net income attributable to stockholders for the first quarter was $12.6 million, or $0.15 per diluted share, compared to net income attributable to stockholders of $11.2 million, or $0.14 per diluted share, for the fourth quarter. 

On a non-GAAP basis, net income attributable to stockholders for the first quarter was $18.8 million, or $0.23 per diluted share. This compares to non-GAAP net income attributable to stockholders of $31.2 million, or $0.38 per diluted share, in the fourth quarter.

Adjusted EBITDA, which adds back asset impairments, for the first quarter was $46.4 million, or 15.4 percent of net sales, compared to adjusted EBITDA of $60.2 million, or 16.6 percent of net sales, for the fourth quarter. 

"We achieved first quarter gross margin and net income in line with our guidance, despite lower than expected revenue. A more favorable product mix combined with consistent execution helped overcome the negative leverage that comes with decreased revenue and contributed to the solid gross margin performance," said Kent Alder, President and CEO of TTM. "In addition to normal seasonality, our top line was impacted by weaker demand in the telecom infrastructure and cellular phone markets."

"Our ability to produce the most complex PCBs continues to differentiate TTM from our competitors. Advanced HDI PCBs, which are used in high-growth products such as touchpad tablets and smartphones, continued to represent a growing portion of our product mix."

"Based on our qualification work with customers, we remain optimistic about the second half of the year," concluded Alder. 

Business Outlook

For the second quarter, TTM estimates revenue will be in the range of $320 million to $340 million, GAAP earnings attributable to stockholders in a range from $0.10 to $0.19 per diluted share and non-GAAP earnings attributable to stockholders in a range from $0.18 to $0.27 per diluted share. 

To Access the Live Webcast/Conference Call

The company will host a conference call and webcast to discuss the first quarter 2012 results and the second quarter outlook on Tuesday, May 1, 2012, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time).

Telephone access is available by dialing domestic 1-877-941-8631 or international 1-480-629-9643. The conference 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 May 7, 2012, 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 impairments, 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 to 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 First Quarter 2012 Results

TTM TECHNOLOGIES, INC.
       
Selected Unaudited Financial Information
       
(In thousands, except per share data)
       
       
  First Quarter Fourth Quarter
  2012 2011 2011
       
CONSOLIDATED STATEMENTS OF OPERATIONS    
       
Net sales  $ 300,499  $ 342,801  $ 361,460
Cost of goods sold  244,021  260,875  290,082
       
Gross profit  56,478  81,926  71,378
       
Operating expenses:      
Selling and marketing  8,622  9,033  9,867
General and administrative  22,135  23,051  24,178
Amortization of definite-lived intangibles  3,916  4,158  4,517
Impairment of goodwill  --   --   15,184
Total operating expenses  34,673  36,242  53,746
       
Operating income  21,805  45,684  17,632
       
Interest expense  (6,417)  (6,291)  (6,795)
Interest income  132  197  159
Other, net  1,455  780  2,692
       
Income before income taxes  16,975  40,370  13,688
Income tax provision  (4,643)  (11,282)  (1,328)
       
Net income  12,332  29,088  12,360
       
Net loss (income) attributable to noncontrolling interest  263  (1,965)  (1,190)
Net income attributable to stockholders  $ 12,595  $ 27,123  $ 11,170
       
Earnings per share attributable to stockholders:      
Basic  $ 0.15  $ 0.34  $ 0.14
Diluted  $ 0.15  $ 0.33  $ 0.14
       
Weighted average common shares:      
Basic  81,413  80,696  81,336
Diluted  82,228  82,304  81,988
       
       
       
SELECTED BALANCE SHEET DATA       
  March 26, 2012 December 31, 2011  
Cash and cash equivalents  $ 223,764  $ 196,052  
Accounts and notes receivable, net  293,739  316,568  
Inventories  133,320  129,430  
Total current assets  681,300  671,534  
Property, plant and equipment, net  789,985  766,800  
Other non-current assets  300,115  310,735  
Total assets  $ 1,771,400  $ 1,749,069  
       
Short-term debt, including current portion long-term debt  $ 120,952  $ 120,882  
Accounts payable  171,153  185,906  
Total current liabilities  417,237  437,140  
Debt, net of discount  387,449  368,518  
Total long-term liabilities  415,011  389,259  
Noncontrolling interest  113,711  113,753  
Total stockholders' equity  939,152  922,670  
Total liabilities and stockholders' equity  $ 1,771,400  $ 1,749,069  
       
SUPPLEMENTAL DATA      
  First Quarter Fourth Quarter
  2012 2011 2011
Gross margin  18.8%   23.9%   19.7% 
Adjusted EBITDA margin  15.4  19.4  16.6
Operating margin  7.3  13.3  4.9
       
End Market Breakdown:      
  First Quarter Fourth Quarter
  2012 2011 2011
       
Aerospace/Defense  17%   16%   15% 
Cellular Phone  10  9  14
Computing/Storage/Peripherals  24  27  20
Medical/Industrial/Instrumentation  10  8  8
Networking/Communications  32  34  33
Other  7  6  10
       
Stock-based Compensation:      
  First Quarter Fourth Quarter
  2012 2011 2011
Amount included in:      
Cost of goods sold  $ 311  $ 216  $ 251
Selling and marketing  114  111  106
General and administrative  1,780  1,427  1,786
Total stock-based compensation expense  $ 2,205  $ 1,754  $ 2,143
       
       
Operating Segment Data:      
  First Quarter Fourth Quarter
 Net sales:  2012 2011 2011
 Asia Pacific   $ 171,758  $ 202,465  $ 218,448
 North America   130,024  142,250  144,079
 Total sales   301,782  344,715 362,527
 Inter-segment sales   (1,283)  (1,914)  (1,067)
 Total net sales   $ 300,499 $ 342,801  $ 361,460 
       
 Operating segment income:       
 Asia Pacific   $ 12,825  $ 33,077  $ 20,094
 North America   12,896  16,765  2,055
 Total operating segment income   25,721  49,842 22,149 
 Amortization of definite-lived intangibles   (3,916)  (4,158)  (4,517)
 Total operating income  21,805  45,684  17,632 
 Total other expense   (4,830)  (5,314)  (3,944)
 Income before income taxes   $ 16,975  $ 40,370  $ 13,688
       
RECONCILIATIONS1      
  First Quarter Fourth Quarter
  2012 2011 2011
Adjusted EBITDA reconciliation2:      
Net income  $ 12,332  $ 29,088  $ 12,360
Add back items:      
Income tax provision  4,643  11,282  1,328
Interest expense  6,417  6,291  6,795
Amortization of definite-lived intangibles  3,945  4,188  4,546
Depreciation expense  19,064  15,695  19,946
EBITDA  $ 46,401  $ 66,544  $ 44,975
       
Add back: Asset impairments  --   --   15,184
Adjusted EBITDA  $ 46,401  $ 66,544  $ 60,159
       
GAAP EPS excluding impairments reconciliation3:      
GAAP net income attributable to stockholders  $ 12,595  $ 27,123  $ 11,170
Add back items:      
Asset impairments  --   --   15,184
Income tax effects  --   --   (2,592)
GAAP net income, excluding impairments, attributable to stockholders  $ 12,595  $ 27,123  $ 23,762
       
GAAP earnings per diluted share, excluding impairments, attributable to stockholders  $ 0.15  $ 0.33  $ 0.29
       
Non-GAAP EPS reconciliation4:      
GAAP net income attributable to stockholders  $ 12,595  $ 27,123  $ 11,170
Add back items:      
Amortization of definite-lived intangibles  3,945  4,188  4,546
Stock-based compensation  2,205  1,754  2,143
Non-cash interest expense  1,955  2,191  1,947
Impairments, restructuring and other charges  --   --   15,184
Income tax effects  (1,945)  (1,993)  (3,826)
Non-GAAP net income attributable to stockholders  $ 18,755  $ 33,263  $ 31,164
       
Non-GAAP earnings per diluted share attributable to stockholders  $ 0.23  $ 0.40  $ 0.38
       
       
1 This information provides a reconciliation of EBITDA, adjusted EBITDA, GAAP net income (excluding impairments) attributable to stockholders, GAAP EPS (excluding impairments) attributable to stockholders, 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 impairments. 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 GAAP net income attribututable to stockholders and GAAP EPS attributable to stockholders excluding asset impairments and related income tax effects.
       
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 impairments, 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