Form: 8-K

Current report filing

July 31, 2012

Documents

EXHIBIT 99.1

TTM Technologies, Inc. Reports Second Quarter 2012 Results

SANTA ANA, Calif., July 31, 2012 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (Nasdaq:TTMI), a major global printed circuit board (PCB) manufacturer, today reported results for the second quarter 2012, which ended June 25, 2012.

Second Quarter 2012 Highlights

  • Net sales were $327.4 million
  • GAAP net income attributable to stockholders was $7.4 million, or $0.09 per diluted share
  • Non-GAAP net income attributable to stockholders was $13.6 million, or $0.17 per diluted share
  • Gross margin was 16.7 percent

Financial Results

Net sales for the second quarter increased to $327.4 million from $300.5 million in the first quarter.

Operating income for the second quarter decreased to $18.1 million compared to operating income of $21.8 million in the first quarter.

GAAP net income attributable to stockholders for the second quarter was $7.4 million, or $0.09 per diluted share, compared to net income attributable to stockholders of $12.6 million, or $0.15 per diluted share, for the first quarter.

On a non-GAAP basis, net income attributable to stockholders for the second quarter was $13.6 million, or $0.17 per diluted share. This compares to non-GAAP net income attributable to stockholders of $18.8 million, or $0.23 per diluted share, in the first quarter.

Adjusted EBITDA, which adds back asset impairments, for the second quarter was $42.3 million, or 12.9 percent of net sales, compared to adjusted EBITDA of $46.4 million, or 15.4 percent of net sales, for the first quarter. 

"Second quarter revenue was within our expected range as sales increased following the normal seasonality we experienced in the first quarter. However, weaker than expected demand for advanced technology PCBs as well as higher labor costs in Asia impacted margins and earnings during the quarter," said Kent Alder, President and CEO of TTM.

"As we enter the second half of the year, we are beginning to receive orders in our Asia Pacific segment for new handheld products. This improving advanced HDI demand in the second half of 2012 is beginning to materialize as anticipated and should improve our results," concluded Alder. 

Business Outlook

For the third quarter, TTM estimates revenue will be in the range of $340 million to $360 million, GAAP earnings attributable to stockholders in a range from $0.08 to $0.16 per diluted share and non-GAAP earnings attributable to stockholders in a range from $0.16 to $0.24 per diluted share. 

To Access the Live Webcast/Conference Call

The company will host a conference call and webcast to discuss the second quarter 2012 results and the third quarter outlook on Tuesday, July 31, 2012, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time).

Telephone access is available by dialing domestic 1-877-941-0843 or international 1-480-629-9770. 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 August 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

           
TTM TECHNOLOGIES, INC.
Selected Unaudited Financial Information
(In thousands, except per share data)
           
           
  Second Quarter First Quarter First Two Fiscal Quarters
  2012 2011 2012 2012 2011
           
CONSOLIDATED STATEMENTS OF OPERATIONS          
           
Net sales  $ 327,423  $ 366,117  $ 300,499  $ 627,922  $708,918
Cost of goods sold  272,732  288,782  244,021  516,753  549,657
           
Gross profit  54,691  77,335  56,478  111,169  159,261
           
Operating expenses:          
Selling and marketing  9,008  9,323  8,622  17,630  18,356
General and administrative  23,453  24,111  22,135  45,588  47,162
Amortization of definite-lived intangibles  4,102  4,321  3,916  8,018  8,479
Impairment of long-lived assets  --   48,125  --   --   48,125
Total operating expenses  36,563  85,880  34,673  71,236  122,122
           
Operating income (loss)  18,128  (8,545)  21,805  39,933  37,139
           
Interest expense  (6,380)  (6,684)  (6,417)  (12,797)  (12,975)
Interest income  131  166  132  263  363
Other, net  (319)  3,269  1,455  1,136  4,049
           
Income (loss) before income taxes  11,560  (11,794)  16,975  28,535  28,576
Income tax provision  (4,009)  (8,474)  (4,643)  (8,652)  (19,756)
           
Net income (loss)  7,551  (20,268)  12,332  19,883  8,820
           
Net loss (income) attributable to noncontrolling interest  (141)  (635)  263  122  (2,600)
Net income (loss) attributable to stockholders  $ 7,410  $ (20,903)  $ 12,595  $ 20,005  $ 6,220
           
Earnings (loss) per share attributable to stockholders:          
Basic  $ 0.09  $ (0.26)  $ 0.15  $ 0.24  $ 0.08
Diluted  $ 0.09  $ (0.26)  $ 0.15  $ 0.24  $ 0.08
           
Weighted average common shares:          
Basic  81,895  81,309  81,413  81,661  81,009
Diluted  82,267  81,309  82,228  82,248  82,395
           
           
           
SELECTED BALANCE SHEET DATA           
  June 25, 2012 December 31, 2011      
Cash and cash equivalents  $ 248,486  $ 196,052      
Accounts and notes receivable, net  309,982  316,568      
Inventories  131,889  129,430      
Total current assets  723,975  671,534      
Property, plant and equipment, net  809,499  766,800      
Other non-current assets  287,816  310,735      
Total assets  $ 1,821,290  $ 1,749,069      
           
Short-term debt, including current portion long-term debt  $ 111,760  $ 120,882      
Accounts payable  189,011  185,906      
Total current liabilities  441,585  437,140      
Debt, net of discount  415,877  368,518      
Total long-term liabilities  445,452  389,259      
Noncontrolling interest  103,523  113,753      
Total stockholders' equity  934,253  922,670      
Total liabilities and stockholders' equity  $ 1,821,290  $ 1,749,069      
           
SUPPLEMENTAL DATA          
  Second Quarter First Quarter First Two Fiscal Quarters
  2012 2011 2012 2012 2011
Gross margin 16.7% 21.1% 18.8% 17.7% 22.5%
Adjusted EBITDA margin  12.9  17.5  15.4  14.1  18.4
Operating margin  5.5  (2.3)  7.3  6.4  5.2
           
End Market Breakdown:          
  Second Quarter First Quarter    
  2012 2011 2012    
           
Aerospace/Defense 16% 17% 17%    
Cellular Phone  12  9  10    
Computing/Storage/Peripherals  21  23  24    
Medical/Industrial/Instrumentation  9  7  10    
Networking/Communications  32  38  32    
Other  10  6  7    
           
Stock-based Compensation:          
  Second Quarter First Quarter    
  2012 2011 2012    
Amount included in:          
Cost of goods sold  $ 265  $ 254  $ 311    
Selling and marketing  118  100  114    
General and administrative  2,400  1,770  1,780    
Total stock-based compensation expense  $ 2,783  $ 2,124  $ 2,205    
           
           
Operating Segment Data:          
  Second Quarter First Quarter    
 Net sales:  2012 2011 2012    
 Asia Pacific   $ 195,561  $ 226,203  $ 171,758    
 North America   132,309  142,245  130,024    
 Total sales   327,870  368,448  301,782    
 Inter-segment sales   (447)  (2,331)  (1,283)    
 Total net sales   $ 327,423  $ 366,117  $ 300,499    
           
 Operating segment income (loss):           
 Asia Pacific   $ 11,154  $ (18,016)  $ 12,825    
 North America   11,076  13,792  12,896    
 Total operating segment income (loss)   22,230  (4,224)  25,721    
 Amortization of definite-lived intangibles   (4,102)  (4,321)  (3,916)    
 Total operating income (loss)   18,128  (8,545)  21,805    
 Total other expense   (6,568)  (3,249)  (4,830)    
 Income (loss) before income taxes   $ 11,560  $ (11,794)  $ 16,975    
           
RECONCILIATIONS1          
  Second Quarter First Quarter First Two Fiscal Quarters
  2012 2011 2012 2012 2011
Adjusted EBITDA reconciliation2:          
Net income (loss)  $ 7,551  $ (20,268)  $ 12,332  $ 19,883  $ 8,820
Add back items:          
Income tax provision  4,009  8,474  4,643  8,652  19,756
Interest expense  6,380  6,684  6,417  12,797  12,975
Amortization of definite-lived intangibles  4,120  4,350  3,945  8,065  8,538
Depreciation expense  20,214  16,826  19,064  39,278  32,521
EBITDA  $ 42,274  $ 16,066  $ 46,401  $ 88,675  $ 82,610
           
Add back: Asset impairments  --   48,125  --   --   48,125
Adjusted EBITDA  $ 42,274  $ 64,191  $ 46,401  $ 88,675  $130,735
           
GAAP EPS excluding impairments reconciliation3:          
GAAP net income (loss) attributable to stockholders  $ 7,410  $ (20,903)  $ 12,595  $ 20,005  $ 6,220
Add back items:          
Asset impairments  --   48,125  --   --   48,125
Income tax effects  --   (706)  --   --   (706)
GAAP net income, excluding impairments, attributable to stockholders  $ 7,410  $ 26,516  $ 12,595  $ 20,005  $ 53,639
           
GAAP earnings per diluted share, excluding impairments, attributable to stockholders  $ 0.09  $ 0.32  $ 0.15  $ 0.24  $ 0.65
           
Non-GAAP EPS reconciliation4:          
GAAP net income (loss) attributable to stockholders  $ 7,410  $ (20,903)  $ 12,595  $ 20,005  $ 6,220
Add back items:          
Amortization of definite-lived intangibles  4,120  4,350  3,945  8,065  8,538
Stock-based compensation  2,783  2,124  2,205  4,988  3,879
Non-cash interest expense  1,945  2,116  1,955  3,900  4,307
Impairments, restructuring and other charges  --   48,125  --   --   48,125
Income tax effects  (2,632)  (2,894)  (1,945)  (4,577)  (4,887)
Non-GAAP net income attributable to stockholders  $ 13,626  $ 32,918  $ 18,755  $ 32,381  $ 66,182
           
Non-GAAP earnings per diluted share attributable to stockholders  $ 0.17  $ 0.40  $ 0.23  $ 0.39  $ 0.80
           
           
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 attributable 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