February 4, 2016 - PRESS RELEASE - 8-K: Current report filing

EXHIBIT 99.1

TTM Technologies, Inc. Reports Fourth Quarter and Fiscal Year 2015 Results

COSTA MESA, Calif., Feb. 04, 2016 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (Nasdaq:TTMI), a leading global printed circuit board (“PCB”) manufacturer, today reported results for the fourth quarter and fiscal year 2015, which ended December 28, 2015. Our results include the contribution from the Viasystems Group, Inc. ("Viasystems") acquisition, which was completed on May 31, 2015.

Fourth Quarter 2015 Highlights

Net sales were $668.9 million
GAAP net income attributable to stockholders was $9.5 million, or $0.09 per diluted share
Non-GAAP net income attributable to stockholders was $31.5 million, or $0.31 per diluted share
Adjusted EBITDA was $95.8 million
Free cash flow was $118.4 million

Fiscal Year 2015 Highlights

Net sales were $2.1 billion
GAAP net loss attributable to stockholders was $25.9 million, or $0.28 per share
Non-GAAP net income attributable to stockholders was $81.1 million, or $0.87 per diluted share
Adjusted EBITDA was $285.7 million
Free cash flow was $182.7 million

Fourth Quarter 2015 Financial Results

Net sales for the fourth quarter of 2015 were $668.9 million compared to $652.0 million in the third quarter of 2015 and $390.9 million in the fourth quarter of 2014.

GAAP operating income for the fourth quarter of 2015 was $36.5 million compared to operating income of $23.6 million in the third quarter of 2015 and operating income of $26.6 million in the fourth quarter of 2014.

GAAP net income attributable to stockholders for the fourth quarter of 2015 was $9.5 million, or $0.09 per diluted share. This compares to GAAP net loss attributable to stockholders of $2.2 million, or $0.02 per share, in the third quarter of 2015 and GAAP net income of $13.9 million, or $0.17 per diluted share, in the fourth quarter of 2014.

On a non-GAAP basis, net income attributable to stockholders for the fourth quarter of 2015 was $31.5 million, or $0.31 per diluted share. This compares to non-GAAP net income of $23.8 million, or $0.24 per diluted share, for the third quarter of 2015 and $23.2 million, or $0.28 per diluted share, for the fourth quarter of 2014.

Adjusted EBITDA for the fourth quarter of 2015 was $95.8 million, or 14.3 percent of net sales, compared to adjusted EBITDA of $87.6 million, or 13.4 percent of net sales, for the third quarter of 2015 and $60.5 million, or 15.5 percent of net sales, for the fourth quarter of 2014.

“Our solid fourth quarter execution combined with seasonal growth in the cellular phone end market and robust demand in the automotive and aerospace and defense end markets drove our sequential increases in gross margin, operating profit and strong free cash flow generation,” said Tom Edman, CEO of TTM. “We are pleased to report non-GAAP earnings above the high end of our guidance range and revenue in line with expectations. In addition, we generated $118 million in free cash flow during the quarter which we will use to repay $70-80 million of principal on our term loan late in the first quarter.”

Full Year 2015 Financial Results

Net sales for fiscal year 2015 increased to $2.1 billion from $1.3 billion in fiscal year 2014.

GAAP operating income for fiscal year 2015 was $61.3 million, an increase from GAAP operating income of $46.5 million in fiscal year 2014.

GAAP net loss attributable to stockholders for fiscal year 2015 was $25.9 million, or $0.28 per share, compared to GAAP net income of $14.7 million, or $0.18 per diluted share, for fiscal year 2014. The GAAP results were negatively impacted by approximately $59.4 million of expenses related to the acquisition and integration of Viasystems.

On a non-GAAP basis, net income attributable to stockholders for fiscal year 2015 was $81.1 million, or $0.87 per diluted share. This compares to fiscal year 2014 non-GAAP net income of $39.3 million, or $0.47 per diluted share.

Adjusted EBITDA for fiscal year 2015 was $285.7 million, or 13.6 percent of net sales, compared to $166.0 million, or 12.5 percent of net sales, for fiscal year 2014.

“2015 was a transformational year for our company that culminated in the creation of one of today’s leading global PCB manufacturers with increased customer and end market diversity. We delivered on our integration initiatives and exited the year having achieved 80% of our $55 million annualized synergy target,” continued Edman.

“We expect our leadership in a diverse set of end markets to pay-off in the first quarter of 2016 as anticipated strength in automotive and aerospace and defense markets will help to mitigate a seasonal downturn in the cellular phone market. We will continue to build on these strengths as we leverage TTM’s advanced technology position into the automotive market in particular.”

Business Outlook

For the first quarter of 2016, TTM estimates that revenue will be in the range of $570 million to $610 million, and non-GAAP net income will be in the range of $0.05 to $0.11 per diluted share.

To Access the Live Webcast/Conference Call

TTM will host a conference call and webcast to discuss fourth quarter and fiscal year 2015 results and first quarter 2016 outlook on Thursday, February 4, 2016, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call may include forward-looking statements.

Telephone access is available by dialing domestic 888-438-5535 or international 719-457-2648 (ID 4399593). The conference call also will be webcast on TTM’s website at www.ttm.com.

To Access a Replay of the Webcast

The replay of the webcast will remain accessible for one week following the live event on TTM’s website at www.ttm.com.

About TTM

TTM Technologies, Inc. is a leading global printed circuit board manufacturer, focusing on quick-turn and technologically advanced PCBs, backplane assemblies and electro-mechanical solutions. TTM stands for time-to-market, representing how TTM'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.ttm.com.

Forward-Looking Statements

This release contains forward-looking statements that relate to future events or performance. TTM cautions you that such statements are simply predictions and actual events or results may differ materially. These statements reflect TTM's current expectations, and TTM 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 TTM statements will not be realized. Further, these statements involve risks and uncertainties, many of which are beyond TTM'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 successful integration of Viasystems, including, the planned plant combinations and closure, general market and economic conditions, including interest rates, currency exchange rates and consumer spending, demand for TTM's products, market pressures on prices of TTM's products, warranty claims, changes in product mix, contemplated significant capital expenditures and related financing requirements, TTM's dependence upon a small number of customers and other factors set forth in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's public reports filed with the SEC.

About Our Non-GAAP Financial Measures

This release includes information about TTM’s adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share, all of which are non-GAAP financial measures. TTM presents non-GAAP financial information to enable investors to see TTM through the eyes of management and to provide better insight into TTM’s ongoing financial performance.

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. TTM 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.


TTM TECHNOLOGIES, INC.
Selected Unaudited Financial Information
(In thousands, except per share data)


				Fourth Quarter						Third Quarter			Full Year
					2015			2014			2015			2015			2014

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

	Net sales			$	668,874		$	390,912		$	652,005		$	2,095,488		$	1,325,717
	Cost of goods sold				560,604			322,437			562,887			1,785,351			1,131,028

	Gross profit				108,270			68,475			89,118			310,137			194,689

	Operating expenses:
		Selling and marketing			17,963			9,926			17,642			57,361			36,919
		General and administrative			41,654			30,046			39,456			167,109			100,944
		Amortization of definite-lived intangibles			6,683			1,935			6,421			18,888			8,387
		Restructuring charges			5,429			(7	)		2,003			7,941			55
		Impairment of long-lived assets			-			-			-			-			1,845
		Gain on sale of asset			-			-			-			(2,504	)		-
			Total operating expenses		71,729			41,900			65,522			248,795			148,150

	Operating income (loss)				36,541			26,575			23,596			61,342			46,539

	Interest expense				(20,208	)		(5,691	)		(21,002	)		(59,753	)		(23,830	)
	Loss on extinguishment of debt				-			-			-			(802	)		(506	)
	Other, net				3,925			1,620			3,998			8,189			88

	Income (loss) before income taxes				20,258			22,504			6,592			8,976			22,291
	Income tax (provision) benefit				(10,601	)		(8,566	)		(8,730	)		(34,594	)		(7,598	)

	Net income (loss)			$	9,657		$	13,938		$	(2,138	)	$	(25,618	)	$	14,693

	Net income attributable to noncontrolling interest				(136	)		-			(99	)		(264	)		-
	Net income (loss) attributable to stockholders			$	9,521		$	13,938		$	(2,237	)	$	(25,882	)	$	14,693

	Earnings (loss) per share attributable to stockholders:
		Basic		$	0.10		$	0.17		$	(0.02	)	$	(0.28	)	$	0.18
		Diluted		$	0.09		$	0.17		$	(0.02	)	$	(0.28	)	$	0.18

	Weighted-average shares used in computing per share amounts:
		Basic			99,134			83,345			99,128			92,675			83,238
		Diluted			126,329			84,205			99,128			92,675			83,941


	Reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share for the quarter ended Q4 2015

	Net income attributable to stockholders			$	9,521
		Add back items: interest expense, net of tax			2,009
	Adjusted net income attributable to stockholders			$	11,530
	Weighted-average shares outstanding				99,134
	Dilutive effect of convertible debt				25,940
	Dilutive effect of performance-based stock units, restricted stock units and stock options				1,255
	Diluted shares				126,329
	Earnings per share attributable to stockholders:
		Basic		$	0.10
		Diluted		$	0.09


SELECTED BALANCE SHEET DATA
				December 28, 2015			December 29, 2014
	Cash and cash equivalents, including restricted cash			$	262,630		$	279,042
	Accounts and notes receivable, net				454,001			307,933
	Inventories				268,923			145,187
	Total current assets				1,022,520			798,123
	Property, plant and equipment, net				1,103,067			754,718
	Other non-current assets				545,717			48,448
	Total assets				2,671,304			1,601,289

	Short-term debt, including current portion of long-term debt			$	157,375		$	128,045
	Accounts payable				347,916			217,326
	Total current liabilities				744,994			496,012
	Debt, net of discount				1,044,582			374,642
	Total long-term liabilities				1,099,641			389,813
	Total equity				826,669			715,464
	Total liabilities and equity				2,671,304			1,601,289

SUPPLEMENTAL DATA
				Fourth Quarter						Third Quarter			Full Year
					2015			2014			2015			2015			2014
	Gross margin				16.2	%		17.5	%		13.7	%		14.8	%		14.7	%
	Operating margin				5.5	%		6.8	%		3.6	%		2.9	%		3.5	%

	End Market Breakdown:
				Fourth Quarter						Third Quarter
					2015			2014			2015

		Aerospace/Defense			13	%		14	%		14	%
		Automotive			18	%		3	%		17	%
		Cellular Phone			18	%		35	%		16	%
		Computing/Storage/Peripherals			12	%		10	%		12	%
		Medical/Industrial/Instrumentation			13	%		8	%		14	%
		Networking/Communications			23	%		27	%		25	%
		Other			3	%		3	%		2	%

	Stock-based Compensation:
				Fourth Quarter						Third Quarter
					2015			2014			2015
		Amount included in:
			Cost of goods sold	$	327		$	197		$	322
			Selling and marketing		301			263			294
			General and administrative		2,007			1,287			2,056
			Total stock-based compensation expense	$	2,635		$	1,747		$	2,672


	Operating Segment Data:
				Fourth Quarter						Third Quarter
		Net sales:			2015			2014			2015
		PCB		$	611,045		$	372,465		$	604,771
		E-M Solutions			61,021			19,073			49,658
		Corporate			-			-			-
			Total sales		672,066			391,538			654,429
		Inter-segment sales			(3,192	)		(626	)		(2,424	)
			Total net sales	$	668,874		$	390,912		$	652,005

		Operating segment income:
		PCB		$	66,320		$	37,236		$	52,191
		E-M Solutions			2,612			744			(1,729	)
		Corporate			(25,708	)		(9,470	)		(20,445	)
			Total operating segment income		43,224			28,510			30,017
		Amortization of definite-lived intangibles			(6,683	)		(1,935	)		(6,421	)
			Total operating income		36,541			26,575			23,596
		Total other expense			(16,283	)		(4,071	)		(17,004	)
		Income before income taxes		$	20,258		$	22,504		$	6,592

RECONCILIATIONS¹
				Fourth Quarter						Third Quarter			Full Year
					2015			2014			2015			2015			2014
	Non-GAAP gross profit reconciliation²:
		GAAP gross profit		$	108,270		$	68,475		$	89,118		$	310,137		$	194,689
		Add back item:
			Inventory markup and PP&E step up		598			-			8,214			16,220			-
			Stock-based compensation		327			197			322			1,117			866
		Non-GAAP gross profit		$	109,195		$	68,672		$	97,654		$	327,474		$	195,555
		Non-GAAP gross margin			16.3	%		17.6	%		15.0	%		15.6	%		14.8	%

	Non-GAAP operating income reconciliation³:
		GAAP operating income (loss)		$	36,541		$	26,575		$	23,596		$	61,342		$	46,539
		Add back items:
			Amortization of definite-lived intangibles		6,683			1,935			6,421			18,888			8,387
			Stock-based compensation		2,635			1,747			2,672			9,661			7,800
			Gain on sale of asset		-			-			-			(2,504	)		-
			Acquisition-related costs		1,521			4,349			2,065			34,448			5,981
			Inventory markup and PP&E step up		598			-			8,214			16,220			-
			Impairments and restructuring charges		5,429			(7	)		2,003			7,941			1,900
		Non-GAAP operating income		$	53,407		$	34,599		$	44,971		$	145,996		$	70,607
		Non-GAAP operating margin			8.0	%		8.9	%		6.9	%		7.0	%		5.3	%

	Non-GAAP net income and EPS attributable to stockholders reconciliation⁴:
		GAAP net income (loss) attributable to stockholders		$	9,521		$	13,938		$	(2,237	)	$	(25,882	)	$	14,693
		Add back items:
			Amortization of definite-lived intangibles		6,683			1,935			6,421			18,888			8,387
			Stock-based compensation		2,635			1,747			2,672			9,661			7,800
			Non-cash interest expense		4,893			2,585			4,819			15,626			10,165
			Gain on sale of asset		-			-			-			(2,504	)		-
			Acquisition-related costs		1,521			4,349			2,065			34,448			5,981
			Inventory markup and PP&E step up		598			-			8,214			16,220			-
			Impairments, restructuring and other charges		5,429			(7	)		2,003			8,743			2,406
			Income taxes		247			(1,332	)		(122	)		5,869			(10,121	)
		Non-GAAP net income attributable to stockholders		$	31,527		$	23,215		$	23,835		$	81,069		$	39,311
		Non-GAAP earnings per diluted share attributable to stockholders		$	0.31		$	0.28		$	0.24		$	0.87		$	0.47

	Non-GAAP diluted number of shares⁵:
		Diluted shares			126,329			84,205			100,035			93,640			83,941
		Dilutive effect of convertible debt			(25,940	)		-			-			-			-
		Non-GAAP diluted number of shares			100,389			84,205			100,035			93,640			83,941

	Adjusted EBITDA reconciliation⁶:
		GAAP net income (loss)		$	9,657		$	13,938		$	(2,138	)	$	(25,618	)	$	14,693
		Add back items:
			Income tax provision (benefit)		10,601			8,566			8,730			34,594			7,598
			Interest expense		20,208			5,691			21,002			59,753			23,830
			Amortization of definite-lived intangibles		6,683			1,935			6,421			18,888			8,387
			Depreciation expense		39,105			24,318			40,091			133,508			95,349
			Stock-based compensation		2,635			1,747			2,672			9,661			7,800
			Gain on sale of asset		-			-			-			(2,504	)		-
			Acquisition-related costs		1,521			4,349			2,065			34,448			5,981
			Inventory markup		-			-			6,792			14,200			-
			Impairments, restructuring and other charges		5,429			(7	)		2,003			8,743			2,406
		Adjusted EBITDA		$	95,839		$	60,537		$	87,638		$	285,673		$	166,044
		Adjusted EBITDA margin			14.3	%		15.5	%		13.4	%		13.6	%		12.5	%

	Free cash flow reconciliation:
		Operating cash flow			139,829			52,407			14,735			237,462			129,810
		Add back items:
			Payment of accreted interest on convertible sr. notes		-			-			-			8,730			1,324
			Payment of acquisition-related costs		1,522			2,123			6,610			36,210			2,123
		Adjusted operating cash flow			141,351			54,530			21,345			282,402			133,257
		Capital expenditures, net			(22,967	)		(26,262	)		(30,345	)		(99,718	)		(108,571	)
		Free cash flow		$	118,384		$	28,268		$	(9,000	)	$	182,684		$	24,686

	¹This information provides a reconciliation of non-GAAP gross profit, non-GAAP operating income, non-GAAP net income attributable to stockholders, non-GAAP EPS attributable to stockholders, and adjusted EBITDA to the financial information in our consolidated condensed statements of operations.

	²Non-GAAP gross profit and gross margin measures exclude stock-based compensation expense, inventory markup and PP&E step up.

	³Non-GAAP operating income and operating margin measures exclude amortization of intangibles, stock-based compensation expense, gain on sale of assets, inventory markup, acquisition-related costs, asset impairments, restructuring and other charges.

	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), gain on sale of assets, inventory markup, acquisition-related costs, asset impairments, restructuring and other charges as well as the associated tax impact of these charges and discrete tax items -- provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations.

	⁵ Non-GAAP diluted number of shares used in computing non-GAAP earnings per share attributable to stockholders excludes the dilutive effect of convertible debt.

	⁶ Adjusted EBITDA is defined as earnings before interest expense, income taxes, depreciation, amortization of intangibles, stock-based compensation expense, gain on sale of assets, inventory markup, acquisition-related costs, asset impairments, restructuring and other charges. 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.

Contact:
Todd Schull, CFO
714-327-3000

Form: 8-K

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