Form: 8-K/A

Current report filing

March 1, 2013

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K/A

(Amendment No. 1)

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported) February 5, 2013

 

 

TTM TECHNOLOGIES, INC.

(Exact Name of Registrant as Specified in Charter)

 

 

DELAWARE

(State or other jurisdiction of incorporation)

 

0-31285   91-1033443
(Commission File Number)   (IRS Employer Identification Number)

1665 Scenic Ave, Suite 250, Costa Mesa, CA

92626

(Address of Principal Executive Offices) (Zip Code)

(714) 327-3000

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02. Results of Operations and Financial Condition.

On February 5, 2013, TTM Technologies, Inc. (the “Company”) filed a Current Report on Form 8-K (the “Original Filing”) with the Securities and Exchange Commission furnishing a press release that announced the Company’s financial results for the fourth quarter and year ended December 31, 2012. This Amendment No. 1 on Form 8-K/A is being filed to amend certain information set forth in the Original Filing.

Subsequent to the issuance of the press release and the Original Filing, the Company was notified by a customer of a warranty claim for defective products. The Company estimates a potential liability of approximately $650,000 for this claim. The warranty claim resulted in an approximate $650,000 decrease in the Company’s fourth quarter and full year 2012 net sales reflected in the Original Filing. Net sales are $381.7 million for the quarter ended December 31, 2012 (compared to $382.4 million as previously reported) and $1,348.7 million for the year ended December 31, 2012 (compared to $1,349.3 million as previously reported).

In addition, the Company increased the valuation allowance on the deferred tax assets of one of its China-based subsidiaries by approximately $1.6 million. The increase in the valuation allowance on the deferred tax assets and the tax impact of the warranty claim resulted in a net increase of $1.3 million in the Company’s tax provision for the fourth quarter and year ended December 31, 2012.

The net impact of the above adjustments is a decrease in net income attributable to stockholders for the quarter ended December 31, 2012 to $13.7 million, or $0.17 per diluted share (compared to $15.7 million, or $0.19 per diluted share, as previously reported), and an increase in the net loss attributable to stockholders for the year ended December 31, 2012 to $174.6 million, or $2.13 per share (compared to $172.6 million, or $2.11 per share, as previously reported).

On a non-GAAP basis, the net impact of the above adjustments is a decrease to net income attributable to stockholders for the quarter ended December 31, 2012 to $18.6 million, or $0.23 per diluted share (compared to $21.5 million, or $0.26 per diluted share, as previously reported), and a decrease in net income attributable to stockholders for the year ended December 31, 2012 to $69.1 million, or $0.84 per diluted share (compared to $72.0 million, or $0.87 per diluted share, as previously reported).

Previously reported results for the first three quarters of 2012 are not affected by the adjustments. The financial statements included below in this report reflect the adjustments noted above. The Company’s Form 10-K for the year ended December 31, 2012, filed with the Securities and Exchange Commission on March 1, 2013, reflects this corrected information.

About Our Non-GAAP Financial Measures

This report contains 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.


TTM TECHNOLOGIES, INC.

Selected Unaudited Financial Information

(In thousands, except per share data)

 

     Fourth Quarter     Third Quarter     Full Year  
     2012     2011     2012     2012     2011  

CONSOLIDATED STATEMENTS OF OPERATIONS

  

     

Net sales

   $ 381,735      $ 361,460      $ 339,011      $ 1,348,668      $ 1,428,639   

Cost of goods sold

     320,221        290,082        286,695        1,123,669        1,127,326   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     61,514        71,378        52,316        224,999        301,313   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

          

Selling and marketing

     9,592        9,867        8,735        35,957        36,891   

General and administrative

     28,682        24,178        23,735        98,005        92,682   

Amortization of definite-lived intangibles

     2,515        4,517        4,104        14,637        17,311   

Impairment of goodwill and definite-lived intangibles

     —           15,184        200,335        200,335        15,184   

Impairment of long-lived assets

     —           —           18,082        18,082        48,125   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     40,789        53,746        254,991        367,016        210,193   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     20,725        17,632        (202,675     (142,017     91,120   

Interest expense

     (6,558     (6,795     (6,429     (25,784     (26,504

Loss on extinguishment of debt

     —           —           (5,527     (5,527     —      

Other, net

     2,440        2,851        1,117        4,956        8,616   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     16,607        13,688        (213,514     (168,372     73,232   

Income tax (provision) benefit

     (4,926     (1,328     850        (12,728     (26,005

Net income (loss)

     11,681        12,360        (212,664     (181,100     47,227   

Net loss (income) attributable to noncontrolling interest

     2,061        (1,190     4,322        6,505        (5,359
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to stockholders

   $ 13,742      $ 11,170      $ (208,342   $ (174,595   $ 41,868   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) per share attributable to stockholders:

          

Basic

   $ 0.17      $ 0.14      $ (2.54   $ (2.13   $ 0.52   

Diluted

   $ 0.17      $ 0.14      $ (2.54   $ (2.13   $ 0.51   

Weighted average common shares:

          

Basic

     81,932        81,336        81,929        81,800        81,176   

Diluted

     82,613        81,988        81,929        81,800        81,944   


SELECTED BALANCE SHEET DATA

 

     December 31,  
     2012      2011  

Cash and cash equivalents

   $ 285,433       $ 196,052   

Accounts and notes receivable, net

     301,557         316,568   

Inventories

     146,012         129,430   

Total current assets

     765,612         671,534   

Property, plant and equipment, net

     833,678         766,800   

Other non-current assets

     77,672         310,735   
  

 

 

    

 

 

 

Total assets

   $ 1,676,962       $ 1,749,069   
  

 

 

    

 

 

 

Short-term debt, including current portion long-term debt

   $ 30,004       $ 120,882   

Accounts payable

     221,265         185,906   

Total current liabilities

     369,880         437,140   

Debt, net of discount

     527,541         368,518   

Total long-term liabilities

     554,252         389,259   

Noncontrolling interest

     98,883         113,753   

Total stockholders’ equity

     752,830         922,670   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 1,676,962       $ 1,749,069   
  

 

 

    

 

 

 

 

SUPPLEMENTAL DATA           
     Fourth Quarter     Third Quarter     Full Year  
     2012     2011     2012     2012     2011  

Gross margin

     16.1     19.7     15.4     16.7     21.1

Adjusted EBITDA margin

     13.0        16.6        10.8        13.0        17.5   

Operating margin

     5.4        4.9        (59.8     (10.5     6.4   

End Market Breakdown:

          

 

     Fourth Quarter     Third Quarter  
     2012     2011     2012  

Aerospace/Defense

     13     15     16

Cellular Phone

     17        14        15   

Computing/Storage/Peripherals

     23        20        21   

Medical/Industrial/Instrumentation

     7        8        8   

Networking/Communications

     30        33        29   

Other

     10        10        11   

 

Stock-based Compensation:

        
     Fourth Quarter      Third Quarter  
     2012      2011      2012  

Amount included in:

        

Cost of goods sold

   $ 265       $ 251       $ 253   

Selling and marketing

     124         106         115   

General and administrative

     2,432         1,786         2,089   
  

 

 

    

 

 

    

 

 

 

Total stock-based compensation expense

   $ 2,821       $ 2,143       $ 2,457   
  

 

 

    

 

 

    

 

 

 


Operating segment Data:

          
     Fourth Quarter     Third Quarter
2012
       
     2012     2011      

Net sales:

        

Asia Pacific

   $ 259,378      $ 218,448      $ 215,746     

North America

     123,232        144,079        123,861     
  

 

 

   

 

 

   

 

 

   

Total sales

     382,610        362,527        339,607     

Inter-segment sales

     (875     (1,067     (596  
  

 

 

   

 

 

   

 

 

   

Total net sales

   $ 381,735      $ 361,460      $ 339,011     
  

 

 

   

 

 

   

 

 

   

Operating segment income (loss):

        

Asia Pacific

   $ 17,644      $ 20,094      $ (206,806  

North America

     5,596        2,055        8,235     
  

 

 

   

 

 

   

 

 

   

Total operating segment income (loss)

     23,240        22,149        (198,571  

Amortization of definite-lived intangibles

     (2,515     (4,517     (4,104  
  

 

 

   

 

 

   

 

 

   

Total operating income (loss)

     20,725        17,632        (202,675  

Total other expense

     (4,118     (3,944     (10,839  
  

 

 

   

 

 

   

 

 

   

Income (loss) before income taxes

   $ 16,607      $ 13,688      $ (213,514  
  

 

 

   

 

 

   

 

 

     

RECONCILIATIONS1

  

       
     Fourth Quarter     Third Quarter     Full Year  
     2012     2011     2012     2012     2011  

Adjusted EBITDA reconciliation2:

          

Net income (loss)

   $ 11,681      $ 12,360      $ (212,664   $ (181,100   $ 47,227   

Add back items:

          

Income tax provision

     4,926        1,328        (850     12,728        26,005   

Interest expense

     6,558        6,795        6,429        25,784        26,504   

Amortization of definite-lived intangibles

     2,515        4,546        4,104        14,684        17,427   

Depreciation expense

     23,962        19,946        21,046        84,286        69,698   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 49,642      $ 44,975      $ (181,935   $ (43,618   $ 186,861   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Add back: Asset impairments

     —           15,184        218,417        218,417        63,309   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 49,642      $ 60,159      $ 36,482      $ 174,799      $ 250,170   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP EPS excluding impairments reconciliation3:

          

GAAP net income (loss) attributable to stockholders

   $ 13,742      $ 11,170      $ (208,342   $ (174,595   $ 41,868   

Add back items:

        

Asset impairments

     —           15,184        218,417        218,417        63,309   

Income tax effects

     —           (4,058     (2,574     (2,574     (4,764
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP net income, excluding impairments, attributable to stockholders

   $ 13,742      $ 22,296      $ 7,501      $ 41,248      $ 100,413   


GAAP earnings per diluted share, excluding impairments, attributable to stockholders

   $ 0.17      $ 0.27      $ 0.09      $ 0.50      $ 1.23   

Non-GAAP EPS reconciliation4:

        

GAAP net income (loss) attributable to stockholders

   $ 13,742      $ 11,170      $ (208,342   $ (174,595   $ 41,868   

Add back items:

        

Amortization of definite-lived intangibles

     2,515        4,546        4,104        14,684        17,427   

Stock-based compensation

     2,821        2,143        2,457        10,266        8,075   

Non-cash interest expense

     2,016        1,947        1,977        7,893        8,163   

Impairments, restructuring and other charges

     —           15,184        223,944        223,944        63,309   

Income tax effects

     (2,447     (5,666     (6,045     (13,069     (12,379
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income attributable to stockholders

   $ 18,647      $ 29,324      $ 18,095      $ 69,123      $ 126,463   

Non-GAAP earnings per diluted share attributable to stockholders

   $ 0.23      $ 0.36      $ 0.22      $ 0.84      $ 1.54   

 

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.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

        TTM TECHNOLOGIES, INC.
Date: March 1, 2013     By:  

/s/ Steven W. Richards

      Steven W. Richards
      Chief Financial Officer