Exhibit 99.1

 

TTM Technologies, Inc., Q3’19				Contact: Sameer Desai, Senior Director, Corporate Development & Investor Relations Sameer.desai@ttmtech.com 714-327-3050

TTM Technologies, Inc. Reports Fiscal Third Quarter 2019 Results

Santa Ana, CA – October 30, 2019 – TTM Technologies, Inc. (NASDAQ:TTMI), a leading global printed circuit board (“PCB”) and radio frequency (“RF”) components manufacturer, today reported results for the third quarter of fiscal 2019, which ended on September 30, 2019.

Third Quarter 2019 Highlights

 

•

Net sales were $716.8 million

 

•

GAAP net income was $15.9 million, or $0.14 per diluted share

 

•

Non-GAAP net income was $38.9 million, or $0.37 per diluted share

 

•

Cash flow from operations of $58.7 million

Third Quarter 2019 Financial Results

Net sales for the third quarter of 2019 were $716.8 million, compared to $755.8 million in the third quarter of 2018 and $633.0 million in the second quarter of 2019.

GAAP operating income for the third quarter of 2019 was $36.4 million, compared to $54.6 million in the third quarter of 2018 and $16.8 million in the second quarter of 2019.

GAAP net income for the third quarter of 2019 was $15.9 million, or $0.14 per diluted share. This compares to income of $27.0 million, or $0.22 per diluted share in the third quarter of 2018, and $3.4 million, or $0.03 per diluted share, in the second quarter of 2019.

On a non-GAAP basis, net income for the third quarter of 2019 was $38.9 million, or $0.37 per diluted share, inclusive of $0.05 of foreign exchange gains. This compares to non-GAAP net income of $55.1 million, or $0.50 per diluted share, for the third quarter of 2018 and $21.3 million, or $0.20 per diluted share, in the second quarter of 2019.

Adjusted EBITDA for the third quarter of 2019 was $103.5 million, or 14.4 percent of net sales, compared to adjusted EBITDA of $122.3 million, or 16.2 percent of net sales, for the third quarter of 2018 and $82.9 million, or 13.1 percent of net sales, for the second quarter of 2019.

“For the third quarter, TTM continued to generate solid cash flow and delivered revenue and earnings within the previously guided range,” said Tom Edman, CEO of TTM. “The year over year growth we experienced in the aerospace and defense and cellular end markets partially offset weakness in our other commercial end markets.”

Business Outlook

For the fourth quarter of 2019 TTM estimates that revenue will be in the range of $640 million to $680 million, and non-GAAP net income will be in the range of $0.25 to $0.31 per diluted share.

“Significant year on year declines from the automotive and networking and communications end markets are a major contributor to lower revenues in the fourth quarter. Consequently, we are exercising discipline in managing our costs and focusing on continued cash flow generation. Longer term, we are confident in our diversification and differentiation strategy and will benefit from secular growth drivers such as 5G wireless technology, increasing automotive electronic content, and ongoing demand strength in aerospace and defense electronics,” concluded Mr. Edman.

TTM Technologies, Inc., Q3’19				Contact: Sameer Desai, Senior Director, Corporate Development & Investor Relations Sameer.desai@ttmtech.com 714-327-3050

 

To Access the Live Webcast/Conference Call

TTM will host a conference call and webcast to discuss third quarter 2019 results and the fourth quarter 2019 outlook on Wednesday, October 30, 2019, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call will include forward-looking statements.

Telephone access is available by dialing domestic 800-367-2403 or international 334-777-6978 (ID 1206370). 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 volume production of technologically advanced PCBs, backplane assemblies and electro-mechanical solutions as well as a global designer and manufacturer of RF and microwave components and assemblies. 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, 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.

With respect to the Company’s outlook for non-GAAP net income per diluted share, we are unable to predict with reasonable certainty or without unreasonable effort certain items that may affect a

TTM Technologies, Inc., Q3’19				Contact: Sameer Desai, Senior Director, Corporate Development & Investor Relations Sameer.desai@ttmtech.com 714-327-3050

 

comparable measure calculated and presented in accordance with GAAP. Our expected non-GAAP net income per diluted share excludes primarily the future impact of restructuring actions, impairment charges, unusual gains and losses, and tax adjustments. These reconciling items are highly variable and difficult to predict due to various factors outside of management’s control and could have a material impact on our future period net income per diluted share calculated and presented in accordance with GAAP. Accordingly, a reconciliation of non-GAAP net income per diluted share to a comparable measure calculated and presented in accordance with GAAP is not available without unreasonable effort and has not been provided.

- Tables Follow -

TTM TECHNOLOGIES, INC.

Selected Unaudited Financial Information

(In thousands, except per share data)

 

		Third Quarter								Second Quarter				First Three Quarters
		2019				2018				2019				2019				2018
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Net sales		$	716,817			$	755,837			$	633,038			$	1,970,055			$	2,136,306
Cost of goods sold			612,983				626,253				548,423				1,692,921				1,801,904
Gross profit			103,834				129,584				84,615				277,134				334,402
Operating expenses:
Selling and marketing			18,400				18,533				17,867				55,168				54,780
General and administrative			38,845				39,974				34,693				108,561				119,822
Amortization of definite-lived intangibles			10,175				16,609				11,267				38,268				41,959
Restructuring charges			53				(82	)			3,944				4,442				1,556
Total operating expenses			67,473				75,034				67,771				206,439				218,117
Operating income			36,361				54,550				16,844				70,695				116,285
Interest expense			(20,568	)			(22,225	)			(20,871	)			(63,127	)			(56,425	)
Other, net			8,126				2,213				4,621				12,217				7,284
Income before income taxes			23,919				34,538				594				19,785				67,144
Income tax (provision) / benefit			(8,049	)			(7,537	)			2,830				(3,743	)			53,958
Net income		$	15,870			$	27,001			$	3,424			$	16,042			$	121,102
Earnings per share:
Basic		$	0.15			$	0.26			$	0.03			$	0.15			$	1.17
Diluted		$	0.14			$	0.22			$	0.03			$	0.15			$	0.98
Weighted-average shares used in computing per share amounts:
Basic			105,492				103,676				105,470				105,092				103,246
Diluted			132,412				136,435				106,107				106,065				134,871
Reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share:
Net income		$	15,870			$	27,001											$	121,102
Add back items: interest expense, net of tax			2,836				3,628												10,763
Adjusted net income		$	18,706			$	30,629											$	131,865
Weighted-average shares outstanding			105,492				103,676												103,246
Dilutive effect of convertible debt			25,938				25,938												25,939
Dilutive effect of warrants			—				5,226												4,086
Dilutive effect of performance-based stock units, restricted stock units & stock options			982				1,595												1,600
Diluted shares			132,412				136,435												134,871
Earnings per share:
Basic		$	0.15			$	0.26											$	1.17
Diluted		$	0.14			$	0.22											$	0.98
SELECTED BALANCE SHEET DATA
		September 30, 2019				December 31, 2018
Cash and cash equivalents, including restricted cash		$	316,589			$	256,360
Accounts and notes receivable, net			529,942				523,165
Contract assets			268,542				287,741
Inventories			126,324				109,377
Total current assets			1,277,835				1,206,914
Property, plant and equipment, net			1,027,868				1,052,024
Operating lease right of use asset			23,670				—
Other non-current assets			1,168,985				1,198,565
Total assets			3,498,358				3,457,503
Short-term debt, including current portion of long-term debt		$	—			$	30,000
Accounts payable			470,233				431,288
Total current liabilities			666,673				673,214
Debt, net of discount			1,472,578				1,462,425
Total long-term liabilities			1,584,332				1,557,202
Total equity			1,247,353				1,227,087
Total liabilities and equity			3,498,358				3,457,503

SUPPLEMENTAL DATA

 

		Third Quarter								Second Quarter				First Three Quarters
		2019				2018				2019				2019				2018
Gross margin			14.5	%			17.1	%			13.4	%			14.1	%			15.7	%
Operating margin			5.1	%			7.2	%			2.7	%			3.6	%			5.4	%
End Market Breakdown:
		Third Quarter								Second Quarter
		2019				2018*				2019
Aerospace/Defense			24	%			21	%			28	%
Automotive			17	%			15	%			16	%
Cellular Phone			19	%			17	%			6	%
Computing/Storage/Peripherals			12	%			14	%			15	%
Medical/Industrial/Instrumentation			13	%			14	%			15	%
Networking/Communications			13	%			17	%			17	%
Other			2	%			2	%			3	%
*  Amended for Anaren integration
Stock-based Compensation:
		Third Quarter								Second Quarter
		2019				2018				2019
Amount included in:
Cost of goods sold		$	941			$	774			$	570
Selling and marketing			593				520				396
General and administrative			3,128				4,165				2,636
Total stock-based compensation expense		$	4,662			$	5,459			$	3,602
Operating Segment Data:
		Third Quarter								Second Quarter
		2019				2018				2019
Net sales:
PCB		$	649,104			$	696,356			$	573,121
E-M Solutions			67,713				59,481				59,917
Total net sales		$	716,817			$	755,837			$	633,038
Operating segment income:
PCB		$	73,230			$	98,039			$	50,989
E-M Solutions			3,236				2,205				863
Corporate			(28,750	)			(26,920	)			(22,561	)
Total operating segment income			47,716				73,324				29,291
Amortization of definite-lived intangibles			(11,355	)			(18,774	)			(12,447	)
Total operating income			36,361				54,550				16,844
Total other expense			(12,442	)			(20,012	)			(16,250	)
Income before income taxes		$	23,919			$	34,538			$	594

RECONCILIATIONS¹

 

		Third Quarter								Second Quarter				First Three Quarters
		2019				2018				2019				2019				2018
Non-GAAP gross profit reconciliation2:
GAAP gross profit		$	103,834			$	129,584			$	84,615			$	277,134			$	334,402
Add back item:
Inventory markup			—				—				—				—				4,900
Amortization of definite-lived intangibles			1,180				2,165				1,180				3,539				2,165
Stock-based compensation			941				774				570				2,216				2,132
Non-GAAP gross profit		$	105,955			$	132,523			$	86,365			$	282,889			$	343,599
Non-GAAP gross margin			14.8	%			17.5	%			13.6	%			14.4	%			16.1	%
Non-GAAP operating income reconciliation3:
GAAP operating income		$	36,361			$	54,550			$	16,844			$	70,695			$	116,285
Add back items:
Amortization of definite-lived intangibles			11,355				18,774				12,447				41,807				44,124
Stock-based compensation			4,662				5,459				3,602				12,190				14,948
Inventory markup			—				—				—				—				4,900
Restructuring, acquisition-related, and other charges			1,573				230				4,351				7,027				12,693
Non-GAAP operating income		$	53,951			$	79,013			$	37,244			$	131,719			$	192,950
Non-GAAP operating margin			7.5	%			10.5	%			5.9	%			6.7	%			9.0	%
Non-GAAP net income and EPS reconciliation4:
GAAP net income		$	15,870			$	27,001			$	3,424			$	16,042			$	121,102
Add back items:
Amortization of definite-lived intangibles			11,355				18,774				12,447				41,807				44,124
Stock-based compensation			4,662				5,459				3,602				12,190				14,948
Non-cash interest expense			3,452				3,992				3,467				10,787				10,399
(Gain) on sale of Viasource			(251	)			—				(235	)			(3,557	)			—
Inventory markup			—				—				—				—				4,900
Restructuring, acquisition-related, and other charges			1,573				230				4,351				7,027				13,235
Income taxes5			2,237				(337	)			(5,789	)			(7,702	)			(73,302	)
Non-GAAP net income		$	38,898			$	55,119			$	21,267			$	76,594			$	135,406
Non-GAAP earnings per diluted share		$	0.37			$	0.50			$	0.20			$	0.72			$	1.24
Non-GAAP diluted number of shares6:
Diluted shares			132,412				136,435				106,107				106,065				134,871
Dilutive effect of convertible debt			(25,938	)			(25,938	)			—				—				(25,939	)
Non-GAAP diluted number of shares			106,474				110,497				106,107				106,065				108,932
Adjusted EBITDA reconciliation7:
GAAP net income		$	15,870			$	27,001			$	3,424			$	16,042			$	121,102
Add back items:
Income tax provision (benefit)			8,049				7,537				(2,830	)			3,743				(53,958	)
Interest expense			20,568				22,225				20,871				63,127				56,425
Amortization of definite-lived intangibles			11,355				18,774				12,447				41,807				44,124
Depreciation expense			41,719				41,092				41,235				124,556				121,165
Stock-based compensation			4,662				5,459				3,602				12,190				14,948
(Gain) on sale of Viasource			(251	)			—				(235	)			(3,557	)			—
Inventory markup			—				—				—				—				4,900
Restructuring, acquisition-related, and other charges			1,573				230				4,351				7,027				12,693
Adjusted EBITDA		$	103,545			$	122,318			$	82,865			$	264,935			$	321,399
Adjusted EBITDA margin			14.4	%			16.2	%			13.1	%			13.4	%			15.0	%
Free cash flow reconciliation:
Operating cash flow			58,742				79,992				86,123				181,789				121,370
Capital expenditures, net			(25,803	)			(35,038	)			(34,741	)			(88,990	)			(116,125	)
Free cash flow		$	32,939			$	44,954			$	51,382			$	92,799			$	5,245

 

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

2	Non-GAAP gross profit and gross margin measures exclude amortization of intangibles, stock-based compensation expense and inventory markup.

3	Non-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, restructuring and other charges.

4

This information provides non-GAAP net income and non-GAAP EPS, 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, 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	Income tax adjustments reflect the difference between income taxes based on a non-GAAP tax rate and a forecasted annual GAAP tax rate.

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

7

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, 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.