Exhibit 99.1

 

TTM Technologies, Inc., Q2’20						Contact: Sameer Desai, Senior Director, Corporate Development & Investor Relations Sameer.desai@ttmtech.com 714-327-3050

 

TTM Technologies, Inc. Reports Fiscal Second Quarter 2020 Results

Santa Ana, CA – July 29, 2020 – TTM Technologies, Inc. (NASDAQ:TTMI), a leading global printed circuit board (“PCB”) and radio frequency (“RF”) components manufacturer, today reported results for the second quarter of fiscal 2020, which ended on June 29, 2020.

On April 19th, TTM completed the previously announced sale of its Mobility business unit. The operating results and related assets and liabilities of the Mobility business under US GAAP are presented as discontinued operations for all periods. To facilitate the comparison of TTM’s results to previously issued guidance, non-GAAP financial information is also provided below which includes approximately three weeks of results for the Mobility business unit as well as results from the previously announced closure of the two E-MS plants. Please refer to the earnings schedule for additional details on exited businesses and continuing operations.

Second Quarter 2020 Highlights

 

•

GAAP net sales were $570.3 million

 

•

Non-GAAP net sales were $601.1 million

 

•

GAAP net income of $192.8 million, or $1.79 per diluted share, inclusive of a net gain on the sale of the Mobility business unit of $183.1 million or $1.70 per diluted share

 

•

Non-GAAP net income was $33.3 million, or $0.31 per diluted share, inclusive of $0.01 of foreign exchange loss

 

•

Cash flow from operations of $119.0 million

 

•

Today repaid $400 million of Term Loan B from cash received from Mobility Business Unit divestiture

Second Quarter 2020 GAAP Financial Results

Net sales from continuing operations for the second quarter of 2020 were $570.3 million, compared to $526.9 million in the second quarter of 2019 and $497.6 million in the first quarter of 2020.

GAAP operating income from continuing operations for the second quarter of 2020 was $23.0 million, compared to $29.0 million in the second quarter of 2019 and $16.2 million in the first quarter of 2020.

GAAP net income for the second quarter of 2020 was $192.8 million, or $1.79 per diluted share and includes an estimated net gain of $183.1 million from the sale of the Mobility business. This compares to net income of $3.4 million, or $0.03 per diluted share in the second quarter of 2019, and net loss of $1.2 million, or ($0.01) per diluted share, in the first quarter of 2020.

Second Quarter 2020 Non-GAAP Financial Results

Net sales for the second quarter of 2020 were $601.1 million, compared to $633.0 million in the second quarter of 2019 and $610.8 million in the first quarter of 2020.

On a non-GAAP basis, net income for the second quarter of 2020 was $33.3 million, or $0.31 per diluted share. This compares to non-GAAP net income of $21.3 million, or $0.20 per diluted share, for the second quarter of 2019 and $19.6 million, or $0.18 per diluted share, in the first quarter of 2020.

Adjusted EBITDA for the second quarter of 2020 was $80.3 million, or 13.4 percent of net sales, compared to adjusted EBITDA of $82.9 million, or 13.1 percent of net sales, for the second quarter of 2019 and $82.1 million, or 13.4 percent of net sales, for the first quarter of 2020.

 

TTM Technologies, Inc., Q2’20						Contact: Sameer Desai, Senior Director, Corporate Development & Investor Relations Sameer.desai@ttmtech.com 714-327-3050

 

“In the second quarter, TTM demonstrated excellent operational execution and overcame COVID-19 related challenges to deliver revenue and earnings above the previously guided range. All of our manufacturing facilities continue to remain operational and I want to recognize all of our employees for their tremendous efforts in support of our customers during these challenging times,” said Tom Edman, CEO of TTM. “The diversified mix of end markets that we serve enabled TTM to grow revenues and outperform earnings expectations despite weakness in the automotive and commercial aerospace end markets. Finally, TTM has shown financial discipline, bringing our net debt to EBITDA ratio to 2.1, following the receipt of proceeds from the sale of the Mobility Business Unit and subsequent repayment of our Term loan.”

Business Outlook

Looking ahead, we believe that we will continue to experience COVID-19 related impacts on our end markets as well as inefficiencies with our own production. Taking this into consideration, TTM estimates that revenue for the third quarter of 2020 will be in the range of $470 million to $510 million, and non-GAAP net income will be in the range of $0.16 to $0.22 per diluted share. This guidance no longer includes the Mobility Business Unit but continues to include the E-MS business unit while that business winds down.

Live Webcast/Conference Call

TTM will host a conference call and webcast to discuss second quarter 2020 results and the third quarter 2020 outlook on Wednesday, July 29, 2020, 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 9715005). 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 and backplane assemblies as well as a global designer and manufacturer of high-frequency radio frequency (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, the impact of COVID-19, 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

 

TTM Technologies, Inc., Q2’20						Contact: Sameer Desai, Senior Director, Corporate Development & Investor Relations Sameer.desai@ttmtech.com 714-327-3050

 

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 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)

 

		Second Quarter								First Quarter				First Two Quarters
		2020				2019*				2020				2020				2019*
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Net sales		$	570,298			$	526,877			$	497,646			$	1,067,944			$	1,063,322
Cost of goods sold			469,868				434,029				416,304				886,172				871,648
Gross profit			100,430				92,848				81,342				181,772				191,674
Operating expenses:
Selling and marketing			15,969				16,898				16,169				32,138				34,458
General and administrative			33,309				29,137				34,339				67,648				58,987
Research and development			5,181				4,496				4,762				9,943				9,212
Amortization of definite-lived intangibles			9,561				10,593				9,562				19,123				26,745
Restructuring charges			13,414				2,732				328				13,742				3,164
Total operating expenses			77,434				63,856				65,160				142,594				132,566
Operating income			22,996				28,992				16,182				39,178				59,108
Interest expense			(18,572	)			(20,553	)			(19,781	)			(38,353	)			(41,688	)
Other, net			455				3,007				2,502				2,957				2,650
Income (Loss) from continuing operations before income taxes			4,879				11,446				(1,097	)			3,782				20,070
Income tax benefit (provision)			4,467				1,047				(2,123	)			2,344				(1,339	)
Net income (loss) from continuing operations			9,346				12,493				(3,220	)			6,126				18,731
Income (loss) from discontinued operations, net of income taxes			183,464				(9,069	)			2,046				185,510				(18,559	)
Net income (loss)		$	192,810			$	3,424			$	(1,174	)		$	191,636			$	172
* Reclassified Research and development expenses as a separate line item from General and administrative expenses
Earnings (loss) per share:
Basic earnings (loss) per share from continuing operations		$	0.09			$	0.12			$	(0.03	)		$	0.06			$	0.18
Basic earnings (loss) per share from discontinued operations			1.72				(0.09	)			0.02				1.75				(0.18	)
Basic earnings (loss) per share		$	1.81			$	0.03			$	(0.01	)		$	1.81			$	0.00
Diluted earnings (loss) per share from continuing operations		$	0.09			$	0.12			$	(0.03	)		$	0.06			$	0.18
Diluted earnings (loss) per share from discontinued operations			1.70				(0.09	)			0.02				1.72				(0.18	)
Diluted earnings (loss) per share		$	1.79			$	0.03			$	(0.01	)		$	1.78			$	0.00
Weighted-average shares used in computing per share amounts:
Basic			106,295				105,470				105,686				105,990				104,893
Diluted			107,485				132,045				105,686				107,431				105,860
Reconciliation of the denominator used to calculate basic earnings per share and diluted earnings per share:
Net income			9,346				12,493								6,126				18,731
Add back items: interest expense, net of tax			—				2,780								—				—
Adjusted net income			9,346				15,273								6,126				18,731
Weighted-average shares outstanding			106,295				105,470								105,990				104,893
Dilutive effect of convertible debt			—				25,938								—				—
Dilutive effect of warrants			—				—								—				—
Dilutive effect of performance-based stock units, restricted stock units & stock options			1,190				637								1,441				967
Diluted shares			107,485				132,045								107,431				105,860
Earnings per share:
Basic earnings per share from continuing operations		$	0.09			$	0.12							$	0.06			$	0.18
Basic earnings (loss) per share from discontinued operations			1.72				(0.09	)							1.75				(0.18	)
Basic earnings per share		$	1.81			$	0.03							$	1.81			$	0.00
Diluted earnings per share from continuing operations		$	0.09			$	0.12							$	0.06			$	0.18
Diluted earnings (loss) per share from discontinued operations			1.70				(0.09	)							1.72				(0.18	)
Diluted earnings per share		$	1.79			$	0.03							$	1.78			$	0.00
SELECTED BALANCE SHEET DATA
		June 29, 2020				December 30, 2019
Cash and cash equivalents, including restricted cash		$	694,668			$	379,818
Accounts and notes receivable, net			414,329				503,598
Contract assets			287,281				254,600
Inventories			122,847				113,753
Current assets held for sale			—				67,572
Total current assets			1,871,912				1,342,684
Property, plant and equipment, net			660,866				678,201
Operating lease right of use asset			21,993				22,173
Non-current assets held for sale			—				425,597
Other non-current assets			1,039,900				1,092,278
Total assets			3,594,671				3,560,933
Short-term debt, including current portion of long-term debt		$	649,975			$	249,975
Accounts payable			351,819				329,866
Current liabilities held for sale			—				185,391
Total current liabilities			1,197,457				946,666
Debt, net of discount			832,834				1,225,962
Non-current liabilities held for sale			—				1,530
Total long-term liabilities			951,649				1,335,230
Total equity			1,445,565				1,279,037
Total liabilities and equity			3,594,671				3,560,933

SUPPLEMENTAL DATA
		Second Quarter								First Quarter				First Two Quarters
		2020				2019				2020				2020				2019*
Gross margin			17.6	%			17.6	%			16.3	%			17.0	%			18.0	%
Operating margin			4.0	%			5.5	%			3.3	%			3.7	%			5.6	%
End Market Breakdown, including Mobility:
		Second Quarter								First Quarter
		2020				2019				2020
Aerospace/Defense			31	%			28	%			30	%
Automotive			12	%			16	%			12	%
Cellular Phone			3	%			6	%			11	%
Computing/Storage/Peripherals			13	%			15	%			14	%
Medical/Industrial/Instrumentation			20	%			15	%			16	%
Networking/Communications			19	%			17	%			14	%
Other			2	%			3	%			3	%

 

TTM Consolidated																																		Mobility Business Unit
End Markets		1Q 19				2Q 19				3Q 19				4Q 19				FY2019				1Q 20				2Q 20								End Markets		1Q 19				2Q 19				3Q 19				4Q 19				FY2019				1Q 20				2Q 20
Aerospace/Defense			27	%			28	%			24	%			26	%			26	%			30	%			31	%						Aerospace/Defense			0	%			0	%			0	%			0	%			0	%			0	%			0	%
Automotive			17	%			16	%			17	%			14	%			16	%			12	%			12	%						Automotive			5	%			6	%			3	%			2	%			4	%			3	%			4	%
Cellular Phones			7	%			6	%			19	%			16	%			13	%			11	%			3	%						Cellular Phones			48	%			41	%			73	%			65	%			60	%			56	%			54	%
Computing/Storage/Periph			13	%			15	%			12	%			14	%			13	%			14	%			13	%						Computing/Storage/Periph			28	%			36	%			14	%			19	%			22	%			22	%			25	%
Medical/Industrial/Inst			15	%			15	%			13	%			13	%			14	%			16	%			20	%						Medical/Industrial/Inst			7	%			5	%			2	%			3	%			4	%			3	%			4	%
Networking/ Communications			18	%			17	%			13	%			15	%			15	%			14	%			19	%						Networking/ Communications			5	%			5	%			4	%			6	%			5	%			6	%			5	%
Other			3	%			3	%			2	%			2	%			3	%			3	%			2	%						Other			7	%			7	%			4	%			5	%			5	%			10	%			8	%
SZ + SH-EMS																																		TTM, excluding Mobility, SZ & SH E-MS
End Markets		1Q 19				2Q 19				3Q 19				4Q 19				FY2019				1Q 20				2Q 20								End Markets		1Q 19				2Q 19				3Q 19				4Q 19				FY2019				1Q 20				2Q 20
Aerospace/Defense			0	%			1	%			0	%			0	%			0	%			0	%			0	%						Aerospace/Defense			33	%			36	%			36	%			37	%			35	%			38	%			33	%
Automotive			56	%			58	%			74	%			59	%			63	%			49	%			54	%						Automotive			17	%			15	%			15	%			15	%			15	%			13	%			11	%
Cellular Phones			0	%			0	%			0	%			0	%			0	%			0	%			0	%						Cellular Phones			0	%			-1	%			1	%			0	%			0	%			1	%			0	%
Computing/Storage/Periph			0	%			0	%			0	%			0	%			0	%			0	%			0	%						Computing/Storage/Periph			12	%			12	%			12	%			13	%			12	%			12	%			13	%
Medical/Industrial/Inst			22	%			23	%			11	%			19	%			18	%			23	%			14	%						Medical/Industrial/Inst			16	%			17	%			18	%			17	%			17	%			18	%			21	%
Networking/ Communications			21	%			18	%			16	%			22	%			19	%			29	%			35	%						Networking/ Communications			20	%			19	%			16	%			17	%			18	%			16	%			19	%
Other			1	%			0	%			-1	%			0	%			0	%			-1	%			-3	%						Other			2	%			2	%			2	%			1	%			3	%			2	%			3	%

Stock-based Compensation, including Mobility:
		Second Quarter								First Quarter
		2020				2019				2020
Amount included in:
Cost of goods sold		$	620			$	569			$	850
Selling and marketing			291				383				451
General and administrative			1,690				2,611				3,477
Research & Development			46				39				57
Total stock-based compensation expense		$	2,647			$	3,602			$	4,835
Operating Segment Data:
		Second Quarter								First Quarter
Net sales:			2020				2019				2020
PCB		$	520,067			$	466,960			$	467,430
E-M Solutions			50,231				59,917				30,216
Total net sales		$	570,298				526,877				497,646
Operating segment income:
PCB		$	80,056			$	62,463			$	61,626
E-M Solutions			(15,577	)			863				(4,329	)
Corporate			(30,538	)			(22,561	)			(30,170	)
Total operating segment income			33,941				40,765				27,127
Amortization of definite-lived intangibles			(10,945	)			(11,773	)			(10,945	)
Total operating income			22,996				28,992				16,182
Total other expense			(18,117	)			(17,546	)			(17,279	)
Income (Loss) from continuing operations before income taxes		$	4,879			$	11,446			$	(1,097	)

RECONCILIATIONS¹

 

		GAAP December 30, 2019				Mobility balances December 30, 20192				Combined December 30, 2019
Cash and cash equivalents, including restricted cash		$	379,818			$	20,336			$	400,154
Accounts and notes receivable, net			503,598				66				503,664
Contract assets			254,600				33,635				288,235
Inventories			113,753				8,266				122,019
Current assets held for sale			67,572				(67,572	)			—
Total current assets			1,342,684				—				1,342,684
Property, plant and equipment, net			678,201				344,728				1,022,929
Operating lease right of use asset			22,173				1,983				24,156
Non-current assets held for sale			425,597				(425,597	)			—
Other non-current assets			1,092,278				78,886				1,171,164
Total assets			3,560,933				—				3,560,933
Short-term debt, including current portion of long-term debt		$	249,975			$	—			$	249,975
Accounts payable			329,866				153,700				483,566
Current liabilities held for sale			185,391				(185,391	)			—
Total current liabilities			946,666				—				946,666
Debt, net of discount			1,225,962				—				1,225,962
Non-current liabilities held for sale			1,530				(1,530	)			—
Total long-term liabilities			1,335,230				—				1,335,230
Total equity			1,279,037				—				1,279,037
Total liabilities and equity			3,560,933				—				3,560,933

 

		Second Quarter								First Quarter				First Two Quarters
		2020				2019				2020				2020				2019*
Non-GAAP revenue reconciliation3:
GAAP revenue		$	570,298			$	526,877			$	497,646			$	1,067,944			$	1,063,322
Revenue from discontinued operations			30,777				106,161				113,174				143,951				189,916
Non-GAAP revenue		$	601,075			$	633,038			$	610,820			$	1,211,895			$	1,253,238
Non-GAAP gross profit reconciliation4:
GAAP gross profit		$	100,430			$	92,848			$	81,342			$	181,772			$	191,674
Gross profit from discontinued operations			2,402				(8,233	)			4,749				7,151				(18,374	)
Add back item:
Amortization of definite-lived intangibles			1,384				1,180				1,383				2,767				2,359
Accelerated Depreciation			2,397				—				—				2,397				—
Stock-based compensation			620				569				850				1,470				1,275
Non-GAAP gross profit		$	107,233			$	86,364			$	88,324			$	195,557			$	176,934
Non-GAAP gross margin			17.8	%			13.6	%			14.5	%			16.1	%			14.1	%
Non-GAAP operating income reconciliation5:
GAAP operating income		$	22,996			$	28,992			$	16,182			$	39,178			$	59,108
Operating income (loss) from discontinued operations			976				(12,148	)			1,441				2,417				(24,774	)
Add back items:
Amortization of definite-lived intangibles			11,079				12,447				11,620				22,699				30,452
Accelerated Depreciation			2,754				—				—				2,754				—
Stock-based compensation			2,647				3,602				4,835				7,482				7,528
Restructuring, acquisition-related, and other charges			14,273				4,351				1,596				15,869				5,454
Non-GAAP operating income		$	54,725			$	37,244			$	35,674			$	90,399			$	77,768
Non-GAAP operating margin			9.1	%			5.9	%			5.8	%			7.5	%			6.2	%
Non-GAAP net income and EPS reconciliation6:
GAAP net income (loss)		$	9,346			$	12,493				(3,220	)		$	6,126			$	18,731
Net income (loss) from discontinued operations			183,464				(9,069	)			2,046				185,510				(18,559	)
Add back items:
Amortization of definite-lived intangibles			11,079				12,447				11,620				22,699				30,452
Accelerated Depreciation			2,754				—				—				2,754				—
Gain on sales of the Mobility business unit			(248,863	)			—				—				(248,863	)			—
Stock-based compensation			2,647				3,602				4,835				7,482				7,528
Non-cash interest expense			3,604				3,467				3,553				7,157				7,335
(Gain) on sale of assets			(274	)			(235	)			(233	)			(507	)			(3,306	)
Restructuring, acquisition-related, and other charges			13,969				4,351				1,596				15,565				5,454
Income taxes7			55,613				(5,789	)			(593	)			55,020				(9,939	)
Non-GAAP net income		$	33,339			$	21,267			$	19,604			$	52,943			$	37,696
Non-GAAP earnings per diluted share		$	0.31			$	0.20			$	0.18			$	0.49			$	0.36
Non-GAAP diluted number of shares8:
Diluted shares			107,485				132,045				107,378				107,431				105,860
Dilutive effect of convertible debt			—				(25,938	)			—				—				—
Non-GAAP diluted number of shares			107,485				106,107				107,378				107,431				105,860
Adjusted EBITDA reconciliation9:
GAAP net income (loss)		$	9,346			$	12,493			$	(3,220	)		$	6,126			$	18,731
Net income (loss) from discontinued operations			183,464				(9,069	)			2,046			$	185,510			$	(18,559	)
Add back items:
Income tax provision (benefit)			61,498				(2,829	)			2,865				64,363				(4,306	)
Interest expense			18,572				20,871				20,004				38,576				42,559
Amortization of definite-lived intangibles			11,079				12,447				11,620				22,699				30,452
Gain on sales of the Mobility business unit			(248,863	)			—				—				(248,863	)			—
Depreciation expense			28,871				41,235				42,632				71,503				82,837
Stock-based compensation			2,647				3,602				4,835				7,482				7,528
(Gain) on sale of assets			(274	)			(235	)			(233	)			(507	)			(3,306	)
Restructuring, acquisition-related, and other charges			13,969				4,351				1,596				15,565				5,454
Adjusted EBITDA		$	80,309			$	82,866			$	82,145			$	162,454			$	161,390
Adjusted EBITDA margin			13.4	%			13.1	%			13.4	%			13.4	%			12.9	%
Free cash flow reconciliation, including Mobility:
Operating cash flow			118,996				86,123				27,913				146,909				123,047
Capital expenditures, net			(22,370	)			(34,741	)			(32,451	)			(54,821	)			(63,187	)
Free cash flow		$	96,626			$	51,382			$	(4,538	)		$	92,088			$	59,860

Select Non-GAAP income statement data

 

TTM Consolidated		Q1-19A				Q2-19A				Q3-19A				Q4-19A				FY 2019A				Q1-20A				Q2-20A
Sales			620.2				633.0				716.8				719.3				2,689.3				610.8				601.1
Gross Profit			90.6				86.4				106.0				126.8				409.7				88.3				107.2
Gross Margin			14.6	%			13.6	%			14.8	%			17.6	%			15.2	%			14.5	%			17.8	%
Op Income			40.5				37.2				54.0				72.4				204.1				35.7				54.7
Operating Margin			6.5	%			5.9	%			7.5	%			10.1	%			7.6	%			5.8	%			9.1	%
EBITDA			78.5				82.9				103.5				111.3				376.2				82.1				80.3
EBITDA %			12.7	%			13.1	%			14.4	%			15.5	%			14.0	%			13.4	%			13.4	%
Mobility		Q1-19A				Q2-19A				Q3-19A				Q4-19A				FY 2019A				Q1-20A				Q2-20A
Sales			83.8				106.1				182.6				183.5				556.0				113.2				30.8
Gross Profit			(10.1	)			(8.2	)			18.6				24.3				24.5				4.7				2.4
Gross Margin			-12.1	%			-7.8	%			10.2	%			13.2	%			4.4	%			4.2	%			7.8	%
Op Income			(11.9	)			(10.3	)			15.9				21.0				14.7				2.1				1.1
Operating Margin			-14.2	%			-9.7	%			8.7	%			11.4	%			2.6	%			1.9	%			3.6	%
EBITDA			6.0				9.2				36.9				38.5				90.6				21.9				3.8
EBITDA %			7.2	%			8.7	%			20.2	%			21.0	%			16.3	%			19.3	%			12.3	%
SZ + SH-EMS		Q1-19A				Q2-19A				Q3-19A				Q4-19A				FY 2019A				Q1-20A				Q2-20A
Sales			36.0				40.9				54.5				29.8				161.2				14.2				21.4
Gross Profit			3.0				3.4				5.2				2.3				13.9				(2.4	)			(0.3	)
Gross Margin			8.3	%			8.3	%			9.5	%			7.7	%			8.6	%			-16.7	%			-1.4	%
Op Income			2.0				1.2				4.3				2.0				9.5				(3.8	)			(0.8	)
Operating Margin			5.6	%			2.9	%			7.9	%			6.7	%			5.9	%			-26.8	%			-3.8	%
EBITDA			2.5				3.1				7.1				2.0				14.7				(3.6	)			0.1
EBITDA %			6.9	%			7.6	%			13.0	%			6.7	%			9.1	%			-25.4	%			0.4	%
TTM Proforma Excluding Mobility, SZ & SH-EMS		Q1-19A				Q2-19A				Q3-19A				Q4-19A				FY 2019A				Q1-20A				Q2-20A
Sales			500.4				486.0				479.7				506.0				1,972.1				483.4				548.9
Gross Profit			97.7				91.2				82.2				100.1				371.2				86.0				105.6
Gross Margin			19.5	%			18.8	%			17.1	%			19.8	%			18.8	%			17.8	%			19.2	%
Op Income			52.2				46.2				33.8				49.4				179.8				37.7				54.4
OM			10.4	%			9.5	%			7.0	%			9.8	%			9.1	%			7.8	%			9.9	%
EBITDA			70.0				70.6				59.5				70.5				270.5				63.5				76.4
EBITDA %			14.0	%			14.5	%			12.4	%			13.9	%			13.7	%			13.1	%			13.9	%

 

1

This information provides a reconciliation of non-GAAP balance sheet data to the financial information in our consolidated condensed balance sheet and non-GAAP revenue, 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	Excludes the estimated gain on sale of Mobility.

 

3	Non-GAAP revenue includes revenue from discontinued operations.

 

4	Non-GAAP gross profit and gross margin measures include discontinued operations and exclude amortization of intangibles, accelerated depreciation due to the closure of two EM-Solutions plants, and stock-based compensation expense.

 

5

Non-GAAP operating income and operating margin measures include discontinued operations and exclude amortization of intangibles, accelerated depreciation due to the closure of two EM-Solutions plants, stock-based compensation expense, gain on sale of assets, acquisition-related costs, restructuring and other charges.

 

6

This information provides non-GAAP net income and non-GAAP EPS, which are non-GAAP financial measures. Management believes that both measures—which include discontinued operations and add back amortization of intangibles, accelerated depreciation due to the closure of two EM-Solutions plants, stock-based compensation expense, non-cash interest expense on debt (before consideration of capitalized interest), gain on sale of assets, 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.

 

7	Income tax adjustments reflect the difference between income taxes based on a non-GAAP tax rate and a forecasted annual GAAP tax rate.

 

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

 

9

Adjusted EBITDA is defined as earnings, including discontinued operations, before interest expense, income taxes, depreciation, amortization of intangibles, stock-based compensation expense, gain on sale of assets, 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.