February 9, 2022 - EX-99.1 - 8-K: Current report filing

Exhibit 99.1


TTM Technologies, Inc., Q421				Contact:
				Sameer Desai,
				Vice President, Corporate
				Development & Investor Relations
				Sameer.desai@ttmtech.com
				714-327-3050

TTM Technologies, Inc. Reports Fiscal Fourth Quarter and 2021 Results

Santa Ana, CA February 9, 2022 TTM Technologies, Inc. (NASDAQ:TTMI), a leading global printed circuit board (PCB) and radio frequency (RF) components manufacturer, today reported results for the fourth quarter and fiscal 2021, which ended on January 3, 2022.

Fourth Quarter 2021 Highlights

Net sales were $598.1 million

GAAP net income of $8.4 million, or $0.08 per diluted share

Non-GAAP net income was $36.2 million, or $0.34 per diluted share

Operating cash flow of $62.4 million

Repurchased 2.2 million shares of common stock for $29.6 million at an average price of $13.47 per share

Fourth Quarter 2021 GAAP Financial Results

Net sales for the fourth quarter of 2021 were $598.1 million, compared to $523.8 million in the fourth quarter of 2020.

GAAP operating income for the fourth quarter of 2021 was $33.1 million. This compares to GAAP operating income of $29.2 million in the fourth quarter of 2020.

GAAP net income for the fourth quarter of 2021 was $8.4 million, or $0.08 per diluted share, compared to net income of $39.0 million, or $0.34 per diluted share in the fourth quarter of 2020.

Fourth Quarter 2021 Non-GAAP Financial Results

On a non-GAAP basis, net income for the fourth quarter of 2021 was $36.2 million, or $0.34 per diluted share. This compares to non-GAAP net income of $40.2 million, or $0.37 per diluted share, for the fourth quarter of 2020.

Adjusted EBITDA in the fourth quarter of 2021 was $70.4 million, or 11.8 percent of net sales, compared to adjusted EBITDA of $68.2 million, or 13.0% percent of net sales, for the fourth quarter of 2020.

In the fourth quarter, TTM achieved revenues above the high end of guidance and non-GAAP earnings at the high end of the guided range. This outperformance was driven by strength in all of our commercial end markets, despite labor and production challenges in North America and tight supply conditions globally for certain raw materials, said Tom Edman, CEO of TTM.

Full Year 2021 Financial Results¹

Net sales for fiscal year 2021 increased to $2.25 billion from $2.11 billion from continuing operations in fiscal year 2020, a 6.8% increase. Excluding the two E-MS facilities that were closed at the end of 2020, our revenues grew 10.9% for the year.

GAAP operating income for fiscal year 2021 was $126.0 million, an increase from GAAP operating income of $28.1 million from continuing operations in fiscal year 2020.

¹	In 2020, we completed the sale of the Mobility business so we are comparing 2021 results to 2020 continuing operations, which excludes the Mobility business. The E-MS business is still included in 2020 continuing operations.


TTM Technologies, Inc., Q421				Contact:
				Sameer Desai,
				Vice President, Corporate
				Development & Investor Relations
				Sameer.desai@ttmtech.com
				714-327-3050

GAAP net income for fiscal year 2021 was $54.4 million, or $0.50 per diluted share, compared to GAAP net loss of $16.4 million from continuing operations, or ($0.15) per diluted share, for fiscal year 2020.

On a non-GAAP basis, net income for fiscal year 2021 was $138.0 million, or $1.28 per diluted share. This compares to fiscal year 2020 non-GAAP net income of $116.7 million from continuing operations, or $1.10 per diluted share.

Adjusted EBITDA for fiscal year 2021 was $275.6 million, or 12.3 percent of net sales, compared to $272.3 million from continuing operations, or 12.9 percent of net sales, for fiscal year 2020. Cash flow from operations for fiscal year 2021 was $176.6 million.

Despite the headwinds from materials and labor inflation and availability, COVID-19 and the strengthening Chinese currency, we delivered solid results in 2021 with revenues growing 10.9% year on year excluding divested businesses, continued Edman. Also in 2021, we generated $176.6 million in operating cash flow which enabled us to strengthen our balance sheet and return capital to our shareholders. For the year we repurchased 4.7 million shares for $64.6 million on our $100 million stock buyback program.

Business Outlook

In the first quarter, we are seeing continued labor challenges along with normal seasonality associated with Chinese New Year and one less week in the quarter compared to the fourth quarter.

Taking these factors into consideration, TTM estimates that revenue for the first quarter of 2022 will be in the range of $540 million to $580 million, and non-GAAP net income will be in the range of $0.20 to $0.26 per diluted share.

Live Webcast/Conference Call

TTM will host a conference call and webcast to discuss fourth quarter 2021 results and the first quarter 2022 outlook on Wednesday, February 9th, 2022 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 888-394-8218 or international 323-794-2588 (ID 1667874). The conference call also will be webcast on TTMs 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 TTMs 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 TTMs 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.


TTM Technologies, Inc., Q421				Contact:
				Sameer Desai,
				Vice President, Corporate
				Development & Investor Relations
				Sameer.desai@ttmtech.com
				714-327-3050

Forward-Looking Statements

The preliminary financial results included in this press release represent the most current information available to management. The companys actual results when disclosed in its Form 10-K may differ from these preliminary results as a result of the completion of the companys financial closing procedures; final adjustments; completion of the review by the companys independent registered accounting firm; and other developments that may arise between now and the disclosure of the final results. 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 TTMs 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 TTMs 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 TTMs products, market pressures on prices of TTMs products, warranty claims, changes in product mix, contemplated significant capital expenditures and related financing requirements, TTMs dependence upon a small number of customers and other factors set forth in the Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations sections of the Companys public reports filed with the SEC.

About Our Non-GAAP Financial Measures

This release includes information about TTMs 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 TTMs 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 Companys 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 managements 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)
	Fourth Quarter						Full Year
	2021			2020			2021			2020
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Net sales	$	598,141		$	523,802		$	2,248,740		$	2,105,322
Cost of goods sold		500,819			435,829			1,876,729			1,746,299

Gross profit		97,322			87,973			372,011			359,023

Operating expenses:
Selling and marketing		16,271			15,849			63,016			63,882
General and administrative		33,790			26,831			124,865			122,477
Research and development		5,071			4,604			18,146			19,770
Amortization of definite-lived intangibles		8,911			9,589			35,748			38,838
Restructuring charges		211			1,934			4,245			16,764
Impairment of goodwill											69,200

Total operating expenses		64,254			58,807			246,020			330,931

Operating income		33,068			29,166			125,991			28,092
Interest expense		(11,860	)		(14,599	)		(45,475	)		(73,156	)
Loss on extinguishment of debt								(15,217	)
Other, net		(584	)		(1,854	)		4,754			(1,213	)

Income (loss) from continuing operations before income taxes		20,624			12,713			70,053			(46,277	)
Income tax (provision) benefit		(12,237	)		26,247			(15,639	)		29,891

Net income (loss) from continuing operations		8,387			38,960			54,414			(16,386	)
Income from discontinued operations, net of income taxes											193,921

Net income	$	8,387		$	38,960		$	54,414		$	177,535

Earnings (loss) per share:
Basic earnings (loss) per share from continuing operations	$	0.08		$	0.36		$	0.51		$	(0.15	)
Basic earnings per share from discontinued operations											1.82

Basic earnings per share	$	0.08		$	0.36		$	0.51		$	1.67

Diluted earnings (loss) per share from continuing operations	$	0.08		$	0.34		$	0.50		$	(0.15	)
Diluted earnings per share from discontinued operations											1.82

Diluted earnings per share	$	0.08		$	0.34		$	0.50		$	1.67

Weighted-average shares used in computing per share amounts:
Basic		104,186			106,755			106,314			106,366
Diluted		105,769			113,513			108,153			106,366
Reconciliation of the denominator used to calculate basic earnings per share and diluted earnings per share:
Weighted-average shares outstanding		104,186			106,755			106,314
Dilutive effect of convertible debt					5,193
Dilutive effect of warrants								200
Dilutive effect of performance-based stock units, restricted stock units & stock options		1,583			1,565			1,639

Diluted shares		105,769			113,513			108,153

SELECTED BALANCE SHEET DATA


	January 3, 2022		December 28, 2020
Cash and cash equivalents, including restricted cash	$	537,678	$	451,565
Accounts and notes receivable, net		386,347		381,105
Contract assets		324,862		273,256
Inventories		127,612		115,651
Total current assets		1,407,413		1,248,758
Property, plant and equipment, net		665,755		650,435
Operating lease right of use asset		20,802		24,340
Other non-current assets		931,577		972,411
Total assets		3,025,547		2,895,944
Accounts payable	$	361,484	$	327,102
Total current liabilities		558,148		518,046
Debt, net of discount		927,818		842,853
Total long-term liabilities		1,011,982		933,889
Total equity		1,455,417		1,444,009
Total liabilities and equity		3,025,547		2,895,944

SUPPLEMENTAL DATA


	Fourth Quarter						Full Year
	2021			2020			2021			2020
Gross margin		16.3	%		16.8	%		16.5	%		17.1	%
Operating margin		5.5	%		5.6	%		5.6	%		1.3	%

End Market Breakdown, excludes Mobility:


	Fourth Quarter
	2021			2020
Aerospace/Defense		30	%		36	%
Automotive		19	%		21	%
Data Center Computing		15	%		13	%
Medical/Industrial/Instrumentation		19	%		15	%
Networking/Communications		16	%		15	%
Other		1	%		0	%

Stock-based Compensation:


	Fourth Quarter
	2021		2020
Amount included in:
Cost of goods sold	$	1,404	$	1,246
Selling and marketing		721		620
General and administrative		2,806		2,211
Research and development		277		35

Total stock-based compensation expense	$	5,208	$	4,112

Operating Segment Data:


	Fourth Quarter
Net sales:	2021			2020
PCB	$	581,817		$	488,762
RF&S Components		16,324			11,382
Other¹					23,658

Total net sales	$	598,141		$	523,802

Operating segment income:
PCB	$	70,731		$	63,188
RF&S Components		6,906			3,209
Corporate & Other¹		(34,168	)		(26,258	)

Total operating segment income		43,469			40,139
Amortization of definite-lived intangibles		(10,401	)		(10,973	)

Total operating income		33,068			29,166
Total other expense		(12,444	)		(16,453	)

Income from continuing operations before income taxes	$	20,624		$	12,713

RECONCILIATIONS²


	Fourth Quarter						Full Year
	2021			2020			2021			2020
Non-GAAP gross profit reconciliation³:
GAAP gross profit from continuing operations	$	97,322		$	87,973		$	372,011		$	359,023
Add back item:
Amortization of definite-lived intangibles		1,490			1,384			5,641			5,535
Accelerated depreciation					899						5,835
Stock-based compensation		1,404			1,246			4,714			3,889
Unrealized gain on commodity hedge		(362	)					(297	)
Restructuring and other charges		7						261

Non-GAAP gross profit	$	99,861		$	91,502		$	382,330		$	374,282

Non-GAAP gross margin		16.7	%		17.5	%		17.0	%		17.8	%
Non-GAAP operating income reconciliation⁴:
GAAP operating income from continuing operations	$	33,068		$	29,166		$	125,991		$	28,092
Add back items:
Amortization of definite-lived intangibles		10,401			10,973			41,389			44,373
Accelerated depreciation					1,057						6,751
Stock-based compensation		5,208			4,112			17,711			16,073
(Gain) on sale of assets					(97	)		(421	)		(97	)
Unrealized gain on commodity hedge		(362	)					(297	)
Impairments, restructuring, acquisition-related and other charges		800			2,098			5,350			86,237

Non-GAAP operating income	$	49,115		$	47,309		$	189,723		$	181,429

Non-GAAP operating margin		8.2	%		9.0	%		8.4	%		8.6	%
Non-GAAP net income and EPS reconciliation⁵:
GAAP net income (loss) from continuing operations	$	8,387		$	38,960		$	54,414		$	(16,386	)
Add back items:
Amortization of definite-lived intangibles		10,401			10,973			41,389			44,373
Accelerated depreciation					1,057						6,751
Stock-based compensation		5,208			4,112			17,711			16,073
Non-cash interest expense		496			2,962			2,109			17,451
(Gain) on sale of assets					(119	)		(991	)		(825	)
Change in fair value of warrant liabilities		(373	)					(4,241	)
Loss on extinguishment of debt								15,217
Unrealized gain on commodity hedge		(362	)					(297	)
Impairments, restructuring, acquisition-related and other charges		800			2,098			5,350			86,237
Income taxes⁶		11,636			(19,800	)		7,373			(36,988	)

Non-GAAP net income	$	36,193		$	40,243		$	138,034		$	116,686

Non-GAAP earnings per diluted share	$	0.34		$	0.37		$	1.28		$	1.10


Non-GAAP diluted number of shares:
GAAP diluted number of shares		105,769			113,513			108,153			106,366
Dilutive effect of convertible debt					(5,193	)

Non-GAAP diluted number of shares		105,769			108,320			108,153			106,366

Adjusted EBITDA reconciliation⁷:
GAAP net income (loss) from continuing operations	$	8,387		$	38,960		$	54,414		$	(16,386	)
Add back items:
Income tax provision (benefit)		12,237			(26,247	)		15,639			(29,891	)
Interest expense		11,860			14,599			45,475			73,156
Amortization of definite-lived intangibles		10,401			10,973			41,389			44,373
Depreciation expense		22,231			23,775			85,942			99,572
Stock-based compensation		5,208			4,112			17,711			16,073
(Gain) on sale of assets					(119	)		(991	)		(825	)
Change in fair value of warrant liabilities		(373	)					(4,241	)
Loss on extinguishment of debt								15,217
Unrealized gain on commodity hedge		(362	)					(297	)
Impairments, restructuring, acquisition-related and other charges		800			2,098			5,350			86,237

Adjusted EBITDA	$	70,389		$	68,151		$	275,608		$	272,309

Adjusted EBITDA margin		11.8	%		13.0	%		12.3	%		12.9	%
Free cash flow reconciliation⁸:
Operating cash flow	$	62,369		$	55,491		$	176,632		$	247,714
Capital expenditures, net		(19,455	)		(18,663	)		(80,524	)		(93,001	)

Free cash flow	$	42,914		$	36,828		$	96,108		$	154,713

¹	Other represents the Shanghai E-MS and Shenzhen plant results.

²	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.

³	Non-GAAP gross profit and gross margin measures exclude amortization of intangibles, accelerated depreciation, stock-based compensation expense, unrealized gain on commodity hedge, restructuring and other charges.

⁴	Non-GAAP operating income and operating margin measures exclude amortization of intangibles, accelerated depreciation, stock-based compensation expense, gain on sale of assets, unrealized gain on commodity hedge, impairment of goodwill, restructuring, acquisition-related costs, and other charges.

⁵

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, accelerated depreciation, stock-based compensation expense, non-cash interest expense on debt (before consideration of capitalized interest), gain on sale of assets, change in fair value of warrant liabilities, loss on extinguishment of debt, unrealized gain on commodity hedge, impairment of goodwill, restructuring, acquisition-related costs, 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 Companys ongoing financial condition and results of operations.

⁶	Income tax adjustments reflect the difference between income taxes based on a non-GAAP tax rate and a forecasted annual GAAP tax rate.

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, change in fair value of warrant liabilities, loss on extinguishment of debt, unrealized gain on commodity hedge, impairment of goodwill, restructuring, acquisition-related costs, 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.

⁸	Free Cash Flow in 2020 has been restated to exclude the Mobility business which was sold in Q2 of 2020.

Form: 8-K

Documents