EXHIBIT 99.1
TTM Technologies, Inc. Reports 2009 Second Quarter Results
SANTA ANA, Calif., July 29, 2009 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (Nasdaq:TTMI), North America's largest printed circuit board (PCB) manufacturer, today reported results for the second quarter of 2009, ended June 29, 2009.
Second Quarter 2009 Financial and Operational Highlights
* Second quarter net income on a GAAP basis increased to $5.9
million, or $0.14 per diluted share, from $1.4 million, or $0.03
per diluted share, in the first quarter.
* Gross margin increased to 18.7 percent in the second quarter from
16.3 percent in the first quarter.
* Cash and short-term investments increased by $25.2 million during
the second quarter to $189.4 million.
Second Quarter 2009 Financial Results -- GAAP
Second quarter net sales of $144.5 million decreased $4.5 million, or 3.0 percent, from first quarter net sales of $149.0 million.
Operating income for the second quarter was $12.2 million compared to operating income of $5.0 million for the first quarter. Excluding asset impairment and restructuring charges, operating income for the first quarter was $7.8 million.
Net income for the second quarter was $5.9 million, or $0.14 per diluted share, compared to first quarter net income of $1.4 million, or $0.03 per diluted share.
"In this challenging economic environment, TTM delivered improved earnings in a quarter when revenue declined slightly and we generated $25.2 million in cash," said Kent Alder, President and CEO of TTM. "The rate of decline in revenues decreased in the second quarter, which is a positive and encouraging sign. But, more importantly, the structural and operational improvements that we have made as well as our ongoing focus on cost control improved our margins over the prior quarter and strengthened the company for the future," Alder said.
Second Quarter 2009 Financial Results -- Non-GAAP
Non-GAAP results exclude stock-based compensation expense, amortization of intangibles, restructuring and asset impairment charges, non-cash interest expense and the income tax effects related to these expenses.
Second quarter non-GAAP net income was $8.3 million, or $0.19 per diluted share. This compares to first quarter non-GAAP net income of $5.5 million, or $0.13 per diluted share.
Excluding asset impairment charges, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the second quarter was $18.3 million, or 12.6 percent of net sales, compared with first quarter adjusted EBITDA of $11.1 million, or 7.5 percent of net sales.
A reconciliation of the Company's non-GAAP financial measures is provided after the GAAP financial statements accompanying this press release.
Second Quarter Segment Information
TTM Technologies reports two operating segments: PCB Manufacturing and Backplane Assembly.
For the PCB Manufacturing segment, second quarter net sales (before inter-company sales) were $122.6 million, compared with $132.3 million in the first quarter. Second quarter operating segment income (before amortization of intangibles) was $10.7 million, compared with operating segment income (before amortization of intangibles) of $4.4 million in the first quarter.
For the Backplane Assembly segment, second quarter net sales (before inter-company sales) were $29.1 million, compared with $24.9 million in the first quarter. Second quarter operating segment income (before amortization of intangibles) was $2.3 million, compared with first quarter operating segment income (before amortization of intangibles) of $1.5 million.
Balance Sheet
Cash and cash equivalents and short-term investments at the end of the second quarter totaled $189.4 million, an increase of $25.2 million from $164.2 million at the end of the first quarter.
Third Quarter Fiscal Year 2009 Forecast
For the third quarter of 2009, TTM estimates revenue in a range of $134 million to $142 million and GAAP earnings in a range from $0.09 to $0.15 per diluted share.
TTM estimates non-GAAP earnings in a range from $0.14 to $0.20 per diluted share.
To Access the Live Webcast/Conference Call
The company will host a conference call to discuss the second quarter results and the third quarter 2009 outlook on July 29, 2009, at 4:30 p.m. Eastern Daylight Time (1:30 p.m. Pacific Daylight Time).
To listen to the live webcast, log on to the TTM Technologies website at http://www.ttmtech.com. To access the live conference call, dial 1-877-941-8412 or 1-480-629-9804.
To Access a Replay of the Webcast
A digital replay will be available on TTM Technologies' website at http://www.ttmtech.com and will remain accessible for one week following the live event.
A telephone replay also will be available beginning two hours after the conclusion of the conference call until July 31, 2009. You may access the telephone replay by dialing 1-800-406-7325 or 1-303-590-3030 and entering confirmation code 4117262#.
About Our Non-GAAP Financial Measures
This release includes information about the Company's non-GAAP adjusted net income and non-GAAP adjusted net income per share, which are non-GAAP financial measures. Management believes that both measures -- which exclude amortization of intangibles, stock-based compensation expense, non-cash interest expense on our convertible debt, asset impairment charges and restructuring 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. In addition, the Company's internal reporting, including information provided to the Company's Audit Committee and Board of Directors, contains non-GAAP measures.
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 with 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.
Safe Harbor Statement
This release contains forward-looking statements that relate to future events or performance. These statements reflect the company's current expectations, and the company 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 company statements will not be realized. Furthermore, readers are cautioned that these statements involve risks and uncertainties, many of which are beyond the company'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 company's dependence upon the electronics industry, the impact of the current economic crisis, the company's dependence upon a small number of customers, the unpredictability of and potential fluctuation in future revenues and operating results, increased competition from low-cost foreign manufacturers and other "Risk Factor s" set forth in the company's most recent SEC filings.
About TTM
TTM Technologies, Inc. is North America's largest printed circuit board manufacturer, focusing on quick-turn and technologically advanced PCBs and the backplane and sub-system assembly business. TTM stands for time-to-market, representing how the company'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.ttmtech.com.
The TTM Technologies logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5691
TTM TECHNOLOGIES, INC.
Selected Unaudited Financial Information
(In thousands, except per share data)
------------------ -------- ------------------
Second First First Two Fiscal
Quarter Quarter Quarters
------------------ -------- ------------------
2009 2008(1,2) 2009(2) 2009 2008(1,2)
-------- -------- -------- -------- --------
CONSOLIDATED
STATEMENTS OF
OPERATIONS
Net sales $144,480 $172,975 $148,997 $293,477 $347,046
Cost of goods sold 117,421 136,384 124,728 242,149 272,718
-------- -------- -------- -------- --------
Gross profit 27,059 36,591 24,269 51,328 74,328
-------- -------- -------- -------- --------
Operating expenses:
Selling and
marketing 6,313 7,750 7,178 13,491 15,464
General and
administrative 7,661 8,837 8,396 16,057 17,177
Amortization of
definite-lived
intangibles 860 950 860 1,720 1,897
Restructuring
charges 48 -- 2,460 2,508 --
Impairment of
long-lived assets -- -- 343 343 --
Metal reclamation -- -- -- -- (3,700)
-------- -------- -------- -------- --------
Total operating
expenses 14,882 17,537 19,237 34,119 30,838
-------- -------- -------- -------- --------
Operating income 12,177 19,054 5,032 17,209 43,490
Interest expense (2,762) (3,825) (2,715) (5,477) (5,660)
Interest income 61 302 99 160 445
Other, net 147 (1,145) (108) 39 (1,004)
-------- -------- -------- -------- --------
Income before income
taxes 9,623 14,386 2,308 11,931 37,271
Income tax provision (3,675) (5,274) (881) (4,556) (13,787)
-------- -------- -------- -------- --------
Net income $ 5,948 $ 9,112 $ 1,427 $ 7,375 $ 23,484
======== ======== ======== ======== ========
Earnings per common
share:
Basic $ 0.14 $ 0.21 $ 0.03 $ 0.17 $ 0.55
Diluted $ 0.14 $ 0.21 $ 0.03 $ 0.17 $ 0.55
Weighted average
common shares:
Basic 43,117 42,676 42,880 43,000 42,553
Diluted 43,431 43,080 43,219 43,326 42,908
SELECTED BALANCE
SHEET DATA
------------------
June 29, Dec. 31,
2009 2008(1)
-------- --------
Cash and cash
equivalents $187,939 $148,465
Short-term
investments 1,419 3,657
Accounts receivable,
net 102,320 115,232
Inventories 62,536 71,011
Total current assets 378,041 353,130
Property, plant and
equipment, net 99,895 114,931
Other non-current
assets 68,074 72,179
Total assets 546,010 540,240
Accounts payable 41,851 48,750
Total current
liabilities 66,182 72,768
Convertible senior
notes, net 137,347 134,914
Total long-term
liabilities 139,875 137,436
Stockholders' equity 339,953 330,036
Total liabilities
and stockholders'
equity 546,010 540,240
------------------
SUPPLEMENTAL DATA
------------------ -------- ------------------
Second First First Two Fiscal
Quarter Quarter Quarters
------------------ -------- ------------------
2009 2008(1,2) 2009 2009 2008(1)
-------- -------- -------- -------- --------
EBITDA $ 18,250 $ 24,458 $ 10,785 $ 29,035 $ 55,435
EBITA $ 13,285 $ 19,189 $ 5,911 $ 19,196 $ 44,886
Gross margin 18.7% 21.2% 16.3% 17.5% 21.4%
EBITDA margin 12.6 14.1 7.2 9.9 16.0
Operating margin 8.4 11.0 3.4 5.9 12.5
End Market
Breakdown:
------------------ --------
Second First
Quarter Quarter
------------------ --------
2009 2008 2009
-------- -------- --------
Networking/
Communications 36% 40% 33%
Aerospace/Defense 45 36 45
Computing/Storage/
Peripherals 10 11 12
Medical/Industrial/
Instrumentation/
Other 9 13 10
Stock-based
Compensation:
------------------ --------
Second First
Quarter Quarter
------------------ --------
2009 2008 2009
-------- -------- --------
Amount included in:
Cost of goods
sold $ 431 $ 390 $ 419
Selling and
marketing 135 118 145
General and
administrative 999 970 1,043
-------- -------- --------
Total stock-based
compensation
expense $ 1,565 $ 1,478 $ 1,607
======== ======== ========
Operating Segment
Data:
------------------ --------
Second First
Quarter Quarter
------------------ --------
Net sales: 2009 2008(1) 2009
-------- -------- --------
PCB Manufacturing $122,617 $149,596 $132,277
Backplane Assembly 29,117 31,160 24,908
-------- -------- --------
Total sales 151,734 180,756 157,185
Inter-company
sales (7,254) (7,781) (8,188)
-------- -------- --------
Total net sales $144,480 $172,975 $148,997
-------- -------- --------
Operating segment
income:
PCB Manufacturing $ 10,716 $ 17,779 $ 4,400
Backplane Assembly 2,321 2,225 1,492
-------- -------- --------
Total op segment
income 13,037 20,004 5,892
Amortization of
intangibles (860) (950) (860)
-------- -------- --------
Total op income 12,177 19,054 5,032
Total other
expense (2,554) (4,668) (2,724)
-------- -------- --------
Income before
income taxes $ 9,623 $ 14,386 $ 2,308
======== ======== ========
RECONCILIATIONS(3)
------------------ -------- ------------------
Second First First Two Fiscal
Quarter Quarter Quarters
------------------ -------- ------------------
2009 2008(1) 2009 2009 2008(1)
-------- -------- -------- -------- --------
EBITA/EBITDA
reconciliation:
Net income $ 5,948 $ 9,112 $ 1,427 $ 7,375 $ 23,484
Add back items:
Income tax
provision 3,675 5,274 881 4,556 13,787
Interest expense 2,762 3,825 2,715 5,477 5,660
Amortization of
intangibles 900 978 888 1,788 1,955
-------- -------- -------- -------- --------
EBITA 13,285 19,189 5,911 19,196 44,886
Depreciation
expense 4,965 5,269 4,874 9,839 10,549
-------- -------- -------- -------- --------
EBITDA $ 18,250 $ 24,458 $ 10,785 $ 29,035 $ 55,435
======== ======== ======== ======== ========
Add back:
Impairment of
long-lived assets -- -- 343 343 --
-------- -------- -------- -------- --------
Adjusted EBITDA $ 18,250 $ 24,458 $ 11,128 $ 29,378 $ 55,435
======== ======== ======== ======== ========
Non-GAAP EPS
reconciliation(4):
GAAP net income $ 5,948 $ 9,112 $ 1,427 $ 7,375 $ 23,484
Add back items:
Amortization of
definite-lived
intangibles 900 978 888 1,788 1,955
Stock-based
compensation 1,565 1,478 1,607 3,172 2,469
Non-cash
convertible
debt interest
expense 1,353 640 1,325 2,678 640
Impairment of
long-lived assets -- -- 343 343 --
Restructuring
charges 48 -- 2,460 2,508 --
Income tax effects (1,476) (1,135) (2,528) (4,005) (1,873)
-------- -------- -------- -------- --------
Non-GAAP net
income $ 8,338 $ 11,073 $ 5,522 $ 13,859 $ 26,675
Non-GAAP diluted
earnings per
common share $ 0.19 $ 0.26 $ 0.13 $ 0.32 $ 0.62
(1) Effective January 1, 2009, we adopted FASB Staff Position APB
14-1, "Accounting for Convertible Debt Instruments That May be Settled
in Cash Upon Conversion (Including Partial Cash Settlement)", which
changed the method of accounting for our convertible notes. In
addition, as required, we revised our previously reported financial
statements to retrospectively apply this change in accounting in prior
periods.
(2) Certain reclassifications of prior year amounts have been made
to conform to the current year presentation. Beginning in the second
quarter of 2009, the Company reports gains and losses from the sale or
disposal of property, plant and equipment as component of general and
administrative expenses in the consolidated condensed statements of
operations. Prior to the second quarter 2009, the gains and losses
from the sale or disposal of property, plant and equipment were
included as a component of cost of goods sold.
(3) This information provides a reconciliation of EBITA/EBITDA/
Adjusted EBITDA and non-GAAP EPS to the financial information in our
consolidated statements of operations.
(4) This information provides non-GAAP adjusted net income and
non-GAAP adjusted EPS, which are non-GAAP financial measures.
Management believes that both measures -- which exclude amortization
of intangibles, stock-based compensation expense, non-cash interest
expense on our convertible debt (before consideration of capitalized
interest), asset impairment charges and restructuring 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.
"EBITDA" means earnings before interest expense, income taxes,
depreciation and amortization. "EBITA" means earnings before interest
expense, income taxes and amortization. We present EBITDA / EBITA /
Adjusted EBITDA to enhance the understanding of our operating results.
EBITDA / EBITA / Adjusted EBITDA is a key measure we use to evaluate
our operations. In addition, we provide our EBITDA / EBITA / Adjusted
EBITDA because we believe that investors and securities analysts will
find EBITDA / EBITA / 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, EBITDA / EBITA / 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: TTM Technologies, Inc.
Steve Richards, Chief Financial Officer
(714) 241-0303
investor@ttmtech.com
