TTM Technologies, Inc. Reports Fourth Quarter and Fiscal Year 2012 Results

TTM Technologies, Inc. Reports Fourth Quarter and Fiscal Year 2012 Results

COSTA MESA, Calif., Feb. 5, 2013 (GLOBE NEWSWIRE) -- TTM Technologies, Inc.
(Nasdaq:TTMI), a major global printed circuit board (PCB) manufacturer, today
reported results for the fourth quarter and fiscal year 2012, which ended
December 31, 2012.

Fourth Quarter 2012 Highlights

  - Net sales were $382.4 million

  - GAAP net income attributable to stockholders was $15.7 million, or $0.19
  per diluted share

  - Non-GAAP net income attributable to stockholders was $21.5 million, or
  $0.26 per diluted share

  - Gross margin was 16.3 percent

Fiscal Year 2012 Highlights

  - Net sales were $1.3 billion

  - GAAP net loss attributable to stockholders was $172.6 million, or $2.11
  per share

  - Excluding the goodwill and asset impairment charges recorded in 2012,
  GAAP net income attributable to stockholders was $43.2 million, or $0.52 per
  diluted share

  - Non-GAAP net income attributable to stockholders was $72.0 million, or
  $0.87 per diluted share

  - Gross margin was 16.7 percent

Fourth Quarter 2012 Financial Results

Net sales for the fourth quarter increased 12.8 percent to $382.4 million from
$339.0 million in the third quarter.

GAAP operating income for the fourth quarter was $21.4 million compared to
operating loss of $202.7 million in the third quarter.

Included in operating results for the third quarter of 2012 were non-cash
charges of $218.4 million to write down goodwill, customer-related intangibles
and property, plant and equipment.Excluding these charges, operating income
for the third quarter of 2012 was $15.7 million.

GAAP net income attributable to stockholders for the fourth quarter was $15.7
million, or $0.19 per diluted share, compared to net loss attributable to
stockholders of $208.3 million, or $2.54 per share, for the third quarter.
Fourth quarter net income attributable to stockholders includes a $3.3
million, or $0.04 per diluted share, tax valuation adjustment to
noncontrolling interest. Net income attributable to stockholders, excluding
the impairment charges, was $7.5 million, or $0.09 per diluted share, for the
third quarter.

On a non-GAAP basis, net income attributable to stockholders for the fourth
quarter was $21.5 million, or $0.26 per diluted share.This compares to
non-GAAP net income attributable to stockholders of $18.1 million, or $0.22
per diluted share, for the third quarter.

Adjusted EBITDA for the fourth quarter was $50.3 million, or 13.2 percent of
net sales, compared to adjusted EBITDA of $36.5 million, or 10.8 percent of
net sales, for the third quarter.

"We were pleased to close 2012 with strong financial and operational
performance in the fourth quarter," said Kent Alder, CEO of TTM. "We
experienced broad-based demand for our advanced HDI PCBs across multiple end
markets, particularly for smartphones and touchpad tablets.The product mix
shift toward more advanced HDI PCBs drove higher gross margin and operating
profit, resulting in stronger earnings for the quarter."

Full Year 2012 Financial Results

Net sales for fiscal year 2012 decreased to $1.3 billion from $1.4 billion in
fiscal year 2011.

Operating loss for fiscal year 2012 was $141.4 million, a decrease from
operating income of $91.1 million in fiscal year 2011. Included in operating
results were non-cash goodwill and asset impairment charges of $218.4 million
in 2012 and $63.3 million in 2011. Excluding these charges, operating income
for fiscal year 2012 was $77.0 million compared to operating income of $154.4
million in 2011. The year over year decline in operating income primarily
reflects higher labor costs in Asia and lower capacity utilization.

GAAP net loss attributable to stockholders for fiscal year 2012 was $172.6
million, or $2.11 per share, compared to GAAP net income of $41.9 million, or
$0.51 per diluted share, for fiscal year 2011. Net income attributable to
stockholders for fiscal year 2012 includes the noncontrolling interest
adjustment discussed above. GAAP net income attributable to stockholders,
excluding the impairment charges, was $43.2 million, or $0.52 per diluted
share, for fiscal year 2012. GAAP net income attributable to stockholders,
excluding the impairment charges, was $100.4 million, or $1.23 per diluted
share, for fiscal year 2011.

On a non-GAAP basis, net income attributable to stockholders for fiscal year
2012 was $72.0 million, or $0.87 per diluted share. This compares to fiscal
year 2011 non-GAAP net income attributable to stockholders of $126.5 million,
or $1.54 per diluted share.

Adjusted EBITDA for fiscal year 2012 was $175.5 million, or 13.0 percent of
net sales, compared to $250.2 million, or 17.5 percent of net sales, for
fiscal year 2011.

"While the global macroeconomic challenges weighed on the demand environment
for much of 2012, we significantly expanded our advanced HDI business during
the year to meet future demand.We are confident that advanced technology PCBs
provide our strongest growth prospect, and we are well positioned to
capitalize on these opportunities as our customers' end markets recover,"
continued Alder.

"Looking ahead to the first quarter, we expect a normal seasonal decline in
our business. Longer term, we remain optimistic as we are clearly
differentiated through our focus on leading edge technology, our diversified
end markets, and our broad customer base," concluded Alder.

Business Outlook

For the first quarter of 2013, TTM estimates revenue will be in the range of
$310 million to $330 million, GAAP earnings attributable to stockholders in a
range from breakeven to $0.05 per diluted share and non-GAAP earnings
attributable to stockholders in a range from $0.07 to $0.12 per diluted
share.

To Access the Live Webcast/Conference Call

The company will host a conference call and webcast to discuss the fourth
quarter and fiscal year 2012 results and the first quarter 2013 outlook on
Tuesday, February 5, 2013, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time).

Telephone access is available by dialing domestic 1-888-549-7880 or
international 1-480-629-9770. The conference call also will be webcast on TTM
Technologies' website at www.ttmtech.com.

To Access a Replay of the Webcast

The webcast will be available for replay until February 12, 2013, on TTM
Technologies' website at www.ttmtech.com.

About Our Non-GAAP Financial Measures

This release includes 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.

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,
contemplated significant capital expenditures and related financing
requirements, the Company's ability to integrate and manage its Asia Pacific
operations, the company's dependence upon a small number of customers, the
unpredictability of and potential fluctuation in future revenues and operating
results and other "Risk Factors" set forth in the company's most recent SEC
filings.

About TTM

TTM Technologies, Inc. is a major global 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.


TTM TECHNOLOGIES, INC.
Selected Unaudited Financial Information
(In thousands, except per share data)
                                                          
                                                                         
              Fourth Quarter        Third        Full Year
                                     Quarter
              2012       2011       2012         2012         2011
                                                          
CONSOLIDATED
STATEMENTS OF                                              
OPERATIONS
Net sales                                                  
Cost of goods  $382,393 $361,460 $339,011   $1,349,326 $1,428,639
sold
              320,221   290,082   286,695     1,123,669   1,127,326
                                                          
Gross profit   62,172    71,378    52,316      225,657     301,313
                                                          
Operating                                                  
expenses:
Selling and    9,592     9,867     8,735       35,957      36,891
marketing
General and    28,682    24,178    23,735      98,005      92,682
administrative
Amortization
of             2,515     4,517     4,104       14,637      17,311
definite-lived
intangibles
Impairment of
goodwill and   --       15,184    200,335     200,335     15,184
definite-lived
intangibles
Impairment of
long-lived     --       --       18,082      18,082      48,125
assets
Total
operating      40,789    53,746    254,991     367,016     210,193
expenses
                                                          
Operating      21,383    17,632    (202,675)   (141,359)   91,120
income (loss)
                                                          
Interest       (6,558)   (6,795)   (6,429)     (25,784)    (26,504)
expense
Loss on
extinguishment --       --       (5,527)     (5,527)     --
of debt
Other, net     2,440     2,851     1,117       4,956       8,616
                                                          
Income (loss)
before income  17,265    13,688    (213,514)   (167,714)   73,232
taxes
Income tax
(provision)    (3,584)   (1,328)   850         (11,386)    (26,005)
benefit
                                                          
Net income     13,681    12,360    (212,664)   (179,100)   47,227
(loss)
                                                          
Net loss
(income)
attributable   2,062     (1,190)   4,322       6,506       (5,359)
to
noncontrolling
interest
Net income
(loss)
attributable   $15,743  $11,170  $(208,342) $(172,594) $41,868
to
stockholders
                                                          
Earnings
(loss) per
share                                                      
attributable
to
stockholders:
Basic          $0.19    $0.14    $(2.54)    $(2.11)    $0.52
Diluted        $0.19    $0.14    $(2.54)    $(2.11)    $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 December 31, 2011
Cash and cash equivalents                  $285,433        $196,052
Accounts and notes receivable, net         302,215          316,568
Inventories                                146,012          129,430
Total current assets                       765,151          671,534
Property, plant and equipment, net         833,389          766,800
Other non-current assets                   77,673           310,735
Total assets                               $1,676,213      $1,749,069
                                                           
Short-term debt, including current portion $30,004         $120,882
long-term debt
Accounts payable                           221,265          185,906
Total current liabilities                  370,172          437,140
Debt, net of discount                      527,541          368,518
Total long-term liabilities                551,210          389,259
Noncontrolling interest                    98,883           113,753
Total stockholders' equity                 754,831          922,670
Total liabilities and stockholders' equity $1,676,213      $1,749,069

                                                                         
SUPPLEMENTAL DATA                                                                 
                                  Fourth Quarter        Third        Full Year
                                                         Quarter
                                  2012       2011       2012         2012    2011
Gross margin                       16.3%      19.7%      15.4%        16.7%   21.1%
Adjusted EBITDA margin             13.2      16.6      10.8        13.0   17.5
Operating margin                   5.6       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     $2,821   $2,143   $2,457            
expense
                                                                         
                                                                         
Operating Segment Data:                                                   
                                                                          
                                  Fourth Quarter        Third               
                                                         Quarter
Net sales:                       2012       2011       2012                
Asia Pacific                     $259,378 $218,448 $215,746          
North America                    123,890   144,079   123,861            
Total sales                      383,268   362,527   339,607            
Inter-segment sales              (875)     (1,067)   (596)              
Total net sales                  $382,393 $361,460 $339,011          
                                                                         
Operating segment income (loss):                                        
Asia Pacific                     $17,644  $20,094  $(206,806)        
North America                    6,254     2,055     8,235              
Total operating segment income    23,898    22,149    (198,571)          
(loss)
Amortization of definite-lived    (2,515)   (4,517)   (4,104)            
intangibles
Total operating income (loss)    21,383    17,632    (202,675)          
Total other expense              (4,118)   (3,944)   (10,839)           
Income (loss) before income       $17,265  $13,688  $(213,514)        
taxes

                                                               
RECONCILIATIONS^1                                               
                                                    
                   Fourth Quarter       Third Quarter Full Year
                   2012       2011      2012          2012         2011
Adjusted EBITDA                                                 
reconciliation^2:
Net income (loss)   $13,681  $ 12,360 $(212,664)  $(179,100) $47,227
Add back items:                                                 
Income tax          3,584     1,328    (850)        11,386      26,005
provision
Interest expense    6,558     6,795    6,429        25,784      26,504
Amortization of
definite-lived      2,515     4,546    4,104        14,684      17,427
intangibles
Depreciation        23,962    19,946   21,046       84,286      69,698
expense
EBITDA              $50,300  $ 44,975 $(181,935)  $(42,960)  $186,861
                                                               
Add back: Asset     --       15,184   218,417      218,417     63,309
impairments
Adjusted EBITDA     $50,300  $ 60,159 $36,482     $175,457   $250,170
                                                               
GAAP EPS excluding
impairments                                                     
reconciliation^3:
GAAP net income
(loss) attributable $15,743  $ 11,170 $(208,342)  $(172,594) $41,868
to stockholders
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,        $15,743  $ 22,296 $7,501      $43,249    $100,413
attributable to
stockholders
                                                               
GAAP earnings per
diluted share,
excluding           $0.19    $0.27   $0.09       $0.52      $1.23
impairments,
attributable to
stockholders
                                                               
Non-GAAP EPS                                                    
reconciliation^4:
GAAP net income
(loss) attributable $15,743  $ 11,170 $(208,342)  $(172,594) $41,868
to stockholders
Add back items:                                                 
Amortization of
definite-lived      2,515     4,546    4,104        14,684      17,427
intangibles
Stock-based         2,821     2,143    2,457        10,266      8,075
compensation
Non-cash interest   2,016     1,947    1,977        7,893       8,163
expense
Impairments,
restructuring and   --       15,184   223,944      223,944     63,309
other charges
Income tax effects  (1,550)   (5,666)  (6,045)      (12,172)    (12,379)
Non-GAAP net income
attributable to     $21,545  $ 29,324 $18,095     $72,021    $126,463
stockholders
                                                               
Non-GAAP earnings
per diluted share   $0.26    $0.36   $0.22       $0.87      $1.54
attributable to
stockholders
                                                               
                                                               
^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.

CONTACT: Steve Richards, CFO
         714-327-3000

TTM Technologies
 
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