TTM Technologies, Inc. Reports First Quarter 2013 Results COSTA MESA, Calif., May 2, 2013 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (Nasdaq:TTMI), a major global printed circuit board (PCB) manufacturer, today reported results for the first quarter of 2013, which ended April 1, 2013. First Quarter 2013 Highlights *Net sales were $325.4 million *GAAP net income attributable to stockholders was $5.2 million, or $0.06 per diluted share *Non-GAAP net income attributable to stockholders was $10.7 million, or $0.13 per diluted share *Gross margin was 15.6 percent First Quarter 2013 Financial Results Net sales for the first quarter decreased 14.8 percent to $325.4 million from $381.7 million in the fourth quarter. GAAP operating income for the first quarter was $12.7 million compared to operating income of $20.7 million in the fourth quarter. GAAP net income attributable to stockholders for the first quarter was $5.2 million, or $0.06 per diluted share, compared to net income attributable to stockholders of $13.7 million, or $0.17 per diluted share, for the fourth quarter. On a non-GAAP basis, net income attributable to stockholders for the first quarter was $10.7 million, or $0.13 per diluted share. This compares to non-GAAP net income attributable to stockholders of $18.6 million, or $0.23 per diluted share, for the fourth quarter. EBITDA for the first quarter was $39.1 million, or 12.0 percent of net sales, compared to EBITDA of $49.6 million, or 13.0 percent of net sales, for the fourth quarter. "Our results for the first quarter for both Asia Pacific and North America were in line with our expectations," said Kent Alder, CEO of TTM. "While we experienced normal seasonality during the quarter, we were pleased to realize a year-over-year increase in revenue due to increased sales in our cellular phone and networking end markets. We were also encouraged to see an improvement in the aerospace and defense end market both sequentially and year-over-year, despite current defense budget challenges." "We remain confident in our strategy to address our served markets and in our growth prospects for our advanced technology PCBs. Looking towards the second half of the year, we are becoming more positive about the business climate and we believe TTM is well positioned for an improving demand environment," concluded Alder. Business Outlook For the second quarter of 2013, TTM estimates revenue will be in the range of $320 million to $340 million, GAAP earnings attributable to stockholders in a range from $0.01 to $0.07 per diluted share and non-GAAP earnings attributable to stockholders in a range from $0.08 to $0.14 per diluted share. To Access the Live Webcast/Conference Call The company will host a conference call and webcast to discuss the first quarter 2013 results and the second quarter 2013 outlook on Thursday, May 2, 2013, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). Telephone access is available by dialing domestic 1-888-549-7750 or international 1-480-629-9643. 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 May 9, 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, general market and economic conditions, including interest rates, currency exchange rates and consumer spending, demand for the company's products, changing trends in the markets the company serves, market pressures on prices of the company's products, changes in product mix, the company's ability to consummate the DMC and SYE transactions and realize the expected capacity utilization and margin benefits therefrom, contemplated significant capital expenditures and related financing requirements, the company's dependence upon a small number of customers, the unpredictability of and potential fluctuation in future revenues and operating results, competition in the labor markets in which the company operates, 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. - Tables Follow - TTM TECHNOLOGIES, INC. Selected Unaudited Financial Information (In thousands, except per share data) First Quarter Fourth Quarter 2013 2012 2012 CONSOLIDATED STATEMENTS OF OPERATIONS Net sales $325,392 $300,499 $381,735 Cost of goods sold 274,662 244,021 320,221 Gross profit 50,730 56,478 61,514 Operating expenses: Selling and marketing 9,190 8,622 9,592 General and administrative 26,558 22,135 28,682 Amortization of 2,328 3,916 2,515 definite-lived intangibles Total operating expenses 38,076 34,673 40,789 Operating income 12,654 21,805 20,725 Interest expense (6,278) (6,417) (6,558) Other, net 1,001 1,587 2,440 Income before income taxes 7,377 16,975 16,607 Income tax provision (784) (4,643) (4,926) Net income 6,593 12,332 11,681 Net (income) loss attributable to (1,441) 263 2,061 noncontrolling interest Net income attributable to $5,152 $12,595 $13,742 stockholders Earnings per share attributable to stockholders: Basic $0.06 $0.15 $0.17 Diluted $0.06 $0.15 $0.17 Weighted average common shares: Basic 82,150 81,413 81,932 Diluted 82,842 82,228 82,613 SELECTED BALANCE SHEET DATA April 1, 2013 December 31, 2012 Cash and cash equivalents $284,091 $285,433 Accounts and notes 295,042 301,557 receivable, net Inventories 150,621 146,012 Total current assets 760,412 765,612 Property, plant and 833,621 833,678 equipment, net Other non-current assets 76,442 77,672 Total assets $1,670,475 $1,676,962 Short-term debt, including current portion long-term $78,104 $30,004 debt Accounts payable 191,707 221,265 Total current liabilities 399,374 369,880 Debt, net of discount 481,120 527,541 Total long-term liabilities 508,170 554,252 Noncontrolling interest 100,613 98,883 Total stockholders' equity 762,931 752,830 Total liabilities and $1,670,475 $1,676,962 stockholders' equity SUPPLEMENTAL DATA First Quarter Fourth Quarter 2013 2012 2012 Gross margin 15.6% 18.8% 16.1% EBITDA margin 12.0 15.4 13.0 Operating margin 3.9 7.3 5.4 End Market Breakdown^1: First Quarter Fourth Quarter 2013 2012 2012 Aerospace/Defense 16% 17% 13% Cellular Phone 17 11 21 Computing/Storage/Peripherals 19 24 24 Medical/Industrial/Instrumentation 8 10 7 Networking/Communications 34 32 30 Other 6 6 5 Stock-based Compensation: First Quarter Fourth Quarter 2013 2012 2012 Amount included in: Cost of goods sold $303 $311 $265 Selling and marketing 362 114 124 General and administrative 1,665 1,780 2,432 Total stock-based compensation expense $2,330 $2,205 $2,821 Operating Segment Data: First Quarter Fourth Quarter Net sales: 2013 2012 2012 Asia Pacific $202,583 $171,758 $259,378 North America 123,589 130,024 123,232 Total sales 326,172 301,782 382,610 Inter-segment sales (780) (1,283) (875) Total net sales $325,392 $300,499 $381,735 Operating segment income: Asia Pacific $11,125 $12,825 $17,644 North America 3,857 12,896 5,596 Total operating segment income 14,982 25,721 23,240 Amortization of definite-lived (2,328) (3,916) (2,515) intangibles Total operating income 12,654 21,805 20,725 Total other expense (5,277) (4,830) (4,118) Income before income taxes $7,377 $16,975 $16,607 RECONCILIATIONS^2 First Quarter Fourth Quarter 2013 2012 2012 EBITDA reconciliation^3: Net income $6,593 $12,332 $11,681 Add back items: Income tax provision 784 4,643 4,926 Interest expense 6,278 6,417 6,558 Amortization of definite-lived 2,328 3,945 2,515 intangibles Depreciation expense 23,137 19,064 23,962 EBITDA $39,120 $46,401 $49,642 Non-GAAP EPS reconciliation^4: GAAP net income attributable to $5,152 $12,595 $13,742 stockholders Add back items: Amortization of definite-lived 2,328 3,945 2,515 intangibles Stock-based compensation 2,330 2,205 2,821 Non-cash interest expense 2,055 1,955 2,016 Income tax effects (1,208) (1,945) (2,447) Non-GAAP net income $10,657 $18,755 $18,647 attributable to stockholders Non-GAAP earnings per diluted share attributable to $0.13 $0.23 $0.23 stockholders ^1 Certain reclassifications of prior year end market percentages have been made to conform to the current year presentation.Beginning in the first quarter of 2013, we reclassified substrate PCBs, which were included in the Other end market, into the end markets that the substrate PCBs are sold into - predominantly Cellular Phone. ^2 This information provides a reconciliation of EBITDA, non-GAAP net income attributable to stockholders and non-GAAP EPS attributable to stockholders to the financial information in our consolidated statements of operations. ^3 EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization. We present 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 EBITDA because we believe that investors and securities analysts will find 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 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. ^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 and non-cash interest expense on debt (before consideration of capitalized interest) 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: Todd Schull, CFO 714-327-3000 TTM Technologies
TTM Technologies, Inc. Reports First Quarter 2013 Results
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