TTM Technologies, Inc. Reports First Quarter 2013 Results

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
 
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