TTM Technologies, Inc. Reports Third Quarter 2013 Results

TTM Technologies, Inc. Reports Third Quarter 2013 Results

COSTA MESA, Calif., Oct. 30, 2013 (GLOBE NEWSWIRE) -- TTM Technologies, Inc.
(Nasdaq:TTMI), a major global printed circuit board (PCB) manufacturer, today
reported results for the third quarter of 2013, which ended September 30,
2013.

Third Quarter 2013 Highlights

  *Net sales were $338.7 million
  *GAAP net loss attributable to stockholders was $7.7 million, or $0.09 per
    share
  *Non-GAAP net income attributable to stockholders was $11.6 million, or
    $0.14 per diluted share
  *A warranty claim of $6.0 million negatively impacted both revenue and
    profit and reduced EPS by $0.06 per diluted share

Third Quarter 2013 Financial Results

Net sales for the third quarter of 2013 were $338.7 million compared to $338.0
million in the second quarter of 2013 and $339.0 million in the third quarter
of 2012.

GAAP operating loss for the third quarter of 2013 was $1.2 million compared to
operating income of $28.3 million in the second quarter of 2013 and an
operating loss of $202.7 million in the third quarter of 2012.

During the third quarter of 2013, the company recorded an additional charge of
$6 million, or $0.06 per diluted share, for warranty claims associated with a
specific product quality issue originally identified in the second quarter of
2013. The charge recorded in the third quarter includes the Company's best
estimate of all remaining costs expected to be incurred related to this
matter.

Also included in operating results for the third quarter of 2013, were charges
of $14.1 million for severance and asset impairments resulting from the
closure of TTM's facility in Suzhou, China (MAS).Excluding these charges,
operating income would have been $13.0 million.

GAAP net loss attributable to stockholders for the third quarter of 2013 was
$7.7 million, or $0.09 per share.This compares to GAAP net income
attributable to stockholders of $13.1 million, or $0.16 per diluted share, in
the second quarter of 2013 and a net loss of $208.3 million, or $2.54 per
share, in the third quarter of 2012.

On a non-GAAP basis, net income attributable to stockholders for the third
quarter of 2013 was $11.6 million, or $0.14 per diluted share.This compares
to non-GAAP net income attributable to stockholders of $7.7 million, or $0.09
per diluted share, for the second quarter of 2013 and $17.3 million, or $0.21
per diluted share, for the third quarter of 2012.

Adjusted EBITDA for the third quarter of 2013 was $42.3 million, or 12.5
percent of net sales, compared to adjusted EBITDA of $39.1 million, or 11.6
percent of net sales, for the second quarter of 2013 and $44.5 million, or
13.1 percent of net sales, for the third quarter of 2012.

During the third quarter, the cash settlement was completed for the
transaction in which TTM sold its controlling equity interest in the SYE plant
and acquired the remaining equity interest in the DMC plant. TTM received $80
million net from this transaction.

"Our third quarter revenue and non-GAAP earnings were within our guidance
range for the quarter," said Kent Alder, CEO of TTM. "We were pleased with the
robust sequential increase in sales in our cellular phone and computing end
markets which was driven by strong seasonal demand for our advanced technology
PCBs used in smartphones and tablets."

"Offsetting some of the positive business trends we experienced during the
quarter, were higher costs incurred relating to a warranty claim, which
negatively impacted our operating results.As we enter the fourth quarter, we
are focused on executing our revenue ramp and driving efficiencies to improve
our bottom line results," concluded Mr. Alder.

Business Outlook

For the fourth quarter of 2013, TTM estimates that revenue will be in the
range of $350 million to $370 million, and non-GAAP earnings attributable to
stockholders in the range of $0.18 to $0.24 per diluted share.

To Access the Live Webcast/Conference Call

The Company will host a conference call and webcast to discuss the third
quarter 2013 results and the fourth quarter 2013 outlook on Wednesday, October
30, 2013, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time).

Telephone access is available by dialing domestic 1-877-941-9205 or
international 1-480-629-9818.The conference call also will be webcast on TTM
Technologies' website at www.ttmtech.com.

To Access a Replay of the Webcast

The replay of the webcast will remain accessible for one week following the
live event 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. The Company presents
non-GAAP financial information to enable investors to see the company through
the eyes of management and to provide better insight into the Company's
ongoing financial performance.

Management believes that the non-GAAP financial information – which add back
amortization of intangibles, stock-based compensation expense, non-cash
interest expense on debt, asset impairments, restructuring and other unusual
or infrequent items (such as the gain realized on the SYE transaction) as well
as the associated tax impact of these items – provides 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 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.

                              - Tables Follow -

TTM TECHNOLOGIES, INC.
Selected Unaudited Financial Information
(In thousands, except per share data)
                                                             
                                                             
               Third Quarter             Second     First Three Quarters
                                          Quarter
               2013         2012         2013       2013         2012
                                                             
CONSOLIDATED STATEMENTS OF                                     
OPERATIONS
                                                             
Net sales       $338,691   $339,011   $338,021 $1,002,104 $966,933
Cost of goods   290,252     286,695     289,564   854,478     803,448
sold
                                                             
Gross profit    48,439      52,316      48,457    147,626     163,485
                                                             
Operating                                                     
expenses:
Selling and     8,865       8,735       9,559     27,614      26,365
marketing
General and     24,293      23,735      26,141    76,992      69,323
administrative
Amortization of
definite-lived  2,329       4,104       2,327     6,984       12,122
intangibles
Restructuring   3,357       -          -        3,357       -
charges
Impairment of
long-lived      10,782      18,082      -        10,782      18,082
assets
Impairment of
goodwill and    -          200,335     -        -          200,335
definite-lived
intangibles
Gain on sale of -          -          (17,917)  (17,917)    -
assets
Total operating 49,626      254,991     20,110    107,812     326,227
expenses
                                                             
Operating       (1,187)     (202,675)   28,347    39,814      (162,742)
income (loss)
                                                             
Interest        (5,848)     (6,429)     (5,923)   (18,049)    (19,226)
expense
Loss on
extinguishment  -          (5,527)     -        -           (5,527)
of debt
Other, net      2,692       1,117       633       4,326       2,516
                                                             
Income (loss)
before income   (4,343)     (213,514)   23,057    26,091      (184,979)
taxes
Income tax
(provision)     (3,365)     850         (9,345)   (13,494)    (7,802)
benefit
                                                             
Net income      (7,708)     (212,664)   13,712    12,597      (192,781)
(loss)
                                                             
Net (income)
loss
attributable to -          4,322       (575)     (2,016)     4,444
noncontrolling
interest
Net income
(loss)          $(7,708)   $(208,342) $13,137  $10,581    $(188,337)
attributable to
stockholders
                                                             
Earnings (loss) per share
attributable to                                                
stockholders:
Basic           $(0.09)    $(2.54)    $0.16    $0.13      $(2.30)
Diluted         $(0.09)    $(2.54)    $0.16    $0.13      $(2.30)
                                                             
Weighted
average common                                                
shares:
Basic           82,630      81,929      82,595    82,458      81,752
Diluted         82,630      81,929      82,975    83,025      81,752
                                                             
                                                             
SELECTED
BALANCE SHEET                                                 
DATA
               September    December 31,                       
                30, 2013     2012
Cash and cash   $270,534   $285,433                         
equivalents
Accounts and
notes           267,313     301,509                           
receivable, net
Inventories     145,109     146,012                           
Total current   718,955     765,612                           
assets
Property, plant
and equipment,  806,906     833,678                           
net
Other
non-current     67,603      77,672                            
assets
Total assets    $1,593,464 $1,676,962                       
                                                             
Short-term
debt, including $96,204    $30,004                          
current portion
long-term debt
Accounts        216,250     186,745                           
payable
Total current   452,141     369,880                           
liabilities
Debt, net of    436,485     527,541                           
discount
Total long-term 476,498     554,252                           
liabilities
Noncontrolling  -          98,883                            
interest
Total
stockholders'   664,825     752,830                           
equity
Total
liabilities and $1,593,464 $1,676,962                       
stockholders'
equity
                                                             

SUPPLEMENTAL DATA                                                         
                                  Third Quarter           Second     First Three
                                                           Quarter    Quarters
                                  2013       2012         2013       2013    2012
Gross margin                       14.3%    15.4%      14.3%    14.7% 16.9%
Operating margin                   (0.4)     (59.8)      8.4       4.0    (16.8)
                                                                         
End Market Breakdown^1:                                                   
                                  Third Quarter           Second            
                                                           Quarter
                                  2013       2012         2013              
                                                                         
Aerospace/Defense                  16%        16%          16%               
Cellular Phone                     21        18          17               
Computing/Storage/Peripherals      19        21          16               
Medical/Industrial/Instrumentation 9         9           8                
Networking/Communications          30        29          38               
Other                              5         7           5                
                                                                         
Stock-based Compensation:                                                 
                                  Third Quarter           Second            
                                                           Quarter
                                  2013       2012         2013              
Amount included in:                                                       
Cost of goods sold                 $252     $253       $254            
Selling and marketing              304       115         335              
General and administrative         1,275     2,089       1,994            
Total stock-based compensation     $1,831   $2,457     $2,583          
expense
                                                                         
                                                                         
Operating Segment Data:                                                   
                                  Third Quarter           Second            
                                                           Quarter
Net sales:                       2013       2012         2013              
Asia Pacific                     $206,460 $215,746   $209,631        
North America                    132,608   123,861     129,669          
Total sales                      339,068   339,607     339,300          
Inter-segment sales              (377)     (596)       (1,279)          
Total net sales                  $338,691 $339,011   $338,021        
                                                                         
Operating segment income:                                               
Asia Pacific                     $(7,313) $(206,806) $23,642         
North America                    8,455     8,235       7,032            
Total operating segment income    1,142     (198,571)   30,674           
(loss)
Amortization of definite-lived    (2,329)   (4,104)     (2,327)          
intangibles
Total operating income (loss)    (1,187)   (202,675)   28,347           
Total other expense              (3,156)   (10,839)    (5,290)          
Income (loss) before income       $(4,343) $(213,514) $23,057         
taxes
                                                                         

RECONCILIATIONS^2                                             
                   Third Quarter            Second    First Three Quarters
                                             Quarter
                   2013        2012         2013      2013       2012
Non-GAAP gross
profit                                                        
reconciliation^3:
GAAP gross profit   $48,439   $52,316    $48,457 $147,626 $163,485
Add back item:                                                
Amortization of
definite-lived      -         -          -       -        47
intangibles
Stock-based         252        253         254      809       829
compensation
Non-GAAP gross      $48,691   $52,569    $48,711 $148,435 $164,361
profit
Non-GAAP gross      14.4%      15.5%       14.4%    14.8%     17.0%
margin
                                                             
Non-GAAP operating income                                      
reconciliation^4:
GAAP operating      $(1,187)  $(202,675) $28,347 $39,814  $(162,742)
income (loss)
Add back items:                                               
Amortization of
definite-lived      2,329      4,104       2,327    6,984     12,169
intangibles
Stock-based         1,831      2,457       2,583    6,744     7,445
compensation
Gain on sale of     -         -          (17,917) (17,917)  -
assets
Impairments and
restructuring       14,139     218,417     -       14,139    218,417
charges
Non-GAAP operating  $17,112   $22,303    $15,340 $49,764  $75,289
income
Non-GAAP operating  5.1%       6.6%        4.5%     5.0%      7.8%
margin
                                                             
Non-GAAP net income
and EPS
attributable to                                               
stockholders
reconciliation^5:
GAAP net income
(loss) attributable $(7,708)  $(208,342) $13,137 $10,581  $(188,337)
to stockholders
Add back items:                                               
Amortization of
definite-lived      2,329      4,104       2,327    6,984     12,169
intangibles
Stock-based         1,831      2,457       2,583    6,744     7,445
compensation
Non-cash interest   2,134      1,977       2,094    6,283     5,877
expense
Gain on sale of     -         -          (17,917) (17,917)  -
assets
Impairments,
restructuring and   14,139     223,944     -       14,139    223,944
other charges
Income taxes^6      (1,080)    (6,799)     5,480    2,320     (10,652)
Non-GAAP net income
attributable to     $11,645   $17,341    $7,704  $29,134  $50,446
stockholders
Non-GAAP earnings
per diluted share   $0.14     $0.21      $0.09   $0.35    $0.61
attributable to
stockholders
                                                             
Adjusted EBITDA                                               
reconciliation^7:
GAAP net income     $(7,708)  $(212,664) $13,712 $12,597  $(192,781)
(loss)
Add back items:                                               
Income tax          3,365      (850)       9,345    13,494    7,802
provision (benefit)
Interest expense    5,848      6,429       5,923    18,049    19,226
Amortization of
definite-lived      2,329      4,104       2,327    6,984     12,169
intangibles
Depreciation        22,527     21,046      23,118   68,782    60,324
expense
Stock-based         1,831      2,457       2,583    6,744     7,445
compensation
Gain on sale of     -         -          (17,917) (17,917)  -
assets
Impairments,
restructuring and   14,139     223,944     -       14,139    223,944
other charges
Adjusted EBITDA     $42,331   $44,466    $39,091 $122,872 $138,129
Adjusted EBITDA     12.5%      13.1%       11.6%    12.3%     14.3%
margin
                                                             
                                                             
^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 non-GAAP gross profit,
non-GAAP operating income, non-GAAP net income attributable to stockholders,
non-GAAP EPS attributable to stockholders, and adjusted EBITDA to the
financial information in our consolidated statements of operations.
                                                             
^3 Non-GAAP gross profit and gross margin measures exclude amortization of
intangibles and stock-based compensation expense.
                                                             
^4 Non-GAAP operating income and operating margin measures exclude
amortization of intangibles, stock-based compensation expense, gain on sale of
assets, and restructuring and impairment charges.
                                                             
^5 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), gain
on sale of assets, and restructuring and impairment charges as well as the
associated tax impact of these charges and discrete tax items --- provide
additional useful information to investors regarding the Company's ongoing
financial condition and results of operations.
                                                             
^6 Previously, the adjustment reported represented the tax effect of other
non-GAAP adjustments. We have changed the definition such that the amount now
represents the adjustment necessary to remove the effect of discrete tax items
as well as the tax effect of the other non-GAAP adjustments shown in the
table.All prior periods have been changed to conform to this methodology.
                                                             
^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, restructuring and impairment 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.

CONTACT: Todd Schull, CFO
         714-327-3000

TTM Technologies
 
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