TTM Technologies Inc. Reports Fourth Quarter and Full Year 2005 Results
SANTA ANA, CA - February 8, 2006 - TTM Technologies, Inc. (Nasdaq: TTMI),
a leading manufacturer of time-critical and technologically advanced printed circuit
boards, today reported results for the fourth quarter of 2005.
Fourth quarter 2005 net sales increased $2.1 million, or 4 percent, to $63.1 million
from $61.0 million in the third quarter of 2005 and increased $3.9 million, or 7
percent, from $59.2 million in the fourth quarter of 2004. The sequential increase,
from the third quarter of 2005, resulted from favorable pricing and demand trends.
Quick-turn business represented 22 percent of net sales in the fourth quarter of
2005, compared to 21 percent for both the third quarter of 2005 and the fourth quarter
Gross margin of 23.8 percent for the fourth quarter of 2005 increased from 23.2
percent in the third quarter of 2005 but decreased from 24.6 percent for the fourth
quarter of 2004.
General and administrative expense of $3.1 million in the fourth quarter of 2005
decreased from $5.2 million in the third quarter of 2005 and $3.3 million in the
year-ago period. G&A expense in the third quarter of 2005 included a $2.0 million
accrual related to an agreement in principle to resolve a customer dispute concerning
goods shipped in 2002 and 2003.
TTM posted an operating profit of $8.8 million for the fourth quarter of 2005, up
from $5.9 million for the third quarter of 2005 and $8.2 million for the fourth
quarter of 2004.
Net income for the fourth quarter of 2005 was $19.0 million, or $0.46 per diluted
share, compared with $4.1 million, or $0.10 per diluted share, for the third quarter
of 2005 and $6.8 million, or $0.16 per diluted share, for the fourth quarter of
2004. Based on the company's consistent, strong earnings performance, TTM reduced
its deferred income tax asset valuation allowance, thereby recording a reduction
in its income tax expense, in the fourth quarters of 2004 and 2005. Earnings per
diluted share included $0.31 and $0.02, respectively, in the fourth quarter of 2005
and the fourth quarter of 2004 due to the reversal of the valuation allowance. Net
income for the third quarter of 2005 included a $1.2 million, or $0.03 per diluted
share, accrual for the resolution of a customer dispute.
EBITDA (earnings before interest, taxes, depreciation and amortization) for the
fourth quarter of 2005 was $12.5 million, an increase from $9.1 million for the
third quarter of 2005 and $11.0 million for the fourth quarter of 2004.
In the fourth quarter of 2005, TTM generated cash flow from operations of $12.6
million, enabling the company to fund net capital expenditures of $1.6 million while
expanding its cash and short-term investments by $11.2 million to a total of $82.4
"Market conditions were solid in the fourth quarter, with favorable pricing and
demand trends," said Kent Alder, President and CEO of TTM Technologies. "Based on
our successful time and technology strategy, we continue to expand our customer
base and post industry-leading profitability."
Net sales for 2005 were essentially flat at $240.2 million, compared to $240.7 million
for 2004. Net income increased to $30.8 million, or $0.74 per diluted share, in
2005, compared to $28.3 million, or $0.68 per diluted share, in 2004. The reversal
of the deferred income tax asset valuation allowance accounted for $12.7 million,
or $0.31 per diluted share, of TTM's 2005 net income and $1.2 million, or $0.03
per diluted share, of TTM's 2004 net income. "Despite pricing pressure, start-up
costs associated with the Chippewa Falls expansion and higher Sarbanes Oxley costs
at the beginning of the year, we were pleased with our performance for 2005," said
Outlook "We enter 2006 optimistic about the favorable market conditions and TTM's
ability to execute our strategy, gain market share, and deliver superior returns,"
concluded Alder. For the first quarter of 2006, TTM is estimating revenues of $67
million to $71 million and earnings of $0.16 to $0.20 per diluted share. The company
expects to record approximately $300,000 in stock-based compensation cost in the
first quarter of 2006 due to the adoption of FAS 123R.
TTM Technologies, Inc. is a leading supplier of time-critical and technologically
advanced printed circuit boards to original equipment manufacturers and electronics
manufacturing services companies. 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.
The company will conduct a conference call to discuss its fourth-quarter performance
and outlook today at 4:30 p.m. Eastern/1:30 p.m. Pacific time. The call will be
simulcast and available for replay until Wednesday, February 15, on the company's
Web site, www.ttmtech.com.
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 company's dependence upon a small number of customers, general economic conditions
and specific conditions in the markets TTM addresses, the unpredictability of and
potential fluctuation in future revenues and operating results, increased competition
from low-cost foreign manufacturers, and other "Risk Factors" set forth in the company's
most recent SEC filings.
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TTM Technologies, Inc. Reports
Fourth Quarter 2005 Results
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
Statements in this press release regarding TTM Technologies' business which are
not historical facts are "forward-looking statements" that involve risks and uncertainties.
For a discussion of such risks and uncertainties, which could cause actual results
to differ from those contained in the forward-looking statements, see "Risk Factors"
in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.