TTM Technologies Inc. Reports 2008 Fourth Quarter and Year End Results
Santa Ana, CA -February 10, 2009 - TTM Technologies, Inc. (Nasdaq: TTMI),
North America's largest printed circuit board (PCB) manufacturer, today reported
results for the fourth quarter of 2008, ended December 31, 2008.
Fourth Quarter 2008 Financial & Operational Highlights
- TTM demonstrated strong free cash flow, increasing cash and cash equivalents and
short-term investments by $17.1 million in the fourth quarter for a quarter-ending
balance of $152.1 million.
- Net sales of $164.9 million exceeded guidance. Gross margin of 18.6 percent and
earnings per diluted share of $0.18, excluding impairment charges of $123.3 million
or $1.78 per diluted share, net of tax, were at the high end of guidance.
Fourth Quarter 2008 Financial Results
Kent Alder, President and CEO of TTM, noted, "We are pleased with our results for
the fourth quarter. Although global macroeconomic conditions remain challenging,
the Company's highly focused strategy enabled us to continue our trend of delivering
solid financial performance from our business. We generated significant cash during
the quarter, and the Aerospace/Defense end market was again a significant part of
Fourth quarter net sales of $164.9 million decreased $4.1 million, or 2.4 percent,
from third quarter net sales of $169.0 million.
Fourth quarter gross margin of 18.6 percent declined from third quarter gross margin
of 19.0 percent.
In the fourth quarter, TTM conducted a review of its goodwill, long-lived and intangible
assets for potential impairment. Due to the current economic downturn and a significant
decline in the Company's market capitalization, TTM recorded significant non-cash
impairment charges of $123.3 million related to its goodwill and fixed assets in
the fourth quarter. The charges reduced goodwill by $117.0 million and fixed assets
by $6.3 million. The Company noted that the non-cash impairment charges do not affect
its cash balance, liquidity, operating cash flow or the terms of the Company's debt.
As a result of these charges, TTM posted a fourth quarter operating loss of $108.9
million. Fourth quarter operating income, excluding impairment charges, was $14.5
million compared with third quarter operating income of $15.5 million.
Fourth quarter net loss was $68.5 million, or $1.60 per basic share. Excluding impairment
charges, fourth quarter net income was $7.6 million, or $0.18 per diluted share,
a decline from third quarter net income of $9.5 million, or $0.22 per diluted share.
EBITDA (earnings before interest, taxes, depreciation and amortization) was negative
$102.7 million for the fourth quarter. Excluding impairment charges, adjusted EBITDA
for the fourth quarter was $20.7 million, or 12.5 percent of net sales, compared
with third quarter EBITDA of $22.2 million, or 13.1 percent of net sales. (A reconciliation
of this non-GAAP measure is provided after the GAAP financial statements accompanying
this press release.)
Fourth Quarter Segment Information
TTM Technologies reports two operating segments: PCB Manufacturing and Backplane
For the PCB Manufacturing segment, fourth quarter net sales (before inter-company
sales) were $144.2 million, compared with $148.0 million in the third quarter. Fourth
quarter operating segment loss (before amortization of intangibles) was $107.5 million
due to a fixed asset and goodwill impairment charge of $120.6 million. Excluding
this charge, fourth quarter operating income (before amortization of intangibles)
for the PCB Manufacturing segment was $13.1 million compared with operating income
of $14.3 million in the third quarter.
For the Backplane Assembly segment, fourth quarter net sales (before inter-company
sales) were $31.1 million, compared with $29.3 million in the third quarter. Fourth
quarter operating segment loss (before amortization of intangibles) was $0.4 million
due to a fixed asset impairment charge of $2.7 million. Excluding this charge, fourth
quarter operating income (before amortization of intangibles) for the Backplane
Assembly segment was $2.3 million compared with operating income of $2.1 million
in the third quarter.
Full Year 2008 Financial Results
Net sales of $681.0 million for the full year 2008 increased $11.5 million, or 1.7
percent, from full year 2007 net sales of $669.5 million.
For 2008, TTM recorded a net loss of $35.3 million, or $0.83 per basic share. Excluding
impairment charges, full year 2008 net income was $40.9 million, or $0.95 per diluted
share, compared with full year 2007 net income of $34.7 million, or $0.81 per diluted
The Company noted that financial results for the fourth quarter and full year 2008
may be subject to change pending the resolution of certain accounting matters relating
to the impairment of assets. Should results for the fourth quarter or the full year
change from those established in this press release, the Company expects that revised
numbers would be issued when it files its Annual Report on Form 10-K on or about
March 16, 2009.
Cash and cash equivalents and short-term investments at the end of the fourth quarter
totaled $152.1 million, an increase of $17.1 million from $135.0 million at the
end of the third quarter.
First Quarter Fiscal Year 2009 Forecast
For the first quarter of 2009, TTM estimates revenues in a range from $146 million
to $154 million and earnings in a range from $0.01 to $0.06 per diluted share.
TTM expects to record a restructuring charge of approximately $2.8 million, or about
$0.04 per diluted share, in the first quarter of 2009 related to the closure of
the Redmond, Washington, facility as well as other layoffs announced on January
The Company noted that effective January 1, the accounting rules governing convertible
debt changed. As a result, TTM will record interest expense of approximately $2.7
million on its $175 million convertible debt balance in the first quarter of 2009.
The non-cash portion of this interest expense will be $1.3 million, or about $0.02
per diluted share.
To Access the Live Webcast/Conference Call
The company will host a conference call to discuss the fourth quarter results and
the first quarter 2009 outlook on February 10, 2009, at 4:30 p.m. Eastern Standard
Time (1:30 p.m. Pacific Standard Time).
To listen to the live webcast, log on to the TTM Technologies website at
http://www.ttmtech.com. To access the live conference call, dial 303-262-2141
To Access a Replay of the Webcast
A digital replay will be available on TTM Technologies' website at
http://www.ttmtech.com and will remain accessible for one week following
the live event.
A telephone replay also will be available beginning two hours after the conclusion
of the conference call until February 12, 2009. You may access the telephone replay
by dialing 303-590-3000 or 800-405-2236 and entering confirmation code 11125737#.
TTM Technologies, Inc. is North America's largest 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 http://www.ttmtech.com.
"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.
- Tables Follow -
TTM Technologies, Inc. Reports Fourth Quarter
2008 and End Year Results