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TTM Technologies Inc. Reports 2008 Fourth Quarter and Year End Results

for immediate release

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 our success."

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 Assembly.

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 share.

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.

Balance Sheet
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 15.

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 or 800-240-4186.

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.

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TTM Technologies, Inc. Reports Fourth Quarter 2008 and End Year Results

 

 

Company

TTM Technologies
(ticker: TTMI, exchange: NASDAQ)

Release Info

News Release:
02/10/2009

Contact

Steve Richards
Chief Financial Officer 714/241-0303