TTM Technologies, Inc. Reports 2010 First Quarter Results
1Q 2010 Earnings presentation
SANTA ANA, CA - May 6, 2010 - TTM Technologies, Inc. (Nasdaq: TTMI), a major
global printed circuit board (PCB) manufacturer, today reported results for the
first quarter of 2010, ended March 29, 2010.
- Completed business combination with Meadville Holdings Limited's PCB business, creating
one of the largest PCB manufacturers in the world with pro forma 2009 annual revenue
of $1.2 billion.
- Gross margin in the first quarter 2010 expanded to 19.5 percent from 18.5 percent
in the fourth quarter 2009.
- TTM’s average panel price and book to bill improved quarter over quarter as North
American PCB demand strengthened.
First Quarter 2010 Financial Results - GAAP
"TTM’s first quarter marks a milestone in our transformation to a stronger, world
class leader in PCB manufacturing," said Kent Alder, President and CEO of TTM. "With
the completion of the Meadville acquisition, and a restructuring that has better
matched our North American footprint to demand, we are now well-positioned to foster
future growth in the U.S. and abroad."
First quarter net sales of $138.2 million decreased $11.7 million, or 7.8 percent,
from fourth quarter net sales of $149.9 million. The decline in net sales was due
primarily to the closure of the Los Angeles, California facility in the fourth quarter
as well as the acceleration of order deliveries from the first quarter into the
fourth quarter to meet customer requests.
First quarter operating income of $9.9 million was an improvement over fourth quarter
operating income of $6.6 million. TTM recorded $2.8 million and $6.8 million in
charges related to previously announced plant closures, impairment of long-lived
assets and the Meadville Holdings transaction in the first quarter 2010 and fourth
quarter 2009, respectively. Net income for the first quarter was $4.5 million, or
$0.10 per diluted share, compared to net income in the fourth quarter of $2.4 million,
or $0.05 per diluted share.
"With demand improving, and with the restructuring activities we began in 2009 largely
completed, we expect to see improving revenue and profitability in the second quarter
from our U.S. business," Alder said.
First Quarter 2010 Financial Results - Non-GAAP
Non-GAAP results for the fourth quarter exclude amortization of intangibles, stock-based
compensation expense, non-cash interest expense, asset impairment and restructuring
charges, inventory write-down, costs related to the Meadville Holdings transaction
and miscellaneous closing costs as well as the income tax effects related to these
First quarter 2010 non-GAAP net income was $8.6 million, or $0.19 per diluted share.
This compares to fourth quarter 2009 non-GAAP net income of $8.3 million, or $0.19
per diluted share.
Excluding asset impairment charges, adjusted EBITDA (earnings before interest, income
taxes, depreciation and amortization) for the first quarter was $15.1 million, or
10.9 percent of net sales, compared to fourth quarter adjusted EBITDA of $14.7 million,
or 9.8 percent of net sales.
First Quarter 2010 Segment Information
TTM Technologies reports two operating segments: PCB Manufacturing and Backplane
For the PCB Manufacturing segment, first quarter 2010 net sales (before inter-company
sales) were $122.9 million, compared with $128.2 million in the fourth quarter 2009.
First quarter operating segment income (before amortization of intangibles) was
$10.5 million compared to operating segment income of $5.1 million in the fourth
quarter. Excluding charges related to plant closure, impairment of long-lived assets
and transaction costs, first quarter operating income (before amortization of intangibles)
for the PCB Manufacturing segment would have been $12.9 million for the first quarter
compared to fourth quarter operating segment income of $11.8 million.
For the Backplane Assembly segment, first quarter net sales (before inter-company
sales) were $21.7 million, compared with $29.3 million in the fourth quarter. First
quarter operating segment income (before amortization of intangibles) was $0.2 million
compared to operating segment income of $2.4 million in the fourth quarter. Excluding
charges related to plant closure, first quarter operating income (before amortization
of intangibles) for the Backplane Assembly segment would have been $0.5 million
compared to fourth quarter operating segment income of $2.5 million. The decline
in operating income in the Backplane Assembly segment is due primarily to the closure
of the Hayward, California facility.
Cash and cash equivalents, restricted cash and short-term investments at the end
of the first quarter totaled $222.9 million, an increase of $7.2 million from $215.7
million at the end of the fourth quarter.
Second Quarter 2010 Forecast
For the second quarter of 2010, TTM estimates revenue will more than double in a
range from $290 million to $310 million, GAAP earnings in a range from $0.03 to
$0.12 per diluted share and non-GAAP earnings in a range from $0.16 to $0.25 per
diluted share, as a result of incorporating Meadville Holdings’ results beginning
April 9, 2010. TTM issued 36.3 million shares as part of the Meadville purchase
price. As a result, diluted share count for the second quarter will be approximately
76.5 million shares.
To Access the Live Webcast/Conference Call
The company will host a conference call and webcast to discuss the first quarter
results and the second quarter 2010 outlook on May 6, 2010, at 4:30 p.m. Eastern
Time (1:30 p.m. Pacific Time).
To listen to the live webcast, log on to the TTM Technologies website at
www.ttmtech.com. To access the live conference call, dial 1-877-941-8609
To Access a Replay of the Webcast
The call and the presentation will be available for replay until May 13, 2010, on
TTM Technologies' website at www.ttmtech.com.
A telephone replay also will be available beginning two hours after the conclusion
of the conference call. You may access the telephone replay by dialing 1-303-590-3030
or 1-800-406-7325 and entering confirmation code 4283045.
About Our Non-GAAP Financial Measures
This release includes information about the Company's non-GAAP net income and non-GAAP
earnings per share, which are non-GAAP financial measures. Management believes that
both measures -- which exclude amortization of intangibles, stock-based compensation
expense, non-cash interest expense on our convertible debt, asset impairment and
restructuring charges, inventory write-down related to facility closures, costs
related to the Meadville Holdings transaction and miscellaneous closing costs 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 with 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
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,
the impact of the current economic crisis, the company's dependence upon a small
number of customers, 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.
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. Reports 2010 First Quarter