TTM Technologies, Inc. Reports 2010 Second Quarter Results
SANTA ANA, CA - August 5, 2010 - TTM Technologies, Inc. (Nasdaq: TTMI), a
major global printed circuit board (PCB) manufacturer, today reported results for
the second quarter of 2010, ended June 28, 2010.
Second Quarter Highlights
- In the second quarter, we reported record revenue of $310 million, which exceeded
the $300 million midpoint of our guidance range.
- GAAP earnings were $0.06 per diluted share, and non-GAAP earnings were $0.26 per
diluted share in the second quarter. The combination with Meadville Holdings Ltd.
was accretive to non-GAAP earnings per share this quarter.
- The integration with Meadville is on track with our expectations.
Second Quarter 2010 Financial Results - GAAP
Second quarter net sales of $310.2 million increased $172.0 million, or 124 percent,
from first quarter net sales of $138.2 million. The increase in net sales was primarily
due to the combination with Meadville.
Second quarter operating income of $17.4 million increased from first quarter operating
income of $9.9 million. We recorded charges of $14.6 million in the second quarter
and $2.8 million in the first quarter related to previously announced plant closures,
impairment of long-lived assets, transaction costs and inventory adjustments. Net
income attributable to stockholders for the second quarter was $4.9 million, or
$0.06 per diluted share, compared to net income in the first quarter of $4.5 million,
or $0.10 per diluted share.
"We are very pleased with the business performance across the board and excited
about the major contribution from our new Asia Pacific operations in the second
quarter," said Kent Alder, President and CEO of TTM. "Our integration with Meadville
is on track, and further good news is that the Meadville business combination was
accretive to non-GAAP earnings in the second quarter, which was earlier than originally
"Our facilities are busy with solid backlogs and high levels of capacity utilization,"
Alder said. "The added capacity and diversity of the Asia Pacific operations fits
extremely well with our growth strategy as a global company."
Second Quarter 2010 Financial Results - Non-GAAP
Non-GAAP results for the second quarter add back amortization of intangibles, stock-based
compensation expense, non-cash interest expense, asset impairment and restructuring
charges, inventory adjustments, costs related to the Meadville transaction and miscellaneous
closing costs as well as the income tax effects related to these expenses.
Second quarter 2010 non-GAAP net income attributable to stockholders was $19.9 million,
or $0.26 per diluted share. This compares to first quarter 2010 non-GAAP net income
of $8.6 million, or $0.19 per diluted share.
Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization),
which adds back the controlling portion of depreciation and other expenses as well
as asset impairment charges, for the second quarter was $32.6 million, or 10.5 percent
of net sales, compared to first quarter adjusted EBITDA of $15.1 million, or 10.9
percent of net sales.
Second Quarter 2010 Segment Information
TTM Technologies reports operating segments for North America and Asia Pacific.
The North America segment includes our US operations as well as our Shanghai backplane
assembly operation, since that business is managed in conjunction with our U.S.
based printed circuit board operations. Our Asia Pacific segment includes our PCB
manufacturing facilities in Hong Kong and China.
For the North America segment, second quarter 2010 sales (before inter-segment sales)
were $138.9 million, compared with $138.2 million in the first quarter. Second quarter
operating segment income (before amortization of intangibles) was $6.2 million,
compared to operating segment income of $10.7 million in the first quarter. Excluding
the charges related to plant closures, impairment of long-lived assets, and the
transaction costs, second quarter operating income (before amortization of intangibles)
would have been $14.1 million, compared to operating segment income of $13.4 million
in the first quarter.
For the Asia Pacific segment, second quarter 2010 sales (before inter-segment sales
and based on the completion of the combination on April 8, 2010) were $173.1 million.
Second quarter operating segment income (before amortization of intangibles) was
$15.8 million. Excluding the inventory fair value adjustment of $6.7 million related
to the business combination, second quarter operating income (before amortization
of intangibles) would have been $22.4 million.
Cash and cash equivalents, restricted cash and short-term investments at the end
of the second quarter totaled $213.2 million, a decrease of $9.7 million from $222.9
million at the end of the first quarter. Cash flow from operations was $13.4 million
in the second quarter, up from $6.3 million in the first quarter.
The Company currently is finalizing the valuation of the assets acquired and the
liabilities assumed in the business combination with Meadville. Accordingly, the
preliminary estimated fair values reflected in our second quarter results are subject
to adjustment as additional information is obtained.
Third Quarter 2010 Forecast
For the third quarter of 2010, TTM estimates revenue will be in the range of $341
million to $357 million, GAAP earnings attributable to stockholders in a range from
$0.20 to $0.27 per diluted share and non-GAAP earnings attributable to stockholders
in a range from $0.26 to $0.33 per diluted share. TTM issued 36.3 million shares
as part of the Meadville purchase price. As a result, diluted share count for the
third quarter will be approximately 80.5 million shares.
To Access the Live Webcast/Conference Call
The company will host a conference call and webcast to discuss the second quarter
results, the third quarter 2010 outlook and our recent credit agreement amendment
on August 5, 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 1-877-941-1468
To Access a Replay of the Webcast
The call will be available for replay until August 12, 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 4339641.
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 add back amortization of intangibles, stock-based compensation
expense, non-cash interest expense on our debt, asset impairment and restructuring
charges, inventory adjustments, 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 -
Q2 2010 TTM Earnings Schedule