TTM Technologies, Inc. Reports Second Quarter 2011 Results
SANTA ANA, CA - August 4, 2011 - TTM Technologies, Inc. (Nasdaq: TTMI), a
major global printed circuit board (PCB) manufacturer, today reported results for
the second quarter 2011, ended June 27, 2011.
Second Quarter 2011 Highlights
- Net sales were $366.1 million
- GAAP net income attributable to stockholders, excluding the effect of an impairment
charge, was $25.7 million, or $0.31 per diluted share
- Non-GAAP net income attributable to stockholders was $32.9 million, or $0.40 per
- Gross margin was 21.1 percent
"Our operating performance was within the expected range although our gross margin
was somewhat lower than we anticipated," said Kent Alder, President and CEO of TTM.
"We experienced continued demand for our advanced technology products, with particular
strength in our networking/communications end market. Overall, sales increased approximately
9 percent compared to second quarter 2010 pro forma sales of $334.8 million."
Net sales for the second quarter increased to $366.1 million from $342.8 million
in the first quarter.
Due to a non-cash asset impairment charge of $48.1 million, we recorded an operating
loss for the second quarter of $8.5 million compared to operating income of $45.7
million in the first quarter. Excluding the asset impairment charge, operating income
for the second quarter was $39.6 million.
GAAP net loss attributable to stockholders for the second quarter was $20.9 million,
or $0.26 per basic share, compared to net income of $27.1 million, or $0.33 per
diluted share, for the first quarter. Included in the second quarter net loss attributable
to stockholders was a charge of $46.6 million, or $0.57 per basic share, related
to asset impairment.
The second quarter impairment charge primarily related to equipment at a plant that
was acquired in 2007. While we previously had reduced the carrying value of some
of these assets during purchase accounting, weaker than expected performance at
this facility led us to record an additional impairment in the second quarter. This
equipment is not suited for the advanced technology demands of our current customers.
On a non-GAAP basis, net income attributable to stockholders for the second quarter
was $32.9 million, or $0.40 per diluted share. This compares to non-GAAP net income
attributable to stockholders of $33.3 million, or $0.40 per diluted share, in the
Adjusted EBITDA for the second quarter was $64.2 million, or 17.5 percent of net
sales, compared to EBITDA of $66.5 million, or 19.4 percent of net sales, for the
"During the second quarter, demand remained firm in our Asia Pacific operations
for our higher tech PCBs that are used in the production of touchpad tablets and
smartphones," Alder continued. "Our North America operations continued to generate
solid cash flow. We are uniquely positioned by the advantages of our geographic
and end market diversification. In addition to our diversification being an important
component of our growth strategy, we believe it also mitigates risk and enhances
our ability to serve our customers."
Please refer to the tables below for a reconciliation between GAAP and non-GAAP
net income attributable to stockholders as well as adjusted EBITDA.
For the third quarter, TTM estimates revenue will be in the range of $365 million
to $385 million, GAAP earnings attributable to stockholders in a range from $0.24
to $0.33 per diluted share and non-GAAP earnings attributable to stockholders in
a range from $0.32 to $0.41 per diluted share.
To Access the Live Webcast/Conference Call
The company will host a conference call and webcast to discuss the second quarter
results and the third quarter outlook on Thursday, August 4, 2011, at 4:30 p.m.
Eastern Time (1:30 p.m. Pacific Time).
Telephone access is available by dialing domestic 1-877-941-2332 or international
1-480-629-9723. The conference also will be webcast on TTM Technologies' website
To Access a Replay of the Webcast
The webcast will be available for replay until August 11, 2011, on TTM Technologies'
website at www.ttmtech.com.
About Our Non-GAAP Financial Measures
This release includes information about the Company's non-GAAP net income attributable
to stockholders and non-GAAP earnings per share attributable to stockholders, 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 debt, asset impairment, restructuring and other charges 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
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,
contemplated significant capital expenditures and related financing requirements,
the Company’s ability to integrate and manage its Asia Pacific operations, the company's
dependence upon a small number of customers, the unpredictability of and potential
fluctuation in future revenues and operating results 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. .