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TTM Technologies, Inc. Reports Second Quarter 2011 Results

for immediate release

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 diluted share
  • 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."

Financial Results

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 first quarter.

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 first quarter.

"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.

Business Outlook

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 at www.ttmtech.com.

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 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 GAAP.

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.

About TTM

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. .

 

 

Company

TTM Technologies
(ticker: TTMI, exchange: NASDAQ)

Release Info

News Release:
08/04/2011

Contact

Steve Richards
Chief Financial Officer
714/241-0303