TTM Technologies, Inc. Reports Third Quarter 2012 Results
COSTA MESA, CA - November 1, 2012 - TTM Technologies, Inc. (Nasdaq: TTMI), a major
global printed circuit board (PCB) manufacturer, today reported results for the
third quarter 2012, which ended September 24, 2012.
Third Quarter 2012 Highlights
- Net sales were $339.0 million
- GAAP net loss attributable to stockholders was $208.3 million, or $2.54 per share
- Non-GAAP net income attributable to stockholders was $18.1 million, or $0.22 per
- Gross margin was 15.4 percent
Net sales for the third quarter increased to $339.0 million from $327.4 million
in the second quarter.
GAAP operating income for the third quarter was a loss of $202.7 million compared
to operating income of $18.1 million in the second quarter.
Included in operating results for the third quarter of 2012 were non-cash charges
of $218.4 million to write down goodwill, customer-related intangibles and property,
plant and equipment. As a result of our weaker than expected financial performance
and lower stock price, we conducted an impairment analysis in the third quarter
to determine the impact of these factors on the value of our assets. Excluding these
charges, operating income for the third quarter of 2012 was $15.7 million. In addition,
the company recorded a $5.5 million loss on extinguishment of debt related to the
September refinancing of its credit facility.
GAAP net loss attributable to stockholders for the third quarter was $208.3 million,
or $2.54 per share, compared to net income attributable to stockholders of $7.4
million, or $0.09 per diluted share, for the second quarter. Net income attributable
to stockholders, excluding the impairment charges, loss on extinguishment of debt
and non-recurring tax benefit of $3.3 million, was $8.3 million, or $0.10 per diluted
share, for the third quarter.
On a non-GAAP basis, net income attributable to stockholders for the third quarter
was $18.1 million, or $0.22 per diluted share. This compares to non-GAAP net income
attributable to stockholders of $13.6 million, or $0.17 per diluted share, in the
Adjusted EBITDA, which adds back asset impairments, for the third quarter was $36.5
million, or 10.8 percent of net sales, compared to adjusted EBITDA of $42.3 million,
or 12.9 percent of net sales, for the second quarter. The decline in EBITDA reflects
the $5.5 million loss on extinguishment of debt recorded in the third quarter.
"As expected, third quarter results were affected by the continued challenging demand
environment in some of our end markets, including our largest—networking and communications,"
said Kent Alder, President and CEO of TTM. "Performance in our Asia Pacific segment
was less robust than anticipated primarily due to later than expected orders for
several customer programs."
"As we turn to the fourth quarter, we are seeing strong orders for our PCBs used
in smartphones, touchpad tablets and e-readers. Increased demand for these products
also shifts our product mix toward more advanced HDI PCBs. While these factors should
improve top-line and bottom-line results in the fourth quarter, they will be somewhat
offset by the global headwinds we are experiencing with our conventional PCBs, particularly
in the networking and communications end market," concluded Alder.
For the fourth quarter, TTM estimates revenue will be in the range of $360 million
to $380 million, GAAP earnings attributable to stockholders in a range from $0.07
to $0.14 per diluted share and non-GAAP earnings attributable to stockholders in
a range from $0.14 to $0.21 per diluted share.
To Access the Live Webcast/Conference Call
The company will host a conference call and webcast to discuss the third quarter
2012 results and the fourth quarter outlook on Thursday, November 1, 2012, at 4:30
p.m. Eastern Time (1:30 p.m. Pacific Time).
Telephone access is available by dialing domestic 1-800-762-8795 or international
1-480-629-9821. The conference call also will be webcast on TTM Technologies' website
To Access a Replay of the Webcast
The webcast will be available for replay until November 8, 2012, 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 impairments, 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 to 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.
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TTM Technologies, Inc. Reports Third Quarter 2012