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TTM Technologies, Inc. reports fourth quarter and fiscal year 2012 results

for immediate release

COSTA MESA, CA - February 5, 2013 - TTM Technologies, Inc. (Nasdaq: TTMI), a major global printed circuit board (PCB) manufacturer, today reported results for the fourth quarter and fiscal year 2012, which ended December 31, 2012.

Fourth Quarter 2012 Highlights

  • Net sales were $382.4 million
  • GAAP net income attributable to stockholders was $15.7 million, or $0.19 per diluted share
  • Non-GAAP net income attributable to stockholders was $21.5 million, or $0.26 per diluted share
  • Gross margin was 16.3 percent

Fiscal Year 2012 Highlights

  • Net sales were $1.3 billion
  • GAAP net loss attributable to stockholders was $172.6 million, or $2.11 per share
  • Excluding the goodwill and asset impairment charges recorded in 2012, GAAP net income attributable to stockholders was $43.2 million, or $0.52 per diluted share
  • Non-GAAP net income attributable to stockholders was $72.0 million, or $0.87 per diluted share
  • Gross margin was 16.7 percent

Fourth Quarter 2012 Financial Results
Net sales for the fourth quarter increased 12.8 percent to $382.4 million from $339.0 million in the third quarter.

GAAP operating income for the fourth quarter was $21.4 million compared to operating loss of $202.7 million in the third 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. Excluding these charges, operating income for the third quarter of 2012 was $15.7 million.

GAAP net income attributable to stockholders for the fourth quarter was $15.7 million, or $0.19 per diluted share, compared to net loss attributable to stockholders of $208.3 million, or $2.54 per share, for the third quarter. Fourth quarter net income attributable to stockholders includes a $3.3 million, or $0.04 cent per diluted share, tax valuation adjustment to noncontrolling interest. Net income attributable to stockholders, excluding the impairment charges, was $7.5 million, or $0.09 per diluted share, for the third quarter.

On a non-GAAP basis, net income attributable to stockholders for the fourth quarter was $21.5 million, or $0.26 per diluted share. This compares to non-GAAP net income attributable to stockholders of $18.1 million, or $0.22 per diluted share, for the third quarter.

Adjusted EBITDA for the fourth quarter was $50.3 million, or 13.2 percent of net sales, compared to adjusted EBITDA of $36.5 million, or 10.8 percent of net sales, for the third quarter.

"We were pleased to close 2012 with strong financial and operational performance in the fourth quarter," said Kent Alder, CEO of TTM. "We experienced broad-based demand for our advanced HDI PCBs across multiple end markets, particularly for smartphones and touchpad tablets. The product mix shift toward more advanced HDI PCBs drove higher gross margin and operating profit, resulting in stronger earnings for the quarter."

Full Year 2012 Financial Results
Net sales for fiscal year 2012 decreased to $1.3 billion from $1.4 billion in fiscal year 2011.

Operating loss for fiscal year 2012 was $141.4 million, a decrease from operating income of $91.1 million in fiscal year 2011. Included in operating results were non-cash goodwill and asset impairment charges of $218.4 million in 2012 and $63.3 million in 2011. Excluding these charges, operating income for fiscal year 2012 was $77.0 million compared to operating income of $154.4 million in 2011. The year over year decline in operating income primarily reflects higher labor costs in Asia and lower capacity utilization.

GAAP net loss attributable to stockholders for fiscal year 2012 was $172.6 million, or $2.11 per share, compared to GAAP net income of $41.9 million, or $0.51 per diluted share, for fiscal year 2011. Net income attributable to stockholders for fiscal year 2012 includes the noncontrolling interest adjustment discussed above. GAAP net income attributable to stockholders, excluding the impairment charges, was $43.2 million, or $0.52 per diluted share, for fiscal year 2012. GAAP net income attributable to stockholders, excluding the impairment charges, was $100.4 million, or $1.23 per diluted share, for fiscal year 2011.

On a non-GAAP basis, net income attributable to stockholders for fiscal year 2012 was $72.0 million, or $0.87 per diluted share. This compares to fiscal year 2011 non-GAAP net income attributable to stockholders of $126.5 million, or $1.54 per diluted share. Adjusted EBITDA for fiscal year 2012 was $175.5 million, or 13.0 percent of net sales, compared to $250.2 million, or 17.5 percent of net sales, for fiscal year 2011.

"While the global macroeconomic challenges weighed on the demand environment for much of 2012, we significantly expanded our advanced HDI business during the year to meet future demand. We are confident that advanced technology PCBs provide our strongest growth prospect, and we are well positioned to capitalize on these opportunities as our customers’ end markets recover," continued Alder.

"Looking ahead to the first quarter, we expect a normal seasonal decline in our business. Longer term, we remain optimistic as we are clearly differentiated through our focus on leading edge technology, our diversified end markets, and our broad customer base," concluded Alder.

Business Outlook
For the first quarter of 2013, TTM estimates revenue will be in the range of $310 million to $330 million, GAAP earnings attributable to stockholders in a range from breakeven to $0.05 per diluted share and non-GAAP earnings attributable to stockholders in a range from $0.07 to $0.12 per diluted share.

To Access the Live Webcast/Conference Call
The company will host a conference call and webcast to discuss the fourth quarter and fiscal year 2012 results and the first quarter 2013 outlook on Tuesday, February 5, 2013, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time).

Telephone access is available by dialing domestic 1-888-549-7880 or international 1-480-629-9770. The conference call 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 February 12, 2013, 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 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.

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TTM Technologies, Inc. Reports Fourth Quarter and Fiscal Year 2012 Results

 

 

Company

TTM Technologies
(ticker: TTMI, exchange: NASDAQ)

Release Info

News Release:
2/5/2013

Contact

Steve Richards
Chief Financial Officer
714-327-3000