StockSelector.com
  Research, Select, & Monitor Friday, July 19, 2019 4:29:27 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
TTM Technologies Inc.$9.48   

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 TTM Technologies, Inc. Reports Fiscal Second Quarter 2018 Results
   Wednesday, August 01, 2018 4:05:00 PM ET

COSTA MESA, Calif., Aug. 01, 2018 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (NASDAQ:TTMI), a leading global printed circuit board (“PCB”) manufacturer, today reported results for the second quarter of fiscal 2018, which ended July 2nd, 2018.  The financial results provided below for the second quarter include a partial quarter contribution from the acquisition of Anaren, Inc. (“Anaren”), which was completed on April 18th, 2018.

Second Quarter 2018 Highlights

  • Net sales were $716.9 million
  • GAAP net income was $84.0 million, or $0.65 per diluted share
  • Non-GAAP net income was $52.3 million, or $0.48 per diluted share
  • Completed the acquisition of Anaren, Inc.
  • Cash flow from operations of $55.6 million


Second Quarter 2018 Financial Results
Net sales for the second quarter of 2018 were $716.9 million, compared to $627.2 million in the second quarter of 2017 and $663.6 million in the first quarter of 2018.

GAAP operating income for the second quarter of 2018 was $31.7 million, compared to $45.1 million in the second quarter of 2017 and $30.0 million in the first quarter of 2018. 

GAAP net income for the second quarter of 2018 was $84.0 million, or $0.65 per diluted share.  This compares to $20.6 million, or $0.18 per diluted share, in the second quarter of 2017 and $10.1 million, or $0.09 per diluted share, in the first quarter of 2018. The current quarter results reflect the release of a tax valuation allowance of $74.6 million
                                                                                                                                            
On a non-GAAP basis, net income for the second quarter of 2018 was $52.3 million, or $0.48 per diluted share. This compares to non-GAAP net income of $33.3 million, or $0.31 per diluted share, for the second quarter of 2017 and $28.0 million, or $0.26 per diluted share, in the first quarter of 2018.

Adjusted EBITDA for the second quarter of 2018 was $115.9 million, or 16.2 percent of net sales, compared to adjusted EBITDA of $85.5 million, or 13.6 percent of net sales, for the second quarter of 2017 and $83.2 million, or 12.5 percent of net sales, for the first quarter of 2018.

“In the second quarter, TTM delivered strong results,” said Tom Edman, CEO of TTM.  “We were pleased to see solid year over year growth from the aerospace and defense, automotive, computing and medical/industrial/instrumentation end markets that more than offset weakness in our cellular end market.  Further, Anaren’s contribution in the quarter was better than forecasted.  Longer term, Anaren’s deep RF expertise will strengthen TTM’s ability to engage with customers at the design stage in order to provide more value added solutions.”

Business Outlook
For the third quarter of 2018 TTM estimates that revenue will be in the range of $730 million to $770 million, and non-GAAP net income will be in the range of $0.41 to $0.47 per diluted share.

To Access the Live Webcast/Conference Call
TTM will host a conference call and webcast to discuss second quarter 2018 results and third quarter 2018 outlook on Wednesday, August 1st, 2018, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time).  The conference call will include forward-looking statements.

Telephone access is available by dialing domestic 800-289-0438 or international 323-794-2423 (ID 2502044).  The conference call also will be webcast on TTM’s website at www.ttm.com .

To Access a Replay of the Webcast
The replay of the webcast will remain accessible for one week following the live event on TTM’s website at www.ttm.com .

About TTM
TTM Technologies, Inc. is a leading global printed circuit board manufacturer, focusing on quick-turn and volume production of technologically advanced PCBs, backplane assemblies and electro-mechanical solutions as well as a global designer and manufacturer of high-frequency radio frequency (RF) and microwave components and assemblies. TTM stands for time-to-market, representing how TTM'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.ttm.com .

Forward-Looking Statements
This release contains forward-looking statements that relate to future events or performance. TTM cautions you that such statements are simply predictions and actual events or results may differ materially. These statements reflect TTM's current expectations, and TTM 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 TTM statements will not be realized. Further, these statements involve risks and uncertainties, many of which are beyond TTM'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, general market and economic conditions, including interest rates, currency exchange rates and consumer spending, demand for TTM's products, market pressures on prices of TTM's products, warranty claims, changes in product mix, contemplated significant capital expenditures and related financing requirements, TTM's dependence upon a small number of customers and other factors set forth in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's public reports filed with the SEC.

About Our Non-GAAP Financial Measures
This release includes information about TTM’s adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share, all of which are non-GAAP financial measures. TTM presents non-GAAP financial information to enable investors to see TTM through the eyes of management and to provide better insight into TTM’s ongoing financial performance. 

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.  TTM 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.

With respect to the Company’s outlook for non-GAAP net income per diluted share, we are unable to predict with reasonable certainty or without unreasonable effort certain items that may affect such measure calculated and presented in accordance with GAAP. Our expected non-GAAP net income per diluted share excludes primarily the future impact of restructuring actions, impairment charges, unusual gains and losses, and tax adjustments. These reconciling items are highly variable and difficult to predict due to various factors outside of management’s control and could have a material impact on our future period net income per diluted share calculated and presented in accordance with GAAP.  Accordingly, a reconciliation of non-GAAP net income per diluted share to such measure calculated and presented in accordance with GAAP is not available without unreasonable effort and has not been provided.

- Tables Follow -

  
  
TTM TECHNOLOGIES, INC. 
Selected Unaudited Financial Information 
(In thousands, except per share data) 
                
                
      Second Quarter First Quarter First Two Quarters 
       2018   2017   2018   2018   2017  
                
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS           
                
 Net sales  $  716,887  $  627,182  $  663,582  $  1,380,469  $  1,252,429  
 Cost of goods sold    600,747     531,315     574,904     1,175,651     1,051,543  
                
 Gross profit    116,140     95,867     88,678     204,818     200,886  
                
 Operating expenses:           
  Selling and marketing    18,619     15,851     17,628     36,247     32,506  
  General and administrative    45,721     29,885     34,127     79,848     60,707  
  Amortization of definite-lived intangibles    19,489     5,910     5,861     25,350     11,822  
  Restructuring charges    577     416     1,061     1,638     1,025  
  (Gain)/loss on sale of assets    -      (1,251)    -      -      (2,800) 
   Total operating expenses    84,406     50,811     58,677     143,083     103,260  
                
 Operating income    31,734     45,056     30,001     61,735     97,626  
                
 Interest expense    (20,453)    (12,922)    (13,747)    (34,200)    (26,518) 
 Other, net     6,178     (5,825)    (1,107)    5,071     (7,535) 
                
 Income before income taxes    17,459     26,309     15,147     32,606     63,573  
 Income tax (provision) / benefit    66,545     (5,558)    (5,050)    61,495     (9,697) 
                
 Net income $  84,004  $  20,751  $  10,097  $  94,101  $  53,876  
                
 Net income attributable to noncontrolling interest    -      (160)    -      -      (326) 
 Net income attributable to stockholders $  84,004  $  20,591  $  10,097  $  94,101  $  53,550  
                
 Earnings per share attributable to stockholders:           
  Basic  $  0.81  $  0.20  $  0.10  $  0.91  $  0.53  
  Diluted  $  0.65  $  0.18  $  0.09  $  0.75  $  0.46  
                
 Weighted-average shares used in computing per share amounts:           
  Basic     103,553     101,756     102,508     103,030     101,344  
  Diluted     134,721     133,224     107,517     134,088     132,073  
                
                
 Reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share:       
                
 Net income attributable to stockholders $  84,004  $  20,591    $  94,101  $  53,550  
  Add back items: interest expense, net of tax    3,587     3,432       7,135     6,826  
 Adjusted net income attributable to stockholders $  87,591  $  24,023    $  101,236  $  60,376  
 Weighted-average shares outstanding    103,553     101,756       103,030     101,344  
 Dilutive effect of convertible debt    25,938     25,940       25,938     25,940  
 Dilutive effect of warrants    3,854     3,924       3,517     3,054  
 Dilutive effect of performance-based stock units, restricted stock units & stock options    1,376     1,604       1,603     1,735  
 Diluted shares    134,721     133,224       134,088     132,073  
 Earnings per share attributable to stockholders:           
  Basic  $  0.81  $  0.20    $  0.91  $  0.53  
  Diluted  $  0.65  $  0.18    $  0.75  $  0.46  
                
                
SELECTED BALANCE SHEET DATA            
      July 2, 2018 January 1, 2018       
 Cash and cash equivalents, including restricted cash $  204,100  $  409,326        
 Accounts and notes receivable, net    541,587     483,903        
 Contract assets    300,717     -         
 Inventories     121,285     294,588        
 Total current assets    1,202,639     1,221,307        
 Property, plant and equipment, net    1,072,578     1,056,845        
 Other non-current assets    1,203,715     503,730        
 Total assets    3,478,932     2,781,882        
                
 Short-term debt, including current portion of long-term debt $  40,729  $  4,578        
 Accounts payable    448,455     497,455        
 Total current liabilities    689,276     720,356        
 Debt, net of discount    1,555,425     975,479        
 Total long-term liabilities    1,648,363     1,050,146        
 Total equity    1,141,293     1,011,380        
 Total liabilities and equity    3,478,932     2,781,882        
                
SUPPLEMENTAL DATA           
      Second Quarter First Quarter First Two Quarters 
       2018   2017   2018   2018   2017  
 Gross margin  16.2%  15.3%  13.4%  14.8%  16.0% 
 Operating margin  4.4%  7.2%  4.5%  4.5%  7.8% 
                
 End Market Breakdown:           
      Second Quarter First Quarter     
       2018   2017   2018      
                
  Aerospace/Defense  24%  17%  18%     
  Automotive  19%  20%  20%     
  Cellular Phone  8%  13%  15%     
  Computing/Storage/Peripherals  15%  14%  12%     
  Medical/Industrial/Instrumentation  14%  15%  15%     
  Networking/Communications  17%  20%  16%     
  Other   3%  1%  4%     
                
 Stock-based Compensation:           
      Second Quarter First Quarter     
       2018   2017   2018      
  Amount included in:           
   Cost of goods sold $  829  $  639  $  529      
   Selling and marketing    545     386     374      
   General and administrative    4,493     3,975     2,719      
   Total stock-based compensation expense $  5,867  $  5,000  $  3,622      
                
                
 Operating Segment Data:           
      Second Quarter First Quarter     
   Net sales:   2018   2017   2018      
   PCB   $  596,461  $  576,566  $  619,329      
   Anaren      62,011     -     -      
   E-M Solutions     61,842     52,898     47,151      
   Corporate     -      -      -       
    Total sales     720,314     629,464     666,480      
   Inter-segment sales     (3,427)    (2,282)    (2,898)     
    Total net sales  $  716,887  $  627,182  $  663,582      
                
   Operating segment income:            
   PCB   $  68,028  $  69,435  $  63,464      
   Anaren      12,936     -     -      
   E-M Solutions     2,496     2,689     40      
   Corporate     (32,237)    (21,158)    (27,642)     
    Total operating segment income     51,223     50,966     35,862      
   Amortization of definite-lived intangibles     (19,489)    (5,910)    (5,861)     
    Total operating income     31,734     45,056     30,001      
   Total other expense     (14,275)    (18,747)    (14,854)     
   Income before income taxes  $  17,459  $  26,309  $  15,147      
                
RECONCILIATIONS1           
      Second Quarter First Quarter First Two Quarters 
       2018   2017   2018   2018   2017  
 Non-GAAP gross profit reconciliation2:           
  GAAP gross profit $  116,140  $  95,867  $  88,678  $  204,818  $  200,886  
  Add back item:           
   Inventory markup    4,900     -      -      4,900     -   
   Stock-based compensation    829     639     529     1,358     1,033  
  Non-GAAP gross profit $  121,869  $  96,506  $  89,207  $  211,076  $  201,919  
  Non-GAAP gross margin  17.0%  15.4%  13.4%  15.3%  16.1% 
                
 Non-GAAP operating income reconciliation3:           
  GAAP operating income $  31,734  $  45,056  $  30,001  $  61,735  $  97,626  
  Add back items:           
   Amortization of definite-lived intangibles    19,489     5,910     5,861     25,350     11,822  
   Stock-based compensation    5,867     5,000     3,622     9,489     8,628  
   (Gain)/loss on sale of assets    -      (1,251)    -      -      (2,800) 
   Inventory markup    4,900     -      -      4,900     -   
   Impairments, restructuring, acquisition-related, and other charges    7,429     417     5,034     12,463     1,126  
  Non-GAAP operating income $  69,419  $  55,132  $  44,518  $  113,937  $  116,402  
  Non-GAAP operating margin  9.7%  8.8%  6.7%  8.3%  9.3% 
                
 Non-GAAP net income and EPS attributable to stockholders reconciliation4:           
  GAAP net income attributable to stockholders $  84,004  $  20,591  $  10,097  $  94,101  $  53,550  
  Add back items:           
   Amortization of definite-lived intangibles    19,489     5,910     5,861     25,350     11,822  
   Stock-based compensation    5,867     5,000     3,622     9,489     8,628  
   Non-cash interest expense    3,353     2,726     3,054     6,407     5,353  
   (Gain)/loss on sale of assets    -      (1,251)    -      -      (2,800) 
   Inventory markup    4,900     -      -      4,900     -   
   Impairments, restructuring, acquisition-related, and other charges    7,742     417     5,263     13,005     1,126  
   Income taxes5    (73,073)    (119)    108     (72,965)    (5,212) 
  Non-GAAP net income attributable to stockholders $  52,282  $  33,274  $  28,005  $  80,287  $  72,467  
  Non-GAAP earnings per diluted share attributable to stockholders $  0.48  $  0.31  $  0.26  $  0.74  $  0.68  
                
 Non-GAAP diluted number of shares6:           
  Diluted shares    134,721     133,224     107,517     134,088     132,073  
  Dilutive effect of convertible debt    (25,938)    (25,940)    -     (25,938)    (25,940) 
  Non-GAAP diluted number of shares    108,783     107,284     107,517     108,150     106,133  
                
 Adjusted EBITDA reconciliation7:           
  GAAP net income $  84,004  $  20,751  $  10,097  $  94,101  $  53,876  
  Add back items:           
   Income tax provision (benefit)    (66,545)    5,558     5,050     (61,495)    9,697  
   Interest expense    20,453     12,922     13,747     34,200     26,518  
   Amortization of definite-lived intangibles    19,489     5,910     5,861     25,350     11,822  
   Depreciation expense    40,298     36,146     39,775     80,073     72,223  
   Stock-based compensation    5,867     5,000     3,622     9,489     8,628  
   (Gain)/loss on sale of assets    -      (1,251)    -      -      (2,800) 
   Inventory markup    4,900     -      -      4,900     -   
   Impairments, restructuring, acquisition-related, and other charges    7,429     417     5,034     12,463     1,126  
  Adjusted EBITDA $  115,895  $  85,453  $  83,186  $  199,081  $  181,090  
  Adjusted EBITDA margin  16.2%  13.6%  12.5%  14.4%  14.5% 
                
 Free cash flow reconciliation:           
  Operating cash flow    55,639     59,114     (14,261)    41,378     108,698  
  Capital expenditures, net    (38,948)    (45,626)    (42,139)    (81,087)    (69,004) 
  Free cash flow $  16,691  $  13,488  $  (56,400) $  (39,709) $  39,694  
                
 1 This information provides a reconciliation of non-GAAP gross profit, non-GAAP operating income, non-GAAP net income attributable to stockholders, non-GAAP EPS attributable to stockholders, and adjusted EBITDA to the financial information in our consolidated condensed statements of operations. 
                
 2 Non-GAAP gross profit and gross margin measures exclude stock-based compensation expense and inventory markup. 
                
 3 Non-GAAP operating income and operating margin measures exclude amortization of intangibles, stock-based compensation expense, gain on sale of assets, inventory markup, acquisition-related costs, asset impairments, restructuring and other charges. 
                
 4 This information provides non-GAAP net income attributable to stockholders and non-GAAP EPS 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 (before consideration of capitalized interest), gain on sale of assets, inventory markup, acquisition-related costs, asset impairments, restructuring and other charges as well as the associated tax impact of these charges and discrete tax items -- provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations. 
                
 5 Income tax adjustments reflect the difference between income taxes based on a non-GAAP tax rate and a forecasted annual GAAP tax rate. 
                
 6 Non-GAAP diluted number of shares used in computing non-GAAP earnings per share attributable to stockholders excludes the dilutive effect of convertible debt. 
                
 7 Adjusted EBITDA is defined as earnings before interest expense, income taxes, depreciation, amortization of intangibles, stock-based compensation expense, gain on sale of assets, inventory markup, acquisition-related costs, asset impairments, restructuring and other charges. We present adjusted EBITDA to enhance the understanding of our operating results, and it is a key measure we use to evaluate our operations.  In addition, we provide our adjusted EBITDA because we believe that investors and securities analysts will find adjusted EBITDA to be a useful measure for evaluating our operating performance and comparing our operating performance with that of similar companies that have different capital structures and for evaluating our ability to meet our future debt service, capital expenditures, and working capital requirements.  However, adjusted EBITDA should not be considered as an alternative to cash flows from operating activities as a measure of liquidity or as an alternative to net income as a measure of operating results in accordance with accounting principles generally accepted in the United States of America. 
                

Contact:
Sameer Desai,
Senior Director, Corporate
Development & Investor Relations
Sameer.desai@ttmtech.com
714-327-3050

Primary Logo

Source: TTM Technologies


Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2019 StockSelector.com. All rights reserved.