TTM Technologies Inc. Reports First Quarter 2001 Cash Earnings of $0.23 Per Share; EBITDA Growth of 53 Percent
REDMOND, WA - April 26, 2001 - TTM Technologies, Inc. (Nasdaq: TTMI), a leading manufacturer of time-critical, technologically advanced printed circuit boards, today reported results for the quarter ended April 2, 2001.
The company posted solid revenue growth and profitability in the first quarter, despite challenging industry conditions. Net sales increased 9 percent to $46.0 million from $42.1 million for the first quarter of 2000. This increase resulted entirely from organic growth. Gross profit increased 49 percent to $18.3 million, as gross profit margins expanded to 39.8 percent in the first quarter of 2001, compared to 29.2 percent for the same period in 2000.
Operating income increased 71 percent to $12.6 million for the first quarter of 2001, compared to $7.3 million for the first quarter of 2000. Operating margins increased from 17.4 percent in the first quarter of 2000 to 27.3 percent in the first quarter of 2001. Net income was $7.6 million, or $0.19 per diluted share, for the first quarter of 2001, compared to $2.1 million, or $0.07 per diluted share, for the same period in 2000. Diluted cash earnings per share were $0.23 for the first quarter of 2001, compared to $0.10 in the year-ago period.
EBITDA increased 53 percent to $15.7 million for the first quarter of 2001, compared to $10.3 million for the same period in 2000. EBITDA margins expanded from 24.5 percent in the first quarter of 2000 to 34.2 percent in the first quarter of 2001.
For the first quarter of 2001, quick-turn business as a percentage of total revenues increased to approximately 38 percent, compared to approximately 27 percent for the first quarter of 2000. In addition, the percentage of revenues generated by the networking and high-end computing end markets expanded from 51 percent in the first quarter of 2000 to 60 percent in the first quarter of 2001.
"We managed operations very effectively during the first quarter, despite the widespread slowdown in the electronics industry," said Kent Alder, President and CEO of TTM Technologies. "We maintained strong margins and controlled expenses, even as we committed greater resources to sales and marketing. Our strong balance sheet and cash flow give us financial flexibility and the ability to invest in our quick-turn capacity and technological capabilities. As a result, we are well positioned to capitalize on a recovery in the electronics market."
"New customer acquisition is the major focus of our quick-turn strategy. In the first quarter, the company continued to increase its customer base, adding a significant number of new customers," Alder stated. "We also expanded the total number of salespeople -- including sales management, direct sales, and sales reps -- from 48 at the end of 2000 to 85 currently, well on our way to our established objective of doubling our sales force in 2001."
Return on Invested Capital
TTM's return on invested capital (ROIC), based on tax-effected EBITA,expanded in the first quarter of 2001. The annualized rate of return for the first quarter of 2001 increased to 23 percent from 16 percent for the year-ago period.
"Despite the sharp slowdown in the electronics industry, the prototype portion of our quick-turn business remains healthy," stated Alder. "However, we have experienced a significant slowdown in our volume segment. Consequently, we expect to fall short of our previously issued full year guidance of $220 to $224 million in revenues and cash earnings per share of $0.85 to $0.90 for 2001. Given the deteriorating industry environment throughout the first quarter and lack of visibility, we expect our second quarter revenues will be down 25 to 30 percent from first quarter levels. However, we are unable to provide earnings guidance at this time. Furthermore, although we are optimistic relative to a rebound in demand in the second half of the year, we are uncertain about the exact timing of a market recovery."
TTM Technologies, Inc. is a leading supplier of time-critical, technologically advanced printed circuit boards to original equipment manufacturers and electronic manufacturing services companies. 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. TTM completed its IPO in September 2000 and trades on the Nasdaq National Market System under the symbol "TTMI".
The company will conduct a conference call to discuss its first-quarter performance and outlook today at 11 a.m. eastern/8 a.m. pacific time. The call will be simulcast, and available for replay until May 10, 2001, on the company's website at www.ttmtech.com.
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, that 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, the company's dependence upon a small number of customers, and the other "Factors That May Affect Future Results" set forth in the company's Form 10-K for 2000.
TTM Technologies, Inc. Earnings Release Schedule For First Quarter 2001
"Safe Harbor"; Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding TTM Technologies' business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.