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TTM Technologies, Inc. Reports Third Quarter 2001 Cash Earnings of $0.06 Per Share

for immediate release

REDMOND, WA - October 23, 2001 - TTM Technologies, Inc. (Nasdaq: TTMI - news), a leading manufacturer of time-critical, technologically advanced printed circuit boards, today reported results for the quarter ended October 1, 2001.

Third-Quarter Results

In the third quarter, continued economic weakness and a sharp downturn in the electronics industry led to a year-over-year decline in revenue and profitability. Net sales declined 51 percent to $26.9 million, compared to $55.1 million for the third quarter of 2000. Gross profit declined 73 percent to $5.9 million, as gross margins declined to 21.8 percent in the third quarter of 2001, compared to 39.0 percent for the same period in 2000.

As a result of lower revenues, operating income declined 86 percent to $2.0 million in the third quarter of 2001, compared to adjusted operating income (excluding one-time costs associated with the buyout of compensation and management contracts) of $14.7 million for the third quarter of 2000.

Net income was $1.0 million, or $0.03 per diluted share, for the third quarter of 2001, compared to adjusted net income (excluding the above-listed nonrecurring items, an extraordinary item related to the extinguishment of debt, and a one-time tax benefit) of $6.8 million, or $0.20 per diluted share, for the same period in 2000. Diluted cash earnings per share were $0.06 for the third quarter of 2001, compared to adjusted cash earnings per share of $0.24 in the same period in 2000.

Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 71 percent to $5.3 million for the third quarter of 2001, compared to $18.2 million for the third quarter of 2000.

For the third quarter of 2001, quick-turn business as a percentage of total revenues remained stable at 40 percent, compared to 41 percent for the third quarter of 2000. While the number of jobs tooled was steady and the percentage of quick-turn panels sold increased, year-over-year, pricing pressures in the quick-turn segment dampened its impact on total revenues. During the quarter, the company captured 48 new customers.

"Despite a challenging business environment, we generated solid profitability in the third quarter," said Kent Alder, President and CEO of TTM Technologies. "Our focus on time-to-market and new customer capture, combined with proactive cost cutting-including a 35 percent reduction in headcount this year and lower material costs-helped us mitigate pricing pressure and lower demand in all segments of our business."

Year-to-Date Results

Net sales for the first three fiscal quarters ended October 1, 2001 declined 28 percent to $103.6 million compared to $143.2 million for the same period in 2000. Gross profit declined 35 percent to $31.9 million, as gross margins declined to 30.8 percent for the first nine months of 2001, compared to 34.1 percent for the same period in 2000.

During the first nine months of 2001, operating income declined 40 percent to $18.4 million, compared to adjusted operating income of $30.8 million for the same period in 2000.

Net income was $10.7 million, or $0.28 per diluted share, for the first three quarters of 2001, compared to adjusted net income of $12.0 million, or $0.37 per diluted share, for the same period in 2000. Diluted cash earnings per share were $0.37 for the first three quarters of 2001, compared to adjusted diluted cash earnings per share of $0.48 in the same period in 2000.

Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 30 percent to $28.1 million for the first three quarters of 2001, compared to $40.5 million for the same period in 2000.

Return on Invested Capital and Liquidity

TTM's return on invested capital (ROIC), based on tax-affected EBITA, was 7.7 percent in the third quarter of 2001, compared with 27.4 percent in the year-ago period. On a trailing 12-month basis, TTM generated an ROIC of 19.6 percent.

The company's balance sheet strengthened further during the quarter. Through the first three quarters of the year, TTM reduced its net debt to $10.5 million, down $23.5 million since year-end 2000. As a result, TTM had a net debt-to-capital ratio of 6.6 percent, compared to 19.8 percent at year-end 2000. In addition, during the third quarter, the company reduced its cash conversion cycle by more than 15% compared to the same period last year.

Outlook

For the fourth quarter of 2001, the company is estimating revenues of $24 to $27 million and cash earnings per share from $0.03 to $0.06. "As we navigate the ongoing slowdown in our industry, we actively manage our business to maximize profitability and cash flow," said Alder.

"We remain optimistic about our future. As our results demonstrate, our focus on the most attractive niches of the printed circuit board market provides higher profitability than the overall industry. In addition, our specialized and integrated facilities enable us to meet customer needs at any stage, from prototype through volume production. As the printed circuit board industry continues to consolidate, our full-service capabilities, technological sophistication, and strong financial position will enable us to continue to capture market share," concluded Alder.

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".

Conference Call/Webcast
The company will conduct a conference call to discuss its third-quarter performance and outlook today at 4:30 p.m. Eastern/1:30 p.m. Pacific time. The call will be simulcast, and available for replay until October 30, 2001, on the company's Web site 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.  

 

 

Company

TTM Technologies
(ticker: TTMI, exchange: NASDAQ)

Release Info

News Release:
10/23/2001

Contact

Stacey Peterson
Chief Financial Officer
714/241-0303