TTM Technologies, Inc. Reports First Quarter 2008 Results
SANTA ANA, CA - April 30, 2008 - TTM Technologies, Inc. (Nasdaq: TTMI), North
America's largest printed circuit board (PCB) manufacturer, today reported results
for the first quarter of 2008, ended March 31, 2008.
Financial & Operational Highlights
- First quarter 2008 net sales of $174.1 million improved 3.9 percent over fourth
quarter 2007 net sales.
- First quarter 2008 gross margin of 21.6 percent increased 90 basis points over fourth
quarter 2007 gross margins.
- First quarter 2008 net income of $14.4 million improved 21.5 percent over fourth
quarter 2007 net income.
- Strong operating cash flow of $26.8 million enabled further pay down of debt associated
with the Printed Circuit Group (PCG) acquisition. TTM paid down $10 million in debt
during the first quarter, reducing the debt balance to $75 million.
First Quarter 2008 Financial Results
Commenting on results for the first quarter, Kent Alder, President and CEO of TTM,
noted, "We delivered another quarter of solid financial performance, with the Aerospace/Defense
end market showing improved strength, coupled with continued strong demand for our
high tech manufacturing services. Our results were above expectations, and we realized
sequential improvement in net sales, gross margin and net income. The first quarter
results are a real compliment to the management team and demonstrate the success
we are having as we work to improve margins." Alder added, "TTM's business and end
market demand remain healthy and stable, and the Company has not seen a significant
impact from the slowing global economy. We will continue to operate efficiently
and effectively, with a customer-focused strategy to grow our business and create
First quarter 2008 net sales of $174.1 million improved 3.9 percent over fourth
quarter 2007 net sales of $167.5 million.
First quarter 2008 gross margin of 21.6 percent increased 90 basis points over fourth
quarter 2007 gross margin of 20.7 percent.
Selling and marketing expense for the first quarter was $7.7 million, representing
4.4 percent of sales. This is relatively consistent with fourth quarter selling
and marketing expense of $7.6 million, representing 4.6 percent of sales.
General and administrative expense, including amortization of intangibles, for the
first quarter was $9.2 million, representing 5.3 percent of sales. This compares
to fourth quarter general and administrative expense, including amortization of
intangibles, of $9.5 million, representing 5.7 percent of sales. The decrease in
general and administrative expense was primarily due to lower auditing and consulting
The Company noted that a one-time benefit attributable to an agreement reached with
a vendor regarding metal reclamation positively affected operating income for the
quarter. The $3.7 million benefit recorded as metal reclamation added approximately
$0.05 to diluted earnings per share for the first quarter.
TTM posted operating income of $24.4 million for the first quarter, an increase
of 39.2 percent over fourth quarter operating income of $17.6 million.
First quarter net income of $14.4 million, or $0.34 per diluted share, increased
21.5 percent over fourth quarter net income of $11.8 million, or $0.28 per diluted
EBITDA (earnings before interest, taxes, depreciation and amortization) for the
first quarter was $31.0 million, or 17.8 percent of sales, compared with fourth
quarter EBITDA of $24.4 million, or 14.5 percent of sales. (A reconciliation of
this non-GAAP measure is provided after the GAAP financial statements accompanying
this press release.)
First Quarter Segment Information - PCB Manufacturing and Backplane Assembly
TTM Technologies reports two operating segments: PCB Manufacturing and Backplane
For the PCB Manufacturing segment, first quarter net sales (before inter-company
sales) were $148.7 million, compared with $147.5 million in the fourth quarter.
First quarter operating segment income (before amortization of intangibles) was
$22.7 million, compared with $17.1 million in the fourth quarter.
For the Backplane Assembly segment, first quarter net sales (before inter-company
sales) were $32.6 million, compared with $27.8 million in the fourth quarter. First
quarter operating segment income (before amortization of intangibles) was $2.7 million,
compared with $1.5 million in the fourth quarter.
Cash and cash equivalents at the end of the first quarter totaled $32.6 million,
compared with $18.7 million at the end of the fourth quarter. This increase in cash
is primarily attributable to higher net income and strong collection of receivables
during the first quarter.
TTM's strong operating cash flow contributed to continued pay down of debt associated
with the PCG acquisition. During the quarter, the Company reduced debt by $10 million,
reducing the total debt balance to $75 million.
Second Quarter Fiscal Year 2008 Forecast
For the second quarter of 2008, TTM estimates revenues in a range of $170 million
to $177 million and earnings in a range of $0.20 to $0.25 per diluted share.
To Access the Live Web Cast/Conference Call
The company will host a conference call to discuss the first quarter results and
second quarter outlook on April 30, 2008, at 4:30 p.m. Eastern Daylight Time (1:30
p.m. Pacific Daylight Time).
To listen to the live web cast, log on to the TTM Technologies website at http://www.ttmtech.com.
To access the live conference call, dial 303-262-2140 or 800-240-6709.
To Access a Replay of the Web Cast
A digital replay will be available on TTM Technologies' website at http://www.ttmtech.com
and will remain accessible for one week following the live event.
A telephone replay also will be available beginning two hours after the conclusion
of the conference call until May 2, 2008. You may access the telephone replay by
dialing 303-590-3000 or 800-405-2236 and entering confirmation code 11112623#.
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,
the company's dependence upon a small number of customers, general economic conditions
and specific conditions in the markets TTM addresses, the unpredictability of and
potential fluctuation in future revenues and operating results, increased competition
from low-cost foreign manufacturers and other "Risk Factors" set forth in the company's
most recent SEC filings.
TTM Technologies, Inc. is North America's largest 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 First Quarter 2008