TTM Technologies, Inc. Reports Second Quarter 2008 Results
Santa Ana, CA - July 29, 2008 - TTM Technologies, Inc. (Nasdaq: TTMI), North
America's largest printed circuit board (PCB) manufacturer, today reported results
for the second quarter of 2008, ended June 30, 2008.
Financial & Operational Highlights
- Second quarter 2008 net sales of $173.0 million were in line with the Company's
guidance, and gross margin of 21.1 percent exceeded the Company's guidance.
- The Company completed a successful convertible debt offering and used a portion
of the proceeds to retire the remaining balance of the term loan debt associated
with the Printed Circuit Group acquisition.
Second Quarter 2008 Financial Results
Kent Alder, President and CEO of TTM, noted, "Results for the second quarter continued
our long history of delivering solid financial performance. Our gross margin and
our diluted earnings per share, when adjusted for costs related to repaying our
debt, exceeded our expectations." Alder continued, "The Aerospace/Defense end market
showed continued strength, and we again saw strong demand for our high tech manufacturing
Second quarter net sales of $173.0 million decreased from first quarter 2008 net
sales of $174.1 million and were in line with the Company's guidance.
Second quarter 2008 gross margin of 21.1 percent declined slightly from first quarter
2008 gross margin of 21.6 percent but exceeded the high end of the guidance range.
Selling and marketing expense for the second quarter was $7.8 million, representing
4.5 percent of net sales. This is consistent with first quarter selling and marketing
expense of $7.7 million, representing 4.4 percent of net sales.
Second quarter general and administrative expense, including amortization of intangibles,
was $9.8 million, representing 5.7 percent of net sales. This compares to general
and administrative expense, including amortization of intangibles, for the first
quarter of $9.2 million, representing 5.3 percent of sales. General and administrative
expense increased in the second quarter due to higher incentive compensation and
stock-based compensation expense.
Operating expenses totaled $17.5 million in the second quarter. During the first
quarter of 2008, TTM reduced operating expenses by $3.7 million due to a metal reclamation
recovery. Absent this reduction in expense, first quarter operating expenses would
have totaled $16.9 million.
TTM posted second quarter operating income of $19.1 million, which compares to first
quarter operating income of $24.4 million, which included the aforementioned $3.7
million metal reclamation recovery.
Other expense in the second quarter was $4.1 million compared to $1.6 million in
the first quarter. This increase is largely attributable to the write-off of the
remaining financing costs and the unwinding of a hedge related to the Company's
term loan, which was repaid in May with the proceeds from the convertible debt offering.
TTM recorded $1.9 million in expense to amortize the remaining financing costs and
$1.2 million to unwind the hedge.
Second quarter net income of $9.4 million, or $0.22 per diluted share, was in line
with guidance and compares with first quarter net income of $14.4 million, or $0.34
per diluted share. Net income in the first quarter benefited by $3.7 million, or
about $0.05 per diluted share, from the metal reclamation recovery. Net income decreased
in the second quarter by $3.1 million, or about $0.04 per diluted share, due to
the costs discussed above related to the term loan repayment.
EBITDA (earnings before interest, taxes, depreciation and amortization) for the
second quarter was $24.5 million, or 14.1 percent of sales, compared with first
quarter EBITDA of $31.0 million, or 17.8 percent of sales. (A reconciliation of
this non-GAAP measure is provided after the GAAP financial statements accompanying
this press release.)
Second Quarter Segment Information - PCB Manufacturing and Backplane Assembly
TTM Technologies reports two operating segments: PCB Manufacturing and Backplane
For the PCB Manufacturing segment, second quarter net sales (before inter-company
sales) were $149.6 million, compared with $148.7 million in the first quarter. Second
quarter operating segment income (before amortization of intangibles) was $17.8
million, compared with $22.7 million in the first quarter.
For the Backplane Assembly segment, second quarter net sales (before inter-company
sales) were $31.2 million, compared with $32.6 million for the first quarter. Second
quarter operating segment income (before amortization of intangibles) was $2.2 million,
compared with $2.7 million in the first quarter.
Cash and cash equivalents at the end of the second quarter totaled $118.7 million,
compared with $32.6 million at the end of the first quarter. The substantial increase
in cash is primarily attributable to the successful convertible debt offering the
Company completed during the quarter.
Third Quarter Fiscal Year 2008 Forecast
For the third quarter of 2008, TTM estimates revenues in a range of $163 million
to $171 million and earnings in a range of $0.19 to $0.25 per diluted share.
To Access the Live Web Cast/Conference Call
The company will host a conference call to discuss the second quarter results and
third quarter outlook on July 29, 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 303-262-2137
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 August 5, 2008. You may access the telephone replay
by dialing 303-590-3000 or 800-405-2236 and entering confirmation code 11117066#.
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 http://www.ttmtech.com.
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TTM Technologies, Inc. Reports Second Quarter