TTM Technologies, Inc. Reports 2009 First Quarter Results
SANTA ANA, CA - April 30, 2009 - TTM Technologies, Inc. (Nasdaq: TTMI), North
America's largest printed circuit board (PCB) manufacturer, today reported results
for the first quarter of 2009, ended March 30, 2009.
First Quarter 2009 Financial Results - GAAP
First quarter net sales of $149.0 million decreased $15.9 million, or 9.7 percent,
from fourth quarter net sales of $164.9 million.
First quarter gross margin of 16.3 percent declined from fourth quarter gross margin
of 18.6 percent.
During the first quarter, TTM Technologies recorded a restructuring charge of $2.5
million, or $0.04 per diluted share, related to the closure of the Company's Redmond,
WA facility and other layoffs announced January 15, 2009.
Operating income for the first quarter was $5.0 million compared to an operating
loss of $108.9 million for the fourth quarter. Excluding asset impairment and restructuring
charges, operating income for the first quarter was $7.8 million compared to $14.5
million for the fourth quarter.
During the first quarter, TTM Technologies adopted FASB Staff Position APB 14-1,
"Accounting for Convertible Debt Instruments That May be Settled in Cash Upon Conversion
(Including Partial Cash Settlement)" (APB 14-1), which increases the interest expense
on the Company's outstanding convertible debt. The adoption of APB 14-1 resulted
in increased interest expense of $1.1 million for the first quarter of 2009 and
is expected to result in increased expense of approximately $4.6 million for the
full year 2009. The increased interest expense resulting from APB 14-1 is a non-cash
Net income for the first quarter was $1.4 million, or $0.03 per diluted share, compared
to a fourth quarter net loss of $69.2 million, or $1.62 per basic share. Fourth
quarter results have been adjusted to reflect the retroactive impact of APB 14-1.
Kent Alder, President and CEO of TTM, said, "The macroeconomic environment continues
to place unprecedented challenges on global enterprises, with demand for printed
circuit boards continuing to be negatively impacted. Despite the decline in revenue,
however, we generated $12.1 million of cash in the first quarter and continued to
reduce our costs." Commenting on the Company's diversified business model, Alder
added, "The Aerospace/Defense end market was stable and remained a significant contributor
to our success."
First Quarter 2009 Financial Results - Non-GAAP
Non-GAAP results for the first quarter exclude stock-based compensation expense,
amortization of intangibles, restructuring and asset impairment charges, non-cash
interest expense and the income tax effects related to these expenses.
First quarter non-GAAP net income was $5.4 million, or $0.12 per diluted share.
This compares to fourth quarter non-GAAP net income of $9.3 million, or $0.22 per
Excluding asset impairment charges, adjusted EBITDA (earnings before interest, taxes,
depreciation and amortization) for the first quarter was $11.1 million, or 7.5 percent
of net sales, compared with fourth quarter EBITDA of $20.7 million, or 12.5 percent
of net sales.
A reconciliation of the Company's non-GAAP financial measures is provided after
the GAAP financial statements accompanying this press release.
First Quarter Segment Information
TTM Technologies reports two operating segments: PCB Manufacturing and Backplane
For the PCB Manufacturing segment, first quarter net sales (before inter-company
sales) were $132.3 million, compared with $144.2 million in the fourth quarter.
First quarter operating segment income (before amortization of intangibles) was
$4.4 million, compared with an operating segment loss of $107.5 million in the fourth
quarter, due to a fixed asset and goodwill impairment charge of $120.6 million.
Excluding this charge, fourth quarter operating income (before amortization of intangibles)
for the PCB Manufacturing segment was $13.1 million.
For the Backplane Assembly segment, first quarter net sales (before inter-company
sales) were $24.9 million, compared with $31.1 million in the fourth quarter. First
quarter operating segment income (before amortization of intangibles) was $1.5 million,
compared with a fourth quarter operating segment loss (before amortization of intangibles)
of $0.4 million, due to a fixed asset impairment charge of $2.7 million. Excluding
this charge, fourth quarter operating income (before amortization of intangibles)
for the Backplane Assembly segment was $2.3 million.
Cash and cash equivalents and short-term investments at the end of the first quarter
totaled $164.2 million, an increase of $12.1 million from $152.1 million at the
end of the fourth quarter.
Second Quarter Fiscal Year 2009 Forecast
For the second quarter of 2009, TTM estimates revenue in a range of $141 million
to $149 million and GAAP earnings in a range from $0.08 to $0.14 per diluted share.
TTM estimates non-GAAP earnings in a range from $0.13 to $0.19 per diluted share.
To Access the Live Webcast/Conference Call
The company will host a conference call to discuss the first quarter results and
the second quarter 2009 outlook on April 30, 2009, at 4:30 p.m. Eastern Daylight
Time (1:30 p.m. Pacific Daylight Time).
To listen to the live webcast, log on to the TTM Technologies website at
http://www.ttmtech.com. To access the live conference call, dial 303-262-2006
For more information, including this press release, any non-GAAP financial measures
that may be discussed on the webcast as well as the most directly comparable GAAP
financial measures and a reconciliation of the difference between those GAAP and
non-GAAP financial measures, please visit TTM Technologies' website at
To Access a Replay of the Webcast
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, 2009. You may access the telephone replay by
dialing 303-590-3000 or 800-405-2236 and entering confirmation code 11130502#.
About Our Non-GAAP Financial Measures
This release includes information about the Company's non-GAAP adjusted net income
and non-GAAP adjusted net income per share, which are non-GAAP financial measures.
Management believes that both measures - which exclude amortization of intangibles,
stock-based compensation expense, non-cash interest expense on our convertible debt,
asset impairment charges and restructuring charges as well as the associated tax
impact of these charges - provide additional useful information to investors regarding
the Company's ongoing financial condition and results of operations. In addition,
the Company's internal reporting, including information provided to the Company's
Audit Committee and Board of Directors, contains non-GAAP measures.
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 with similar non-GAAP financial measures used by other companies. The
Company 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
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 impact of the current economic crisis, the company's dependence upon a small
number of customers, 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.
- Tables Follow -
TTM Technologies, Inc. Reports First Quarter 2009