TTM Technologies Inc. Reports 2009 Third Quarter Results
Santa Ana, CA - November 4, 2009 - TTM Technologies, Inc. (Nasdaq: TTMI),
North America's largest printed circuit board (PCB) manufacturer, today reported
results for the third quarter of 2009, ended September 28, 2009.
Third Quarter 2009 Financial Results - GAAP
Third quarter net sales of $139.1 million decreased $5.4 million, or 3.7 percent,
from second quarter net sales of $144.5 million. Net loss for the third quarter
was $4.9 million, or $0.11 per basic share, compared to second quarter net income
of $5.9 million, or $0.14 per diluted share. Excluding non-recurring charges, net
income for the third quarter was $5.5 million, or $0.13 per diluted share.
During the third quarter, TTM recorded non-recurring charges totaling $17.1 million,
or $0.24 per diluted share, primarily related to the closure of the Company's Hayward,
California and Los Angeles, California facilities announced on September 1, 2009
as well as further impairment of its Dallas, Oregon building.
"We are encouraged by the improvement in demand we are experiencing in our PCB business,"
said Kent Alder, President and CEO of TTM. "For the first time in five quarters,
PCB sales increased due to growth with our commercial customers."
Third quarter gross margin of 17.4 percent declined from second quarter gross margin
of 18.7 percent. Excluding $2.6 million of inventory write-down costs related to
the facility closures, gross margin was 19.3 percent.
Operating loss for the third quarter was $5.4 million compared to operating income
of $12.2 million for the second quarter. Excluding non-recurring charges, operating
income for the third quarter was $11.7 million.
"TTM continues to perform solidly in all key financial metrics," Alder said. "With
the restructuring of our North American footprint, we have positioned the company
to better serve customers, improve operating efficiencies and take advantage of
improving market conditions."
Third Quarter 2009 Financial Results - Non-GAAP
Non-GAAP results for the third quarter exclude amortization of intangibles, stock-based
compensation expense, non-cash interest expense, asset impairment and restructuring
charges, inventory write-down related to facility closures and other costs and the
income tax effects related to these expenses.
Third quarter non-GAAP net income was $7.8 million, or $0.18 per diluted share.
This compares to second quarter non-GAAP net income of $8.7 million, or $0.20 per
Excluding asset impairment charges, adjusted EBITDA (earnings before interest, taxes,
depreciation and amortization) for the third quarter was $10.7 million, or 7.7 percent
of net sales, compared with second quarter EBITDA of $18.3 million, or 12.6 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.
Third Quarter Segment Information
TTM Technologies reports two operating segments: PCB Manufacturing and Backplane
For the PCB Manufacturing segment, third quarter net sales (before inter-company
sales) were $123.2 million, compared with $122.6 million in the second quarter.
Third quarter operating segment loss (before amortization of intangibles) was $1.9
million due to non-recurring charges of $14.0 million. Excluding these charges,
third quarter operating income (before amortization of intangibles) for the PCB
Manufacturing segment was $12.1 million compared with operating segment income of
$10.7 million in the second quarter.
For the Backplane Assembly segment, third quarter net sales (before inter-company
sales) were $24.0 million, compared with $29.1 million in the second quarter. Third
quarter operating segment loss (before amortization of intangibles) was $2.6 million
due to non-recurring charges of $3.1 million. Excluding these charges, third quarter
operating income (before amortization of intangibles) for the Backplane Assembly
segment was $0.5 million compared with second quarter operating segment income (before
amortization of intangibles) of $2.3 million.
Cash and cash equivalents and short-term investments at the end of the third quarter
totaled $200.7 million, an increase of $11.3 million from $189.4 million at the
end of the second quarter.
Fourth Quarter Fiscal Year 2009 Forecast
For the fourth quarter of 2009, TTM estimates revenue in a range of $140 million
to $148 million and GAAP earnings in a range from $0.11 to $0.16 per diluted share.
TTM estimates non-GAAP earnings in a range from $0.18 to $0.23 per diluted share.
To Access the Live Webcast/Conference Call
The company will host a conference call to discuss the third quarter results and
the fourth quarter 2009 outlook on November 4, 2009, at 4:30 p.m. Eastern Standard
Time (1:30 p.m. Pacific Standard Time).
To listen to the live webcast, log on to the TTM Technologies website at
www.ttmtech.com. To access the live conference call, dial 408-629-9819 or
To Access a Replay of the Webcast
A digital replay will be available on TTM Technologies' website at
www.ttmtech.com and will remain accessible for one week following the live
A telephone replay also will be available beginning two hours after the conclusion
of the conference call until Nov. 10, 2009. You may access the telephone replay
by dialing 303-590-3030 or 800-406-7325 and entering confirmation code 4177386#.
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 and restructuring charges, inventory write-down related to facility
closures and other costs 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. Reports Third Quarter 2009
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