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TTM Technologies, Inc. Reports 2010 First Quarter Results

for immediate release

1Q 2010 Earnings presentation

SANTA ANA, CA - May 6, 2010 - TTM Technologies, Inc. (Nasdaq: TTMI), a major global printed circuit board (PCB) manufacturer, today reported results for the first quarter of 2010, ended March 29, 2010.

2010 Highlights
  • Completed business combination with Meadville Holdings Limited's PCB business, creating one of the largest PCB manufacturers in the world with pro forma 2009 annual revenue of $1.2 billion.
  • Gross margin in the first quarter 2010 expanded to 19.5 percent from 18.5 percent in the fourth quarter 2009.
  • TTM’s average panel price and book to bill improved quarter over quarter as North American PCB demand strengthened.

First Quarter 2010 Financial Results - GAAP
"TTM’s first quarter marks a milestone in our transformation to a stronger, world class leader in PCB manufacturing," said Kent Alder, President and CEO of TTM. "With the completion of the Meadville acquisition, and a restructuring that has better matched our North American footprint to demand, we are now well-positioned to foster future growth in the U.S. and abroad."

First quarter net sales of $138.2 million decreased $11.7 million, or 7.8 percent, from fourth quarter net sales of $149.9 million. The decline in net sales was due primarily to the closure of the Los Angeles, California facility in the fourth quarter as well as the acceleration of order deliveries from the first quarter into the fourth quarter to meet customer requests.

First quarter operating income of $9.9 million was an improvement over fourth quarter operating income of $6.6 million. TTM recorded $2.8 million and $6.8 million in charges related to previously announced plant closures, impairment of long-lived assets and the Meadville Holdings transaction in the first quarter 2010 and fourth quarter 2009, respectively. Net income for the first quarter was $4.5 million, or $0.10 per diluted share, compared to net income in the fourth quarter of $2.4 million, or $0.05 per diluted share.

"With demand improving, and with the restructuring activities we began in 2009 largely completed, we expect to see improving revenue and profitability in the second quarter from our U.S. business," Alder said.

First Quarter 2010 Financial Results - Non-GAAP
Non-GAAP results for the fourth quarter exclude amortization of intangibles, stock-based compensation expense, non-cash interest expense, asset impairment and restructuring charges, inventory write-down, costs related to the Meadville Holdings transaction and miscellaneous closing costs as well as the income tax effects related to these expenses.

First quarter 2010 non-GAAP net income was $8.6 million, or $0.19 per diluted share. This compares to fourth quarter 2009 non-GAAP net income of $8.3 million, or $0.19 per diluted share.

Excluding asset impairment charges, adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization) for the first quarter was $15.1 million, or 10.9 percent of net sales, compared to fourth quarter adjusted EBITDA of $14.7 million, or 9.8 percent of net sales.

First Quarter 2010 Segment Information
TTM Technologies reports two operating segments: PCB Manufacturing and Backplane Assembly.

For the PCB Manufacturing segment, first quarter 2010 net sales (before inter-company sales) were $122.9 million, compared with $128.2 million in the fourth quarter 2009. First quarter operating segment income (before amortization of intangibles) was $10.5 million compared to operating segment income of $5.1 million in the fourth quarter. Excluding charges related to plant closure, impairment of long-lived assets and transaction costs, first quarter operating income (before amortization of intangibles) for the PCB Manufacturing segment would have been $12.9 million for the first quarter compared to fourth quarter operating segment income of $11.8 million.

For the Backplane Assembly segment, first quarter net sales (before inter-company sales) were $21.7 million, compared with $29.3 million in the fourth quarter. First quarter operating segment income (before amortization of intangibles) was $0.2 million compared to operating segment income of $2.4 million in the fourth quarter. Excluding charges related to plant closure, first quarter operating income (before amortization of intangibles) for the Backplane Assembly segment would have been $0.5 million compared to fourth quarter operating segment income of $2.5 million. The decline in operating income in the Backplane Assembly segment is due primarily to the closure of the Hayward, California facility.

Balance Sheet
Cash and cash equivalents, restricted cash and short-term investments at the end of the first quarter totaled $222.9 million, an increase of $7.2 million from $215.7 million at the end of the fourth quarter.

Second Quarter 2010 Forecast
For the second quarter of 2010, TTM estimates revenue will more than double in a range from $290 million to $310 million, GAAP earnings in a range from $0.03 to $0.12 per diluted share and non-GAAP earnings in a range from $0.16 to $0.25 per diluted share, as a result of incorporating Meadville Holdings’ results beginning April 9, 2010. TTM issued 36.3 million shares as part of the Meadville purchase price. As a result, diluted share count for the second quarter will be approximately 76.5 million shares.

To Access the Live Webcast/Conference Call
The company will host a conference call and webcast to discuss the first quarter results and the second quarter 2010 outlook on May 6, 2010, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific 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 1-877-941-8609 or 1-480-629-9818

To Access a Replay of the Webcast
The call and the presentation will be available for replay until May 13, 2010, on TTM Technologies' website at www.ttmtech.com.

A telephone replay also will be available beginning two hours after the conclusion of the conference call. You may access the telephone replay by dialing 1-303-590-3030 or 1-800-406-7325 and entering confirmation code 4283045.

About Our Non-GAAP Financial Measures
This release includes information about the Company's non-GAAP net income and non-GAAP earnings 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, costs related to the Meadville Holdings transaction and miscellaneous closing 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.

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 GAAP.

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.

About TTM
TTM Technologies, Inc. is a major global 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 2010 First Quarter Results

 

 

Company

TTM Technologies
(ticker: TTMI, exchange: NASDAQ)

Release Info

News Release:
05/16/2010

Contact

Steve Richards
Chief Financial Officer
714/241-0303