TTM Technologies, Inc. Reports 2010 Third Quarter Results
SANTA ANA, CA - November 4, 2010 - TTM Technologies, Inc. (Nasdaq: TTMI),
a major global printed circuit board (PCB) manufacturer, today reported results
for the third quarter of 2010, ended September 27, 2010.
Third Quarter Highlights
- Net sales increased 15 percent sequentially to a record $357.8 million.
- GAAP net income attributable to stockholders grew sequentially to $29.1 million,
or $0.36 per diluted share
- Non-GAAP net income attributable to stockholders increased sequentially 75 percent
to $35.0 million, or $0.43 per diluted share.
- Gross margins increased to 22.5 percent.
- The combination with Meadville Holdings Ltd. was highly accretive to GAAP earnings,
adding $0.15 per diluted share this quarter.
- The integration of the two companies is progressing well.
Net sales for the third quarter of 2010 increased to $357.8 million from $310.2
million in the second quarter of 2010.
Operating income for the third quarter 2010 increased 163 percent to $45.7 million
from $17.4 million in the second quarter. The second quarter results included charges
of $14.6 million related to plant closures, impairment of long-lived assets, transaction
costs, and inventory fair value adjustments.
GAAP net income attributable to stockholders for the third quarter of 2010 was $29.1
million, or $0.36 per diluted share, compared to $4.9 million, or $0.06 per diluted
share for the second quarter of 2010. The results for the third quarter of 2010
included a $1.8 million foreign exchange gain and a decrease in the estimated annual
effective tax rate that combined contributed $0.04 per diluted share.
On a non-GAAP basis, net income attributable to stockholders for the third quarter
of 2010 was $35.0 million, or $0.43 per diluted share. This compares to second quarter
of 2010 non-GAAP net income attributable to stockholders of $19.9 million, or $0.26
per diluted share.
Adjusted EBITDA for the third quarter of 2010 was $62.1 million, or 17.4 percent
of net sales, compared to $32.6 million, or 10.5 percent of net sales for the second
quarter of 2010.
Please refer to the tables below for a reconciliation between GAAP and non-GAAP
net income attributable to stockholders and adjusted EBITDA.
"By all measures our third quarter business performance was outstanding," said Kent
Alder, President and CEO of TTM. "We achieved record revenue and profitability,
exceeding the guidance we provided for the quarter. The recently completed combination
with Meadville has clearly been a transformative event for TTM. Integration is progressing
well as evidenced by the strength of our results for the third quarter."
"Both our North American and Asian facilities continue to experience solid backlogs
and high levels of capacity utilization. Our scale, diversified customer base and
end markets, as well as the strategic initiatives we have taken to date to enhance
operating efficiencies, have combined to drive better results. All of these factors
increase our confidence in our position for long-term growth," concluded Alder.
For the fourth quarter of 2010, TTM estimates revenue will be in the range of $351
million to $367 million, GAAP earnings attributable to stockholders in a range from
$0.28 to $0.35 per diluted share and non-GAAP earnings attributable to stockholders
in a range from $0.35 to $0.42 per diluted share.
To Access the Live Webcast/Conference Call
The company will host a conference call and webcast to discuss the third quarter
results and the fourth quarter 2010 outlook on November 4, 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 1-800-762-8795
To Access a Replay of the Webcast
The call will be available for replay until November 11, 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 4377086.
About Our Non-GAAP Financial Measures
This release includes information about the Company's non-GAAP net income attributable
to stockholders and non-GAAP earnings per share attributable to stockholders, which
are non-GAAP financial measures. Management believes that both measures -- which
add back amortization of intangibles, stock-based compensation expense, non-cash
interest expense on debt, asset impairment and restructuring charges, inventory
adjustments, 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
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 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.
- Tables Follow -
TTM Technologies, Inc. Reports 2010 Third Quarter