• TTM Technologies, Inc. Reports Fiscal First Quarter 2021 Results

    Источник: Nasdaq GlobeNewswire / 28 апр 2021 16:05:01   America/New_York

    SANTA ANA, Calif., April 28, 2021 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (NASDAQ:TTMI), a leading global printed circuit board (“PCB”) and radio frequency (“RF”) components and assemblies manufacturer, today reported results for the first quarter of fiscal 2021, which ended on March 29, 2021.  

    First Quarter 2021 Highlights

    • Net sales were $526.4 million
    • GAAP net loss of $3.2 million, or ($0.03) per diluted share
    • Non-GAAP net income was $25.3 million, or $0.23 per diluted share
    • Cash flow from operations was $41.1 million
    • Successful completion of $500 million Senior Notes offering at 4.0% due 2029, redemption of previously issued $375 million Senior Notes at 5.625% due 2025, and repayment of $40 million US ABL

    First Quarter 2021 Financial Results
    Net sales for the first quarter of 2021 were $526.4 million, compared to $497.6 million from continuing operations in the first quarter of 2020.

    GAAP operating income from for the first quarter of 2021 was $19.8 million. This compares to GAAP operating income of $16.2 million from continuing operations in the first quarter of 2020.

    GAAP net loss for the first quarter of 2021 was $3.2 million, inclusive of $15.2 million of debt extinguishment related charges, or ($0.03) per diluted share, compared to net loss of $3.2 million, or ($0.03) per diluted share from continuing operations in the first quarter of 2020.     
            
    On a non-GAAP basis, net income for the first quarter of 2021 was $25.3 million, or $0.23 per diluted share. This compares to non-GAAP net income of $16.7 million, or $0.16 per diluted share from continuing operations in the first quarter of 2020.

    Adjusted EBITDA in the first quarter of 2021 was $61.0 million, or 11.6 percent of net sales, compared to adjusted EBITDA of $60.2 million, or 12.1 percent of net sales, from continuing operations, in the first quarter of 2020.

    “In the first quarter, TTM delivered revenue and non-GAAP earnings above the midpoint of the previously guided range despite significant challenges from COVID-19 and tight supply conditions for certain raw materials. The solid performance was driven by better than expected sales across all end markets led by strong year on year growth from the automotive and data center computing end markets,” said Tom Edman, CEO of TTM. “Additionally, strict financial discipline drove solid operating cash flow in the quarter.   Our improved financial performance enabled us to issue $500 million of new Senior Notes at a lower interest rate and longer tenor than our previous Senior Notes which were redeemed. These achievements reflect the strategic changes made to strengthen TTM, particularly the divestiture of the volatile mobility business which normally caused weak seasonal results in the first half of the year.”

    Business Outlook
    TTM estimates that revenue for the second quarter of 2021 will be in the range of $525 million to $565 million, and non-GAAP net income will be in the range of $0.27 to $0.33 per diluted share.

    Live Webcast/Conference Call
    TTM will host a conference call and webcast to discuss first quarter 2021 results and the second quarter 2021 outlook on Wednesday, April 28th, 2021 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call will include forward-looking statements.

    Telephone access is available by dialing domestic 800-367-2403 or international 334-777-6978 (ID 7087128). The conference call also will be webcast on TTM’s website at www.ttm.com.

    To Access a Replay of the Webcast
    The replay of the webcast will remain accessible for one week following the live event on TTM’s website at www.ttm.com.

    About TTM
    TTM Technologies, Inc. is a leading global printed circuit board manufacturer, focusing on quick-turn and volume production of technologically advanced PCBs and backplane assemblies as well as a global designer and manufacturer of high-frequency radio frequency (RF) and microwave components and assemblies. TTM stands for time-to-market, representing how TTM'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.ttm.com.

    Forward-Looking Statements
    The preliminary financial results included in this press release represent the most current information available to management. The company’s actual results when disclosed in its Form 10-Q may differ from these preliminary results as a result of the completion of the company’s financial closing procedures; final adjustments; completion of the review by the company’s independent registered accounting firm; and other developments that may arise between now and the disclosure of the final results. This release contains forward-looking statements that relate to future events or performance. TTM cautions you that such statements are simply predictions and actual events or results may differ materially. These statements reflect TTM's current expectations, and TTM 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 TTM statements will not be realized. Further, these statements involve risks and uncertainties, many of which are beyond TTM'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 impact of COVID-19, general market and economic conditions, including interest rates, currency exchange rates and consumer spending, demand for TTM's products, market pressures on prices of TTM's products and raw materials used in TTM’s products, warranty claims, changes in product mix, contemplated significant capital expenditures and related financing requirements, TTM's dependence upon a small number of customers and other factors set forth in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's public reports filed with the SEC.

    About Our Non-GAAP Financial Measures
    This release includes information about TTM’s adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share, all of which are non-GAAP financial measures. TTM presents non-GAAP financial information to enable investors to see TTM through the eyes of management and to provide better insight into TTM’s ongoing financial performance.

    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 to similar non-GAAP financial measures used by other companies. TTM 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.

    With respect to the Company’s outlook for non-GAAP net income per diluted share, we are unable to predict with reasonable certainty or without unreasonable effort certain items that may affect a comparable measure calculated and presented in accordance with GAAP. Our expected non-GAAP net income per diluted share excludes primarily the future impact of restructuring actions, impairment charges, unusual gains and losses, and tax adjustments. These reconciling items are highly variable and difficult to predict due to various factors outside of management’s control and could have a material impact on our future period net income per diluted share calculated and presented in accordance with GAAP. Accordingly, a reconciliation of non-GAAP net income per diluted share to a comparable measure calculated and presented in accordance with GAAP is not available without unreasonable effort and has not been provided.

    - Tables Follow -

     
    TTM TECHNOLOGIES, INC.
    Selected Unaudited Financial Information
    (In thousands, except per share data)
             
             
          First Quarter
           2021   2020 
             
    CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS    
             
     Net sales  $526,432  $497,646 
     Cost of goods sold  444,832   416,304 
             
     Gross profit  81,600   81,342 
             
     Operating expenses:    
      Selling and marketing  16,282   16,169 
      General and administrative  28,295   34,339 
      Research and development  4,470   4,762 
      Amortization of definite-lived intangibles  9,521   9,562 
      Restructuring charges  3,232   328 
       Total operating expenses  61,800   65,160 
             
     Operating income  19,800   16,182 
             
     Interest expense  (11,389)  (19,781)
     Loss on extinguishment of debt  (15,217)  - 
     Other, net   2,507   2,502 
             
     Loss from continuing operations before income taxes  (4,299)  (1,097)
     Income tax benefit (provision)  1,107   (2,123)
             
     Net loss from continuing operations  (3,192)  (3,220)
     Income from discontinued operations, net of income taxes  -   2,046 
     Net loss  $(3,192) $(1,174)
             
             
     (Loss) earnings per share:    
      Basic loss per share from continuing operations $(0.03) $(0.03)
      Basic earnings per share from discontinued operations  -   0.02 
       Basic loss per share $(0.03) $(0.01)
             
      Diluted loss per share from continuing operations $(0.03) $(0.03)
      Diluted earnings per share from discontinued operations  -   0.02 
       Diluted loss per share $(0.03) $(0.01)
             
             
     Weighted-average shares used in computing per share amounts:    
      Basic   106,825   105,686 
      Diluted  106,825   105,686 
             
             
    SELECTED BALANCE SHEET DATA     
          March 29, 2021 December 28, 2020
     Cash and cash equivalents, including restricted cash $539,648  $451,565 
     Accounts and notes receivable, net  366,768   381,105 
     Contract assets  271,702   273,256 
     Inventories  121,124   115,651 
     Total current assets  1,332,639   1,248,758 
     Property, plant and equipment, net  651,194   650,435 
     Operating lease right of use asset  21,383   24,340 
     Other non-current assets  960,612   972,411 
     Total assets  2,965,828   2,895,944 
             
     Accounts payable $336,739  $327,102 
     Total current liabilities  509,154   518,046 
     Debt, net of discount  926,128   842,853 
     Total long-term liabilities  1,014,207   933,889 
     Total equity  1,442,467   1,444,009 
     Total liabilities and equity  2,965,828   2,895,944 
             
    SUPPLEMENTAL DATA    
          First Quarter
           2021   2020 
     Gross margin  15.5%  16.3%
     Operating margin  3.8%  3.3%
             
          
          First Quarter
           2021   2020 
     End Market Breakdown, excludes Mobility:     
      Aerospace/Defense  35%  37%
      Automotive  18%  14%
      Data Center Computing  14%  12%
      Medical/Industrial/Instrumentation  17%  19%
      Networking/Communications  15%  17%
      Other   1%  1%
             
          
          First Quarter
     Stock-based Compensation:    2021   2020 
      Amount included in:    
       Cost of goods sold $1,165  $850 
       Selling and marketing  646   451 
       General and administrative  2,355   3,477 
       Research and development  43   57 
       Total stock-based compensation expense $4,209  $4,835 
             
             
          
     Operating Segment Data:   First Quarter
      Net sales:  2021   2020 
      PCB  $510,486  $474,002 
      RF&S   12,690   9,441 
      Other   3,256   14,203 
       Total net sales $526,432  $497,646 
             
      Operating segment income:    
      PCB  $57,232  $60,238 
      RF&S   3,862   1,908 
      Corporate & Other  (30,389)  (35,019)
       Total operating segment income  30,705   27,127 
      Amortization of definite-lived intangibles  (10,905)  (10,945)
       Total operating income  19,800   16,182 
      Total other expense  (24,099)  (17,279)
      Loss from continuing operations before income taxes $(4,299) $(1,097)
             
    RECONCILIATIONS1    
             
          First Quarter
           2021   2020 
     Non-GAAP gross profit reconciliation2:    
      GAAP gross profit from continuing operations $81,600  $81,342 
      Add back item:    
       Amortization of definite-lived intangibles  1,384   1,383 
       Stock-based compensation  1,165   850 
       Restructuring and other charges  254   - 
      Non-GAAP gross profit $84,403  $83,575 
      Non-GAAP gross margin  16.0%  16.8%
             
     Non-GAAP operating income reconciliation3:    
      GAAP operating income from continuing operations $19,800  $16,182 
      Add back items:    
       Amortization of definite-lived intangibles  10,905   10,945 
       Stock-based compensation  4,209   4,835 
       (Gain) on sale of assets  (410)  - 
       Restructuring, acquisition-related, and other charges  3,285   1,596 
      Non-GAAP operating income $37,789  $33,558 
      Non-GAAP operating margin  7.2%  6.7%
             
     Non-GAAP net income and EPS reconciliation4:    
      GAAP net loss from continuing operations $(3,192) $(3,220)
      Add back items:    
       Amortization of definite-lived intangibles  10,905   10,945 
       Stock-based compensation  4,209   4,835 
       Non-cash interest expense  537   3,553 
       (Gain) on sale of assets  (980)  (233)
       Change in fair value of warrant liabilities  (172)  - 
       Loss on extinguishment of debt  15,217   - 
       Restructuring, acquisition-related, and other charges  3,285   1,596 
       Income taxes5  (4,551)  (816)
      Non-GAAP net income $25,258  $16,660 
      Non-GAAP earnings per diluted share $0.23  $0.16 
             
     Non-GAAP diluted number of shares:    
      GAAP Diluted shares  106,825   105,686 
      Dilutive effect of Restricted Stock Units, Performance-based Restricted Stock Units, Stock Options 1,879   1,692 
      Non-GAAP diluted number of shares  108,704   107,378 
             
     Adjusted EBITDA reconciliation6:    
      GAAP net loss from continuing operations $(3,192) $(3,220)
      Add back items:    
       Income tax (benefit) provision  (1,107)  2,123 
       Interest expense  11,389   19,781 
       Amortization of definite-lived intangibles  10,905   10,945 
       Depreciation expense  21,476   24,372 
       Stock-based compensation  4,209   4,835 
       (Gain) on sale of assets  (980)  (233)
       Change in fair value of warrant liabilities  (172)  - 
       Loss on extinguishment of debt  15,217   - 
       Restructuring, acquisition-related, and other charges  3,285   1,596 
      Adjusted EBITDA $61,030  $60,199 
      Adjusted EBITDA margin  11.6%  12.1%
             
     Free cash flow reconciliation7:    
      Operating cash flow $41,145  $6,627 
      Capital expenditures, net  (20,966)  (23,932)
      Free cash flow $20,179  $(17,305)
             
             
     1 This information provides a reconciliation of non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP EPS, and adjusted EBITDA to the financial information in our consolidated condensed statements of operations.
             
     2 Non-GAAP gross profit and gross margin measures exclude amortization of intangibles, stock-based compensation expense, and restructuring and other charges.
             
     3 Non-GAAP operating income and operating margin measures exclude amortization of intangibles, stock-based compensation expense, gain on sale of assets, restructuring, acquisition-related costs, and other charges.
             
     4 This information provides non-GAAP net income and non-GAAP EPS, 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 (before consideration of capitalized interest), gain on sale of assets, change in fair value of warrant liabilities, loss on extinguishment of debt, restructuring, acquisition-related costs, and other charges as well as the associated tax impact of these charges and discrete tax items -- provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations.
             
     5 Income tax adjustments reflect the difference between income taxes based on a non-GAAP tax rate and a forecasted annual GAAP tax rate.
             
     6 Adjusted EBITDA is defined as earnings before interest expense, income taxes, depreciation, amortization of intangibles, stock-based compensation expense, gain on sale of assets, change in fair value of warrant liabilities, loss on extinguishment of debt, restructuring, acquisition-related costs, and other charges. We present adjusted EBITDA to enhance the understanding of our operating results, and it is a key measure we use to evaluate our operations. In addition, we provide our adjusted EBITDA because we believe that investors and securities analysts will find adjusted EBITDA to be a useful measure for evaluating our operating performance and comparing our operating performance with that of similar companies that have different capital structures and for evaluating our ability to meet our future debt service, capital expenditures, and working capital requirements. However, adjusted EBITDA should not be considered as an alternative to cash flows from operating activities as a measure of liquidity or as an alternative to net income as a measure of operating results in accordance with accounting principles generally accepted in the United States of America.
      
     7 Free Cash Flow in 2020 has been restated to exclude the Mobility business which was sold in Q2 of 2020.
             

    Contact:
    Sameer Desai,
    Vice President, Corporate Development & Investor Relations
    Sameer.desai@ttmtech.com
    714-327-3050


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