• TTM Technologies, Inc. Reports Fiscal Fourth Quarter and 2021 Results

    Источник: Nasdaq GlobeNewswire / 09 фев 2022 16:05:01   America/New_York

    SANTA ANA, Calif., Feb. 09, 2022 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (NASDAQ:TTMI), a leading global printed circuit board (“PCB”) and radio frequency (“RF”) components manufacturer, today reported results for the fourth quarter and fiscal 2021, which ended on January 3, 2022.  

    Fourth Quarter 2021 Highlights

    • Net sales were $598.1 million
    • GAAP net income of $8.4 million, or $0.08 per diluted share
    • Non-GAAP net income was $36.2 million, or $0.34 per diluted share
    • Operating cash flow of $62.4 million
    • Repurchased 2.2 million shares of common stock for $29.6 million at an average price of $13.47 per share

    Fourth Quarter 2021 GAAP Financial Results
    Net sales for the fourth quarter of 2021 were $598.1 million, compared to $523.8 million in the fourth quarter of 2020.

    GAAP operating income for the fourth quarter of 2021 was $33.1 million. This compares to GAAP operating income of $29.2 million in the fourth quarter of 2020.

    GAAP net income for the fourth quarter of 2021 was $8.4 million, or $0.08 per diluted share, compared to net income of $39.0 million, or $0.34 per diluted share in the fourth quarter of 2020.     

    Fourth Quarter 2021 Non-GAAP Financial Results        
    On a non-GAAP basis, net income for the fourth quarter of 2021 was $36.2 million, or $0.34 per diluted share. This compares to non-GAAP net income of $40.2 million, or $0.37 per diluted share, for the fourth quarter of 2020.

    Adjusted EBITDA in the fourth quarter of 2021 was $70.4 million, or 11.8 percent of net sales, compared to adjusted EBITDA of $68.2 million, or 13.0% percent of net sales, for the fourth quarter of 2020.

    “In the fourth quarter, TTM achieved revenues above the high end of guidance and non-GAAP earnings at the high end of the guided range. This outperformance was driven by strength in all of our commercial end markets, despite labor and production challenges in North America and tight supply conditions globally for certain raw materials,” said Tom Edman, CEO of TTM.

    Full Year 2021 Financial Results1
    Net sales for fiscal year 2021 increased to $2.25 billion from $2.11 billion from continuing operations in fiscal year 2020, a 6.8% increase. Excluding the two E-MS facilities that were closed at the end of 2020, our revenues grew 10.9% for the year.

    GAAP operating income for fiscal year 2021 was $126.0 million, an increase from GAAP operating income of $28.1 million from continuing operations in fiscal year 2020.

    GAAP net income for fiscal year 2021 was $54.4 million, or $0.50 per diluted share, compared to GAAP net loss of $16.4 million from continuing operations, or ($0.15) per diluted share, for fiscal year 2020.

    On a non-GAAP basis, net income for fiscal year 2021 was $138.0 million, or $1.28 per diluted share. This compares to fiscal year 2020 non-GAAP net income of $116.7 million from continuing operations, or $1.10 per diluted share.

    Adjusted EBITDA for fiscal year 2021 was $275.6 million, or 12.3 percent of net sales, compared to $272.3 million from continuing operations, or 12.9 percent of net sales, for fiscal year 2020. Cash flow from operations for fiscal year 2021 was $176.6 million.

    "Despite the headwinds from materials and labor inflation and availability, COVID-19 and the strengthening Chinese currency, we delivered solid results in 2021 with revenues growing 10.9% year on year excluding divested businesses," continued Edman. “Also in 2021, we generated $176.6 million in operating cash flow which enabled us to strengthen our balance sheet and return capital to our shareholders. For the year we repurchased 4.7 million shares for $64.6 million on our $100 million stock buyback program.”

    Business Outlook
    In the first quarter, we are seeing continued labor challenges along with normal seasonality associated with Chinese New Year and one less week in the quarter compared to the fourth quarter.

    Taking these factors into consideration, TTM estimates that revenue for the first quarter of 2022 will be in the range of $540 million to $580 million, and non-GAAP net income will be in the range of $0.20 to $0.26 per diluted share.

    Live Webcast/Conference Call
    TTM will host a conference call and webcast to discuss fourth quarter 2021 results and the first quarter 2022 outlook on Wednesday, February 9th, 2022 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 888-394-8218 or international 323-794-2588 (ID 1667874). 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-K 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, 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.

    1 In 2020, we completed the sale of the Mobility business so we are comparing 2021 results to 2020 continuing operations, which excludes the Mobility business. The E-MS business is still included in 2020 continuing operations.

     

    - Tables Follow -


    TTM TECHNOLOGIES, INC.
    Selected Unaudited Financial Information
    (In thousands, except per share data)
                  
                  
          Fourth Quarter Full Year 
           2021   2020   2021   2020  
                  
    CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS         
                  
     Net sales  $598,141  $523,802  $2,248,740  $2,105,322  
     Cost of goods sold  500,819   435,829   1,876,729   1,746,299  
                  
     Gross profit  97,322   87,973   372,011   359,023  
                  
     Operating expenses:         
      Selling and marketing  16,271   15,849   63,016   63,882  
      General and administrative  33,790   26,831   124,865   122,477  
      Research and development  5,071   4,604   18,146   19,770  
      Amortization of definite-lived intangibles  8,911   9,589   35,748   38,838  
      Restructuring charges  211   1,934   4,245   16,764  
      Impairment of goodwill  -   -   -   69,200  
       Total operating expenses  64,254   58,807   246,020   330,931  
                  
     Operating income  33,068   29,166   125,991   28,092  
                  
     Interest expense  (11,860)  (14,599)  (45,475)  (73,156) 
     Loss on extinguishment of debt  -   -   (15,217)  -  
     Other, net   (584)  (1,854)  4,754   (1,213) 
                  
     Income (loss) from continuing operations before income taxes  20,624   12,713   70,053   (46,277) 
     Income tax (provision) benefit  (12,237)  26,247   (15,639)  29,891  
                  
     Net income (loss) from continuing operations  8,387   38,960   54,414   (16,386) 
     Income from discontinued operations, net of income taxes  -   -   -   193,921  
     Net income $8,387  $38,960  $54,414  $177,535  
                  
                  
     Earnings (loss) per share:         
      Basic earnings (loss) per share from continuing operations $0.08  $0.36  $0.51  $(0.15) 
      Basic earnings per share from discontinued operations  -   -   -   1.82  
       Basic earnings per share $0.08  $0.36  $0.51  $1.67  
                  
      Diluted earnings (loss) per share from continuing operations $0.08  $0.34  $0.50  $(0.15) 
      Diluted earnings per share from discontinued operations  -   -   -   1.82  
       Diluted earnings per share $0.08  $0.34  $0.50  $1.67  
                  
       
                  
     Weighted-average shares used in computing per share amounts:         
      Basic   104,186   106,755   106,314   106,366  
      Diluted  105,769   113,513   108,153   106,366  
                  
                  
     Reconciliation of the denominator used to calculate basic earnings per share and diluted earnings per share:       
                  
     Weighted-average shares outstanding  104,186   106,755   106,314    
     Dilutive effect of convertible debt  -   5,193   -    
     Dilutive effect of warrants  -   -   200    
     Dilutive effect of performance-based stock units, restricted stock units & stock options 1,583   1,565   1,639    
     Diluted shares  105,769   113,513   108,153    
                  
    SELECTED BALANCE SHEET DATA          
          January 3, 2022 December 28, 2020     
     Cash and cash equivalents, including restricted cash $537,678  $451,565      
     Accounts and notes receivable, net  386,347   381,105      
     Contract assets  324,862   273,256      
     Inventories  127,612   115,651      
     Total current assets  1,407,413   1,248,758      
     Property, plant and equipment, net  665,755   650,435      
     Operating lease right of use asset  20,802   24,340      
     Other non-current assets  931,577   972,411      
     Total assets  3,025,547   2,895,944      
                  
     Accounts payable $361,484  $327,102      
     Total current liabilities  558,148   518,046      
     Debt, net of discount  927,818   842,853      
     Total long-term liabilities  1,011,982   933,889      
     Total equity  1,455,417   1,444,009      
     Total liabilities and equity  3,025,547   2,895,944      
                  
    SUPPLEMENTAL DATA         
          Fourth Quarter Full Year 
           2021   2020   2021   2020  
     Gross margin  16.3%  16.8%  16.5%  17.1% 
     Operating margin  5.5%  5.6%  5.6%  1.3% 
                  
     End Market Breakdown, excludes Mobility:         
          Fourth Quarter     
           2021   2020      
                  
      Aerospace/Defense  30%  36%     
      Automotive  19%  21%     
      Data Center Computing  15%  13%     
      Medical/Industrial/Instrumentation  19%  15%     
      Networking/Communications  16%  15%     
      Other   1%  0%     
                  
     Stock-based Compensation:         
          Fourth Quarter     
           2021   2020      
      Amount included in:         
       Cost of goods sold $1,404  $1,246      
       Selling and marketing  721   620      
       General and administrative  2,806   2,211      
       Research and development  277   35      
       Total stock-based compensation expense $5,208  $4,112      
                  
                  
     Operating Segment Data:         
          Fourth Quarter     
      Net sales:  2021   2020      
      PCB  $581,817  $488,762      
      RF&S Components  16,324   11,382      
      Other1  -   23,658      
       Total net sales $598,141  $523,802      
                  
      Operating segment income:         
      PCB  $70,731  $63,188      
      RF&S Components  6,906   3,209      
      Corporate & Other1  (34,168)  (26,258)     
       Total operating segment income  43,469   40,139      
      Amortization of definite-lived intangibles  (10,401)  (10,973)     
       Total operating income  33,068   29,166      
      Total other expense  (12,444)  (16,453)     
      Income from continuing operations before income taxes $20,624  $12,713      
                  
    RECONCILIATIONS2         
                  
          Fourth Quarter Full Year 
           2021   2020   2021   2020  
     Non-GAAP gross profit reconciliation3:         
      GAAP gross profit from continuing operations $97,322  $87,973  $372,011  $359,023  
      Add back item:         
       Amortization of definite-lived intangibles  1,490   1,384   5,641   5,535  
       Accelerated depreciation  -   899   -   5,835  
       Stock-based compensation  1,404   1,246   4,714   3,889  
       Unrealized gain on commodity hedge  (362)  -   (297)  -  
       Restructuring and other charges  7   -   261   -  
      Non-GAAP gross profit $99,861  $91,502  $382,330  $374,282  
      Non-GAAP gross margin  16.7%  17.5%  17.0%  17.8% 
                  
     Non-GAAP operating income reconciliation4:         
      GAAP operating income from continuing operations $33,068  $29,166  $125,991  $28,092  
      Add back items:         
       Amortization of definite-lived intangibles  10,401   10,973   41,389   44,373  
       Accelerated depreciation  -   1,057   -   6,751  
       Stock-based compensation  5,208   4,112   17,711   16,073  
       (Gain) on sale of assets  -   (97)  (421)  (97) 
       Unrealized gain on commodity hedge  (362)  -   (297)  -  
       Impairments, restructuring, acquisition-related and other charges  800   2,098   5,350   86,237  
      Non-GAAP operating income $49,115  $47,309  $189,723  $181,429  
      Non-GAAP operating margin  8.2%  9.0%  8.4%  8.6% 
                  
     Non-GAAP net income and EPS reconciliation5:         
      GAAP net income (loss) from continuing operations $8,387  $38,960  $54,414  $(16,386) 
      Add back items:         
       Amortization of definite-lived intangibles  10,401   10,973   41,389   44,373  
       Accelerated depreciation  -   1,057   -   6,751  
       Stock-based compensation  5,208   4,112   17,711   16,073  
       Non-cash interest expense  496   2,962   2,109   17,451  
       (Gain) on sale of assets  -   (119)  (991)  (825) 
       Change in fair value of warrant liabilities  (373)  -   (4,241)  -  
       Loss on extinguishment of debt  -   -   15,217   -  
       Unrealized gain on commodity hedge  (362)  -   (297)  -  
       Impairments, restructuring, acquisition-related and other charges  800   2,098   5,350   86,237  
       Income taxes6  11,636   (19,800)  7,373   (36,988) 
      Non-GAAP net income $36,193  $40,243  $138,034  $116,686  
      Non-GAAP earnings per diluted share $0.34  $0.37  $1.28  $1.10  
                  
     Non-GAAP diluted number of shares:         
      GAAP diluted number of shares  105,769   113,513   108,153   106,366  
      Dilutive effect of convertible debt  -   (5,193)  -   -  
      Non-GAAP diluted number of shares  105,769   108,320   108,153   106,366  
                  
     Adjusted EBITDA reconciliation7:         
      GAAP net income (loss) from continuing operations $8,387  $38,960  $54,414  $(16,386) 
      Add back items:         
       Income tax provision (benefit)  12,237   (26,247)  15,639   (29,891) 
       Interest expense  11,860   14,599   45,475   73,156  
       Amortization of definite-lived intangibles  10,401   10,973   41,389   44,373  
       Depreciation expense  22,231   23,775   85,942   99,572  
       Stock-based compensation  5,208   4,112   17,711   16,073  
       (Gain) on sale of assets  -   (119)  (991)  (825) 
       Change in fair value of warrant liabilities  (373)  -   (4,241)  -  
       Loss on extinguishment of debt  -   -   15,217   -  
       Unrealized gain on commodity hedge  (362)  -   (297)  -  
       Impairments, restructuring, acquisition-related and other charges  800   2,098   5,350   86,237  
      Adjusted EBITDA $70,389  $68,151  $275,608  $272,309  
      Adjusted EBITDA margin  11.8%  13.0%  12.3%  12.9% 
                  
     Free cash flow reconciliation8:         
      Operating cash flow $62,369  $55,491  $176,632  $247,714  
      Capital expenditures, net  (19,455)  (18,663)  (80,524)  (93,001) 
      Free cash flow $42,914  $36,828  $96,108  $154,713  
                  
                  
     1Other represents the Shanghai E-MS and Shenzhen plant results. 
                  
     2This 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. 
                  
     3 Non-GAAP gross profit and gross margin measures exclude amortization of intangibles, accelerated depreciation, stock-based compensation expense, unrealized gain on commodity hedge, restructuring and other charges. 
                  
     4 Non-GAAP operating income and operating margin measures exclude amortization of intangibles, accelerated depreciation, stock-based compensation expense, gain on sale of assets, unrealized gain on commodity hedge, impairment of goodwill, restructuring, acquisition-related costs, and other charges. 
                  
     5 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, accelerated depreciation, 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, unrealized gain on commodity hedge, impairment of goodwill, 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. 
                  
     6 Income tax adjustments reflect the difference between income taxes based on a non-GAAP tax rate and a forecasted annual GAAP tax rate. 
                  
     7Adjusted 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, unrealized gain on commodity hedge, impairment of goodwill, 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. 
       
     8 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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