• TTM Technologies, Inc. Reports Fiscal Second Quarter 2022 Results

    Источник: Nasdaq GlobeNewswire / 03 авг 2022 16:05:01   America/New_York

    SANTA ANA, Calif., Aug. 03, 2022 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (NASDAQ: TTMI), a leading global manufacturer of technology solutions including engineered systems, radio frequency (“RF”) components and RF microwave/microelectronic assemblies, and printed circuit boards (“PCB”), today reported results for the second quarter fiscal 2022, which ended on July 4, 2022.  

    Second Quarter 2022 Highlights

    • Net sales were $625.6 million
    • GAAP net income of $27.8 million, or $0.27 per diluted share
    • Non-GAAP net income was $55.3 million, or $0.54 per diluted share
    • Operating cash flow of $79.3 million; free cash flow of $52.9 million.
    • Completed the acquisition of Telephonics on June 27th, 2022
    • Broke ground on manufacturing plant in Malaysia
    • Completed $100 million stock buy-back program

    Second Quarter 2022 GAAP Financial Results

    Net sales for the second quarter of 2022 were $625.6 million, compared to $567.4 million in the second quarter of 2021.

    GAAP operating income for the second quarter of 2022 was $37.2 million. This compares to GAAP operating income of $40.9 million in the second quarter of 2021.

    GAAP net income for the second quarter of 2022 was $27.8 million, or $0.27 per diluted share, compared to GAAP net income of $28.3 million, or $0.26 per diluted share in the second quarter of 2021.     

    As the Telephonics acquisition closed near the end of second quarter, its contributions to the results for the quarter were immaterial.

    Second Quarter 2022 Non-GAAP Financial Results        
    On a non-GAAP basis, net income for the second quarter of 2022 was $55.3 million, or $0.54 per diluted share. This compares to non-GAAP net income of $40.0 million, or $0.36 per diluted share, for the second quarter of 2021.

    Adjusted EBITDA in the second quarter of 2022 was $96.9 million compared to adjusted EBITDA of $75.6 million for the second quarter of 2021.

    “In the second quarter, TTM delivered robust growth in revenues and non-GAAP earnings, both well above the high end of the guided range,” said Tom Edman, CEO of TTM.   “We saw a significant improvement in both operating margins and cash flow in the quarter. The outperformance was driven by strength in our commercial end markets, improved product mix, and productivity improvements in North America.”

    “We also took a major step to advance our strategy of differentiation with the closing of the acquisition of Telephonics Corporation,” continued Mr. Edman. “This provides TTM with engineered system-level solutions for the Aerospace and Defense end market and expands our capabilities and service offerings while moving TTM further up the value chain. Post this transaction, which was entirely funded from balance sheet cash, our net leverage stands at a healthy 2.2x. Going forward, the Aerospace and Defense end market will represent approximately 40% of our revenues, providing growth and stability and reduced sensitivity to business cycles across the TTM portfolio. Finally, we broke ground on a new manufacturing facility in Malaysia which enables TTM to offer our customers a regional alternative for high volume, high layer count PCBs to meet their supply chain resiliency requirements.”

    Business Outlook
    TTM estimates that revenue for the third quarter of 2022 will be in the range of $655 million to $695 million, and non-GAAP net income will be in the range of $0.41 to $0.47 per diluted share. This guidance includes a full quarter of revenue and profit from the acquisition of Telephonics that closed at the end of our second quarter.

    Live Webcast/Conference Call
    TTM will host a conference call and webcast to discuss second quarter 2022 results and the third quarter 2022 outlook on Wednesday, August 3rd, 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 888-220-8451 or international 323-794-2588 (ID 1990598). 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 manufacturer of technology solutions including engineered systems, RF components and RF microwave/microelectronic assemblies, and quick-turn and technologically advanced PCBs. 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.

    - Tables Follow -

    TTM TECHNOLOGIES, INC.
    Selected Unaudited Financial Information
    (In thousands, except per share data)
                    
                    
     Second Quarter
     First Two Quarters
     2022 2021 2022 2021
                    
    CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS               
                    
    Net sales$625,550  $567,383  $1,206,810  $1,093,815 
    Cost of goods sold 508,477   467,473   998,814   912,305 
                    
    Gross profit 117,073   99,910   207,996   181,510 
                    
    Operating expenses:               
    Selling and marketing 17,557   14,605   35,829   30,887 
    General and administrative 48,350   30,634   81,120   58,929 
    Research and development 5,233   4,182   10,788   8,652 
    Amortization of definite-lived intangibles 8,275   9,042   16,549   18,563 
    Restructuring charges 456   559   640   3,791 
    Total operating expenses 79,871   59,022   144,926   120,822 
                    
    Operating income 37,202   40,888   63,070   60,688 
                    
    Interest expense (10,711)  (11,079)  (22,072)  (22,468)
    Loss on extinguishment of debt -   -   -   (15,217)
    Other, net 7,638   306   9,608   2,813 
                    
    Income before income taxes 34,129   30,115   50,606   25,816 
    Income tax provision (6,337)  (1,854)  (5,568)  (747)
                    
    Net income$27,792  $28,261  $45,038  $25,069 
                    
                    
    Earnings per share:               
    Basic$0.27  $0.26  $0.44  $0.23 
    Diluted 0.27   0.26   0.43   0.23 
                    
                    
                    
    Weighted-average shares used in computing per share amounts:               
    Basic 101,270   107,148   101,941   106,987 
    Diluted 103,221   109,795   103,762   109,250 
                    
                    
    Reconciliation of the denominator used to calculate basic earnings per share and diluted earnings per share:               
                    
    Weighted-average shares outstanding 101,270   107,148   101,941   106,987 
    Dilutive effect of warrants -   802   3   401 
    Dilutive effect of performance-based stock units, restricted stock units & stock options 1,951   1,845   1,818   1,862 
    Diluted shares 103,221   109,795   103,762   109,250 
                    
    SELECTED BALANCE SHEET DATA                
     July 4, 2022
     January 3, 2022
            
    Cash and cash equivalents, including restricted cash$266,546  $537,678         
    Accounts and notes receivable, net 474,829   386,347         
    Contract assets 376,367   324,862         
    Inventories 209,960   127,612         
    Total current assets 1,380,883   1,407,413         
    Property, plant and equipment, net 748,439   665,755         
    Operating lease right of use asset 22,618   20,802         
    Other non-current assets 1,062,711   931,577         
    Total assets 3,214,651   3,025,547         
                    
    Accounts payable$425,135  $361,484         
    Total current liabilities 722,309   558,148         
    Debt, net of discount 928,605   927,818         
    Total long-term liabilities 1,018,262   1,011,982         
    Total equity 1,474,080   1,455,417         
    Total liabilities and equity 3,214,651   3,025,547         
                    
    SUPPLEMENTAL DATA               
     Second Quarter
     First Two Quarters
     2022 2021 2022 2021
    Gross margin 18.7%  17.6%  17.2%  16.6%
    Operating margin 5.9%  7.2%  5.2%  5.5%
                    
    End Market Breakdown:               
     Second Quarter
            
     2022 2021        
                    
    Aerospace/Defense 30%  33%        
    Automotive 18%  18%        
    Data Center Computing 17%  14%        
    Medical/Industrial/Instrumentation 21%  19%        
    Networking/Communications 14%  15%        
    Other 0%  1%        
                    
    Stock-based Compensation:               
                    
     Second Quarter
            
     2022 2021        
    Amount included in:               
    Cost of goods sold$1,172  $861         
    Selling and marketing 620   442         
    General and administrative 2,396   2,015         
    Research and development 239   32         
    Total stock-based compensation expense$4,427  $3,350         
                    
                    
    Operating Segment Data:               
     Second Quarter
            
    Net sales:2022 2021        
    PCB$609,429  $553,480         
    RF&S Components 16,121   13,903         
    Total net sales$625,550  $567,383         
                    
    Operating segment income:               
    PCB$91,908  $73,055         
    RF&S Components 6,678   4,730         
    Corporate & Other1 (51,726)  (26,472)        
    Total operating segment income 46,860   51,313         
    Amortization of definite-lived intangibles (9,658)  (10,425)        
    Total operating income 37,202   40,888         
    Total other expense (3,073)  (10,773)        
    Income before income taxes$34,129  $30,115         
                    
    RECONCILIATIONS2               
                    
     Second Quarter
     First Two Quarters
     2022 2021 2022 2021
    Non-GAAP gross profit reconciliation3:               
    GAAP gross profit$117,073  $99,910  $207,996  $181,510 
    Add back item:               
    Amortization of definite-lived intangibles 1,383   1,383   2,767   2,767 
    Accelerated depreciation 105   -   105   - 
    Stock-based compensation 1,172   861   2,448   2,026 
    Unrealized loss (gain) on commodity hedge 5,210   (99)  3,807   (99)
    Restructuring and other charges -   -   -   254 
    Non-GAAP gross profit$124,943  $102,055  $217,123  $186,458 
    Non-GAAP gross margin 20.0%  18.0%  18.0%  17.0%
                    
    Non-GAAP operating income reconciliation4: 57,329             
    GAAP operating income$37,202  $40,888  $63,070  $60,688 
    Add back items:               
    Amortization of definite-lived intangibles 9,658   10,425   19,316   21,330 
    Accelerated depreciation 105   -   105   - 
    Stock-based compensation 4,427   3,350   8,661   7,559 
    Gain on sale of assets -   (11)  -   (421)
    Unrealized loss (gain) on commodity hedge 5,210   (99)  3,807   (99)
    Restructuring, acquisition-related and other charges 11,012   566   12,150   3,851 
    Non-GAAP operating income$67,614  $55,119  $107,109  $92,908 
    Non-GAAP operating margin 10.8%  9.7%  8.9%  8.5%
                    
    Non-GAAP net income and EPS reconciliation5:               
    GAAP net income$27,792  $28,261  $45,038  $25,069 
    Add back items:               
    Amortization of definite-lived intangibles 9,658   10,425   19,316   21,330 
    Accelerated depreciation 105   -   105   - 
    Stock-based compensation 4,427   3,350   8,661   7,559 
    Non-cash interest expense 537   536   1,069   1,073 
    Gain on sale of assets -   (11)  (827)  (991)
    Change in fair value of warrant liabilities -   (1,027)  (99)  (1,199)
    Loss on extinguishment of debt -   -   -   15,217 
    Unrealized loss (gain) on commodity hedge 5,210   (99)  3,807   (99)
    Restructuring, acquisition-related and other charges 11,012   566   12,150   3,851 
    Income taxes6 (3,424)  (1,958)  (8,650)  (6,509)
    Non-GAAP net income$55,317  $40,043  $80,570  $65,301 
    Non-GAAP earnings per diluted share$0.54  $0.36  $0.78  $0.60 
                    
    Adjusted EBITDA reconciliation7:               
    GAAP net income$27,792  $28,261  $45,038  $25,069 
    Add back items:               
    Income tax provision 6,337   1,854   5,568   747 
    Interest expense 10,711   11,079   22,072   22,468 
    Amortization of definite-lived intangibles 9,658   10,425   19,316   21,330 
    Depreciation expense 21,789   21,241   43,289   42,717 
    Stock-based compensation 4,427   3,350   8,661   7,559 
    Gain on sale of assets -   (11)  (827)  (991)
    Change in fair value of warrant liabilities -   (1,027)  (99)  (1,199)
    Loss on extinguishment of debt -   -   -   15,217 
    Unrealized loss (gain) on commodity hedge 5,210   (99)  3,807   (99)
    Restructuring, acquisition-related and other charges 11,012   566   12,150   3,851 
    Adjusted EBITDA$96,936  $75,639  $158,975  $136,669 
    Adjusted EBITDA margin 15.5%  13.3%  13.2%  12.5%
                    
    Free cash flow reconciliation:               
    Operating cash flow$79,317  $56,909  $115,308  $98,054 
    Capital expenditures, net (26,394)  (22,727)  (49,814)  (43,693)
    Free cash flow$52,923  $34,182  $65,494  $54,361 
                    


    1 Other represents the Shanghai E-MS and Shenzhen plant results.
     
    2 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.
     
    3 Non-GAAP gross profit and gross margin measures exclude amortization of intangibles, accelerated depreciation, stock-based compensation expense, unrealized loss (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 loss (gain) on commodity hedge, 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 loss (gain) on commodity hedge, 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.
     
    7 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, unrealized loss (gain) on commodity hedge, 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.

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