• TTM Technologies, Inc. Reports Fiscal Third Quarter 2023 Results

    Источник: Nasdaq GlobeNewswire / 01 ноя 2023 08:00:00   America/New_York

    SANTA ANA, Calif., Nov. 01, 2023 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (NASDAQ: TTMI), a leading global manufacturer of technology solutions including mission systems, radio frequency (“RF”) components and RF microwave/microelectronic assemblies, and printed circuit boards (“PCB”), today reported results for the third quarter fiscal 2023, which ended on October 2, 2023.  

    Third Quarter 2023 Highlights

    • Net sales were $572.6 million
    • GAAP net loss of $37.1 million, or ($0.36) per diluted share, inclusive of a goodwill impairment charge of $44.1 million
    • Non-GAAP net income was $44.9 million, or $0.43 per diluted share
    • Cash flow from operations was $58.9 million
    • Repurchased 1 million shares of common stock for $14.6 million at an average price of $14.33 per share

    Third Quarter 2023 GAAP Financial Results

    Net sales for the third quarter of 2023 were $572.6 million, compared to $671.1 million in the third quarter of 2022.

    GAAP operating loss for the third quarter of 2023 was $10.2 million, inclusive of a $44.1 million goodwill impairment charge related to the RF&S Components segment. This compares to GAAP operating income of $49.8 million in the third quarter of 2022.

    GAAP net loss for the third quarter of 2023 was $37.1 million, or ($0.36) per diluted share, compared to GAAP net income of $43.5 million, or $0.42 per diluted share in the third quarter of 2022.

    Third Quarter 2023 Non-GAAP Financial Results
            
    On a non-GAAP basis, net income for the third quarter of 2023 was $44.9 million, or $0.43 per diluted share. This compares to non-GAAP net income of $57.9 million, or $0.56 per diluted share, for the third quarter of 2022.

    Adjusted EBITDA in the third quarter of 2023 was $84.1 million, or 14.7% of sales compared to adjusted EBITDA of $102.5 million, or 15.3% of sales for the third quarter of 2022.

    “Our Non-GAAP EPS was well above the guided range as a result of improved execution, particularly in our North America region and strength in our Data Center Computing end market,” said Tom Edman, CEO of TTM. “In addition, cash flow from operations was a healthy 10.3% of revenue enabling us to repurchase stock while maintaining a solid balance sheet with a net leverage ratio of 1.5x,” concluded Mr. Edman.

    Business Outlook

    For the fourth quarter of 2023, TTM estimates that revenues will be in the range of $550 million to $590 million, and non-GAAP net income will be in the range of $0.34 to $0.40 per diluted share.

    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 has not been provided because the Company is unable to provide such reconciliation without unreasonable effort. For the same reasons, TTM is unable to address the probable significance of the information.

    Live Webcast/Conference Call
    TTM will host a conference call and webcast to discuss third quarter 2023 results and the fourth quarter 2023 outlook on Wednesday, November 1st, 2023, at 10:00 a.m. Eastern Time (7:00 a.m. Pacific Time). The conference call will include forward-looking statements.

    Access to the conference call is available by clicking on the registration link TTM Technologies, Inc. third quarter fiscal year 2023 conference call. Registering participants will receive dial in information and a unique PIN to join the call. Participants can register at any time up to the start of the conference call. The conference call will also be simulcast on the company’s website, and can be accessed by clicking on the link TTM Technologies, Inc. third quarter fiscal year 2023 webcast. The webcast will remain accessible for one week following the live event.

    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 TTM Technologies, Inc. third quarter fiscal year 2023 webcast.

    About TTM
    TTM Technologies, Inc. is a leading global manufacturer of technology solutions including mission systems, RF components/RF microwave/microelectronic assemblies, 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-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, 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
    To supplement our consolidated condensed financial statements presented on a GAAP basis, 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 reconciliations below 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.

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

    TTM TECHNOLOGIES, INC.
    Selected Unaudited Financial Information
    (In thousands, except per share data)
                 
                 
    CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS Third Quarter First Three Quarters
           2023   2022   2023   2022 
                 
                 
                 
     Net sales  $572,582  $671,080  $1,663,528  $1,877,890 
     Cost of goods sold  459,312   542,513   1,365,628   1,541,327 
                 
     Gross profit     113,270   128,567   297,900   336,563 
                 
     Operating expenses:        
      Selling and marketing  18,763   19,824   58,245   55,653 
      General and administrative  38,916   40,743   111,829   121,863 
      Research and development  6,173   7,322   19,682   18,110 
      Amortization of definite-lived intangibles  11,429   10,273   37,245   26,822 
      Restructuring charges  4,091   627   19,061   1,267 
      Impairment of goodwill  44,100   -   44,100   - 
       Total operating expenses  123,472   78,789   290,162   223,715 
                 
     Operating (loss) income     (10,202)  49,778   7,738   112,848 
                 
     Interest expense  (10,101)  (10,939)  (34,751)  (33,011)
     Loss on extinguishment of debt     -   -   (1,154)  - 
     Gain on sale of subsidiary     -   -   1,270   - 
     Other, net   3,044   10,324   9,310   19,932 
                 
     (Loss) income before income taxes     (17,259)  49,163   (17,587)  99,769 
     Income tax provision     (19,807)  (5,635)  (18,469)  (11,203)
                 
     Net (loss) income    $(37,066) $43,528  $(36,056) $88,566 
                 
     (Loss) earnings per share:           
      Basic  $(0.36) $0.43  $(0.35) $0.87 
      Diluted  (0.36)  0.42   (0.35)  0.85 
                 
     Weighted-average shares used in computing per share amounts:        
      Basic   103,510   102,196   102,873   102,016 
      Diluted  103,510   103,720   102,873   103,738 
                 
     Reconciliation of the denominator used to calculate basic earnings per share and diluted earnings per share:      
     Weighted-average shares outstanding  103,510   102,196   102,873   102,016 
     Dilutive effect of warrants  -   -   -   2 
     Dilutive effect of performance-based stock units, restricted stock units & stock options  -   1,524   -   1,720 
     Diluted shares  103,510   103,720   102,873   103,738 
                 


    SELECTED BALANCE SHEET DATA  October 2, 2023 January 2, 2023 
     Cash and cash equivalents, including restricted cash $ 408,331 $ 402,749 
     Accounts and notes receivable, net 390,902 473,225 
     Receivable from sale of SH E-MS property 6,554 69,240 
     Contract assets 304,279 335,788 
     Inventories 206,176 170,639 
     Total current assets 1,353,236 1,493,056 
     Property, plant and equipment, net 808,371 724,204 
     Operating lease right of use asset 89,290
    		 18,862 
     Other non-current assets 1,015,605 1,087,482 
     Total assets 3,266,502 3,323,604 
              
     Short-term debt, including current portion of long-term debt $ 2,625 $ 50,000 
     Accounts payable 336,070 361,788 
     Total current liabilities 688,286 761,325 
     Debt, net of discount 864,824 879,407 
     Total long-term liabilities 1,077,102 1,026,700 
     Total equity 1,501,114 1,535,579 
     Total liabilities and equity 3,266,502 3,323,604 
              


    SUPPLEMENTAL DATAThird Quarter First Three Quarters
         2023   2022  2023 2022 
     Gross margin 19.8%  19.2% 17.9% 17.9%
     Operating margin (1.8)%  7.4% 0.5% 6.0%
               
     End Market Breakdown:       
        Third Quarter    
         2023   2022     
      Aerospace and Defense 45%  38%    
      Automotive 15%  15%    
      Data Center Computing 17%  14%    
      Medical/Industrial/Instrumentation 16%  19%    
      Networking 7%  14%    
               
     Stock-based Compensation:       
        Third Quarter    
      Amount included in: 2023   2022     
       Cost of goods sold$2,212  $1,699     
       Selling and marketing 888   762     
       General and administrative 2,958   2,685     
       Research and development 309   324     
       Total stock-based compensation expense$6,367  $5,470     
               
     Operating Segment Data:       
        Third Quarter    
      Net sales: 2023   2022     
      PCB*$563,676  $657,175     
      RF&S Components 8,906   13,905     
       Total net sales$572,582  $671,080     
               
      Operating segment income:       
      PCB*$82,868  $89,868     
      RF&S Components (41,441)  5,984     
      Corporate & Other* (37,865)  (34,417)    
       Total operating segment income 3,562   61,435     
      Amortization of definite-lived intangibles (13,764)  (11,657)    
       Total operating (loss) income (10,202)  49,778     
       Total other expense (7,057)  (615)    
      (Loss) income before income taxes $(17,259) $49,163     
      * Amended for Telephonics integration       
               


    RECONCILIATIONS1 Third Quarter First Three Quarters
           2023   2022   2023   2022 
                 
     Non-GAAP gross profit reconciliation2:        
      GAAP gross profit   $113,270  $128,567  $297,900  $336,563 
      Add back item:        
       Amortization of definite-lived intangibles  2,335   1,384   10,566   4,151 
       Accelerated depreciation associated with plant closures  725   19   3,374   124 
       Stock-based compensation  2,212   1,699   5,371   4,147 
       Unrealized loss (gain) on commodity hedge   770   385   (491)  4,192 
       Purchase accounting related inventory markup  -   248   327   248 
      Non-GAAP gross profit   $119,312  $132,302  $317,047  $349,425 
      Non-GAAP gross margin  20.8%  19.7%  19.1%  18.6%
                 
     Non-GAAP operating income reconciliation3:        
      GAAP operating (loss) income   $(10,202) $49,778  $7,738  $112,848 
      Add back items:        
       Amortization of definite-lived intangibles  13,764   11,657   47,811   30,973 
       Accelerated depreciation associated with plant closures  725   19   3,374   124 
       Stock-based compensation  6,367   5,470   16,728   14,131 
       Loss (gain) on sale of assets   111   -   (104)  - 
       Unrealized loss (gain) on commodity hedge   770   385   (491)  4,192 
       Purchase accounting related inventory markup  -   248   327   248 
       Impairment, restructuring, acquisition-related and other charges  46,356   655   61,948   12,805 
      Non-GAAP operating income   $57,891  $68,212  $137,331  $175,321 
      Non-GAAP operating margin  10.1%  10.2%  8.3%  9.3%
                 
     Non-GAAP net income and EPS reconciliation4:        
      GAAP net (loss) income   $(37,066) $43,528  $(36,056) $88,566 
      Add back items:        
       Amortization of definite-lived intangibles  13,764   11,657   47,811   30,973 
       Accelerated depreciation associated with plant closures  725   19   3,374   124 
       Stock-based compensation  6,367   5,470   16,728   14,131 
       Non-cash interest expense  502   540   1,726   1,609 
       Loss (gain) on sale of assets   111   -   (104)  (827)
       Change in fair value of warrant liabilities  -   -   -   (99)
       Loss on extinguishment of debt   -   -   1,154   - 
       Gain on sale of subsidiary   -   -   (1,270)  - 
       Unrealized loss (gain) on commodity hedge   770   385   (491)  4,192 
       Purchase accounting related inventory markup  -   248   327   248 
       Impairment, restructuring, acquisition-related and other charges  46,356   655   61,948   12,805 
       Income taxes5  13,353   (4,586)  1,427   (13,236)
      Non-GAAP net income   $44,882  $57,916  $96,574  $138,486 
      Non-GAAP earnings per diluted share $0.43  $0.56  $0.92  $1.33 
                 
     Non-GAAP diluted number of shares:        
      GAAP diluted number of shares  103,510   103,720   102,873   103,738 
      Dilutive effect of performance-based stock units, restricted stock units & stock options 1,419   -   1,809   - 
      Non-GAAP diluted number of shares  104,929   103,720   104,682   103,738 
                 
     Adjusted EBITDA reconciliation6:        
      GAAP net (loss) income   $(37,066) $43,528  $(36,056) $88,566 
      Add back items:        
       Income tax provision   19,807   5,635   18,469   11,203 
       Interest expense  10,101   10,939   34,751   33,011 
       Amortization of definite-lived intangibles  13,764   11,657   47,811   30,973 
       Depreciation expense  23,870   24,017   74,060   67,306 
       Stock-based compensation  6,367   5,470   16,728   14,131 
       Loss (gain) on sale of assets   111   -   (104)  (827)
       Change in fair value of warrant liabilities  -   -   -   (99)
       Loss on extinguishment of debt   -   -   1,154   - 
       Gain on sale of subsidiary   -   -   (1,270)  - 
       Unrealized loss (gain) on commodity hedge   770   385   (491)  4,192 
       Purchase accounting related inventory markup  -   248   327   248 
       Impairment, restructuring, acquisition-related and other charges  46,356   655   61,948   12,805 
      Adjusted EBITDA $84,080  $102,534  $217,327  $261,509 
      Adjusted EBITDA margin  14.7%  15.3%  13.1%  13.9%
                 
     Free cash flow reconciliation:        
      Operating cash flow $58,852  $80,006  $139,814  $195,314 
      Capital expenditures, net  (33,659)  (26,281)  (113,783)  (76,095)
      Free cash flow $25,193  $53,725  $26,031  $119,219 
                 


     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, accelerated depreciation associated with plant closures, stock-based compensation expense, unrealized loss (gain) on commodity hedge, and purchase accounting related inventory markup. 
                  
     3 Non-GAAP operating income and operating margin measures exclude amortization of intangibles, accelerated depreciation associated with plant closures, stock-based compensation expense, loss (gain) on sale of assets, unrealized loss (gain) on commodity hedge, purchase accounting related inventory markup, impairment of goodwill, 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, accelerated depreciation associated with plant closures, stock-based compensation expense, non-cash interest expense on debt (before consideration of capitalized interest), loss (gain) on sale of assets, change in fair value of warrant liabilities, loss on extinguishment of debt, gain on sale of subsidiary, unrealized loss (gain) on commodity hedge, purchase accounting related inventory markup, 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. 
                  
     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 income taxes, interest expense, amortization of intangibles, depreciation, stock-based compensation expense, loss (gain) on sale of assets, change in fair value of warrant liabilities, loss on extinguishment of debt, gain on sale of subsidiary, unrealized loss (gain) on commodity hedge, purchase accounting related inventory markup, 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. 

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