TTMI
$16.34
TTM Technologies I
$.56
3.55%
Earnings Details
3rd Quarter September 2017
Wednesday, November 01, 2017 4:06:10 PM
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Summary

TTM Technologies Guides In-line

TTM Technologies I (TTMI) reported 3rd Quarter September 2017 earnings of $0.19 per share on revenue of $666.8 million. The consensus earnings estimate was $0.21 per share on revenue of $652.5 million. Revenue grew 3.9% on a year-over-year basis.

The company said it expects fourth quarter non-GAAP earnings of $0.49 to $0.55 per share on revenue of $700.0 million to $750.0 million. The current consensus earnings estimate is $0.52 per share on revenue of $714.5 million for the quarter ending December 31, 2017.

TTM Technologies, Inc., provides time-critical and technologically complex printed circuit board products and backplane assemblies, which serve as the foundation of sophisticated electronic products.

Results
Reported Earnings
$0.19
Earnings Whisper
-
Consensus Estimate
$0.21
Reported Revenue
$666.8 Mil
Revenue Estimate
$652.5 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

TTM Technologies, Inc. Reports Fiscal Third Quarter 2017 Results

TTM Technologies, Inc. (TTMI), a leading global printed circuit board ("PCB") manufacturer, today reported results for the third quarter of fiscal 2017, which ended October 2nd, 2017.

Third Quarter 2017 Highlights

-- Net sales were $666.8 million

GAAP net income attributable to stockholders was $21.5 million, or $0.19 per diluted share

Non-GAAP net income attributable to stockholders was $33.4 million, or $0.32 per diluted share

Excluding a $7.4 million (non-cash) foreign exchange loss, non-GAAP earnings per diluted share were $0.38

-- Adjusted EBITDA was $85.7 million

Third Quarter 2017 Financial Results

Net sales for the third quarter of 2017 were $666.8 million, compared to $641.7 million in the third quarter of 2016 and $627.2 million in the second quarter of 2017.

GAAP operating income for the third quarter of 2017 was $44.1 million, compared to $50.2 million in the third quarter of 2016 and $45.1 million in the second quarter of 2017.

GAAP net income attributable to stockholders for the third quarter of 2017 was $21.5 million, or $0.19 per diluted share. This compares to a GAAP net income attributable to stockholders of $25.6 million, or $0.23 per diluted share, in the third quarter of 2016 and a GAAP net income of $20.6 million, or $0.18 per diluted share, in the second quarter of 2017.

On a non-GAAP basis, net income attributable to stockholders for the third quarter of 2017 was $33.4 million, or $0.32 per diluted share. This compares to non-GAAP net income attributable to stockholders of $40.1 million, or $0.39 per diluted share, for the third quarter of 2016 and $33.3 million, or $0.31 per diluted share, in the second quarter of 2017.

Adjusted EBITDA for the third quarter of 2017 was $85.7 million, or 12.9 percent of net sales, compared to adjusted EBITDA of $102.2 million, or 15.9 percent of net sales, for the third quarter of 2016 and $85.5 million, or 13.6 percent of net sales, for the second quarter of 2017.

"TTM delivered the fourth consecutive quarter of year on year organic growth with revenues and operating performance that exceeded our expectations," said Tom Edman, CEO of TTM. "On a year over year basis, the fastest growth in the third quarter came from the computing, automotive and the aerospace and defense end markets. Absent a foreign exchange loss due to the weakening U.S. dollar, non-GAAP EPS was above the high end of guidance."

Business Outlook

For the fourth quarter of 2017, TTM estimates that revenue will be in the range of $700 million to $750 million, and non-GAAP net income attributable to stockholders will be in the range of $0.49 to $0.55 per diluted share.

To Access the Live Webcast/Conference Call

TTM will host a conference call and webcast to discuss third quarter 2017 results and fourth quarter 2017 outlook on Wednesday, November 1st, 2017, 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 877-830-2636 or international 785-424-1802 (ID 9611659). 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, backplane assemblies and electro-mechanical solutions. 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

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, 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 attributable to stockholders per diluted share, we are unable to predict with reasonable certainty or without unreasonable effort certain items that may affect such measure calculated and presented in accordance with GAAP. Our expected non-GAAP net income attributable to stockholders 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 attributable to stockholders per diluted share calculated and presented in accordance with GAAP. Accordingly, a reconciliation of non-GAAP net income attributable to stockholders per diluted share to such measure calculated and presented in accordance with GAAP is not available without unreasonable effort and has not been provided.

Contact:

Sameer Desai,

Senior Director, Corporate

Development & Investor Relations

Sameer.desai@ttmtech.com

714-327-3050

- Tables Follow -

TTM TECHNOLOGIES, INC.
Selected Unaudited Financial Information
(In thousands, except per share data)
Third Quarter
Second Quarter
First Three Quarters
2017
2016
2017
2017
2016
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Net sales
$
666,814
$
641,720
$
627,182
$
1,919,243
$
1,826,825
Cost of goods sold
569,980
532,158
531,315
1,621,523
1,536,055
Gross profit
96,834
109,562
95,867
297,720
290,770
Operating expenses:
Selling and marketing
16,269
15,643
15,851
48,775
49,518
General and administrative
30,018
35,641
29,885
90,725
109,721
Amortization of definite-lived intangibles
5,905
5,949
5,910
17,727
17,845
Restructuring charges
100
2,103
416
1,125
8,005
Impairment of long-lived assets
-
-
-
-
3,346
(Gain)/loss on sale of assets
452
-
(1,251
)
(2,348
)
(1,472
)
Total operating expenses
52,744
59,336
50,811
156,004
186,963
Operating income
44,090
50,226
45,056
141,716
103,807
Interest expense
(13,598
)
(18,873
)
(12,922 )
(40,116
)
(60,741
)
Loss on extinguishment of debt
(768
)
-
(1
)
(769
)
-
Other, net
(6,984
)
3,930
(5,824
)
(14,518
)
8,330
Income before income taxes
22,740
35,283
26,309
86,313
51,396
Income tax provision
(1,205
)
(9,513
)
(5,558
)
(10,902
)
(14,011
)
Net income (loss)
$
21,535
$
25,770
$
20,751
$
75,411
$
37,385
Net income attributable to noncontrolling interest
(82
)
(188
)
(160
)
(408
)
(519
)
Net income (loss) attributable to stockholders
$
21,453
$
25,582
$
20,591
$
75,003
$
36,866
Earnings (loss) per share attributable to stockholders:
Basic
$
0.21
$
0.26
$
0.20
$
0.74
$
0.37
Diluted
$
0.19
$
0.23
$
0.18
$
0.65
$
0.36
Weighted-average shares used in computing per share amounts:
Basic
101,814
100,245
101,756
101,501
100,004
Diluted
131,596
127,645
133,224
131,914
101,094
Reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share:
Net income attributable to stockholders
$
21,453
$
25,582
$
20,591
$
75,003
Add back items: interest expense, net of tax
3,469
3,321
3,432
10,296
Adjusted net income attributable to stockholders
$
24,922
$
28,903
$
24,023
$
85,299
Weighted-average shares outstanding
101,814
100,245
101,756
101,501
Dilutive effect of convertible debt
25,939
25,940
25,940
25,939
Dilutive effect of warrants
2,151
3,924
2,753
Dilutive effect of performance-based stock units, restricted stock units & stock options
1,692
1,460
1,604
1,721
Diluted shares
131,596
127,645
133,224
131,914
Earnings per share attributable to stockholders:
Basic
$
0.21
$
0.26
$
0.20
$
0.74
Diluted
$
0.19
$
0.23
$
0.18
$
0.65
SELECTED BALANCE SHEET DATA
October 2, 2017
January 2, 2017
Cash and cash equivalents, including restricted cash
$
301,934
$
256,277
Accounts and notes receivable, net
475,056
432,788
Inventories
295,279
269,212
Total current assets
1,110,961
1,012,841
Property, plant and equipment, net
1,052,779
966,638
Other non-current assets
510,204
520,597
Total assets
2,673,944
2,500,076
Short-term debt, including current portion of long-term debt
$
4,184
$
110,652
Accounts payable
422,549
371,610
Total current liabilities
672,783
689,065
Debt, net of discount
974,161
909,030
Total long-term liabilities
1,048,614
981,886
Total equity
952,547
829,125
Total liabilities and equity
2,673,944
2,500,076
SUPPLEMENTAL DATA
Third Quarter
Second Quarter
First Three Quarters
2017
2016
2017
2017
2016
Gross margin
14.5
%
17.1
%
15.3
%
15.5
%
15.9
%
Operating margin
6.6
%
7.8
%
7.2
%
7.4
%
5.7
%
End Market Breakdown:
Third Quarter
Second Quarter
2017
2016
2017
Aerospace/Defense
16
%
15
%
17
%
Automotive
20
%
19
%
20
%
Cellular Phone
17
%
17
%
13
%
Computing/Storage/Peripherals
14
%
12
%
14
%
Medical/Industrial/Instrumentation
14
%
14
%
15
%
Networking/Communications
17
%
21
%
20
%
Other
2
%
2
%
1
%
Stock-based Compensation:
Third Quarter
Second Quarter

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