TTMI
$13.67
TTM Technologies I
$.26
1.94%
Earnings Details
3rd Quarter September 2016
Wednesday, October 26, 2016 4:05:17 PM
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Summary

TTM Technologies Guides Earnings Above Estimates

TTM Technologies I (TTMI) reported 3rd Quarter September 2016 earnings of $0.36 per share on revenue of $641.7 million. The consensus earnings estimate was $0.32 per share on revenue of $642.2 million. Revenue fell 1.6% compared to the same quarter a year ago.

The company said it expects fourth quarter earnings of $0.42 to $0.48 per share on revenue of $650.0 million to $690.0 million. The current consensus earnings estimate is $0.33 per share on revenue of $667.8 million for the quarter ending December 31, 2016.

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
$0.36
Earnings Whisper
-
Consensus Estimate
$0.32
Reported Revenue
$641.7 Mil
Revenue Estimate
$642.2 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

TTM Technologies, Inc. Reports Third Quarter 2016 Results

TTM Technologies, Inc. (TTMI), a leading global printed circuit board ("PCB") manufacturer, today reported results for the third quarter 2016, which ended September 26, 2016.

Third Quarter 2016 Highlights

-- Net sales were $641.7 million

GAAP net income attributable to stockholders was $25.6 million, or $0.23 per diluted share

Non-GAAP net income attributable to stockholders was $40.1 million, or $0.39 per diluted share

-- Adjusted EBITDA was $102.2 million

Third Quarter 2016 Financial Results

Net sales for the third quarter of 2016 were $641.7 million, compared to $652.0 million in the third quarter of 2015 and $601.8 million in the second quarter of 2016.

GAAP operating income for the third quarter of 2016 was $50.2 million, compared to $23.6 million in the third quarter of 2015 and $34.7 million in the second quarter of 2016.

GAAP net income attributable to stockholders for the third quarter of 2016 was $25.6 million, or $0.23 per diluted share. This compares to a GAAP net loss attributable to stockholders of $2.2 million, or $0.02 per share, in the third quarter of 2015 and GAAP net income of $18.5 million, or $0.17 per diluted share, in the second quarter of 2016.

On a non-GAAP basis, net income attributable to stockholders for the third quarter of 2016 was $40.1 million, or $0.39 per diluted share. This compares to non-GAAP net income of $23.8 million, or $0.24 per diluted share, for the third quarter of 2015 and $28.4 million, or $0.28 per diluted share, in the second quarter of 2016.

Adjusted EBITDA for the third quarter of 2016 was $102.2 million, or 15.9 percent of net sales, compared to adjusted EBITDA of $87.6 million, or 13.4 percent of net sales, for the third quarter of 2015 and $90.2 million, or 15 percent of net sales, for the second quarter of 2016.

"Our third quarter revenues matched our expectations while profitability was better than forecast driving earnings to the highest level in years," said Tom Edman, CEO of TTM. "Strong operational execution drove non-GAAP earnings above the high end of our guidance. Sequentially, a sharp acceleration in the cellular end market more than offset modest declines in the networking and communications end market, demonstrating the benefits of diversification."

Business Outlook

For the fourth quarter of 2016, TTM estimates that revenue will be in the range of $650 million to $690 million, and non-GAAP net income will be in the range of $0.42 to $0.48 per diluted share. Our fourth quarter will have 14 weeks compared to the normal 13 weeks as fiscal 2016 is a 53 week year.

To Access the Live Webcast/Conference Call

TTM will host a conference call and webcast to discuss third quarter 2016 results and fourth quarter 2016 outlook on Wednesday, October 26, 2016, 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 800-344-6698 or international 785-830-7979 (ID 9216628). 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 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.

TTM TECHNOLOGIES, INC.
Selected Unaudited Financial Information
(In thousands, except per share data)
Third Quarter
Second Quarter
First Three Quarters
2016
2015
2016
2016
2015
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Net sales
$
641,720
$
652,005
$
601,847
$
1,826,825
$
1,426,614
Cost of goods sold
532,158
562,887
504,202
1,536,055
1,224,747
Gross profit
109,562
89,118
97,645
290,770
201,867
Operating expenses:
Selling and marketing
15,643
17,642
16,569
49,518
39,398
General and administrative
35,641
39,456
37,931
109,721
125,455
Amortization of definite-lived intangibles
5,949
6,421
5,949
17,845
12,205
Restructuring charges
2,103
2,003
3,989
8,005
2,512
Impairment of long-lived assets
-
-
-
3,346
-
Gain on sale of assets
-
-
(1,472
)
(1,472
)
(2,504
)
Total operating expenses
59,336
65,522
62,966
186,963
177,066
Operating income
50,226
23,596
34,679
103,807
24,801
Interest expense
(18,873
)
(21,002
)
(20,084 )
(60,741
)
(39,545
)
Loss on extinguishment of debt
-
-
-
-
(802
)
Other, net
3,930
3,998
3,191
8,330
4,264
Income (loss) before income taxes
35,283
6,592
17,786
51,396
(11,282
)
Income tax (provision) benefit
(9,513
)
(8,730
)
979
(14,011
)
(23,993
)
Net income (loss)
$
25,770
$
(2,138
)
$
18,765
$
37,385
$
(35,275
)
Net income attributable to noncontrolling interest
(188
)
(99
)
(217
)
(519
)
(128
)
Net income (loss) attributable to stockholders
$
25,582
$
(2,237
)
$
18,548
$
36,866
$
(35,403
)
Earnings (loss) per share attributable to stockholders:
Basic
$
0.26
$
(0.02
)
$
0.19
$
0.37
$
(0.39
)
Diluted
$
0.23
$
(0.02
)
$
0.17
$
0.36
$
(0.39
)
Weighted-average shares used in computing per share amounts:
Basic
100,245
99,128
100,170
100,004
90,522
Diluted
127,645
99,128
126,950
101,094
90,522
Reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share:
Net income attributable to stockholders
$
25,582
$
18,548
Add back items: interest expense, net of tax
3,321
3,285
Adjusted net income attributable to stockholders
$
28,903
$
21,833
Weighted-average shares outstanding
100,245
100,170
Dilutive effect of convertible debt
25,940
25,940
Dilutive effect of performance-based stock units, restricted stock units and stock options
1,460
840
Diluted shares
127,645
126,950
Earnings per share attributable to stockholders:
Basic
$
0.26
$
0.19
Diluted
$
0.23
$
0.17
SELECTED BALANCE SHEET DATA
September 26, 2016
December 28, 2015
Cash and cash equivalents, including restricted cash
$
291,783
$
262,630
Accounts and notes receivable, net
449,335
454,001
Inventories
281,169
268,923
Total current assets
1,055,988
1,022,520
Property, plant and equipment, net
1,026,213
1,103,067
Other non-current assets
525,025
514,546
Total assets
2,607,226
2,640,133
Short-term debt, including current portion of long-term debt
$
146,473
$
157,375
Accounts payable
370,660
347,916
Total current liabilities
746,867
744,994
Debt, net of discount
935,377
1,013,411
Total long-term liabilities
1,007,244
1,068,470
Total equity
853,115
826,669
Total liabilities and equity
2,607,226
2,640,133
SUPPLEMENTAL DATA
Third Quarter
Second Quarter
First Three Quarters
2016
2015
2016
2016
2015
Gross margin
17.1
%
13.7
%
16.2
%
15.9
%
14.2
%
Operating margin
7.8
%
3.6
%
5.8
%
5.7
%
1.7
%
End Market Breakdown:
Third Quarter
Second Quarter
2016
2015
2016
Aerospace/Defense
15
%
14
%
16
%
Automotive
19
%
17
%
19
%
Cellular Phone
17
%
16
%
10
%
Computing/Storage/Peripherals
12
%
12
%
13
%
Medical/Industrial/Instrumentation
14
%
14
%
16
%
Networking/Communications
21
%
25
%
25
%
Other
2
%
2
%
1
%
Stock-based Compensation:
Third Quarter
Second Quarter
2016
2015
2016
Contact:
Sameer Desai,
Senior Director, Corporate Development & Investor Relations
sameer.desai@ttmtech.com
714-327-3050

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