Earnings Release
TTM Technologies, Inc. Reports Fiscal First Quarter 2017 Results
TTM Technologies, Inc. (TTMI), a leading global printed circuit board ("PCB") manufacturer, today reported results for the first quarter of fiscal 2017, which ended April 3rd, 2017.
First Quarter 2017 Highlights
-- Net sales were $625.2 million
-- GAAP net income attributable to stockholders was $33 million, or $0.28 per diluted share
• Non-GAAP net income attributable to stockholders was $39.2 million, or $0.37 per diluted share
-- Adjusted EBITDA was $95.6 million
First Quarter 2017 Financial Results
Net sales for the first quarter of 2017 were $625.2 million, compared to $583.3 million in the first quarter of 2016 and $706.5 million in the fourth quarter of 2016.
GAAP operating income for the first quarter of 2017 was $52.6 million, compared to $18.9 million in the first quarter of 2016 and $69.6 million in the fourth quarter of 2016.
GAAP net income attributable to stockholders for the first quarter of 2017 was $33 million, or $0.28 per diluted share. This compares to a GAAP net loss attributable to stockholders of $7.3 million, or $0.07 per share, in the first quarter of 2016 and a GAAP net loss of $2 million, or $0.02 per share, in the fourth quarter of 2016.
On a non-GAAP basis, net income attributable to stockholders for the first quarter of 2017 was $39.2 million, or $0.37 per diluted share. This compares to non-GAAP net income attributable to stockholders of $13.9 million, or $0.14 per diluted share, for the first quarter of 2016 and $59.8 million, or $0.58 per diluted share, in the fourth quarter of 2016.
Adjusted EBITDA for the first quarter of 2017 was $95.6 million, or 15.3 percent of net sales, compared to adjusted EBITDA of $74.5 million, or 12.8 percent of net sales, for the first quarter of 2016 and $128.5 million, or 18.2 percent of net sales, for the fourth quarter of 2016.
"TTM delivered strong organic year on year growth in the first quarter of 7 percent, near the high end of our guidance, and profitability which exceeded our forecast," said Tom Edman, CEO of TTM. "On a year over year basis, most end markets grew, with the fastest growth coming from the cellular, computing and aerospace and defense end markets. This growth, along with strong operational execution, resulted in non-GAAP EPS above the high end of our guidance. These results represent the highest revenue and EBITDA for a first quarter in the history of the company."
Business Outlook
For the second quarter of 2017, TTM estimates that revenue will be in the range of $605 million to $645 million, and non-GAAP net income attributable to stockholders will be in the range of $0.31 to $0.37 per diluted share.
To Access the Live Webcast/Conference Call
TTM will host a conference call and webcast to discuss first quarter 2017 results and second quarter 2017 outlook on Wednesday, May 3rd, 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 888-206-4824 or international 913-312-1522 (ID 1867334). 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.
- Tables Follow -
Selected Unaudited Financial Information
(In thousands, except per share data)
First Quarter
Fourth Quarter
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Net sales
$
625,247
$
583,258
$
706,534
Cost of goods sold
520,228
499,695
573,689
Gross profit
105,019
83,563
132,845
Selling and marketing
16,655
17,306
16,848
General and administrative
30,822
36,149
38,998
Amortization of definite-lived intangibles
5,912
5,947
6,407
Restructuring charges
609
1,913
946
Impairment of long-lived assets
-
3,346
-
Gain on sale of assets
(1,549
)
-
-
Total operating expenses
52,449
64,661
63,199
Operating income
52,570
18,902
69,646
Interest expense
(13,596
)
(21,784
)
(15,267 )
Loss on extinguishment of debt
-
-
(47,767 )
Other, net
(1,710
)
1,209
8,994
Income before income taxes
37,264
(1,673
)
15,606
Income tax provision
(4,139
)
(5,477
)
(17,416 )
Net income (loss)
$
33,125
$
(7,150
)
$
(1,810
)
Net income attributable to noncontrolling interest
(166
)
(114
)
(195
)
Net income (loss) attributable to stockholders
$
32,959
$
(7,264
)
$
(2,005
)
Earnings (loss) per share attributable to stockholders:
Diluted
$
0.28
$
(0.07
)
$
(0.02
)
Weighted-average shares used in computing per share amounts:
Basic
100,932
99,596
100,365
Diluted
130,922
99,596
100,365
Reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share:
Net income attributable to stockholders
$
32,959
Add back items: interest expense, net of tax
3,394
Adjusted net income attributable to stockholders
$
36,353
Weighted-average shares outstanding
100,932
Dilutive effect of convertible debt
25,940
Dilutive effect of warrants
2,183
Dilutive effect of performance-based stock units, restricted stock units and stock options
1,867
Earnings per share attributable to stockholders:
SELECTED BALANCE SHEET DATA
April 3, 2017
January 2, 2017
Cash and cash equivalents, including restricted cash
$
282,871
$
256,277
Accounts and notes receivable, net
419,216
432,596
Inventories
275,092
269,212
Total current assets
1,027,291
1,012,841
Property, plant and equipment, net
976,446
966,638
Other non-current assets
526,508
520,597
Total assets
2,530,245
2,500,076
Short-term debt, including current portion of long-term debt
$
160,658
$
110,652
Accounts payable
344,257
355,774
Total current liabilities
721,580
689,065
Debt, net of discount
861,391
909,030
Total long-term liabilities
935,983
981,886
Total equity
872,682
829,125
Total liabilities and equity
2,530,245
2,500,076
First Quarter
Fourth Quarter
Gross margin
16.8
%
14.3
%
18.8
%
Operating margin
8.4
%
3.2
%
9.9
%
First Quarter
Fourth Quarter
Aerospace/Defense
15
%
15
%
14
%
Computing/Storage/Peripherals
15
%
13
%
12
%
Medical/Industrial/Instrumentation
15
%
16
%
13
%
Networking/Communications
20
%
24
%
21
%
Stock-based Compensation:
First Quarter
Fourth Quarter
Senior Director, Corporate Development & Investor Relations
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