COSTA MESA, Calif., Feb. 5, 2013 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (Nasdaq:TTMI), a major global printed circuit board (PCB) manufacturer, today reported results for the fourth quarter and fiscal year 2012, which ended December 31, 2012.
Fourth Quarter 2012 Highlights
- Net sales were $382.4 million
- GAAP net income attributable to stockholders was $15.7 million, or $0.19 per diluted share
- Non-GAAP net income attributable to stockholders was $21.5 million, or $0.26 per diluted share
- Gross margin was 16.3 percent
Fiscal Year 2012 Highlights
- Net sales were $1.3 billion
- GAAP net loss attributable to stockholders was $172.6 million, or $2.11 per share
- Excluding the goodwill and asset impairment charges recorded in 2012, GAAP net income attributable to stockholders was $43.2 million, or $0.52 per diluted share
- Non-GAAP net income attributable to stockholders was $72.0 million, or $0.87 per diluted share
- Gross margin was 16.7 percent
Fourth Quarter 2012 Financial Results
Net sales for the fourth quarter increased 12.8 percent to $382.4 million from $339.0 million in the third quarter.
GAAP operating income for the fourth quarter was $21.4 million compared to operating loss of $202.7 million in the third quarter.
Included in operating results for the third quarter of 2012 were non-cash charges of $218.4 million to write down goodwill, customer-related intangibles and property, plant and equipment. Excluding these charges, operating income for the third quarter of 2012 was $15.7 million.
GAAP net income attributable to stockholders for the fourth quarter was $15.7 million, or $0.19 per diluted share, compared to net loss attributable to stockholders of $208.3 million, or $2.54 per share, for the third quarter. Fourth quarter net income attributable to stockholders includes a $3.3 million, or $0.04 per diluted share, tax valuation adjustment to noncontrolling interest. Net income attributable to stockholders, excluding the impairment charges, was $7.5 million, or $0.09 per diluted share, for the third quarter.
On a non-GAAP basis, net income attributable to stockholders for the fourth quarter was $21.5 million, or $0.26 per diluted share. This compares to non-GAAP net income attributable to stockholders of $18.1 million, or $0.22 per diluted share, for the third quarter.
Adjusted EBITDA for the fourth quarter was $50.3 million, or 13.2 percent of net sales, compared to adjusted EBITDA of $36.5 million, or 10.8 percent of net sales, for the third quarter.
"We were pleased to close 2012 with strong financial and operational performance in the fourth quarter," said Kent Alder, CEO of TTM. "We experienced broad-based demand for our advanced HDI PCBs across multiple end markets, particularly for smartphones and touchpad tablets. The product mix shift toward more advanced HDI PCBs drove higher gross margin and operating profit, resulting in stronger earnings for the quarter."
Full Year 2012 Financial Results
Net sales for fiscal year 2012 decreased to $1.3 billion from $1.4 billion in fiscal year 2011.
Operating loss for fiscal year 2012 was $141.4 million, a decrease from operating income of $91.1 million in fiscal year 2011. Included in operating results were non-cash goodwill and asset impairment charges of $218.4 million in 2012 and $63.3 million in 2011. Excluding these charges, operating income for fiscal year 2012 was $77.0 million compared to operating income of $154.4 million in 2011. The year over year decline in operating income primarily reflects higher labor costs in Asia and lower capacity utilization.
GAAP net loss attributable to stockholders for fiscal year 2012 was $172.6 million, or $2.11 per share, compared to GAAP net income of $41.9 million, or $0.51 per diluted share, for fiscal year 2011. Net income attributable to stockholders for fiscal year 2012 includes the noncontrolling interest adjustment discussed above. GAAP net income attributable to stockholders, excluding the impairment charges, was $43.2 million, or $0.52 per diluted share, for fiscal year 2012. GAAP net income attributable to stockholders, excluding the impairment charges, was $100.4 million, or $1.23 per diluted share, for fiscal year 2011.
On a non-GAAP basis, net income attributable to stockholders for fiscal year 2012 was $72.0 million, or $0.87 per diluted share. This compares to fiscal year 2011 non-GAAP net income attributable to stockholders of $126.5 million, or $1.54 per diluted share.
Adjusted EBITDA for fiscal year 2012 was $175.5 million, or 13.0 percent of net sales, compared to $250.2 million, or 17.5 percent of net sales, for fiscal year 2011.
"While the global macroeconomic challenges weighed on the demand environment for much of 2012, we significantly expanded our advanced HDI business during the year to meet future demand. We are confident that advanced technology PCBs provide our strongest growth prospect, and we are well positioned to capitalize on these opportunities as our customers' end markets recover," continued Alder.
"Looking ahead to the first quarter, we expect a normal seasonal decline in our business. Longer term, we remain optimistic as we are clearly differentiated through our focus on leading edge technology, our diversified end markets, and our broad customer base," concluded Alder.
Business Outlook
For the first quarter of 2013, TTM estimates revenue will be in the range of $310 million to $330 million, GAAP earnings attributable to stockholders in a range from breakeven to $0.05 per diluted share and non-GAAP earnings attributable to stockholders in a range from $0.07 to $0.12 per diluted share.
To Access the Live Webcast/Conference Call
The company will host a conference call and webcast to discuss the fourth quarter and fiscal year 2012 results and the first quarter 2013 outlook on Tuesday, February 5, 2013, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time).
Telephone access is available by dialing domestic 1-888-549-7880 or international 1-480-629-9770. The conference call also will be webcast on TTM Technologies' website at www.ttmtech.com.
To Access a Replay of the Webcast
The webcast will be available for replay until February 12, 2013, on TTM Technologies' website at www.ttmtech.com.
About Our Non-GAAP Financial Measures
This release includes information about the Company's non-GAAP net income attributable to stockholders and non-GAAP earnings per share attributable to stockholders, which are non-GAAP financial measures. Management believes that both measures -- which add back amortization of intangibles, stock-based compensation expense, non-cash interest expense on debt, asset impairments, restructuring and other charges as well as the associated tax impact of these charges -- provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations.
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. The Company 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.
Safe Harbor Statement
This release contains forward-looking statements that relate to future events or performance. These statements reflect the company's current expectations, and the company 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 company statements will not be realized. Furthermore, readers are cautioned that these statements involve risks and uncertainties, many of which are beyond the company'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 company's dependence upon the electronics industry, contemplated significant capital expenditures and related financing requirements, the Company's ability to integrate and manage its Asia Pacific operations, the company's dependence upon a small number of customers, the unpredictability of and potential fluctuation in future revenues and operating results and other "Risk Factors" set forth in the company's most recent SEC filings.
About TTM
TTM Technologies, Inc. is a major global printed circuit board manufacturer, focusing on quick-turn and technologically advanced PCBs and the backplane and sub-system assembly business. TTM stands for time-to-market, representing how the company'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.ttmtech.com.
| TTM TECHNOLOGIES, INC. | |||||||
| Selected Unaudited Financial Information | |||||||
| (In thousands, except per share data) | |||||||
| Fourth Quarter | Third Quarter | Full Year | |||||
| 2012 | 2011 | 2012 | 2012 | 2011 | |||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| Net sales | |||||||
| Cost of goods sold | $ 382,393 | $ 361,460 | $ 339,011 | $ 1,349,326 | $ 1,428,639 | ||
| 320,221 | 290,082 | 286,695 | 1,123,669 | 1,127,326 | |||
| Gross profit | 62,172 | 71,378 | 52,316 | 225,657 | 301,313 | ||
| Operating expenses: | |||||||
| Selling and marketing | 9,592 | 9,867 | 8,735 | 35,957 | 36,891 | ||
| General and administrative | 28,682 | 24,178 | 23,735 | 98,005 | 92,682 | ||
| Amortization of definite-lived intangibles | 2,515 | 4,517 | 4,104 | 14,637 | 17,311 | ||
| Impairment of goodwill and definite-lived intangibles | -- | 15,184 | 200,335 | 200,335 | 15,184 | ||
| Impairment of long-lived assets | -- | -- | 18,082 | 18,082 | 48,125 | ||
| Total operating expenses | 40,789 | 53,746 | 254,991 | 367,016 | 210,193 | ||
| Operating income (loss) | 21,383 | 17,632 | (202,675) | (141,359) | 91,120 | ||
| Interest expense | (6,558) | (6,795) | (6,429) | (25,784) | (26,504) | ||
| Loss on extinguishment of debt | -- | -- | (5,527) | (5,527) | -- | ||
| Other, net | 2,440 | 2,851 | 1,117 | 4,956 | 8,616 | ||
| Income (loss) before income taxes | 17,265 | 13,688 | (213,514) | (167,714) | 73,232 | ||
| Income tax (provision) benefit | (3,584) | (1,328) | 850 | (11,386) | (26,005) | ||
| Net income (loss) | 13,681 | 12,360 | (212,664) | (179,100) | 47,227 | ||
| Net loss (income) attributable to noncontrolling interest | 2,062 | (1,190) | 4,322 | 6,506 | (5,359) | ||
| Net income (loss) attributable to stockholders | $ 15,743 | $ 11,170 | $ (208,342) | $ (172,594) | $ 41,868 | ||
| Earnings (loss) per share attributable to stockholders: | |||||||
| Basic | $ 0.19 | $ 0.14 | $ (2.54) | $ (2.11) | $ 0.52 | ||
| Diluted | $ 0.19 | $ 0.14 | $ (2.54) | $ (2.11) | $ 0.51 | ||
| Weighted average common shares: | |||||||
| Basic | 81,932 | 81,336 | 81,929 | 81,800 | 81,176 | ||
| Diluted | 82,613 | 81,988 | 81,929 | 81,800 | 81,944 | ||
| SELECTED BALANCE SHEET DATA | ||
| December 31, 2012 | December 31, 2011 | |
| Cash and cash equivalents | $ 285,433 | $ 196,052 |
| Accounts and notes receivable, net | 302,215 | 316,568 |
| Inventories | 146,012 | 129,430 |
| Total current assets | 765,151 | 671,534 |
| Property, plant and equipment, net | 833,389 | 766,800 |
| Other non-current assets | 77,673 | 310,735 |
| Total assets | $ 1,676,213 | $ 1,749,069 |
| Short-term debt, including current portion long-term debt | $ 30,004 | $ 120,882 |
| Accounts payable | 221,265 | 185,906 |
| Total current liabilities | 370,172 | 437,140 |
| Debt, net of discount | 527,541 | 368,518 |
| Total long-term liabilities | 551,210 | 389,259 |
| Noncontrolling interest | 98,883 | 113,753 |
| Total stockholders' equity | 754,831 | 922,670 |
| Total liabilities and stockholders' equity | $ 1,676,213 | $ 1,749,069 |
| SUPPLEMENTAL DATA | |||||||
| Fourth Quarter | Third Quarter | Full Year | |||||
| 2012 | 2011 | 2012 | 2012 | 2011 | |||
| Gross margin | 16.3% | 19.7% | 15.4% | 16.7% | 21.1% | ||
| Adjusted EBITDA margin | 13.2 | 16.6 | 10.8 | 13.0 | 17.5 | ||
| Operating margin | 5.6 | 4.9 | (59.8) | (10.5) | 6.4 | ||
| End Market Breakdown: | |||||||
| Fourth Quarter | Third Quarter | ||||||
| 2012 | 2011 | 2012 | |||||
| Aerospace/Defense | 13% | 15% | 16% | ||||
| Cellular Phone | 17 | 14 | 15 | ||||
| Computing/Storage/Peripherals | 23 | 20 | 21 | ||||
| Medical/Industrial/Instrumentation | 7 | 8 | 8 | ||||
| Networking/Communications | 30 | 33 | 29 | ||||
| Other | 10 | 10 | 11 | ||||
| Stock-based Compensation: | |||||||
| Fourth Quarter | Third Quarter | ||||||
| 2012 | 2011 | 2012 | |||||
| Amount included in: | |||||||
| Cost of goods sold | $ 265 | $ 251 | $ 253 | ||||
| Selling and marketing | 124 | 106 | 115 | ||||
| General and administrative | 2,432 | 1,786 | 2,089 | ||||
| Total stock-based compensation expense | $ 2,821 | $ 2,143 | $ 2,457 | ||||
| Operating Segment Data: | |||||||
| Fourth Quarter | Third Quarter | ||||||
| Net sales: | 2012 | 2011 | 2012 | ||||
| Asia Pacific | $ 259,378 | $ 218,448 | $ 215,746 | ||||
| North America | 123,890 | 144,079 | 123,861 | ||||
| Total sales | 383,268 | 362,527 | 339,607 | ||||
| Inter-segment sales | (875) | (1,067) | (596) | ||||
| Total net sales | $ 382,393 | $ 361,460 | $ 339,011 | ||||
| Operating segment income (loss): | |||||||
| Asia Pacific | $ 17,644 | $ 20,094 | $ (206,806) | ||||
| North America | 6,254 | 2,055 | 8,235 | ||||
| Total operating segment income (loss) | 23,898 | 22,149 | (198,571) | ||||
| Amortization of definite-lived intangibles | (2,515) | (4,517) | (4,104) | ||||
| Total operating income (loss) | 21,383 | 17,632 | (202,675) | ||||
| Total other expense | (4,118) | (3,944) | (10,839) | ||||
| Income (loss) before income taxes | $ 17,265 | $ 13,688 | $ (213,514) | ||||
| RECONCILIATIONS1 | |||||
| Fourth Quarter | Third Quarter | Full Year | |||
| 2012 | 2011 | 2012 | 2012 | 2011 | |
| Adjusted EBITDA reconciliation2: | |||||
| Net income (loss) | $ 13,681 | $ 12,360 | $ (212,664) | $ (179,100) | $ 47,227 |
| Add back items: | |||||
| Income tax provision | 3,584 | 1,328 | (850) | 11,386 | 26,005 |
| Interest expense | 6,558 | 6,795 | 6,429 | 25,784 | 26,504 |
| Amortization of definite-lived intangibles | 2,515 | 4,546 | 4,104 | 14,684 | 17,427 |
| Depreciation expense | 23,962 | 19,946 | 21,046 | 84,286 | 69,698 |
| EBITDA | $ 50,300 | $ 44,975 | $ (181,935) | $ (42,960) | $ 186,861 |
| Add back: Asset impairments | -- | 15,184 | 218,417 | 218,417 | 63,309 |
| Adjusted EBITDA | $ 50,300 | $ 60,159 | $ 36,482 | $ 175,457 | $ 250,170 |
| GAAP EPS excluding impairments reconciliation3: | |||||
| GAAP net income (loss) attributable to stockholders | $ 15,743 | $ 11,170 | $ (208,342) | $ (172,594) | $ 41,868 |
| Add back items: | |||||
| Asset impairments | -- | 15,184 | 218,417 | 218,417 | 63,309 |
| Income tax effects | -- | (4,058) | (2,574) | (2,574) | (4,764) |
| GAAP net income, excluding impairments, attributable to stockholders | $ 15,743 | $ 22,296 | $ 7,501 | $ 43,249 | $ 100,413 |
| GAAP earnings per diluted share, excluding impairments, attributable to stockholders | $ 0.19 | $ 0.27 | $ 0.09 | $ 0.52 | $ 1.23 |
| Non-GAAP EPS reconciliation4: | |||||
| GAAP net income (loss) attributable to stockholders | $ 15,743 | $ 11,170 | $ (208,342) | $ (172,594) | $ 41,868 |
| Add back items: | |||||
| Amortization of definite-lived intangibles | 2,515 | 4,546 | 4,104 | 14,684 | 17,427 |
| Stock-based compensation | 2,821 | 2,143 | 2,457 | 10,266 | 8,075 |
| Non-cash interest expense | 2,016 | 1,947 | 1,977 | 7,893 | 8,163 |
| Impairments, restructuring and other charges | -- | 15,184 | 223,944 | 223,944 | 63,309 |
| Income tax effects | (1,550) | (5,666) | (6,045) | (12,172) | (12,379) |
| Non-GAAP net income attributable to stockholders | $ 21,545 | $ 29,324 | $ 18,095 | $ 72,021 | $ 126,463 |
| Non-GAAP earnings per diluted share attributable to stockholders | $ 0.26 | $ 0.36 | $ 0.22 | $ 0.87 | $ 1.54 |
| 1 This information provides a reconciliation of EBITDA, adjusted EBITDA, GAAP net income (excluding impairments) attributable to stockholders, GAAP EPS (excluding impairments) attributable to stockholders, non-GAAP net income attributable to stockholders and non-GAAP EPS attributable to stockholders to the financial information in our consolidated statements of operations. | |||||
| 2 Adjusted EBITDA is defined as earnings before interest expense, income taxes, depreciation, amortization and asset impairments. 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. | |||||
| 3 This information provides GAAP net income attributable to stockholders and GAAP EPS attributable to stockholders excluding asset impairments and related income tax effects. | |||||
| 4 This information provides non-GAAP net income attributable to stockholders and non-GAAP EPS attributable to stockholders, which are non-GAAP financial measures. Management believes that both measures --- which add back amortization of intangibles, stock-based compensation expense, non-cash interest expense on debt (before consideration of capitalized interest), asset impairments, restructuring and other charges as well as the associated tax impact of these charges --- provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations. | |||||