TTM Technologies, Inc. Reports Third Quarter 2016 Results
October 26 2016 - 3:05PM
TTM Technologies, Inc. (NASDAQ: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 CallTTM
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 WebcastThe replay of
the webcast will remain accessible for one week following the live
event on TTM’s website at www.ttm.com.
About TTMTTM 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 MeasuresThis
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 |
|
|
|
|
|
|
Amount included in: |
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
$ |
412 |
|
|
$ |
322 |
|
|
$ |
429 |
|
|
|
|
|
|
Selling and marketing |
|
$ |
268 |
|
|
|
294 |
|
|
|
271 |
|
|
|
|
|
|
General and administrative |
|
|
2,119 |
|
|
|
2,056 |
|
|
|
2,145 |
|
|
|
|
|
|
Total stock-based compensation expense |
|
$ |
2,799 |
|
|
$ |
2,672 |
|
|
$ |
2,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Segment Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter |
|
Second Quarter |
|
|
|
|
|
Net sales: |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
|
|
|
PCB |
|
|
$ |
598,656 |
|
|
$ |
604,771 |
|
|
$ |
563,574 |
|
|
|
|
|
|
E-M Solutions |
|
|
46,246 |
|
|
|
49,658 |
|
|
|
40,427 |
|
|
|
|
|
|
Corporate |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
Total sales |
|
|
644,902 |
|
|
|
654,429 |
|
|
|
604,001 |
|
|
|
|
|
|
Inter-segment sales |
|
|
(3,182 |
) |
|
|
(2,424 |
) |
|
|
(2,154 |
) |
|
|
|
|
|
Total net sales |
|
$ |
641,720 |
|
|
$ |
652,005 |
|
|
$ |
601,847 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating segment income: |
|
|
|
|
|
|
|
|
|
|
|
PCB |
|
|
$ |
75,501 |
|
|
$ |
52,191 |
|
|
$ |
64,970 |
|
|
|
|
|
|
E-M Solutions |
|
|
1,421 |
|
|
|
(1,729 |
) |
|
|
(153 |
) |
|
|
|
|
|
Corporate |
|
|
(20,747 |
) |
|
|
(20,445 |
) |
|
|
(24,189 |
) |
|
|
|
|
|
Total operating segment income |
|
|
56,175 |
|
|
|
30,017 |
|
|
|
40,628 |
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
(5,949 |
) |
|
|
(6,421 |
) |
|
|
(5,949 |
) |
|
|
|
|
|
Total operating income |
|
|
50,226 |
|
|
|
23,596 |
|
|
|
34,679 |
|
|
|
|
|
|
Total other expense |
|
|
(14,943 |
) |
|
|
(17,004 |
) |
|
|
(16,893 |
) |
|
|
|
|
|
Income before income taxes |
|
$ |
35,283 |
|
|
$ |
6,592 |
|
|
$ |
17,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATIONS1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter |
|
Second Quarter |
|
First Three Quarters |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Non-GAAP gross profit reconciliation2: |
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$ |
109,562 |
|
|
$ |
89,118 |
|
|
$ |
97,645 |
|
|
$ |
290,770 |
|
|
$ |
201,867 |
|
|
Add back item: |
|
|
|
|
|
|
|
|
|
|
|
Inventory markup |
|
|
- |
|
|
|
8,214 |
|
|
|
- |
|
|
|
- |
|
|
|
15,622 |
|
|
Stock-based compensation |
|
|
412 |
|
|
|
322 |
|
|
|
429 |
|
|
|
1,161 |
|
|
|
790 |
|
|
Non-GAAP gross
profit |
|
$ |
109,974 |
|
|
$ |
97,654 |
|
|
$ |
98,074 |
|
|
$ |
291,931 |
|
|
$ |
218,279 |
|
|
Non-GAAP gross
margin |
|
|
17.1 |
% |
|
|
15.0 |
% |
|
|
16.3 |
% |
|
|
16.0 |
% |
|
|
15.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income reconciliation3: |
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
|
$ |
50,226 |
|
|
$ |
23,596 |
|
|
$ |
34,679 |
|
|
$ |
103,807 |
|
|
$ |
24,801 |
|
|
Add back items: |
|
|
|
|
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
5,949 |
|
|
|
6,421 |
|
|
|
5,949 |
|
|
|
17,845 |
|
|
|
12,205 |
|
|
Stock-based compensation |
|
|
2,799 |
|
|
|
2,672 |
|
|
|
2,845 |
|
|
|
7,890 |
|
|
|
7,026 |
|
|
Gain on sale of assets |
|
|
- |
|
|
|
- |
|
|
|
(1,472 |
) |
|
|
(1,472 |
) |
|
|
(2,504 |
) |
|
Acquisition-related costs |
|
|
197 |
|
|
|
2,065 |
|
|
|
605 |
|
|
|
1,493 |
|
|
|
32,927 |
|
|
Inventory markup |
|
|
- |
|
|
|
8,214 |
|
|
|
- |
|
|
|
- |
|
|
|
15,622 |
|
|
Impairments and restructuring charges |
|
|
2,103 |
|
|
|
2,003 |
|
|
|
3,989 |
|
|
|
11,351 |
|
|
|
2,512 |
|
|
Non-GAAP operating
income |
|
$ |
61,274 |
|
|
$ |
44,971 |
|
|
$ |
46,595 |
|
|
$ |
140,914 |
|
|
$ |
92,589 |
|
|
Non-GAAP operating
margin |
|
|
9.5 |
% |
|
|
6.9 |
% |
|
|
7.7 |
% |
|
|
7.7 |
% |
|
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income and
EPS attributable to stockholders reconciliation4: |
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) attributable to stockholders |
|
$ |
25,582 |
|
|
$ |
(2,237 |
) |
|
$ |
18,548 |
|
|
$ |
36,866 |
|
|
$ |
(35,403 |
) |
|
Add back items: |
|
|
|
|
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
5,949 |
|
|
|
6,421 |
|
|
|
5,949 |
|
|
|
17,845 |
|
|
|
12,205 |
|
|
Stock-based compensation |
|
|
2,799 |
|
|
|
2,672 |
|
|
|
2,845 |
|
|
|
7,890 |
|
|
|
7,026 |
|
|
Non-cash interest expense |
|
|
4,721 |
|
|
|
4,819 |
|
|
|
5,608 |
|
|
|
16,483 |
|
|
|
10,733 |
|
|
Gain on sale of assets |
|
|
- |
|
|
|
- |
|
|
|
(1,472 |
) |
|
|
(1,472 |
) |
|
|
(2,504 |
) |
|
Acquisition-related costs |
|
|
197 |
|
|
|
2,065 |
|
|
|
605 |
|
|
|
1,493 |
|
|
|
32,927 |
|
|
Inventory markup |
|
|
- |
|
|
|
8,214 |
|
|
|
- |
|
|
|
- |
|
|
|
15,622 |
|
|
Impairments, restructuring and other charges |
|
|
2,103 |
|
|
|
2,003 |
|
|
|
3,989 |
|
|
|
11,351 |
|
|
|
3,314 |
|
|
Income taxes |
|
|
(1,208 |
) |
|
|
(122 |
) |
|
|
(7,649 |
) |
|
|
(8,036 |
) |
|
|
5,622 |
|
|
Non-GAAP net income
attributable to stockholders |
|
$ |
40,143 |
|
|
$ |
23,835 |
|
|
$ |
28,423 |
|
|
$ |
82,420 |
|
|
$ |
49,542 |
|
|
Non-GAAP earnings per
diluted share attributable to stockholders |
|
$ |
0.39 |
|
|
$ |
0.24 |
|
|
$ |
0.28 |
|
|
$ |
0.82 |
|
|
$ |
0.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted number
of shares5: |
|
|
|
|
|
|
|
|
|
|
|
Diluted shares |
|
|
127,645 |
|
|
|
100,035 |
|
|
|
126,950 |
|
|
|
101,094 |
|
|
|
91,455 |
|
|
Dilutive effect of
convertible debt |
|
|
(25,940 |
) |
|
|
- |
|
|
|
(25,940 |
) |
|
|
- |
|
|
|
- |
|
|
Non-GAAP diluted number
of shares |
|
|
101,705 |
|
|
|
100,035 |
|
|
|
101,010 |
|
|
|
101,094 |
|
|
|
91,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA reconciliation6: |
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) |
|
$ |
25,770 |
|
|
$ |
(2,138 |
) |
|
$ |
18,765 |
|
|
$ |
37,385 |
|
|
$ |
(35,275 |
) |
|
Add back items: |
|
|
|
|
|
|
|
|
|
|
|
Income tax provision (benefit) |
|
|
9,513 |
|
|
|
8,730 |
|
|
|
(979 |
) |
|
|
14,011 |
|
|
|
23,993 |
|
|
Interest expense |
|
|
18,873 |
|
|
|
21,002 |
|
|
|
20,084 |
|
|
|
60,741 |
|
|
|
39,545 |
|
|
Amortization of definite-lived intangibles |
|
|
5,949 |
|
|
|
6,421 |
|
|
|
5,949 |
|
|
|
17,845 |
|
|
|
12,205 |
|
|
Depreciation expense |
|
|
37,006 |
|
|
|
40,091 |
|
|
|
40,457 |
|
|
|
117,690 |
|
|
|
94,403 |
|
|
Stock-based compensation |
|
|
2,799 |
|
|
|
2,672 |
|
|
|
2,845 |
|
|
|
7,890 |
|
|
|
7,026 |
|
|
Gain on sale of assets |
|
|
- |
|
|
|
- |
|
|
|
(1,472 |
) |
|
|
(1,472 |
) |
|
|
(2,504 |
) |
|
Acquisition-related costs |
|
|
197 |
|
|
|
2,065 |
|
|
|
605 |
|
|
|
1,493 |
|
|
|
32,927 |
|
|
Inventory markup |
|
|
- |
|
|
|
6,792 |
|
|
|
- |
|
|
|
- |
|
|
|
14,200 |
|
|
Impairments, restructuring and other charges |
|
|
2,103 |
|
|
|
2,003 |
|
|
|
3,989 |
|
|
|
11,351 |
|
|
|
3,314 |
|
|
Adjusted EBITDA |
|
$ |
102,210 |
|
|
$ |
87,638 |
|
|
$ |
90,243 |
|
|
$ |
266,934 |
|
|
$ |
189,834 |
|
|
Adjusted EBITDA margin |
|
|
15.9 |
% |
|
|
13.4 |
% |
|
|
15.0 |
% |
|
|
14.6 |
% |
|
|
13.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow |
|
|
102,737 |
|
|
|
14,735 |
|
|
|
80,057 |
|
|
|
200,686 |
|
|
|
97,632 |
|
|
Add back items: |
|
|
|
|
|
|
|
|
|
|
|
Payment of accreted interest on convertible sr. notes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,731 |
|
|
Payment of acquisition-related costs |
|
|
11 |
|
|
|
6,610 |
|
|
|
691 |
|
|
|
3,026 |
|
|
|
34,688 |
|
|
Adjusted operating cash flow |
|
|
102,748 |
|
|
|
21,345 |
|
|
|
80,748 |
|
|
|
203,712 |
|
|
|
141,051 |
|
|
Capital expenditures, net |
|
|
(24,221 |
) |
|
|
(30,413 |
) |
|
|
(18,183 |
) |
|
|
(62,520 |
) |
|
|
(76,876 |
) |
|
Free cash flow |
|
$ |
78,527 |
|
|
$ |
(9,068 |
) |
|
$ |
62,565 |
|
|
$ |
141,192 |
|
|
$ |
64,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 This information provides a reconciliation of non-GAAP gross
profit, non-GAAP operating income, non-GAAP net income attributable
to stockholders, non-GAAP EPS attributable to stockholders, and
adjusted EBITDA to the financial information in our consolidated
condensed statements of operations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 Non-GAAP gross profit and gross margin measures exclude
stock-based compensation expense, and inventory markup. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Non-GAAP operating income and operating margin measures
exclude amortization of intangibles, stock-based compensation
expense, gain on sale of assets, inventory markup,
acquisition-related costs, asset impairments, restructuring and
other charges. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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), gain on sale of
assets, inventory markup, acquisition-related costs, asset
impairments, restructuring 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 Non-GAAP diluted number of shares used in computing non-GAAP
earnings per share attributable to stockholders excludes the
dilutive effect of convertible debt. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 Adjusted EBITDA is defined as earnings before interest
expense, income taxes, depreciation, amortization of intangibles,
stock-based compensation expense, gain on sale of assets, inventory
markup, acquisition-related costs, asset impairments, restructuring
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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
Sameer Desai,
Senior Director, Corporate Development & Investor Relations
sameer.desai@ttmtech.com
714-327-3050
TTM Technologies (NASDAQ:TTMI)
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