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TTM: First Quarter 2016 Highlights

The following excerpt is from the company's SEC filing.

Net sales were $583.3 million

GAAP net loss attributable to stockholders was $7.3 million, or $0.07 per share

Non-GAAP net income attributable to stockholders was $13.9 million, or $0.14 per diluted share

Adjusted EBITDA was $74.5 million

First Quarter 2016 Financial Results

Net sales for the first quarter of 2016 were $583.3 million, compared to $329.2 million in the first quarter of 2015 and $668.9 million in the fourth quarter.

GAAP operating income for the first quarter of 2016 was $18.9 million, compared to operating income of $8.3 million in the first quarter of 201 5 and $36.5 million in the fourth quarter.

GAAP net loss attributable to stockholders for the first quarter of 2016 was $7.3 million, or $0.07 per share. This compares to GAAP net income of $3.4 million, or $0.04 per diluted share, in the first quarter of 2015 and $9.5 million, or $0.09 per diluted share, in the fourth quarter. The GAAP results were negatively impacted by approximately $6.0 million of expenses related to the acquisition and integration of Viasystems.

On a non-GAAP basis, net income attributable to stockholders for the first quarter of 2016 was $13.9 million, or $0.14 per diluted share. This compares to non-GAAP net income of $10.8 million, or $0.13 per diluted share, for the first quarter of 2015 and $31.5 million, or $0.31 per diluted share, in the fourth quarter of last year.

Adjusted EBITDA for the first quarter of 2016 was $74.5 million, or 12.8 percent of net sales, compared to adjusted EBITDA of $42.5 million, or 12.9 percent of net sales, for the first quarter of 2015 and $95.8 million, or 14.3 percent of net sales, for the fourth quarter of 2015.

“Our first quarter results marked a solid start to the year and demonstrated the benefits of our diversification initiative,” said Tom Edman, CEO of TTM. “Strong operational execution across all of our business units drove non-GAAP earnings above the high end of our guidance. Relative strength in the aerospace and defense, automotive and computing end markets helped offset a softer demand environment in the cellular phone end market.”

“We continue to deliver on our integration milestones and have now implemented or announced actions that represent more than 90% of our $55 million annualized synergy target. The new market focused business unit structure put in place at the beginning of the year has already begun to yield operational benefits. We believe a larger and more diverse TTM with focus on key end markets such as Aerospace & Defense and Automotive is an important differentiator in the PCB market,” concluded Mr. Edman.

Business Outlook

For the second quarter of 2016, TTM estimates that revenue will be in the range of $580 million to $620 million, and non-GAAP net income will be in the range of $0.16 to $0.22 per diluted share.

To Access the Live Webcast/Conference Call

TTM will host a conference call and webcast to discuss first quarter 2016 results and second quarter 2016 outlook on Wednesday, April 27, 2016, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call may include forward-looking statements.

Telephone access is available by dialing domestic 888-417-8516 or international 719-325-2354 (ID 1413218). 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 major 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, the successful integration of Viasystems, including, the planned plant combinations and closure, 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 -

TTM TECHNOLOGIES, INC.

Selected Unaudited Financial Information

(In thousands, except per share data)

Fourth Quarter

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

583,258

329,164

668,874

Cost of goods sold

499,695

277,605

560,604

Gross profit

83,563

51,559

108,270

Operating expenses:

Selling and marketing

17,306

9,455

17,963

General and administrative

36,149

33,990

41,654

Amortization of definite-lived intangibles

5,947

1,874

6,683

Restructuring charges

1,913

5,429

Impairment of long-lived assets

3,346

Gain on sale of asset

(2,504

Total operating expenses

64,661

43,294

71,729

Operating income (loss)

18,902

8,265

36,541

Interest expense

(21,784

(5,765

(20,208

Other, net

1,209

(415

3,925

Income (loss) before income taxes

(1,673

2,085

20,258

Income tax (provision) benefit

(5,477

1,361

(10,601

Net income (loss)

(7,150

3,446

9,657

Net income attributable to noncontrolling interest

(114

(136

Net income (loss) attributable to stockholders

(7,264

9,521

Earnings (loss) per share attributable to stockholders:

(0.07

0.04

0.10

Diluted

0.09

Weighted-average shares used in computing per share amounts:

99,596

83,603

99,134

84,465

126,329

Reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share:

Net income attributable to stockholders

Add back items: interest expense, net of tax

2,009

Adjusted net income attributable to stockholders

11,530

Weighted-average shares outstanding

Dilutive effect of convertible debt

25,940

Dilutive effect of performance-based stock units, restricted stock units and stock options

1,255

Diluted shares

Earnings per share attributable to stockholders:

SELECTED BALANCE SHEET DATA

December 28, 2015

Cash and cash equivalents, including restricted cash

183,678

262,630

Accounts and notes receivable, net

431,276

454,001

Inventories

264,555

268,923

Total current assets

908,210

1,022,520

Property, plant and equipment, net

1,075,613

1,103,067

Other non-current assets

512,009

545,717

Total assets

2,495,832

2,640,133

Short-term debt, including current portion of long-term debt

80,358

157,375

Accounts payable

308,156

347,916

Total current liabilities

598,406

744,994

Debt, net of discount

1,021,866

1,013,411

Total long-term liabilities

1,079,499

1,068,470

Total equity

817,927

826,669

Total liabilities and equity

SUPPLEMENTAL DATA

Gross margin

Operating margin

End Market Breakdown:

Aerospace/Defense

Cellular Phone

Computing/Storage/Peripherals

Medical/Industrial/Instrumentation

Networking/Communications

Stock-based Compensation:

Amount included in:

1,716

1,544

2,007

Total stock-based compensation expense

2,246

2,040

2,635

Operating Segment Data:

Net sales:

529,945

310,324

611,045

E-M Solutions

56,478

19,462

61,021

Corporate

Total sales

586,423

329,786

672,066

Inter-segment sales

(3,165

(622

(3,192

Total net sales

Operating segment income:

49,367

23,260

66,320

2,612

(24,905

(13,772

(25,708

Total operating segment income

24,849

10,139

43,224

(5,947

(1,874

(6,683

Total operating income

Total other expense

(20,575

(6,180

(16,283

Income before income taxes

RECONCILIATIONS

Non-GAAP gross profit reconciliation

Add back item:

Inventory markup and PP&E step up

Stock-based compensation

83,883

51,784

109,195

Non-GAAP gross margin

Non-GAAP operating income reconciliation

GAAP operating income (loss)

Acquisition-related costs

8,235

1,521

Impairments and restructuring charges

5,259

33,045

18,389

53,407

Non-GAAP operating margin

Non-GAAP net income and EPS attributable to stockholders reconciliation

GAAP net income (loss) attributable to stockholders

Non-cash interest expense

6,154

2,625

4,893

Impairments, restructuring and other charges

Income taxes

(5,366

13,854

10,829

31,527

Non-GAAP earnings per diluted share attributable to stockholders

0.14

0.13

0.31

Non-GAAP diluted number of shares

(25,940

100,389

Adjusted EBITDA reconciliation

Income tax provision (benefit)

5,477

(1,361

10,601

21,784

5,765

20,208

Depreciation expense

40,227

24,536

39,105

74,481

42,510

95,839

Adjusted EBITDA margin

Free cash flow reconciliation:

Operating cash flow

17,892

67,354

139,829

Payment of acquisition-related costs

2,324

4,720

1,522

Adjusted operating cash flow

20,216

72,074

141,351

Capital expenditures, net

(20,116

(22,776

(22,967

49,298

118,384

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.

Non-GAAP gross profit and gross margin measures exclude stock-based compensation expense, inventory markup and PP&E step up.

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.

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.

Non-GAAP diluted number of shares used in computing non-GAAP earnings per share attributable to stockholders excludes the dilutive effect of convertible debt.

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

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

TTM Technologies releases salary data. CEO sees compensation rise 87% - March 31, 2016