updated 2/10/2011 4:17:04 PM ET 2011-02-10T21:17:04

SANTA ANA, Calif., Feb. 10, 2011 (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 2010, ended December 31, 2010.

Fourth Quarter 2010 Highlights

  • Net sales increased 6 percent sequentially to a record $377.9 million
  • GAAP net income attributable to stockholders grew 14 percent sequentially to $33.0 million, or $0.41 per diluted share
  • Non-GAAP net income attributable to stockholders increased sequentially 13 percent to $39.7 million, or $0.49 per diluted share
  • Gross margin increased sequentially to 23.8 percent
  • The combination with Meadville Holdings Ltd. was again highly accretive to GAAP earnings, adding more than $0.20 per diluted share in the fourth quarter

Fiscal Year 2010 Highlights

  • Completed combination with Meadville on April 9, 2010
  • Net sales increased to $1.2 billion
  • GAAP net income attributable to stockholders grew to $71.5 million, or $1.01 per diluted share
  • Non-GAAP net income attributable to stockholders increased to $105.5 million, or $1.49 per diluted share
  • Gross margin increased to 21.5 percent

Financial Results

Net sales for the fourth quarter of 2010 increased to $377.9 million from $357.8 million in the third quarter of 2010.

Operating income for the fourth quarter of 2010 increased to $52.6 million from $45.7 million in the third quarter of 2010.

GAAP net income attributable to stockholders for the fourth quarter of 2010 was $33.0 million, or $0.41 per diluted share, compared to $29.1 million, or $0.36 per diluted share, for the third quarter of 2010. The results for both the third and fourth quarters of 2010 included foreign exchange gains that contributed approximately $0.02 per diluted share each quarter.

On a non-GAAP basis, net income attributable to stockholders for the fourth quarter of 2010 was $39.7 million, or $0.49 per diluted share. This compares to non-GAAP net income attributable to stockholders of $35.0 million, or $0.43 per diluted share, in the third quarter of 2010.

EBITDA for the fourth quarter of 2010 was $76.5 million, or 20.2 percent of net sales, compared to $66.9 million, or 18.7 percent of net sales, for the third quarter of 2010.

"Our better than expected results for the fourth quarter capped a remarkable year for TTM and demonstrate the continuing success of our strategic growth initiatives as well as the strength of our market position," said Kent Alder, President and CEO of TTM. "Strong demand for our advanced technology products, including PCBs used in touchpad tablets, networking equipment and smartphones, contributed to the record fourth quarter revenue and profitability. We continue to benefit from robust growth in our Asia Pacific operations and solid performance in our North America operations. Additionally, we are leveraging our global footprint, highly efficient operations and low cost structure to increase TTM's margins."

For the fiscal year 2010, the increase in sales, operating income, net income and EBITDA were primarily due to the combination with Meadville.

Net sales for fiscal year 2010 increased to $1.2 billion from $582.5 million in fiscal year 2009. 

Operating income for fiscal year 2010 increased to $125.6 million from $18.5 million in fiscal year 2009.

GAAP net income attributable to stockholders for fiscal year 2010 was $71.5 million, or $1.01 per diluted share, compared to $4.9 million, or $0.11 per diluted share, for fiscal year 2009.

On a non-GAAP basis, net income attributable to stockholders for fiscal year 2010 was $105.5 million, or $1.49 per diluted share. This compares to fiscal year 2009 non-GAAP net income attributable to stockholders of $30.7 million, or $0.70 per diluted share.

EBITDA for fiscal year 2010 was $193.4 million, or 16.3 percent of net sales, compared to $42.0 million, or 7.2 percent of net sales, for fiscal year 2009.

Please refer to the tables below for a reconciliation between GAAP and non-GAAP net income attributable to stockholders as well as EBITDA.

"2010 was a milestone year for TTM," said Alder.  "We completed the transformative combination with Meadville, achieved record revenue and profitability, and generated strong cash flow to fund expansion. We made great strides in positioning TTM to take advantage of the growth in the global PCB market. As we enter 2011, we are excited about the multiple growth drivers we see for our business and believe we are well positioned for success as our momentum continues."  

Business Outlook

The Company's guidance for the first quarter of 2011 reflects normal seasonality. For the first quarter of 2011, TTM estimates revenue will be in the range of $338 million to $358 million, GAAP earnings attributable to stockholders in a range from $0.27 to $0.36 per diluted share and non-GAAP earnings attributable to stockholders in a range from $0.35 to $0.44 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 2010 results and the first quarter 2011 outlook on Thursday, February 10, 2011, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time).

To listen to the live webcast, log on to the TTM Technologies website at www.ttmtech.com . To access the live conference call, dial 1-800-762-8795 or 1-480-248-5081.

To Access a Replay of the Webcast

The call will be available for replay until February 17, 2011, on TTM Technologies' website at www.ttmtech.com .

A telephone replay also will be available beginning two hours after the conclusion of the conference call. You may access the telephone replay by dialing 1-303-590-3030 or 1-800-406-7325 and entering confirmation code 4402248.

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 impairment and restructuring charges, inventory adjustments, costs related to the Meadville Holdings transaction and miscellaneous closing costs 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 with 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, the impact of the current economic crisis, the company's dependence upon a small number of customers, the unpredictability of and potential fluctuation in future revenues and operating results, increased competition from low-cost foreign manufacturers 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 .

The TTM Technologies logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5691

- Tables Follow -

TTM Technologies, Inc. Reports 2010 Fourth Quarter and Fiscal Year Results

 

TTM TECHNOLOGIES, INC.
           
Selected Unaudited Financial Information
           
(In thousands, except per share data)
           
       
  Fourth Quarter Third Quarter Full Year
  2010 2009 2010 2010 2009
           
CONSOLIDATED STATEMENTS OF OPERATIONS          
           
Net sales  $ 377,859  $ 149,924  $ 357,813  $ 1,184,139  $ 582,476
Cost of goods sold  287,856  122,250  277,478  929,734  479,267
           
Gross profit  90,003  27,674  80,335  254,405  103,209
           
Operating expenses:          
Selling and marketing  9,460  6,480  9,055  34,345  26,517
General and administrative  23,360  11,088  21,922  79,668  36,548
Amortization of definite-lived intangibles  4,613  860  3,653  13,678  3,440
Restructuring charges  (60)  481  --   389  5,490
Impairment of long-lived assets  --   2,125  --   766  12,761
Total operating expenses  37,373  21,034  34,630  128,846  84,756
           
Operating income  52,630  6,640  45,705  125,559  18,453
           
Interest expense  (6,373)  (2,802)  (6,690)  (22,255)  (11,198)
Interest income  145  111  164  505  467
Other, net  2,446  305  2,405  4,828  401
           
Income before income taxes  48,848  4,254  41,584  108,637  8,123
Income tax provision  (12,319)  (1,887)  (9,439)  (28,738)  (3,266)
           
Net income  36,529  2,367  32,145  79,899  4,857
           
Net income attributable to noncontrolling interest  (3,503)  --   (3,054)  (8,368)  -- 
Net income attributable to stockholders  $ 33,026  $ 2,367  $ 29,091  $ 71,531  $ 4,857
           
Earnings per share attributable to stockholders:          
Basic  $ 0.41  $ 0.05  $ 0.36  $ 1.02  $ 0.11
Diluted  $ 0.41  $ 0.05  $ 0.36  $ 1.01  $ 0.11
           
Weighted average common shares:          
Basic  80,139  43,172  80,059  70,220  43,080
Diluted  80,962  43,930  80,521  70,819  43,579
           
           
           
SELECTED BALANCE SHEET DATA           
  December 31, 2010 December 31, 2009      
Cash and cash equivalents  $ 216,078  $ 94,347      
Short-term investments  --   1,351      
Restricted cash  --   120,000      
Accounts and notes receivable, net  288,579  89,519      
Inventories  135,385  60,153      
Total current assets  670,845  382,559      
Property, plant and equipment, net  738,529  88,577      
Other non-current assets  346,270  71,922      
Total assets  1,755,644  543,058      
           
Current portion long-term debt  67,123  --       
Accounts payable  204,974  37,867      
Total current liabilities  412,546  59,447      
Debt, net of discount  458,278  139,882      
Total long-term liabilities  510,369  142,694      
Noncontrolling interest  104,474  --       
Total stockholders' equity  832,729  340,917      
Total liabilities and stockholders' equity  1,755,644  543,058      
           
SUPPLEMENTAL DATA      
  Fourth Quarter Third Quarter Full Year
  2010 2009 2010 2010 2009
Gross margin  23.8%  18.5%  22.5%  21.5%  17.7%
EBITDA margin  20.2  8.4  18.7  16.3  7.2
Operating margin  13.9  4.4  12.8  10.6  3.2
           
End Market Breakdown:        
  Fourth Quarter Third Quarter    
  2010 2009 2010    
           
Aerospace/Defense  16%  42%  17%    
Cellular Phone  12  --   11    
Computing/Storage/Peripherals  22  10  21    
Medical/Industrial/Instrumentation  8  9  9    
Networking/Communications  37  38  36    
Other  5  1  6    
           
Stock-based Compensation:        
  Fourth Quarter Third Quarter    
  2010 2009 2010    
Amount included in:          
Cost of goods sold  $ 308  $ 412  $ 309    
Selling and marketing  107  134  104    
General and administrative  1,839  1,021  1,241    
Total stock-based compensation expense  $ 2,254  $ 1,567  $ 1,654    
           
           
Operating Segment Data:        
  Fourth Quarter Third Quarter    
Net sales:  2010 2009 2010    
Asia Pacific   $ 224,680  $ --  $ 211,463    
North America   156,421  149,924  148,263    
Total sales   381,101  149,924  359,726    
Inter-segment sales   (3,242)  --   (1,913)    
Total net sales   $ 377,859  $ 149,924  $ 357,813    
           
Operating segment income:           
Asia Pacific   $ 38,257  $ --  $ 32,211    
North America   18,986  7,500  17,147    
Total operating segment income   57,243  7,500  49,358    
Amortization of definite-lived intangibles   (4,613)  (860)  (3,653)    
Total operating income   52,630  6,640  45,705    
Total other expense   (3,782)  (2,386)  (4,121)    
Income before income taxes   $ 48,848  $ 4,254  $ 41,584    
           
RECONCILIATIONS1      
  Fourth Quarter Third Quarter Full Year
  2010 2009 2010 2010 2009
EBITDA reconciliation2:          
Net income  $ 36,529  $ 2,367  $ 32,145  $ 79,899  $ 4,857
Add back items:          
Income tax provision  12,319  1,887  9,439  28,738  3,266
Interest expense  6,373  2,802  6,690  22,255  11,198
Amortization of definite-lived intangibles  4,643  889  3,682  13,795  3,567
Depreciation expense  16,633  4,649  14,932  48,747  19,140
EBITDA  $ 76,497  $ 12,594  $ 66,888  $ 193,434  $ 42,028
           
Non-GAAP EPS reconciliation3:          
GAAP net income attributable to stockholders  $ 33,026  $ 2,367  $ 29,091  $ 71,531  $ 4,857
Add back items:          
Amortization of definite-lived intangibles  4,643  889  3,682  13,795  3,567
Stock-based compensation  2,254  1,567  1,654  6,914  6,265
Non-cash interest expense  2,189  1,410  2,187  7,744  5,469
Impairment, restructuring and other charges  (54)  6,770  467  17,749  27,868
Income tax effects  (2,389)  (4,718)  (2,113)  (12,222)  (17,357)
Non-GAAP net income attributable to stockholders  $ 39,669  $ 8,285  $ 34,968  $ 105,511  $ 30,669
           
Non-GAAP earnings per diluted share attributable to stockholders  $ 0.49  $ 0.19  $ 0.43  $ 1.49  $ 0.70
           
           
1 This information provides a reconciliation of EBITDA, 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 EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization. We present 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 EBITDA because we believe that investors and securities analysts will find 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, 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 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 impairment and restructuring charges, inventory write-down related to facility closures, inventory fair value adjustment, costs related to the Meadville Holdings transaction and miscellaneous closing costs 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.
CONTACT: Steve Richards, CFO
         714-327-3000

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