GlobeNewswire Inc | Jul 28, 2021 04:05PM EDT

July 28, 2021

SANTA ANA, Calif., July 28, 2021 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (NASDAQ:TTMI), a leading global printed circuit board (PCB) and radio frequency (RF) components and assemblies manufacturer, today reported results for the second quarter of fiscal 2021, which ended on June 28, 2021.

Second Quarter 2021 Highlights

-- Net sales were $567.4 million -- GAAP net income of $28.3 million, or $0.26 per diluted share -- Non-GAAP net income was $40.0 million, or $0.36 per diluted share -- Cash flow from operations was $56.9 million, or 10% of revenues

Second Quarter 2021 Financial Results Net sales for the second quarter of 2021 were $567.4 million, compared to $570.3 million from continuing operations in the second quarter of 2020.

GAAP operating income for the second quarter of 2021 was $40.9 million. This compares to GAAP operating income of $23.0 million from continuing operations in the second quarter of 2020.

GAAP net income for the second quarter of 2021 was $28.3 million, or $0.26 per diluted share, compared to net income of $9.3 million, or $0.09 per diluted share from continuing operations in the second quarter of 2020.

On a non-GAAP basis, net income for the second quarter of 2021 was $40.0 million, or $0.36 per diluted share. This compares to non-GAAP net income of $33.0 million, or $0.31 per diluted share from continuing operations in the second quarter of 2020.

Adjusted EBITDA in the second quarter of 2021 was $75.6 million, or 13.3 percent of net sales, compared to adjusted EBITDA of $76.8 million, or 13.5 percent of net sales, from continuing operations, in the second quarter of 2020.

In the second quarter, TTM delivered revenue and non-GAAP earnings above the high end of the previously guided range despite significant challenges from COVID-19 and tight supply conditions for certain raw materials. The solid performance was driven by better than expected sales in our commercial end markets led by strong year on year growth from the automotive and data center computing end markets, said Tom Edman, CEO of TTM. Additionally, strict financial discipline drove strong and consistent operating cash flow in the quarter. These achievements reflect the strategic changes made to strengthen TTM, particularly the divestiture of the volatile mobility business which historically caused weak seasonal results in the first half of the year.

Business Outlook The stronger than expected revenues in Q2 pulled forward some demand from Q3 and the tight raw material supply conditions will have a greater impact in our third quarter. As a result, TTM estimates that revenue for the third quarter of 2021 will be in the range of $530 million to $570 million, and non-GAAP net income will be in the range of $0.31 to $0.37 per diluted share.

Live Webcast/Conference CallTTM will host a conference call and webcast to discuss second quarter 2021 results and the third quarter 2021 outlook on Wednesday, July 28th, 2021 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 800-367-2403 or international 334-777-6978 (ID 3384553). The conference call also will be webcast on TTMs 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 TTMs website at www.ttm.com.

About TTMTTM Technologies, Inc. is a leading global printed circuit board manufacturer, focusing on quick-turn and volume production of technologically advanced PCBs and backplane assemblies as well as a global designer and manufacturer of high-frequency radio frequency (RF) and microwave components and assemblies. 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 The preliminary financial results included in this press release represent the most current information available to management. The companys actual results when disclosed in its Form 10-Q may differ from these preliminary results as a result of the completion of the companys financial closing procedures; final adjustments; completion of the review by the companys independent registered accounting firm; and other developments that may arise between now and the disclosure of the final results. 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 impact of COVID-19, 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 and raw materials used in TTMs 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 TTMs 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 TTMs 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.

With respect to the Companys outlook for non-GAAP net income per diluted share, we are unable to predict with reasonable certainty or without unreasonable effort certain items that may affect a comparable measure calculated and presented in accordance with GAAP. Our expected non-GAAP net income per diluted share excludes primarily the future impact of restructuring actions, impairment charges, unusual gains and losses, and tax adjustments. These reconciling items are highly variable and difficult to predict due to various factors outside of managements control and could have a material impact on our future period net income per diluted share calculated and presented in accordance with GAAP. Accordingly, a reconciliation of non-GAAP net income per diluted share to a comparable measure calculated and presented in accordance with GAAP is not available without unreasonable effort and has not been provided.

- Tables Follow -

TTM TECHNOLOGIES, INC.Selected Unaudited Financial Information(In thousands, except per share data) Second Quarter First Two Quarters 2021 2020* 2021 2020* CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS Net sales $ 567,383 $ 570,298 $ 1,093,815 $ 1,067,944 Cost of goods sold 467,473 469,868 912,305 886,172 Gross profit 99,910 100,430 181,510 181,772 Operating expenses: Selling and marketing 14,605 15,969 30,887 32,138 General and 30,634 33,309 58,929 67,648 administrative Research and 4,182 5,181 8,652 9,943 development Amortization of definite-lived 9,042 9,561 18,563 19,123 intangibles Restructuring charges 559 13,414 3,791 13,742 Total operating 59,022 77,434 120,822 142,594 expenses Operating income 40,888 22,996 60,688 39,178 Interest expense (11,079 ) (18,572 ) (22,468 ) (38,353 ) Loss on extinguishment of - - (15,217 ) - debt Other, net 306 455 2,813 2,957 Income from continuing operations before income 30,115 4,879 25,816 3,782 taxes Income tax (provision) (1,854 ) 4,467 (747 ) 2,344 benefit Net income from continuing 28,261 9,346 25,069 6,126 operations Income from discontinued operations, net of income - 172,421 - 174,467 taxes Net income $ 28,261 $ 181,767 $ 25,069 $ 180,593 Earnings per share: Basic earnings per share from continuing $ 0.26 $ 0.09 $ 0.23 $ 0.06 operations Basic earnings per share from discontinued - 1.62 - 1.64 operations Basic earnings per $ 0.26 $ 1.71 $ 0.23 $ 1.70 share Diluted earnings per share from continuing $ 0.26 $ 0.09 $ 0.23 $ 0.06 operations Diluted earnings per share from discontinued - 1.60 - 1.62 operations Diluted earnings per $ 0.26 $ 1.69 $ 0.23 $ 1.68 share *Prior period amounts have been revised to correct an immaterial error to income from discontinued operations, net of income taxes, net income, basic earnings per share from discontinued operations, basic earnings per share, diluted earnings per share from discontinued operations and diluted earnings per share. Weighted-average shares used in computing per share amounts: Basic 107,148 106,295 106,987 105,990 Diluted 109,795 107,485 109,250 107,431 Reconciliation of the denominator used to calculate basic earnings per share and diluted earnings per share: Weighted-average shares 107,148 106,295 106,987 105,990 outstanding Dilutive effect of 802 - 401 - warrants Dilutive effect of performance-based stock 1,845 1,190 1,862 1,441 units, restricted stock units & stock options Diluted shares 109,795 107,485 109,250 107,431 SELECTED BALANCE SHEET DATA June 28, 2021 December 28, 2020 Cash and cash equivalents, $ 558,291 $ 451,565 including restricted cash Accounts and notes 378,762 381,105 receivable, net Contract assets 300,697 273,256 Inventories 126,355 115,651 Total current assets 1,404,515 1,248,758 Property, plant and 650,764 650,435 equipment, net Operating lease right of 20,134 24,340 use asset Other non-current assets 950,323 972,411 Total assets 3,025,736 2,895,944 Accounts payable $ 364,005 $ 327,102 Total current liabilities 554,750 518,046 Debt, net of discount 926,523 842,853 Total long-term 1,000,615 933,889 liabilities Total equity 1,470,371 1,444,009 Total liabilities and 3,025,736 2,895,944 equity SUPPLEMENTAL DATA Second Quarter First Two Quarters 2021 2020 2021 2020 Gross margin 17.6 % 17.6 % 16.6 % 17.0 % Operating margin 7.2 % 4.0 % 5.5 % 3.7 % End Market Breakdown, excludes Mobility: Second Quarter 2021 2020 Aerospace/Defense 33 % 33 % Automotive 18 % 12 % Data Center Computing 14 % 13 % Medical/Industrial/ 19 % 21 % Instrumentation Networking/ 15 % 20 % Communications Other 1 % 1 % Stock-based Compensation: Second Quarter 2021 2020 Amount included in: Cost of goods sold $ 861 $ 620 Selling and 442 291 marketing General and 2,015 1,690 administrative Research and 32 46 development Total stock-based $ 3,350 $ 2,647 compensation expense Operating Segment Data: Second Quarter Net sales: 2021 2020 PCB $ 553,480 $ 536,843 RF&S Components 13,903 12,091 Other^1 - 21,364 Total net sales $ 567,383 $ 570,298 Operating segment income: PCB $ 73,055 $ 77,714 RF&S Components 4,730 4,310 Corporate & Other^1 (26,472 ) (48,083 ) Total operating 51,313 33,941 segment income Amortization of definite-lived (10,425 ) (10,945 ) intangibles Total operating 40,888 22,996 income Total other expense (10,773 ) (18,117 ) Income from continuing operations before $ 30,115 $ 4,879 income taxes RECONCILIATIONS^2 Second Quarter First Two Quarters 2021 2020 2021 2020 Non-GAAP gross profit reconciliation^3: GAAP gross profit from $ 99,910 $ 100,430 $ 181,510 $ 181,772 continuing operations Add back item: Amortization of definite-lived 1,383 1,384 2,767 2,767 intangibles Accelerated - 2,397 - 2,397 depreciation Stock-based 861 620 2,026 1,470 compensation Unrealized gain on (99 ) - (99 ) - commodity hedge Restructuring and - - 254 - other charges Non-GAAP gross profit $ 102,055 $ 104,831 $ 186,458 $ 188,406 Non-GAAP gross margin 18.0 % 18.4 % 17.0 % 17.6 % Non-GAAP operating income reconciliation^4: GAAP operating income from continuing $ 40,888 $ 22,996 $ 60,688 $ 39,178 operations Add back items: Amortization of definite-lived 10,425 10,945 21,330 21,890 intangibles Accelerated - 2,754 - 2,754 depreciation Stock-based 3,350 2,647 7,559 7,482 compensation (Gain) on sale of (11 ) - (421 ) - assets Unrealized gain on (99 ) - (99 ) - commodity hedge Restructuring, acquisition-related, 566 14,273 3,851 15,869 and other charges Non-GAAP operating $ 55,119 $ 53,615 $ 92,908 $ 87,173 income Non-GAAP operating 9.7 % 9.4 % 8.5 % 8.2 % margin Non-GAAP net income and EPS reconciliation^5: GAAP net income from $ 28,261 $ 9,346 $ 25,069 $ 6,126 continuing operations Add back items: Amortization of definite-lived 10,425 10,945 21,330 21,890 intangibles Accelerated - 2,754 - 2,754 depreciation Stock-based 3,350 2,647 7,559 7,482 compensation Non-cash interest 536 3,604 1,073 7,157 expense (Gain) on sale of (11 ) (274 ) (991 ) (507 ) assets Change in fair value of warrant (1,027 ) - (1,199 ) - liabilities Loss on extinguishment of - - 15,217 - debt Unrealized gain on (99 ) - (99 ) - commodity hedge Restructuring, acquisition-related, 566 14,273 3,851 15,869 and other charges Income taxes^6 (1,958 ) (10,292 ) (6,509 ) (11,107 ) Non-GAAP net income $ 40,043 $ 33,003 $ 65,301 $ 49,664 Non-GAAP earnings per $ 0.36 $ 0.31 $ 0.60 $ 0.46 diluted share Adjusted EBITDA reconciliation^7: GAAP net income from $ 28,261 $ 9,346 $ 25,069 $ 6,126 continuing operations Add back items: Income tax provision 1,854 (4,467 ) 747 (2,344 ) (benefit) Interest expense 11,079 18,572 22,468 38,353 Amortization of definite-lived 10,425 10,945 21,330 21,890 intangibles Depreciation expense 21,241 25,756 42,717 50,128 Stock-based 3,350 2,647 7,559 7,482 compensation (Gain) on sale of (11 ) (274 ) (991 ) (507 ) assets Change in fair value of warrant (1,027 ) - (1,199 ) - liabilities Loss on extinguishment of - - 15,217 - debt Unrealized gain on (99 ) - (99 ) - commodity hedge Restructuring, acquisition-related, 566 14,273 3,851 15,869 and other charges Adjusted EBITDA $ 75,639 $ 76,798 $ 136,669 $ 136,997 Adjusted EBITDA margin 13.3 % 13.5 % 12.5 % 12.8 % Free cash flow reconciliation^8: Operating cash flow $ 56,909 $ 100,820 $ 98,054 $ 107,447 Capital expenditures, (22,727 ) (21,339 ) (43,693 ) (45,271 ) net Free cash flow $ 34,182 $ 79,481 $ 54,361 $ 62,176 ^1Other represents the SH E-MS and SZ results. ^2This information provides a reconciliation of non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP EPS, and adjusted EBITDA to the financial information in our consolidated condensed statements of operations. ^3 Non-GAAP gross profit and gross margin measures exclude amortization of intangibles, accelerated depreciation, stock-based compensation expense, unrealized gain on commodity hedge, restructuring and other charges. ^4 Non-GAAP operating income and operating margin measures exclude amortization of intangibles, accelerated depreciation, stock-based compensation expense, gain on sale of assets, unrealized gain on commodity hedge, restructuring, acquisition-related costs, and other charges. ^5 This information provides non-GAAP net income and non-GAAP EPS, which are non-GAAP financial measures. Management believes that both measures -- which add back amortization of intangibles, accelerated depreciation, stock-based compensation expense, non-cash interest expense on debt (before consideration of capitalized interest), gain on sale of assets, change in fair value of warrant liabilities, loss on extinguishment of debt, unrealized gain on commodity hedge, restructuring, acquisition-related costs, 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. ^6 Income tax adjustments reflect the difference between income taxes based on a non-GAAP tax rate and a forecasted annual GAAP tax rate. ^7Adjusted EBITDA is defined as earnings before interest expense, income taxes, depreciation, amortization of intangibles, stock-based compensation expense, gain on sale of assets, change in fair value of warrant liabilities, loss on extinguishment of debt, unrealized gain on commodity hedge, restructuring, acquisition-related costs, 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. ^8 Free Cash Flow in 2020 has been restated to exclude the Mobility business which was sold in Q2 of 2020.



ContactSameer Desai,Vice President, Corporate Development & Investor RelationsSameer.desai@ttmtech.com714-327-3050