• TTM Technologies, Inc. Reports Second Quarter 2024 Results

    来源: Nasdaq GlobeNewswire / 31 7月 2024 08:00:01   America/New_York

    SANTA ANA, Calif., July 31, 2024 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (NASDAQ: TTMI), a leading global manufacturer of technology solutions including mission systems, radio frequency (“RF”) components and RF microwave/microelectronic assemblies, quick-turn and technologically advanced printed circuit boards (“PCB”), today reported results for the second quarter 2024, which ended on July 1, 2024.  

    Second Quarter 2024 Highlights

    • Net sales were $605.1 million
    • GAAP net income of $26.4 million, or $0.25 per diluted share
    • Non-GAAP net income was $40.1 million, or $0.39 per diluted share
    • Cash flow from operations was $41.9 million
    • Repurchased 1.39 million shares of common stock for $25.1 million at an average price of $18.09 per share
    • Anticipate close of the refinancing of $346.5 million of a senior secured term loan at an interest rate of SOFR + 2.25%

    Second Quarter 2024 GAAP Financial Results

    Net sales for the second quarter of 2024 were $605.1 million, compared to $546.5 million in the second quarter of 2023.

    GAAP operating income for the second quarter of 2024 was $39.0 million compared to GAAP operating income for the second quarter of 2023 of $21.4 million.

    GAAP net income for the second quarter of 2024 was $26.4 million, or $0.25 per diluted share, compared to GAAP net income of $6.8 million, or $0.07 per diluted share in the second quarter of 2023.

    Second Quarter 2024 Non-GAAP Financial Results
            
    On a non-GAAP basis, net income for the second quarter of 2024 was $40.1 million, or $0.39 per diluted share. This compares to non-GAAP net income of $33.0 million, or $0.32 per diluted share, for the second quarter of 2023.

    Adjusted EBITDA in the second quarter of 2024 was $84.6 million, or 14.0% of sales compared to adjusted EBITDA of $74.7 million, or 13.7% of sales for the second quarter of 2023.

    “TTM reported Non-GAAP EPS that was above the guided range and demonstrated solid year on year growth due to higher revenues and improved operational execution. Revenues were above the guided range, representing the second consecutive quarter of year on year growth due to demand strength in our Aerospace and Defense and Data Center Computing end markets, the latter being driven by generative AI,” said Tom Edman, CEO of TTM. “In addition, cash flow from operations was a healthy $41.9 million enabling us to repurchase stock while maintaining a solid balance sheet with a net leverage ratio of 1.4x. Finally, we refinanced our Term Loan B, reducing interest expense going forward,” concluded Mr. Edman.

    Refinancing of Term Loan B

    We anticipate that on August 1, 2024, we will close the refinancing of $346.5 million of a senior secured term loan (“New Term Loan Facility”) at an interest rate of SOFR + 2.25%, 50 basis points lower than our previous Term B Loans issued in May 2023. Upon closing, the new Term B Loans will be issued at par and maintain the same maturity of May 2030. Once issued, this debt will amend and restate TTM’s previous senior secured term loan facility. We anticipate using the proceeds from the New Term Loan Facility to refinance $346.5 million of such outstanding indebtedness. We have used cash on hand to pay fees and expenses of approximately $1 million related to the refinancing activity. Once finalized, the new financing is expected to generate annual interest savings of approximately $1.7 million.

    Business Outlook

    For the third quarter of 2024, TTM estimates that revenues will be in the range of $580 million to $620 million, and non-GAAP net income will be in the range of $0.37 to $0.43 per diluted share.  

    With respect to the Company’s 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 management’s 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 has not been provided because the Company is unable to provide such reconciliation without unreasonable effort. For the same reasons, TTM is unable to address the probable significance of the information.

    Live Webcast/Conference Call
    TTM will host a conference call and webcast to discuss second quarter 2024 results and the third quarter 2024 outlook on Wednesday, July 31, 2024, at 1:00 p.m. Eastern Time (10:00 a.m. Pacific Time). The conference call will include forward-looking statements.

    Access to the conference call is available by clicking on the registration link TTM Technologies, Inc. second quarter 2024 conference call. Registering participants will receive dial in information and a unique PIN to join the call. Participants can register at any time up to the start of the conference call. The conference call will also be simulcast on the company’s website, and can be accessed by clicking on the link TTM Technologies Inc. second quarter 2024 webcast. The webcast will remain accessible for one week following the live event.

    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 TTM Technologies Inc. second quarter 2024 webcast.  

    About TTM
    TTM Technologies, Inc. is a leading global manufacturer of technology solutions including mission systems, RF components/RF microwave/microelectronic assemblies, quick-turn and technologically advanced PCBs. 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 company’s actual results when disclosed in its Form 10-Q may differ from these preliminary results as a result of the completion of the company’s financial closing procedures, final adjustments, completion of the review by the company’s 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, 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
    To supplement our consolidated condensed financial statements presented on a GAAP basis, 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 reconciliations below 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)
                    
                    
    CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONSSecond Quarter First Two Quarters
     2024 2023 2024 2023
                    
                    
                    
    Net sales$605,137  $546,509  $1,175,250  $1,090,946 
    Cost of goods sold 487,910   448,002   954,304   906,316 
                    
    Gross profit 117,227   98,507   220,946   184,630 
                    
    Operating expenses:               
    Selling and marketing 19,798   18,180   40,092   39,482 
    General and administrative 38,604   37,840   82,274   72,913 
    Research and development 8,547   6,424   15,868   13,509 
    Amortization of definite-lived intangibles 10,256   3,852   21,685   25,816 
    Restructuring charges 1,036   10,803   4,974   14,970 
    Total operating expenses 78,241   77,099   164,893   166,690 
                    
    Operating income 38,986   21,408   56,053   17,940 
                    
    Interest expense (12,219)  (11,843)  (24,543)  (24,650)
    Loss on extinguishment of debt -   (1,154)  -   (1,154)
    (Loss) gain on sale of subsidiary -   (69)  -   1,270 
    Other, net 3,765   5,068   13,091   6,266 
                    
    Income (loss) before income taxes 30,532   13,410   44,601   (328)
    Income tax (provision) benefit (4,180)  (6,586)  (7,783)  1,338 
                    
    Net income$26,352  $6,824  $36,818  $1,010 
                    
    Earnings per share:               
    Basic$0.26  $0.07  $0.36  $0.01 
    Diluted 0.25   0.07   0.35   0.01 
                    
    Weighted-average shares used in computing per share amounts:               
    Basic 101,234   102,759   101,593   102,570 
    Diluted 103,889   104,820   103,993   104,575 
                    
    Reconciliation of the denominator used to calculate basic earnings per share and diluted earnings per share:               
    Weighted-average shares outstanding 101,234   102,759   101,593   102,570 
    Dilutive effect of performance-based stock units, restricted stock units and stock options 2,655   2,061   2,400   2,005 
    Diluted shares 103,889   104,820   103,993   104,575 
                    


    SELECTED BALANCE SHEET DATA July 1, 2024 January 1, 2024
    Cash and cash equivalents, including restricted cash$446,247  $450,208 
    Accounts and notes receivable, net 400,714   413,557 
    Receivable from sale of SH E-MS property -   6,737 
    Contract assets 340,120   292,050 
    Inventories 216,906   213,075 
    Total current assets 1,452,631   1,429,687 
    Property, plant and equipment, net 838,243   807,667 
    Operating lease right of use asset 81,886   86,286 
    Other non-current assets 970,604   1,000,023 
    Total assets 3,343,364   3,323,663 
            
    Short-term debt, including current portion of long-term debt$2,625  $3,500 
    Accounts payable 371,189   334,609 
    Total current liabilities 712,100   703,984 
    Debt, net of discount 913,428   914,336 
    Total long-term liabilities 1,102,365   1,108,640 
    Total equity 1,528,899   1,511,039 
    Total liabilities and equity 3,343,364   3,323,663 
            


    SUPPLEMENTAL DATASecond Quarter First Two Quarters
     2024 2023 2024 2023
    Gross margin19.4% 18.0% 18.8% 16.9%
    Operating margin6.4% 3.9% 4.8% 1.6%
                
    End Market Breakdown:           
     Second Quarter      
     2024 2023      
    Aerospace and Defense45% 47%      
    Automotive14% 17%      
    Data Center Computing21% 12%      
    Medical/Industrial/Instrumentation14% 16%      
    Networking6% 8%      
                
    Stock-based Compensation:           
     Second Quarter      
    Amount included in:2024 2023      
    Cost of goods sold$1,941  $1,497       
    Selling and marketing836  698       
    General and administrative3,468  2,677       
    Research and development335  249       
    Total stock-based compensation expense$6,580  $5,121       
                
    Operating Segment Data:           
     Second Quarter      
    Net sales:2024 2023      
    PCB$596,107  $536,531       
    RF&S Components9,030  9,978       
    Total net sales$605,137  $546,509       
                
    Operating segment income:           
    PCB$90,927  $58,479       
    RF&S Components2,052  3,202       
    Corporate & Other(41,402) (33,998)      
    Total operating segment income51,577  27,683       
    Amortization of definite-lived intangibles(12,591) (6,275)      
    Total operating income38,986  21,408       
    Total other expense(8,454) (7,998)      
    Income before income taxes$30,532  $13,410       
                





                  
                  
    RECONCILIATIONS1 Second Quarter First Two Quarters 
           2024   2023   2024   2023  
                  
     Non-GAAP gross profit reconciliation2:         
      GAAP gross profit   $117,227  $98,507  $220,946  $184,630  
      Add back item:         
      Amortization of definite-lived intangibles    2,335   2,423   4,671   8,231  
      Stock-based compensation    1,941   1,497   3,970   3,159  
      Unrealized (gain) loss on commodity hedge     (434)  867   (1,186)  (1,261) 
      Purchase accounting related inventory markup    -   164   -   327  
      Other charges    -   1,416   (162)  2,649  
      Non-GAAP gross profit   $121,069  $104,874  $228,239  $197,735  
      Non-GAAP gross margin  20.0%  19.2%  19.4%  18.1% 
                  
     Non-GAAP operating income reconciliation3:         
      GAAP operating income   $38,986  $21,408  $56,053  $17,940  
      Add back items:         
      Amortization of definite-lived intangibles   12,591   6,275   26,356   34,047  
      Stock-based compensation   6,580   5,121   13,367   10,361  
      Gain on sale of property    (14,420)  (42)  (7,973)  (215) 
      Unrealized (gain) loss on commodity hedge    (434)  867   (1,186)  (1,261) 
      Purchase accounting related inventory markup   -   164   -   327  
      Restructuring, acquisition-related and other charges   11,220   12,297   8,599   18,241  
      Non-GAAP operating income   $54,523  $46,090  $95,216  $79,440  
      Non-GAAP operating margin  9.0%  8.4%  8.1%  7.3% 
                  
     Non-GAAP net income and EPS reconciliation4:         
      GAAP net income   $26,352  $6,824  $36,818  $1,010  
      Add back items:         
      Amortization of definite-lived intangibles   12,591   6,275   26,356   34,047  
      Stock-based compensation   6,580   5,121   13,367   10,361  
      Non-cash interest expense   506   497   1,024   1,224  
      Gain on sale of property    (14,420)  (42)  (7,973)  (215) 
      Loss on extinguishment of debt    -   1,154   -   1,154  
      Loss (gain) on sale of subsidiary    -   69   -   (1,270) 
      Unrealized (gain) loss on commodity hedge    (434)  867   (1,186)  (1,261) 
      Purchase accounting related inventory markup   -   164   -   327  
      Restructuring, acquisition-related and other charges    11,308   12,297   8,599   18,241  
      Income taxes5   (2,352)  (182)  (4,087)  (11,926) 
      Non-GAAP net income   $40,131  $33,044  $72,918  $51,692  
      Non-GAAP earnings per diluted share $0.39  $0.32  $0.70  $0.49  
                  
     Adjusted EBITDA reconciliation6:         
      GAAP net income   $26,352  $6,824  $36,818  $1,010  
      Add back items:         
      Income tax provision (benefit)    4,180   6,586   7,783   (1,338) 
      Interest expense   12,219   11,843   24,543   24,650  
      Amortization of definite-lived intangibles   12,591   6,275   26,356   34,047  
      Depreciation expense   26,184   24,937   50,880   50,190  
      Stock-based compensation   6,580   5,121   13,367   10,361  
      Gain on sale of property    (14,420)  (42)  (7,973)  (215) 
      Loss on extinguishment of debt    -   1,154   -   1,154  
      Loss (gain) on sale of subsidiary    -   69   -   (1,270) 
      Unrealized (gain) loss on commodity hedge    (434)  867   (1,186)  (1,261) 
      Purchase accounting related inventory markup   -   164   -   327  
      Restructuring, acquisition-related and other charges    11,308   10,924   8,761   15,592  
      Adjusted EBITDA $84,560  $74,722  $159,349  $133,247  
      Adjusted EBITDA margin  14.0%  13.7%  13.6%  12.2% 
                  
     Free cash flow reconciliation:         
      Operating cash flow $41,855  $25,884  $85,750  $80,962  
      Capital expenditures, net  (9,955)  (49,417)  (59,251)  (80,124) 
      Free cash flow $31,900  $(23,533) $26,499  $838  
                  

    1 This 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.

    2 Non-GAAP gross profit and gross margin measures exclude amortization of intangibles, stock-based compensation expense, unrealized (gain) loss on commodity hedge, purchase accounting related inventory markup, and other charges.

    3 Non-GAAP operating income and operating margin measures exclude amortization of intangibles, stock-based compensation expense, gain on sale of assets, unrealized (gain) loss on commodity hedge, purchase accounting related inventory markup, restructuring, acquisition-related costs, and other charges.

    4 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, stock-based compensation expense, non-cash interest expense on debt (before consideration of capitalized interest), gain on sale of assets, loss on extinguishment of debt, loss (gain) on sale of subsidiary, unrealized (gain) loss on commodity hedge, purchase accounting related inventory markup, 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.

    5 Income tax adjustments reflect the difference between income taxes based on a non-GAAP tax rate and a forecasted annual GAAP tax rate.

    6 Adjusted EBITDA is defined as earnings before income taxes, interest expense, amortization of intangibles, depreciation, stock-based compensation expense, gain on sale of assets, loss on extinguishment of debt, loss (gain) on sale of subsidiary, unrealized (gain) loss on commodity hedge, purchase accounting related inventory markup, 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.


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