• TTM Technologies, Inc. Reports Third Quarter 2024 Results

    来源: Nasdaq GlobeNewswire / 30 10月 2024 16:05:00   America/New_York

    SANTA ANA, Calif., Oct. 30, 2024 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (NASDAQ: TTMI) (“TTM”), a leading global manufacturer of technology solutions including mission systems, radio frequency (“RF”) components and RF microwave/microelectronic assemblies and printed circuit boards (“PCB”s) today reported results for the third quarter 2024, which ended on September 30, 2024.

    Third Quarter 2024 Highlights

    • Net sales were $616.5 million
    • GAAP net income of $14.3 million, or $0.14 per diluted share
    • Non-GAAP net income was $42.7 million, or $0.41 per diluted share, inclusive of a $17.8 million pre-tax, non-operational, foreign exchange loss
    • Cash flow from operations was $65.1 million, or 10.6% of sales
    • Book to bill of 1.20 for the third quarter
    • A&D program backlog a record $1.49 billion

    Third Quarter 2024 GAAP Financial Results

    Net sales for the third quarter of 2024 were $616.5 million, compared to $572.6 million in the third quarter of 2023.

    GAAP operating income for the third quarter of 2024 was $51.0 million compared to GAAP operating loss for the third quarter of 2023 of $10.2 million, inclusive of a $44.1 million goodwill impairment charge related to the RF&S Components segment.

    GAAP net income for the third quarter of 2024 was $14.3 million, or $0.14 per diluted share, compared to GAAP net loss for the third quarter of 2023 of $37.1 million, or ($0.36) per diluted share. GAAP net income for the third quarter of 2024 included a $17.8 million pre-tax foreign exchange loss, compared to a $0.9 million pre-tax foreign exchange gain in the third quarter of 2023.

    Third Quarter 2024 Non-GAAP Financial Results

    On a non-GAAP basis, net income for the third quarter of 2024 was $42.7 million, or $0.41 per diluted share. This compares to non-GAAP net income of $44.9 million, or $0.43 per diluted share, for the third quarter of 2023. Non-GAAP net income for the third quarter of 2024 included a $17.8 million pre-tax foreign exchange loss, compared to a $0.9 million pre-tax foreign exchange gain in the third quarter of 2023.

    Adjusted EBITDA in the third quarter of 2024 was $84.4 million, or 13.7% of sales compared to adjusted EBITDA of $84.1 million, or 14.7% of sales for the third quarter of 2023. Adjusted EBITDA for the third quarter of 2024 included a $17.8 million foreign exchange loss, compared to a $0.9 million foreign exchange gain in the third quarter of 2023.

    “TTM delivered strong operating margin performance due to higher revenues, favorable mix, and outstanding operational execution. Revenues reflected the third 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 10.6% of revenues enabling the company to maintain a solid balance sheet with a net leverage ratio of 1.4x,” concluded Mr. Edman.

    Business Outlook

    For the fourth quarter of 2024, TTM estimates that revenues will be in the range of $610 million to $650 million, and non-GAAP net income will be in the range of $0.44 to $0.50 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 third quarter 2024 results and the fourth quarter 2024 outlook on Wednesday, October 30, 2024, at 4:30 p.m. Eastern Time (1:30 p.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. third 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. third 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. third quarter 2024 webcast.  

    About TTM
    TTM Technologies, Inc. is a leading global manufacturer of technology solutions, including mission systems, radio frequency (“RF”) components, RF microwave/microelectronic assemblies, and quick-turn and technologically advanced printed circuit boards (“PCB”s). 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.

    Contact:
    Sameer Desai,
    Vice President, Corporate Development & Investor Relations
    Sameer.desai@ttmtech.com
    714-327-3050

     
    TTM TECHNOLOGIES, INC.
    Selected Unaudited Financial Information
    (In thousands, except per share data)
                  
                  
    CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS Third Quarter First Three Quarters 
           2024   2023   2024   2023  
                  
                  
                  
     Net sales  $616,538  $572,582  $ 1,791,788  $1,663,528  
     Cost of goods sold  486,650   459,312   1,440,954   1,365,628  
                  
     Gross profit     129,888   113,270   350,834   297,900  
                  
     Operating expenses:         
      Selling and marketing  19,961   18,763   60,053   58,245  
      General and administrative  42,567   38,916   124,841   111,829  
      Research and development  8,054   6,173   23,922   19,682  
      Amortization of definite-lived intangibles  6,951   11,429   28,636   37,245  
      Impairment of goodwill  -   44,100   -   44,100  
      Restructuring charges  1,393   4,091   6,367   19,061  
      Total operating expenses  78,926   123,472   243,819   290,162  
                  
     Operating income (loss)     50,962   (10,202)  107,015   7,738  
                  
     Interest expense  (11,768)  (10,101)  (36,311)  (34,751) 
     Loss on extinguishment of debt     -   -   -   (1,154) 
     Gain on sale of subsidiary     -   -   -   1,270  
     Other, net   (14,177)  3,044   (1,086)  9,310  
                  
     Income (loss) before income taxes     25,017   (17,259)  69,618   (17,587) 
     Income tax provision     (10,706)  (19,807)  (18,489)  (18,469) 
                  
     Net income (loss)    $14,311  $(37,066) $51,129  $(36,056) 
                  
     Earnings (loss) per share:            
      Basic  $0.14  $(0.36) $0.50  $(0.35) 
      Diluted  0.14   (0.36)  0.49   (0.35) 
                  
     Weighted-average shares used in computing per share amounts:         
      Basic   101,958   103,510   101,704   102,873  
      Diluted  103,828   103,510   103,928   102,873  
                  
     Reconciliation of the denominator used to calculate basic earnings per share and diluted earnings per share:       
     Weighted-average shares outstanding  101,958   103,510   101,704   102,873  
     Dilutive effect of performance-based stock units, restricted stock units and stock options  1,870   -   2,224   -  
     Diluted shares  103,828   103,510   103,928   102,873  
                  


                
    SELECTED BALANCE SHEET DATA  September 30, 2024  January 1, 2024 
     Cash and cash equivalents, including restricted cash $469,500  $450,208  
     Accounts and notes receivable, net  422,885   413,557  
     Receivable from sale of SH E-MS property  -   6,737  
     Contract assets  362,668   292,050  
     Inventories  227,913   213,075  
     Total current assets  1,524,827   1,429,687  
     Property, plant and equipment, net  859,247   807,667  
     Operating lease right of use asset  79,500   86,286  
     Other non-current assets  955,244   1,000,023  
     Total assets  3,418,818   3,323,663  
                
     Short-term debt, including current portion of long-term debt $3,465  $3,500  
     Accounts payable  387,071   334,609  
     Total current liabilities  763,250   703,984  
     Debt, net of discount  912,809   914,336  
     Total long-term liabilities  1,108,459   1,108,640  
     Total equity  1,547,109   1,511,039  
     Total liabilities and equity  3,418,818   3,323,663  
                


                  
    SUPPLEMENTAL DATA Third Quarter First Three Quarters 
           2024  2023  2024  2023  
     Gross margin  21.1%  19.8% 19.6% 17.9% 
     Operating margin  8.3%  (1.8)% 6.0% 0.5% 
                  
     End Market Breakdown:         
          Third Quarter     
          2024   2023      
      Aerospace and Defense  46%  45%     
      Automotive  14%  15%     
      Data Center Computing  19%  17%     
      Medical/Industrial/Instrumentation  14%  16%     
      Networking  7%  7%     
                  
     Stock-based Compensation:         
          Third Quarter     
      Amount included in:  2024   2023      
       Cost of goods sold $2,719   $2,212       
       Selling and marketing  1,087    888       
       General and administrative  4,192    2,958       
       Research and development  332    309       
       Total stock-based compensation expense $8,330   $6,367       
                  
     Operating Segment Data:         
          Third Quarter     
      Net sales:  2024   2023      
      PCB  $606,793   $563,676       
      RF&S Components  9,745    8,906       
       Total net sales $616,538   $572,582       
                  
      Operating segment income:         
      PCB  $96,659   $82,868       
      RF&S Components  2,427    (41,441
    		)     
      Corporate & Other  (38,838
    		)  (37,865
    		)     
       Total operating segment income  60,248    3,562       
      Amortization of definite-lived intangibles  (9,286
    		)  (13,764
    		)     
       Total operating income (loss)   50,962    (10,202
    		)     
       Total other expense  (25,945)  (7,057
    		)     
      Income (loss) before income taxes   $25,017   $(17,259
    		)     
                  


                  
    RECONCILIATIONS1 Third Quarter First Three Quarters 
          2024   2023   2024   2023  
                  
     Non-GAAP gross profit reconciliation2:         
      GAAP gross profit   $129,888   $113,270   $350,834   $297,900   
      Add back item:         
       Amortization of definite-lived intangibles  2,335    2,335    7,006    10,566   
       Stock-based compensation  2,719    2,212    6,689    5,371   
       Unrealized (gain) loss on commodity hedge   (79
    		)  770    (1,265
    		)  (491
    		) 
       Purchase accounting related inventory markup  -    -    -    327   
       Other charges  871    725    709    3,374   
      Non-GAAP gross profit   $135,734   $119,312   $363,973   $317,047   
      Non-GAAP gross margin  22.0
    		%  20.8
    		%  20.3
    		%  19.1
    		% 
                  
     Non-GAAP operating income reconciliation3:         
      GAAP operating income (loss)   $50,962   $(10,202
    		) $107,015   $7,738   
      Add back items:         
       Amortization of definite-lived intangibles  9,286    13,764    35,642    47,811   
       Stock-based compensation  8,330    6,367    21,697    16,728   
       Gain on sale of property   -    -    (14,420
    		)  -   
       Unrealized (gain) loss on commodity hedge   (79
    		)  770    (1,265
    		)  (491
    		) 
       Purchase accounting related inventory markup  -    -    -    327   
       Restructuring, acquisition-related and other charges  4,260    47,192    19,306    65,218   
      Non-GAAP operating income   $72,759   $57,891   $167,975   $137,331   
      Non-GAAP operating margin  11.8
    		%  10.1
    		%  9.4
    		%  8.3
    		% 
                  
     Non-GAAP net income and EPS reconciliation4:         
      GAAP net income (loss)   $14,311   $(37,066
    		) $51,129   $(36,056
    		) 
      Add back items:         
      Amortization of definite-lived intangibles  9,286    13,764    35,642    47,811   
      Stock-based compensation  8,330    6,367    21,697    16,728   
      Non-cash interest expense  493    502    1,517    1,726   
      Gain on sale of property   -    -    (14,420
    		)  -   
      Loss on extinguishment of debt   -    -    -    1,154   
      Gain on sale of subsidiary   -    -    -    (1,270
    		) 
      Unrealized (gain) loss on commodity hedge   (79
    		)  770    (1,265
    		)  (491
    		) 
      Purchase accounting related inventory markup  -    -    -    327   
      Restructuring, acquisition-related and other charges   4,260    47,192    19,306    65,218   
      Income taxes5  6,064    13,353    1,977    1,427   
      Non-GAAP net income   $42,665   $44,882   $115,583   $96,574   
      Non-GAAP earnings per diluted share $0.41   $0.43   $1.11   $0.92   
                  
     Non-GAAP diluted number of shares:         
      GAAP diluted number of shares  103,828    103,510    103,928    102,873   
      Dilutive effect of performance-based stock units, restricted stock units and stock options    -    1,419    -    1,809   
      Non-GAAP diluted number of shares  103,828    104,929    103,928    104,682   
                  
     Adjusted EBITDA reconciliation6:         
      GAAP net income (loss)   $14,311   $(37,066
    		) $51,129   $(36,056
    		) 
      Add back items:         
       Income tax provision   10,706    19,807    18,489    18,469   
       Interest expense  11,768    10,101    36,311    34,751   
       Amortization of definite-lived intangibles  9,286    13,764    35,642    47,811   
       Depreciation expense  27,829    23,870    78,709    74,060   
       Stock-based compensation  8,330    6,367    21,697    16,728   
       Gain on sale of property   -    -    (14,420
    		)  -   
       Loss on extinguishment of debt   -    -    -    1,154   
       Gain on sale of subsidiary   -    -    -    (1,270
    		) 
       Unrealized (gain) loss on commodity hedge   (79
    		)  770    (1,265
    		)  (491
    		) 
       Purchase accounting related inventory markup  -    -    -    327   
       Restructuring, acquisition-related and other charges   2,265    46,467    17,473    61,844   
      Adjusted EBITDA $84,416   $84,080   $243,765   $217,327   
      Adjusted EBITDA margin  13.7
    		%  14.7
    		%  13.6
    		%  13.1
    		% 
                  
     Free cash flow reconciliation:         
      Operating cash flow $65,090   $58,852   $150,840   $139,814   
      Capital expenditures, net  (40,859
    		)  (33,659
    		)  (100,110
    		)  (113,783
    		) 
      Free cash flow $24,231   $25,193   $50,730   $26,031   
                  


     
    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 property, 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 property, loss on extinguishment of debt, 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 property, loss on extinguishment of debt, 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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