• TTM Technologies, Inc. Reports Fiscal Second Quarter 2023 Results

    来源: Nasdaq GlobeNewswire / 02 8月 2023 07:30:01   America/Chicago

    SANTA ANA, Calif., Aug. 02, 2023 (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, and printed circuit boards (“PCB”), today reported results for the second quarter fiscal 2023, which ended on July 3, 2023.

    Second Quarter 2023 Highlights

    • Net sales were $546.5 million
    • GAAP net income of $6.8 million, or $0.07 per diluted share
    • Non-GAAP net income was $33.0 million, or $0.32 per diluted share
    • Completed refinancing of Term Loan B, US Asset Backed Revolving Credit Facility (“ABL”), and Asia ABL facility
    • Completed shutdown of Hong Kong manufacturing facility

    Second Quarter 2023 GAAP Financial Results

    Net sales for the second quarter of 2023 were $546.5 million, compared to $625.6 million in the second quarter of 2022.

    GAAP operating income for the second quarter of 2023 was $21.4 million, compared to GAAP operating income of $37.2 million in the second quarter of 2022.

    GAAP net income for the second quarter of 2023 was $6.8 million, or $0.07 per diluted share, compared to GAAP net income of $27.8 million, or $0.27 per diluted share in the second quarter of 2022.

    Second Quarter 2023 Non-GAAP Financial Results

    On a non-GAAP basis, net income for the second quarter of 2023 was $33.0 million, or $0.32 per diluted share. This compares to non-GAAP net income of $55.3 million, or $0.54 per diluted share, for the second quarter of 2022.

    Adjusted EBITDA in the second quarter of 2023 was $74.7 million, or 13.7% of sales compared to adjusted EBITDA of $96.9 million, or 15.5% of sales for the second quarter of 2022.

    “Revenues were within the guided range due to strength in our Aerospace and Defense and Data Center Computing end markets,” said Tom Edman, CEO of TTM. “Non-GAAP EPS was well above the guided range as a result of improved execution in our North America region. In addition, we successfully completed the refinancing of our Term Loan B, US ABL, and Asia ABL facilities, resulting in a conservative capital structure with no significant maturities before 2028 and a net leverage ratio of 1.5x,” concluded Mr. Edman.

    Business Outlook

    For the third quarter of 2023 , TTM estimates that revenues will be in the range of $550 million to $590 million, and non-GAAP net income will be in the range of $0.25 to $0.31 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 2023 results and the third quarter 2023 outlook on Wednesday, August 2nd, 2023, 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 fiscal year 2023 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 also will be webcast on TTM’s website at TTM Technologies, Inc. second quarter fiscal year 2023 webcast.

    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 fiscal year 2023 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, 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, 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)
             
             
      Second Quarter First Two Quarters
      2023 2022 2023 2022
                     
    CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS               
                     
     Net sales$546,509  $625,550  $1,090,946  $1,206,810 
     Cost of goods sold 448,002   508,477   906,316   998,814 
                     
     Gross profit 98,507   117,073   184,630   207,996 
                     
     Operating expenses:               
     Selling and marketing 18,180   17,557   39,482   35,829 
     General and administrative 37,840   48,350   72,913   81,120 
     Research and development 6,424   5,233   13,509   10,788 
     Amortization of definite-lived intangibles 3,852   8,275   25,816   16,549 
     Restructuring charges 10,803   456   14,970   640 
     Total operating expenses 77,099   79,871   166,690   144,926 
                     
     Operating income 21,408   37,202   17,940   63,070 
                     
     Interest expense (11,843)  (10,711)  (24,650)  (22,072)
     Loss on extinguishment of debt (1,154)  -   (1,154)  - 
     (Loss) gain on sale of subsidiary (69)  -   1,270   - 
     Other, net 5,068   7,638   6,266   9,608 
                     
     Income (loss) before income taxes 13,410   34,129   (328)  50,606 
     Income tax (provision) benefit (6,586)  (6,337)  1,338   (5,568)
                     
     Net income$6,824  $27,792  $1,010  $45,038 
                     
     Earnings per share:               
     Basic$0.07  $0.27  $0.01  $0.44 
     Diluted 0.07   0.27   0.01   0.43 
                     
     Weighted-average shares used in computing per share amounts:               
     Basic 102,759   101,270   102,570   101,941 
     Diluted 104,820   103,221   104,575   103,762 
                     
     Reconciliation of the denominator used to calculate basic earnings per share and diluted earnings per share:               
     Weighted-average shares outstanding 102,759   101,270   102,570   101,941 
     Dilutive effect of warrants -   -   -   3 
     Dilutive effect of performance-based stock units, restricted stock units & stock options 2,061   1,951   2,005   1,818 
     Diluted shares 104,820   103,221   104,575   103,762 
                     


    SELECTED BALANCE SHEET DATA     
      July 3, 2023 January 2, 2023
     Cash and cash equivalents, including restricted cash$398,716  $402,749 
     Accounts and notes receivable, net 386,903   473,225 
     Receivable from sale of SH E-MS property 6,595   69,240 
     Contract assets 312,529   335,788 
     Inventories 186,765   170,639 
     Total current assets 1,336,054   1,493,056 
     Property, plant and equipment, net 709,577   724,204 
     Operating lease right of use asset 14,041   18,862 
     Other non-current assets 1,088,819   1,087,482 
     Total assets 3,148,491   3,323,604 
           
     Short-term debt, including current portion of long-term debt$3,500  $50,000 
     Accounts payable 306,298   361,788 
     Total current liabilities 602,384   761,325 
     Debt, net of discount 864,413   879,407 
     Total long-term liabilities 1,001,798   1,026,700 
     Total equity 1,544,309   1,535,579 
     Total liabilities and equity 3,148,491   3,323,604 
             


                     
    SUPPLEMENTAL DATA
    Second Quarter First Two Quarters
      2023
     2022
     2023 2022
     Gross margin 18.0%  18.7%  16.9%  17.2%
     Operating margin 3.9%  5.9%  1.6%  5.2%
                 
     End Market Breakdown:           
      Second Quarter        
      2023
     2022
            
     Aerospace and Defense 47%  30%        
     Automotive 17%  18%        
     Data Center Computing 12%  17%        
     Medical/Industrial/Instrumentation 16%  21%        
     Networking 8%  14%        
                 
     Stock-based Compensation:           
      Second Quarter        
     Amount included in:2023
     2022
            
     Cost of goods sold$1,497  $1,172         
     Selling and marketing 698   620         
     General and administrative 2,677   2,396         
     Research and development 249   239         
     Total stock-based compensation expense$5,121  $4,427         
                 
     Operating Segment Data:           
      Second Quarter        
     Net sales:2023
     2022
            
     PCB$536,531  $609,429         
     RF&S Components 9,978   16,121         
     Total net sales$546,509  $625,550         
                 
     Operating segment income:           
     PCB$58,479  $91,908         
     RF&S Components 3,202   6,678         
     Corporate & Other (33,998)  (51,726)        
     Total operating segment income 27,683   46,860         
     Amortization of definite-lived intangibles (6,275)  (9,658)        
     Total operating income 21,408   37,202         
     Total other expense (7,998)  (3,073)        
     Income before income taxes$13,410  $34,129         
                     


                     
    RECONCILIATIONS1 Second Quarter First Two Quarters
      2023 2022 2023 2022
             
     Non-GAAP gross profit reconciliation2:       
     GAAP gross profit$98,507  $117,073  $184,630  $207,996 
     Add back item:       
     Amortization of definite-lived intangibles 2,423   1,383   8,231   2,767 
     Accelerated depreciation associated with plant closures 1,416   105   2,649   105 
     Stock-based compensation 1,497   1,172   3,159   2,448 
     Unrealized loss (gain) on commodity hedge 867   5,210   (1,261)  3,807 
     Purchase accounting related inventory markup 164   -   327   - 
     Non-GAAP gross profit$104,874  $124,943  $197,735  $217,123 
     Non-GAAP gross margin 19.2%   20.0%   18.1%   18.0% 
             
     Non-GAAP operating income reconciliation3:       
     GAAP operating income$21,408  $37,202  $17,940  $63,070 
     Add back items:       
     Amortization of definite-lived intangibles 6,275   9,658   34,047   19,316 
     Accelerated depreciation associated with plant closures 1,373   105   2,649   105 
     Stock-based compensation 5,121   4,427   10,361   8,661 
     Gain on sale of assets (42)  -   (215)  - 
     Unrealized loss (gain) on commodity hedge 867   5,210   (1,261)  3,807 
     Purchase accounting related inventory markup 164   -   327   - 
     Restructuring, acquisition-related and other charges 10,924   11,012   15,592   12,150 
     Non-GAAP operating income$46,090  $67,614  $79,440  $107,109 
     Non-GAAP operating margin 8.4%   10.8%   7.3%   8.9% 
             
     Non-GAAP net income and EPS reconciliation4:       
     GAAP net income$6,824  $27,792  $1,010  $45,038 
     Add back items:       
     Amortization of definite-lived intangibles 6,275   9,658   34,047   19,316 
     Accelerated depreciation associated with plant closures 1,373   105   2,649   105 
     Stock-based compensation 5,121   4,427   10,361   8,661 
     Non-cash interest expense 497   537   1,224   1,069 
     Gain on sale of assets (42)  -   (215)  (827)
     Change in fair value of warrant liabilities -   -   -   (99)
     Loss on extinguishment of debt 1,154   -   1,154   - 
     Loss (gain) on sale of subsidiary 69   -   (1,270)  - 
     Unrealized loss (gain) on commodity hedge 867   5,210   (1,261)  3,807 
     Purchase accounting related inventory markup 164   -   327   - 
     Restructuring, acquisition-related and other charges 10,924   11,012   15,592   12,150 
     Income taxes5 (182)  (3,424)  (11,926)  (8,650)
     Non-GAAP net income$33,044  $55,317  $51,692  $80,570 
     Non-GAAP earnings per diluted share$0.32  $0.54  $0.49  $0.78 
             
     Adjusted EBITDA reconciliation6:       
     GAAP net income$6,824  $27,792  $1,010  $45,038 
     Add back items:       
     Income tax provision (benefit) 6,586   6,337   (1,338)  5,568 
     Interest expense 11,843   10,711   24,650   22,072 
     Amortization of definite-lived intangibles 6,275   9,658   34,047   19,316 
     Depreciation expense 24,937   21,789   50,190   43,289 
     Stock-based compensation 5,121   4,427   10,361   8,661 
     Gain on sale of assets (42)  -   (215)  (827)
     Change in fair value of warrant liabilities -   -   -   (99)
     Loss on extinguishment of debt 1,154   -   1,154   - 
     Loss (gain) on sale of subsidiary 69   -   (1,270)  - 
     Unrealized loss (gain) on commodity hedge 867   5,210   (1,261)  3,807 
     Purchase accounting related inventory markup 164   -   327   - 
     Restructuring, acquisition-related and other charges 10,924   11,012   15,592   12,150 
     Adjusted EBITDA$74,722  $96,936  $133,247  $158,975 
     Adjusted EBITDA margin 13.7%   15.5%   12.2%   13.2% 
             
     Free cash flow reconciliation:       
     Operating cash flow$25,884  $79,317  $80,962  $115,308 
     Capital expenditures, net (49,417)  (26,394)  (80,124)  (49,814)
     Free cash flow$(23,533) $52,923  $838  $65,494 
             


    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. 
     
                 
    Non-GAAP gross profit and gross margin measures exclude amortization of intangibles, accelerated depreciation associated with plant closures, stock-based compensation expense, unrealized loss (gain) on commodity hedge, and purchase accounting related inventory markup. 
     
                 
    Non-GAAP operating income and operating margin measures exclude amortization of intangibles, accelerated depreciation associated with plant closures, stock-based compensation expense, gain on sale of assets, unrealized loss (gain) on commodity hedge, purchase accounting related inventory markup, restructuring, acquisition-related costs, and other charges. 
     
                 
    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 associated with plant closures, 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, loss (gain) on sale of subsidiary, unrealized loss (gain) 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. 
     
     
     
     
                 
    Income tax adjustments reflect the difference between income taxes based on a non-GAAP tax rate and a forecasted annual GAAP tax rate. 
                 
    Adjusted EBITDA is defined as earnings before income taxes, interest expense, amortization of intangibles, depreciation, stock-based compensation expense, gain on sale of assets, change in fair value of warrant liabilities, loss on extinguishment of debt, loss (gain) on sale of subsidiary, unrealized loss (gain) 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. 
     
     
     
     
     
     

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


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