COSTA MESA, Calif., Aug. 01, 2018 (GLOBE NEWSWIRE) — TTM Technologies, Inc. (NASDAQ:TTMI), a leading global printed circuit board (“PCB”) manufacturer, today reported results for the second quarter of fiscal 2018, which ended July 2nd, 2018. The financial results provided below for the second quarter include a partial quarter contribution from the acquisition of Anaren, Inc. (“Anaren”), which was completed on April 18th, 2018.
Second Quarter 2018 Highlights
- Net sales were $716.9 million
- GAAP net income was $84.0 million, or $0.65 per diluted share
- Non-GAAP net income was $52.3 million, or $0.48 per diluted share
- Completed the acquisition of Anaren, Inc.
- Cash flow from operations of $55.6 million
Second Quarter 2018 Financial Results
Net sales for the second quarter of 2018 were $716.9 million, compared to $627.2 million in the second quarter of 2017 and $663.6 million in the first quarter of 2018.
GAAP operating income for the second quarter of 2018 was $31.7 million, compared to $45.1 million in the second quarter of 2017 and $30.0 million in the first quarter of 2018.
GAAP net income for the second quarter of 2018 was $84.0 million, or $0.65 per diluted share. This compares to $20.6 million, or $0.18 per diluted share, in the second quarter of 2017 and $10.1 million, or $0.09 per diluted share, in the first quarter of 2018. The current quarter results reflect the release of a tax valuation allowance of $74.6 million.
On a non-GAAP basis, net income for the second quarter of 2018 was $52.3 million, or $0.48 per diluted share. This compares to non-GAAP net income of $33.3 million, or $0.31 per diluted share, for the second quarter of 2017 and $28.0 million, or $0.26 per diluted share, in the first quarter of 2018.
Adjusted EBITDA for the second quarter of 2018 was $115.9 million, or 16.2 percent of net sales, compared to adjusted EBITDA of $85.5 million, or 13.6 percent of net sales, for the second quarter of 2017 and $83.2 million, or 12.5 percent of net sales, for the first quarter of 2018.
“In the second quarter, TTM delivered strong results,” said Tom Edman, CEO of TTM. “We were pleased to see solid year over year growth from the aerospace and defense, automotive, computing and medical/industrial/instrumentation end markets that more than offset weakness in our cellular end market. Further, Anaren’s contribution in the quarter was better than forecasted. Longer term, Anaren’s deep RF expertise will strengthen TTM’s ability to engage with customers at the design stage in order to provide more value added solutions.”
Business Outlook
For the third quarter of 2018 TTM estimates that revenue will be in the range of $730 million to $770 million, and non-GAAP net income will be in the range of $0.41 to $0.47 per diluted share.
To Access the Live Webcast/Conference Call
TTM will host a conference call and webcast to discuss second quarter 2018 results and third quarter 2018 outlook on Wednesday, August 1st, 2018, 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 800-289-0438 or international 323-794-2423 (ID 2502044). The conference call also will be webcast on TTM’s website at www.ttm.com.
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 www.ttm.com.
About TTM
TTM Technologies, Inc. is a leading global printed circuit board manufacturer, focusing on quick-turn and volume production of technologically advanced PCBs, backplane assemblies and electro-mechanical solutions 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
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
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 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 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 such 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 such 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 Quarter | First Two Quarters | |||||||||||||||||||||||
| 2018 | 2017 | 2018 | 2018 | 2017 | |||||||||||||||||||||
| CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||
| Net sales | $ | 716,887 | $ | 627,182 | $ | 663,582 | $ | 1,380,469 | $ | 1,252,429 | |||||||||||||||
| Cost of goods sold | 600,747 | 531,315 | 574,904 | 1,175,651 | 1,051,543 | ||||||||||||||||||||
| Gross profit | 116,140 | 95,867 | 88,678 | 204,818 | 200,886 | ||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||
| Selling and marketing | 18,619 | 15,851 | 17,628 | 36,247 | 32,506 | ||||||||||||||||||||
| General and administrative | 45,721 | 29,885 | 34,127 | 79,848 | 60,707 | ||||||||||||||||||||
| Amortization of definite-lived intangibles | 19,489 | 5,910 | 5,861 | 25,350 | 11,822 | ||||||||||||||||||||
| Restructuring charges | 577 | 416 | 1,061 | 1,638 | 1,025 | ||||||||||||||||||||
| (Gain)/loss on sale of assets | – | (1,251 | ) | – | – | (2,800 | ) | ||||||||||||||||||
| Total operating expenses | 84,406 | 50,811 | 58,677 | 143,083 | 103,260 | ||||||||||||||||||||
| Operating income | 31,734 | 45,056 | 30,001 | 61,735 | 97,626 | ||||||||||||||||||||
| Interest expense | (20,453 | ) | (12,922 | ) | (13,747 | ) | (34,200 | ) | (26,518 | ) | |||||||||||||||
| Other, net | 6,178 | (5,825 | ) | (1,107 | ) | 5,071 | (7,535 | ) | |||||||||||||||||
| Income before income taxes | 17,459 | 26,309 | 15,147 | 32,606 | 63,573 | ||||||||||||||||||||
| Income tax (provision) / benefit | 66,545 | (5,558 | ) | (5,050 | ) | 61,495 | (9,697 | ) | |||||||||||||||||
| Net income | $ | 84,004 | $ | 20,751 | $ | 10,097 | $ | 94,101 | $ | 53,876 | |||||||||||||||
| Net income attributable to noncontrolling interest | – | (160 | ) | – | – | (326 | ) | ||||||||||||||||||
| Net income attributable to stockholders | $ | 84,004 | $ | 20,591 | $ | 10,097 | $ | 94,101 | $ | 53,550 | |||||||||||||||
| Earnings per share attributable to stockholders: | |||||||||||||||||||||||||
| Basic | $ | 0.81 | $ | 0.20 | $ | 0.10 | $ | 0.91 | $ | 0.53 | |||||||||||||||
| Diluted | $ | 0.65 | $ | 0.18 | $ | 0.09 | $ | 0.75 | |||||||||||||||||