TTM Technologies, Inc. Reports Second Quarter 2016 Results
July 27 2016 - 4:05PM
TTM Technologies, Inc. (Nasdaq:TTMI), a major global printed
circuit board (“PCB”) manufacturer, today reported results for the
second quarter 2016, which ended June 27, 2016. Our results
include the contribution from the Viasystems Group, Inc.
("Viasystems") acquisition, which was completed on May 31, 2015.
Second Quarter 2016 Highlights
- Net sales were $601.8 million
- GAAP net income attributable to stockholders was $18.5 million,
or $0.17 per diluted share
- Non-GAAP net income attributable to stockholders was $28.4
million, or $0.28 per diluted share
- Adjusted EBITDA was $90.2 million
- Debt repayment of $30 million
Second Quarter 2016 Financial Results Net sales
for the second quarter of 2016 were $601.8 million, compared to
$445.4 million in the second quarter of 2015 and $583.3 million in
the first quarter of 2016.
GAAP operating income for the second quarter of 2016 was $34.7
million, compared to an operating loss of $7.1 million in the
second quarter of 2015 and operating income of $18.9 million in the
first quarter of 2016.
GAAP net income attributable to stockholders for the second
quarter of 2016 was $18.5 million, or $0.17 per diluted
share. This compares to a GAAP net loss attributable to
stockholders of $36.6 million, or $0.41 per share, in the second
quarter of 2015 and a GAAP net loss of $7.3 million, or $0.07 per
share, in the first quarter of 2016.
On a non-GAAP basis, net income attributable to stockholders for
the second quarter of 2016 was $28.4 million, or $0.28 per diluted
share. This compares to non-GAAP net income of $14.9 million,
or $0.17 per diluted share, for the second quarter of 2015 and
$13.9 million, or $0.14 per diluted share, in the first quarter of
2016.
Adjusted EBITDA for the second quarter of 2016 was $90.2
million, or 15 percent of net sales, compared to adjusted EBITDA of
$59.7 million, or 13.4 percent of net sales, for the second quarter
of 2015 and $74.5 million, or 12.8 percent of net sales, for the
first quarter of 2016.
“Our second quarter results reflect continued year on year
improvements in revenue and earnings as sales to our customer base
in diversified end markets have dampened historical volatility,”
said Tom Edman, CEO of TTM. “Strong operational execution
across all of our business units drove non-GAAP earnings well above
the high end of our guidance. A rebound in the cellular and
communications end markets more than offset modest declines in the
automotive and computing end markets, and our aerospace and defense
end market hit a quarterly record in revenues.”
Business Outlook For the third quarter of 2016,
TTM estimates that revenue will be in the range of $620 million to
$660 million, and non-GAAP net income will be in the range of $0.29
to $0.35 per diluted share.
To Access the Live Webcast/Conference CallTTM
will host a conference call and webcast to discuss second quarter
2016 results and third quarter 2016 outlook on Wednesday, July 27,
2016, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The
conference call may include forward-looking statements.
Telephone access is available by dialing domestic 888-417-8516
or international 719-325-2491 (ID 7624574). The conference
call also will be webcast on TTM’s 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 TTM’s website at www.ttm.com.
About TTMTTM Technologies, Inc. is a major
global printed circuit board manufacturer, focusing on quick-turn
and technologically advanced PCBs, backplane assemblies and
electro-mechanical solutions. 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, the successful integration of Viasystems,
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 MeasuresThis
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.
- Tables Follow -
|
TTM TECHNOLOGIES, INC. |
Selected Unaudited Financial
Information |
(In thousands, except per share
data) |
|
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|
|
|
|
|
|
|
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|
Second Quarter |
|
First Quarter |
|
First Two Quarters |
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
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|
2016 |
|
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2015 |
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CONSOLIDATED CONDENSED STATEMENTS OF
OPERATIONS |
|
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|
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|
|
|
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|
|
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|
Net
sales |
|
|
$ |
601,847 |
|
|
$ |
445,445 |
|
|
$ |
583,258 |
|
|
$ |
1,185,105 |
|
|
$ |
774,609 |
|
|
Cost of
goods sold |
|
|
504,202 |
|
|
|
384,255 |
|
|
|
499,695 |
|
|
|
1,003,897 |
|
|
|
661,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
97,645 |
|
|
|
61,190 |
|
|
|
83,563 |
|
|
|
181,208 |
|
|
|
112,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
marketing |
|
|
16,569 |
|
|
|
12,301 |
|
|
|
17,306 |
|
|
|
33,875 |
|
|
|
21,756 |
|
|
|
General and
administrative |
|
|
37,931 |
|
|
|
52,009 |
|
|
|
36,149 |
|
|
|
74,080 |
|
|
|
85,999 |
|
|
|
Amortization of definite-lived intangibles |
|
|
5,949 |
|
|
|
3,910 |
|
|
|
5,947 |
|
|
|
11,896 |
|
|
|
5,784 |
|
|
|
Restructuring charges |
|
|
3,989 |
|
|
|
30 |
|
|
|
1,913 |
|
|
|
5,902 |
|
|
|
509 |
|
|
|
Impairment
of long-lived assets |
|
|
- |
|
|
|
- |
|
|
|
3,346 |
|
|
|
3,346 |
|
|
|
- |
|
|
|
Gain on
sale of assets |
|
|
(1,472 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,472 |
) |
|
|
(2,504 |
) |
|
|
|
Total
operating expenses |
|
|
62,966 |
|
|
|
68,250 |
|
|
|
64,661 |
|
|
|
127,627 |
|
|
|
111,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) |
|
|
34,679 |
|
|
|
(7,060 |
) |
|
|
18,902 |
|
|
|
53,581 |
|
|
|
1,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(20,084 |
) |
|
|
(12,778 |
) |
|
|
(21,784 |
) |
|
|
(41,868 |
) |
|
|
(18,543 |
) |
|
Loss on
extinguishment of debt |
|
|
- |
|
|
|
(802 |
) |
|
|
- |
|
|
|
- |
|
|
|
(802 |
) |
|
Other,
net |
|
|
|
3,191 |
|
|
|
681 |
|
|
|
1,209 |
|
|
|
4,400 |
|
|
|
266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes |
|
|
17,786 |
|
|
|
(19,959 |
) |
|
|
(1,673 |
) |
|
|
16,113 |
|
|
|
(17,874 |
) |
|
Income tax
(provision) benefit |
|
|
979 |
|
|
|
(16,624 |
) |
|
|
(5,477 |
) |
|
|
(4,498 |
) |
|
|
(15,263 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
18,765 |
|
|
$ |
(36,583 |
) |
|
$ |
(7,150 |
) |
|
$ |
11,615 |
|
|
$ |
(33,137 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest |
|
|
(217 |
) |
|
|
(29 |
) |
|
|
(114 |
) |
|
|
(331 |
) |
|
|
(29 |
) |
|
Net income
(loss) attributable to stockholders |
|
$ |
18,548 |
|
|
$ |
(36,612 |
) |
|
$ |
(7,264 |
) |
|
$ |
11,284 |
|
|
$ |
(33,166 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per share attributable to stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
0.19 |
|
|
$ |
(0.41 |
) |
|
$ |
(0.07 |
) |
|
$ |
0.11 |
|
|
$ |
(0.38 |
) |
|
|
Diluted |
|
|
$ |
0.17 |
|
|
$ |
(0.41 |
) |
|
$ |
(0.07 |
) |
|
$ |
0.11 |
|
|
$ |
(0.38 |
) |
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
Weighted-average shares used in computing per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
100,170 |
|
|
|
88,834 |
|
|
|
99,596 |
|
|
|
99,883 |
|
|
|
86,218 |
|
|
|
Diluted |
|
|
|
126,950 |
|
|
|
88,834 |
|
|
|
99,596 |
|
|
|
100,789 |
|
|
|
86,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
Reconciliation of the numerator and denominator used to calculate
basic earnings per share and diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to stockholders |
|
$ |
18,548 |
|
|
|
|
|
|
|
|
|
|
|
Add back
items: interest expense, net of tax |
|
|
3,285 |
|
|
|
|
|
|
|
|
|
|
Adjusted
net income attributable to stockholders |
|
$ |
21,833 |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding |
|
|
100,170 |
|
|
|
|
|
|
|
|
|
|
Dilutive
effect of convertible debt |
|
|
25,940 |
|
|
|
|
|
|
|
|
|
|
Dilutive effect of performance-based stock units, restricted
stock units and stock options |
|
|
840 |
|
|
|
|
|
|
|
|
|
|
Diluted
shares |
|
|
126,950 |
|
|
|
|
|
|
|
|
|
|
Earnings
per share attributable to stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 27, 2016 |
|
December 28, 2015 |
|
|
|
|
|
|
|
Cash and
cash equivalents, including restricted cash |
|
$ |
216,151 |
|
|
$ |
262,630 |
|
|
|
|
|
|
|
|
Accounts
and notes receivable, net |
|
|
424,038 |
|
|
|
454,001 |
|
|
|
|
|
|
|
|
Inventories |
|
|
|
270,790 |
|
|
|
268,923 |
|
|
|
|
|
|
|
|
Total
current assets |
|
|
941,975 |
|
|
|
1,022,520 |
|
|
|
|
|
|
|
|
Property,
plant and equipment, net |
|
|
1,047,187 |
|
|
|
1,103,067 |
|
|
|
|
|
|
|
|
Other
non-current assets |
|
|
532,625 |
|
|
|
514,546 |
|
|
|
|
|
|
|
|
Total
assets |
|
|
2,521,787 |
|
|
|
2,640,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
debt, including current portion of long-term debt |
|
$ |
80,358 |
|
|
$ |
157,375 |
|
|
|
|
|
|
|
|
Accounts
payable |
|
|
334,283 |
|
|
|
347,916 |
|
|
|
|
|
|
|
|
Total
current liabilities |
|
|
622,489 |
|
|
|
744,994 |
|
|
|
|
|
|
|
|
Debt, net
of discount |
|
|
997,207 |
|
|
|
1,013,411 |
|
|
|
|
|
|
|
|
Total
long-term liabilities |
|
|
1,069,574 |
|
|
|
1,068,470 |
|
|
|
|
|
|
|
|
Total
equity |
|
|
829,724 |
|
|
|
826,669 |
|
|
|
|
|
|
|
|
Total
liabilities and equity |
|
|
2,521,787 |
|
|
|
2,640,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
First Quarter |
|
First Two Quarters |
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Gross
margin |
|
|
16.2 |
% |
|
|
13.7 |
% |
|
|
14.3 |
% |
|
|
15.3 |
% |
|
|
14.6 |
% |
|
Operating
margin |
|
|
5.8 |
% |
|
|
(1.6 |
)% |
|
|
3.2 |
% |
|
|
4.5 |
% |
|
|
0.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End Market
Breakdown: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
First Quarter |
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace/Defense |
|
|
16 |
% |
|
|
15 |
% |
|
|
15 |
% |
|
|
|
|
|
|
Automotive |
|
|
19 |
% |
|
|
7 |
% |
|
|
21 |
% |
|
|
|
|
|
|
Cellular
Phone |
|
|
10 |
% |
|
|
24 |
% |
|
|
9 |
% |
|
|
|
|
|
|
Computing/Storage/Peripherals |
|
|
13 |
% |
|
|
11 |
% |
|
|
13 |
% |
|
|
|
|
|
|
Medical/Industrial/Instrumentation |
|
|
16 |
% |
|
|
12 |
% |
|
|
16 |
% |
|
|
|
|
|
|
Networking/Communications |
|
|
25 |
% |
|
|
26 |
% |
|
|
24 |
% |
|
|
|
|
|
|
Other |
|
|
|
1 |
% |
|
|
5 |
% |
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
Compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter |
|
First Quarter |
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
|
|
|
|
Amount
included in: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
$ |
429 |
|
|
$ |
243 |
|
|
$ |
320 |
|
|
|
|
|
|
|
|
Selling and
marketing |
|
|
271 |
|
|
|
269 |
|
|
|
210 |
|
|
|
|
|
|
|
|
General and
administrative |
|
|
2,145 |
|
|
|
1,802 |
|
|
|
1,716 |
|
|
|
|
|
|
|
|
Total
stock-based compensation expense |
|
$ |
2,845 |
|
|
$ |
2,314 |
|
|
$ |
2,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Segment Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
First Quarter |
|
|
|
|
|
|
Net
sales: |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
|
|
|
|
PCB |
|
|
$ |
563,574 |
|
|
$ |
417,901 |
|
|
$ |
529,945 |
|
|
|
|
|
|
|
E-M
Solutions |
|
|
40,427 |
|
|
|
28,514 |
|
|
|
56,478 |
|
|
|
|
|
|
|
Corporate |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
Total
sales |
|
|
604,001 |
|
|
|
446,415 |
|
|
|
586,423 |
|
|
|
|
|
|
|
Inter-segment sales |
|
|
(2,154 |
) |
|
|
(970 |
) |
|
|
(3,165 |
) |
|
|
|
|
|
|
|
Total net
sales |
|
$ |
601,847 |
|
|
$ |
445,445 |
|
|
$ |
583,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
segment income: |
|
|
|
|
|
|
|
|
|
|
|
|
PCB |
|
|
$ |
64,970 |
|
|
$ |
30,456 |
|
|
$ |
49,367 |
|
|
|
|
|
|
|
E-M
Solutions |
|
|
(153 |
) |
|
|
(110 |
) |
|
|
387 |
|
|
|
|
|
|
|
Corporate |
|
|
(24,189 |
) |
|
|
(33,496 |
) |
|
|
(24,905 |
) |
|
|
|
|
|
|
|
Total
operating segment income |
|
|
40,628 |
|
|
|
(3,150 |
) |
|
|
24,849 |
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
(5,949 |
) |
|
|
(3,910 |
) |
|
|
(5,947 |
) |
|
|
|
|
|
|
|
Total
operating income |
|
|
34,679 |
|
|
|
(7,060 |
) |
|
|
18,902 |
|
|
|
|
|
|
|
Total other
expense |
|
|
(16,893 |
) |
|
|
(12,899 |
) |
|
|
(20,575 |
) |
|
|
|
|
|
|
Income
before income taxes |
|
$ |
17,786 |
|
|
$ |
(19,959 |
) |
|
$ |
(1,673 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATIONS1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
First Quarter |
|
First Two Quarters |
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Non-GAAP
gross profit reconciliation2: |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit |
|
$ |
97,645 |
|
|
$ |
61,190 |
|
|
$ |
83,563 |
|
|
$ |
181,208 |
|
|
$ |
112,749 |
|
|
|
Add back
item: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory
markup |
|
|
- |
|
|
|
7,408 |
|
|
|
- |
|
|
|
- |
|
|
|
7,408 |
|
|
|
|
Stock-based
compensation |
|
|
429 |
|
|
|
243 |
|
|
|
320 |
|
|
|
749 |
|
|
|
468 |
|
|
|
Non-GAAP gross profit |
|
$ |
98,074 |
|
|
$ |
68,841 |
|
|
$ |
83,883 |
|
|
$ |
181,957 |
|
|
$ |
120,625 |
|
|
|
Non-GAAP gross margin |
|
|
16.3 |
% |
|
|
15.5 |
% |
|
|
14.4 |
% |
|
|
15.4 |
% |
|
|
15.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating income reconciliation3: |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
operating income (loss) |
|
$ |
34,679 |
|
|
$ |
(7,060 |
) |
|
$ |
18,902 |
|
|
$ |
53,581 |
|
|
$ |
1,205 |
|
|
|
Add back
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
5,949 |
|
|
|
3,910 |
|
|
|
5,947 |
|
|
|
11,896 |
|
|
|
5,784 |
|
|
|
|
Stock-based
compensation |
|
|
2,845 |
|
|
|
2,314 |
|
|
|
2,246 |
|
|
|
5,091 |
|
|
|
4,354 |
|
|
|
|
Gain on
sale of assets |
|
|
(1,472 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,472 |
) |
|
|
(2,504 |
) |
|
|
|
Acquisition-related costs |
|
|
605 |
|
|
|
22,627 |
|
|
|
691 |
|
|
|
1,296 |
|
|
|
30,862 |
|
|
|
|
Inventory
markup |
|
|
- |
|
|
|
7,408 |
|
|
|
- |
|
|
|
- |
|
|
|
7,408 |
|
|
|
|
Impairments
and restructuring charges |
|
|
3,989 |
|
|
|
30 |
|
|
|
5,259 |
|
|
|
9,248 |
|
|
|
509 |
|
|
|
Non-GAAP operating income |
|
$ |
46,595 |
|
|
$ |
29,229 |
|
|
$ |
33,045 |
|
|
$ |
79,640 |
|
|
$ |
47,618 |
|
|
|
Non-GAAP operating margin |
|
|
7.7 |
% |
|
|
6.6 |
% |
|
|
5.7 |
% |
|
|
6.7 |
% |
|
|
6.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income and EPS attributable to stockholders
reconciliation4: |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income (loss) attributable to stockholders |
|
$ |
18,548 |
|
|
$ |
(36,612 |
) |
|
$ |
(7,264 |
) |
|
$ |
11,284 |
|
|
$ |
(33,166 |
) |
|
|
Add back
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
5,949 |
|
|
|
3,910 |
|
|
|
5,947 |
|
|
|
11,896 |
|
|
|
5,784 |
|
|
|
|
Stock-based
compensation |
|
|
2,845 |
|
|
|
2,314 |
|
|
|
2,246 |
|
|
|
5,091 |
|
|
|
4,354 |
|
|
|
|
Non-cash
interest expense |
|
|
5,608 |
|
|
|
3,289 |
|
|
|
6,154 |
|
|
|
11,762 |
|
|
|
5,914 |
|
|
|
|
Gain on
sale of assets |
|
|
(1,472 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,472 |
) |
|
|
(2,504 |
) |
|
|
|
Acquisition-related costs |
|
|
605 |
|
|
|
22,627 |
|
|
|
691 |
|
|
|
1,296 |
|
|
|
30,862 |
|
|
|
|
Inventory
markup |
|
|
- |
|
|
|
7,408 |
|
|
|
- |
|
|
|
- |
|
|
|
7,408 |
|
|
|
|
Impairments, restructuring and other charges |
|
|
3,989 |
|
|
|
832 |
|
|
|
5,259 |
|
|
|
9,248 |
|
|
|
1,311 |
|
|
|
|
Income
taxes |
|
|
(7,649 |
) |
|
|
11,110 |
|
|
|
821 |
|
|
|
(6,828 |
) |
|
|
5,744 |
|
|
|
Non-GAAP
net income attributable to stockholders |
|
$ |
28,423 |
|
|
$ |
14,878 |
|
|
$ |
13,854 |
|
|
$ |
42,277 |
|
|
$ |
25,707 |
|
|
|
Non-GAAP earnings per diluted share attributable to
stockholders |
|
$ |
0.28 |
|
|
$ |
0.17 |
|
|
$ |
0.14 |
|
|
$ |
0.42 |
|
|
$ |
0.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted number of shares5: |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
shares |
|
|
126,950 |
|
|
|
89,864 |
|
|
|
99,596 |
|
|
|
126,730 |
|
|
|
87,164 |
|
|
|
Dilutive
effect of convertible debt |
|
|
(25,940 |
) |
|
|
- |
|
|
|
- |
|
|
|
(25,940 |
) |
|
|
- |
|
|
|
Non-GAAP diluted number of shares |
|
|
101,010 |
|
|
|
89,864 |
|
|
|
99,596 |
|
|
|
100,790 |
|
|
|
87,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA reconciliation6: |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income (loss) |
|
$ |
18,765 |
|
|
$ |
(36,583 |
) |
|
$ |
(7,150 |
) |
|
$ |
11,615 |
|
|
$ |
(33,137 |
) |
|
|
Add back
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision (benefit) |
|
|
(979 |
) |
|
|
16,624 |
|
|
|
5,477 |
|
|
|
4,498 |
|
|
|
15,263 |
|
|
|
|
Interest
expense |
|
|
20,084 |
|
|
|
12,778 |
|
|
|
21,784 |
|
|
|
41,868 |
|
|
|
18,543 |
|
|
|
|
Amortization of definite-lived intangibles |
|
|
5,949 |
|
|
|
3,910 |
|
|
|
5,947 |
|
|
|
11,896 |
|
|
|
5,784 |
|
|
|
|
Depreciation expense |
|
|
40,457 |
|
|
|
29,776 |
|
|
|
40,227 |
|
|
|
80,684 |
|
|
|
54,312 |
|
|
|
|
Stock-based
compensation |
|
|
2,845 |
|
|
|
2,314 |
|
|
|
2,246 |
|
|
|
5,091 |
|
|
|
4,354 |
|
|
|
|
Gain on
sale of assets |
|
|
(1,472 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,472 |
) |
|
|
(2,504 |
) |
|
|
|
Acquisition-related costs |
|
|
605 |
|
|
|
22,627 |
|
|
|
691 |
|
|
|
1,296 |
|
|
|
30,862 |
|
|
|
|
Inventory
markup |
|
|
- |
|
|
|
7,408 |
|
|
|
- |
|
|
|
- |
|
|
|
7,408 |
|
|
|
|
Impairments, restructuring and other charges |
|
|
3,989 |
|
|
|
832 |
|
|
|
5,259 |
|
|
|
9,248 |
|
|
|
1,311 |
|
|
|
Adjusted
EBITDA |
|
$ |
90,243 |
|
|
$ |
59,686 |
|
|
$ |
74,481 |
|
|
$ |
164,724 |
|
|
$ |
102,196 |
|
|
|
Adjusted
EBITDA margin |
|
|
15.0 |
% |
|
|
13.4 |
% |
|
|
12.8 |
% |
|
|
13.9 |
% |
|
|
13.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
cash flow |
|
|
80,057 |
|
|
|
15,543 |
|
|
|
17,892 |
|
|
|
97,949 |
|
|
|
82,897 |
|
|
|
Add back
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment of
accreted interest on convertible sr. notes |
|
|
- |
|
|
|
8,731 |
|
|
|
- |
|
|
|
- |
|
|
|
8,731 |
|
|
|
|
Payment of
acquisition-related costs |
|
|
691 |
|
|
|
23,358 |
|
|
|
2,324 |
|
|
|
3,015 |
|
|
|
28,078 |
|
|
|
Adjusted
operating cash flow |
|
|
80,748 |
|
|
|
47,632 |
|
|
|
20,216 |
|
|
|
100,964 |
|
|
|
119,706 |
|
|
|
Capital
expenditures, net |
|
|
(18,183 |
) |
|
|
(23,687 |
) |
|
|
(20,116 |
) |
|
|
(38,299 |
) |
|
|
(46,463 |
) |
|
|
Free cash
flow |
|
$ |
62,565 |
|
|
$ |
23,945 |
|
|
$ |
100 |
|
|
$ |
62,665 |
|
|
$ |
73,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 This information provides a reconciliation of non-GAAP gross
profit, non-GAAP operating income, non-GAAP net income attributable
to stockholders, non-GAAP EPS attributable to stockholders, and
adjusted EBITDA to the financial information in our consolidated
condensed statements of operations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 Non-GAAP gross profit and gross margin measures exclude
stock-based compensation expense, and inventory markup. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Non-GAAP operating income and operating margin measures
exclude amortization of intangibles, stock-based compensation
expense, gain on sale of assets, inventory markup,
acquisition-related costs, asset impairments, restructuring and
other charges. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 This information provides non-GAAP net income attributable
to stockholders and non-GAAP EPS attributable to stockholders,
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, inventory markup, acquisition-related costs, asset
impairments, restructuring 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 Non-GAAP diluted number of shares used in computing non-GAAP
earnings per share attributable to stockholders excludes the
dilutive effect of convertible debt. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 Adjusted EBITDA is defined as earnings before interest
expense, income taxes, depreciation, amortization of intangibles,
stock-based compensation expense, gain on sale of assets, inventory
markup, acquisition-related costs, asset impairments, restructuring
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,
Senior Director, Corporate
Development & Investor Relations
sameer.desai@ttmtech.com
714-327-3050
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