TTM Technologies, Inc. Reports Fiscal Second Quarter 2017 Results
August 02 2017 - 4:05PM
TTM Technologies, Inc. (NASDAQ:TTMI), a leading global printed
circuit board (“PCB”) manufacturer, today reported results for the
second quarter of fiscal 2017, which ended July 2nd, 2017.
Second Quarter 2017 Highlights
- Net sales were $627.2 million
- GAAP net income attributable to stockholders was $20.6 million,
or $0.18 per diluted share
- Non-GAAP net income attributable to stockholders was $33.3
million, or $0.31 per diluted share
- Excluding a $6.5 million foreign exchange loss, non-GAAP
earnings per diluted share would have been $0.36
- Adjusted EBITDA was $85.5 million
Second Quarter 2017 Financial Results Net sales
for the second quarter of 2017 were $627.2 million, compared to
$601.8 million in the second quarter of 2016 and $625.2 million in
the first quarter of 2017.
GAAP operating income for the second quarter of 2017 was $45.1
million, compared to $34.7 million in the second quarter of 2016
and $52.6 million in the first quarter of 2017.
GAAP net income attributable to stockholders for the second
quarter of 2017 was $20.6 million, or $0.18 per diluted
share. This compares to a GAAP net income attributable to
stockholders of $18.5 million, or $0.17 per diluted share, in the
second quarter of 2016 and a GAAP net income of $33 million, or
$0.28 per diluted share, in the first quarter of 2017.
On a non-GAAP basis, net income attributable to stockholders for
the second quarter of 2017 was $33.3 million, or $0.31 per diluted
share. This compares to non-GAAP net income attributable to
stockholders of $28.4 million, or $0.28 per diluted share, for the
second quarter of 2016 and $39.2 million, or $0.37 per diluted
share, in the first quarter of 2017.
Adjusted EBITDA for the second quarter of 2017 was $85.5
million, or 13.6 percent of net sales, compared to adjusted EBITDA
of $90.2 million, or 15.0 percent of net sales, for the second
quarter of 2016 and $95.6 million, or 15.3 percent of net sales,
for the first quarter of 2017.
“TTM delivered the third consecutive quarter of year on year
organic growth at 4 percent and our operating performance was in
line with our expectations” said Tom Edman, CEO of TTM. “On a
year over year basis, most end markets grew, with the fastest
growth coming from the cellular, computing, automotive and the
aerospace and defense end markets. Absent a foreign exchange
loss due to the weakening dollar, operating results were towards
the high end of guidance.”
Business Outlook For the third quarter of 2017,
TTM estimates that revenue will be in the range of $625 million to
$675 million, and non-GAAP net income attributable to stockholders
will be in the range of $0.29 to $0.35 per diluted share.
“Our third quarter is being impacted by a slower start in the
normal seasonal ramp of cellular products. We expect this
ramp to accelerate in the coming quarters” concluded Tom Edman.
To Access the Live Webcast/Conference CallTTM
will host a conference call and webcast to discuss second quarter
2017 results and third quarter 2017 outlook on Wednesday, August
2nd, 2017, 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 877-397-0272
or international 719-325-2322 (ID 5738422). 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 leading
global printed circuit board manufacturer, focusing on quick-turn
and volume production of 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, 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
First Quarter |
|
First Two Quarters |
|
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CONDENSED STATEMENTS OF
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
|
$ |
627,182 |
|
|
$ |
601,847 |
|
|
$ |
625,247 |
|
|
$ |
1,252,429 |
|
|
$ |
1,185,105 |
|
|
|
Cost of
goods sold |
|
|
531,315 |
|
|
|
504,202 |
|
|
|
520,228 |
|
|
|
1,051,543 |
|
|
|
1,003,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
95,867 |
|
|
|
97,645 |
|
|
|
105,019 |
|
|
|
200,886 |
|
|
|
181,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
marketing |
|
|
15,851 |
|
|
|
16,569 |
|
|
|
16,655 |
|
|
|
32,506 |
|
|
|
33,875 |
|
|
|
|
General and
administrative |
|
|
29,885 |
|
|
|
37,931 |
|
|
|
30,822 |
|
|
|
60,707 |
|
|
|
74,080 |
|
|
|
|
Amortization of definite-lived intangibles |
|
|
5,910 |
|
|
|
5,949 |
|
|
|
5,912 |
|
|
|
11,822 |
|
|
|
11,896 |
|
|
|
|
Restructuring charges |
|
|
416 |
|
|
|
3,989 |
|
|
|
609 |
|
|
|
1,025 |
|
|
|
5,902 |
|
|
|
|
Impairment
of long-lived assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,346 |
|
|
|
|
Gain on
sale of assets |
|
|
(1,251 |
) |
|
|
(1,472 |
) |
|
|
(1,549 |
) |
|
|
(2,800 |
) |
|
|
(1,472 |
) |
|
|
|
|
Total
operating expenses |
|
|
50,811 |
|
|
|
62,966 |
|
|
|
52,449 |
|
|
|
103,260 |
|
|
|
127,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
|
45,056 |
|
|
|
34,679 |
|
|
|
52,570 |
|
|
|
97,626 |
|
|
|
53,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(12,922 |
) |
|
|
(20,084 |
) |
|
|
(13,596 |
) |
|
|
(26,518 |
) |
|
|
(41,868 |
) |
|
|
Other,
net |
|
|
|
(5,825 |
) |
|
|
3,191 |
|
|
|
(1,710 |
) |
|
|
(7,535 |
) |
|
|
4,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
|
26,309 |
|
|
|
17,786 |
|
|
|
37,264 |
|
|
|
63,573 |
|
|
|
16,113 |
|
|
|
Income tax
provision |
|
|
(5,558 |
) |
|
|
979 |
|
|
|
(4,139 |
) |
|
|
(9,697 |
) |
|
|
(4,498 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
20,751 |
|
|
$ |
18,765 |
|
|
$ |
33,125 |
|
|
$ |
53,876 |
|
|
$ |
11,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest |
|
|
(160 |
) |
|
|
(217 |
) |
|
|
(166 |
) |
|
|
(326 |
) |
|
|
(331 |
) |
|
|
Net income
(loss) attributable to stockholders |
|
$ |
20,591 |
|
|
$ |
18,548 |
|
|
$ |
32,959 |
|
|
$ |
53,550 |
|
|
$ |
11,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per share attributable to stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
0.20 |
|
|
$ |
0.19 |
|
|
$ |
0.33 |
|
|
$ |
0.53 |
|
|
$ |
0.11 |
|
|
|
|
Diluted |
|
|
$ |
0.18 |
|
|
$ |
0.17 |
|
|
$ |
0.28 |
|
|
$ |
0.46 |
|
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computing per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
101,756 |
|
|
|
100,170 |
|
|
|
100,932 |
|
|
|
101,344 |
|
|
|
99,883 |
|
|
|
|
Diluted |
|
|
|
133,224 |
|
|
|
126,950 |
|
|
|
130,922 |
|
|
|
132,073 |
|
|
|
100,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of the numerator and denominator used to calculate
basic earnings per share and diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to stockholders |
|
$ |
20,591 |
|
|
$ |
18,548 |
|
|
$ |
32,959 |
|
|
$ |
53,550 |
|
|
|
|
|
|
Add back
items: interest expense, net of tax |
|
|
3,432 |
|
|
|
3,285 |
|
|
|
3,394 |
|
|
|
6,826 |
|
|
|
|
|
Adjusted
net income attributable to stockholders |
|
$ |
24,023 |
|
|
$ |
21,833 |
|
|
$ |
36,353 |
|
|
$ |
60,376 |
|
|
|
|
|
Weighted-average shares outstanding |
|
|
101,756 |
|
|
|
100,170 |
|
|
|
100,932 |
|
|
|
101,344 |
|
|
|
|
|
Dilutive
effect of convertible debt |
|
|
25,940 |
|
|
|
25,940 |
|
|
|
25,940 |
|
|
|
25,940 |
|
|
|
|
|
Dilutive
effect of warrants |
|
|
3,924 |
|
|
|
- |
|
|
|
2,183 |
|
|
|
3,054 |
|
|
|
|
|
Dilutive effect of performance-based stock units, restricted
stock units & stock options |
|
|
1,604 |
|
|
|
840 |
|
|
|
1,867 |
|
|
|
1,735 |
|
|
|
|
|
Diluted
shares |
|
|
133,224 |
|
|
|
126,950 |
|
|
|
130,922 |
|
|
|
132,073 |
|
|
|
|
|
Earnings
per share attributable to stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
0.20 |
|
|
$ |
0.19 |
|
|
$ |
0.33 |
|
|
$ |
0.53 |
|
|
|
|
|
|
Diluted |
|
|
$ |
0.18 |
|
|
$ |
0.17 |
|
|
$ |
0.28 |
|
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 3, 2017 |
|
January 2, 2017 |
|
|
|
|
|
|
|
|
Cash and
cash equivalents, including restricted cash |
|
$ |
246,947 |
|
|
$ |
256,277 |
|
|
|
|
|
|
|
|
|
Accounts
and notes receivable, net |
|
|
452,796 |
|
|
|
432,596 |
|
|
|
|
|
|
|
|
|
Inventories |
|
|
|
282,485 |
|
|
|
269,212 |
|
|
|
|
|
|
|
|
|
Total
current assets |
|
|
1,025,261 |
|
|
|
1,012,841 |
|
|
|
|
|
|
|
|
|
Property,
plant and equipment, net |
|
|
1,034,385 |
|
|
|
966,638 |
|
|
|
|
|
|
|
|
|
Other
non-current assets |
|
|
512,304 |
|
|
|
520,597 |
|
|
|
|
|
|
|
|
|
Total
assets |
|
|
2,571,950 |
|
|
|
2,500,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
debt, including current portion of long-term debt |
|
$ |
110,669 |
|
|
$ |
110,652 |
|
|
|
|
|
|
|
|
|
Accounts
payable |
|
|
365,254 |
|
|
|
355,774 |
|
|
|
|
|
|
|
|
|
Total
current liabilities |
|
|
722,675 |
|
|
|
689,065 |
|
|
|
|
|
|
|
|
|
Debt, net
of discount |
|
|
863,847 |
|
|
|
909,030 |
|
|
|
|
|
|
|
|
|
Total
long-term liabilities |
|
|
938,684 |
|
|
|
981,886 |
|
|
|
|
|
|
|
|
|
Total
equity |
|
|
910,591 |
|
|
|
829,125 |
|
|
|
|
|
|
|
|
|
Total
liabilities and equity |
|
|
2,571,950 |
|
|
|
2,500,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
First Quarter |
|
First Two Quarters |
|
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
Gross
margin |
|
|
15.3 |
% |
|
|
16.2 |
% |
|
|
16.8 |
% |
|
|
16.0 |
% |
|
|
15.3 |
% |
|
|
Operating
margin |
|
|
7.2 |
% |
|
|
5.8 |
% |
|
|
8.4 |
% |
|
|
7.8 |
% |
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End Market
Breakdown: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
First Quarter |
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace/Defense |
|
|
17 |
% |
|
|
16 |
% |
|
|
15 |
% |
|
|
|
|
|
|
|
Automotive |
|
|
20 |
% |
|
|
19 |
% |
|
|
20 |
% |
|
|
|
|
|
|
|
Cellular
Phone |
|
|
13 |
% |
|
|
10 |
% |
|
|
14 |
% |
|
|
|
|
|
|
|
Computing/Storage/Peripherals |
|
|
14 |
% |
|
|
13 |
% |
|
|
15 |
% |
|
|
|
|
|
|
|
Medical/Industrial/Instrumentation |
|
|
15 |
% |
|
|
16 |
% |
|
|
15 |
% |
|
|
|
|
|
|
|
Networking/Communications |
|
|
20 |
% |
|
|
25 |
% |
|
|
20 |
% |
|
|
|
|
|
|
|
Other |
|
|
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
Compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
First Quarter |
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
Amount
included in: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
$ |
639 |
|
|
$ |
429 |
|
|
$ |
394 |
|
|
|
|
|
|
|
|
|
Selling and
marketing |
|
$ |
386 |
|
|
|
271 |
|
|
|
253 |
|
|
|
|
|
|
|
|
|
General and
administrative |
|
|
3,975 |
|
|
|
2,145 |
|
|
|
2,981 |
|
|
|
|
|
|
|
|
|
Total
stock-based compensation expense |
|
$ |
5,000 |
|
|
$ |
2,845 |
|
|
$ |
3,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Segment Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
First Quarter |
|
|
|
|
|
|
|
Net
sales: |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
PCB |
|
|
$ |
576,566 |
|
|
$ |
563,574 |
|
|
$ |
586,695 |
|
|
|
|
|
|
|
|
E-M
Solutions |
|
|
52,898 |
|
|
|
40,427 |
|
|
|
41,669 |
|
|
|
|
|
|
|
|
Corporate |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Total
sales |
|
|
629,464 |
|
|
|
604,001 |
|
|
|
628,364 |
|
|
|
|
|
|
|
|
Inter-segment sales |
|
|
(2,282 |
) |
|
|
(2,154 |
) |
|
|
(3,117 |
) |
|
|
|
|
|
|
|
|
Total
net sales |
|
$ |
627,182 |
|
|
$ |
601,847 |
|
|
$ |
625,247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating segment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
PCB |
|
|
$ |
69,435 |
|
|
$ |
64,970 |
|
|
$ |
82,256 |
|
|
|
|
|
|
|
|
E-M
Solutions |
|
|
2,689 |
|
|
|
(153 |
) |
|
|
(1,642 |
) |
|
|
|
|
|
|
|
Corporate |
|
|
(21,158 |
) |
|
|
(24,189 |
) |
|
|
(22,132 |
) |
|
|
|
|
|
|
|
|
Total
operating segment income |
|
|
50,966 |
|
|
|
40,628 |
|
|
|
58,482 |
|
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
(5,910 |
) |
|
|
(5,949 |
) |
|
|
(5,912 |
) |
|
|
|
|
|
|
|
|
Total
operating income |
|
|
45,056 |
|
|
|
34,679 |
|
|
|
52,570 |
|
|
|
|
|
|
|
|
Total
other expense |
|
|
(18,747 |
) |
|
|
(16,893 |
) |
|
|
(15,306 |
) |
|
|
|
|
|
|
|
Income before income taxes |
|
$ |
26,309 |
|
|
$ |
17,786 |
|
|
$ |
37,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATIONS1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
First Quarter |
|
First Two Quarters |
|
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
Non-GAAP
gross profit reconciliation2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit |
|
$ |
95,867 |
|
|
$ |
97,645 |
|
|
$ |
105,019 |
|
|
$ |
200,886 |
|
|
$ |
181,208 |
|
|
|
|
Add back
item: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation |
|
|
639 |
|
|
|
429 |
|
|
|
394 |
|
|
|
1,033 |
|
|
|
749 |
|
|
|
|
Non-GAAP gross profit |
|
$ |
96,506 |
|
|
$ |
98,074 |
|
|
$ |
105,413 |
|
|
$ |
201,919 |
|
|
$ |
181,957 |
|
|
|
|
Non-GAAP gross margin |
|
|
15.4 |
% |
|
|
16.3 |
% |
|
|
16.9 |
% |
|
|
16.1 |
% |
|
|
15.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating income reconciliation3: |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
operating income |
|
$ |
45,056 |
|
|
$ |
34,679 |
|
|
$ |
52,570 |
|
|
$ |
97,626 |
|
|
$ |
53,581 |
|
|
|
|
Add back
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
5,910 |
|
|
|
5,949 |
|
|
|
5,912 |
|
|
|
11,822 |
|
|
|
11,896 |
|
|
|
|
|
Stock-based
compensation |
|
|
5,000 |
|
|
|
2,845 |
|
|
|
3,628 |
|
|
|
8,628 |
|
|
|
5,091 |
|
|
|
|
|
Gain on
sale of assets |
|
|
(1,251 |
) |
|
|
(1,472 |
) |
|
|
(1,549 |
) |
|
|
(2,800 |
) |
|
|
(1,472 |
) |
|
|
|
|
Impairments, restructuring, acquisition-related, and other
charges |
|
|
417 |
|
|
|
4,594 |
|
|
|
709 |
|
|
|
1,126 |
|
|
|
10,544 |
|
|
|
|
Non-GAAP operating income |
|
$ |
55,132 |
|
|
$ |
46,595 |
|
|
$ |
61,270 |
|
|
$ |
116,402 |
|
|
$ |
79,640 |
|
|
|
|
Non-GAAP operating margin |
|
|
8.8 |
% |
|
|
7.7 |
% |
|
|
9.8 |
% |
|
|
9.3 |
% |
|
|
6.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income and EPS attributable to stockholders
reconciliation4: |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income (loss) attributable to stockholders |
|
$ |
20,591 |
|
|
$ |
18,548 |
|
|
$ |
32,959 |
|
|
$ |
53,550 |
|
|
$ |
11,284 |
|
|
|
|
Add back
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
5,910 |
|
|
|
5,949 |
|
|
|
5,912 |
|
|
|
11,822 |
|
|
|
11,896 |
|
|
|
|
|
Stock-based
compensation |
|
|
5,000 |
|
|
|
2,845 |
|
|
|
3,628 |
|
|
|
8,628 |
|
|
|
5,091 |
|
|
|
|
|
Non-cash
interest expense |
|
|
2,726 |
|
|
|
5,608 |
|
|
|
2,627 |
|
|
|
5,353 |
|
|
|
11,762 |
|
|
|
|
|
Gain on
sale of assets |
|
|
(1,251 |
) |
|
|
(1,472 |
) |
|
|
(1,549 |
) |
|
|
(2,800 |
) |
|
|
(1,472 |
) |
|
|
|
|
Impairments, restructuring, acquisition-related, and other
charges |
|
|
417 |
|
|
|
4,594 |
|
|
|
709 |
|
|
|
1,126 |
|
|
|
10,544 |
|
|
|
|
|
Income
taxes |
|
|
(119 |
) |
|
|
(7,649 |
) |
|
|
(5,093 |
) |
|
|
(5,212 |
) |
|
|
(6,828 |
) |
|
|
|
Non-GAAP
net income attributable to stockholders |
|
$ |
33,274 |
|
|
$ |
28,423 |
|
|
$ |
39,193 |
|
|
$ |
72,467 |
|
|
$ |
42,277 |
|
|
|
|
Non-GAAP earnings per diluted share attributable to
stockholders |
|
$ |
0.31 |
|
|
$ |
0.28 |
|
|
$ |
0.37 |
|
|
$ |
0.68 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted number of shares5: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
shares |
|
|
133,224 |
|
|
|
126,950 |
|
|
|
130,922 |
|
|
|
132,073 |
|
|
|
126,730 |
|
|
|
|
Dilutive
effect of convertible debt |
|
|
(25,940 |
) |
|
|
(25,940 |
) |
|
|
(25,940 |
) |
|
|
(25,940 |
) |
|
|
(25,940 |
) |
|
|
|
Non-GAAP diluted number of shares |
|
|
107,284 |
|
|
|
101,010 |
|
|
|
104,982 |
|
|
|
106,133 |
|
|
|
100,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA reconciliation6: |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income (loss) |
|
$ |
20,751 |
|
|
$ |
18,765 |
|
|
$ |
33,125 |
|
|
$ |
53,876 |
|
|
$ |
11,615 |
|
|
|
|
Add back
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision (benefit) |
|
|
5,558 |
|
|
|
(979 |
) |
|
|
4,139 |
|
|
|
9,697 |
|
|
|
4,498 |
|
|
|
|
|
Interest
expense |
|
|
12,922 |
|
|
|
20,084 |
|
|
|
13,596 |
|
|
|
26,518 |
|
|
|
41,868 |
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
5,910 |
|
|
|
5,949 |
|
|
|
5,912 |
|
|
|
11,822 |
|
|
|
11,896 |
|
|
|
|
|
Depreciation expense |
|
|
36,146 |
|
|
|
40,457 |
|
|
|
36,077 |
|
|
|
72,223 |
|
|
|
80,684 |
|
|
|
|
|
Stock-based
compensation |
|
|
5,000 |
|
|
|
2,845 |
|
|
|
3,628 |
|
|
|
8,628 |
|
|
|
5,091 |
|
|
|
|
|
Gain on
sale of assets |
|
|
(1,251 |
) |
|
|
(1,472 |
) |
|
|
(1,549 |
) |
|
|
(2,800 |
) |
|
|
(1,472 |
) |
|
|
|
|
Impairments, restructuring, acquisition-related, and other
charges |
|
|
417 |
|
|
|
4,594 |
|
|
|
709 |
|
|
|
1,126 |
|
|
|
10,544 |
|
|
|
|
Adjusted
EBITDA |
|
$ |
85,453 |
|
|
$ |
90,243 |
|
|
$ |
95,637 |
|
|
$ |
181,090 |
|
|
$ |
164,724 |
|
|
|
|
Adjusted
EBITDA margin |
|
|
13.6 |
% |
|
|
15.0 |
% |
|
|
15.3 |
% |
|
|
14.5 |
% |
|
|
13.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
cash flow |
|
|
59,114 |
|
|
|
80,057 |
|
|
|
49,584 |
|
|
|
108,698 |
|
|
|
97,949 |
|
|
|
|
Add back
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment of
acquisition-related costs |
|
|
- |
|
|
|
691 |
|
|
|
153 |
|
|
|
153 |
|
|
|
3,015 |
|
|
|
|
Adjusted
operating cash flow |
|
|
59,114 |
|
|
|
80,748 |
|
|
|
49,737 |
|
|
|
108,851 |
|
|
|
100,964 |
|
|
|
|
Capital
expenditures, net |
|
|
(45,626 |
) |
|
|
(15,329 |
) |
|
|
(23,378 |
) |
|
|
(69,004 |
) |
|
|
(35,445 |
) |
|
|
|
Free cash
flow |
|
$ |
13,488 |
|
|
$ |
65,419 |
|
|
$ |
26,359 |
|
|
$ |
39,847 |
|
|
$ |
65,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
adjustedEBITDA 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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Non-GAAP operating income and operating margin measures
exclude amortization of intangibles, stock-based compensation
expense, gain on sale of assets, 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
bothmeasures -- 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, 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 theCompany'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,
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 ouroperating
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 inaccordance 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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