TTM Technologies, Inc. Reports Fiscal Second Quarter 2021 Results
July 28 2021 - 4:05PM
TTM Technologies, Inc. (NASDAQ:TTMI), a leading global printed
circuit board (“PCB”) and radio frequency (“RF”) components and
assemblies manufacturer, today reported results for the second
quarter of fiscal 2021, which ended on June 28, 2021.
Second Quarter 2021 Highlights
- Net sales were $567.4 million
- GAAP net income of $28.3 million, or $0.26 per diluted
share
- Non-GAAP net income was $40.0 million, or $0.36 per diluted
share
- Cash flow from operations was $56.9 million, or 10% of
revenues
Second Quarter 2021 Financial Results Net sales
for the second quarter of 2021 were $567.4 million, compared to
$570.3 million from continuing operations in the second quarter of
2020.
GAAP operating income for the second quarter of 2021 was $40.9
million. This compares to GAAP operating income of $23.0 million
from continuing operations in the second quarter of 2020.
GAAP net income for the second quarter of 2021 was $28.3
million, or $0.26 per diluted share, compared to net income of $9.3
million, or $0.09 per diluted share from continuing operations in
the second quarter of 2020.
On a non-GAAP basis, net income for the second quarter of 2021
was $40.0 million, or $0.36 per diluted share. This compares to
non-GAAP net income of $33.0 million, or $0.31 per diluted share
from continuing operations in the second quarter of 2020.
Adjusted EBITDA in the second quarter of 2021 was $75.6 million,
or 13.3 percent of net sales, compared to adjusted EBITDA of $76.8
million, or 13.5 percent of net sales, from continuing operations,
in the second quarter of 2020.
“In the second quarter, TTM delivered revenue and non-GAAP
earnings above the high end of the previously guided range despite
significant challenges from COVID-19 and tight supply conditions
for certain raw materials. The solid performance was driven by
better than expected sales in our commercial end markets led by
strong year on year growth from the automotive and data center
computing end markets,” said Tom Edman, CEO of TTM. “Additionally,
strict financial discipline drove strong and consistent operating
cash flow in the quarter. These achievements reflect the strategic
changes made to strengthen TTM, particularly the divestiture of the
volatile mobility business which historically caused weak seasonal
results in the first half of the year.”
Business Outlook The stronger than expected
revenues in Q2 pulled forward some demand from Q3 and the tight raw
material supply conditions will have a greater impact in our third
quarter. As a result, TTM estimates that revenue for the third
quarter of 2021 will be in the range of $530 million to $570
million, and non-GAAP net income will be in the range of $0.31 to
$0.37 per diluted share.
Live Webcast/Conference CallTTM will host a
conference call and webcast to discuss second quarter 2021 results
and the third quarter 2021 outlook on Wednesday, July 28th, 2021 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 800-367-2403
or international 334-777-6978 (ID 3384553). 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 and
backplane assemblies 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 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 and raw materials used in 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.
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 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) |
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
First Two Quarters |
|
|
|
|
|
|
2021 |
|
2020* |
|
2021 |
|
2020* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CONDENSED STATEMENTS OF
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
567,383 |
|
|
$ |
570,298 |
|
|
$ |
1,093,815 |
|
|
$ |
1,067,944 |
|
|
|
Cost of goods sold |
|
467,473 |
|
|
|
469,868 |
|
|
|
912,305 |
|
|
|
886,172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
99,910 |
|
|
|
100,430 |
|
|
|
181,510 |
|
|
|
181,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Selling and marketing |
|
14,605 |
|
|
|
15,969 |
|
|
|
30,887 |
|
|
|
32,138 |
|
|
|
|
General and administrative |
|
30,634 |
|
|
|
33,309 |
|
|
|
58,929 |
|
|
|
67,648 |
|
|
|
|
Research and development |
|
4,182 |
|
|
|
5,181 |
|
|
|
8,652 |
|
|
|
9,943 |
|
|
|
|
Amortization of definite-lived intangibles |
|
9,042 |
|
|
|
9,561 |
|
|
|
18,563 |
|
|
|
19,123 |
|
|
|
|
Restructuring charges |
|
559 |
|
|
|
13,414 |
|
|
|
3,791 |
|
|
|
13,742 |
|
|
|
|
|
Total operating expenses |
|
59,022 |
|
|
|
77,434 |
|
|
|
120,822 |
|
|
|
142,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
40,888 |
|
|
|
22,996 |
|
|
|
60,688 |
|
|
|
39,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(11,079 |
) |
|
|
(18,572 |
) |
|
|
(22,468 |
) |
|
|
(38,353 |
) |
|
|
Loss on extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
(15,217 |
) |
|
|
- |
|
|
|
Other, net |
|
|
306 |
|
|
|
455 |
|
|
|
2,813 |
|
|
|
2,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes |
|
30,115 |
|
|
|
4,879 |
|
|
|
25,816 |
|
|
|
3,782 |
|
|
|
Income tax (provision) benefit |
|
(1,854 |
) |
|
|
4,467 |
|
|
|
(747 |
) |
|
|
2,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
28,261 |
|
|
|
9,346 |
|
|
|
25,069 |
|
|
|
6,126 |
|
|
|
Income from discontinued operations, net of income taxes |
|
- |
|
|
|
172,421 |
|
|
|
- |
|
|
|
174,467 |
|
|
|
Net income |
$ |
28,261 |
|
|
$ |
181,767 |
|
|
$ |
25,069 |
|
|
$ |
180,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share from continuing operations |
$ |
0.26 |
|
|
$ |
0.09 |
|
|
$ |
0.23 |
|
|
$ |
0.06 |
|
|
|
|
Basic earnings per share from discontinued operations |
|
- |
|
|
|
1.62 |
|
|
|
- |
|
|
|
1.64 |
|
|
|
|
|
Basic earnings per share |
$ |
0.26 |
|
|
$ |
1.71 |
|
|
$ |
0.23 |
|
|
$ |
1.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations |
$ |
0.26 |
|
|
$ |
0.09 |
|
|
$ |
0.23 |
|
|
$ |
0.06 |
|
|
|
|
Diluted earnings per share from discontinued operations |
|
- |
|
|
|
1.60 |
|
|
|
- |
|
|
|
1.62 |
|
|
|
|
|
Diluted earnings per share |
$ |
0.26 |
|
|
$ |
1.69 |
|
|
$ |
0.23 |
|
|
$ |
1.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Prior period amounts
have been revised to correct an immaterial error to income from
discontinued operations, net of income taxes, net income, basic
earnings per share from discontinued operations, basic earnings per
share, diluted earnings per share from discontinued operations and
diluted earnings per share. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computing per share amounts: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
107,148 |
|
|
|
106,295 |
|
|
|
106,987 |
|
|
|
105,990 |
|
|
|
|
Diluted |
|
109,795 |
|
|
|
107,485 |
|
|
|
109,250 |
|
|
|
107,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of the denominator used to calculate basic earnings
per share and diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding |
|
107,148 |
|
|
|
106,295 |
|
|
|
106,987 |
|
|
|
105,990 |
|
|
|
Dilutive effect of warrants |
|
802 |
|
|
|
- |
|
|
|
401 |
|
|
|
- |
|
|
|
Dilutive effect of performance-based stock units, restricted stock
units & stock options |
|
1,845 |
|
|
|
1,190 |
|
|
|
1,862 |
|
|
|
1,441 |
|
|
|
Diluted shares |
|
109,795 |
|
|
|
107,485 |
|
|
|
109,250 |
|
|
|
107,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
June 28, 2021 |
|
December 28, 2020 |
|
|
|
|
|
Cash and cash equivalents, including restricted cash |
$ |
558,291 |
|
|
$ |
451,565 |
|
|
|
|
|
|
|
Accounts and notes receivable, net |
|
378,762 |
|
|
|
381,105 |
|
|
|
|
|
|
|
Contract assets |
|
300,697 |
|
|
|
273,256 |
|
|
|
|
|
|
|
Inventories |
|
126,355 |
|
|
|
115,651 |
|
|
|
|
|
|
|
Total current assets |
|
1,404,515 |
|
|
|
1,248,758 |
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
650,764 |
|
|
|
650,435 |
|
|
|
|
|
|
|
Operating lease right of use asset |
|
20,134 |
|
|
|
24,340 |
|
|
|
|
|
|
|
Other non-current assets |
|
950,323 |
|
|
|
972,411 |
|
|
|
|
|
|
|
Total assets |
|
3,025,736 |
|
|
|
2,895,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
$ |
364,005 |
|
|
$ |
327,102 |
|
|
|
|
|
|
|
Total current liabilities |
|
554,750 |
|
|
|
518,046 |
|
|
|
|
|
|
|
Debt, net of discount |
|
926,523 |
|
|
|
842,853 |
|
|
|
|
|
|
|
Total long-term liabilities |
|
1,000,615 |
|
|
|
933,889 |
|
|
|
|
|
|
|
Total equity |
|
1,470,371 |
|
|
|
1,444,009 |
|
|
|
|
|
|
|
Total liabilities and equity |
|
3,025,736 |
|
|
|
2,895,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
First Two Quarters |
|
|
|
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
Gross margin |
|
17.6 |
% |
|
|
17.6 |
% |
|
|
16.6 |
% |
|
|
17.0 |
% |
|
|
Operating margin |
|
7.2 |
% |
|
|
4.0 |
% |
|
|
5.5 |
% |
|
|
3.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End Market Breakdown, excludes Mobility: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace/Defense |
|
33 |
% |
|
|
33 |
% |
|
|
|
|
|
|
|
Automotive |
|
18 |
% |
|
|
12 |
% |
|
|
|
|
|
|
|
Data Center Computing |
|
14 |
% |
|
|
13 |
% |
|
|
|
|
|
|
|
Medical/Industrial/Instrumentation |
|
19 |
% |
|
|
21 |
% |
|
|
|
|
|
|
|
Networking/Communications |
|
15 |
% |
|
|
20 |
% |
|
|
|
|
|
|
|
Other |
|
|
1 |
% |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based Compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
Amount included in: |
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
$ |
861 |
|
|
$ |
620 |
|
|
|
|
|
|
|
|
|
Selling and marketing |
|
442 |
|
|
|
291 |
|
|
|
|
|
|
|
|
|
General and administrative |
|
2,015 |
|
|
|
1,690 |
|
|
|
|
|
|
|
|
|
Research and development |
|
32 |
|
|
|
46 |
|
|
|
|
|
|
|
|
|
Total stock-based compensation expense |
$ |
3,350 |
|
|
$ |
2,647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Segment Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
|
|
|
|
|
|
Net sales: |
2021 |
|
2020 |
|
|
|
|
|
|
|
PCB |
|
$ |
553,480 |
|
|
$ |
536,843 |
|
|
|
|
|
|
|
|
RF&S Components |
|
13,903 |
|
|
|
12,091 |
|
|
|
|
|
|
|
|
Other1 |
|
- |
|
|
|
21,364 |
|
|
|
|
|
|
|
|
|
Total net sales |
$ |
567,383 |
|
|
$ |
570,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating segment income: |
|
|
|
|
|
|
|
|
|
|
PCB |
|
$ |
73,055 |
|
|
$ |
77,714 |
|
|
|
|
|
|
|
|
RF&S Components |
|
4,730 |
|
|
|
4,310 |
|
|
|
|
|
|
|
|
Corporate & Other1 |
|
(26,472 |
) |
|
|
(48,083 |
) |
|
|
|
|
|
|
|
|
Total operating segment income |
|
51,313 |
|
|
|
33,941 |
|
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
(10,425 |
) |
|
|
(10,945 |
) |
|
|
|
|
|
|
|
|
Total operating income |
|
40,888 |
|
|
|
22,996 |
|
|
|
|
|
|
|
|
Total other expense |
|
(10,773 |
) |
|
|
(18,117 |
) |
|
|
|
|
|
|
|
Income from continuing operations before income taxes |
$ |
30,115 |
|
|
$ |
4,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATIONS2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
First Two Quarters |
|
|
|
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
Non-GAAP gross profit reconciliation3: |
|
|
|
|
|
|
|
|
|
|
GAAP gross profit from continuing operations |
$ |
99,910 |
|
|
$ |
100,430 |
|
|
$ |
181,510 |
|
|
$ |
181,772 |
|
|
|
|
Add back item: |
|
|
|
|
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
1,383 |
|
|
|
1,384 |
|
|
|
2,767 |
|
|
|
2,767 |
|
|
|
|
|
Accelerated depreciation |
|
- |
|
|
|
2,397 |
|
|
|
- |
|
|
|
2,397 |
|
|
|
|
|
Stock-based compensation |
|
861 |
|
|
|
620 |
|
|
|
2,026 |
|
|
|
1,470 |
|
|
|
|
|
Unrealized gain on commodity hedge |
|
(99 |
) |
|
|
- |
|
|
|
(99 |
) |
|
|
- |
|
|
|
|
|
Restructuring and other charges |
|
- |
|
|
|
- |
|
|
|
254 |
|
|
|
- |
|
|
|
|
Non-GAAP gross profit |
$ |
102,055 |
|
|
$ |
104,831 |
|
|
$ |
186,458 |
|
|
$ |
188,406 |
|
|
|
|
Non-GAAP gross margin |
|
18.0 |
% |
|
|
18.4 |
% |
|
|
17.0 |
% |
|
|
17.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income reconciliation4: |
|
|
|
|
|
|
|
|
|
|
GAAP operating income from continuing operations |
$ |
40,888 |
|
|
$ |
22,996 |
|
|
$ |
60,688 |
|
|
$ |
39,178 |
|
|
|
|
Add back items: |
|
|
|
|
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
10,425 |
|
|
|
10,945 |
|
|
|
21,330 |
|
|
|
21,890 |
|
|
|
|
|
Accelerated depreciation |
|
- |
|
|
|
2,754 |
|
|
|
- |
|
|
|
2,754 |
|
|
|
|
|
Stock-based compensation |
|
3,350 |
|
|
|
2,647 |
|
|
|
7,559 |
|
|
|
7,482 |
|
|
|
|
|
(Gain) on sale of assets |
|
(11 |
) |
|
|
- |
|
|
|
(421 |
) |
|
|
- |
|
|
|
|
|
Unrealized gain on commodity hedge |
|
(99 |
) |
|
|
- |
|
|
|
(99 |
) |
|
|
- |
|
|
|
|
|
Restructuring, acquisition-related, and other charges |
|
566 |
|
|
|
14,273 |
|
|
|
3,851 |
|
|
|
15,869 |
|
|
|
|
Non-GAAP operating income |
$ |
55,119 |
|
|
$ |
53,615 |
|
|
$ |
92,908 |
|
|
$ |
87,173 |
|
|
|
|
Non-GAAP operating margin |
|
9.7 |
% |
|
|
9.4 |
% |
|
|
8.5 |
% |
|
|
8.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income and EPS reconciliation5: |
|
|
|
|
|
|
|
|
|
|
GAAP net income from continuing operations |
$ |
28,261 |
|
|
$ |
9,346 |
|
|
$ |
25,069 |
|
|
$ |
6,126 |
|
|
|
|
Add back items: |
|
|
|
|
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
10,425 |
|
|
|
10,945 |
|
|
|
21,330 |
|
|
|
21,890 |
|
|
|
|
|
Accelerated depreciation |
|
- |
|
|
|
2,754 |
|
|
|
- |
|
|
|
2,754 |
|
|
|
|
|
Stock-based compensation |
|
3,350 |
|
|
|
2,647 |
|
|
|
7,559 |
|
|
|
7,482 |
|
|
|
|
|
Non-cash interest expense |
|
536 |
|
|
|
3,604 |
|
|
|
1,073 |
|
|
|
7,157 |
|
|
|
|
|
(Gain) on sale of assets |
|
(11 |
) |
|
|
(274 |
) |
|
|
(991 |
) |
|
|
(507 |
) |
|
|
|
|
Change in fair value of warrant liabilities |
|
(1,027 |
) |
|
|
- |
|
|
|
(1,199 |
) |
|
|
- |
|
|
|
|
|
Loss on extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
15,217 |
|
|
|
- |
|
|
|
|
|
Unrealized gain on commodity hedge |
|
(99 |
) |
|
|
- |
|
|
|
(99 |
) |
|
|
- |
|
|
|
|
|
Restructuring, acquisition-related, and other charges |
|
566 |
|
|
|
14,273 |
|
|
|
3,851 |
|
|
|
15,869 |
|
|
|
|
|
Income taxes6 |
|
(1,958 |
) |
|
|
(10,292 |
) |
|
|
(6,509 |
) |
|
|
(11,107 |
) |
|
|
|
Non-GAAP net income |
$ |
40,043 |
|
|
$ |
33,003 |
|
|
$ |
65,301 |
|
|
$ |
49,664 |
|
|
|
|
Non-GAAP earnings per diluted share |
$ |
0.36 |
|
|
$ |
0.31 |
|
|
$ |
0.60 |
|
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA reconciliation7: |
|
|
|
|
|
|
|
|
|
|
GAAP net income from continuing operations |
$ |
28,261 |
|
|
$ |
9,346 |
|
|
$ |
25,069 |
|
|
$ |
6,126 |
|
|
|
|
Add back items: |
|
|
|
|
|
|
|
|
|
|
|
Income tax provision (benefit) |
|
1,854 |
|
|
|
(4,467 |
) |
|
|
747 |
|
|
|
(2,344 |
) |
|
|
|
|
Interest expense |
|
11,079 |
|
|
|
18,572 |
|
|
|
22,468 |
|
|
|
38,353 |
|
|
|
|
|
Amortization of definite-lived intangibles |
|
10,425 |
|
|
|
10,945 |
|
|
|
21,330 |
|
|
|
21,890 |
|
|
|
|
|
Depreciation expense |
|
21,241 |
|
|
|
25,756 |
|
|
|
42,717 |
|
|
|
50,128 |
|
|
|
|
|
Stock-based compensation |
|
3,350 |
|
|
|
2,647 |
|
|
|
7,559 |
|
|
|
7,482 |
|
|
|
|
|
(Gain) on sale of assets |
|
(11 |
) |
|
|
(274 |
) |
|
|
(991 |
) |
|
|
(507 |
) |
|
|
|
|
Change in fair value of warrant liabilities |
|
(1,027 |
) |
|
|
- |
|
|
|
(1,199 |
) |
|
|
- |
|
|
|
|
|
Loss on extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
15,217 |
|
|
|
- |
|
|
|
|
|
Unrealized gain on commodity hedge |
|
(99 |
) |
|
|
- |
|
|
|
(99 |
) |
|
|
- |
|
|
|
|
|
Restructuring, acquisition-related, and other charges |
|
566 |
|
|
|
14,273 |
|
|
|
3,851 |
|
|
|
15,869 |
|
|
|
|
Adjusted EBITDA |
$ |
75,639 |
|
|
$ |
76,798 |
|
|
$ |
136,669 |
|
|
$ |
136,997 |
|
|
|
|
Adjusted EBITDA margin |
|
13.3 |
% |
|
|
13.5 |
% |
|
|
12.5 |
% |
|
|
12.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow reconciliation8: |
|
|
|
|
|
|
|
|
|
|
Operating cash flow |
$ |
56,909 |
|
|
$ |
100,820 |
|
|
$ |
98,054 |
|
|
$ |
107,447 |
|
|
|
|
Capital expenditures, net |
|
(22,727 |
) |
|
|
(21,339 |
) |
|
|
(43,693 |
) |
|
|
(45,271 |
) |
|
|
|
Free cash flow |
$ |
34,182 |
|
|
$ |
79,481 |
|
|
$ |
54,361 |
|
|
$ |
62,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Other represents the
SH E-MS and SZ results. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2This 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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Non-GAAP gross
profit and gross margin measures exclude amortization of
intangibles, accelerated depreciation, stock-based compensation
expense, unrealized gain on commodity hedge, restructuring and
other charges. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 Non-GAAP operating
income and operating margin measures exclude amortization of
intangibles, accelerated depreciation, stock-based compensation
expense, gain on sale of assets, unrealized gain on commodity
hedge, restructuring, acquisition-related costs, and other
charges. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 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,
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, unrealized gain on commodity hedge,
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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 Income tax
adjustments reflect the difference between income taxes based on a
non-GAAP tax rate and a forecasted annual GAAP tax rate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7Adjusted EBITDA is
defined as earnings before interest expense, income taxes,
depreciation, amortization of intangibles, stock-based compensation
expense, gain on sale of assets, change in fair value of warrant
liabilities, loss on extinguishment of debt, unrealized gain on
commodity hedge, 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. |
|
|
|
|
|
8 Free Cash Flow in
2020 has been restated to exclude the Mobility business which was
sold in Q2 of 2020. |
|
Contact:Sameer Desai,Vice
President, Corporate Development & Investor
RelationsSameer.desai@ttmtech.com714-327-3050
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