TTM Technologies, Inc. (NASDAQ: TTMI), a leading global
manufacturer of technology solutions including mission systems,
radio frequency (“RF”) components and RF microwave/microelectronic
assemblies, quick-turn and technologically advanced printed circuit
boards (“PCB”), today reported results for the first quarter 2024,
which ended on April 1, 2024.
First Quarter 2024 Highlights
- Net sales were $570.1 million
- GAAP net income of $10.5 million, or $0.10 per diluted
share
- Non-GAAP net income was $32.8 million, or $0.31 per diluted
share
- Cash flow from operations was $43.9 million
- Repurchased 600,000 shares of common stock for $9.3 million at
an average price of $15.56 per share
First Quarter 2024 GAAP Financial Results
Net sales for the first quarter of 2024 were $570.1 million,
compared to $544.4 million in the first quarter of 2023.
GAAP operating income for the first quarter of 2024 was $17.1
million compared to GAAP operating loss for the first quarter of
2023 of $3.5 million.
GAAP net income for the first quarter of 2024 was $10.5 million,
or $0.10 per diluted share, compared to GAAP net loss of $5.8
million, or ($0.06) per diluted share in the first quarter of
2023.
First Quarter 2024 Non-GAAP Financial
Results
On a non-GAAP basis, net income for the first quarter of 2024
was $32.8 million, or $0.31 per diluted share. This compares to
non-GAAP net income of $18.6 million, or $0.18 per diluted share,
for the first quarter of 2023.
Adjusted EBITDA in the first quarter of 2024 was $74.8 million,
or 13.1% of sales compared to adjusted EBITDA of $58.5 million, or
10.7% of sales for the first quarter of 2023.
“TTM reported Non-GAAP EPS that was above the high end of the
guided range and demonstrated solid year on year growth due to
improved mix and operational execution. Revenues were at the high
end of the guided range and returned to year on year growth due to
demand strength in our Aerospace and Defense and Data Center
Computing end markets,” said Tom Edman, CEO of TTM. “In addition,
cash flow from operations was a healthy 7.7% of revenue enabling us
to repurchase stock while maintaining a solid balance sheet with a
net leverage ratio of 1.5x,” concluded Mr. Edman.
Business Outlook
For the second quarter of 2024, TTM estimates that revenues will
be in the range of $560 million to $600 million, and non-GAAP net
income will be in the range of $0.32 to $0.38 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 CallTTM will host a
conference call and webcast to discuss first quarter 2024 results
and the second quarter 2024 outlook on Wednesday, May 1, 2024, 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. first quarter 2024 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 will also be simulcast on the
company’s website, and can be accessed by clicking on the link TTM
Technologies, Inc. first quarter 2024 webcast.. The webcast will
remain accessible for one week following the live event.
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 TTM Technologies, Inc. first quarter 2024
webcast.
About TTMTTM 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, 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 MeasuresTo
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.
Contact:Sameer Desai,Vice President, Corporate
Development & Investor
RelationsSameer.desai@ttmtech.com714-327-3050
|
TTM
TECHNOLOGIES, INC. |
Selected
Unaudited Financial Information |
(In
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter |
|
|
|
|
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
CONSOLIDATED CONDENSED STATEMENTS OF
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
570,113 |
|
|
$ |
544,437 |
|
|
Cost of goods sold |
|
|
466,394 |
|
|
|
458,314 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
103,719 |
|
|
|
86,123 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
Selling and marketing |
|
|
20,294 |
|
|
|
21,302 |
|
|
|
General and administrative |
|
|
43,670 |
|
|
|
35,073 |
|
|
|
Research and development |
|
|
7,321 |
|
|
|
7,085 |
|
|
|
Amortization of definite-lived intangibles |
|
|
11,429 |
|
|
|
21,964 |
|
|
|
Restructuring charges |
|
|
3,938 |
|
|
|
4,167 |
|
|
|
|
Total operating expenses |
|
|
86,652 |
|
|
|
89,591 |
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
17,067 |
|
|
|
(3,468 |
) |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(12,324 |
) |
|
|
(12,807 |
) |
|
Gain on sale of subsidiary |
|
|
- |
|
|
|
1,339 |
|
|
Other, net |
|
|
9,326 |
|
|
|
1,198 |
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
|
14,069 |
|
|
|
(13,738 |
) |
|
Income tax (provision) benefit |
|
|
(3,603 |
) |
|
|
7,924 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
10,466 |
|
|
$ |
(5,814 |
) |
|
|
|
|
|
|
|
|
|
Earnings (loss) per share: |
|
|
|
|
|
|
Basic |
|
$ |
0.10 |
|
|
$ |
(0.06 |
) |
|
|
Diluted |
|
|
0.10 |
|
|
|
(0.06 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computing per share amounts: |
|
|
|
|
|
|
Basic |
|
|
101,952 |
|
|
|
102,381 |
|
|
|
Diluted |
|
|
104,098 |
|
|
|
102,381 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of the denominator used to calculate basic earnings
per share and diluted earnings per share: |
|
|
|
Weighted-average shares outstanding |
|
|
101,952 |
|
|
|
102,381 |
|
|
Dilutive effect of performance-based stock units, restricted stock
units and stock options |
|
|
2,146 |
|
|
|
- |
|
|
Diluted shares |
|
|
104,098 |
|
|
|
102,381 |
|
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET DATA |
|
First Quarter |
|
|
2024 |
|
2023 |
|
|
|
|
|
|
|
April 1, 2024 |
|
January 1, 2024 |
Cash and cash equivalents, including restricted cash |
|
$ |
440,388 |
|
$ |
450,208 |
Accounts and notes receivable, net |
|
|
367,537 |
|
|
413,557 |
Receivable from sale of SH E-MS property |
|
|
- |
|
|
6,737 |
Contract assets |
|
|
320,514 |
|
|
292,050 |
Inventories |
|
|
220,515 |
|
|
213,075 |
Total current assets |
|
|
1,406,114 |
|
|
1,429,687 |
Property, plant and equipment, net |
|
|
825,834 |
|
|
807,667 |
Operating lease right of use asset |
|
|
83,847 |
|
|
86,286 |
Other non-current assets |
|
|
983,015 |
|
|
1,000,023 |
Total assets |
|
|
3,298,810 |
|
|
3,323,663 |
|
|
|
|
|
Short-term debt, including current portion of long-term debt |
|
$ |
2,625 |
|
$ |
3,500 |
Accounts payable |
|
|
348,913 |
|
|
334,609 |
Total current liabilities |
|
|
671,207 |
|
|
703,984 |
Debt, net of discount |
|
|
913,888 |
|
|
914,336 |
Total long-term liabilities |
|
|
1,106,495 |
|
|
1,108,640 |
Total equity |
|
|
1,521,108 |
|
|
1,511,039 |
Total liabilities and equity |
|
|
3,298,810 |
|
|
3,323,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DATA |
|
First Quarter |
|
|
|
|
|
2024 |
|
2023 |
|
Gross margin |
|
|
18.2 |
% |
|
|
15.8 |
% |
|
Operating margin |
|
|
3.0 |
% |
|
|
(0.6 |
)% |
|
|
|
|
|
|
|
|
|
End Market Breakdown: |
|
|
|
|
|
|
|
|
|
First Quarter |
|
|
|
|
|
2024 |
|
2023 |
|
|
Aerospace and Defense |
|
|
46 |
% |
|
|
43 |
% |
|
|
Automotive |
|
|
13 |
% |
|
|
17 |
% |
|
|
Data Center Computing |
|
|
21 |
% |
|
|
10 |
% |
|
|
Medical/Industrial/Instrumentation |
|
|
14 |
% |
|
|
19 |
% |
|
|
Networking |
|
|
6 |
% |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
Stock-based Compensation: |
|
|
|
|
|
|
|
|
|
First Quarter |
|
|
Amount included in: |
|
2024 |
|
2023 |
|
|
|
Cost of goods sold |
|
$ |
2,029 |
|
|
$ |
1,662 |
|
|
|
|
Selling and marketing |
|
|
868 |
|
|
|
741 |
|
|
|
|
General and administrative |
|
|
3,595 |
|
|
|
2,562 |
|
|
|
|
Research and development |
|
|
295 |
|
|
|
275 |
|
|
|
|
Total stock-based compensation expense |
|
$ |
6,787 |
|
|
$ |
5,240 |
|
|
|
|
|
|
|
|
|
|
Operating Segment Data: |
|
|
|
|
|
|
|
|
|
First Quarter |
|
|
Net sales: |
|
2024 |
|
2023 |
|
|
PCB |
|
$ |
561,841 |
|
|
$ |
534,111 |
|
|
|
RF&S Components |
|
|
8,272 |
|
|
|
10,326 |
|
|
|
|
Total net sales |
|
$ |
570,113 |
|
|
$ |
544,437 |
|
|
|
|
|
|
|
|
|
|
|
Operating segment income: |
|
|
|
|
|
|
PCB |
|
$ |
69,652 |
|
|
$ |
51,634 |
|
|
|
RF&S Components |
|
|
1,662 |
|
|
|
2,168 |
|
|
|
Corporate & Other |
|
|
(40,482 |
) |
|
|
(29,498 |
) |
|
|
|
Total operating segment income |
|
|
30,832 |
|
|
|
24,304 |
|
|
|
Amortization of definite-lived intangibles |
|
|
(13,765 |
) |
|
|
(27,772 |
) |
|
|
|
Total
operating income (loss) |
|
|
17,067 |
|
|
|
(3,468 |
) |
|
|
|
Total other expense |
|
|
(2,998 |
) |
|
|
(10,270 |
) |
|
|
Income (loss) before income taxes |
|
$ |
14,069 |
|
|
$ |
(13,738 |
) |
|
|
|
|
|
|
|
|
RECONCILIATIONS1 |
|
|
|
|
|
|
|
|
|
First Quarter |
|
|
|
|
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
Non-GAAP gross profit reconciliation2: |
|
|
|
|
|
|
GAAP gross profit |
|
$ |
103,719 |
|
|
$ |
86,123 |
|
|
|
Add back item: |
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
2,336 |
|
|
|
5,808 |
|
|
|
|
Stock-based compensation |
|
|
2,029 |
|
|
|
1,662 |
|
|
|
|
Unrealized gain on commodity hedge |
|
|
(752 |
) |
|
|
(2,128 |
) |
|
|
|
Purchase accounting related inventory markup |
|
|
- |
|
|
|
163 |
|
|
|
|
Other charges |
|
|
(162 |
) |
|
|
1,233 |
|
|
|
Non-GAAP gross profit |
|
$ |
107,170 |
|
|
$ |
92,861 |
|
|
|
Non-GAAP gross margin |
|
|
18.8 |
% |
|
|
17.1 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP operating income reconciliation3: |
|
|
|
|
|
|
GAAP operating income (loss) |
|
$ |
17,067 |
|
|
$ |
(3,468 |
) |
|
|
Add back items: |
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
13,765 |
|
|
|
27,772 |
|
|
|
|
Stock-based compensation |
|
|
6,787 |
|
|
|
5,240 |
|
|
|
|
Gain on sale of assets |
|
|
- |
|
|
|
(173 |
) |
|
|
|
Unrealized gain on commodity hedge |
|
|
(752 |
) |
|
|
(2,128 |
) |
|
|
|
Purchase accounting related inventory markup |
|
|
- |
|
|
|
163 |
|
|
|
|
Restructuring, acquisition-related and other charges |
|
|
3,826 |
|
|
|
5,944 |
|
|
|
Non-GAAP operating income |
|
$ |
40,693 |
|
|
$ |
33,350 |
|
|
|
Non-GAAP operating margin |
|
|
7.1 |
% |
|
|
6.1 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP net income and EPS reconciliation4: |
|
|
|
|
|
|
GAAP net income (loss) |
|
$ |
10,466 |
|
|
$ |
(5,814 |
) |
|
|
Add back items: |
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
13,765 |
|
|
|
27,772 |
|
|
|
|
Stock-based compensation |
|
|
6,787 |
|
|
|
5,240 |
|
|
|
|
Non-cash interest expense |
|
|
518 |
|
|
|
727 |
|
|
|
|
Gain on sale of assets |
|
|
- |
|
|
|
(173 |
) |
|
|
|
Gain on sale of subsidiary |
|
|
- |
|
|
|
(1,339 |
) |
|
|
|
Unrealized gain on commodity hedge |
|
|
(752 |
) |
|
|
(2,128 |
) |
|
|
|
Purchase accounting related inventory markup |
|
|
- |
|
|
|
163 |
|
|
|
|
Restructuring, acquisition-related and other charges |
|
|
3,738 |
|
|
|
5,944 |
|
|
|
|
Income taxes5 |
|
|
(1,735 |
) |
|
|
(11,744 |
) |
|
|
Non-GAAP net income |
|
$ |
32,787 |
|
|
$ |
18,648 |
|
|
|
Non-GAAP earnings per diluted share |
|
$ |
0.31 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted number of shares: |
|
|
|
|
|
|
GAAP diluted number of shares |
|
|
104,098 |
|
|
|
102,381 |
|
|
|
Dilutive effect of performance-based stock units, restricted stock
units and stock options |
|
|
- |
|
|
|
1,949 |
|
|
|
Non-GAAP diluted number of shares |
|
|
104,098 |
|
|
|
104,330 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA reconciliation6: |
|
|
|
|
|
|
GAAP net income (loss) |
|
$ |
10,466 |
|
|
$ |
(5,814 |
) |
|
|
Add back items: |
|
|
|
|
|
|
|
Income tax provision (benefit) |
|
|
3,603 |
|
|
|
(7,924 |
) |
|
|
|
Interest expense |
|
|
12,324 |
|
|
|
12,807 |
|
|
|
|
Amortization of definite-lived intangibles |
|
|
13,765 |
|
|
|
27,772 |
|
|
|
|
Depreciation expense |
|
|
24,696 |
|
|
|
25,253 |
|
|
|
|
Stock-based compensation |
|
|
6,787 |
|
|
|
5,240 |
|
|
|
|
Gain on sale of assets |
|
|
- |
|
|
|
(173 |
) |
|
|
|
Gain on sale of subsidiary |
|
|
- |
|
|
|
(1,339 |
) |
|
|
|
Unrealized gain on commodity hedge |
|
|
(752 |
) |
|
|
(2,128 |
) |
|
|
|
Purchase accounting related inventory markup |
|
|
- |
|
|
|
163 |
|
|
|
|
Restructuring, acquisition-related and other charges |
|
|
3,900 |
|
|
|
4,668 |
|
|
|
Adjusted EBITDA |
|
$ |
74,789 |
|
|
$ |
58,525 |
|
|
|
Adjusted EBITDA margin |
|
|
13.1 |
% |
|
|
10.7 |
% |
|
|
|
|
|
|
|
|
|
Free cash flow reconciliation: |
|
|
|
|
|
|
Operating cash flow |
|
$ |
43,895 |
|
|
$ |
55,078 |
|
|
|
Capital expenditures, net |
|
|
(49,296 |
) |
|
|
(30,707 |
) |
|
|
Free cash flow |
|
$ |
(5,401 |
) |
|
$ |
24,371 |
|
1 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. |
|
2 Non-GAAP
gross profit and gross margin measures exclude amortization of
intangibles, stock-based compensation expense, unrealized gain on
commodity hedge, purchase accounting related inventory markup, and
other charges. |
|
3 Non-GAAP
operating income and operating margin measures exclude amortization
of intangibles, stock-based compensation expense, gain on sale of
assets, unrealized gain on commodity hedge, purchase accounting
related inventory markup, restructuring, acquisition-related costs,
and other charges. |
|
4 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, stock-based
compensation expense, non-cash interest expense on debt (before
consideration of capitalized interest), gain on sale of assets,
gain on sale of subsidiary, unrealized 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. |
|
5 Income tax
adjustments reflect the difference between income taxes based on a
non-GAAP tax rate and a forecasted annual GAAP tax rate. |
|
6 Adjusted
EBITDA is defined as earnings before income taxes, interest
expense, amortization of intangibles, depreciation, stock-based
compensation expense, gain on sale of assets, gain on sale of
subsidiary, unrealized 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. |
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