TTM Technologies, Inc. (Nasdaq:TTMI), a leading global printed
circuit board (“PCB”) manufacturer, today reported results for the
fourth quarter and fiscal year 2015, which ended December 28,
2015. Our results include the contribution from the
Viasystems Group, Inc. ("Viasystems") acquisition, which was
completed on May 31, 2015.
Fourth Quarter 2015 Highlights
- Net sales were $668.9 million
- GAAP net income attributable to stockholders was $9.5 million,
or $0.09 per diluted share
- Non-GAAP net income attributable to stockholders was $31.5
million, or $0.31 per diluted share
- Adjusted EBITDA was $95.8 million
- Free cash flow was $118.4 million
Fiscal Year 2015 Highlights
- Net sales were $2.1 billion
- GAAP net loss attributable to stockholders was $25.9 million,
or $0.28 per share
- Non-GAAP net income attributable to stockholders was $81.1
million, or $0.87 per diluted share
- Adjusted EBITDA was $285.7 million
- Free cash flow was $182.7 million
Fourth Quarter 2015 Financial Results
Net sales for the fourth quarter of 2015 were $668.9 million
compared to $652.0 million in the third quarter of 2015 and $390.9
million in the fourth quarter of 2014.
GAAP operating income for the fourth quarter of 2015 was $36.5
million compared to operating income of $23.6 million in the third
quarter of 2015 and operating income of $26.6 million in the fourth
quarter of 2014.
GAAP net income attributable to stockholders for the fourth
quarter of 2015 was $9.5 million, or $0.09 per diluted share.
This compares to GAAP net loss attributable to stockholders of $2.2
million, or $0.02 per share, in the third quarter of 2015 and GAAP
net income of $13.9 million, or $0.17 per diluted share, in the
fourth quarter of 2014.
On a non-GAAP basis, net income attributable to stockholders for
the fourth quarter of 2015 was $31.5 million, or $0.31 per diluted
share. This compares to non-GAAP net income of $23.8 million,
or $0.24 per diluted share, for the third quarter of 2015 and $23.2
million, or $0.28 per diluted share, for the fourth quarter of
2014.
Adjusted EBITDA for the fourth quarter of 2015 was $95.8
million, or 14.3 percent of net sales, compared to adjusted EBITDA
of $87.6 million, or 13.4 percent of net sales, for the third
quarter of 2015 and $60.5 million, or 15.5 percent of net sales,
for the fourth quarter of 2014.
“Our solid fourth quarter execution combined with seasonal
growth in the cellular phone end market and robust demand in the
automotive and aerospace and defense end markets drove our
sequential increases in gross margin, operating profit and strong
free cash flow generation,” said Tom Edman, CEO of TTM. “We
are pleased to report non-GAAP earnings above the high end of our
guidance range and revenue in line with expectations. In
addition, we generated $118 million in free cash flow during the
quarter which we will use to repay $70-80 million of principal on
our term loan late in the first quarter.”
Full Year 2015 Financial Results
Net sales for fiscal year 2015 increased to $2.1 billion from
$1.3 billion in fiscal year 2014.
GAAP operating income for fiscal year 2015 was $61.3 million, an
increase from GAAP operating income of $46.5 million in fiscal year
2014.
GAAP net loss attributable to stockholders for fiscal year 2015
was $25.9 million, or $0.28 per share, compared to GAAP net income
of $14.7 million, or $0.18 per diluted share, for fiscal year
2014. The GAAP results were negatively impacted by
approximately $59.4 million of expenses related to the acquisition
and integration of Viasystems.
On a non-GAAP basis, net income attributable to stockholders for
fiscal year 2015 was $81.1 million, or $0.87 per diluted
share. This compares to fiscal year 2014 non-GAAP net income
of $39.3 million, or $0.47 per diluted share.
Adjusted EBITDA for fiscal year 2015 was $285.7 million, or 13.6
percent of net sales, compared to $166.0 million, or 12.5 percent
of net sales, for fiscal year 2014.
“2015 was a transformational year for our company that
culminated in the creation of one of today’s leading global PCB
manufacturers with increased customer and end market
diversity. We delivered on our integration initiatives and
exited the year having achieved 80% of our $55 million annualized
synergy target,” continued Edman.
“We expect our leadership in a diverse set of end markets to
pay-off in the first quarter of 2016 as anticipated strength in
automotive and aerospace and defense markets will help to mitigate
a seasonal downturn in the cellular phone market. We will continue
to build on these strengths as we leverage TTM’s advanced
technology position into the automotive market in particular.”
Business Outlook
For the first quarter of 2016, TTM estimates that revenue will
be in the range of $570 million to $610 million, and non-GAAP net
income will be in the range of $0.05 to $0.11 per diluted
share.
To Access the Live Webcast/Conference Call
TTM will host a conference call and webcast to discuss fourth
quarter and fiscal year 2015 results and first quarter 2016 outlook
on Thursday, February 4, 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 888-438-5535
or international 719-457-2648 (ID 4399593). The conference
call also will be webcast on TTM’s website at www.ttm.com.
To Access a Replay of the Webcast
The replay of the webcast will remain accessible for one week
following the live event on TTM’s website at www.ttm.com.
About TTM
TTM Technologies, Inc. is a leading global printed circuit board
manufacturer, focusing on quick-turn and 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, including, the planned plant
combinations and closure, general market and economic conditions,
including interest rates, currency exchange rates and consumer
spending, demand for TTM's products, market pressures on prices of
TTM's products, warranty claims, changes in product mix,
contemplated significant capital expenditures and related financing
requirements, TTM's dependence upon a small number of customers and
other factors set forth in the "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" sections of the Company's public reports filed with the
SEC.
About Our Non-GAAP Financial Measures
This release includes information about TTM’s adjusted EBITDA,
non-GAAP net income and non-GAAP earnings per share, all of which
are non-GAAP financial measures. TTM presents non-GAAP financial
information to enable investors to see TTM through the eyes of
management and to provide better insight into TTM’s ongoing
financial performance.
A material limitation associated with the use of the above
non-GAAP financial measures is that they have no standardized
measurement prescribed by GAAP and may not be comparable to similar
non-GAAP financial measures used by other companies. TTM
compensates for these limitations by providing full disclosure of
each non-GAAP financial measure and reconciliation to the most
directly comparable GAAP financial measure. However, the
non-GAAP financial measures should not be considered in isolation
from, or as a substitute for, financial information prepared in
accordance with GAAP.
|
|
TTM TECHNOLOGIES, INC. |
|
Selected Unaudited Financial
Information |
|
(In thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|
Third Quarter |
|
Full Year |
|
|
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CONDENSED STATEMENTS OF
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
|
$ |
668,874 |
|
|
$ |
390,912 |
|
|
$ |
652,005 |
|
|
$ |
2,095,488 |
|
|
$ |
1,325,717 |
|
|
|
Cost of
goods sold |
|
|
560,604 |
|
|
|
322,437 |
|
|
|
562,887 |
|
|
|
1,785,351 |
|
|
|
1,131,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
108,270 |
|
|
|
68,475 |
|
|
|
89,118 |
|
|
|
310,137 |
|
|
|
194,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
marketing |
|
|
17,963 |
|
|
|
9,926 |
|
|
|
17,642 |
|
|
|
57,361 |
|
|
|
36,919 |
|
|
|
|
General and
administrative |
|
|
41,654 |
|
|
|
30,046 |
|
|
|
39,456 |
|
|
|
167,109 |
|
|
|
100,944 |
|
|
|
|
Amortization of definite-lived intangibles |
|
|
6,683 |
|
|
|
1,935 |
|
|
|
6,421 |
|
|
|
18,888 |
|
|
|
8,387 |
|
|
|
|
Restructuring charges |
|
|
5,429 |
|
|
|
(7 |
) |
|
|
2,003 |
|
|
|
7,941 |
|
|
|
55 |
|
|
|
|
Impairment
of long-lived assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,845 |
|
|
|
|
Gain on
sale of asset |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,504 |
) |
|
|
- |
|
|
|
|
|
Total
operating expenses |
|
|
71,729 |
|
|
|
41,900 |
|
|
|
65,522 |
|
|
|
248,795 |
|
|
|
148,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) |
|
|
36,541 |
|
|
|
26,575 |
|
|
|
23,596 |
|
|
|
61,342 |
|
|
|
46,539 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(20,208 |
) |
|
|
(5,691 |
) |
|
|
(21,002 |
) |
|
|
(59,753 |
) |
|
|
(23,830 |
) |
|
|
Loss on
extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(802 |
) |
|
|
(506 |
) |
|
|
Other,
net |
|
|
|
3,925 |
|
|
|
1,620 |
|
|
|
3,998 |
|
|
|
8,189 |
|
|
|
88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes |
|
|
20,258 |
|
|
|
22,504 |
|
|
|
6,592 |
|
|
|
8,976 |
|
|
|
22,291 |
|
|
|
Income tax
(provision) benefit |
|
|
(10,601 |
) |
|
|
(8,566 |
) |
|
|
(8,730 |
) |
|
|
(34,594 |
) |
|
|
(7,598 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
9,657 |
|
|
$ |
13,938 |
|
|
$ |
(2,138 |
) |
|
$ |
(25,618 |
) |
|
$ |
14,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest |
|
|
(136 |
) |
|
|
- |
|
|
|
(99 |
) |
|
|
(264 |
) |
|
|
- |
|
|
|
Net income
(loss) attributable to stockholders |
|
$ |
9,521 |
|
|
$ |
13,938 |
|
|
$ |
(2,237 |
) |
|
$ |
(25,882 |
) |
|
$ |
14,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per share attributable to stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
0.10 |
|
|
$ |
0.17 |
|
|
$ |
(0.02 |
) |
|
$ |
(0.28 |
) |
|
$ |
0.18 |
|
|
|
|
Diluted |
|
|
$ |
0.09 |
|
|
$ |
0.17 |
|
|
$ |
(0.02 |
) |
|
$ |
(0.28 |
) |
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computing per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
99,134 |
|
|
|
83,345 |
|
|
|
99,128 |
|
|
|
92,675 |
|
|
|
83,238 |
|
|
|
|
Diluted |
|
|
|
126,329 |
|
|
|
84,205 |
|
|
|
99,128 |
|
|
|
92,675 |
|
|
|
83,941 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of the numerator and denominator used to calculate
basic earnings per share and diluted earnings per share for the
quarter ended Q4 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to stockholders |
|
$ |
9,521 |
|
|
|
|
|
|
|
|
|
|
|
|
Add back
items: interest expense, net of tax |
|
|
2,009 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted
net income attributable to stockholders |
|
$ |
11,530 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding |
|
|
99,134 |
|
|
|
|
|
|
|
|
|
|
|
Dilutive
effect of convertible debt |
|
|
25,940 |
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of performance-based stock units, restricted
stock units and stock options |
|
|
1,255 |
|
|
|
|
|
|
|
|
|
|
|
Diluted
shares |
|
|
126,329 |
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share attributable to stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
$ |
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 28, 2015 |
|
December 29, 2014 |
|
|
|
|
|
|
|
|
Cash and
cash equivalents, including restricted cash |
|
$ |
262,630 |
|
|
$ |
279,042 |
|
|
|
|
|
|
|
|
|
Accounts
and notes receivable, net |
|
|
454,001 |
|
|
|
307,933 |
|
|
|
|
|
|
|
|
|
Inventories |
|
|
|
268,923 |
|
|
|
145,187 |
|
|
|
|
|
|
|
|
|
Total
current assets |
|
|
1,022,520 |
|
|
|
798,123 |
|
|
|
|
|
|
|
|
|
Property,
plant and equipment, net |
|
|
1,103,067 |
|
|
|
754,718 |
|
|
|
|
|
|
|
|
|
Other
non-current assets |
|
|
545,717 |
|
|
|
48,448 |
|
|
|
|
|
|
|
|
|
Total
assets |
|
|
2,671,304 |
|
|
|
1,601,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
debt, including current portion of long-term debt |
|
$ |
157,375 |
|
|
$ |
128,045 |
|
|
|
|
|
|
|
|
|
Accounts
payable |
|
|
347,916 |
|
|
|
217,326 |
|
|
|
|
|
|
|
|
|
Total
current liabilities |
|
|
744,994 |
|
|
|
496,012 |
|
|
|
|
|
|
|
|
|
Debt, net
of discount |
|
|
1,044,582 |
|
|
|
374,642 |
|
|
|
|
|
|
|
|
|
Total
long-term liabilities |
|
|
1,099,641 |
|
|
|
389,813 |
|
|
|
|
|
|
|
|
|
Total
equity |
|
|
826,669 |
|
|
|
715,464 |
|
|
|
|
|
|
|
|
|
Total
liabilities and equity |
|
|
2,671,304 |
|
|
|
1,601,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|
Third Quarter |
|
Full Year |
|
|
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
Gross
margin |
|
|
16.2 |
% |
|
|
17.5 |
% |
|
|
13.7 |
% |
|
|
14.8 |
% |
|
|
14.7 |
% |
|
|
Operating
margin |
|
|
5.5 |
% |
|
|
6.8 |
% |
|
|
3.6 |
% |
|
|
2.9 |
% |
|
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End Market
Breakdown: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|
Third Quarter |
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace/Defense |
|
|
13 |
% |
|
|
14 |
% |
|
|
14 |
% |
|
|
|
|
|
|
|
Automotive |
|
|
18 |
% |
|
|
3 |
% |
|
|
17 |
% |
|
|
|
|
|
|
|
Cellular
Phone |
|
|
18 |
% |
|
|
35 |
% |
|
|
16 |
% |
|
|
|
|
|
|
|
Computing/Storage/Peripherals |
|
|
12 |
% |
|
|
10 |
% |
|
|
12 |
% |
|
|
|
|
|
|
|
Medical/Industrial/Instrumentation |
|
|
13 |
% |
|
|
8 |
% |
|
|
14 |
% |
|
|
|
|
|
|
|
Networking/Communications |
|
|
23 |
% |
|
|
27 |
% |
|
|
25 |
% |
|
|
|
|
|
|
|
Other |
|
|
|
3 |
% |
|
|
3 |
% |
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
Compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|
Third Quarter |
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
Amount
included in: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
$ |
327 |
|
|
$ |
197 |
|
|
$ |
322 |
|
|
|
|
|
|
|
|
|
Selling and
marketing |
|
|
301 |
|
|
|
263 |
|
|
|
294 |
|
|
|
|
|
|
|
|
|
General and
administrative |
|
|
2,007 |
|
|
|
1,287 |
|
|
|
2,056 |
|
|
|
|
|
|
|
|
|
Total
stock-based compensation expense |
|
$ |
2,635 |
|
|
$ |
1,747 |
|
|
$ |
2,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Segment Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|
Third Quarter |
|
|
|
|
|
|
|
Net
sales: |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
PCB |
|
|
$ |
611,045 |
|
|
$ |
372,465 |
|
|
$ |
604,771 |
|
|
|
|
|
|
|
|
E-M
Solutions |
|
|
61,021 |
|
|
|
19,073 |
|
|
|
49,658 |
|
|
|
|
|
|
|
|
Corporate |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Total
sales |
|
|
672,066 |
|
|
|
391,538 |
|
|
|
654,429 |
|
|
|
|
|
|
|
|
Inter-segment sales |
|
|
(3,192 |
) |
|
|
(626 |
) |
|
|
(2,424 |
) |
|
|
|
|
|
|
|
|
Total
net sales |
|
$ |
668,874 |
|
|
$ |
390,912 |
|
|
$ |
652,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating segment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
PCB |
|
|
$ |
66,320 |
|
|
$ |
37,236 |
|
|
$ |
52,191 |
|
|
|
|
|
|
|
|
E-M
Solutions |
|
|
2,612 |
|
|
|
744 |
|
|
|
(1,729 |
) |
|
|
|
|
|
|
|
Corporate |
|
|
(25,708 |
) |
|
|
(9,470 |
) |
|
|
(20,445 |
) |
|
|
|
|
|
|
|
|
Total
operating segment income |
|
|
43,224 |
|
|
|
28,510 |
|
|
|
30,017 |
|
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
(6,683 |
) |
|
|
(1,935 |
) |
|
|
(6,421 |
) |
|
|
|
|
|
|
|
|
Total
operating income |
|
|
36,541 |
|
|
|
26,575 |
|
|
|
23,596 |
|
|
|
|
|
|
|
|
Total
other expense |
|
|
(16,283 |
) |
|
|
(4,071 |
) |
|
|
(17,004 |
) |
|
|
|
|
|
|
|
Income before income taxes |
|
$ |
20,258 |
|
|
$ |
22,504 |
|
|
$ |
6,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATIONS1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|
Third Quarter |
|
Full Year |
|
|
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
Non-GAAP
gross profit reconciliation2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit |
|
$ |
108,270 |
|
|
$ |
68,475 |
|
|
$ |
89,118 |
|
|
$ |
310,137 |
|
|
$ |
194,689 |
|
|
|
|
Add back
item: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory
markup and PP&E step up |
|
|
598 |
|
|
|
- |
|
|
|
8,214 |
|
|
|
16,220 |
|
|
|
- |
|
|
|
|
|
Stock-based
compensation |
|
|
327 |
|
|
|
197 |
|
|
|
322 |
|
|
|
1,117 |
|
|
|
866 |
|
|
|
|
Non-GAAP gross profit |
|
$ |
109,195 |
|
|
$ |
68,672 |
|
|
$ |
97,654 |
|
|
$ |
327,474 |
|
|
$ |
195,555 |
|
|
|
|
Non-GAAP gross margin |
|
|
16.3 |
% |
|
|
17.6 |
% |
|
|
15.0 |
% |
|
|
15.6 |
% |
|
|
14.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating income reconciliation3: |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
operating income (loss) |
|
$ |
36,541 |
|
|
$ |
26,575 |
|
|
$ |
23,596 |
|
|
$ |
61,342 |
|
|
$ |
46,539 |
|
|
|
|
Add back
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
6,683 |
|
|
|
1,935 |
|
|
|
6,421 |
|
|
|
18,888 |
|
|
|
8,387 |
|
|
|
|
|
Stock-based
compensation |
|
|
2,635 |
|
|
|
1,747 |
|
|
|
2,672 |
|
|
|
9,661 |
|
|
|
7,800 |
|
|
|
|
|
Gain on
sale of asset |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,504 |
) |
|
|
- |
|
|
|
|
|
Acquisition-related costs |
|
|
1,521 |
|
|
|
4,349 |
|
|
|
2,065 |
|
|
|
34,448 |
|
|
|
5,981 |
|
|
|
|
|
Inventory
markup and PP&E step up |
|
|
598 |
|
|
|
- |
|
|
|
8,214 |
|
|
|
16,220 |
|
|
|
- |
|
|
|
|
|
Impairments
and restructuring charges |
|
|
5,429 |
|
|
|
(7 |
) |
|
|
2,003 |
|
|
|
7,941 |
|
|
|
1,900 |
|
|
|
|
Non-GAAP operating income |
|
$ |
53,407 |
|
|
$ |
34,599 |
|
|
$ |
44,971 |
|
|
$ |
145,996 |
|
|
$ |
70,607 |
|
|
|
|
Non-GAAP operating margin |
|
|
8.0 |
% |
|
|
8.9 |
% |
|
|
6.9 |
% |
|
|
7.0 |
% |
|
|
5.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income and EPS attributable to stockholders
reconciliation4: |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income (loss) attributable to stockholders |
|
$ |
9,521 |
|
|
$ |
13,938 |
|
|
$ |
(2,237 |
) |
|
$ |
(25,882 |
) |
|
$ |
14,693 |
|
|
|
|
Add back
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
6,683 |
|
|
|
1,935 |
|
|
|
6,421 |
|
|
|
18,888 |
|
|
|
8,387 |
|
|
|
|
|
Stock-based
compensation |
|
|
2,635 |
|
|
|
1,747 |
|
|
|
2,672 |
|
|
|
9,661 |
|
|
|
7,800 |
|
|
|
|
|
Non-cash
interest expense |
|
|
4,893 |
|
|
|
2,585 |
|
|
|
4,819 |
|
|
|
15,626 |
|
|
|
10,165 |
|
|
|
|
|
Gain on
sale of asset |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,504 |
) |
|
|
- |
|
|
|
|
|
Acquisition-related costs |
|
|
1,521 |
|
|
|
4,349 |
|
|
|
2,065 |
|
|
|
34,448 |
|
|
|
5,981 |
|
|
|
|
|
Inventory
markup and PP&E step up |
|
|
598 |
|
|
|
- |
|
|
|
8,214 |
|
|
|
16,220 |
|
|
|
- |
|
|
|
|
|
Impairments, restructuring and other charges |
|
|
5,429 |
|
|
|
(7 |
) |
|
|
2,003 |
|
|
|
8,743 |
|
|
|
2,406 |
|
|
|
|
|
Income
taxes |
|
|
247 |
|
|
|
(1,332 |
) |
|
|
(122 |
) |
|
|
5,869 |
|
|
|
(10,121 |
) |
|
|
|
Non-GAAP
net income attributable to stockholders |
|
$ |
31,527 |
|
|
$ |
23,215 |
|
|
$ |
23,835 |
|
|
$ |
81,069 |
|
|
$ |
39,311 |
|
|
|
|
Non-GAAP earnings per diluted share attributable to
stockholders |
|
$ |
0.31 |
|
|
$ |
0.28 |
|
|
$ |
0.24 |
|
|
$ |
0.87 |
|
|
$ |
0.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted number of shares5: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
shares |
|
|
126,329 |
|
|
|
84,205 |
|
|
|
100,035 |
|
|
|
93,640 |
|
|
|
83,941 |
|
|
|
|
Dilutive
effect of convertible debt |
|
|
(25,940 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
Non-GAAP diluted number of shares |
|
|
100,389 |
|
|
|
84,205 |
|
|
|
100,035 |
|
|
|
93,640 |
|
|
|
83,941 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA reconciliation6: |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income (loss) |
|
$ |
9,657 |
|
|
$ |
13,938 |
|
|
$ |
(2,138 |
) |
|
$ |
(25,618 |
) |
|
$ |
14,693 |
|
|
|
|
Add back
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision (benefit) |
|
|
10,601 |
|
|
|
8,566 |
|
|
|
8,730 |
|
|
|
34,594 |
|
|
|
7,598 |
|
|
|
|
|
Interest
expense |
|
|
20,208 |
|
|
|
5,691 |
|
|
|
21,002 |
|
|
|
59,753 |
|
|
|
23,830 |
|
|
|
|
|
Amortization of definite-lived intangibles |
|
|
6,683 |
|
|
|
1,935 |
|
|
|
6,421 |
|
|
|
18,888 |
|
|
|
8,387 |
|
|
|
|
|
Depreciation expense |
|
|
39,105 |
|
|
|
24,318 |
|
|
|
40,091 |
|
|
|
133,508 |
|
|
|
95,349 |
|
|
|
|
|
Stock-based
compensation |
|
|
2,635 |
|
|
|
1,747 |
|
|
|
2,672 |
|
|
|
9,661 |
|
|
|
7,800 |
|
|
|
|
|
Gain on
sale of asset |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,504 |
) |
|
|
- |
|
|
|
|
|
Acquisition-related costs |
|
|
1,521 |
|
|
|
4,349 |
|
|
|
2,065 |
|
|
|
34,448 |
|
|
|
5,981 |
|
|
|
|
|
Inventory
markup |
|
|
- |
|
|
|
- |
|
|
|
6,792 |
|
|
|
14,200 |
|
|
|
- |
|
|
|
|
|
Impairments, restructuring and other charges |
|
|
5,429 |
|
|
|
(7 |
) |
|
|
2,003 |
|
|
|
8,743 |
|
|
|
2,406 |
|
|
|
|
Adjusted
EBITDA |
|
$ |
95,839 |
|
|
$ |
60,537 |
|
|
$ |
87,638 |
|
|
$ |
285,673 |
|
|
$ |
166,044 |
|
|
|
|
Adjusted
EBITDA margin |
|
|
14.3 |
% |
|
|
15.5 |
% |
|
|
13.4 |
% |
|
|
13.6 |
% |
|
|
12.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
cash flow |
|
|
139,829 |
|
|
|
52,407 |
|
|
|
14,735 |
|
|
|
237,462 |
|
|
|
129,810 |
|
|
|
|
Add back
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment of
accreted interest on convertible sr. notes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,730 |
|
|
|
1,324 |
|
|
|
|
|
Payment of
acquisition-related costs |
|
|
1,522 |
|
|
|
2,123 |
|
|
|
6,610 |
|
|
|
36,210 |
|
|
|
2,123 |
|
|
|
|
Adjusted
operating cash flow |
|
|
141,351 |
|
|
|
54,530 |
|
|
|
21,345 |
|
|
|
282,402 |
|
|
|
133,257 |
|
|
|
|
Capital
expenditures, net |
|
|
(22,967 |
) |
|
|
(26,262 |
) |
|
|
(30,345 |
) |
|
|
(99,718 |
) |
|
|
(108,571 |
) |
|
|
|
Free cash
flow |
|
$ |
118,384 |
|
|
$ |
28,268 |
|
|
$ |
(9,000 |
) |
|
$ |
182,684 |
|
|
$ |
24,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, inventory markup and PP&E
step up. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
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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. |
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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. |
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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. |
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Contact:
Todd Schull, CFO
714-327-3000
TTM Technologies (NASDAQ:TTMI)
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From Feb 2024 to Mar 2024
TTM Technologies (NASDAQ:TTMI)
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From Mar 2023 to Mar 2024