COSTA MESA, Calif., Feb. 04, 2016 (GLOBE NEWSWIRE) -- 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.
	4 This information provides non-GAAP net income attributable to stockholders and non-GAAP EPS attributable to stockholders, which are non-GAAP financial measures. Management believes that both measures -- which add back amortization of intangibles, stock-based compensation expense, non-cash interest expense on debt (before consideration of capitalized interest), gain on sale of assets, inventory markup, acquisition-related costs, asset impairments, restructuring and other charges as well as the associated tax impact of these charges and discrete tax items -- provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations.
	5 Non-GAAP diluted number of shares used in computing non-GAAP earnings per share attributable to stockholders excludes the dilutive effect of convertible debt.
	6 Adjusted EBITDA is defined as earnings before interest expense, income taxes, depreciation, amortization of intangibles, stock-based compensation expense, gain on sale of assets, inventory markup, acquisition-related costs, asset impairments, restructuring and other charges. We present adjusted EBITDA to enhance the understanding of our operating results, and it is a key measure we use to evaluate our operations.  In addition, we provide our adjusted EBITDA because we believe that investors and securities analysts will find adjusted EBITDA to be a useful measure for evaluating our operating performance and comparing our operating performance with that of similar companies that have different capital structures and for evaluating our ability to meet our future debt service, capital expenditures, and working capital requirements.  However, adjusted EBITDA should not be considered as an alternative to cash flows from operating activities as a measure of liquidity or as an alternative to net income as a measure of operating results in accordance with accounting principles generally accepted in the United States of America.

Contact:
Todd Schull, CFO
714-327-3000