TTM Technologies, Inc. Reports First Quarter 2001 Cash Earnings of $0.23 Per Share; EBITDA Growth of 53 Percent

Apr 26, 2001, 01:00 ET from TTM Technologies, Inc.

    REDMOND, Wash., April 26 /PRNewswire/  -- TTM Technologies, Inc.
 (Nasdaq:   TTMI), a leading manufacturer of time-critical, technologically
 advanced printed circuit boards, today reported results for the quarter ended
 April 2, 2001.
 
     First-Quarter Results
     The company posted solid revenue growth and profitability in the first
 quarter, despite challenging industry conditions.  Net sales increased
 9 percent to $46.0 million from $42.1 million for the first quarter of 2000.
 This increase resulted entirely from organic growth.  Gross profit increased
 49 percent to $18.3 million, as gross profit margins expanded to 39.8 percent
 in the first quarter of 2001, compared to 29.2 percent for the same period in
 2000.
     Operating income increased 71 percent to $12.6 million for the first
 quarter of 2001, compared to $7.3 million for the first quarter of 2000.
 Operating margins increased from 17.4 percent in the first quarter of 2000 to
 27.3 percent in the first quarter of 2001.  Net income was $7.6 million, or
 $0.19 per diluted share, for the first quarter of 2001, compared to
 $2.1 million, or $0.07 per diluted share, for the same period in 2000.
 Diluted cash earnings per share were $0.23 for the first quarter of 2001,
 compared to $0.10 in the year-ago period.
     EBITDA increased 53 percent to $15.7 million for the first quarter of
 2001, compared to $10.3 million for the same period in 2000.  EBITDA margins
 expanded from 24.5 percent in the first quarter of 2000 to 34.2 percent in the
 first quarter of 2001.
     For the first quarter of 2001, quick-turn business as a percentage of
 total revenues increased to approximately 38 percent, compared to
 approximately 27 percent for the first quarter of 2000.  In addition, the
 percentage of revenues generated by the networking and high-end computing end
 markets expanded from 51 percent in the first quarter of 2000 to 60 percent in
 the first quarter of 2001.
     "We managed operations very effectively during the first quarter, despite
 the widespread slowdown in the electronics industry," said Kent Alder,
 President and CEO of TTM Technologies.  "We maintained strong margins and
 controlled expenses, even as we committed greater resources to sales and
 marketing.  Our strong balance sheet and cash flow give us financial
 flexibility and the ability to invest in our quick-turn capacity and
 technological capabilities.  As a result, we are well positioned to capitalize
 on a recovery in the electronics market."
     "New customer acquisition is the major focus of our quick-turn strategy.
 In the first quarter, the company continued to increase its customer base,
 adding a significant number of new customers," Alder stated.  "We also
 expanded the total number of salespeople -- including sales management, direct
 sales, and sales reps -- from 48 at the end of 2000 to 85 currently, well on
 our way to our established objective of doubling our sales force in 2001."
 
     Return on Invested Capital
     TTM's return on invested capital (ROIC), based on tax-effected EBITA,
 expanded in the first quarter of 2001.  The annualized rate of return for the
 first quarter of 2001 increased to 23 percent from 16 percent for the year-ago
 period.
 
     Outlook
     "Despite the sharp slowdown in the electronics industry, the prototype
 portion of our quick-turn business remains healthy," stated Alder.  "However,
 we have experienced a significant slowdown in our volume segment.
 Consequently, we expect to fall short of our previously issued full year
 guidance of $220 to $224 million in revenues and cash earnings per share of
 $0.85 to $0.90 for 2001.  Given the deteriorating industry environment
 throughout the first quarter and lack of visibility, we expect our second
 quarter revenues will be down 25 to 30 percent from first quarter levels.
 However, we are unable to provide earnings guidance at this time.
 Furthermore, although we are optimistic relative to a rebound in demand in the
 second half of the year, we are uncertain about the exact timing of a market
 recovery."
 
     TTM Technologies, Inc. is a leading supplier of time-critical,
 technologically advanced printed circuit boards to original equipment
 manufacturers and electronic manufacturing services companies.  TTM stands for
 time-to-market, representing how the company's time-critical, one-stop
 manufacturing services enable customers to shorten the time required to
 develop new products and bring them to market.  TTM completed its IPO in
 September 2000 and trades on the Nasdaq National Market System under the
 symbol "TTMI".
 
     Conference Call/Webcast
     The company will conduct a conference call to discuss its first-quarter
 performance and outlook today at 11 a.m. eastern/8 a.m. pacific time.  The
 call will be simulcast, and available for replay until May 10, 2001, on the
 company's website at www.ttmtech.com .
 
     This release contains forward-looking statements that relate to future
 events or performance.  These statements reflect the company's current
 expectations, and the company 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 company
 statements will not be realized.  Furthermore, readers are cautioned that
 these statements involve risks and uncertainties, many of which are beyond the
 company's control, that could cause actual results to differ materially from
 the forward-looking statements.  These risks and uncertainties include, but
 are not limited to, the company's dependence upon the electronics industry,
 the company's dependence upon a small number of customers, and the other
 "Factors That May Affect Future Results" set forth in the company's Form 10-K
 for 2000.
 
 
                              TTM TECHNOLOGIES, INC.
 
                          Selected Financial Information
                       (In thousands, except per share data)
 
                                                           First Quarter
 
                                                       2001              2000
 
         CONSOLIDATED STATEMENTS OF INCOME
 
         Net sales                                  $46,001           $42,080
         Cost of goods sold                          27,705            29,802
 
         Gross profit                                18,296            12,278
 
         Operating expenses:
          Sales and marketing                         2,464             1,879
          General and administrative                  2,076             1,244
          Amortization of intangibles                 1,202             1,202
          Amortization of deferred retention bonus       --               462
          Management fees                                --               150
           Total operating expenses                   5,742             4,937
 
         Operating income                            12,554             7,341
 
         Interest expense                              (864)           (3,811)
         Amortization of debt issuance costs            (10)             (241)
         Interest income and other, net                 158               109
 
         Income before income taxes                  11,838             3,398
         Income tax provision                        (4,276)           (1,275)
 
         Net income                                 $ 7,562           $ 2,123
 
         Earnings per common share:
           Basic                                    $  0.20           $  0.07
           Diluted                                     0.19              0.07
           Cash (diluted)**                            0.23              0.10
 
         Weighted average common shares:
           Basic                                     37,353            29,925
           Diluted                                   38,922            32,029
 
         ** Fully diluted EPS plus amortization of intangibles
 
 
       SELECTED BALANCE SHEET DATA
                                      As of April 2,           As of Dec. 31,
                                          2001                     2000
 
     Cash                               $ 23,724                $  9,294
     Accounts receivable, net             20,932                  33,690
     Inventories                           6,133                   6,893
     Total current assets                 51,216                  50,296
     Net PP&E                             44,681                  44,774
     Other assets                        107,161                 107,063
     Total assets                        203,058                 202,133
 
     Current maturities of long-term
      debt                              $  7,313                $  7,031
     Other current liabilities            16,179                  21,079
     Long-term liabilities                34,312                  36,281
     Shareholders' equity                145,254                 137,742
     Total liabilities and
      shareholders' equity               203,058                 202,133
 
 
     SUPPLEMENTAL DATA
                                                            First Quarter
 
                                                         2001           2000
 
     EBITDA***                                        $15,712        $10,301
     EBITA****                                         13,756          9,155
 
     Gross margin                                        39.8%          29.2%
     EBITDA margin                                       34.2           24.5
     Operating margin                                    27.3           17.4
 
     Return on Invested Capital (tax-effected)           23.4%          16.0%
 
     End Market Breakdown:
                                                            First Quarter
 
                                                         2001           2000
 
     Networking/communications                           39.5%          24.4%
     High-end computing                                  20.2           26.4
     Industrial/Medical                                  25.7           18.5
     Computer peripherals                                 9.4           21.3
     Handheld                                             3.2            4.2
     Other                                                2.0            5.2
 
     ***  EBITDA (earnings before interest, taxes, depreciation and
          amortization) is the sum of operating income, management fees,
          amortization of deferred retention bonus, amortization of
          intangibles and depreciation expense.
 
     **** EBITA (earnings before interest, taxes and amortization) is the sum
          of operating income, management fees amortization of deferred
          retention bonus and amortization of intangibles.
 
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SOURCE TTM Technologies, Inc.
    REDMOND, Wash., April 26 /PRNewswire/  -- TTM Technologies, Inc.
 (Nasdaq:   TTMI), a leading manufacturer of time-critical, technologically
 advanced printed circuit boards, today reported results for the quarter ended
 April 2, 2001.
 
     First-Quarter Results
     The company posted solid revenue growth and profitability in the first
 quarter, despite challenging industry conditions.  Net sales increased
 9 percent to $46.0 million from $42.1 million for the first quarter of 2000.
 This increase resulted entirely from organic growth.  Gross profit increased
 49 percent to $18.3 million, as gross profit margins expanded to 39.8 percent
 in the first quarter of 2001, compared to 29.2 percent for the same period in
 2000.
     Operating income increased 71 percent to $12.6 million for the first
 quarter of 2001, compared to $7.3 million for the first quarter of 2000.
 Operating margins increased from 17.4 percent in the first quarter of 2000 to
 27.3 percent in the first quarter of 2001.  Net income was $7.6 million, or
 $0.19 per diluted share, for the first quarter of 2001, compared to
 $2.1 million, or $0.07 per diluted share, for the same period in 2000.
 Diluted cash earnings per share were $0.23 for the first quarter of 2001,
 compared to $0.10 in the year-ago period.
     EBITDA increased 53 percent to $15.7 million for the first quarter of
 2001, compared to $10.3 million for the same period in 2000.  EBITDA margins
 expanded from 24.5 percent in the first quarter of 2000 to 34.2 percent in the
 first quarter of 2001.
     For the first quarter of 2001, quick-turn business as a percentage of
 total revenues increased to approximately 38 percent, compared to
 approximately 27 percent for the first quarter of 2000.  In addition, the
 percentage of revenues generated by the networking and high-end computing end
 markets expanded from 51 percent in the first quarter of 2000 to 60 percent in
 the first quarter of 2001.
     "We managed operations very effectively during the first quarter, despite
 the widespread slowdown in the electronics industry," said Kent Alder,
 President and CEO of TTM Technologies.  "We maintained strong margins and
 controlled expenses, even as we committed greater resources to sales and
 marketing.  Our strong balance sheet and cash flow give us financial
 flexibility and the ability to invest in our quick-turn capacity and
 technological capabilities.  As a result, we are well positioned to capitalize
 on a recovery in the electronics market."
     "New customer acquisition is the major focus of our quick-turn strategy.
 In the first quarter, the company continued to increase its customer base,
 adding a significant number of new customers," Alder stated.  "We also
 expanded the total number of salespeople -- including sales management, direct
 sales, and sales reps -- from 48 at the end of 2000 to 85 currently, well on
 our way to our established objective of doubling our sales force in 2001."
 
     Return on Invested Capital
     TTM's return on invested capital (ROIC), based on tax-effected EBITA,
 expanded in the first quarter of 2001.  The annualized rate of return for the
 first quarter of 2001 increased to 23 percent from 16 percent for the year-ago
 period.
 
     Outlook
     "Despite the sharp slowdown in the electronics industry, the prototype
 portion of our quick-turn business remains healthy," stated Alder.  "However,
 we have experienced a significant slowdown in our volume segment.
 Consequently, we expect to fall short of our previously issued full year
 guidance of $220 to $224 million in revenues and cash earnings per share of
 $0.85 to $0.90 for 2001.  Given the deteriorating industry environment
 throughout the first quarter and lack of visibility, we expect our second
 quarter revenues will be down 25 to 30 percent from first quarter levels.
 However, we are unable to provide earnings guidance at this time.
 Furthermore, although we are optimistic relative to a rebound in demand in the
 second half of the year, we are uncertain about the exact timing of a market
 recovery."
 
     TTM Technologies, Inc. is a leading supplier of time-critical,
 technologically advanced printed circuit boards to original equipment
 manufacturers and electronic manufacturing services companies.  TTM stands for
 time-to-market, representing how the company's time-critical, one-stop
 manufacturing services enable customers to shorten the time required to
 develop new products and bring them to market.  TTM completed its IPO in
 September 2000 and trades on the Nasdaq National Market System under the
 symbol "TTMI".
 
     Conference Call/Webcast
     The company will conduct a conference call to discuss its first-quarter
 performance and outlook today at 11 a.m. eastern/8 a.m. pacific time.  The
 call will be simulcast, and available for replay until May 10, 2001, on the
 company's website at www.ttmtech.com .
 
     This release contains forward-looking statements that relate to future
 events or performance.  These statements reflect the company's current
 expectations, and the company 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 company
 statements will not be realized.  Furthermore, readers are cautioned that
 these statements involve risks and uncertainties, many of which are beyond the
 company's control, that could cause actual results to differ materially from
 the forward-looking statements.  These risks and uncertainties include, but
 are not limited to, the company's dependence upon the electronics industry,
 the company's dependence upon a small number of customers, and the other
 "Factors That May Affect Future Results" set forth in the company's Form 10-K
 for 2000.
 
 
                              TTM TECHNOLOGIES, INC.
 
                          Selected Financial Information
                       (In thousands, except per share data)
 
                                                           First Quarter
 
                                                       2001              2000
 
         CONSOLIDATED STATEMENTS OF INCOME
 
         Net sales                                  $46,001           $42,080
         Cost of goods sold                          27,705            29,802
 
         Gross profit                                18,296            12,278
 
         Operating expenses:
          Sales and marketing                         2,464             1,879
          General and administrative                  2,076             1,244
          Amortization of intangibles                 1,202             1,202
          Amortization of deferred retention bonus       --               462
          Management fees                                --               150
           Total operating expenses                   5,742             4,937
 
         Operating income                            12,554             7,341
 
         Interest expense                              (864)           (3,811)
         Amortization of debt issuance costs            (10)             (241)
         Interest income and other, net                 158               109
 
         Income before income taxes                  11,838             3,398
         Income tax provision                        (4,276)           (1,275)
 
         Net income                                 $ 7,562           $ 2,123
 
         Earnings per common share:
           Basic                                    $  0.20           $  0.07
           Diluted                                     0.19              0.07
           Cash (diluted)**                            0.23              0.10
 
         Weighted average common shares:
           Basic                                     37,353            29,925
           Diluted                                   38,922            32,029
 
         ** Fully diluted EPS plus amortization of intangibles
 
 
       SELECTED BALANCE SHEET DATA
                                      As of April 2,           As of Dec. 31,
                                          2001                     2000
 
     Cash                               $ 23,724                $  9,294
     Accounts receivable, net             20,932                  33,690
     Inventories                           6,133                   6,893
     Total current assets                 51,216                  50,296
     Net PP&E                             44,681                  44,774
     Other assets                        107,161                 107,063
     Total assets                        203,058                 202,133
 
     Current maturities of long-term
      debt                              $  7,313                $  7,031
     Other current liabilities            16,179                  21,079
     Long-term liabilities                34,312                  36,281
     Shareholders' equity                145,254                 137,742
     Total liabilities and
      shareholders' equity               203,058                 202,133
 
 
     SUPPLEMENTAL DATA
                                                            First Quarter
 
                                                         2001           2000
 
     EBITDA***                                        $15,712        $10,301
     EBITA****                                         13,756          9,155
 
     Gross margin                                        39.8%          29.2%
     EBITDA margin                                       34.2           24.5
     Operating margin                                    27.3           17.4
 
     Return on Invested Capital (tax-effected)           23.4%          16.0%
 
     End Market Breakdown:
                                                            First Quarter
 
                                                         2001           2000
 
     Networking/communications                           39.5%          24.4%
     High-end computing                                  20.2           26.4
     Industrial/Medical                                  25.7           18.5
     Computer peripherals                                 9.4           21.3
     Handheld                                             3.2            4.2
     Other                                                2.0            5.2
 
     ***  EBITDA (earnings before interest, taxes, depreciation and
          amortization) is the sum of operating income, management fees,
          amortization of deferred retention bonus, amortization of
          intangibles and depreciation expense.
 
     **** EBITA (earnings before interest, taxes and amortization) is the sum
          of operating income, management fees amortization of deferred
          retention bonus and amortization of intangibles.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X34742685
 
 SOURCE TTM Technologies, Inc.