TTM Technologies, Inc. Reports Fiscal Second Quarter 2020 Results


Reading time ( words)

TTM Technologies, Inc, a leading global printed circuit board and radio frequency components manufacturer, reported results for the second quarter of fiscal 2020, which ended on June 29, 2020. 

On April 19th, TTM completed the previously announced sale of its Mobility business unit.  The operating results and related assets and liabilities of the Mobility business under US GAAP are presented as discontinued operations for all periods. To facilitate the comparison of TTM’s results to previously issued guidance, non-GAAP financial information is also provided below which includes approximately three weeks of results for the Mobility business unit as well as results from the previously announced closure of the two E-MS plants.  Please refer to the earnings schedule for additional details on exited businesses and continuing operations.

Second Quarter 2020 Highlights

  • GAAP net sales were $570.3 million
  • Non-GAAP net sales were $601.1 million
  • GAAP net income of $192.8 million, or $1.79 per diluted share, inclusive of a net gain on the sale of the Mobility business unit of $183.1 million or $1.70 per diluted share
  • Non-GAAP net income was $33.3 million, or $0.31 per diluted share, inclusive of $0.01 of foreign exchange loss
  • Cash flow from operations of $119.0 million
  • Today repaid $400 million of Term Loan B from cash received from Mobility Business Unit divestiture

Second Quarter 2020 GAAP Financial Results
Net sales from continuing operations for the second quarter of 2020 were $570.3 million, compared to $526.9 million in the second quarter of 2019 and $497.6 million in the first quarter of 2020.

GAAP operating income from continuing operations for the second quarter of 2020 was $23.0 million, compared to $29.0 million in the second quarter of 2019 and $16.2 million in the first quarter of 2020. 

GAAP net income for the second quarter of 2020 was $192.8 million, or $1.79 per diluted share and includes an estimated net gain of $183.1 million from the sale of the Mobility business.  This compares to net income of $3.4 million, or $0.03 per diluted share in the second quarter of 2019, and net loss of $1.2 million, or ($0.01) per diluted share, in the first quarter of 2020.    

Second Quarter 2020 Non-GAAP Financial Results
Net sales for the second quarter of 2020 were $601.1 million, compared to $633.0 million in the second quarter of 2019 and $610.8 million in the first quarter of 2020.
                                                                                                                                            
On a non-GAAP basis, net income for the second quarter of 2020 was $33.3 million, or $0.31 per diluted share. This compares to non-GAAP net income of $21.3 million, or $0.20 per diluted share, for the second quarter of 2019 and $19.6 million, or $0.18 per diluted share, in the first quarter of 2020.

Adjusted EBITDA for the second quarter of 2020 was $80.3 million, or 13.4 percent of net sales, compared to adjusted EBITDA of $82.9 million, or 13.1 percent of net sales, for the second quarter of 2019 and $82.1 million, or 13.4 percent of net sales, for the first quarter of 2020.

“In the second quarter, TTM demonstrated excellent operational execution and overcame COVID-19 related challenges to deliver revenue and earnings above the previously guided range.  All of our manufacturing facilities continue to remain operational and I want to recognize all of our employees for their tremendous efforts in support of our customers during these challenging times,” said Tom Edman, CEO of TTM.  “The diversified mix of end markets that we serve enabled TTM to grow revenues and outperform earnings expectations despite weakness in the automotive and commercial aerospace end markets.  Finally, TTM has shown financial discipline, bringing our net debt to EBITDA ratio to 2.1, following the receipt of proceeds from the sale of the Mobility Business Unit and subsequent repayment of our Term loan.”

Business Outlook
Looking ahead, we believe that we will continue to experience COVID-19 related impacts on our end markets as well as inefficiencies with our own production.  Taking this into consideration, TTM estimates that revenue for the third quarter of 2020 will be in the range of $470 million to $510 million, and non-GAAP net income will be in the range of $0.16 to $0.22 per diluted share. This guidance no longer includes the Mobility Business Unit but continues to include the E-MS business unit while that business winds down.  

Share




Suggested Items

Review: Institute of Circuit Technology 2022 Annual Symposium

06/15/2022 | Pete Starkey, I-Connect007
The British Motor Museum in Warwickshire, housing the world's largest collection of historic British cars, was venue for the 2022 Annual Symposium of the Institute of Circuit Technology on June 8, which attracted a substantial gathering of manufacturers and suppliers from the UK printed circuit industry. ICT chair Emma Hudson reflected upon lessons learned during the pandemic lock-down and how the industry has successfully adapted to circumstances. She commented that the UK’s PCB fabricators are extremely busy, as she introduced an outstanding conference programme including a keynote from the incomparable Happy Holden.

I-Connect007 Editor’s Choice: Five Must-Reads for the Week

06/03/2022 | Andy Shaughnessy, Design007 Magazine
Things are heating up in the world of PCB design and manufacturing as well. In the past week, we published quite a bit of news—some good, some not so good. Some of the news is mixed, as we see with the EMS industry shipments rising YOY in April, but falling from the previous month. It’s nice to see NASA investing in American small businesses, but they didn’t really have a choice, did they?

PCB Technologies’ InPack to Focus on Miniaturization, Packaging

05/16/2022 | Andy Shaughnessy, Design007 Magazine
I recently spoke with PCB Technologies’ Jeff De Serrano, Yaniv Maydar, and Alon Menache about their new venture, InPack. They explain their plans to focus on advanced packaging, miniaturization, and other high-end technology, with much faster time to market, and they offer a view of the global market as well.



Copyright © 2022 I-Connect007. All rights reserved.