TTM Technologies, Inc. Reports Third Quarter 2024 Results
SANTA ANA, Calif., Oct. 30, 2024 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (NASDAQ:TTMI) ("TTM"), a leading global manufacturer of technology solutions including mission systems, radio frequency ("RF") components and RF microwave/microelectronic assemblies and printed circuit boards ("PCB"s) today reported results for the third quarter 2024, which ended on September 30, 2024.
Third Quarter 2024 Highlights
Net sales were $616.5 million
GAAP net income of $14.3 million, or $0.14 per diluted share
Non-GAAP net income was $42.7 million, or $0.41 per diluted share, inclusive of a $17.8 million pre-tax, non-operational, foreign exchange loss
Cash flow from operations was $65.1 million, or 10.6% of sales
Book to bill of 1.20 for the third quarter
A&D program backlog a record $1.49 billion
Third Quarter 2024 GAAP Financial Results
Net sales for the third quarter of 2024 were $616.5 million, compared to $572.6 million in the third quarter of 2023.
GAAP operating income for the third quarter of 2024 was $51.0 million compared to GAAP operating loss for the third quarter of 2023 of $10.2 million, inclusive of a $44.1 million goodwill impairment charge related to the RF&S Components segment.
GAAP net income for the third quarter of 2024 was $14.3 million, or $0.14 per diluted share, compared to GAAP net loss for the third quarter of 2023 of $37.1 million, or ($0.36) per diluted share. GAAP net income for the third quarter of 2024 included a $17.8 million pre-tax foreign exchange loss, compared to a $0.9 million pre-tax foreign exchange gain in the third quarter of 2023.
Third Quarter 2024 Non-GAAP Financial Results
On a non-GAAP basis, net income for the third quarter of 2024 was $42.7 million, or $0.41 per diluted share. This compares to non-GAAP net income of $44.9 million, or $0.43 per diluted share, for the third quarter of 2023. Non-GAAP net income for the third quarter of 2024 included a $17.8 million pre-tax foreign exchange loss, compared to a $0.9 million pre-tax foreign exchange gain in the third quarter of 2023.
Adjusted EBITDA in the third quarter of 2024 was $84.4 million, or 13.7% of sales compared to adjusted EBITDA of $84.1 million, or 14.7% of sales for the third quarter of 2023. Adjusted EBITDA for the third quarter of 2024 included a $17.8 million foreign exchange loss, compared to a $0.9 million foreign exchange gain in the third quarter of 2023.
"TTM delivered strong operating margin performance due to higher revenues, favorable mix, and outstanding operational execution. Revenues reflected the third consecutive quarter of year on year growth due to demand strength in our Aerospace and Defense and Data Center Computing end markets, the latter being driven by generative AI," said Tom Edman, CEO of TTM. "In addition, cash flow from operations was a healthy 10.6% of revenues enabling the company to maintain a solid balance sheet with a net leverage ratio of 1.4x," concluded Mr. Edman.
Business Outlook
For the fourth quarter of 2024, TTM estimates that revenues will be in the range of $610 million to $650 million, and non-GAAP net income will be in the range of $0.44 to $0.50 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 third quarter 2024 results and the fourth quarter 2024 outlook on Wednesday, October 30, 2024, at 4:30 p.m. Eastern Time (1:30 p.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. third 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. third 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. third quarter 2024 webcast.
About TTMTTM Technologies, Inc. is a leading global manufacturer of technology solutions, including mission systems, radio frequency ("RF") components, RF microwave/microelectronic assemblies, and quick-turn and technologically advanced printed circuit boards ("PCB"s). 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
TTM TECHNOLOGIES, INC.
Selected Unaudited Financial Information
(In thousands, except per share data)
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Third Quarter
First Three Quarters
2024
2023
2024
2023
Net sales
$
616,538
$
572,582
$
1,791,788
$
1,663,528
Cost of goods sold
486,650
459,312
1,440,954
1,365,628
Gross profit
129,888
113,270
350,834
297,900
Operating expenses:
Selling and marketing
19,961
18,763
60,053
58,245
General and administrative
42,567
38,916
124,841
111,829
Research and development
8,054
6,173
23,922
19,682
Amortization of definite-lived intangibles
6,951
11,429
28,636
37,245
Impairment of goodwill
-
44,100
-
44,100
Restructuring charges
1,393
4,091
6,367
19,061
Total operating expenses
78,926
123,472
243,819
290,162
Operating income (loss)
50,962
(10,202
)
107,015
7,738
Interest expense
(11,768
)
(10,101
)
(36,311
)
(34,751
)
Loss on extinguishment of debt
-
-
-
(1,154
)
Gain on sale of subsidiary
-
-
-
1,270
Other, net
(14,177
)
3,044
(1,086
)
9,310
Income (loss) before income taxes
25,017
(17,259
)
69,618
(17,587
)
Income tax provision
(10,706
)
(19,807
)
(18,489
)
(18,469
)
Net income (loss)
$
14,311
$
(37,066
)
$
51,129
$
(36,056
)
Earnings (loss) per share:
Basic
$
0.14
$
(0.36
)
$
0.50
$
(0.35
)
Diluted
0.14
(0.36
)
0.49
(0.35
)
Weighted-average shares used in computing per share amounts:
Basic
101,958
103,510
101,704
102,873
Diluted
103,828
103,510
103,928
102,873
Reconciliation of the denominator used to calculate basic earnings per share and diluted earnings per share:
Weighted-average shares outstanding
101,958
103,510
101,704
102,873
Dilutive effect of performance-based stock units, restricted stock units and stock options
1,870
-
2,224
-
Diluted shares
103,828
103,510
103,928
102,873
