TTM Technologies, Inc.
Q1'24 Earnings Results
Presentation
May 1, 2024
Disclaimers
Forward-Looking Statements
This communication may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to the future business outlook, events, and expected performance of TTM Technologies, Inc. ("TTM", "we" or the "Company"). The words "anticipate," "believe," "plan," "forecast," "foresee," "estimate," "project," "expect," "seek," "target," "intend," "goal" and other similar expressions, among others, generally identify "forward-looking statements," which speak only as of the date the statements were made and are not guarantees of performance. Actual results may differ materially from these forward-looking statements. Such statements relate to a variety of matters, including but not limited to the operations of TTM's businesses. These statements reflect the current beliefs, expectations and assumptions of the management of TTM, and we believe such statements to have a reasonable basis.
It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations and financial condition of the Company. These forward-looking statements are based on assumptions that may not materialize, and involve certain risks and uncertainties, many of which are beyond our control, that could cause actual events or performance to differ materially from those indicated in such forward-looking statements. Factors, risks, trends, and uncertainties that could cause actual results to differ materially from those projected, anticipated, or implied in forward-looking statements include, but are not limited to potential changes in domestic or global economic conditions, demand for our products, market pressures on prices of our products, warranty claims, changes in product mix, contemplated significant capital expenditures and related financing requirements, our dependence upon a small number of customers, and other factors set forth in the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q and in the Company's other filings filed with the Securities and Exchange Commission (the "SEC"), including under the heading "Risk Factors", and which are available at the SEC's website at www.sec.gov.
TTM does not undertake any obligation to update any of these statements to reflect any new information, subsequent events or circumstances, or otherwise, except as may be required by law, even if experience or future changes make it clear that any projected results expressed in this communication or future communications to stockholders, press releases or Company statements will not be realized. In addition, the inclusion of any statement in this communication does not constitute an admission by us that the events or circumstances described in such statement are material.
Use of Non-GAAP Financial Measures
In addition to the financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), TTM uses certain non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Non-GAAP Operating Income, Non-GAAP Net Income, Non-GAAP Operating Margin, Non-GAAP Gross Margin , Non-GAAP EPS and Adjusted Operating Cash Flow. We present non-GAAP financial information to enable investors to see TTM through the eyes of management and to provide better insight into our 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. We compensate 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.
See Appendix for reconciliations of Adjusted EBITDA and Non-GAAP Operating Income to the most comparable GAAP metric.
Data Used in This Presentation
Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Third Party Information
The information contained herein does not purport to be all inclusive. This presentation has been prepared by the Company and includes information from other sources believed by the Company to be reliable. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of any of the opinions and conclusions set forth herein based on such information. This presentation may contain descriptions or summaries of certain documents and agreements, but such descriptions or summaries are qualified in their entirety by reference to the actual documents or agreements. Unless otherwise indicated, the information contained herein speaks only as of the date hereof and is subject to change, completion or amendment without notice.
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Key Messages from Q1 2024 Earnings Report and Call
- Revenue of $570.1M at high end of guided range of $530-$570M
- GAAP EPS of $0.10
- Non-GAAPEPS of $0.31 above the guided range of $0.24-$0.30
- Cash flow from operations of $43.9 million
- Repurchased 600,000 shares of common stock for $9.3 million at an average price of $15.56 per share
- Cash balance of $440.4M. Net leverage defined as net debt divided by last twelve months of EBITDA at 1.5x.
- Expect Q2 revenues of $560 to $600M and non-GAAP EPS of $0.32 to $0.38
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Q1'24 End Market Commentary
End Market (% of | Q1'24 | Q1'23 | Year on Year Growth | Q2'24 |
Revenues) | Guidance | |||
Aerospace & Defense | 46% | 43% | 14% | 44% |
Data Center Computing | 21% | 10% | 106% | 20% |
Medical, Industrial & | 14% | 19% | (22%) | 15% |
Instrumentation | ||||
Automotive | 13% | 17% | (21%) | 14% |
Networking1 | 6% | 11% | (45%) | 7% |
1Results for Q1'24 do not include Shanghai BPA facility while Q1'23 does include Shanghai BPA
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Q1 2024 Operational Metrics1
Operating Metric | Q1'24 | Q1'23 |
Advanced Technology | 48% | 41% |
Asia Pacific PCB Capacity Utilization | 52% | 52% |
North America PCB Capacity Utilization | 38% | 39% |
Top 5 Customers | 42% | 36% |
Backlog | $592.6 mn | $482.2 mn |
A&D Program Backlog | $1.38 bn | $1.38 bn |
Book to Bill | 1.15 | 0.82 |
1Results for Q1'24 do not include Shanghai BPA facility while Q1'23 does include Shanghai BPA
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Quarterly Financial Results and Guidance
Financial Metric (Non-GAAP)1 | Q1'24 | Q1'23 | Year on Year Change | Q2'24 Guide |
Revenues2 | $570.1 mn | $544.4 mn | 4.7% | $560-$600 mn |
Operating Margin | 7.1% | 6.1% | 1.0 pt | N/A |
EBITDA Margin | 13.1% | 10.7% | 2.4 pt | N/A |
EPS | $0.31 | $0.18 | $0.13 | $0.32-$0.38 |
Cash flow from Ops | $43.9 mn | $55.1 mn | ($11.2 mn) | N/A |
Capex | $49.3 mn | $30.7 mn | $18.6 mn | N/A |
Free Cash flow | ($5.4) mn | $24.4 mn | ($29.8 mn) | N/A |
Net debt/EBITDA | 1.5x | 1.5x | 0 | N/A |
1See Appendix for reconciliation to GAAP
2Results for Q1'24 do not include Shanghai BPA facility while Q1'23 does includes ~$8M revenues from Shanghai BPA; Results for Q1'24 also reflect a revenue decline of ~$20M from the three PCB plants that were closed
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Additional Financial Guidance for Q2'24
- Non-GAAP
- SG&A expense of ~9.9%
- R&D expense of ~1.3%
- Interest expense of ~$12.2 million
- Interest income of ~$2.0 million
- Effective tax rate of 12%-16%
- Diluted share count of 105 million
- GAAP
- Depreciation expense of ~$26.5 million
- Amortization of intangibles of ~$12.6 million
- Stock based compensation expense of ~$5.6 million
- Non-cashinterest expense of ~$0.5 million
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Thank You
Appendix
Non-GAAP Reconciliations Q1 24
RECONCILIATIONS1 | First Quarter | ||||
2024 | 2023 | ||||
Non-GAAP gross profit reconciliation2: | |||||
GAAP gross profit | $ | 103,719 | $ | 86,123 | |
Add back item: | |||||
Amortization of definite-lived intangibles | 2,336 | 5,808 | |||
Stock-based compensation | 2,029 | 1,662 | |||
Unrealized gain on commodity hedge | (752) | (2,128) | |||
Purchase accounting related inventory markup | - | 163 | |||
Other charges | (162) | 1,233 | |||
Non-GAAP gross profit | $ | 107,170 | $ | 92,861 | |
Non-GAAP gross margin | 18.8% | 17.1% | |||
Non-GAAP operating income reconciliation3: | |||||
GAAP operating income (loss) | $ | 17,067 | $ | (3,468) | |
Add back items: | |||||
Amortization of definite-lived intangibles | 13,765 | 27,772 | |||
Stock-based compensation | 6,787 | 5,240 | |||
Gain on sale of assets | - | (173) | |||
Unrealized gain on commodity hedge | (752) | (2,128) | |||
Purchase accounting related inventory markup | - | 163 | |||
Restructuring, acquisition-related and other charges | 3,826 | 5,944 | |||
Non-GAAP operating income | $ | 40,693 | $ | 33,350 | |
Non-GAAP operating margin | 7.1% | 6.1% | |||
Non-GAAP net income and EPS reconciliation4: | |||||
GAAP net income (loss) | $ | 10,466 | $ | (5,814) | |
Add back items: | |||||
Amortization of definite-lived intangibles | 13,765 | 27,772 | |||
Stock-based compensation | 6,787 | 5,240 | |||
Non-cash interest expense | 518 | 727 | |||
Gain on sale of assets | - | (173) | |||
Gain on sale of subsidiary | - | (1,339) | |||
Unrealized gain on commodity hedge | (752) | (2,128) | |||
Purchase accounting related inventory markup | - | 163 | |||
Restructuring, acquisition-related and other charges | 3,738 | 5,944 | |||
Income taxes5 | (1,735) | (11,744) | |||
Non-GAAP net income | $ | 32,787 | $ | 18,648 | |
Non-GAAP earnings per diluted share | $ | 0.31 | $ | 0.18 |
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TTM Technologies Inc. published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 10:07:32 UTC.