2008 Year-End Results

Fourth Quarter Segment Information

TTM Technologies reports two operating segments: pcb manufacturerand Backplane Assembly.

For the pcb manufacturersegment, fourth quarter net sales (before inter-company sales) were $144.2 million, compared with $148.0 million in the third quarter. Fourth quarter operating segment loss (before amortization of intangibles) was $107.5 million due to a fixed asset and goodwill impairment charge of $120.6 million. Excluding this charge, fourth quarter operating income (before amortization of intangibles) for the PCB Manufacturing segment was $13.1 million compared with operating income of $14.3 million in the third quarter.

Kent Alder, President and CEO of TTM, noted, "We are pleased with our results for the fourth quarter. Although global macroeconomic conditions remain challenging, the Company's highly focused strategy enabled us to continue our trend of delivering solid financial performance from our business. We generated significant cash during the quarter, and the Aerospace/Defense end market was again a significant part of our success."

Fourth quarter net sales of $164.9 million decreased $4.1 million, or 2.4 percent, from third quarter net sales of $169.0 million.

Fourth quarter gross margin of 18.6 percent declined from third quarter gross margin of 19.0 percent.

In the fourth quarter, TTM conducted a review of its goodwill, long-lived and intangible assets for potential impairment. Due to the current economic downturn and a significant decline in the Company's market capitalization, TTM recorded significant non-cash impairment charges of $123.3 million related to its goodwill and fixed assets in the fourth quarter. The charges reduced goodwill by $117.0 million and fixed assets by $6.3 million. The Company noted that the non-cash impairment charges do not affect its cash balance, liquidity, operating cash flow or the terms of the Company's debt.

As a result of these charges, TTM posted a fourth quarter operating loss of $108.9 million. Fourth quarter operating income, excluding impairment charges, was $14.5 million compared with third quarter operating income of $15.5 million.

Fourth quarter net loss was $68.5 million, or $1.60 per basic share. Excluding impairment charges, fourth quarter net income was $7.6 million, or $0.18 per diluted share, a decline from third quarter net income of $9.5 million, or $0.22 per diluted share.

EBITDA (earnings before interest, taxes, depreciation and amortization) was negative $102.7 million for the fourth quarter. Excluding impairment charges, adjusted EBITDA for the fourth quarter was $20.7 million, or 12.5 percent of net sales, compared with third quarter EBITDA of $22.2 million, or 13.1 percent of net sales. (A reconciliation of this non-GAAP measure is provided after the GAAP financial statements accompanying this press release.)

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