FORM 8-K/A

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K/A

(Amendment No. 1)

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 7, 2012

 

 

 

TTM TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

 

 

 

DELAWARE   0-31285   91-1033443

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

2630 SOUTH HARBOR BOULEVARD

SANTA ANA, CALIFORNIA

92704

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (714) 327-3000

 

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02. Results of Operations and Financial Condition.

On February 7, 2012, TTM Technologies, Inc. (the “Company”) filed a Current Report on Form 8-K (the “Original Filing”) with the Securities and Exchange Commission furnishing a press release that announced the Company’s financial results for the fourth quarter and year ended December 31, 2011. This Amendment No. 1 on Form 8-K/A is being filed to amend certain information set forth in the Original Filing.

Subsequent to the issuance of the press release and the Original Filing, the Company determined, pursuant to APB 23, to permanently reinvest all earnings of the Company’s 70% owned SYE manufacturing subsidiary located in Dongguan, China. This resulted in an approximately $2.8 million decrease in the Company’s 2011 income tax provision reflected in the Original Filing. The adjusted income tax provision is $1.3 million for the quarter ended December 31, 2011 (compared to $4.1 million as previously reported) and $26 million for the year ended December 31, 2011 (compared to $28.8 million as previously reported).

The net impact of the above adjustment is an increase in net income attributable to stockholders for the quarter ended December 31, 2011 to $11.2 million, or $0.14 per diluted share (compared to $8.4 million, or $0.10 per diluted share, as previously reported), and an increase in net income attributable to stockholders for the year ended December 31, 2011 to $41.9 million, or $0.51 per diluted share (compared to $39.1 million, or $0.48 per diluted share, as previously reported).

On a non-GAAP basis, the net impact of the above adjustment is an increase to net income attributable to stockholders for the quarter ended December 31, 2011 to $29.3 million, or $0.36 per diluted share (compared to $27.7 million, or $0.34 per diluted share as previously reported), and an increase in net income attributable to stockholders for the year ended December 31, 2011 to $126.5 million, or $1.54 per diluted share (compared to $124.8 million, or $1.52 per diluted share as previously reported).

Previously reported results for the first three quarters of 2011 are not affected by the adjustments. The financial statements included below in this report reflect the adjustments noted above. The Company’s Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 29, 2012, reflects this corrected information.

About Our Non-GAAP Financial Measures

This report contains information about the Company’s non-GAAP net income attributable to stockholders and non-GAAP earnings per share attributable to stockholders, which are non-GAAP financial measures. Management believes that both measures — which add back amortization of intangibles, stock-based compensation expense, non-cash interest expense on debt, asset impairments, restructuring and other charges as well as the associated tax impact of these charges — provide additional useful information to investors regarding the Company’s ongoing financial condition and results of operations.

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. The Company compensates 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.

 

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TTM TECHNOLOGIES, INC.

Selected Unaudited Financial Information

(In thousands, except per share data)

CONSOLIDATED STATEMENTS OF OPERATIONS

 

September 30, September 30, September 30, September 30, September 30,
       Fourth Quarter      Third Quarter      Full Year  
       2011      2010      2011      2011      2010  

Net sales

     $ 361,460       $ 373,391       $ 358,261       $ 1,428,639       $ 1,179,671   

Cost of goods sold

       290,082         283,388         287,587         1,127,326         925,266   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

       71,378         90,003         70,674         301,313         254,405   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Operating expenses:

                

Selling and marketing

       9,867         9,460         8,668         36,891         34,345   

General and administrative

       24,178         23,360         21,342         92,682         79,668   

Amortization of definite-lived intangibles

       4,517         4,613         4,315         17,311         13,678   

Restructuring charges

       —           (60      —           —           389   

Impairment of goodwill

       15,184         —           —           15,184         —     

Impairment of long-lived assets

       —           —           —           48,125         766   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total operating expenses

       53,746         37,373         34,325         210,193         128,846   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

       17,632         52,630         36,349         91,120         125,559   

Interest expense

       (6,795      (6,373      (6,734      (26,504      (22,255

Interest income

       159         145         139         661         505   

Other, net

       2,692         2,446         1,214         7,955         4,828   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

       13,688         48,848         30,968         73,232         108,637   

Income tax provision

       (1,328      (12,319      (4,921      (26,005      (28,738
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net income

       12,360         36,529         26,047         47,227         79,899   

Net income attributable to noncontrolling interest

       (1,190      (3,503      (1,569      (5,359      (8,368
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net income attributable to stockholders

     $ 11,170       $ 33,026       $ 24,478       $ 41,868       $ 71,531   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per share attributable to stockholders:

                

Basic

     $ 0.14       $ 0.41       $ 0.30       $ 0.52       $ 1.02   

Diluted

     $ 0.14       $ 0.41       $ 0.30       $ 0.51       $ 1.01   

Weighted average common shares:

                

Basic

       81,336         80,139         81,332         81,176         70,220   

Diluted

       81,988         80,962         81,934         81,944         70,819   

SELECTED BALANCE SHEET DATA

 

September 30, September 30,
       December 31, 2011        December 31, 2010  

Cash and cash equivalents

     $ 196,052         $ 216,078   

Accounts and notes receivable, net

       316,568           287,703   

Inventories

       129,430           135,385   

Total current assets

       671,534           676,499   

Property, plant and equipment, net

       766,800           740,630   

Other non-current assets

       310,735           344,823   
    

 

 

      

 

 

 

Total assets

     $ 1,749,069         $ 1,761,952   
    

 

 

      

 

 

 

Short-term debt, including current portion long-term debt

     $ 120,882         $ 67,123   

Accounts payable

       185,906           204,974   

Total current liabilities

       437,140           418,200   

Debt, net of discount

       368,518           458,278   

Total long-term liabilities

       389,259           510,894   

Noncontrolling interest

       113,753           104,603   

Total stockholders’ equity

       922,670           832,858   
    

 

 

      

 

 

 

Total liabilities and stockholders’ equity

     $ 1,749,069         $ 1,761,952   
    

 

 

      

 

 

 

 

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SUPPLEMENTAL DATA

 

September 30, September 30, September 30, September 30, September 30,
       Fourth Quarter     Third Quarter     Full Year  
       2011     2010     2011     2011     2010  

Gross margin

       19.7     24.1     19.7     21.1     21.6

Adjusted EBITDA margin

       16.6        20.5        16.5        17.5        16.5   

Operating margin

       4.9        14.1        10.1        6.4        10.6   

End Market Breakdown:

 

September 30, September 30, September 30,
       Fourth Quarter     Third Quarter  
       2011     2010     2011  

Aerospace/Defense

       15     16     16

Cellular Phone

       14        12        10   

Computing/Storage/Peripherals

       20        22        21   

Medical/Industrial/Instrumentation

       8        8        7   

Networking/Communications

       33        37        38   

Other

       10        5        8   

Stock-based Compensation:

 

September 30, September 30, September 30,
        Fourth Quarter        Third Quarter  
       2011        2010        2011  

Amount included in:

              

Cost of goods sold

     $ 251         $ 308         $ 219   

Selling and marketing

       106           107           100   

General and administrative

       1,786           1,838           1,735   
    

 

 

      

 

 

      

 

 

 

Total stock-based compensation expense

     $ 2,143         $ 2,253         $ 2,054   
    

 

 

      

 

 

      

 

 

 

Operating Segment Data:

 

September 30, September 30, September 30,
        Fourth Quarter      Third Quarter  
       2011      2010      2011  

Net sales:

          

Asia Pacific

     $ 218,448       $ 220,212       $ 222,284   

North America

       144,079         156,421         137,355   
    

 

 

    

 

 

    

 

 

 

Total sales

       362,527         376,633         359,639   

Inter-segment sales

       (1,067      (3,242      (1,378
    

 

 

    

 

 

    

 

 

 

Total net sales

     $ 361,460       $ 373,391       $ 358,261   
    

 

 

    

 

 

    

 

 

 

Operating segment income:

          

Asia Pacific

     $ 20,094       $ 38,257       $ 27,855   

North America

       2,055         18,986         12,809   
    

 

 

    

 

 

    

 

 

 

Total operating segment income

       22,149         57,243         40,664   

Amortization of definite-lived intangibles

       (4,517      (4,613      (4,315
    

 

 

    

 

 

    

 

 

 

Total operating income

       17,632         52,630         36,349   

Total other expense

       (3,944      (3,782      (5,381
    

 

 

    

 

 

    

 

 

 

Income before income taxes

     $ 13,688       $ 48,848       $ 30,968   
    

 

 

    

 

 

    

 

 

 

 

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RECONCILIATIONS(1)

 

September 30, September 30, September 30, September 30, September 30,
       Fourth Quarter      Third Quarter      Full Year  
       2011      2010      2011      2011      2010  

Adjusted EBITDA reconciliation(2):

                

Net income

     $ 12,360       $ 36,529       $ 26,047       $ 47,227       $ 79,899   

Add back items:

                

Income tax provision

       1,328         12,319         4,921         26,005         28,738   

Interest expense

       6,795         6,373         6,734         26,504         22,255   

Amortization of definite-lived intangibles

       4,546         4,643         4,343         17,427         13,795   

Depreciation expense

       19,946         16,634         17,231         69,698         48,747   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

EBITDA

     $ 44,975       $ 76,498       $ 59,276       $ 186,861       $ 193,434   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Add back: Asset impairments

       15,184         —           —           63,309         766   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

     $ 60,159       $ 76,498       $ 59,276       $ 250,170       $ 194,200   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

GAAP EPS excluding impairments reconciliation(3):

                

GAAP net income attributable to stockholders

     $ 11,170       $ 33,026       $ 24,478       $ 41,868       $ 71,531   

Add back items:

                

Asset impairments

       15,184         —           —           63,309         766   

Income tax effects

       (4,058      —           —           (4,764      (203
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

GAAP net income, excluding impairments, attributable to stockholders

     $ 22,296       $ 33,026       $ 24,478       $ 100,413       $ 72,094   

GAAP earnings per diluted share, excluding impairments, attributable to stockholders

     $ 0.27       $ 0.41       $ 0.30       $ 1.23       $ 1.02   

Non-GAAP EPS reconciliation(4):

                

GAAP net income attributable to stockholders

     $ 11,170       $ 33,026       $ 24,478       $ 41,868       $ 71,531   

Add back items:

                

Amortization of definite-lived intangibles

       4,546         4,643         4,343         17,427         13,795   

Stock-based compensation

       2,143         2,253         2,054         8,075         6,913   

Non-cash interest expense

       1,947         2,189         1,909         8,163         7,744   

Impairments, restructuring and other charges

       15,184         (54      —           63,309         17,749   

Income tax effects

       (5,666      (2,391      (1,826      (12,379      (12,222
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP net income attributable to stockholders

     $ 29,324       $ 39,666       $ 30,958       $ 126,463       $ 105,510   

Non-GAAP earnings per diluted share attributable to stockholders

     $ 0.36       $ 0.49       $ 0.38       $ 1.54       $ 1.49   

 

1.

This information provides a reconciliation of EBITDA, adjusted EBITDA, GAAP net income (excluding impairments) attributable to stockholders, GAAP EPS (excluding impairments) attributable to stockholders, non-GAAP net income attributable to stockholders and non-GAAP EPS attributable to stockholders to the financial information in our consolidated statements of operations.

 

2.

Adjusted EBITDA is defined as earnings before interest expense, income taxes, depreciation, amortization and asset impairments. We present adjusted EBITDA to enhance the understanding of our operating results, and it is a key measure we use to evaluate our operations. In addition, we provide our adjusted EBITDA because we believe that investors and securities analysts will find adjusted EBITDA to be a useful measure for evaluating our operating performance and comparing our operating performance with that of similar companies that have different capital structures and for evaluating our ability to meet our future debt service, capital expenditures, and working capital requirements. However, adjusted EBITDA should not be considered as an alternative to cash flows from operating activities as a measure of liquidity or as an alternative to net income as a measure of operating results in accordance with accounting principles generally accepted in the United States of America.

 

3.

This information provides GAAP net income attribututable to stockholders and GAAP EPS attributable to stockholders excluding asset impairments and related income tax effects.

 

4.

This information provides non-GAAP net income attributable to stockholders and non-GAAP EPS attributable to stockholders, which are non-GAAP financial measures. Management believes that both measures — which add back amortization of intangibles, stock-based compensation expense, non-cash interest expense on debt (before consideration of capitalized interest), asset impairments, restructuring and other charges as well as the associated tax impact of these charges — provide additional useful information to investors regarding the Company’s ongoing financial condition and results of operations.

 

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

   

TTM TECHNOLOGIES, INC.

Date: February 29, 2012

    By:  

/s/ Steven W. Richards

     

Steven W. Richards

     

Chief Financial Officer

 

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