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TTM Technologies Reports Fiscal Q4, 2022 Results
February 9, 2023 | Globe NewswireEstimated reading time: 3 minutes
TTM Technologies, Inc., a leading global manufacturer of technology solutions including engineered systems, radio frequency (RF) components and RF microwave/microelectronic assemblies, and printed circuit boards (PCB), reported results for the fourth quarter and fiscal 2022, which ended on January 2, 2023.
Fourth Quarter 2022 Highlights:
- Net sales were $617.2 million
- GAAP net income of $6.0 million, or $0.06 per diluted share
- Non-GAAP net income was $42.7 million, or $0.41 per diluted share
- Operating cash flow of $77.6 million; free cash flow of $56.8 million
- Announced consolidation of manufacturing footprint
Fourth Quarter 2022 GAAP Financial Results
Net sales for the fourth quarter of 2022 were $617.2 million, compared to $598.1 million in the fourth quarter of 2021.
GAAP operating income for the fourth quarter of 2022 was $97.6 million and includes a gain of $51.8 million in December 2022 from the sale of the property occupied by our former Shanghai E-MS entity. This compares to GAAP operating income of $33.1 million in the fourth quarter of 2021.
GAAP net income for the fourth quarter of 2022 was $6.0 million, or $0.06 per diluted share, compared to GAAP net income of $8.4 million, or $0.08 per diluted share in the fourth quarter of 2021. Our fourth quarter 2022 results include a tax reserve of $51.7 million to establish a valuation allowance for certain U.S. deferred tax items.
Fourth Quarter 2022 Non-GAAP Financial Results
On a non-GAAP basis, net income for the fourth quarter of 2022 was $42.7 million, or $0.41 per diluted share. This compares to non-GAAP net income of $36.2 million, or $0.34 per diluted share, for the fourth quarter of 2021.
Adjusted EBITDA in the fourth quarter of 2022 was $81.6 million, or 13.2% of sales compared to adjusted EBITDA of $70.4 million, or 11.8% of sales for the fourth quarter of 2021.
“TTM delivered non-GAAP earnings above the midpoint of guidance. Of particular note, we saw strong cash flow in the fourth quarter of $77.6 million, which allowed us to repay a portion of our Term Loan B on January 3rd, 2023, and reduce our net leverage to 1.5x, below our 2x target,” said Tom Edman, CEO of TTM. “We also saw the second quarter in a row of record bookings of $464.3 million in the Aerospace and Defense end market,” concluded Mr. Edman.
Full Year Fiscal 2022 Results
Net sales for fiscal year 2022 increased to $2.50 billion from $2.25 billion in fiscal year 2021, an 11.0% increase. Excluding approximately six months from the contribution of Telephonics, revenues grew organically 5.4% in 2022 over 2021.
GAAP operating income for fiscal year 2022 was $210.4 million, an increase from GAAP operating income of $126.0 million in fiscal year 2021.
GAAP net income for fiscal year 2022 was $94.6 million, or $0.91 per diluted share, compared to GAAP net income of $54.4 million, or $0.50 per diluted share, in fiscal year 2021.
On a non-GAAP basis, net income for fiscal year 2022 was $181.2 million, or $1.74 per diluted share. This compares to fiscal year 2021 non-GAAP net income of $138.0 million, or $1.28 per diluted share.
Adjusted EBITDA for fiscal year 2022 was $343.1 million, or 13.8 percent of net sales, compared to $275.6 million, or 12.3 percent of net sales, for fiscal year 2021. Cash flow from operations for fiscal year 2022 was $272.9 million.
"We delivered solid results in 2022 with revenues growing organically 5.4% year on year, despite supply chain, labor inflation and availability, and COVID-19 challenges," continued Edman. “In addition, we closed the acquisition of Telephonics, increasing our revenues from the Aerospace and Defense end market to approximately one billion dollar annual run rate and approximately 40% of total company revenues. Finally, in 2022, we generated $272.9 million in operating cash flow which enabled us to purchase Telephonics and strengthen our balance sheet, while returning capital to our shareholders.”
Business Outlook
While demand in the Aerospace and Defense market remains strong, we have seen a reduction in bookings in our commercial end markets due to inventory reductions, weaker end market demand and production inefficiencies in our Asia Pacific manufacturing facilities due to Chinese New Year. As a result, TTM estimates that revenue for the first quarter of 2023 will be in the range of $550 million to $590 million, and non-GAAP net income will be in the range of $0.16 to $0.22 per diluted share. We also announced a plan for the consolidation of our manufacturing footprint in a press release issued today, February 8th, after the market close.
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