SANTA ANA, CA – TTM Technologies reported fiscal fourth quarter net sales from continuing operations were $523.8 million, a decline of 2.2% year-over-year.
For the quarter ended Dec. 28, GAAP net income from continuing operations was $39 million, growth of 261.1% compared to the same period in the prior year. GAAP operating income was $29.2 million, nearly flat.
“In the fourth quarter, TTM demonstrated excellent operational execution in the face of Covid-19-related challenges to deliver revenue above the midpoint and earnings above the previously guided range. TTM outperformed revenue expectations due to better sales across all end markets,” said CEO Tom Edman. “Additionally, strict financial discipline led to solid operating cash flow in the quarter, driving our net debt leverage ratio down to 1.4x and enabling repayment of our convertible bond.”
Cash flow from operations for the fourth quarter was $55.5 million, and the company repaid and settled $250 million convertible bonds. In the first quarter, TTM announced a $100 million stock repurchase program.
Net sales for 2020 decreased 0.94% to $2.11 billion. For the year, GAAP net loss was $16.4 million, compared to GAAP net income of $31.9 million in 2019. GAAP operating income was $28.1 million, compared to GAAP operating income of $109.6 million the prior year.
Adjusted EBITDA for 2020 was $272.3 million, or 12.9% of net sales, compared to $285.7 million, or 13.4% of net sales, for 2019. Cash flow from operations for the year was $287.2 million.
"Despite the challenges from Covid-19 and the strengthening Chinese currency, we delivered solid results in 2020 and made progress on our strategy of diversification, differentiation and discipline. Specifically, we exited the volatile consumer and lower margin businesses through the sale of the mobility business unit and the restructuring of the E-MS business unit. In addition, we generated significant cash flow due to our operational and financial discipline. This cash, along with the proceeds from the mobility sale, allowed us to repay $400 million of our term loan and our convertible bonds, reducing our leverage and putting TTM in a strong position for the future.”
TTM estimates revenue for the first quarter in the range of $490 million to $530 million.
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