TTM Technologies, Inc. Reports Fiscal Third Quarter 2020 Results
SANTA ANA, Calif., Oct. 28, 2020 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (NASDAQ:TTMI), a leading global printed circuit board (“PCB”) and radio frequency (“RF”) components manufacturer, today reported results for the third quarter of fiscal 2020, which ended on September 28, 2020.
On April 19th, 2020, TTM completed the previously announced sale of its Mobility business unit. The operating results and related assets and liabilities of the Mobility business under US GAAP are presented as discontinued operations for all periods. Non-GAAP results do not include Mobility results but still include the two E-MS plants being shut down. Please refer to the earnings schedule for additional details on exited businesses and continuing operations.
Third Quarter 2020 Highlights
- Net sales were $513.6 million
- GAAP net loss of $41.5 million, or ($0.39) per diluted share, inclusive of a goodwill impairment charge of $69.2 million
- Non-GAAP net income was $26.8 million, or $0.25 per diluted share
- Cash flow from operations of $84.8 million
- Received all remaining proceeds from Mobility sale and repaid $400 million of Term Loan B
- Leverage ratio at September 28th was 1.6x defined as net debt/last twelve months EBITDA excluding Mobility
Third Quarter 2020 GAAP Financial Results
Net sales from continuing operations for the third quarter of 2020 were $513.6 million, compared to $534.2 million in the third quarter of 2019.
GAAP operating loss from continuing operations for the third quarter of 2020 was $40.3 million, inclusive of a goodwill impairment charge of $69.2 million. This compares to GAAP operating income of $21.1 million in the third quarter of 2019.
GAAP net loss for the third quarter of 2020 was $41.5 million, or ($0.39) per diluted share, compared to net income of $15.9 million, or $0.15 per diluted share in the third quarter of 2019.
Third Quarter 2020 Non-GAAP Financial Results
On a non-GAAP basis, net income for the third quarter of 2020 was $26.8 million, or $0.25 per diluted share. This compares to non-GAAP net income of $23.2 million, or $0.22 per diluted share, for the third quarter of 2019.
Adjusted EBITDA for the third quarter of 2020 was $67.2 million, or 13.1 percent of net sales, compared to adjusted EBITDA of $66.7 million, or 12.5 percent of net sales, for the third quarter of 2019.
“In the third quarter, TTM demonstrated excellent operational execution to deliver revenue and earnings above the previously guided range. The diversified mix of end markets that we serve enabled the PCB segment to grow revenues and outperform profit expectations due to solid growth in the data center and defense end markets despite weakness in the commercial aerospace end market,” said Tom Edman, CEO of TTM. “Additionally, strict financial discipline led to strong operating cash flow in the quarter driving our net debt leverage ratio down to 1.6x.”
Business Outlook
TTM estimates that revenue for the fourth quarter of 2020 will be in the range of $490 million to $530 million, and non-GAAP net income will be in the range of $0.22 to $0.28 per diluted share. This guidance continues to include the E-MS business unit while that business winds down.
Live Webcast/Conference Call
TTM will host a conference call and webcast to discuss third quarter 2020 results and the fourth quarter 2020 outlook on Wednesday, October 28, 2020, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call will include forward-looking statements.
Telephone access is available by dialing domestic 800-367-2403 or international 334-777-6978 (ID 9148146). The conference call also will be webcast on TTM’s website at www.ttm.com.
To Access a Replay of the Webcast
The replay of the webcast will remain accessible for one week following the live event on TTM’s website at www.ttm.com.
About TTM
TTM Technologies, Inc. is a leading global printed circuit board manufacturer, focusing on quick-turn and volume production of technologically advanced PCBs and backplane assemblies as well as a global designer and manufacturer of high-frequency radio frequency (RF) and microwave components and assemblies. TTM stands for time-to-market, representing how TTM's time-critical, one-stop manufacturing services enable customers to shorten the time required to develop new products and bring them to market. Additional information can be found at www.ttm.com.
Forward-Looking Statements
This release contains forward-looking statements that relate to future events or performance. TTM cautions you that such statements are simply predictions and actual events or results may differ materially. These statements reflect TTM's current expectations, and TTM does not undertake to update or revise these forward looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other TTM statements will not be realized. Further, these statements involve risks and uncertainties, many of which are beyond TTM's control, which could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include, but are not limited to, the impact of COVID-19, general market and economic conditions, including interest rates, currency exchange rates and consumer spending, demand for TTM's products, market pressures on prices of TTM's products, warranty claims, changes in product mix, contemplated significant capital expenditures and related financing requirements, TTM's dependence upon a small number of customers and other factors set forth in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's public reports filed with the SEC.
About Our Non-GAAP Financial Measures
This release includes information about TTM’s adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share, all of which are non-GAAP financial measures. TTM presents non-GAAP financial information to enable investors to see TTM through the eyes of management and to provide better insight into TTM’s 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. TTM 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.
With respect to the Company’s outlook for non-GAAP net income per diluted share, we are unable to predict with reasonable certainty or without unreasonable effort certain items that may affect a comparable measure calculated and presented in accordance with GAAP. Our expected non-GAAP net income per diluted share excludes primarily the future impact of restructuring actions, impairment charges, unusual gains and losses, and tax adjustments. These reconciling items are highly variable and difficult to predict due to various factors outside of management’s control and could have a material impact on our future period net income per diluted share calculated and presented in accordance with GAAP. Accordingly, a reconciliation of non-GAAP net income per diluted share to a comparable measure calculated and presented in accordance with GAAP is not available without unreasonable effort and has not been provided.
Contact:
Sameer Desai,
Senior Director, Corporate Development & Investor Relations
Sameer.desai@ttmtech.com
714-327-3050
| TTM TECHNOLOGIES, INC. | |||||||||||||||||||
| Selected Unaudited Financial Information | |||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||
| Third Quarter | First Three Quarters | ||||||||||||||||||
| 2020 | 2019* | 2020 | 2019* | ||||||||||||||||
| CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||||||||
| Net sales | $ | 513,576 | $ | 534,173 | $ | 1,581,520 | $ | 1,597,495 | |||||||||||
| Cost of goods sold | 424,298 | 448,915 | 1,310,470 | 1,320,563 | |||||||||||||||
| Gross profit | 89,278 | 85,258 | 271,050 | 276,932 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Selling and marketing | 15,895 | 17,153 | 48,033 | 51,611 | |||||||||||||||
| General and administrative | 27,998 | 33,104 | 95,646 | 92,091 | |||||||||||||||
| Research and development | 5,223 | 4,358 | 15,166 | 13,570 | |||||||||||||||
| Amortization of definite-lived intangibles | 10,126 | 9,500 | 29,249 | 36,245 | |||||||||||||||
| Restructuring charges | 1,088 | 12 | 14,830 | 3,176 | |||||||||||||||
| Impairment of goodwill | 69,200 | - | 69,200 | - | |||||||||||||||
| Total operating expenses | 129,530 | 64,127 | 272,124 | 196,693 | |||||||||||||||
| Operating (loss) income | (40,252 | ) | 21,131 | (1,074 | ) | 80,239 | |||||||||||||
| Interest expense | (20,204 | ) | (20,423 | ) | (58,557 | ) | (62,111 | ) | |||||||||||
| Other, net | (2,316 | ) | 5,875 | 641 | 8,525 | ||||||||||||||
| (Loss) income from continuing operations before income taxes | (62,772 | ) | 6,583 | (58,990 | ) | 26,653 | |||||||||||||
| Income tax benefit (provision) | 1,300 | (4,190 | ) | 3,644 | (5,529 | ) | |||||||||||||
| Net (loss) income from continuing operations | (61,472 | ) | 2,393 | (55,346 | ) | 21,124 | |||||||||||||
| Income (loss) from discontinued operations, net of income taxes | 20,021 | 13,477 | 193,921 | (5,082 | ) | ||||||||||||||
| Net (loss) income | $ | (41,451 | ) | $ | 15,870 | $ | 138,575 | $ | 16,042 | ||||||||||
| * Reclassified Research and development expenses as a separate line item from General and administrative expenses | |||||||||||||||||||
| (Loss) earnings per share: | |||||||||||||||||||
| Basic (loss) earnings per share from continuing operations | $ | (0.58 | ) | $ | 0.02 | $ | (0.52 | ) | $ | 0.20 | |||||||||
| Basic earnings (loss) per share from discontinued operations | 0.19 | 0.13 | 1.83 | (0.05 | ) | ||||||||||||||
| Basic (loss) earnings per share | $ | (0.39 | ) | $ | 0.15 | $ | 1.31 | $ | 0.15 | ||||||||||
| Diluted (loss) earnings per share from continuing operations | $ | (0.58 | ) | $ | 0.02 | $ | (0.52 | ) | $ | 0.20 | |||||||||
| Diluted earnings (loss) per share from discontinued operations | 0.19 | 0.13 | 1.83 | (0.05 | ) | ||||||||||||||
| Diluted (loss) earnings per share | $ | (0.39 | ) | $ | 0.15 | $ | 1.31 | $ | 0.15 | ||||||||||
| Weighted-average shares used in computing per share amounts: | |||||||||||||||||||
| Basic | 106,729 | 105,492 | 106,130 | 105,092 | |||||||||||||||
| Diluted | 106,729 | 106,474 | 106,130 | 106,065 | |||||||||||||||
| Reconciliation of the denominator used to calculate basic earnings per share and diluted earnings per share: | |||||||||||||||||||
| Weighted-average shares outstanding | 105,492 | 105,092 | |||||||||||||||||
| Dilutive effect of performance-based stock units, restricted stock units & stock options | 982 | 973 | |||||||||||||||||
| Diluted shares | 106,474 | 106,065 | |||||||||||||||||
| SELECTED BALANCE SHEET DATA | |||||||||||||||||||
| September 28, 2020 | December 30, 2019 | ||||||||||||||||||
| Cash and cash equivalents, including restricted cash1 | $ | 663,285 | $ | 379,818 | |||||||||||||||
| Accounts and notes receivable, net | 374,971 | 503,598 | |||||||||||||||||
| Contract assets | 281,663 | 254,600 | |||||||||||||||||
| Inventories | 127,588 | 113,753 | |||||||||||||||||
| Current assets held for sale | - | 67,572 | |||||||||||||||||
| Total current assets | 1,486,177 | 1,342,684 | |||||||||||||||||
| Property, plant and equipment, net | 654,837 | 678,201 | |||||||||||||||||
| Operating lease right of use asset | 22,993 | 22,173 | |||||||||||||||||
| Non-current assets held for sale | - | 425,597 | |||||||||||||||||
| Other non-current assets | 984,407 | 1,092,278 | |||||||||||||||||
| Total assets | 3,148,414 | 3,560,933 | |||||||||||||||||
| Short-term debt, including current portion of long-term debt | $ | 249,975 | $ | 249,975 | |||||||||||||||
| Accounts payable | 341,505 | 329,866 | |||||||||||||||||
| Current liabilities held for sale | - | 185,391 | |||||||||||||||||
| Total current liabilities | 787,322 | 946,666 | |||||||||||||||||
| Debt, net of discount | 840,023 | 1,225,962 | |||||||||||||||||
| Non-current liabilities held for sale | - | 1,530 | |||||||||||||||||
| Total long-term liabilities | 961,789 | 1,335,230 | |||||||||||||||||
| Total equity | 1,399,303 | 1,279,037 | |||||||||||||||||
| Total liabilities and equity | 3,148,414 | 3,560,933 | |||||||||||||||||
| SUPPLEMENTAL DATA | |||||||||||||||||||
| Third Quarter | First Three Quarters | ||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
| Gross margin | 17.4 | % | 16.0 | % | 17.1 | % | 17.3 | % | |||||||||||
| Operating margin | (7.8 | )% | 4.0 | % | (0.1 | )% | 5.0 | % | |||||||||||
| Stock-based Compensation: | |||||||||||||||||||
| Third Quarter | |||||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||
| Amount included in: | |||||||||||||||||||
| Cost of goods sold | $ | 1,173 | $ | 937 | |||||||||||||||
| Selling and marketing | 557 | 574 | |||||||||||||||||
| General and administrative | 2,705 | 3,089 | |||||||||||||||||
| Research and development | 44 | 62 | |||||||||||||||||
| Total stock-based compensation expense | $ | 4,479 | $ | 4,662 | |||||||||||||||
| RECONCILIATIONS2 | |||||||||||||||||||
| Third Quarter | First Three Quarters | ||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
| Non-GAAP gross profit reconciliation3: | |||||||||||||||||||
| GAAP gross profit from continuing operations | $ | 89,278 | $ | 85,258 | $ | 271,050 | $ | 276,932 | |||||||||||
| Add back item: | |||||||||||||||||||
| Amortization of definite-lived intangibles | 1,384 | 1,180 | 4,151 | 3,539 | |||||||||||||||
| Accelerated depreciation | 2,539 | - | 4,936 | - | |||||||||||||||
| Stock-based compensation | 1,173 | 937 | 2,647 | 2,210 | |||||||||||||||
| Non-GAAP gross profit | $ | 94,374 | $ | 87,375 | $ | 282,784 | $ | 282,681 | |||||||||||
| Non-GAAP gross margin | 18.4 | % | 16.4 | % | 17.9 | % | 17.7 | % | |||||||||||
| Non-GAAP operating income reconciliation4: | |||||||||||||||||||
| GAAP operating (loss) income from continuing operations | $ | (40,252 | ) | $ | 21,131 | $ | (1,074 | ) | $ | 80,239 | |||||||||
| Add back items: | |||||||||||||||||||
| Amortization of definite-lived intangibles | 11,510 | 10,680 | 33,400 | 39,784 | |||||||||||||||
| Accelerated depreciation | 2,940 | - | 5,694 | - | |||||||||||||||
| Stock-based compensation | 4,479 | 4,662 | 11,961 | 12,190 | |||||||||||||||
| Impairments, restructuring, acquisition-related, and other charges | 68,270 | 1,532 | 84,139 | 5,761 | |||||||||||||||
| Non-GAAP operating income | $ | 46,947 | $ | 38,005 | $ | 134,120 | $ | 137,974 | |||||||||||
| Non-GAAP operating margin | 9.1 | % | 7.1 | % | 8.5 | % | 8.6 | % | |||||||||||
| Non-GAAP net income and EPS reconciliation5: | |||||||||||||||||||
| GAAP net (loss) income from continuing operations | $ | (61,472 | ) | $ | 2,393 | $ | (55,346 | ) | $ | 21,124 | |||||||||
| Add back items: | |||||||||||||||||||
| Amortization of definite-lived intangibles | 11,510 | 10,680 | 33,400 | 39,784 | |||||||||||||||
| Accelerated depreciation | 2,940 | - | 5,694 | - | |||||||||||||||
| Stock-based compensation | 4,479 | 4,662 | 11,961 | 12,190 | |||||||||||||||
| Non-cash interest expense | 7,332 | 3,452 | 14,489 | 10,787 | |||||||||||||||
| (Gain) on sale of assets | (199 | ) | (251 | ) | (706 | ) | (3,557 | ) | |||||||||||
| Impairments, restructuring, acquisition-related, and other charges | 68,270 | 1,532 | 84,139 | 5,761 | |||||||||||||||
| Income taxes6 | (6,081 | ) | 725 | (17,188 | ) | (6,436 | ) | ||||||||||||
| Non-GAAP net income | $ | 26,779 | $ | 23,193 | $ | 76,443 | $ | 79,653 | |||||||||||
| Non-GAAP earnings per diluted share | $ | 0.25 | $ | 0.22 | $ | 0.72 | $ | 0.75 | |||||||||||
| Adjusted EBITDA reconciliation7: | |||||||||||||||||||
| GAAP net (loss) income from continuing operations | $ | (61,472 | ) | $ | 2,393 | $ | (55,346 | ) | $ | 21,124 | |||||||||
| Add back items: | |||||||||||||||||||
| Income tax (benefit) provision | (1,300 | ) | 4,190 | (3,644 | ) | 5,529 | |||||||||||||
| Interest expense | 20,204 | 20,423 | 58,557 | 62,111 | |||||||||||||||
| Amortization of definite-lived intangibles | 11,510 | 10,680 | 33,400 | 39,784 | |||||||||||||||
| Depreciation expense | 25,669 | 23,031 | 75,797 | 69,957 | |||||||||||||||
| Stock-based compensation | 4,479 | 4,662 | 11,961 | 12,190 | |||||||||||||||
| (Gain) on sale of assets | (199 | ) | (251 | ) | (706 | ) | (3,557 | ) | |||||||||||
| Impairments, restructuring, acquisition-related, and other charges | 68,270 | 1,532 | 84,139 | 5,761 | |||||||||||||||
| Adjusted EBITDA | $ | 67,161 | $ | 66,660 | $ | 204,158 | $ | 212,899 | |||||||||||
| Adjusted EBITDA margin | 13.1 | % | 12.5 | % | 12.9 | % | 13.3 | % | |||||||||||
| Free cash flow reconciliation, including Mobility: | |||||||||||||||||||
| Operating cash flow | 84,776 | 58,742 | 231,685 | 181,789 | |||||||||||||||
| Capital expenditures, net | (29,067 | ) | (25,803 | ) | (83,888 | ) | (88,990 | ) | |||||||||||
| Free cash flow | $ | 55,709 | $ | 32,939 | $ | 147,797 | $ | 92,799 | |||||||||||
| TTM Consolidated | ||||||||
| End Markets | 1Q 19 | 2Q 19 | 3Q 19 | 4Q 19 | FY2019 | 1Q 20 | 2Q 20 | 3Q 20 |
| Aerospace/Defense | 27% | 28% | 24% | 26% | 26% | 30% | 31% | 36% |
| Automotive | 17% | 16% | 17% | 14% | 16% | 12% | 12% | 14% |
| Cellular Phones | 7% | 6% | 19% | 16% | 13% | 11% | 3% | 0% |
| Computing/Storage/Periph | 13% | 15% | 12% | 14% | 13% | 14% | 13% | 12% |
| Medical/Industrial/Inst | 15% | 15% | 13% | 13% | 14% | 16% | 20% | 19% |
| Networking/Communications | 18% | 17% | 13% | 15% | 15% | 14% | 19% | 17% |
| Other | 3% | 3% | 2% | 2% | 3% | 3% | 2% | 2% |
| Mobility Business Unit | ||||||||
| End Markets | 1Q 19 | 2Q 19 | 3Q 19 | 4Q 19 | FY2019 | 1Q 20 | 2Q 20 | 3Q 20 |
| Aerospace/Defense | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Automotive | 5% | 6% | 3% | 2% | 4% | 3% | 4% | 0% |
| Cellular Phones | 48% | 41% | 73% | 65% | 60% | 56% | 54% | 0% |
| Computing/Storage/Periph | 28% | 36% | 14% | 19% | 22% | 22% | 25% | 0% |
| Medical/Industrial/Inst | 7% | 5% | 2% | 3% | 4% | 3% | 4% | 0% |
| Networking/Communications | 5% | 5% | 4% | 6% | 5% | 6% | 5% | 0% |
| Other | 7% | 7% | 4% | 5% | 5% | 10% | 8% | 0% |
| TTM excluding Mobility | ||||||||
| End Markets | 1Q 19 | 2Q 19 | 3Q 19 | 4Q 19 | FY2019 | 1Q 20 | 2Q 20 | 3Q 20 |
| Aerospace/Defense | 31% | 33% | 31% | 35% | 33% | 37% | 32% | 36% |
| Automotive | 19% | 18% | 21% | 17% | 19% | 14% | 12% | 14% |
| Cellular Phones | 0% | 0% | 1% | 0% | 0% | 1% | 0% | 0% |
| Computing/Storage/Periph | 11% | 11% | 11% | 12% | 11% | 12% | 13% | 12% |
| Medical/Industrial/Inst | 17% | 17% | 17% | 17% | 17% | 18% | 21% | 19% |
| Networking/Communications | 20% | 19% | 17% | 18% | 18% | 16% | 19% | 17% |
| Other | 2% | 2% | 2% | 1% | 2% | 2% | 3% | 2% |
| SZ + SH-EMS | ||||||||
| End Markets | 1Q 19 | 2Q 19 | 3Q 19 | 4Q 19 | FY2019 | 1Q 20 | 2Q 20 | 3Q 20 |
| Aerospace/Defense | 0% | 1% | 0% | 0% | 0% | 0% | 0% | 0% |
| Automotive | 56% | 58% | 74% | 59% | 63% | 49% | 54% | 49% |
| Cellular Phones | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Computing/Storage/Periph | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Medical/Industrial/Inst | 22% | 23% | 11% | 19% | 18% | 23% | 14% | 14% |
| Networking/Communications | 21% | 18% | 16% | 22% | 19% | 29% | 35% | 44% |
| Other | 1% | 0% | -1% | 0% | 0% | -1% | -3% | -7% |
| TTM, excluding Mobility, SZ & SH E-MS | ||||||||
| End Markets | 1Q 19 | 2Q 19 | 3Q 19 | 4Q 19 | FY2019 | 1Q 20 | 2Q 20 | 3Q 20 |
| Aerospace/Defense | 33% | 36% | 36% | 37% | 35% | 38% | 33% | 37% |
| Automotive | 17% | 15% | 15% | 15% | 15% | 13% | 11% | 13% |
| Cellular Phones | 0% | -1% | 1% | 0% | 0% | 1% | 0% | 0% |
| Computing/Storage/Periph | 12% | 12% | 12% | 13% | 12% | 12% | 13% | 13% |
| Medical/Industrial/Inst | 16% | 17% | 18% | 17% | 17% | 18% | 21% | 19% |
| Networking/Communications | 20% | 19% | 16% | 17% | 18% | 16% | 19% | 16% |
| Other | 2% | 2% | 2% | 1% | 3% | 2% | 3% | 2% |
| Select Non-GAAP Income Statement Data | ||||||||
| TTM Consolidated | Q1-19A | Q2-19A | Q3-19A | Q4-19A | FY 2019A | Q1-20A | Q2-20A | Q3-20A |
| Sales | 620.2 | 633.0 | 716.8 | 719.3 | 2,689.3 | 610.8 | 601.1 | 513.6 |
| Gross Profit | 90.6 | 86.4 | 106.0 | 126.8 | 409.7 | 88.3 | 107.2 | 94.4 |
| Gross Margin | 14.6% | 13.6% | 14.8% | 17.6% | 15.2% | 14.5% | 17.8% | 18.4% |
| Op Income | 40.5 | 37.2 | 54.0 | 72.3 | 204.0 | 35.7 | 54.7 | 46.9 |
| Operating Margin | 6.5% | 5.9% | 7.5% | 10.1% | 7.6% | 5.8% | 9.1% | 9.1% |
| EBITDA | 78.5 | 82.9 | 103.5 | 107.8 | 372.7 | 82.1 | 80.3 | 67.2 |
| EBITDA % | 12.7% | 13.1% | 14.4% | 15.0% | 13.9% | 13.4% | 13.4% | 13.1% |
| Mobility Proforma | Q1-19A | Q2-19A | Q3-19A | Q4-19A | FY 2019A | Q1-20A | Q2-20A | Q3-20A |
| Sales | 83.8 | 106.1 | 182.6 | 183.5 | 556.0 | 113.2 | 30.8 | - |
| Gross Profit | (10.1) | (8.2) | 18.6 | 24.3 | 24.5 | 4.7 | 2.4 | - |
| Gross Margin | -12.1% | -7.8% | 10.2% | 13.2% | 4.4% | 4.2% | 7.8% | - |
| Op Income | (11.9) | (10.3) | 16.0 | 21.0 | 14.8 | 2.1 | 1.1 | - |
| Operating Margin | -14.2% | -9.7% | 8.8% | 11.4% | 2.7% | 1.9% | 3.6% | - |
| EBITDA | 5.9 | 9.2 | 36.9 | 38.5 | 90.5 | 21.9 | 3.5 | - |
| EBITDA % | 7.0% | 8.7% | 20.2% | 21.0% | 16.3% | 19.3% | 11.4% | - |
| TTM Proforma Excluding Mobility | Q1-19A | Q2-19A | Q3-19A | Q4-19A | FY 2019A | Q1-20A | Q2-20A | Q3-20A |
| Sales | 536.4 | 526.9 | 534.2 | 535.8 | 2,133.3 | 497.6 | 570.3 | 513.6 |
| Gross Profit | 100.7 | 94.6 | 87.4 | 102.5 | 385.2 | 83.6 | 104.8 | 94.4 |
| Gross Margin | 18.8% | 18.0% | 16.4% | 19.1% | 18.1% | 16.8% | 18.4% | 18.4% |
| Op Income | 52.4 | 47.5 | 38.0 | 51.3 | 189.2 | 33.6 | 53.6 | 46.9 |
| Operating Margin | 9.8% | 9.0% | 7.1% | 9.6% | 8.9% | 6.8% | 9.4% | 9.1% |
| EBITDA | 72.6 | 73.7 | 66.6 | 69.3 | 282.2 | 60.2 | 76.8 | 67.2 |
| EBITDA % | 13.5% | 14.0% | 12.5% | 12.9% | 13.2% | 12.1% | 13.5% | 13.1% |
| SZ + SH-EMS Proforma | Q1-19A | Q2-19A | Q3-19A | Q4-19A | FY 2019A | Q1-20A | Q2-20A | Q3-20A |
| Sales | 36.0 | 40.9 | 54.5 | 29.8 | 161.2 | 14.2 | 21.4 | 20.5 |
| Gross Profit | 3.0 | 3.4 | 5.2 | 2.3 | 13.9 | (2.4) | (0.3) | 3.4 |
| Gross Margin | 8.3% | 8.3% | 9.5% | 7.7% | 8.6% | -16.7% | -1.4% | 16.6% |
| Op Income | 2.0 | 1.2 | 4.3 | 2.0 | 9.5 | (3.8) | (0.8) | 2.3 |
| Operating Margin | 5.6% | 2.9% | 7.9% | 6.7% | 5.9% | -26.8% | -3.8% | 11.3% |
| EBITDA | 2.5 | 3.1 | 7.1 | 2.0 | 14.7 | (3.6) | 0.1 | 2.6 |
| EBITDA % | 6.9% | 7.6% | 13.0% | 6.7% | 9.1% | -25.4% | 0.4% | 12.9% |
| TTM Proforma Excluding Mobility, SZ & SH-EMS | Q1-19A | Q2-19A | Q3-19A | Q4-19A | FY 2019A | Q1-20A | Q2-20A | Q3-20A |
| Sales | 500.4 | 486.0 | 479.7 | 506.0 | 1,972.1 | 483.4 | 548.9 | 493.1 |
| Gross Profit | 97.7 | 91.2 | 82.2 | 100.1 | 371.2 | 86.0 | 105.1 | 91.0 |
| Gross Margin | 19.5% | 18.8% | 17.1% | 19.8% | 18.8% | 17.8% | 19.1% | 18.5% |
| Op Income | 50.4 | 46.2 | 33.7 | 49.3 | 179.6 | 37.7 | 54.4 | 44.6 |
| OM | 10.1% | 9.5% | 7.0% | 9.7% | 9.1% | 7.8% | 9.9% | 9.0% |
| EBITDA | 70.1 | 70.6 | 59.5 | 67.0 | 267.1 | 63.8 | 76.7 | 64.6 |
| EBITDA % | 14.0% | 14.5% | 12.4% | 13.2% | 13.5% | 13.2% | 14.0% | 13.1% |
| 1Includes restricted cash of $249,975 as of September 28, 2020. | |||||||||||
| 2This information provides a reconciliation of non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP EPS, and adjusted EBITDA to the financial information in our consolidated condensed statements of operations. | |||||||||||
| 3 Non-GAAP gross profit and gross margin measures exclude amortization of intangibles, accelerated depreciation due to restructuring of two E-M Solutions plants, and stock-based compensation expense. | |||||||||||
| 4 Non-GAAP operating income and operating margin measures exclude amortization of intangibles, accelerated depreciation due to restructuring of two E-M Solutions plants, stock-based compensation expense, impairment of goodwill, acquisition-related costs, restructuring and other charges. | |||||||||||
| 5 This information provides non-GAAP net income and non-GAAP EPS, which are non-GAAP financial measures. Management believes that both measures -- which add back amortization of intangibles, accelerated depreciation due to restructuring of two E-M Solutions plants, stock-based compensation expense, non-cash interest expense on debt (before consideration of capitalized interest), gain on sale of assets, impairment of goodwill, acquisition-related costs, restructuring and other charges as well as the associated tax impact of these charges and discrete tax items -- provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations. | |||||||||||
| 6 Income tax adjustments reflect the difference between income taxes based on a non-GAAP tax rate and a forecasted annual GAAP tax rate. | |||||||||||
| 7Adjusted EBITDA is defined as earnings before interest expense, income taxes, depreciation, amortization of intangibles, stock-based compensation expense, gain on sale of assets, impairment of goodwill, acquisition-related costs, restructuring and other charges. 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. | |||||||||||
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