TTM Technologies, Inc. Reports Fiscal First Quarter 2019 Results

RECONCILIATIONS¹
				First Quarter						Fourth Quarter
					2019			2018			2018
	Non-GAAP gross profit reconciliation²:
		GAAP gross profit		$	88,685		$	88,678		$	122,632
		Add back item:
			Amortization of definite-lived intangibles		1,179			-			1,180
			Stock-based compensation		705			529			766
		Non-GAAP gross profit		$	90,569		$	89,207		$	124,578
		Non-GAAP gross margin			14.6%			13.4%			17.5%

	Non-GAAP operating income reconciliation³:
		GAAP operating income		$	17,490		$	30,001		$	42,800
		Add back items:
			Amortization of definite-lived intangibles		18,005			5,861			18,902
			Stock-based compensation		3,926			3,622			5,733
			Restructuring, acquisition-related, and other charges		1,103			5,034			6,104
		Non-GAAP operating income		$	40,524		$	44,518		$	73,539
		Non-GAAP operating margin			6.5%			6.7%			10.3%

	Non-GAAP net income and EPS reconciliation ⁴ :
		GAAP net income (loss)		$	(3,252	)	$	10,097		$	52,482
		Add back items:
			Amortization of definite-lived intangibles		18,005			5,861			18,902
			Stock-based compensation		3,926			3,622			5,733
			Non-cash interest expense		3,868			3,054			4,384
			(Gain) on sale of Viasource		(3,071	)		-			-
			Restructuring, acquisition-related, and other charges		1,103			5,263			6,104
			Income taxes ⁵		(4,150	)		108			(32,614	)
		Non-GAAP net income		$	16,429		$	28,005		$	54,991
		Non-GAAP earnings per diluted share		$	0.16		$	0.26		$	0.52

	Non-GAAP diluted number of shares ⁶ :
		Diluted shares			105,614			107,517			131,533
		Dilutive effect of convertible debt			-			-			(25,939	)
		Non-GAAP diluted number of shares			105,614			107,517			105,594

	Adjusted EBITDA reconciliation ⁷ :
		GAAP net income (loss)		$	(3,252	)	$	10,097		$	52,482
		Add back items:
			Income tax provision (benefit)		(1,476	)		5,050			(29,858	)
			Interest expense		21,688			13,747			22,533
			Amortization of definite-lived intangibles		18,005			5,861			18,902
			Depreciation expense		41,602			39,775			41,543
			Stock-based compensation		3,926			3,622			5,733
			(Gain) on sale of Viasource		(3,071	)		-			-
			Restructuring, acquisition-related, and other charges		1,103			5,034			6,104
		Adjusted EBITDA		$	78,525		$	83,186		$	117,439
		Adjusted EBITDA margin			12.7%			12.5%			16.5%

	Free cash flow reconciliation:
		Operating cash flow			36,924			(14,261	)		151,768
		Capital expenditures, net			(28,446	)		(42,139	)		(33,671	)
		Free cash flow		$	8,478		$	(56,400	)	$	118,097

	¹ This 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.

	² Non-GAAP gross profit and gross margin measures exclude amortization of intangibles, stock-based compensation expense and inventory markup.

	³ Non-GAAP operating income and operating margin measures exclude amortization of intangibles, stock-based compensation expense, gain on sale of assets, inventory markup, acquisition-related costs, restructuring and other charges.

	⁴ 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, stock-based compensation expense, non-cash interest expense on debt (before consideration of capitalized interest), gain on sale of assets, inventory markup, 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.

	⁵ Income tax adjustments reflect the difference between income taxes based on a non-GAAP tax rate and a forecasted annual GAAP tax rate.

	⁶ Non-GAAP diluted number of shares used in computing non-GAAP earnings per share excludes the dilutive effect of convertible debt.

	⁷ Adjusted EBITDA is defined as earnings before interest expense, income taxes, depreciation, amortization of intangibles, stock-based compensation expense, gain on sale of assets, inventory markup, 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 m e asure of operating results in accordance with accounting principles generally accepted in the United States of America.

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