the TTM Investor Presentation

TTM Technologies, Inc. Investor Presentation
• January 2015
Disclaimer
Forward‐Looking Statements
Forward‐Looking Statements
Certain statements in this communication may constitute “forward‐looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to a variety of matters, including but not limited to: the operations of the businesses of TTM Technologies, Inc. (“TTM” or the “Company”) and Viasystems Group, Inc. (“Viasystems”) separately and as a combined entity; the expected benefits of the integration of the two companies; the combined company’s plans, objectives, expectations and intentions; and other statements that are not historical fact. These statements are , p
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made on the basis of the current beliefs, expectations and assumptions of the management of TTM and Viasystems regarding future events and are subject to significant risks and uncertainty. Statements regarding our expected performance in the future are forward‐looking statements. It is uncertain whether any of the events anticipated by the forward‐looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations and financial condition of the combined company. These forward‐looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward‐looking statements, including but not limited to: the ability of TTM to successfully integrate Viasystems’ operations, product lines, technology and employees and realize synergies and additional opportunities for growth from the proposed merger in a timely manner or at all; unknown, underestimated or undisclosed commitments or liabilities; the level of demand for the combined company’s products, which is subject to many factors, including uncertain global economic and industry conditions, demand for electronic products and printed circuit boards, and customers’ new technology and capacity requirements; TTM’s and Viasystems’ ability to (i) develop, deliver and support a broad range of products, expand their markets and develop new markets, (ii) timely align their cost structures with business conditions, and (iii) attract, motivate and retain key employees; and developments beyond Viasystems’ or TTM’s control, including but not limited to, changes in domestic or gglobal economic conditions, competitive conditions and consumer preferences, adverse weather conditions or natural disasters,
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health concerns, international, political or military developments, and technological developments. Additional factors that may cause results to differ materially from those described in the forward‐looking statements are set forth in the Annual Report on Form 10‐K of TTM Technologies, Inc. for the year ended December 30, 2013, which was filed with the Securities and Exchange Commission (the “SEC”) on February 21, 2014, under the heading “Item 1A. Risk Factors” and in the Annual Report on Form 10‐K of Viasystems for the year ended December 31, 2013, which was filed with the SEC on February 14, 2014, under the heading “Item 1A. Risk Factors,” and in each company’s other filings made with the SEC available at the SEC’s website at www.sec.gov.
Neither TTM nor Viasystems undertakes any obligation to update any such forward‐looking statements to reflect any new information, subsequent events or circumstances, or otherwise, except as may be required by law. No Offer or Solicitation
This presentation is strictly confidential. The securities described in this presentation are being offered in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended, only to qualified institutional buyers under Rule 144A and outside the United States to non‐U.S. persons under Regulation S. These exemptions apply to offers and sales of securities that do not involve a public offering. In making your investment decision, you should rely only on the information contained in the offering memorandum relating to the securities described in this presentation. This presentation is not an offer to sell any securities and it is not soliciting an offer to buy any securities in any jurisdiction where the offer or sale is not permitted.
1
Disclaimer
Use of Non‐GAAP Financial Measures
Use of Non‐GAAP Financial Measures
In addition to the financial statements presented in accordance with U.S. GAAP, TTM and Viasystems use certain non‐GAAP financial measures, including “adjusted EBITDA.” The companies present non‐GAAP financial information to enable investors to see each company through the eyes of management and to provide better insight into its ongoing financial performance.
Adjusted EBITDA is defined as earnings before interest expense income taxes depreciation amortization of intangibles stock based compensation
Adjusted EBITDA is defined as earnings before interest expense, income taxes, depreciation, amortization of intangibles, stock‐based compensation expense, gain on sale of assets, asset impairments, restructuring, costs related to acquisitions, and other charges. For a reconciliation of adjusted EBITDA to net income, please see Appendix A at the end of this presentation. Adjusted EBITDA is not a recognized financial measure under U.S. GAAP, and does not purport to be an alternative to operating income or an indicator of operating performance. Adjusted EBITDA is presented to enhance an understanding of operating results and is not intended to represent cash flows or results of operations. The Boards of Directors, lenders and management of the companies use adjusted EBITDA primarily as an additional measure of operating performance for matters including executive compensation and competitor comparisons. The use of this non‐GAAP measure provides an indication of each company’s ability to service debt, and management considers it an i
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appropriate measure to use because of the companies’ leveraged positions. Adjusted EBITDA has certain material limitations, primarily due to the exclusion of certain amounts that are material to each company’s consolidated results of operations, such as interest expense, income tax expense, and depreciation and amortization. In addition, adjusted EBITDA may differ from the adjusted EBITDA calculations reported by other companies in the industry limiting its usefulness as a comparative measure
EBITDA calculations reported by other companies in the industry, limiting its usefulness as a comparative measure.
The companies use adjusted EBITDA to provide meaningful supplemental information regarding operating performance and profitability by excluding from EBITDA certain items that each company believes are not indicative of its ongoing operating results or will not impact future operating cash flows, which include stock‐based compensation expense, gain on sale of assets, asset impairments, restructuring, costs related to acquisitions, and other charges.
Data Used in This Presentation
Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
[[Third Party Information
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This presentation has been prepared by the Company and includes information from other sources believed by the Company to be reliable. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of any of the opinions and conclusions set forth herein based on such information. This presentation may contain descriptions or summaries of certain documents and agreements, but such descriptions or summaries are qualified in their entirety by reference to the actual documents or agreements. Unless otherwise indicated, the information contained herein speaks only as of the date hereof and is subject to change, completion or amendment without notice.]
2
TTM Differentiated Leadership Position
• A leading global PCB manufacturer ‐ $1.4 billion in revenue in 2013
• Broad product offering with a focus on advanced technology • Leader
Leader in Aerospace and Defense, networking and telecom, and in Aerospace and Defense networking and telecom and
advanced mobile devices • Healthy balance sheet and solid cash flow funding growth
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• Proposed acquisition of Viasystems expands end markets and customer base
3
13 Manufacturing Facilities
Deliver one‐stop manufacturing services United States
4
China
1
9
6
12 13
2
8
5
3
7
11
Aerospace/Defense
High Tech/
Quick‐Turn/High Mix
Focused Assembly
Volume Production
1
Stafford, CT
4
Chippewa Falls, WI
8
Shanghai, China
10
Dongguan – DMC
2
Santa Clara, CA
5
Santa Ana, CA
9
Stafford Springs, CT
11
Guangzhou – GME
3
San Diego, CA
6
Logan, UT
12
Shanghai – SME
7
Hong Kong – OPCM
Substrate
13 Shanghai ‐ SMST
Approximately 15,000 employees
4
10
Current Global Ranking
Top 10 World PCB Makers 2013
$ millions
Represents approximately 32% of 2013 total world PCB output
3500
3000
2,556 2500
2,205
2,205 2 163
2,163 2 136
2,136 2000
1,700 1,567 1,372 1500
1,370 1,315 1,180 1000
500
0
Nippon pp
Mektron
Young g
Poong
Zhen Dingg
Unimicron
SEMCO
Ibiden
Tripod
p
TTM
Sumitomo
Source: Prismark Partners ,February 2014
Leading Position in Growing Market Segments
• Core supplier to wide range of high‐end networking products addressing Core supplier to wide range of high end networking products addressing
•
•
5
increasing bandwidth demands
Key supplier in rapidly growing touch screen tablet business
Expanding position in smartphones
Expanding position in smartphones
Daeduck
World PCB Outlook
China
$B
SE Asia, S. Korea
Japan
$70 $60 $2.2 $3.0 $50 $40 $40.9
$40
9
$6.7 $30 $10.9 $20 $57.5
2018F ($bn))
($
14/18F CAGR
$2.0 $65.1
$2.9 $5.6 China
$26.3
$31.3
4.4%
SE Asia, S. Korea
$19.2
$23.3
4.9%
$23 3
$23.3 Japan
$6.8
$5.6
(4.7%)
Americas
$3.0
$2.9
(0.3%)
Europe
$2.2
$2.0
(2.5%)
World
$57.5
$65.1
3.2%
Europe
$6.8 $19.2 $11.3 $26.3 $10
$10 Region
g
2014F ($bn))
($
Americas
$31.3 $8.5 $
$3.6 $0 2000
2014 F
2018 F
Source: Prismark Partners – World PCB Report, April 2000, November 2014
• The worldwide PCB market is expected to grow approximately 3 percent through 2018 with the majority of growth occurring in Asia
• ~48% of the world PCB production will be generated from China/HK in 2018 6
Focused on Growth in Advanced Technology
PCB Product Types (% of Total Production Value)
World
40%
TTM
World PCB Growth:
2013‐2017 CAGR
Advanced Technologies
Rigid‐Flex
30%
20%
10%
Flex
4.6%
Microvia (HDI)
4.5%
Substrates
4.4%
8‐16 Mid
0%
8‐16 Mid
18+ High
Microvia Substrates Rigid‐Flex
(HDI)
Flex
1‐2 Sided
4‐6 Low
World
16%
13%
23%
12%
2%
15%
14%
5%
TTM
0%
1%
7%
26%
18%
33%
5%
10%
– Advanced HDI
– Rigid‐Flex
– Specialty Substrates
S i lt S b t t
7
3.5%
18+ High
2.7%
4 6 Low
4‐6 Low
2 5%
2.5%
1‐2 Sided
Source: Prismark Partners, November 2013; Company reports FY2013
• PCB Technologies
11.3%
• Product Examples
– Smartphones
– Touchpad Tablet PCs, Missile Systems & Flight Deck Electronics
– RF and Connectivity Modules, Memory, Sensor, Audio, Baseband & Application Processors
1.0%
TTM – Differentiated Technology Mix
Global PCB Makers (Product Focus)
Flex
Substrate
HDI
2%
DS Commodity
4‐6 Low
13%
5%
5%
12%
7%
20%
12%
8‐16 Mid
11%
18 + High
13%
TTM Technologies (Product Focus)
16%
18+ High
31%
8 – 16 Mid
10%
4 – 6 Low
30%
HDI
5%
Substrate
Flex / Rigid‐Flex
23%
18%
50%
30%
27%
100%
60%
10%
40%
30%
26%
Ni
Nippon Mektron
Zh Di
Zhen Ding
Flex Focus
Source: NTI Research, July 2013
8
Ibid
Ibiden
6%
3%
7%
8%
U i i
Unimicron
Ti d
Tripod
Vi
Viasystems
t
Diversified Product
Di
ifi d P d t
Mix
Substrate Focus
Volume Multilayer Focus
Advanced Technologies
70%
Diversified End Markets ‐ Full Year 2013
TTM Re en e
TTM Revenue
Medical / Industrial / Instrument
8%
Other
5%
Networking / Communication 32%
Aerospace & Defense
15%
End Market
End
Market
(PCB Growth Rates)
SAM SAM
$mm
2013 –– 2018 2013
2018
CAGR
Networking/Communications
$2,803
3% ‐ 6%
Computing/Storage/Peripherals
$4,117
5% ‐ 8%
Cellular Phone
$3,095
6% ‐ 10%
Aerospace/Defense
$1,022
1% ‐ 4%
Medical/Industrial/Instrument
$1,124
2% ‐ 6%
Other (Automotive & Consumer)
$1,878
2% ‐ 5%
Sources: BPA Feb 2014, Electronic Outlook Corporation Q4 2014, Prismark Partners Aug 2014, TechNavio 2013, Company estimates
Cellular Phone
Cellular
Phone
20%
Computing / Storage / Peripherals
20%
2013 Net Sales $1,368mm
9
Viasystems Acquisition Summary
September 21, 2014
TTM Technologies, Inc definitive agreement to acquire 100% of Viasystems Group, Inc
• Acquisition of 100% of Viasystems (VIAS) outstanding shares
• VIAS will receive $11.33 per share in cash and 0.706 shares of TTM stock for each VIAS share
• Implied enterprise value of approximately $888 million¹
• TTM shareholders will own ~ 84% of the common stock of the combined company
TTM shareholders will own ~ 84% of the common stock of the combined company
• VIAS’ shareholders approved the transaction on December 16, 2014
• Transaction expected to close 1H2015 after regulatory approvals
• TTM has fully committed financing for the transaction
• Combined LTM Sept‐14 revenue and Adjusted EBITDA of $2.5 billion and $359² million 1
2
Implied enterprise value adjusted for $ 7mm of Viasystems Guang hou fire settlement expected to be received in Q4 0 4
Implied enterprise value adjusted for $27mm of Viasystems Guangzhou fire settlement expected to be received in Q4 2014
Assumes run‐rate $55mm of synergies and excludes costs to achieve such synergies and taxes. Tax impact expected to be minimal due to existing NOLs
10
Strategic rationale
End market and customer diversification
• Introduces Automotive segment – 15% of total combined FY2013 sales
• Complementary presence in Networking/Telecom, MII and A&D
Complementary global footprint and capabilities
• Operational excellence and expertise in key technologies
Differentiated market leader with compelling technology
with compelling technology
Significant cost synergies
Significant cost synergies
Enhanced operational team
11
• Outstanding global blue‐chip customers
• Combined FY2013 revenue of $2.5 billion
• Creates one of the world
Creates one of the world’ss largest and most diversified PCB manufacturers largest and most diversified PCB manufacturers
• $55M run‐rate cost synergies targeted in first year after close
• Reductions in duplicative costs
• Highly‐skilled combined company management team
• Extensive experience and relationships in the PCB industry
Increases End Market Diversification
2013 revenue by end market1
TTM
Viasystems
Other (mostly Consumer) Aerospace/
Defense
3%
15%
Networking/
Communications
32%
Automotive
2%
Networking/
Communications
27%
Aerospace/
Defense
11%
Computing/
Storage/
Peripherals
20%
2013 sales = $1,368mm
Other
2%
Aerospace/
Defense
13%
Networking/
Communications
30%
Automotive
15%
Automotive
30%
Cellular Phones
20%
Medical/
d l/
Industrial/
Instrumentation
8%
Combined
Medical/
d l/
Industrial/
Instrumentation
25%
Computing/
Storage/
Peripherals
7%
2013 sales = $1,171mm
Medical/
d l/
Industrial/
Instrumentation
16%
Cellular Phones
11%
Computing/
Storage/
Peripherals
14%
2013 combined sales = $2,539mm
Note: TTM and Viasystems end market breakdown reclassified for illustrative purposes
1 Viasystems end market categorization was developed by TTM based on information obtained during the due diligence process. See Slide 12 for historical Viasystems presentation of end markets
Combination reduces impact of seasonality
12
Adds High Growth Automotive End Market
PCB usage ‐ automotive electronics ($ billions)
Auto shipment (millions units)
88.0
$5.8
85.7
83.5
$4.7
79.7
$3.6
$3.9
$4.1
74.1
2010
2011
2012
2013E
2014E
2010
2011
2012
2013E
Source: NTI Digest, Aug 2014 & Navigant Research, 2Q 2014; TechNavio Analysis
Advantages of Automotive End Market
Forecasted strong unit growth
• Content per vehicle increasing
• Viasystems is a leader in core automotive requirements
• Creates opportunities for TTM’s advanced technology
•
N t M k t it f f l ffi i
Note: Market units for fuel efficiency, safety, informatics applications and ECU. Market value for electronic devices such as
f t i f
ti
li ti
d ECU M k t l f
l t i d i
h semiconductors or connectors.
i d t
t
Source: TTM company data, Wards, Anfavea, AEB, JAMA, JAPA, CAAM, SIAM, GAIKINDO, TMT, TSR, Marklines, Gartner, JEITA, Bishop, Citi Research estimates
13
2014E
Improved Customer Diversification
2013 revenue contribution by customer
TTM
Viasystems
Top 5 Customers
41%
Combined
Top 5 Customers
27%
Top 5 Customers
31%
Other
59%
Other
69%
Other
73%
Top 5 Customers
Length of relationship
Top 5 Customers
Length of relationship
Top 5 Customers
Length of relationship
Apple
Apple > 10 years
> 10 years
Alcatel‐Lucent
> 10 years
> 10 years
Apple
> 10 years
> 10 years
Cisco > 10 years
Autoliv
> 10 years
Bosch
> 10 years
Ericsson > 10 years
Bosch
> 10 years
Cisco
> 10 years
Huawei
> 10 years
Continental
> 10 years
GE
> 10 years
Juniper > 10 years
GE
> 10 years
Huawei
> 10 years
Over 1,000 customers
Note: Customer names ordered alphabetically
14
Over 1,000 customers
Creates a Leading Global Player
2013 Top 10 world PCB manufacturers by revenue ($ millions)
4,000
,
Top 10 represent ~34% of 2013 total world PCB output
Top 10 represent ~34% of 2013 total world PCB output
2013 Global PCB output of ~$55bn
2013 Global PCB output of ~$55bn
3,500
Combined TTM + Viasystems: 5% (TTM #8, VIAS #13)
3,000
2,500
$2,556
$2,539
$2,205
$2,163
$2,136
2 000
2,000
5%
$1,700
1,500
$1,567
TTM
VIAS
3%
2%
4%
$1,372
$1,315
4%
$1,180
4%
1,000
3%
3%
2%
2%
2%
500
0
Nippon
TTM + Mektron Viasystems
Young
Poong
Zhen Ding Unimicron
SEMCO
Ibiden
Tripod
Sumitomo Daeduck
Others 66%
Note: Nippon Mektron is the largest PCB manufacturer based on 2013 revenue, however, its products primarily include flex. The combined company will be the largest diversified PCB manufacturer in the world
Source: Prismark Partners; TTM and Viasystems filings
●
The top 20 PCB providers comprise less than 50% of market share in the PCB industry
●
Over $28bn of PCB revenue is generated by companies with less than $700mm of annual revenue
●
TTM and Viasystems have complementary positions in Medical; Industrial & Instrumentation; Networking & Communications; and TTM
and Viasystems have complementary positions in Medical; Industrial & Instrumentation; Networking & Communications; and
Aerospace & Defense segments
●
TTM is a leading advanced technology supplier to the rapidly growing smartphone segment
15
Strategic Initiatives
Comprehensive integration planning for Viasystems acquisition
Continued focus on delivering advanced technology to broad base of
customers across diverse end markets
Drive operational excellence through global best practice sharing,
yield improvement and rapid new product ramps
Manage balance sheet for growth and risk
- use free cash flow to deleverage the balance sheet post acquisition
16
Financial Overview
17
17
TTM Operating Performance
Gross margin1
Revenue
Asia‐Pacific ($mm)
North America ($mm)
$1,429
$1,349
$1,368
$566
$509
$521
$863
$839
$847
2011
2012
2013
Gross profit ($mm)
21.2%
$302
2011
Adjusted EBITDA2
Adj. EBITDA ($mm)
18.1%
$258
$191
16.8%
16.0%
$226
$219
2012
2013
Non‐GAAP EPS3
Adj. EBITDA margin
14.1%
Gross margin
Non‐GAAP EPS ($)
$1.52
13.3%
$181
$0.85
$0.62
2011
1 Adjusted
2012
2013
2011
2012
2013
for stock-based compensation
Adjusted EBITDA is defined as earnings before interest expense, income taxes, depreciation, amortization of intangibles, stock-based compensation
expense, asset impairments, restructuring and other infrequent items
3 Adjusted for amortization of intangibles
intangibles, stock
stock-based
based compensation expense
expense, non-cash
non cash interest expense
expense, asset impairments,
impairments restructuring
and other infrequent items
Note: Refer to reconciliations in Appendix
2
18
18
TTM Non‐GAAP Income Statement¹
$ Millions (except where noted)
Asia Pacific
North America
Total Revenue
Gross Profit
Operating Income
TTM Technologies Net Income
Earnings Per Share
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
$201.8
$201
8
123.6
325.4
$208.3
$208
3
129.7
338.0
$206.1
$206
1
132.6
338.7
$231.2
$231
2
134.9
366.1
$165.3
$165
3
126.6
291.9
$166.0
$166
0
131.6
297.6
$214.2
$214
2
131.1
345.3
51.0
48.7
48.7
70.5
38.8
38.8
49.3
15 7%
15.7%
14 4%
14.4%
14 4%
14.4%
19 2%
19.2%
13 3%
13.3%
13 0%
13.0%
14 3%
14.3%
17.3
15.3
17.1
34.0
8.8
9.2
17.9
5.3%
4.5%
5.1%
9.3%
3.0%
3.1%
5.2%
9.8
7.7
11.6
22.1
1.2
3.9
11.0
3.0%
2.3%
3.4%
6.0%
0.4%
1.3%
3.2%
$0.12
$0.09
$0.14
$0.27
$0.01
$0.05
$0.13
Target Model
Annual Growth
19%
10%
($ per Diluted Share)
Adjusted EBITDA
Adjusted Operating Cash Flow
1
41.5
39.1
42.3
58.4
29.1
32.8
43.6
12.7%
11.6%
12.5%
16.0%
10.0%
11.0%
12.6%
10.4
58.6
(9.6)
39.6
46.7
(11.8)
43.8
3.2%
17.3%
-2.8%
10.8%
16.0%
-4.0%
12.7%
Non-GAAP results add back amortization of intangibles, stock-based compensation expense, non-cash interest expense, acquisition-related, asset impairments, restructuring
and other infrequent
q
items as well as the associated tax impact
p
of these items and out of p
period tax items. Adjusted
j
EBITDA is defined as earnings
g before interest expense,
p
income taxes, depreciation, amortization of intangibles, stock-based compensation expense, acquisition-related, asset impairments, restructuring and other infrequent items.
Adjusted operating cash flow adds back payment of accreted interest on convertible senior notes.
19
19
TTM Balance Sheet Highlights
($ in Millions)
December 30, 2013
September 29, 2014
Assets
Cash and Cash Equivalents
Accounts and Notes Receivable, Net
Inventories
Property Plant and Equipment,
Property,
Equipment Net
All Other Assets
$330.6
277.1
138.1
810 7
810.7
117.1
$248.7
270.3
151.6
793 7
793.7
97.1
$1,673.6
$1,561.4
192.4
203.7
370.0
202.2
182.0
226.7
273.8
169.0
Total Liabilities
968.3
851.5
Total Equity
705.3
709.9
$1 673 6
$1,673.6
$1 561 4
$1,561.4
Total Assets
Li biliti and
Liabilities
d Equity
E it
Accounts Payable
Convertible Senior Notes, Net
Debt
All Other Liabilities
Total Liabilities and Equity
20
20
Investment Summary
Well positioned in high growth segments of the PCB market
A market leader in advanced technology PCBs globally
Healthy balance sheet and solid cash flow funding growth
Viasystems transaction enables opportunities for end market and
customer expansion as well as EPS accretion
21
21
Appendix
22
Non‐GAAP Income Statement¹
$ Millions (except where noted)
Asia Pacific
North America
Total Revenue
Gross Profit
Operating Income
TTM Technologies
T h l i Net
N t Income
I
Earnings Per Share ($ per diluted share)
Adjusted EBITDA
Adjusted Operating Cash Flow
1
2011
2012
2013
$862.7
$862
7
565.9
1,428.6
$839.3
$839
3
509.4
1,348.7
$847.4
$847
4
520.8
1,368.2
302 3
302.3
226 1
226.1
218 9
218.9
21.2%
16.8%
16.0%
179.9
101.4
83.8
12.6%
7.5%
6.1%
124 6
124.6
69 8
69.8
51 3
51.3
8.7%
5.2%
3.7%
1.52
0.85
0.62
258.3
190.6
181.3
18.1%
14.1%
13.3%
179.3
182.6
99.0
12 6%
12.6%
13 5%
13.5%
7 2%
7.2%
Non-GAAP results add back amortization of intangibles, stock-based compensation expense, non-cash interest expense, asset impairments, restructuring and other
infrequent items as well as the associated tax impact of these items and out of period tax items. Adjusted EBITDA is defined as earnings before interest expense,
income taxes, depreciation, amortization of intangibles, stock-based compensation expense, asset impairments, restructuring and other infrequent items. Adjusted
operating cash flow adds back payment of accreted interest on convertible senior notes.
23
23
Reconciliations
$ Millions (except where noted)
GAAP Gross Profit
2011
2012
2013
$301.3
$225.0
$217.8
Add back item:
Stock-based compensation
1.0
1.1
1.1
Non-GAAP Gross Profit
302.3
226.1
218.9
91.1
(142.0)
69.1
17.4
8.1
63.3
-
14.7
10.3
218.4
-
9.4
9.0
14.2
(17 9)
(17.9)
179.9
101.4
83.8
GAAP TTM Technologies Net Income (Loss)
41.9
(174.6)
21.9
Add back items:
Amortization of intangibles
Stock-based compensation
Non cash interest expense
Non-cash
Impairment and restructuring
Other infrequent items
Income tax effects
17.4
8.1
82
8.2
63.3
(14.3)
GAAP Operating Income (Loss)
Add back items:
Amortization of intangibles
Stock-based compensation
Impairment and restructuring
Oth infrequent
Other
i f
t items
it
Non-GAAP Operating Income
Non-GAAP TTM Technologies Net Income
14.7
10.3
79
7.9
218.4
5.5
(12.4)
9.4
9.0
84
8.4
14.2
(7.2)
(4.4)
124.6
69.8
51.3
Non-GAAP EPS ($ per diluted share)
1.52
0.85
0.62
G
GAAP
Net Income (Loss)
(
)
47.2
(
(181.1)
)
23.9
26.1
26.5
17.4
69.7
8.1
63.3
12.7
25.8
14.7
84.3
10.3
223.9
15.9
24.0
9.4
92.1
9.0
(17.9)
24.9
Adjusted EBITDA
258.3
190.6
181.3
Operating Cash Flow
179.3
182.6
71.3
-
-
27.7
179.3
182.6
99.0
Add back items:
Income tax provision
Interest expense
Amortization of intangibles
Depreciation expense
Stock-based compensation
Gain on sale of assets
Impairments, restructuring and other infrequent items
Add back item:
Payment of accreted interest on convertible senior notes
Adjusted Operating Cash Flow
24
Reconciliations
$ Millions (except where noted)
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
$50.7
$48.5
$48.4
$70.2
$38.5
$38.6
$49.1
0.3
0.2
0.3
0.3
0.3
0.2
0.2
Non-GAAP Gross Profit
51.0
48.7
48.7
70.5
38.8
38.8
49.3
GAAP Operating Income (Loss)
12.7
28.3
(1.2)
29.3
4.5
3.2
12.3
2.3
2.6
(17.9)
-
2.3
1.9
14.1
2.4
2.2
0.1
2.2
2.1
(0.0)
2.2
1.9
1.9
2.0
2.0
1.6
0.0
17.3
15.3
17.1
34.0
8.8
9.2
17.9
GAAP TTM Technologies Net Income (Loss)
5.2
13.1
(7.7)
11.3
(3.8)
(3.1)
7.7
Add back items:
Amortization of intangibles
Stock-based compensation
Non-cash interest expense
Gain on sale of assets
Acquisition-related costs
Impairments, restructuring and other infrequent items
Income taxes
2.3
2.3
2.1
(2.1)
2.3
2.6
2.1
(17.9)
5.5
2.3
1.9
2.1
14.1
(1.1)
2.2
2.1
2.6
0.5
(2.4)
2.2
1.9
2.5
1.9
(1.6)
2.0
2.0
2.5
1.6
0.0
(4.8)
Non-GAAP TTM Technologies Net Income
9.8
7.7
11.6
22.1
1.2
3.9
11.0
$0.12
$0.09
$0.14
$0.27
$0.01
$0.05
$0.13
66
6.6
13 7
13.7
(7 7)
(7.7)
11 3
11.3
(3 8)
(3.8)
(3 1)
(3.1)
77
7.7
0.8
6.3
2.3
23.2
2.3
-
9.4
5.9
2.3
23.1
2.6
(17.9)
-
3.4
5.8
2.3
22.5
1.9
14.1
2.4
6.0
2.4
23.3
2.2
10.8
(1.8)
6.2
2.2
23.7
2.1
0.5
0.5
5.9
2.2
23.4
1.9
1.9
0.4
6.0
2.0
23.9
2.0
1.6
0.0
Adjusted EBITDA
41.5
39.1
42.3
58.4
29.1
32.8
43.6
Operating Cash Flow
10.4
58.6
(9.6)
11.9
45.4
(11.8)
43.8
-
-
27.7
1.3
0.0
0.0
10.4
58.6
39.6
46.7
(11.8)
43.8
GAAP Gross Profit
Add back item: stock-based compensation
Add back items:
Amortization of intangibles
Stock-based compensation
Gain on sale of assets
Acquisition-related costs
Impairments and restructuring charges
Non-GAAP Operating Income
Non-GAAP EPS ($ per diluted share)
GAAP Net
N t Income
I
(Loss)
(L
)
Add back items:
Income tax provision (benefit)
Interest expense
Amortization of intangibles
Depreciation expense
Stock-based compensation
p
Gain on sale of assets
Acquisition-related costs
Impairments, restructuring and other infrequent items
Add back item: payment of accreted interest on convertible sr. notes
Adjusted Operating Cash Flow
25
2.3
2.3
-
-
(9.6)
2.4
2.2
2.1
10.8
(6.7)