TTM Technologies, Inc. (TTMI) Bundle
A Brief History of TTM Technologies, Inc.
Company Overview
Company Overview
TTM Technologies, Inc. is a leading manufacturer of printed circuit boards (PCBs) and radio frequency (RF) components, with operations across North America and Asia. The company has established itself as a key player in the electronics manufacturing sector, particularly in markets such as aerospace, defense, automotive, and data center computing.
Financial Performance
As of September 30, 2024, TTM Technologies reported net sales of $1.791 billion for the first three quarters of 2024, an increase of 7.7% from $1.664 billion in the same period of 2023. This growth was primarily driven by the PCB segment, which saw sales rise to $1.765 billion, up from $1.634 billion year-over-year.
Income Statement Highlights
| Period | Net Income (Loss) | Earnings Per Share (EPS) | Revenue | Gross Margin |
|---|---|---|---|---|
| Q3 2024 | $14.311 million | $0.14 | $616.538 million | 21.1% |
| Q3 2023 | ($37.066 million) | ($0.36) | $572.582 million | 19.8% |
| Three Quarters 2024 | $51.129 million | $0.50 | $1.791 billion | 19.6% |
| Three Quarters 2023 | ($36.056 million) | ($0.35) | $1.664 billion | 17.9% |
Balance Sheet Overview
As of September 30, 2024, TTM Technologies reported total assets of $3.419 billion, with total liabilities amounting to $1.908 billion. The company had a total stockholders' equity of $1.511 billion. Long-term debt was recorded at $916.3 million, consisting of:
- $496.5 million in Senior Notes due March 2029
- $339.8 million under the Term Loan Facility
- $80 million under the Asia Asset-Based Lending Credit Agreement
Cash Flow Analysis
In the first three quarters of 2024, TTM Technologies generated $150.8 million in cash flow from operating activities, compared to $139.8 million in the same period of 2023. The increase was attributed to higher net income and improved working capital management.
Shareholder Equity and Stock Performance
In 2024, TTM Technologies initiated a share repurchase program with a total authorization of $100 million. As of September 30, 2024, the company had repurchased 2 million shares at a cost of $34.5 million. The remaining repurchase capacity was approximately $41.1 million.
Market Performance
TTM Technologies' stock has experienced volatility, reflecting broader market trends and specific operational challenges. As of September 30, 2024, the company had a market capitalization of approximately $1.54 billion.
Key Economic Indicators
The demand for TTM Technologies' products is closely tied to trends in the broader electronics market. As of 2024, the global PCB market is projected to grow at a CAGR of approximately 4.8%, driven by increasing demand in sectors such as automotive electronics and consumer electronics.
Conclusion
TTM Technologies has shown resilience with a solid financial performance in 2024, despite past challenges. The company's strategic focus on growth markets and effective management of operations positions it well for future opportunities.
A Who Owns TTM Technologies, Inc. (TTMI)
Major Shareholders
As of the end of 2024, TTM Technologies, Inc. (TTMI) has several key shareholders that hold significant stakes in the company. The ownership distribution is as follows:
| Shareholder | Number of Shares Owned | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 10,000,000 | 8.8% |
| The Vanguard Group, Inc. | 9,500,000 | 8.4% |
| Dimensional Fund Advisors LP | 7,000,000 | 6.2% |
| State Street Corporation | 6,500,000 | 5.7% |
| Invesco Ltd. | 5,000,000 | 4.4% |
Institutional Ownership
Institutional investors play a substantial role in the ownership structure of TTM Technologies. As of 2024, institutional ownership is approximately 70%, reflecting strong interest from large investment firms.
Insider Ownership
Insider ownership, which includes executives and board members, is also significant. The following details the holdings of key insiders:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Tom Edman | CEO | 1,500,000 | 1.3% |
| Mark M. McNally | CFO | 750,000 | 0.7% |
| David W. Johnson | Chairman | 500,000 | 0.4% |
Recent Changes in Ownership
In the last fiscal year, TTM Technologies has experienced changes in its shareholder composition, including the following:
- BlackRock increased its stake by 2%.
- Vanguard reduced its holdings by 1%.
- Dimensional Fund Advisors has maintained its position without significant changes.
Stock Performance
As of December 2024, TTM Technologies’ stock price has shown volatility, with a closing price of $15.50 per share, reflecting a year-to-date increase of 12%.
Market Capitalization
The market capitalization of TTM Technologies, Inc. as of the end of 2024 is approximately $1.76 billion.
Future Projections
Analysts predict continued growth for TTM Technologies, with a projected earnings per share (EPS) of $1.20 for the fiscal year 2025.
TTM Technologies, Inc. (TTMI) Mission Statement
Overview
TTM Technologies, Inc. aims to deliver innovative solutions that meet the needs of its customers in the printed circuit board (PCB) and RF components markets. The company emphasizes quality, reliability, and customer satisfaction as core components of its mission.
Financial Performance
As of September 30, 2024, TTM Technologies reported total net sales of $1,791.8 million, an increase of 7.7% from $1,663.5 million in the same period of 2023. This growth was driven largely by the PCB segment, which saw net sales rise to $1,764.7 million from $1,634.3 million year-over-year.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Net Sales | $616.5 million | $572.6 million | $1,791.8 million | $1,663.5 million |
| Gross Margin | 21.1% | 19.8% | 19.6% | 17.9% |
| Net Income (Loss) | $14.3 million | $(37.1) million | $51.1 million | $(36.1) million |
| Earnings Per Share (Basic) | $0.14 | $(0.36) | $0.50 | $(0.35) |
Market Segments
TTM Technologies serves a variety of end markets, with the following distribution of net sales across key sectors for Q3 2024:
| End Market | Net Sales (Q3 2024) | Net Sales (Q3 2023) |
|---|---|---|
| Aerospace and Defense | $284.3 million | $255.6 million |
| Automotive | $85.0 million | $86.8 million |
| Data Center Computing | $119.3 million | $99.6 million |
| Medical/Industrial/Instrumentation | $86.2 million | $90.7 million |
| Networking | $40.0 million | $39.9 million |
Operational Efficiency
TTM Technologies recorded an increase in gross margin to 21.1% for Q3 2024, up from 19.8% in Q3 2023. This improvement was attributed to higher sales volume, particularly in the aerospace and defense and data center computing markets. The overall gross margin for the first three quarters of 2024 also improved to 19.6%, compared to 17.9% in the same period of 2023.
Assets and Liabilities
As of September 30, 2024, TTM Technologies reported total assets of $3,418.8 million and total liabilities amounting to $1,907.8 million.
| Category | Amount (in thousands) |
|---|---|
| Total Assets | $3,418,818 |
| Total Liabilities | $1,907,800 |
| Shareholders' Equity | $1,511,039 |
Future Outlook
TTM Technologies is positioned to leverage growth in its key markets. The company anticipates continued demand in aerospace and defense, as well as data center computing sectors, with expectations for revenue recognition on long-term contracts projected at $481,400 in remaining performance obligations.
How TTM Technologies, Inc. (TTMI) Works
Company Overview
TTM Technologies, Inc. (TTMI) operates as a leading manufacturer of printed circuit boards (PCBs) and radio frequency (RF) components, serving various industries including aerospace, defense, automotive, data centers, medical, industrial, and instrumentation.
Financial Performance
For the first three quarters of 2024, TTM Technologies reported total net sales of $1,791.8 million, an increase of 7.7% from $1,663.5 million in the same period of 2023. The PCB segment net sales were $1,764.7 million, up 8.0% from $1,634.3 million.
| Metric | 2024 (Q3) | 2023 (Q3) | Change (%) |
|---|---|---|---|
| Total Net Sales | $616.5 million | $572.6 million | +7.7% |
| PCB Segment Sales | $606.8 million | $563.7 million | +7.6% |
| RF&S Components Sales | $9.7 million | $8.9 million | +9.4% |
| Gross Margin | 21.1% | 19.8% | +1.3% |
| Net Income | $14.3 million | $(37.1) million | N/A |
Segment Performance
The revenue for the quarter ended September 30, 2024, was primarily driven by growth in the aerospace and defense, and data center computing sectors. The following table summarizes the disaggregated revenue by end markets:
| End Market | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Aerospace and Defense | $284.3 million | $255.6 million |
| Automotive | $85.0 million | $86.8 million |
| Data Center Computing | $119.5 million | $99.6 million |
| Medical/Industrial/Instrumentation | $86.8 million | $90.7 million |
| Networking | $40.9 million | $39.9 million |
Cost Structure
The overall gross margin for TTM increased to 21.1% for Q3 2024, compared to 19.8% in Q3 2023, driven by higher sales volumes and improved operational execution. The gross margin for the PCB segment was 21.9% for Q3 2024, up from 21.1%.
Operating Expenses
Operating expenses for the first three quarters of 2024 were $243.8 million, a decrease from $290.2 million in the same period of 2023. This includes:
- Selling and Marketing: $60.1 million
- General and Administrative: $124.8 million
- Research and Development: $23.9 million
Cash Flow and Liquidity
Cash flow provided by operating activities during the first three quarters of 2024 was $150.8 million, compared to $139.8 million in the same period of 2023. The company had cash and cash equivalents of $469.5 million as of September 30, 2024.
Debt and Financing
As of September 30, 2024, TTM Technologies had $916.3 million of outstanding debt, comprising:
- Senior Notes due March 2029: $496.5 million
- Term Loan Facility: $339.8 million
- Asia Asset-Based Lending Credit Agreement: $80.0 million
Share Repurchases
During the first three quarters of 2024, TTM repurchased 2.0 million shares for a total cost of $34.5 million. The remaining amount available for repurchase under the existing program is approximately $41.1 million.
Future Outlook
The company expects capital expenditures for 2024 to be in the range of $175 million to $195 million. The aggregate amount of transaction price allocated to remaining performance obligations for long-term contracts was $481.4 million as of September 30, 2024.
How TTM Technologies, Inc. (TTMI) Makes Money
Revenue Streams
TTM Technologies generates revenue primarily from the sale of printed circuit boards (PCBs) and engineered systems. For the first three quarters of 2024, total net sales amounted to $1,791.8 million, an increase of 7.7% from $1,663.5 million in the same period of 2023.
| Segment | Net Sales (2024 Q3) | Net Sales (2023 Q3) | Change (%) |
|---|---|---|---|
| PCB | $606.8 million | $563.7 million | 7.6% |
| RF&S Components | $9.7 million | $8.9 million | 9.4% |
| Total | $616.5 million | $572.6 million | 7.7% |
Market Demand
The increase in sales was largely driven by demand growth in the aerospace and defense sectors, as well as data center computing. For the quarter ended September 30, 2024, net sales in the aerospace and defense market were $284.3 million, while data center computing generated $119.5 million.
Cost Structure and Margins
TTM Technologies reported an overall gross margin of 21.1% for the third quarter of 2024, up from 19.8% in the third quarter of 2023. The gross margin for the PCB segment was 21.9%, while the RF&S Components segment saw a decrease to 50.4%.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Gross Margin (%) | 21.1% | 19.8% |
| PCB Gross Margin (%) | 21.9% | 21.1% |
| RF&S Components Gross Margin (%) | 50.4% | 56.4% |
Operating Expenses
Operating expenses for the first three quarters of 2024 totaled $21.7 million, with selling and marketing expenses comprising 3.4% of net sales. The total operating segment income was reported at $142.7 million.
Cash Flow and Investments
Cash flow provided by operating activities for the first three quarters of 2024 was $150.8 million, compared to $139.8 million in the same period of 2023. Total cash used in investing activities was $93.4 million, primarily for capital expenditures.
| Cash Flow Activity | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Operating Activities | $150.8 million | $139.8 million |
| Investing Activities | ($93.4 million) | ($46.1 million) |
| Financing Activities | ($38.2 million) | ($87.9 million) |
Customer Base and Market Focus
TTM Technologies serves a diverse range of end markets, with the largest customers accounting for 54% of net sales for the quarter ended September 30, 2024. The distribution of revenue by end markets for the third quarter of 2024 was as follows:
| End Market | Percentage of Net Sales |
|---|---|
| Aerospace and Defense | 46% |
| Automotive | 14% |
| Data Center Computing | 19% |
| Medical/Industrial/Instrumentation | 14% |
| Networking | 7% |
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Resources:
- TTM Technologies, Inc. (TTMI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of TTM Technologies, Inc. (TTMI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View TTM Technologies, Inc. (TTMI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.