Q3 2024 TTM Technologies Inc Earnings Call Transcript
Key Points
- TTM Technologies Inc (TTMI) delivered strong operating margin performance due to higher revenues, favorable mix, and outstanding operational execution.
- Revenues were above the mid-point of the guided range, marking the third consecutive quarter of year-on-year growth, driven by demand from aerospace and defense and data center computing end markets.
- The company achieved a book-to-bill ratio of 1.20, with aerospace and defense at 1.26 for the second consecutive quarter, indicating strong demand and a record program backlog of approximately $1.49 billion.
- TTM Technologies Inc (TTMI) is making strategic investments, including a new automated PCB manufacturing facility in Penang, Malaysia, and an expansion of advanced technology capability in Syracuse, New York.
- The company generated a healthy cash flow from operations of $65.1 million and maintained a solid balance sheet with a net debt to EBITDA leverage ratio of 1.4 times.
- Year-over-year declines were observed in the medical, industrial, instrumentation, and automotive end markets, partially offsetting revenue growth.
- The Penang facility has been a consistent drag on operating margins, impacting them by about 180 basis points, with break-even expected by mid-next year.
- Foreign exchange losses of $17.8 million impacted the financial results, primarily due to the devaluation of the US dollar against local currencies in China and Malaysia.
- The automotive end market remains challenged with continued inventory adjustments and soft demand, contributing to a decline in sales.
- The expansion in Syracuse is not expected to have a significant financial impact until fiscal 2026, with minimal P&L impact next year.
Good afternoon, and thank you for standing by. Welcome to the third quarter 2024 TTM Technologies earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded today, Wednesday, October 30, 2024.
Sameer Desai, TTM Vice President of Corporate Development and Investor Relations will now review the TTM's disclosure statement.
Thank you. Before we get started, I would like to remind everyone that today's call contains forward-looking statements, including statements related to TTM's future business outlook. Actual results could differ materially from these forward-looking statements due to one or more risks and uncertainties, including the risk factors we provide in our filings with the Securities and Exchange Commission, which we encourage you to review.
These forward-looking statements represent management's expectations and assumptions based on currently available information. TTM does not undertake any
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