TTM pays down almost $145 million of $600 million acquisition debt

By Devika Patel

Knoxville, Tenn., June 11 – TTM Technologies Inc. has paid down nearly $145 million of $600 million of debt incurred for a 2018 acquisition through improved cash flow.

“We’ve had some substantial improvements in financial results over the last five years,” executive vice president and chief financial officer Todd B. Schull said at the Stifel 2019 Cross Sector Insight Conference in Boston on Tuesday.

“Revenue’s grown nicely. We’ve doubled our operating margin. We’ve quadrupled our earnings per share, and that result is really driving improved cash flow.

“Last year, we were down slightly, primarily as a result of M&A expense and costs associated with doing the deal that we did to acquire Anaren [Inc.] about a year ago,” he said.

The company is using its improved cash flow for debt repayment.

“All of that cash flow, we’re using to drive down our debt.” Schull said.

“When we did the acquisition of Anaren back in April of 2018, we incurred an incremental $600 million of debt.

“That got our leverage up well over 3x on a net debt basis.

“We’ve since repaid almost $145 million of that $600 million, so almost 25% of that debt already, and our goal is to drive that down to, on a net debt basis, a 2x within one to two years.

“We’re very focused on driving that down.

“We made several incremental debt payments over the course of the year.”

In December 2017, the company announced that it planned to acquire Anaren for about $775 million in cash. The acquisition was completed in April 2018.

TTM is a Costa Mesa, Calif.-based printed circuit board manufacturer.

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