CTS Announces First Quarter 2018 Results Strong sales and earnings growth LISLE, Ill., April 26, 2018 (GLOBE NEWSWIRE) -- CTS Corporation (NYSE:CTS) today announced first quarter 2018 results. * Sales were $113.5 million, up 13.4% year-over-year. Sales to automotive customers increased 11.9%, and sales of electronic components increased 16.2%. The Noliac acquisition, completed in May 2017, added $2.6 million of sales in the first quarter of 2018. * Net earnings were $11.5 million or $0.34 per diluted share compared to $8.5 million or $0.25 per diluted share in the first quarter of 2017. * Adjusted EPS was $0.34 per diluted share, up 31% from $0.26 in the first quarter of 2017. * Total Booked Business was $1.762 billion at the end of the first quarter of 2018, an increase of $25 million from the fourth quarter of 2017. “We had a good start to 2018, delivering strong sales and earnings growth, and increasing total booked business,” said Kieran O’Sullivan, CEO of CTS Corporation. “We are pleased that our revenue growth strategies are starting to gain traction, and we see continued opportunities to improve operational results.” 2018 Guidance Management reaffirms its prior guidance. Full year 2018 sales are expected to be in the range of $435 to $455 million. Adjusted earnings per diluted share for 2018 are expected to be in the range of $1.32 to $1.44. Conference Call As previously announced, the Company has scheduled a conference call at 11:00 a.m. (EDT) today to discuss the first quarter financial results. The dial-in number is 866-564-7440 (719-325-2120, if calling from outside the U.S.). The passcode is 970409. There will be a replay of the conference call from 2:00 p.m. (EDT) today through 2:00 p.m. (EDT) on Thursday, May 10, 2018. The telephone number for the replay is 866-375-1919 (719-457-0820, if calling from outside the U.S.). The replay passcode is 8486171. A live audio webcast of the conference call will be available and can be accessed directly from the Investors section of the website of CTS Corporation at www.ctscorp.com. About CTS CTS (NYSE:CTS) is a leading designer and manufacturer of products that Sense, Connect, and Move. The company manufactures sensors, actuators, and electronic components in North America, Europe, and Asia, and provides engineered products to customers in the aerospace/defense, industrial, medical, telecommunications/IT, and transportation markets. For more information, visit www.ctscorp.com. Safe Harbor This document contains statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, any financial or other guidance, statements that reflect our current expectations concerning future results and events, and any other statements that are not based solely on historical fact. Forward-looking statements are based on management's expectations, certain assumptions and currently available information. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on various assumptions as to future events, the occurrence of which necessarily are subject to uncertainties. These forward-looking statements are made subject to certain risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from those presented in the forward-looking statements. Many of these, and other risks and uncertainties, are discussed in further detail in Item 1A. of CTS’ Annual Report on Form 10-K. We undertake no obligation to publicly update our forward-looking statements to reflect new information or events or circumstances that arise after the date hereof, including market or industry changes. Contact Ashish Agrawal Vice President and Chief Financial Officer CTS Corporation 4925 Indiana Avenue Lisle, IL 60532 USA Telephone: +1 (630) 577-8800 E-mail: email@example.com CTS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED (In thousands of dollars, except per share amounts) Three Months Ended March 31, March 31, 2018 2017 Net sales $ 113,530 $ 100,154 Cost of goods sold 75,097 65,930 Gross Margin 38,433 34,224 Selling, general and administrative expenses 17,372 15,248 Research and development expenses 6,507 6,003 Restructuring charges 1,195 777 Operating earnings 13,359 12,196 Other income (expense): Interest expense (541 ) (684 ) Interest income 482 253 Other income, net 2,004 460 Total other income 1,945 29 Earnings before income taxes 15,304 12,225 Income tax expense 3,756 3,741 Net earnings $ 11,548 $ 8,484 Earnings per share: Basic $ 0.35 $ 0.26 Diluted $ 0.34 $ 0.25 Basic weighted – average common shares outstanding: 32,975 32,802 Effect of dilutive securities 540 560 Diluted weighted – average common shares outstanding 33,515 33,362 Cash dividends declared per share $ 0.04 $ 0.04 CTS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of dollars) (Unaudited) March 31, December 31, 2018 2017 ASSETS Current Assets Cash and cash equivalents $ 121,383 $ 113,572 Accounts receivable, net 69,948 70,584 Inventories, net 37,941 36,596 Other current assets 13,266 12,857 Total current assets 242,538 233,609 Property, plant and equipment, net 90,685 88,247 Other Assets Prepaid pension asset 58,494 57,050 Goodwill 71,057 71,057 Other intangible assets, net 65,246 66,943 Deferred income taxes 18,428 20,694 Other 2,244 2,096 Total other assets 215,469 217,840 Total Assets $ 548,692 $ 539,696 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities Accounts payable $ 51,937 $ 49,201 Accrued payroll and benefits 8,497 11,867 Accrued liabilities 42,027 41,344 Total current liabilities 102,461 102,412 Long-term debt 74,000 76,300 Long-term pension obligations 7,148 7,201 Deferred income taxes 3,398 3,802 Other long-term obligations 5,953 6,176 Total Liabilities 192,960 195,891 Commitments and Contingencies Shareholders’ Equity Common stock 305,722 304,777 Additional contributed capital 39,681 41,084 Retained earnings 430,388 420,160 Accumulated other comprehensive loss (76,803 ) (78,960 ) Total shareholders’ equity before treasury stock 698,988 687,061 Treasury stock (343,256 ) (343,256 ) Total shareholders’ equity 355,732 343,805 Total Liabilities and Shareholders’ Equity $ 548,692 $ 539,696 CTS CORPORATION AND SUBSIDIARIES OTHER SUPPLEMENTAL INFORMATION Earnings Per Share The following table reconciles GAAP diluted earnings per share to adjusted diluted earnings per share for the Company: Additional Information The following table includes other financial information not presented in the preceding financial statements. Three Months Ended March 31, 2018 March 31, 2017 GAAP diluted earnings per share $ 0.34 $ 0.25 Tax affected adjustments to reported diluted earnings per share: Restructuring charges 0.03 0.02 Foreign currency gains (0.04 ) (0.01 ) Non-recurring costs of tax improvement 0.01 — initiatives Adjusted diluted earnings per share $ 0.34 $ 0.26 Additional Information The following table includes other financial information not presented in the preceding financial statements. Three Months Ended March 31, 2018 March 31, 2017 Depreciation and amortization expense $ 5,483 $ 4,708 Stock-based compensation expense $ 923 $ 880 Non-GAAP Financial Measures Adjusted earnings per share is a non-GAAP financial measure. The most directly comparable GAAP financial measure is diluted earnings per share. CTS adjusts for these items because they are discrete events, which have a significant impact on comparable GAAP financial measures and could distort an evaluation of our normal operating performance. CTS uses an adjusted earnings per share measure to evaluate overall performance, establish plans and perform strategic analysis. Using this measure avoids distortion in the evaluation of operating results by eliminating the impact of events which are not related to normal operating performance. Because this measure is based on the exclusion or inclusion of specific items, they may not be comparable to measures used by other companies which have similar titles. CTS' management compensates for this limitation when performing peer comparisons by evaluating both GAAP and non-GAAP financial measures reported by peer companies. CTS believes that this measure is useful to its management, investors and stakeholders in that it: * provides a meaningful measure of CTS' operating performance, * reflects the results used by management in making decisions about the business, and * helps review and project CTS' performance over time. We recommend that investors consider both actual and adjusted measures in evaluating the performance of CTS with peer companies. Primary Logo
CTS Announces First Quarter 2018 Results
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