Improved sales growth
CTS Corporation (NYSE: CTS) today announced second quarter 2017
results.
- Sales were $105.7 million, up 7.1%
year-over-year. Sales to automotive customers increased 5.6%, and
sales of electronic components increased 9.9%. The Noliac
acquisition, completed in May 2017, added $1.5 million of sales in
the second quarter of 2017. Organic sales of electronic components
increased 5.3%.
- Net earnings were $10.0 million or
$0.30 per diluted share compared to $14.5 million or $0.44 per
diluted share in the second quarter of 2016, which included a net
gain on the sale of the Company’s Canadian facility of $11.1
million or $0.21 per share.
- Adjusted EPS was $0.28 per diluted
share versus $0.26 in the second quarter of 2016.
- Total Booked Business was $1.542
billion at the end of the second quarter of 2017.
“We delivered mid-single digit organic sales growth,” said
Kieran O’Sullivan, CEO of CTS Corporation. “Adjusted EPS grew 8%
despite some one-time costs. The Noliac acquisition is another step
in advancing our strategy, adding multilayer piezoelectric
technology to our portfolio and expanding our capabilities in
Europe.”
2017 Guidance
Management reaffirms its prior guidance. Full year 2017 sales
are expected to be in the range of $405 to $420 million, as
management continues to monitor market conditions. Adjusted
earnings per diluted share for 2017 are expected to be in the range
of $1.12 to $1.22.
Conference Call
As previously announced, the Company has scheduled a conference
call at 11:00 a.m. (EDT) today to discuss the second quarter
financial results. The dial-in number is 888-490-2759
(719-457-2663, if calling from outside the U.S.). The passcode is
317965. There will be a replay of the conference call from 2:00
p.m. (EDT) today through 2:00 p.m. (EDT) on Thursday, August 10,
2017. The telephone number for the replay is 888-203-1112
(719-457-0820, if calling from outside the U.S.). The replay
passcode is 2589157. 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. CTS manufactures sensors,
actuators and electronic components in North America, Europe and
Asia, and supplies these products to OEMs in the aerospace,
communications, defense, industrial, information technology,
medical 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.
CTS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS - UNAUDITED (In thousands of dollars,
except per share amounts) Three
Months Ended Six Months Ended June 30,
June 30, June 30, June
30, 2017 2016 2017
2016 Net sales $ 105,686 $ 98,693 $ 205,840 $ 195,398
Cost of goods sold 69,892 64,236
135,822 127,472
Gross Margin 35,794 34,457
70,018 67,926 Selling, general and administrative expenses 15,809
15,764 31,055 30,411 Research and development expenses 6,049 5,967
12,052 12,130 Restructuring charges 729 206 1,507 206 (Gain) loss
on sale of assets (1 ) (11,577 ) 1 (11,351 )
Operating earnings 13,208 24,097 25,403 36,530 Other income
(expense): Interest expense (752 ) (1,009 ) (1,436 ) (1,829 )
Interest income 298 331 551 879 Other income (expense)
1,170 (1,240 ) 1,631 (1,436 ) Total other
income (expense) 716 (1,918 ) 746
(2,386 ) Earnings before income taxes 13,924 22,179 26,149 34,144
Income tax expense 3,958 7,692 7,699
11,794
Net earnings $ 9,966
$ 14,487 $ 18,450 $ 22,350
Earnings
per share: Basic 0.30 0.44 0.56 0.68 Diluted 0.30
0.44 0.55 0.67
Basic weighted
– average common shares outstanding: 32,890 32,759 32,846
32,695 Effect of dilutive securities 461 466
493 485
Diluted weighted – average common
shares outstanding 33,351 33,225
33,339 33,180
Cash dividends declared per
share 0.04 0.04 0.08 0.08
CTS CORPORATION AND SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands of dollars)
(Unaudited) June 30,
December 31, 2017 2016
ASSETS Current Assets Cash and cash equivalents $ 107,814 $
113,805 Accounts receivable, net 66,737 62,612 Inventories, net
36,094 28,652 Other current assets 11,925
10,638 Total current assets 222,570 215,707 Property, plant
and equipment, net 85,174 82,111 Other Assets Prepaid pension asset
50,107 46,183 Goodwill 69,582 61,744 Other intangible assets, net
69,059 64,370 Deferred income taxes 40,373 45,839 Other
1,525 1,743 Total other assets
230,646 219,879
Total Assets $
538,390 $ 517,697
LIABILITIES AND SHAREHOLDERS’
EQUITY Current Liabilities Short-term notes payable $ 1,059 $
1,006 Accounts payable 42,660 40,046 Accrued payroll and benefits
8,631 11,369 Accrued liabilities 42,213 45,708
Total current liabilities 94,563 98,129 Long-term debt
92,800 89,100 Post retirement obligations 6,913 7,006 Other
long-term obligations 7,634 5,580
Total Liabilities 201,910 199,815
Commitments and
Contingencies (Note 9) Shareholders’ Equity Common stock
304,715 302,832 Additional contributed capital 38,764 40,521
Retained earnings 426,797 410,979 Accumulated other comprehensive
loss (90,540 ) (93,194 ) Total shareholders’ equity
before treasury stock 679,736 661,138 Treasury stock
(343,256 ) (343,256 ) Total shareholders’ equity
336,480 317,882
Total Liabilities and
Shareholders’ Equity $ 538,390 $ 517,697
CTS CORPORATION AND SUBSIDIARIESOTHER
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 Six Months
Ended June 30, 2017
June 30, 2016 June 30, 2017
June 30, 2016 GAAP diluted earnings per share $ 0.30
$ 0.44 $ 0.55 $ 0.67 Tax affected charges to
reported diluted earnings per share: Restructuring charges 0.01 —
0.03 — Foreign currency (gain) loss (0.03 ) 0.03 (0.04 ) 0.04
Discrete tax items (0.01 ) — (0.01 ) — Transaction costs 0.01 —
0.01 0.01 Gain on sale of facilities, net of expenses
$ — $ (0.21 ) $ — $ (0.21
) Adjusted diluted earnings per share $ 0.28 $
0.26 $ 0.54 $ 0.51
Additional Information
The following table includes other financial information not
presented in the preceding financial statements.
Three Months Ended Six Months
Ended June 30, 2017 June
30, 2016 June 30, 2017 June 30,
2016 Depreciation and amortization expense $ 4,965 $ 4,904 $
9,673 $ 8,925 Stock-based compensation expense
$ 807 $ 685 $ 1,687 $ 967
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170727005261/en/
CTS CorporationAshish Agrawal, +1 630-577-8800Vice President and
Chief Financial Officerashish.agrawal@ctscorp.com
CTS (NYSE:CTS)
Historical Stock Chart
From Mar 2024 to Apr 2024
CTS (NYSE:CTS)
Historical Stock Chart
From Apr 2023 to Apr 2024