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Cts Corp (CTS) SEC Filing 8-K Material Event for the period ending Thursday, October 25, 2018

Cts Corp

CIK: 26058 Ticker: CTS


ctslogoa15.jpg
 

Press Release
 
 
 
October 25, 2018
 
FOR IMMEDIATE RELEASE

CTS Announces Third Quarter 2018 Results
Strong sales and earnings
Lisle, Ill. - CTS Corporation (NYSE: CTS) today announced third quarter 2018 results.
Sales were $118.9 million, up 11.9% year-over-year. Sales to transportation customers increased 9.6%, and sales of electronic components increased 15.9%.
Net earnings were $10.2 million or $0.30 per diluted share, up from $9.6 million or $0.29 per diluted share in the third quarter of 2017.
Adjusted EPS was $0.39 per diluted share, up from $0.31 in the third quarter of 2017.
Total Booked Business was $1.832 billion at the end of the third quarter of 2018, an increase of $32 million from the second quarter of 2018.
“We are pleased to see continued improvement in our performance,” said Kieran O’Sullivan, CEO of CTS Corporation. “Our strategic goal to diversify and expand regionally is gaining traction, and we are delivering strong sales growth in several of our non-transportation end markets.”
2018 Guidance
Management is increasing full year guidance. 2018 sales are expected to be in the range of $465 to $470 million, up from $450 to $465 million. Adjusted earnings per diluted share for 2018 are expected to be in the range of $1.49 to $1.56, up from $1.40 to $1.55.
Conference Call
As previously announced, the Company has scheduled a conference call at 11:00 a.m. (EDT) today to discuss the third quarter financial results. The dial-in number is 866-519-2796 (323-794-2095, if calling from outside the U.S.). The passcode is 785028. There will be a replay of the conference call from 2:00 p.m. (EDT) today through 2:00 p.m. (EDT) on Thursday, November 8, 2018. The telephone number for the replay is 888-203-1112 (719-457-0820, if calling from outside the U.S.). The replay passcode is 8989573. 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.



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: ashish.agrawal@ctscorp.com
###

www.ctscorp.com




CTS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED
(In thousands of dollars, except per share amounts) 
 
Three Months Ended

Nine Months Ended
 
September 30,

September 30,

September 30,

September 30,
 
2018

2017

2018

2017
Net sales
$
118,859


$
106,243


$
350,410


$
312,083

Cost of goods sold
76,777


68,705


228,082


204,527

Gross Margin
42,082


37,538


122,328


107,556

Selling, general and administrative expenses
18,450


15,915


55,441


46,970

Research and development expenses
6,517


6,380


19,500


18,432

Restructuring charges
997


1,435


3,364


2,942

Loss on sale of assets


697


2


698

Operating earnings
16,118


13,111


44,021


38,514

Other income (expense):
 
 
 
 
 

 
 

Interest expense
(489
)

(773
)

(1,601
)

(2,209
)
Interest income
413


363


1,367


914

Other (expense) income, net
(1,687
)

1,258


(2,557
)

2,889

Total other (expense) income
(1,763
)

848


(2,791
)

1,594

Earnings before income taxes
14,355


13,959


41,230


40,108

Income tax expense
4,144


4,340


12,262


12,039

Net earnings
$
10,211


$
9,619


$
28,968


$
28,069

Earnings per share:
 
 
 
 
 

 
 

Basic
$
0.31


$
0.29


$
0.88


$
0.85

Diluted
$
0.30


$
0.29


$
0.86


$
0.84

 
 
 
 
 
 
 
 
Basic weighted – average common shares outstanding:
33,087


32,935


33,038


32,876

Effect of dilutive securities
562


456


542


475

Diluted weighted – average common shares outstanding
33,649


33,391


33,580


33,351









Cash dividends declared per share
$
0.04


$
0.04


$
0.12


$
0.12



www.ctscorp.com




CTS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of dollars)
 
 
(Unaudited)


 
September 30,

December 31,

2018

2017
ASSETS
 

 
 

Current Assets
 

 
 

Cash and cash equivalents
$
103,754


$
113,572

Accounts receivable, net
79,030


70,584

Inventories, net
41,960


36,596

Other current assets
14,254


12,857

Total current assets
238,998


233,609

Property, plant and equipment, net
96,670


88,247

Other Assets
 

 
 

Prepaid pension asset
61,382


57,050

Goodwill
71,057


71,057

Other intangible assets, net
61,869


66,943

Deferred income taxes
17,369


20,694

Other
2,247


2,096

Total other assets
213,924


217,840

Total Assets
$
549,592


$
539,696

LIABILITIES AND SHAREHOLDERS’ EQUITY
 

 
 

Current Liabilities
 

 
 

Accounts payable
$
52,177


$
49,201

Accrued payroll and benefits
13,183


11,867

Accrued liabilities
40,300


41,344

Total current liabilities
105,660


102,412

Long-term debt
50,000


76,300

Long-term pension obligations
6,918


7,201

Deferred income taxes
4,744


3,802

Other long-term obligations
6,065


6,176

Total Liabilities
173,387


195,891

Commitments and Contingencies
 
 
 
Shareholders’ Equity
 

 
 

Common stock
303,641


304,777

Additional contributed capital
44,740


41,084

Retained earnings
445,160


420,160

Accumulated other comprehensive loss
(74,080
)

(78,960
)
Total shareholders’ equity before treasury stock
719,461


687,061

Treasury stock
(343,256
)

(343,256
)
Total shareholders’ equity
376,205


343,805

Total Liabilities and Shareholders’ Equity
$
549,592


$
539,696



www.ctscorp.com




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:

 
Three Months Ended
 
Nine Months Ended
 
September 30, 2018
 
September 30, 2017
 
September 30, 2018
 
September 30, 2017
GAAP diluted earnings per share
$
0.30


$
0.29


$
0.86


$
0.84

 
 
 
 
 
 
 
 
Tax affected adjustments to reported diluted earnings per share:
 
 
 
 
 
 
 
Restructuring charges
0.02

 
0.03

 
0.08

 
0.05

Foreign currency loss (gain)
0.04

 
(0.02
)
 
0.06

 
(0.06
)
Transaction costs

 

 

 
0.01

Non-recurring costs of tax improvement initiatives
0.01

 

 
0.03

 

Non-recurring environmental charge

 

 
0.02

 

Loss on sale of facilities, net of expenses

 
0.01

 

 
0.01

Decrease in the recognition of foreign valuation allowance

 

 

 
(0.01
)
Discrete tax items
0.02

 

 
0.07

 

Adjusted diluted earnings per share
$
0.39

 
$
0.31

 
$
1.12

 
$
0.84


Additional Information

The following table includes other financial information not presented in the preceding financial statements.

 
Three Months Ended
 
Nine Months Ended
 
September 30, 2018
 
September 30, 2017
 
September 30, 2018
 
September 30, 2017
Depreciation and amortization expense
$
5,388

 
$
5,388

 
$
16,349

 
$
15,061

Stock-based compensation expense
$
1,918

 
$
827

 
$
4,104

 
$
2,514



www.ctscorp.com




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.



www.ctscorp.com

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Cts Corp provided additional information to their SEC Filing as exhibits

Ticker: CTS
CIK: 26058
Form Type: 8-K Corporate News
Accession Number: 0000026058-18-000088
Submitted to the SEC: Thu Oct 25 2018 8:05:40 AM EST
Accepted by the SEC: Thu Oct 25 2018
Period: Thursday, October 25, 2018
Industry: Printed Circuit Boards
Events:
  1. Earnings Release
  2. Financial Exhibit

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