• CTS Announces Fourth Quarter and Full Year 2020 Results

    来源: Nasdaq GlobeNewswire / 09 2月 2021 07:30:00   America/New_York

    LISLE, Ill., Feb. 09, 2021 (GLOBE NEWSWIRE) -- CTS Corporation (NYSE: CTS) today announced fourth quarter and full year 2020 results.

    Fourth Quarter 2020 Results

    • Sales were $123 million, up 7% year-over-year. Sales to transportation customers increased 12%, and sales to other end markets were essentially flat.
    • Net earnings were $14.9 million or $0.46 per diluted share versus $10.1 million or $0.31 last year.
    • Adjusted diluted EPS was $0.43, up 16% from $0.37 in the fourth quarter of 2019.
    • Free cash flow was $22.0 million, up 28% from $17.2 million in 2019.
    • New business wins were $104 million.

    Full Year 2020 Results

    • Sales were $424 million, down 10% compared to 2019. Sales to transportation customers declined 19%, and sales to other end markets increased 7%.
    • Net earnings were $34.7 million or $1.06 per diluted share versus $36.1 million or $1.09 last year.
    • Adjusted diluted EPS was $1.12 compared to $1.45 in 2019.
    • Free cash flow was $61.9 million, up 45% from $42.7 million last year.
    • New business wins were $442 million.

    “We saw strength in most end markets and executed well to deliver solid financial results in the fourth quarter,” said Kieran O’Sullivan, CEO of CTS Corporation. “We are making progress on our Focus 2025 strategic initiative, including a target of 10% annualized revenue growth. The recent SSI acquisition strengthens our position with medical customers and advances our end market diversification.”

    2021 Guidance

    Management remains mindful of market and supply chain uncertainties in this pandemic environment. Full year 2021 sales are expected to be in the range of $430 to $490 million. Adjusted earnings per diluted share for 2021 are expected to be in the range of $1.20 to $1.60. Management aims to narrow the guidance range as the year progresses.

    Conference Call

    As previously announced, the Company has scheduled a conference call at 10:00 a.m. (EST) today to discuss the fourth quarter and full year financial results. The dial-in number is 800-309-1256 (720-543-0314, if calling from outside the U.S.). The passcode is 886676. There will be a replay of the conference call from 1:00 p.m. (EST) today through 1:00 p.m. (EST) on Tuesday, February 23, 2021. The telephone number for the replay is 888-203-1112 (719-457-0820, if calling from outside the U.S.). The replay passcode is 8354721. 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: ashish.agrawal@ctscorp.com

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

      Three Months Ended  Twelve Months Ended 
      December 31,
    2020
      December 31,
    2019
      December 31,
    2020
      December 31,
    2019
     
    Net sales $123,018  $115,040  $424,066  $468,999 
    Cost of goods sold  80,327   76,340   285,003   311,424 
    Gross margin  42,691   38,700   139,063   157,575 
    Selling, general and administrative expenses  19,476   18,037   67,787   70,408 
    Research and development expenses  5,664   6,113   24,317   25,967 
    Restructuring charges  414   2,111   1,830   7,448 
    Loss (gain) on sale of assets     48      (63)
    Operating earnings  17,137   12,391   45,129   53,815 
    Other (expense) income:                
    Interest expense  (655)  (903)  (3,272)  (2,648)
    Interest income  195   341   1,047   1,737 
    Other income (expense), net  2,682   1,008   2,575   (2,638)
    Total other income (expense), net  2,222   446   350   (3,549)
    Earnings before income taxes  19,359   12,837   45,479   50,266 
    Income tax expense  4,412   2,775   10,793   14,120 
    Net earnings $14,947  $10,062  $34,686  $36,146 
    Earnings per share:                
    Basic $0.46  $0.31  $1.07  $1.11 
    Diluted $0.46  $0.31  $1.06  $1.09 
    Basic weighted – average common shares outstanding:  32,273   32,554   32,317   32,700 
    Effect of dilutive securities  289   416   267   405 
    Diluted weighted – average common shares outstanding:  32,562   32,970   32,584   33,105 
    Cash dividends declared per share $0.04  $0.04  $0.16  $0.16 

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

      (Unaudited)     
      December 31, 2020  December 31, 2019 
    ASSETS        
    Current Assets        
    Cash and cash equivalents $91,773  $100,241 
    Accounts receivable, net  80,981   78,008 
    Inventories, net  45,870   42,237 
    Other current assets  14,607   16,992 
    Total current assets  233,231   237,478 
    Property, plant and equipment, net  97,437   105,038 
    Operating lease assets, net  23,281   24,644 
    Other Assets        
    Prepaid pension asset  56,642   62,082 
    Goodwill  109,497   106,056 
    Other intangible assets, net  79,121   85,215 
    Deferred income taxes  24,250   19,795 
    Other  2,590   3,046 
    Total other assets  272,100   276,194 
    Total Assets $626,049  $643,354 
    LIABILITIES AND SHAREHOLDERS’ EQUITY        
    Current Liabilities        
    Accounts payable $50,489  $48,219 
    Operating lease obligations  3,294   2,787 
    Accrued payroll and benefits  12,978   9,564 
    Accrued expenses and other liabilities  38,171   36,378 
    Total current liabilities  104,932   96,948 
    Long-term debt  54,600   99,700 
    Long-term operating lease obligations  23,163   24,926 
    Long-term pension obligations  7,466   6,632 
    Deferred income taxes  7,010   5,637 
    Other long-term obligations  5,196   4,292 
    Total Liabilities  202,367   238,135 
    Commitments and Contingencies        
    Shareholders’ Equity        
    Common stock  311,190   307,932 
    Additional contributed capital  41,654   43,689 
    Retained earnings  539,281   509,766 
    Accumulated other comprehensive loss  (95,921)  (91,726)
    Total shareholders’ equity before treasury stock  796,204   769,661 
    Treasury stock  (372,522)  (364,442)
    Total shareholders’ equity  423,682   405,219 
    Total Liabilities and Shareholders’ Equity $626,049  $643,354 

    CTS CORPORATION AND SUBSIDIARIES
    OTHER SUPPLEMENTAL INFORMATION - UNAUDITED

    Earnings Per Share

    The following table reconciles GAAP diluted earnings per share to adjusted diluted earnings per share for the Company:

      Three Months Ended  Twelve Months Ended 
      December 31,
    2020
      December 31,
    2019
      December 31,
    2020
      December 31,
    2019
     
    GAAP diluted earnings per share $0.46  $0.31  $1.06  $1.09 
    Tax affected charges to reported diluted earnings per share:                
    Restructuring charges  0.01   0.05   0.04   0.18 
    Foreign currency (gain) loss  (0.10)  (0.03)  (0.16)  0.05 
    Non-cash pension expense  0.01   0.01   0.06   0.02 
    Environmental charges  0.03   0.05   0.07   0.05 
    Legal settlement     (0.01)     (0.01)
    Transaction costs  0.01      0.01   0.02 
    Discrete tax items  0.01   (0.01)  0.04   0.05 
    Adjusted diluted earnings per share $0.43  $0.37  $1.12  $1.45 

    Free Cash Flow

    The following table reconciles GAAP operating cash flow to free cash flow for the Company:

      Three Months Ended  Twelve Months Ended 
    (in thousands) December 31,
    2020
      December 31,
    2019
      December 31,
    2020
      December 31,
    2019
     
    Net cash provided by operating activities $26,429  $23,670  $76,783  $64,405 
    Capital expenditures  (4,417)  (6,434)  (14,858)  (21,733)
    Free cash flow $22,012  $17,236  $61,925  $42,672 

    Additional Information

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

      Three Months Ended  Twelve Months Ended 
    (in thousands) December 31,
    2020
      December 31,
    2019
      December 31,
    2020
      December 31,
    2019
     
    Depreciation and amortization expense $6,851  $6,581  $26,670  $24,619 
    Stock-based compensation expense $1,253  $1,065  $3,417  $5,015 

    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.

    Free cash flow is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net cash provided by operating activities. CTS believes free cash flow is a useful measure of its ability to generate cash.

    We recommend that investors consider both actual and adjusted measures in evaluating the performance of CTS with peer companies.


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