CTS CORPORATION AND SUBSIDIARIES
OTHER SUPPLEMENTAL INFORMATION

Free Cash Flow

 


The following table summarizes free cash flow for the Company:
 
         Nine Months Ended  
        October 2,   September 26,  
        2005   2004  
 

(In thousands of dollars)

  
         
Net cash provided by operations $29,757   $9,663  
Capital expenditures (12,549)   (10,121)  
     Free cash flow $17,208   $(458)  
         
Free cash flow is a non-GAAP financial measure which CTS defines as the sum of new cash provided by operations and cash used for capital expenditures.  The most directly comparable GAAP financial measure is net cash provided by operations. Management believes that free cash flow provides useful information to investors regarding the Company's ability to generate cash from business operations that is available for internal growth, service of debt principal, dividends, share repurchase and acquisitions and other investments. Management uses free cash flow as one measure to monitor and evaluate the performance of the Company.

 

Projected Full Year Earnings Per Share, Excluding Repatriation 
Related Tax Expense and Reversal of Certain Tax Reserves
 

The following table reconciles the projected full year GAAP earnings per share to the projected full year

      
earnings per share, excluding repatriation related tax expense and reversal of certain tax reserves:      
             
  Year ended          
  December 31,          
  2005          
             
             
GAAP earnings per share    $0.54 - $0.58           
Impact of tax repatriation     $           0.11           
Impact of reversal of tax reserves    $          (0.04)           
             
Projected full year earnings per share, excluding repatriation            
related tax expense and reversal of certain tax reserves    $0.61 - $0.65           
             
Projected full year earning per share, excluding repatriation related tax expense and reversal of certain       
tax reserves is a non-GAAP financial measure.  The most directly comparable GAAP financial measure      
is projected full year earnings per share.  Management believes that projected full year earnings per share,     
excluding repatriation related tax expense and reversal of certain tax reserves provides useful information      
to investors who might compare full year 2005 results to other periods presented by the Company.