CTS Announces First Quarter 2015 Results
1Q 2015 Earnings on Track; Strong New Business Awards; Expands Share Buyback Program
Elkhart, Ind. – CTS Corporation (NYSE: CTS) announced 1st quarter 2015 results.
- Sales were $98.3 million, down 2.4% compared to the first quarter of 2014, driven primarily by an unfavorable currency impact of $2.3 million as the US Dollar appreciated against the Euro and Chinese Renminbi.
- GAAP earnings were $6.3 million, or $0.19 per diluted share, compared to $5.1 million, or $0.15 per diluted share from continuing operations in the first quarter of 2014.
- Adjusted EPS was $0.20, compared to $0.19 in the first quarter of 2014.
- Currency impacted net earnings unfavorably by $1.7 million due to balance sheet translation of assets denominated in European currencies.
First quarter sales to automotive customers declined $3.7 million year-over-year primarily due to unfavorable currency impact of $2.3 million. Sales of electronic components increased $1.3 million year-over-year. CTS received $192 million in new business awards in the first quarter.
“We continued to execute well in the first quarter of 2015 although currency impacted our top line and earnings unfavorably,” said Kieran O’Sullivan, CEO of CTS Corporation. “We recorded our strongest new business awards since we began reporting in the second quarter of 2013. We are following our strategic plan and transitioning our focus to Sense | Connect | Move.”
CTS is expanding its share buyback program by $25 million. Including the remaining portion of the previous authorization, the total program has increased to approximately $32 million.
Management reaffirms its guidance for full year 2015 sales in the range of $400 to $430 million and adjusted earnings per diluted share in the range of $0.98 to $1.10. Currency continues to be a concern and may unfavorably impact Management’s guidance by 2-3% on sales and 5-8 cents on earnings.
As previously announced, the Company has scheduled a conference call on Tuesday, April 28 2015 at 11:00 a.m. (EDT). The dial-in number for the conference call is 888-500-6950 (719-325-2464, if calling from outside the U.S.). The conference I.D. number is 1987752. There will be a replay of the conference call from 2:00 p.m. (EDT) on Tuesday, April 28, 2015 through 2:00 p.m. (EDT) on Tuesday, May 12, 2015. The telephone number for the replay is 888-203-1112 (719-457-0820, if calling from outside the U.S.). The access code is 1987752. Also, please note that a live audio webcast of the conference call will be available and can be accessed directly from the website of CTS Corporation www.ctscorp.com.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) – UNAUDITED
CTS (NYSE: CTS) is a leading designer and manufacturer of sensors, actuators and electronic components to OEMs in the aerospace, communications, defense, industrial, information technology, medical and transportation markets. CTS manufactures products in North America, Europe and Asia.
For more information visit www.ctscorp.com.
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. Examples of factors that may affect future operating results and financial condition include, but are not limited to: changes in the economy generally and in respect to the businesses in which CTS operates; unanticipated issues in integrating acquisitions; the results of actions to reposition our businesses; rapid technological change; general market conditions in the automotive, communications, and computer industries, as well as conditions in the industrial, defense and aerospace, and medical markets; reliance on key customers; unanticipated natural disasters or other events; the ability to protect our intellectual property; pricing pressures and demand for our products; unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters as well as any product liability claims; and risks associated with our international operations, including trade and tariff barriers, exchange rates and political and geopolitical risks. Many of these, and other, risks and uncertainties are discussed in further detail in Item 1A. of the 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.
Vice President and Chief Financial OfficerCTS Corporation
2375 Cabot Drive
Lisle, IL 60532
Telephone: +1 (574) 523-3800