CTS Announces Second Quarter 2015 Results: Solid Earnings; Strong New Business Awards
Solid Earnings; Strong New Business Awards
Elkhart, Ind. – CTS Corporation (NYSE: CTS) today announced second quarter 2015 results..
- Sales were $100.1 million, down 2.8% compared to the second quarter of 2014, driven primarily by an unfavorable currency impact of $2.1 million as the US Dollar appreciated against the Euro.
- GAAP earnings were $19.1 million, or $0.57 per diluted share, compared to $6.4 million, or $0.19 per diluted share from continuing operations in the second quarter of 2014.
- GAAP earnings include one-time favorable tax items of $0.32 and restructuring-related charges of $0.05 per diluted share.
- Adjusted EPS was $0.30, compared to $0.25 in the second quarter of 2014.
Second quarter sales to automotive customers declined $2.8 million year-over-year primarily due to unfavorable currency impact of $2.1 million. Sales of electronic components were essentially flat year-over-year. CTS received $169 million in new business awards in the second quarter, bringing the year-to-date new business awards to $361 million.
“We delivered solid earnings even though sales remain soft,” said Kieran O’Sullivan, CEO of CTS Corporation. “We continue to make progress with our strategy to simplify, focus and drive growth in products that sense, connect and move. We achieved strong new business awards again in the second quarter. We expect to complete our transition from Canada as planned during the second half. After this transition, we will have eleven global manufacturing locations, down from twenty at the end of 2012.”
Management is revising its guidance for full year 2015 sales to the range of $390 to $405 million, which includes the unfavorable currency impact at current rates. Adjusted earnings per diluted share are expected to be in the range of $0.95 to $1.05.
As previously announced, the Company has scheduled a conference call on Tuesday, July 28 2015 at 11:00 a.m. (EDT). The dial-in number for the conference call is 888-505-4375 (719-785-1765, if calling from outside the U.S.). The conference I.D. number is 6768906. There will be a replay of the conference call from 2:00 p.m. (EDT) on Tuesday, July 28, 2015 through 2:00 p.m. (EDT) on Tuesday, August 11, 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 6768906. 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 – UNAUDITED
OTHER SUPPLEMENTAL INFORMATION
OTHER SUPPLEMENTAL INFORMATION (CONTINUED)
CONDENSED CONSOLIDATED BALANCE SHEETS – 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.
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 Officer
1142 West Beardsley Avenue
Elkhart, IN 46514