CTS Announces Third Quarter 2016 Results
Continued growth in sales and earnings
Lisle, Ill. – CTS Corporation (NYSE: CTS) today announced third quarter 2016 results.
- Sales were $99.7 million. Excluding $3.2 million from the single crystal acquisition, sales grew 6.4% compared to the third quarter of 2015 and 0.9% sequentially. Sales to automotive customers increased 5.2% year-over-year and declined 0.4% sequentially. Organic sales growth for electronic components was 9.2% year-over-year and 3.9% sequentially.
- GAAP earnings were $3.7 million or $0.11 per diluted share, which included $0.11 for one-time unfavorable tax items, $0.04 for restructuring, and $0.02 for a one-time lease termination fee. A GAAP loss of $4.8 million or $0.15 per share was reported in the third quarter of 2015, which included $0.28 for a non-recurring environmental charge, $0.06 for restructuring, and $0.04 for one-time unfavorable tax items.
- Adjusted EPS was $0.28 per diluted share versus $0.26 in the second quarter of 2016 and $0.23 in the third quarter of 2015.
- New business awards were $103 million in the third quarter and $356 million year-to-date.
“We are pleased with the continued improvement in sales and profitability,” said Kieran O’Sullivan, CEO of CTS Corporation. “ The team’s hard work has resulted in four consecutive quarters of sales growth, and we remain focused on driving profitable growth around products that Sense, Connect and Move. The single crystal acquisition has been a solid strategic addition to our portfolio, and the integration is going well.”
Management expects full year 2016 sales to be in the range of $390 to $400 million, including sales from the single crystal acquisition. Adjusted earnings per diluted share for 2016 are expected to be in the range of $1.00 to $1.06.
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 877-548-7906 (719-325-4773, if calling from outside the U.S.). The conference I.D. number is 5139796. There will be a replay of the conference call from 2:00 p.m. (EDT) today through 2:00 p.m. (EDT) on Friday, November 11, 2016. The telephone number for the replay is 888-203-1112 (719-457-0820, if calling from outside the U.S.). The access code is 5139796. 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.
CTS (NYSE: CTS) is a leading designer and manufacturer of products that Sense, Connect and Move. CTS manufactures sensors, actuators and electronic components in North America, Europe and Asia, and supplies these products to OEMs in the aerospace, communications, defense, industrial, information technology, medical and transportation markets.
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. 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.
Vice President and Chief Financial Officer
2375 Cabot Drive
Lisle, IL 60532
Telephone: +1 (630) 577-8800
CTS Corporation and Subsidiaries – Condensed Consolidated Statements of Earnings – Unaudited
CTS Corporation and Subsidiaries – Condensed Consolidated Balance Sheets
CTS Corporation and Subsidiaries – Other Supplemental Information
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.