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CTS Announces Second Quarter 2021 Results
Источник: Nasdaq GlobeNewswire / 27 июл 2021 07:45:00 America/New_York
LISLE, Ill., July 27, 2021 (GLOBE NEWSWIRE) -- CTS Corporation (NYSE: CTS) today announced second quarter 2021 results.
- Sales were $129.6 million, up 54% year-over-year. Sales to transportation customers increased 88%, and sales to other end markets grew 26%. The Sensor Scientific acquisition added $1.6 million of sales in the second quarter of 2021.
- Net earnings were $0.9 million or $0.03 per diluted share versus $4.9 million or $0.15 per diluted share in the second quarter of last year. The second quarter net earnings were impacted by a non-cash charge of $20.1 million related to the previously communicated termination of the U.S. pension plan.
- Adjusted diluted EPS was $0.52, up from $0.16 in the second quarter of 2020.
- Free cash flow was $16.3 million, up from $9.1 million in the second quarter of 2020.
- New business wins were $174 million.
“We delivered another quarter of strong sales and earnings in a challenging supply chain environment. I am proud of the execution by our global teams to meet our customers’ needs,” said Kieran O’Sullivan, CEO of CTS Corporation. “We continue to advance our diversification strategy by growing in the industrial, medical, and aerospace and defense end markets, enhanced by stronger new business wins.”
2021 Guidance
While management remains mindful of supply chain uncertainties, CTS is updating its 2021 guidance for sales from $445 – $500 million to $480 – $500 million, and for adjusted diluted EPS from $1.35 – $1.70 to $1.70 – $1.90.Conference Call
As previously announced, the Company has scheduled a conference call at 10:00 a.m. (EST) today to discuss the second quarter financial results. The dial-in number is 800-309-1256 (323-347-3622, if calling from outside the U.S.). The passcode is 960176. A replay of the conference call will be available from 1:00 p.m. (EST) on Tuesday, July 27, 2021 through 1:00 p.m. (EST) on Tuesday, August 10, 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 6658189. 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.comCTS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED
(In thousands of dollars, except per share amounts)Three Months Ended Six Months Ended June 30,
2021June 30,
2020June 30,
2021June 30,
2020Net sales $ 129,585 $ 84,197 $ 258,012 $ 187,272 Cost of goods sold 81,889 57,630 167,725 127,806 Gross margin 47,696 26,567 90,287 59,466 Selling, general and administrative expenses 20,937 14,668 39,262 31,427 Research and development expenses 6,029 5,522 11,716 12,930 Restructuring charges 151 135 232 375 Operating earnings 20,579 6,242 39,077 14,734 Other (expense) income: Interest expense (508 ) (909 ) (1,063 ) (1,760 ) Interest income 257 304 459 635 Other (expense) income, net (20,929 ) 256 (24,285 ) (1,726 ) Total other expense, net (21,180 ) (349 ) (24,889 ) (2,851 ) (Loss) earnings before income taxes (601 ) 5,893 14,188 11,883 Income tax expense (1,476 ) 1,036 1,323 3,218 Net earnings $ 875 $ 4,857 $ 12,865 $ 8,665 Earnings per share: Basic $ 0.03 $ 0.15 $ 0.40 $ 0.27 Diluted $ 0.03 $ 0.15 $ 0.39 $ 0.27 Basic weighted – average common shares outstanding: 32,397 32,262 32,358 32,364 Effect of dilutive securities 229 242 259 284 Diluted weighted – average common shares outstanding: 32,626 32,504 32,617 32,648 Cash dividends declared per share $ 0.04 $ 0.04 $ 0.08 $ 0.08 CTS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of dollars)(Unaudited) June 30,
2021December 31,
2020ASSETS Current Assets Cash and cash equivalents $ 117,397 $ 91,773 Accounts receivable, net 80,795 80,981 Inventories, net 48,972 45,870 Other current assets 16,180 14,607 Total current assets 263,344 233,231 Property, plant and equipment, net 93,017 97,437 Operating lease assets, net 23,150 23,281 Other Assets Prepaid pension asset 56,903 56,642 Goodwill 109,898 109,497 Other intangible assets, net 74,584 79,121 Deferred income taxes 23,949 24,250 Other 2,453 2,590 Total other assets 267,787 272,100 Total Assets $ 647,298 $ 626,049 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities Accounts payable $ 47,753 $ 50,489 Operating lease obligations 3,360 3,294 Accrued payroll and benefits 14,433 12,978 Accrued expenses and other liabilities 36,765 38,171 Total current liabilities 102,311 104,932 Long-term debt 50,000 54,600 Long-term operating lease obligations 22,953 23,163 Long-term pension obligations 7,199 7,466 Deferred income taxes 6,924 7,010 Other long-term obligations 3,602 5,196 Total Liabilities 192,989 202,367 Commitments and Contingencies Shareholders’ Equity Common stock 314,341 311,190 Additional contributed capital 40,007 41,654 Retained earnings 549,553 539,281 Accumulated other comprehensive loss (77,070 ) (95,921 ) Total shareholders’ equity before treasury stock 826,831 796,204 Treasury stock (372,522 ) (372,522 ) Total shareholders’ equity 454,309 423,682 Total Liabilities and Shareholders’ Equity $ 647,298 $ 626,049 CTS CORPORATION AND SUBSIDIARIES
OTHER SUPPLEMENTAL INFORMATION - UNAUDITEDEarnings Per Share
The following table reconciles GAAP diluted earnings per share to adjusted diluted earnings per share for the Company:
Three Months Ended Six Months Ended June 30,
2021June 30,
2020June 30,
2021June 30,
2020GAAP diluted earnings per share $ 0.03 $ 0.15 $ 0.39 $ 0.27 Tax affected charges to reported diluted earnings per share: Restructuring charges 0.01 0.01 0.01 0.01 Foreign currency (gain) loss (0.03 ) (0.03 ) 0.01 0.01 Non-cash pension expense 0.51 0.01 0.56 0.02 Environmental charges — 0.02 0.01 0.02 Discrete tax items — — — 0.02 Adjusted diluted earnings per share $ 0.52 $ 0.16 $ 0.98 $ 0.35 Free Cash Flow
The following table reconciles GAAP operating cash flow to free cash flow for the Company:
Three Months Ended Six Months Ended (in thousands) June 30,
2021June 30,
2020June 30,
2021June 30,
2020Net cash provided by operating activities $ 18,675 $ 11,797 $ 38,785 $ 23,724 Capital expenditures (2,332 ) (2,675 ) (3,970 ) (7,245 ) Free cash flow $ 16,343 $ 9,122 $ 34,815 $ 16,479 Additional Information
The following table includes other financial information not presented in the preceding financial statements.
Three Months Ended Six Months Ended (in thousands) June 30,
2021June 30,
2020June 30,
2021June 30,
2020Depreciation and amortization expense $ 6,712 $ 6,611 $ 13,512 $ 13,143 Stock-based compensation expense $ 1,903 $ 817 $ 3,122 $ 1,045 Non-GAAP Financial Measures
From time to time, CTS may use non-GAAP financial measures in discussing CTS’ business. These measures are intended to supplement, not replace, CTS’ presentation of its financial results in accordance with GAAP. CTS’ management believes that non-GAAP financial measures can be useful to investors in analyzing CTS financial performance and results of operations over time. CTS recommends that investors consider both actual and adjusted measures in evaluating the performance of CTS with peer companies.
Adjusted Diluted Earnings Per Share
Adjusted diluted earnings per share is a non-GAAP financial measure. The most directly comparable GAAP financial measure is diluted earnings per share.
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
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.