CTS Announces Fourth Quarter and Full Year 2019 Results

LISLE, Ill., Feb. 04, 2020 (GLOBE NEWSWIRE) -- CTS Corporation (NYSE: CTS) today announced fourth quarter and full year 2019 results.

Fourth Quarter 2019 Results

  • Sales were $115.0 million, down 4.2% year-over-year. Sales to transportation customers declined 11.0%, and sales to other end markets grew 7.9%. The QTI acquisition added $5.6 million of sales in the fourth quarter of 2019.
  • Net earnings were $10.1 million or $0.31 per diluted share versus $17.6 million or $0.52 last year.
  • Adjusted diluted EPS was $0.37 compared to $0.41 in the fourth quarter of 2018.

Full Year 2019 Results

  • Sales were $469.0 million, essentially flat to 2018. Sales to transportation customers declined 0.4%, and sales to other end markets decreased 0.2%. The QTI acquisition added $9.3 million of sales in 2019.
  • Net earnings were $36.1 million or $1.09 per diluted share versus $46.5 million or $1.39 last year.
  • Adjusted diluted EPS was $1.45 compared to $1.53 in 2018.
  • Free cash flow was $42.7 million, up 44% from $29.7 million in 2018.
  • Total booked business grew $16 million in 2019 to $1.88 billion.

“2019 was a challenging year driven by market softness. We took actions to reduce operating expenses and improve our performance. We also delivered strong growth in cash flow,” said Kieran O’Sullivan, CEO of CTS Corporation. “We anticipate a soft first half of 2020, with improvement in market conditions in the second half of the year. Our strategic priorities remain the same, driving profitable growth, margin improvement and advancing our end market profile.”

2020 Guidance

Full year 2020 sales are expected to be in the range of $450 to $480 million. Adjusted earnings per diluted share for 2020 are expected to be in the range of $1.35 to $1.60.

Conference Call

As previously announced, the Company has scheduled a conference call at 11:00 a.m. (EST) today to discuss the fourth quarter and full year financial results. The dial-in number is 800-309-1256 (720-543-0314, if calling from outside the U.S.). The passcode is 488435. There will be a replay of the conference call from 2:00 p.m. (EST) today through 2:00 p.m. (EST) on Tuesday, February 18, 2020. The telephone number for the replay is 888-203-1112 (719-457-0820, if calling from outside the U.S.). The replay passcode is 6906039. 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.com

 

CTS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED
(In thousands of dollars, except per share amounts)

  Three Months Ended   Twelve Months Ended
  December 31,   December 31,   December 31,   December 31,
  2019   2018   2019   2018
Net sales $ 115,040     $ 120,073     $ 468,999     $ 470,483  
Cost of goods sold 76,340     77,428     311,424     305,100  
Gross Margin 38,700     42,645     157,575     164,973  
Selling, general and administrative expenses 18,037     18,128     70,408     73,569  
Research and development expenses 6,113     5,804     25,967     25,304  
Restructuring charges 2,111     1,698     7,448     5,062  
Loss (gain) on sale of assets 48     (2 )   (63 )    
Operating earnings 12,391     17,017     53,815     61,038  
Other (expense) income:              
Interest expense (903 )   (484 )   (2,648 )   (2,085 )
Interest income 341     459     1,737     1,826  
Other income (expense), net 1,008     (119 )   (2,638 )   (2,676 )
Total other income (expense), net 446     (144 )   (3,549 )   (2,935 )
Earnings before income taxes 12,837     16,873     50,266     58,103  
Income tax expense (benefit) 2,775     (691 )   14,120     11,571  
Net earnings $ 10,062     $ 17,564     $ 36,146     $ 46,532  
Earnings per share:              
Basic $ 0.31     $ 0.53     $ 1.11     $ 1.41  
Diluted $ 0.31     $ 0.52     $ 1.09     $ 1.39  
               
Basic weighted – average common shares outstanding: 32,554     32,983     32,700     33,024  
Effect of dilutive securities 416     562     405     545  
Diluted weighted – average common shares
outstanding:
32,970     33,545     33,105     33,569  
               
Cash dividends declared per share $ 0.04     $ 0.04     $ 0.16     $ 0.16  

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