Indiana
|
1-4639
|
35-0225010
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Numbers)
|
(I.R.S. Employer Identification Nos.)
|
905 West Boulevard North
|
||
Elkhart, Indiana
|
46514
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
q
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
q
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
q
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
q
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02
|
Results of Operations and Financial Condition.
|
99.1
|
Press Release dated July 25, 2011
|
Second Quarter 2011
|
Second Quarter 2010
|
First Quarter 2011
|
|||||||||
Segment
|
Segment
|
Segment
|
|||||||||
Net
|
Operating
|
Net
|
Operating
|
Net
|
Operating
|
||||||
Sales
|
Earnings
|
Sales
|
Earnings / (Loss)
|
Sales
|
Earnings
|
||||||
Components and Sensors
|
$68.0
|
$4.8
|
$72.3
|
$7.9
|
$72.0
|
$5.8
|
|||||
Electronics Manufacturing Services (EMS)
|
78.9
|
0.4
|
66.6
|
(0.2)
|
79.5
|
-
|
|||||
Segment Operating Earnings
|
5.2
|
7.7
|
5.8
|
||||||||
Expenses not allocated to business segments:
|
|||||||||||
- Restructuring
|
(0.7)
|
||||||||||
Total
|
$146.9
|
$4.5
|
$138.9
|
$7.7
|
$151.5
|
$5.8
|
CTS CORPORATION AND SUBSIDIARIES
|
|||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED
|
|||||||||||
(In thousands, except per share amounts)
|
|||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||
July 3
|
July 4
|
July 3
|
July 4
|
||||||||
2011
|
2010
|
2011
|
2010
|
||||||||
Net sales
|
$ 146,919
|
$ 138,851
|
$ 298,437
|
$ 268,254
|
|||||||
Costs and expenses:
|
|||||||||||
Cost of goods sold
|
119,051
|
108,511
|
241,409
|
207,435
|
|||||||
Selling, general and administrative expenses
|
18,057
|
18,283
|
36,429
|
37,832
|
|||||||
Research and development expenses
|
4,590
|
4,316
|
9,619
|
8,899
|
|||||||
Restructuring charge
|
694
|
-
|
694
|
-
|
|||||||
Operating earnings
|
4,527
|
7,741
|
10,286
|
14,088
|
|||||||
Other (expense) / income:
|
|||||||||||
Interest expense, net
|
(235)
|
(147)
|
(531)
|
(329)
|
|||||||
Other
|
743
|
(337)
|
1,873
|
(821)
|
|||||||
Total other income/(expense)
|
508
|
(484)
|
1,342
|
(1,150)
|
|||||||
Earnings before income taxes
|
5,035
|
7,257
|
11,628
|
12,938
|
|||||||
Income tax expense
|
903
|
1,365
|
2,380
|
2,615
|
|||||||
Net earnings
|
$ 4,132
|
$ 5,892
|
$ 9,248
|
$ 10,323
|
|||||||
Net earnings per share:
|
|||||||||||
Basic
|
$ 0.12
|
$ 0.17
|
$ 0.27
|
$ 0.30
|
|||||||
Diluted
|
$ 0.12
|
$ 0.17
|
$ 0.26
|
$ 0.30
|
|||||||
Cash dividends declared per share
|
$ 0.03
|
$ 0.03
|
$ 0.06
|
$ 0.06
|
|||||||
Average common shares outstanding:
|
|||||||||||
Basic
|
34,375
|
34,048
|
34,334
|
34,001
|
|||||||
Diluted
|
35,025
|
34,874
|
35,050
|
34,811
|
CTS Corporation and Subsidiaries
|
||||||||
Condensed Consolidated Balance Sheets - Unaudited
|
||||||||
(In thousands of dollars)
|
||||||||
July 3,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Cash and cash equivalents
|
$ 75,056
|
$ 73,315
|
||||||
Accounts receivable, net
|
87,792
|
95,930
|
||||||
Inventories, net
|
88,602
|
76,885
|
||||||
Other current assets
|
23,903
|
20,525
|
||||||
Total current assets
|
275,353
|
266,655
|
||||||
Property, plant & equipment, net
|
79,211
|
78,213
|
||||||
Other assets
|
140,859
|
137,716
|
||||||
Total Assets
|
$ 495,423
|
$ 482,584
|
||||||
Notes payable and current portion
|
||||||||
of long-term debt
|
$ 246
|
$ -
|
||||||
Accounts payable
|
77,087
|
75,384
|
||||||
Other accrued liabilities
|
40,718
|
44,716
|
||||||
Total current liabilities
|
118,051
|
120,100
|
||||||
Long-term debt
|
74,500
|
70,000
|
||||||
Other obligations
|
17,129
|
18,234
|
||||||
Shareholders' equity
|
285,743
|
274,250
|
||||||
Total Liabilities and
|
||||||||
Shareholders' Equity
|
$ 495,423
|
$ 482,584
|
CTS CORPORATION AND SUBSIDIARIES
|
|||||||||||||||
OTHER SUPPLEMENTAL INFORMATION
|
|||||||||||||||
Earnings per Share
|
|||||||||||||||
The following table reconciles GAAP earnings per share to adjusted earnings per share for the Company:
|
|||||||||||||||
Three Months Ended
|
|||||||||||||||
July 3
|
July 4
|
||||||||||||||
2011
|
2010
|
||||||||||||||
GAAP net earnings per diluted share
|
$
|
0.12
|
$
|
0.17
|
|||||||||||
Tax affected charges to reported diluted
|
|||||||||||||||
earnings per share:
|
|||||||||||||||
Restructuring charge
|
0.01
|
-
|
|||||||||||||
Additional legal costs
|
0.01
|
-
|
|||||||||||||
Adjusted earnings per share
|
$
|
0.14
|
$
|
0.17
|
|||||||||||
Adjusted earnings per share is a non-GAAP financial measure. The most directly comparable GAAP financial measure is diluted earnings per share. CTS calculates adjusted earnings per share to exclude the per share impact of tax expense associated with our restructuring activities and additional legal costs incurred. We exclude the impact of these items because they are events which have a significant impact on comparable GAAP financial measures and could distort an evaluation of our normal operating performance. CTS uses adjusted earnings per share measures to evaluate overall performance, establish plans and perform strategic analysis. Using adjusted per share measures avoids distortion in the evaluation of operating results by eliminating the impact of events which are not related to normal operating performance.
|
|||||||||||||||
Because adjusted earnings per share measures are based on the exclusion 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 adjusted earnings per share measures are useful to its management, investors and stakeholders in that they:
|
|||||||||||||||
- provide a truer measure of CTS' operating performance,
|
|||||||||||||||
- reflect the results used by management in making decisions about the business, and
|
|||||||||||||||
- help review and project CTS' performance over time.
|
|||||||||||||||
We recommend that investors consider both actual and adjusted earnings per share measures in evaluating the performance of CTS with peer companies.
|
|||||||||||||||
Segment Operating Earnings
|
|||||||||||||||
Segment operating earnings is a non-GAAP financial measure outside the context of the Accounting Standards Codification ("ASC") 280 required reconciliation in the notes to the Company's financial statements. The most comparable GAAP term is operating earnings. Segment operating earnings always exclude the effects of charges for restructuring and goodwill impairment when they are incurred by the Company. Segment operating earnings exclude interest expense, and other non-operating income and income taxes according to how a particular segment is measured. CTS' management provides the segment operating earnings measure to provide consistency between segment information in its earnings release and the business segment discussion in the notes to its financial statements.
|