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)
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(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))
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Item 2.02
|
Results of Operations and Financial Condition.
|
($ in thousands)
|
Components and Sensors
|
EMS
|
Total
|
|||||||
Third Quarter of 2012
|
||||||||||
Net sales to external customers
|
$
|
75,565
|
$
|
61,792
|
$
|
137,357
|
||||
Segment operating earnings before corporate and shared services charges
|
$
|
9,492
|
$
|
4,202
|
$
|
13,694
|
||||
Corporate and shared services charges
|
(4,185
|
)
|
|
(1,827
|
)
|
|
(6,012
|
)
|
||
Segment operating earnings
|
$
|
5,307
|
$
|
2,375
|
$
|
7,682
|
||||
Expenses not allocated to business segments:
|
||||||||||
- Restructuring and related charges
|
|
(878
|
)
|
|||||||
Total operating earnings
|
$
|
6,804
|
||||||||
Second Quarter of 2012
|
||||||||||
Net sales to external customers
|
$
|
76,823
|
$
|
77,471
|
$
|
154,294
|
||||
Segment operating earnings before corporate and shared services charges
|
$
|
8,398
|
$
|
6,086
|
$
|
14,484
|
||||
Corporate and shared services charges
|
(3,034
|
)
|
(1,906
|
)
|
(4,940
|
)
|
||||
Segment operating earnings
|
$
|
5,364
|
$
|
4,180
|
$
|
9,544
|
||||
Expenses not allocated to business segments:
|
||||||||||
- Restructuring and related charges
|
(3,831
|
)
|
||||||||
Total operating earnings
|
$
|
5,713
|
||||||||
Third Quarter of 2011
|
||||||||||
Net sales to external customers
|
$
|
69,089
|
$
|
76,981
|
$
|
146,070
|
||||
Segment operating earnings before corporate and shared services charges
|
$
|
7,738
|
$
|
5,870
|
$
|
13,608
|
||||
Corporate and shared services charges
|
(3,557
|
)
|
(2,297
|
)
|
(5,854
|
)
|
||||
Segment operating earnings(1)
|
$
|
4,181
|
$
|
3,573
|
$
|
7,754
|
||||
(1)
|
EMS segment’s operating earnings of $3,573 includes $2,687 of insurance recovery for property damage related to the fire at CTS Scotland’s manufacturing facility.
|
CTS CORPORATION AND SUBSIDIARIES
|
||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED
|
||||||||||||
(In thousands, except per share amounts)
|
||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||
September 30
|
October 2
|
September 30
|
October 2
|
|||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||
Net sales
|
$ 137,357
|
$ 146,070
|
$ 438,620
|
$ 444,507
|
||||||||
Costs and expenses:
|
||||||||||||
Cost of goods sold
|
110,763
|
118,610
|
364,039
|
360,496
|
||||||||
Insurance recovery for business interruption
|
(4,192)
|
(1,113)
|
(15,242)
|
(1,892)
|
||||||||
Selling, general and administrative expenses
|
19,387
|
18,343
|
58,169
|
55,074
|
||||||||
Research and development expenses
|
4,350
|
5,163
|
15,590
|
14,782
|
||||||||
Insurance recovery for property damage
|
-
|
(2,687)
|
(1,769)
|
(2,687)
|
||||||||
Restructuring charge
|
245
|
-
|
3,384
|
694
|
||||||||
Operating earnings
|
6,804
|
7,754
|
14,449
|
18,040
|
||||||||
Other (expense) / income:
|
||||||||||||
Interest expense, net
|
(159)
|
(190)
|
(528)
|
(721)
|
||||||||
Other income / (expense)
|
763
|
(65)
|
297
|
1,808
|
||||||||
Total other income / (expense)
|
604
|
(255)
|
(231)
|
1,087
|
||||||||
Earnings before income taxes
|
7,408
|
7,499
|
14,218
|
19,127
|
||||||||
Income tax expense
|
1,491
|
1,636
|
2,717
|
4,016
|
||||||||
Net earnings
|
$ 5,917
|
$ 5,863
|
$ 11,501
|
$ 15,111
|
||||||||
Net earnings per share:
|
||||||||||||
Basic
|
$ 0.17
|
$ 0.17
|
$ 0.34
|
$ 0.44
|
||||||||
Diluted
|
$ 0.17
|
$ 0.17
|
$ 0.33
|
$ 0.43
|
||||||||
Cash dividends declared per share
|
$ 0.035
|
$ 0.03
|
$ 0.105
|
$ 0.09
|
||||||||
Average common shares outstanding:
|
||||||||||||
Basic
|
33,923
|
34,375
|
34,017
|
34,347
|
||||||||
Diluted
|
34,471
|
34,994
|
34,588
|
35,026
|
CTS CORPORATION AND SUBSIDIARIES
|
||||||||
OTHER SUPPLEMENTAL INFORMATION
|
||||||||
Earnings per Share
|
||||||||
The following table reconciles GAAP diluted earnings per share to adjusted earnings per share for the Company:
|
||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||
September 30
|
October 2
|
September 30
|
October 2
|
|||||
2012
|
2011
|
2012
|
2011
|
|||||
GAAP diluted earnings per share
|
$ 0.17
|
$ 0.17
|
$ 0.33
|
$ 0.43
|
||||
Tax affected charges to reported diluted
|
||||||||
loss per share:
|
||||||||
Restructuring and related charges
|
0.02
|
-
|
0.10
|
0.01
|
||||
Additional legal costs
|
-
|
-
|
-
|
0.01
|
||||
Takata and CEO search costs
|
0.01
|
-
|
0.02
|
-
|
||||
Adjusted earnings per share
|
$ 0.20
|
$ 0.17
|
$ 0.45
|
$ 0.45
|
||||
Additional Information
|
||||||||
The following table includes other financial information not presented in the preceding financial statements.
|
||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||
$ In thousands
|
September 30
|
October 2
|
September 30
|
October 2
|
||||
Expense
|
2012
|
2011
|
2012
|
2011
|
||||
Depreciation and Amortization
|
$ 4,937
|
$ 4,410
|
$ 14,583
|
$ 13,176
|
||||
Equity Based Compensation
|
1,010
|
1,002
|
3,181
|
3,363
|
||||
Non-GAAP financial measures are discussed below.
|
CTS Corporation and Subsidiaries
|
||||||||
Condensed Consolidated Balance Sheets - Unaudited
|
||||||||
(In thousands of dollars)
|
||||||||
September 30
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Cash and cash equivalents
|
$ 88,620
|
$ 76,412
|
||||||
Accounts receivable, net
|
81,014
|
88,345
|
||||||
Inventories
|
75,007
|
92,540
|
||||||
Other current assets
|
24,512
|
26,089
|
||||||
Total current assets
|
269,153
|
283,386
|
||||||
Property, plant & equipment, net
|
89,721
|
84,860
|
||||||
Other assets
|
122,502
|
112,569
|
||||||
Total Assets
|
$ 481,376
|
$ 480,815
|
||||||
Notes payable and current portion
|
||||||||
of long-term debt
|
$ -
|
$ -
|
||||||
Accounts payable
|
59,207
|
80,468
|
||||||
Other accrued liabilities
|
36,866
|
43,769
|
||||||
Total current liabilities
|
96,073
|
124,237
|
||||||
Long-term debt
|
94,500
|
74,400
|
||||||
Other obligations
|
18,450
|
18,881
|
||||||
Shareholders' equity
|
272,353
|
263,297
|
||||||
Total Liabilities and
|
||||||||
Shareholders' Equity
|
$ 481,376
|
$ 480,815
|
||||||