Indiana
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1-4639
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35-0225010
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(State or Other Jurisdiction of Incorporation)
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(Commission File Numbers)
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(I.R.S. Employer Identification Nos.)
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905 West Boulevard North
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Elkhart, Indiana
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46514
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(Address of Principal Executive Offices)
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(Zip Code)
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q
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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q
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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q
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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q
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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
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Results of Operations and Financial Condition.
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99.1
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Press Release dated February 6, 2014
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·
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Sales from continuing operations were $102.4 million, a 35% increase from fourth quarter of 2012.
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·
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GAAP loss per share was $0.09 compared to earnings per share of $0.26 in the same period last year. Adjusted EPS was $0.25 compared to $0.18 in fourth quarter of 2012.
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·
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Sales from continuing operations were $409.5 million, an increase of 34% from 2012.
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·
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GAAP loss per share was $0.12 compared to earnings per share of $0.59 for 2012. Adjusted EPS was $0.82 compared to $0.64 in 2012.
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·
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Cash from operating activities was $38 million compared to $41.7 million in 2012. Capital expenditures were $14.0 million compared to $13.5 million in 2012.
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CTS CORPORATION AND SUBSIDIARIES
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CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS / (LOSS) - UNAUDITED
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(In thousands, except per share amounts)
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||||||||||||||||
Three Months Ended
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Twelve Months Ended
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|||||||||||||||
December 31,
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December 31,
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December 31,
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December 31,
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|||||||||||||
2013
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2012
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2013
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2012
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Net sales
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$ | 102,386 | $ | 75,675 | $ | 409,461 | $ | 304,481 | ||||||||
Costs and expenses:
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Cost of goods sold
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72,220 | 53,290 | 288,108 | 212,965 | ||||||||||||
Insurance recovery for business interruption
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- | (637 | ) | - | (637 | ) | ||||||||||
Selling, general and administrative expenses
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17,227 | 17,699 | 69,889 | 63,071 | ||||||||||||
Research and development expenses
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5,481 | 5,328 | 23,222 | 20,918 | ||||||||||||
Gain on sale-leaseback
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- | (10,334 | ) | - | (10,334 | ) | ||||||||||
Restructuring charge
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2,348 | 2,588 | 10,455 | 3,437 | ||||||||||||
Operating earnings
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5,110 | 7,741 | 17,787 | 15,061 | ||||||||||||
Other income / (expense):
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Interest income / (expense), net
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19 | (311 | ) | (1,463 | ) | (849 | ) | |||||||||
Other income
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1,359 | 414 | 1,739 | 232 | ||||||||||||
Total other income / (expense)
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1,378 | 103 | 276 | (617 | ) | |||||||||||
Earnings before income taxes
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6,488 | 7,844 | 18,063 | 14,444 | ||||||||||||
Income tax expense
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1,811 | 1,913 | 16,066 | 952 | ||||||||||||
Earnings from continuing operations
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4,677 | 5,931 | 1,997 | 13,492 | ||||||||||||
(Loss) / earnings from discontinued operations, net of tax
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(7,658 | ) | 2,901 | (5,926 | ) | 6,841 | ||||||||||
Net earnings
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$ | (2,981 | ) | $ | 8,832 | $ | (3,929 | ) | $ | 20,333 | ||||||
Net earnings / (loss) per share:
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Basic
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Continuing operations
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$ | 0.14 | $ | 0.17 | $ | 0.06 | $ | 0.40 | ||||||||
Discontinued operations
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(0.23 | ) | 0.09 | (0.18 | ) | 0.20 | ||||||||||
Net (loss) earnings attributable to CTS Corporation
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$ | (0.09 | ) | $ | 0.26 | (0.12 | ) | $ | 0.60 | |||||||
Diluted
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Continuing operations
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$ | 0.14 | $ | 0.17 | 0.06 | $ | 0.39 | |||||||||
Discontinued operations
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(0.23 | ) | 0.09 | (0.18 | ) | 0.20 | ||||||||||
Net (loss) earnings attributable to CTS Corporation
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$ | (0.09 | ) | $ | 0.26 | (0.12 | ) | $ | 0.59 | |||||||
Cash dividends declared per share
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$ | 0.040 | $ | 0.035 | $ | 0.145 | $ | 0.140 | ||||||||
Average common shares outstanding:
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Basic
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33,594 | 33,640 | 33,601 | 33,922 | ||||||||||||
Diluted
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34,314 | 34,330 | 34,249 | 34,523 | ||||||||||||
CTS CORPORATION AND SUBSIDIARIES
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OTHER SUPPLEMENTAL INFORMATION
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Earnings / (Loss) per Share
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The following table reconciles GAAP earnings per share to adjusted earnings per share for the Company:
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Three Months Ended
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Twelve Months Ended
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|||||||||||||||
December 31,
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December 31,
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December 31,
|
December 31,
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|||||||||||||
2013
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2012
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2013
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2012
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GAAP (loss) / earnings per share
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$ | (0.09 | ) | $ | 0.26 | $ | (0.12 | ) | $ | 0.59 | ||||||
Tax affected charges to reported diluted earnings / (loss) per share:
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Restructuring and related charges
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0.08 | 0.09 | 0.28 | 0.19 | ||||||||||||
Additional legal costs
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- | 0.02 | - | 0.04 | ||||||||||||
CEO transition costs
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0.03 | - | 0.07 | 0.01 | ||||||||||||
Tax impact of cash repatriation
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- | - | 0.31 | - | ||||||||||||
Tax asset write-off related to restructuring
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- | - | 0.03 | - | ||||||||||||
Acquisition-related costs
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- | 0.04 | - | 0.04 | ||||||||||||
Gain on sale-leaseback
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- | (0.23 | ) | - | (0.23 | ) | ||||||||||
EMS divestiture
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0.23 | - | 0.25 | - | ||||||||||||
Adjusted earnings per share
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$ | 0.25 | $ | 0.18 | $ | 0.82 | $ | 0.64 | ||||||||
Additional Information
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The following table includes other financial information not presented in the preceding financial statements.
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Three Months Ended
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Twelve Months Ended
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$ In thousands
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December 31,
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December 31,
|
December 31,
|
December 31,
|
||||||||||||
Expense
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2013 | 2012 | 2013 | 2012 | ||||||||||||
Depreciation and Amortization
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$ | 4,492 | $ | 4,372 | $ | 21,169 | $ | 19,615 | ||||||||
Equity Based Compensation
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$ | 1,078 | $ | 382 | $ | 4,219 | $ | 4,099 | ||||||||
CTS Corporation and Subsidiaries
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Condensed Consolidated Balance Sheets - Unaudited
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(In thousands of dollars)
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December 31,
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December 31,
|
|||||||
2013
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2012
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|||||||
Cash and cash equivalents
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$ | 124,368 | $ | 109,571 | ||||
Accounts receivable, net
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62,667 | 89,342 | ||||||
Inventories
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32,226 | 81,752 | ||||||
Other current assets
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17,007 | 28,633 | ||||||
Total current assets
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236,268 | 309,298 | ||||||
Property, plant & equipment, net
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74,870 | 93,725 | ||||||
Other assets
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169,127 | 158,156 | ||||||
Total Assets
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$ | 480,265 | $ | 561,179 | ||||
Notes payable and current portion
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of long-term debt
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$ | - | $ | - | ||||
Accounts payable
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47,052 | 67,973 | ||||||
Accrued liabilities
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47,902 | 47,056 | ||||||
Total current liabilities
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94,954 | 115,029 | ||||||
Long-term debt
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75,000 | 153,500 | ||||||
Other obligations
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13,416 | 24,892 | ||||||
Shareholders' equity
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296,895 | 267,758 | ||||||
Total Liabilities and
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Shareholders' Equity
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$ | 480,265 | $ | 561,179 | ||||