Indiana | 1-4639 | 35-0225010 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (1.R.S. Employer Identification No) |
2375 Cabot Drive | |
Lisle, Illinois | 60532 |
(Address of principal executive offices) | (Zip Code) |
By: | /s/ Luis F. Machado | |
Luis F. Machado | ||
Vice President, General Counsel & Secretary |
Press Release | ||
October 28, 2016 | FOR IMMEDIATE RELEASE |
• | Sales were $99.7 million. Excluding $3.2 million from the single crystal acquisition, sales grew 6.4% compared to the third quarter of 2015 and 0.9% sequentially. Sales to automotive customers increased 5.2% year-over-year and declined 0.4% sequentially. Organic sales growth for electronic components was 9.2% year-over-year and 3.9% sequentially. |
• | GAAP earnings were $3.7 million or $0.11 per diluted share, which included $0.11 for one-time unfavorable tax items, $0.04 for restructuring, and $0.02 for a one-time lease termination fee. A GAAP loss of $4.8 million or $0.15 per share was reported in the third quarter of 2015, which included $0.28 for a non-recurring environmental charge, $0.06 for restructuring, and $0.04 for one-time unfavorable tax items. |
• | Adjusted EPS was $0.28 per diluted share versus $0.26 in the second quarter of 2016 and $0.23 in the third quarter of 2015. |
• | New business awards were $103 million in the third quarter and $356 million year-to-date. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 27, | September 30, | September 27, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales | $ | 99,697 | $ | 90,646 | $ | 295,095 | $ | 289,028 | |||||||
Cost of goods sold | 63,056 | 59,200 | 190,528 | 192,073 | |||||||||||
Gross Margin | 36,641 | 31,446 | 104,567 | 96,955 | |||||||||||
Selling, general and administrative expenses | 16,048 | 12,689 | 46,459 | 43,623 | |||||||||||
Research and development expenses | 6,284 | 5,692 | 18,414 | 16,378 | |||||||||||
Non-recurring environmental charge | — | 14,541 | — | 14,541 | |||||||||||
Restructuring and impairment charges | 1,969 | 2,373 | 2,175 | 5,229 | |||||||||||
(Gain) loss on sale of assets | (150 | ) | 1 | (11,501 | ) | 2 | |||||||||
Operating earnings (loss) | 12,490 | (3,850 | ) | 49,020 | 17,182 | ||||||||||
Other (expense) income: | |||||||||||||||
Interest expense | (917 | ) | (714 | ) | (2,746 | ) | (1,955 | ) | |||||||
Interest income | 203 | 713 | 1,082 | 2,354 | |||||||||||
Other expense | (46 | ) | (3,072 | ) | (1,482 | ) | (4,641 | ) | |||||||
Total other expense | (760 | ) | (3,073 | ) | (3,146 | ) | (4,242 | ) | |||||||
Earnings (loss) before income taxes | 11,730 | (6,923 | ) | 45,874 | 12,940 | ||||||||||
Income tax expense (benefit) | 8,010 | (2,163 | ) | 19,804 | (7,667 | ) | |||||||||
Net earnings (loss) | $ | 3,720 | $ | (4,760 | ) | $ | 26,070 | $ | 20,607 | ||||||
Earnings (loss) per share: | |||||||||||||||
Basic | $ | 0.11 | $ | (0.15 | ) | $ | 0.80 | $ | 0.62 | ||||||
Diluted | $ | 0.11 | $ | (0.15 | ) | $ | 0.79 | $ | 0.61 | ||||||
Basic weighted – average common shares outstanding: | 32,759 | 32,770 | 32,716 | 33,083 | |||||||||||
Effect of dilutive securities | 495 | — | 494 | 485 | |||||||||||
Diluted weighted – average common shares outstanding | 33,254 | 32,770 | 33,210 | 33,568 | |||||||||||
Cash dividends declared per share | $ | 0.04 | $ | 0.04 | $ | 0.12 | $ | 0.12 |
(Unaudited) | |||||||
September 30, | December 31, | ||||||
2016 | 2015 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 114,433 | $ | 156,928 | |||
Accounts receivable, net | 62,380 | 54,563 | |||||
Inventories, net | 29,178 | 24,600 | |||||
Other current assets | 10,852 | 9,863 | |||||
Total current assets | 216,843 | 245,954 | |||||
Property, plant and equipment, net | 79,329 | 69,872 | |||||
Other Assets | |||||||
Prepaid pension asset | 39,678 | 33,779 | |||||
Goodwill | 61,744 | 33,865 | |||||
Other intangible assets, net | 65,930 | 34,758 | |||||
Deferred income taxes | 48,963 | 63,809 | |||||
Other | 1,084 | 1,336 | |||||
Total other assets | 217,399 | 167,547 | |||||
Total Assets | $ | 513,571 | $ | 483,373 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 43,290 | $ | 40,299 | |||
Accrued payroll and benefits | 11,876 | 7,147 | |||||
Accrued liabilities | 45,969 | 47,174 | |||||
Total current liabilities | 101,135 | 94,620 | |||||
Long-term debt | 96,000 | 90,700 | |||||
Post retirement obligations | 7,066 | 7,230 | |||||
Other long-term obligations | 3,102 | 9,169 | |||||
Total Liabilities | 207,303 | 201,719 | |||||
Shareholders’ Equity | |||||||
Common stock | 302,156 | 300,909 | |||||
Additional contributed capital | 40,567 | 41,166 | |||||
Retained earnings | 403,979 | 381,840 | |||||
Accumulated other comprehensive loss | (97,178 | ) | (99,005 | ) | |||
Total shareholders’ equity before treasury stock | 649,524 | 624,910 | |||||
Treasury stock | (343,256 | ) | (343,256 | ) | |||
Total shareholders’ equity | 306,268 | 281,654 | |||||
Total Liabilities and Shareholders’ Equity | $ | 513,571 | $ | 483,373 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 27, 2015 | September 30, 2016 | September 27, 2015 | ||||||||||||
GAAP diluted earnings per share | $ | 0.11 | $ | (0.15 | ) | $ | 0.79 | $ | 0.61 | ||||||
Tax affected charges to reported diluted earnings per share: | |||||||||||||||
Restructuring and related charges | 0.04 | 0.06 | 0.04 | 0.13 | |||||||||||
Increase in valuation allowance and revaluation of deferred taxes as a result of restructuring activities | 0.07 | — | 0.07 | ||||||||||||
Non-recurring environmental charge | — | 0.28 | — | 0.28 | |||||||||||
Increase in the recognition of foreign valuation allowance | 0.04 | 0.03 | 0.04 | 0.03 | |||||||||||
Increase in the recognition of uncertain tax benefits | — | — | — | 0.15 | |||||||||||
Change in treatment of certain foreign taxes | — | 0.01 | — | (0.46 | ) | ||||||||||
Gain on sale of facilities, net of expenses | — | — | (0.22 | ) | — | ||||||||||
Lease termination charge | 0.02 | 0.02 | |||||||||||||
Foreign currency loss | — | — | 0.04 | — | |||||||||||
Transaction costs | — | — | 0.01 | — | |||||||||||
Adjusted diluted earnings per share | $ | 0.28 | $ | 0.23 | $ | 0.79 | $ | 0.74 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 27, 2015 | September 30, 2016 | September 27, 2015 | ||||||||||||
Depreciation and amortization expense | $ | 5,085 | $ | 3,894 | $ | 14,010 | $ | 11,987 | |||||||
Equity-based compensation expense | $ | 791 | $ | 293 | $ | 1,759 | $ | 2,655 |
• | 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. |