Indiana | 1-4639 | 35-0225010 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (1.R.S. Employer Identification No) |
2375 Cabot Drive | |
Lisle, IL | 60552 |
(Address of principal executive offices) | (Zip Code) |
Date: October 26, 2017 | CTS CORPORATION | |
By: | /s/ Luis F. Machado | |
Luis F. Machado | ||
Vice President, General Counsel & Secretary |
![]() | Press Release | |
October 26, 2017 | FOR IMMEDIATE RELEASE |
• | Sales were $106.2 million, up 6.6% year-over-year. Sales to automotive customers increased 5.8%, and sales of electronic components increased 7.9%. The Noliac acquisition, completed in May 2017, added $2.6 million of sales in the third quarter of 2017. |
• | Net earnings were $9.6 million or $0.29 per diluted share compared to $3.7 million or $0.11 per diluted share in the third quarter of 2016. |
• | Adjusted EPS was $0.31 per diluted share, up 11% from $0.28 in the third quarter of 2016. |
• | Total Booked Business was $1.698 billion at the end of the third quarter of 2017, an increase of $156 million from the second quarter of 2017. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net sales | $ | 106,243 | $ | 99,697 | $ | 312,083 | $ | 295,095 | |||||||
Cost of goods sold | 68,705 | 63,056 | 204,527 | 190,528 | |||||||||||
Gross Margin | 37,538 | 36,641 | 107,556 | 104,567 | |||||||||||
Selling, general and administrative expenses | 15,915 | 16,048 | 46,970 | 46,459 | |||||||||||
Research and development expenses | 6,380 | 6,284 | 18,432 | 18,414 | |||||||||||
Restructuring charges | 1,435 | 1,969 | 2,942 | 2,175 | |||||||||||
Loss (gain) on sale of assets | 697 | (150 | ) | 698 | (11,501 | ) | |||||||||
Operating earnings | 13,111 | 12,490 | 38,514 | 49,020 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (773 | ) | (917 | ) | (2,209 | ) | (2,746 | ) | |||||||
Interest income | 363 | 203 | 914 | 1,082 | |||||||||||
Other income (expense) | 1,258 | (46 | ) | 2,889 | (1,482 | ) | |||||||||
Total other income (expense) | 848 | (760 | ) | 1,594 | (3,146 | ) | |||||||||
Earnings before income taxes | 13,959 | 11,730 | 40,108 | 45,874 | |||||||||||
Income tax expense | 4,340 | 8,010 | 12,039 | 19,804 | |||||||||||
Net earnings | $ | 9,619 | $ | 3,720 | $ | 28,069 | $ | 26,070 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.29 | $ | 0.11 | $ | 0.85 | $ | 0.80 | |||||||
Diluted | $ | 0.29 | $ | 0.11 | $ | 0.84 | $ | 0.79 | |||||||
Basic weighted – average common shares outstanding: | 32,935 | 32,759 | 32,876 | 32,716 | |||||||||||
Effect of dilutive securities | 456 | 495 | 475 | 494 | |||||||||||
Diluted weighted – average common shares outstanding | 33,391 | 33,254 | 33,351 | 33,210 | |||||||||||
Cash dividends declared per share | $ | 0.04 | $ | 0.04 | $ | 0.12 | $ | 0.12 |
(Unaudited) | |||||||
September 30, | December 31, | ||||||
2017 | 2016 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 116,152 | $ | 113,805 | |||
Accounts receivable, net | 64,861 | 62,612 | |||||
Inventories, net | 35,308 | 28,652 | |||||
Other current assets | 13,453 | 10,638 | |||||
Total current assets | 229,774 | 215,707 | |||||
Property, plant and equipment, net | 84,291 | 82,111 | |||||
Other Assets | |||||||
Prepaid pension asset | 52,100 | 46,183 | |||||
Goodwill | 68,933 | 61,744 | |||||
Other intangible assets, net | 68,652 | 64,370 | |||||
Deferred income taxes | 37,850 | 45,839 | |||||
Other | 1,683 | 1,743 | |||||
Total other assets | 229,218 | 219,879 | |||||
Total Assets | $ | 543,283 | $ | 517,697 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current Liabilities | |||||||
Short-term notes payable | $ | — | $ | 1,006 | |||
Accounts payable | 45,479 | 40,046 | |||||
Accrued payroll and benefits | 11,372 | 11,369 | |||||
Accrued liabilities | 43,991 | 45,708 | |||||
Total current liabilities | 100,842 | 98,129 | |||||
Long-term debt | 82,300 | 89,100 | |||||
Post-retirement obligations | 6,823 | 7,006 | |||||
Other long-term obligations | 6,709 | 5,580 | |||||
Total Liabilities | 196,674 | 199,815 | |||||
Commitments and Contingencies | |||||||
Shareholders’ Equity | |||||||
Common stock | 304,726 | 302,832 | |||||
Additional contributed capital | 39,525 | 40,521 | |||||
Retained earnings | 435,099 | 410,979 | |||||
Accumulated other comprehensive loss | (89,485 | ) | (93,194 | ) | |||
Total shareholders’ equity before treasury stock | 689,865 | 661,138 | |||||
Treasury stock | (343,256 | ) | (343,256 | ) | |||
Total shareholders’ equity | 346,609 | 317,882 | |||||
Total Liabilities and Shareholders’ Equity | $ | 543,283 | $ | 517,697 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||
GAAP diluted earnings per share | $ | 0.29 | $ | 0.11 | $ | 0.84 | $ | 0.79 | |||||||
Tax affected charges to reported diluted earnings per share: | |||||||||||||||
Restructuring charges | 0.03 | 0.04 | 0.05 | 0.04 | |||||||||||
Increase in valuation allowance and revaluation of deferred taxes as a result of restructuring activities | — | 0.07 | — | 0.07 | |||||||||||
Increase (decrease) in the recognition of foreign valuation allowance | — | 0.04 | (0.01 | ) | 0.04 | ||||||||||
Loss (gain) on sale of facilities, net of expenses | 0.01 | — | 0.01 | (0.22 | ) | ||||||||||
Transaction costs | — | — | 0.01 | 0.01 | |||||||||||
Lease termination charge | — | 0.02 | — | 0.02 | |||||||||||
Foreign currency (gain) loss | (0.02 | ) | — | (0.06 | ) | 0.04 | |||||||||
Adjusted diluted earnings per share | $ | 0.31 | $ | 0.28 | $ | 0.84 | $ | 0.79 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||
Depreciation and amortization expense | $ | 5,388 | $ | 5,085 | $ | 15,061 | $ | 14,010 | |||||||
Stock-based compensation expense | $ | 827 | $ | 792 | $ | 2,514 | $ | 1,759 |