Note P – Subsequent Events

On October 2, 2013, CTS sold its EMS business to Benchmark Electronics, Inc. (“Benchmark”) for $75 million in cash. Included are five manufacturing facilities located in Moorpark, CA, Londonderry, NH, Bangkok, Thailand, Matamoros, Mexico, and San Jose, CA and approximately 1,000 employees. The transaction sharpens CTS’ focus on its Components and Sensors business, and provides additional capital to drive growth and enhance shareholder value. The gain/loss on the sale has not yet been finalized. Management expects the gain/loss amount to be determined in the fourth quarter of 2013 and will be disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.

The unaudited condensed pro forma balance sheet of EMS and CTS excluding EMS as of September 29, 2013, assuming that the disposition of the EMS business had occurred as of that date, is provided as follows:


(In Thousands)	EMS Business Sold		Pro Forma CTS Post-EMS Sale
Cash and cash equivalents	$	—	$	169,830
Receivables, net of allowance		32,709		64,100
Inventories		50,997		33,608
Other current assets		6,373		23,290
Property, plant and equipment		14,001		75,479
Other assets		5,022		137,554

Total Assets	$	109,102	$	503,861

Current liabilities	$	38,394	$	85,037
Long-term liabilities		30		148,437

Total Liabilities	$	38,424	$	233,474

The following unaudited pro forma condensed statement of earnings/(loss) for the nine months ended September 29, 2013 is presented as though the Company sold EMS as of January 1, 2013. The unaudited pro forma condensed statement of earnings/(loss) was prepared by adjusting the results of the Company to exclude the results of EMS and estimates of the effects of the sale of EMS on the combined financial results.


	Nine Months Ended September 29, 2013
	(In thousands, except per share data) (Unaudited)
Revenues	$	307,075
Net loss	$	(1,709	)
Loss per common share
Basic	$	(0.05	)
Diluted	$	(0.05	)

Future results may vary significantly from the results reflected in the pro forma financial information because of future events and transactions, as well as other factors.