Company Quick10K Filing
CTS
Price32.39 EPS1
Shares33 P/E25
MCap1,074 P/FCF26
Net Debt-101 EBIT57
TEV973 TEV/EBIT17
TTM 2019-09-30, in MM, except price, ratios
10-Q 2021-03-31 Filed 2021-04-29
10-K 2020-12-31 Filed 2021-02-25
10-Q 2020-09-30 Filed 2020-10-29
10-Q 2020-06-30 Filed 2020-07-31
10-Q 2020-03-31 Filed 2020-04-24
10-K 2019-12-31 Filed 2020-02-20
10-Q 2019-09-30 Filed 2019-10-24
10-Q 2019-06-30 Filed 2019-07-25
10-Q 2019-03-31 Filed 2019-04-25
10-K 2018-12-31 Filed 2019-02-22
10-Q 2018-09-30 Filed 2018-10-25
10-Q 2018-06-30 Filed 2018-07-26
10-Q 2018-03-31 Filed 2018-04-26
10-K 2017-12-31 Filed 2018-02-23
10-Q 2017-09-30 Filed 2017-10-26
10-Q 2017-06-30 Filed 2017-07-27
10-Q 2017-03-31 Filed 2017-04-27
10-K 2016-12-31 Filed 2017-02-24
10-Q 2016-09-30 Filed 2016-10-28
10-Q 2016-06-30 Filed 2016-07-29
10-Q 2016-03-31 Filed 2016-05-03
10-K 2015-12-31 Filed 2016-02-24
10-Q 2015-09-27 Filed 2015-10-27
10-Q 2015-06-28 Filed 2015-07-28
10-Q 2015-03-29 Filed 2015-04-28
10-K 2014-12-31 Filed 2015-02-24
10-Q 2014-09-28 Filed 2014-10-28
10-Q 2014-06-29 Filed 2014-07-29
10-Q 2014-03-30 Filed 2014-04-29
10-K 2013-12-31 Filed 2014-03-03
10-Q 2013-09-29 Filed 2013-10-29
10-Q 2013-06-30 Filed 2013-07-25
10-Q 2013-03-31 Filed 2013-04-25
10-K 2012-12-31 Filed 2013-02-25
10-Q 2012-09-30 Filed 2012-10-24
10-Q 2012-07-01 Filed 2012-07-24
10-Q 2012-04-01 Filed 2012-04-25
10-K 2011-12-31 Filed 2012-02-24
10-Q 2011-10-02 Filed 2011-10-26
10-Q 2011-07-03 Filed 2011-07-26
10-Q 2011-04-03 Filed 2011-04-27
10-K 2010-12-31 Filed 2011-02-24
10-Q 2010-10-03 Filed 2010-10-27
10-Q 2010-07-04 Filed 2010-07-27
10-Q 2010-04-04 Filed 2010-04-28
10-K 2009-12-31 Filed 2010-02-23
8-K 2021-02-11 Other Events, Exhibits
8-K 2021-02-09 Earnings, Exhibits
8-K 2021-02-09 Regulation FD, Exhibits
8-K 2020-12-15 Exhibits
8-K 2020-10-29
8-K 2020-10-29
8-K 2020-07-31
8-K 2020-07-31
8-K 2020-07-02
8-K 2020-05-15
8-K 2020-05-01
8-K 2020-04-24
8-K 2020-04-23
8-K 2020-04-01
8-K 2020-03-05
8-K 2020-02-04
8-K 2020-02-04
8-K 2019-11-08
8-K 2019-10-25
8-K 2019-10-24
8-K 2019-08-01
8-K 2019-07-31
8-K 2019-07-25
8-K 2019-07-25
8-K 2019-05-17
8-K 2019-05-02
8-K 2019-04-30
8-K 2019-04-29
8-K 2019-04-25
8-K 2019-02-14
8-K 2019-02-08
8-K 2019-02-05
8-K 2019-02-05
8-K 2018-12-28
8-K 2018-10-25
8-K 2018-10-25
8-K 2018-07-27
8-K 2018-07-26
8-K 2018-05-22
8-K 2018-05-18
8-K 2018-05-18
8-K 2018-04-27
8-K 2018-04-26
8-K 2018-04-04
8-K 2018-02-07
8-K 2018-02-06
8-K 2018-01-16

CTS 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Note 1 - Basis of Presentation
Note 2 - Revenue Recognition
Note 3 - Business Acquisitions
Note 4 - Accounts Receivable, Net
Note 5 - Inventories, Net
Note 6 - Property, Plant and Equipment, Net
Note 7 - Retirement Plans
Note 8 - Goodwill and Other Intangible Assets
Note 9 - Costs Associated with Exit and Restructuring Activities
Note 10 - Accrued Expense and Other Liabilities
Note 11 - Commitments and Contingencies
Note 12 - Leases
Note 13 - Debt
Note 14 - Derivative Financial Instruments
Note 15 - Accumulated Other Comprehensive (Loss) Income
Note 16 - Shareholders' Equity
Note 17 - Stock - Based Compensation
Note 18 - Fair Value Measurements
Note 19 - Income Taxes
Note 20 - Recent Accounting Pronouncements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations ("Md&A")
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity
Item 6. Exhibits
EX-31.A cts-ex31a_8.htm
EX-31.B cts-ex31b_9.htm
EX-32.A cts-ex32a_7.htm
EX-32.B cts-ex32b_6.htm

CTS Earnings 2021-03-31

Balance SheetIncome StatementCash Flow
0.70.60.40.30.10.02012201420172020
Assets, Equity
0.20.10.10.0-0.0-0.12012201420172020
Rev, G Profit, Net Income
0.10.10.0-0.0-0.1-0.12012201420172020
Ops, Inv, Fin

cts-10q_20210331.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended March 31, 2021

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from                            to                           

Commission File Number: 1-4639

 

CTS CORPORATION

(Exact name of registrant as specified in its charter)

 

 

IN

 

35-0225010

(State or other jurisdiction of

incorporation or organization)

 

(IRS Employer

Identification Number)

 

4925 Indiana Avenue

 

 

Lisle IL

 

60532

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (630) 577-8800

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

 

Trading Symbol(s)

 

Name of Each Exchange on Which Registered

Common stock, without par value

 

CTS

 

New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No    

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes     No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of April 26, 2021: 32,348,360.

 

 

 

 


 

 

CTS CORPORATION AND SUBSIDIARIES

TABLE OF CONTENTS

 

 

 

Page

 

 

 

PART I. FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

Item 1.

 

Financial Statements

 

3

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Earnings (Unaudited) For the Three Months Ended March 31, 2021 and March 31, 2020

 

3

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) For the Three Months Ended March 31, 2021 and March 31, 2020

 

4

 

 

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets As of March 31, 2021 (Unaudited) and December 31, 2020

 

5

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows (Unaudited) For the Three Months Ended March 31, 2021 and March 31, 2020

 

6

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Shareholder's Equity (Unaudited) For the Three Months Ended March 31, 2021 and March 31, 2020

 

7

 

 

 

 

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements ‑ (Unaudited)

 

9

 

 

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

25

 

 

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures about Market Risk

 

32

 

 

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

33

 

 

 

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

33

 

 

 

 

 

 

 

Item 1A.

 

Risk Factors

 

33

 

 

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

33

 

 

 

 

 

 

 

Item 6.

 

Exhibits

 

34

 

 

 

 

 

 

SIGNATURES

 

35

 

 

2

 


 

 

PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements

CTS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED

(In thousands, except per share amounts)

 

 

 

Three Months Ended

 

 

 

 

March 31,

 

 

March 31,

 

 

 

 

2021

 

 

2020

 

 

Net sales

 

$

128,427

 

 

$

103,075

 

 

Cost of goods sold

 

 

85,836

 

 

 

70,176

 

 

Gross margin

 

 

42,591

 

 

 

32,899

 

 

Selling, general and administrative expenses

 

 

18,325

 

 

 

16,759

 

 

Research and development expenses

 

 

5,687

 

 

 

7,408

 

 

Restructuring charges

 

 

81

 

 

 

240

 

 

Operating earnings

 

 

18,498

 

 

 

8,492

 

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(555

)

 

 

(851

)

 

Interest income

 

 

202

 

 

 

331

 

 

Other expense, net

 

 

(3,356

)

 

 

(1,982

)

 

Total other expense, net

 

 

(3,709

)

 

 

(2,502

)

 

Earnings before income taxes

 

 

14,789

 

 

 

5,990

 

 

Income tax expense

 

 

2,799

 

 

 

2,182

 

 

Net earnings

 

$

11,990

 

 

$

3,808

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.37

 

 

$

0.12

 

 

Diluted

 

$

0.37

 

 

$

0.12

 

 

Basic weighted – average common shares outstanding:

 

 

32,319

 

 

 

32,466

 

 

Effect of dilutive securities

 

 

301

 

 

 

327

 

 

Diluted weighted – average common shares outstanding:

 

 

32,620

 

 

 

32,793

 

 

Cash dividends declared per share

 

$

0.04

 

 

$

0.04

 

 

 

See notes to unaudited condensed consolidated financial statements.

3

 


 

CTS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS UNAUDITED

(In thousands of dollars)

 

 

 

Three Months Ended

 

 

 

 

March 31,

 

 

March 31,

 

 

 

 

2021

 

 

2020

 

 

Net earnings

 

$

11,990

 

 

$

3,808

 

 

Other comprehensive earnings (loss):

 

 

 

 

 

 

 

 

 

Changes in fair market value of derivatives, net of tax

 

 

124

 

 

 

(4,414

)

 

Changes in unrealized pension cost, net of tax

 

 

1,422

 

 

 

1,285

 

 

Cumulative translation adjustment, net of tax

 

 

12

 

 

 

(139

)

 

Other comprehensive earnings (loss)

 

$

1,558

 

 

$

(3,268

)

 

Comprehensive earnings

 

$

13,548

 

 

$

540

 

 

 

See notes to unaudited condensed consolidated financial statements.

4

 


 

CTS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of dollars)

 

 

(Unaudited)

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

103,392

 

 

$

91,773

 

Accounts receivable, net

 

 

81,571

 

 

 

80,981

 

Inventories, net

 

 

47,558

 

 

 

45,870

 

Other current assets

 

 

14,115

 

 

 

14,607

 

Total current assets

 

 

246,636

 

 

 

233,231

 

Property, plant and equipment, net

 

 

94,848

 

 

 

97,437

 

Operating lease assets, net

 

 

23,620

 

 

 

23,281

 

Other Assets

 

 

 

 

 

 

 

 

Prepaid pension asset

 

 

56,502

 

 

 

56,642

 

Goodwill

 

 

109,468

 

 

 

109,497

 

Other intangible assets, net

 

 

76,931

 

 

 

79,121

 

Deferred income taxes

 

 

24,192

 

 

 

24,250

 

Other

 

 

2,468

 

 

 

2,590

 

Total other assets

 

 

269,561

 

 

 

272,100

 

Total Assets

 

$

634,665

 

 

$

626,049

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

53,315

 

 

$

50,489

 

Operating lease obligations

 

 

3,271

 

 

 

3,294

 

Accrued payroll and benefits

 

 

12,688

 

 

 

12,978

 

Accrued expenses and other liabilities

 

 

37,436

 

 

 

38,171

 

Total current liabilities

 

 

106,710

 

 

 

104,932

 

Long-term debt

 

 

50,000

 

 

 

54,600

 

Long-term operating lease obligations

 

 

23,510

 

 

 

23,163

 

Long-term pension obligations

 

 

7,290

 

 

 

7,466

 

Deferred income taxes

 

 

6,892

 

 

 

7,010

 

Other long-term obligations

 

 

4,547

 

 

 

5,196

 

Total Liabilities

 

 

198,949

 

 

 

202,367

 

Commitments and Contingencies (Note 11)

 

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

 

Common stock

 

 

313,008

 

 

 

311,190

 

Additional contributed capital

 

 

39,616

 

 

 

41,654

 

Retained earnings

 

 

549,977

 

 

 

539,281

 

Accumulated other comprehensive loss

 

 

(94,363

)

 

 

(95,921

)

Total shareholders’ equity before treasury stock

 

 

808,238

 

 

 

796,204

 

Treasury stock

 

 

(372,522

)

 

 

(372,522

)

Total shareholders’ equity

 

 

435,716

 

 

 

423,682

 

Total Liabilities and Shareholders’ Equity

 

$

634,665

 

 

$

626,049

 

 

See notes to unaudited condensed consolidated financial statements.

5

 


 

CTS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  UNAUDITED

(In thousands of dollars)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2021

 

 

2020

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net earnings

 

$

11,990

 

 

$

3,808

 

Adjustments to reconcile net earnings to net cash provided by operating

   activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

6,800

 

 

 

6,532

 

Pension and other post-retirement plan expense

 

 

1,980

 

 

 

673

 

Stock-based compensation

 

 

1,219

 

 

 

228

 

Asset impairment charges

 

 

 

 

 

1,016

 

Deferred income taxes

 

 

63

 

 

 

333

 

(Gain) on foreign currency hedges, net of cash

 

 

(42

)

 

 

(23

)

Changes in assets and liabilities, net of acquisition:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(1,121

)

 

 

6,176

 

Inventories

 

 

(2,052

)

 

 

(4,005

)

Operating lease assets

 

 

(340

)

 

 

(473

)

Other assets

 

 

168

 

 

 

799

 

Accounts payable

 

 

2,864

 

 

 

1,252

 

Accrued payroll and benefits

 

 

(210

)

 

 

(237

)

Operating lease liabilities

 

 

325

 

 

 

542

 

Accrued expenses and other liabilities

 

 

(1,398

)

 

 

(4,627

)

Pension and other post-retirement plans

 

 

(136

)

 

 

(67

)

Net cash provided by operating activities

 

 

20,110

 

 

 

11,927

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(1,638

)

 

 

(4,570

)

Net cash used in investing activities

 

 

(1,638

)

 

 

(4,570

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Payments of long-term debt

 

 

(241,600

)

 

 

(764,550

)

Proceeds from borrowings of long-term debt

 

 

237,000

 

 

 

816,050

 

Purchase of treasury stock

 

 

 

 

 

(5,304

)

Dividends paid

 

 

(1,291

)

 

 

(1,299

)

Taxes paid on behalf of equity award participants

 

 

(1,402

)

 

 

(1,903

)

Net cash (used in) provided by financing activities

 

 

(7,293

)

 

 

42,994

 

Effect of exchange rate changes on cash and cash equivalents

 

 

440

 

 

 

363

 

Net increase in cash and cash equivalents

 

 

11,619

 

 

 

50,714

 

Cash and cash equivalents at beginning of period

 

 

91,773

 

 

 

100,241

 

Cash and cash equivalents at end of period

 

$

103,392

 

 

$

150,955

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

378

 

 

$

678

 

Cash paid for income taxes, net

 

$

3,510

 

 

$

1,183

 

Non-cash financing and investing activities:

 

 

 

 

 

 

 

 

Capital expenditures incurred but not paid

 

$

1,019

 

 

$

1,843

 

 

See notes to unaudited condensed consolidated financial statements.

6

 


 

 

 

CTS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED

(in thousands of dollars)

 

The following summarizes the changes in total equity for the three months ended March 31, 2021:

 

 

 

Common

Stock

 

 

Additional

Contributed

Capital

 

 

Retained

Earnings

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Treasury

Stock

 

 

Total

 

Balances at December 31, 2020

 

$

311,190

 

 

$

41,654

 

 

$

539,281

 

 

$

(95,921

)

 

$

(372,522

)

 

$

423,682

 

Net earnings

 

 

 

 

 

 

 

 

11,990

 

 

 

 

 

 

 

 

 

11,990

 

Changes in fair market value of derivatives, net of tax

 

 

 

 

 

 

 

 

 

 

 

124

 

 

 

 

 

 

124

 

Changes in unrealized pension cost, net of tax

 

 

 

 

 

 

 

 

 

 

 

1,422

 

 

 

 

 

 

1,422

 

Cumulative translation adjustment, net of tax

 

 

 

 

 

 

 

 

 

 

 

12

 

 

 

 

 

 

12

 

Cash dividends of $0.04 per share

 

 

 

 

 

 

 

 

(1,294

)

 

 

 

 

 

 

 

 

(1,294

)

Issued shares on vesting of restricted stock units

 

 

1,818

 

 

 

(3,218

)

 

 

 

 

 

 

 

 

 

 

 

(1,400

)

Stock compensation

 

 

 

 

 

1,180

 

 

 

 

 

 

 

 

 

 

 

 

1,180

 

Balances at March 31, 2021

 

$

313,008

 

 

$

39,616

 

 

$

549,977

 

 

$

(94,363

)

 

$

(372,522

)

 

$

435,716

 

 

See notes to unaudited condensed consolidated financial statements.

7

 


 

CTS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED

(in thousands of dollars)

 

The following summarizes the changes in total equity for the three months ended March 31, 2020:

 

 

 

Common

Stock

 

 

Additional

Contributed

Capital

 

 

Retained

Earnings

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Treasury

Stock

 

 

Total

 

Balances at December 31, 2019

 

$

307,932

 

 

$

43,689

 

 

$

509,766

 

 

$

(91,726

)

 

$

(364,442

)

 

$

405,219

 

Net earnings

 

 

 

 

 

 

 

 

3,808

 

 

 

 

 

 

 

 

 

3,808

 

Changes in fair market value of derivatives, net of tax

 

 

 

 

 

 

 

 

 

 

 

(4,414

)

 

 

 

 

 

(4,414

)

Changes in unrealized pension cost, net of tax

 

 

 

 

 

 

 

 

 

 

 

1,285

 

 

 

 

 

 

1,285

 

Cumulative translation adjustment, net of tax

 

 

 

 

 

 

 

 

 

 

 

(139

)

 

 

 

 

 

(139

)

Cash dividends of $0.04 per share

 

 

 

 

 

 

 

 

(1,298

)