Slide 1: CTS Corporation 3rd Quarter 2024 Earnings Call
CTS Corporation 3rd Quarter 2024 Earnings Call October 29, 2024
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements Readers are cautioned that the statements contained in this document regarding expectations of our performance or other matters that may affect our business, results of operations, or financial condition are, or may be deemed to be, “forward-
Slide 3: Q3 2024 – Driving Operational Execution, Continued Focus on Diversification
Q3 2024 – Driving Operational Execution, Continued Focus on Diversification Third Quarter • Diversified end market2 revenues up 18% year- over-year, up 5% sequentially $132M 38.6% $0.63 • Transportation revenues down 17% year-over-year, Revenue Adj. Gross Margin1 Adj. Diluted EPS1 (2)% +416 bps +17%
Slide 4: Medical and Aerospace & Defense End Market Update
End Market Update Revenue1 ($ Millions) • Q3 Sales up 3% year-over-year $68 • Multiple wins for medical ultrasound, drug $64 Medical $53 delivery, and a medical device for a pacemaker application. • Added a new customer for vision correction 2022 FY 2023 FY YTD 2024 • New application for sonic lumen
Slide 5: Industrial and Transportation End Market Update
End Market Update Revenue1 ($ Millions) • Q3 Sales up 2% year-over-year, gradual $171 recovery with distribution and OEMs Industrial $129 • Multiple wins for EMC, switches, industrial $94 printing, flow metering and temperature sensing. 2022 FY 2023 FY YTD 2024 • Added a new customer in Europe for a
Slide 6: FY 2024 Guidance
FY 2024 Guidance Revenue Adjusted Diluted EPS 2 ($ Millions) 2020-2024 2020-2024 CAGR 5% 1 CAGR 18% 1 $587 $525 3 $2.46 $2.25 3 $550 $515 $2.05 $513 $2.22 $1.93 $424 $1.12 2020 2021 2022 2023 2024F 2020 2021 2022 2023 2024F Key Outlook Assumptions - Continued progress in medical, aerospace and defen
Slide 7: 3rd Quarter Financial Results
3rd Quarter Financial Results
Slide 8: Q3 2024 Financial Summary
Q3 2024 Financial Summary Results Highlights ($ Millions, except percentages and per share amounts) • Revenue down 2% vs. Q3 2023 Revenue $135 $130 $132 • Diversified end market revenues up 18% vs. Q3 2023 • Transportation revenues down 17% year-over-year primarily due to lower commercial vehicle sa
Slide 9: Prioritizing strong cash flow generation
Prioritizing strong cash flow generation Operating Cash Flow1 Cash and Debt2 ($ Millions) ($ Millions) $121 $400 Total Facility $89 $73 $95 $103 Borrowed 2022 FY 2023 FY YTD 2024 Cash Debt $61M $39M 3 4 YTD 2024 Free Cash Flow Cash Returned to Shareholders YTD 2024 $13M Strong Balance Sheet YTD 2024
Slide 10: Q&A
Q&A cts
Slide 11: Appendix
Appendix cts
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures From time to time, CTS may use non-GAAP financial measures in discussing CTS’ business. These measures are intended to supplement, not replace, CTS’ presentation of its financial results in accordance with U.S. GAAP. CTS believes that the non-GAAP financial measures prese
Slide 13: Regulation G Schedules: Adjusted Gross Margin
Regulation G Schedules Adjusted Gross Margin ($ Millions, except percentages) Three Months Ended Nine Months Ended September 30, September 30, Three Months Twelve Months Ended Ended June 30, December 31, 2024 2023 2024 2023 2024 2023 2022 2021 2012 Gross margin $ 49.8 $ 46.4 $ 141.3 $ 148.8 $ 46.4 $
Slide 14: Regulation G Schedules: Adjusted Operating Earnings
Regulation G Schedules Adjusted Operating Earnings ($ Millions, except percentages) Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, December 31, 2024 2023 2024 2023 2023 2022 2021 Operating earnings $ 21.5 $ 18.2 $ 53.8 $ 58.8 $ 75.1 $ 93.0 $ 76.5 Net sales $ 132
Slide 15: Regulation G Schedules: Adjusted EBITDA Margin
Regulation G Schedules Adjusted EBITDA Margin ($ Millions, except percentages) Three Months Ended Nine Months Ended Three Months Twelve Months Ended September 30, September 30, Ended June 30, December 31, 2024 2023 2024 2023 2024 2023 2022 2021 Net earnings (loss) $ 18.7 $ 14.0 $ 44.5 $ 45.2 $ 14.7
Slide 16: Regulation G Schedules: Adjusted Net Earnings and Adjusted Diluted EPS
Regulation G Schedules Adjusted Net Earnings and Adjusted Diluted Earnings Per Share ($ Millions, except percentages and per share amounts) Three Months Ended Nine Months Ended Three Months Ended June 30, September 30, September 30, 2024 2024 2023 2023 2024 2024 2023 2023 2024 2024 Per share Per sha
Slide 17: Regulation G Schedules: Adjusted Net Earnings and Adjusted Diluted EPS
Regulation G Schedules Adjusted Net Earnings and Adjusted Diluted Earnings Per Share ($ Millions, except percentages and per share amounts) Twelve Months Ended December 31, 2023 2023 2022 2022 2021 2021 2020 2020 Per share Per share Per share Per share Net earnings (loss) (A) $ 60.5 $ 1.92 $ 59.6 $
Slide 18: Regulation G Schedules: Footnotes
Regulation G Schedules a) Reflected in selling, general and administrative and other (expense) income, net. b) Reflected in cost of goods sold. c) Reflected in restructuring charges. d) Reflected in other (expense) income, net. e) Reflected in income tax expense (income). For 2021, the discrete tax
Slide 19: Regulation G Schedules: Free Cash Flow
Regulation G Schedules Free Cash Flow ($ Millions, except percentages) Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, December 31, 2024 2023 2024 2023 2023 2022 2021 Net cash provided by operating activities $ 35.4 $ 22.1 $ 73.3 $ 56.7 $ 88.8 $ 121.2 $ 86.1 Capi