Cts Corporation · NYSE:CTS
Cts — Q1 2022 Earnings Presentation
18 slides from Cts's earnings presentation, Apr 28, 2022
Slide 1: CTS Corporation 1st Quarter 2022 Earnings Call
CTS Corporation 1st Quarter 2022 Earnings Call April 28, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This document contains statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, any financial or other guidance, sta
Slide 3: Q1 2022 – Delivered solid growth, further advances in diversification
Q1 2022 – Delivered solid growth, Further advances in diversification First Quarter • Organic growth +14% • Non-transportation revenues +30%, organic 28% $148M 37% $0.67 • Transportation revenues +4%, excl. Smart Actuators 0.4% Sales Adj. Gross Margin Adj. diluted EPS • Tewa acquisition added $1.4m
Slide 4: Non-transportation end markets – solid organic growth
Non-transportation end markets – solid organic growth Industrial Medical Aerospace & Defense High Resolution Ultrasound Momentum in inkjet printing – Strong mid to long term growth expected in packaging material demand imaging, wins in minimally invasive surgery from growth in e-commerce and other a
Slide 5: Strategic acquisitions fueling diversification – M&A as a catalyst
Strategic acquisitions fueling diversification – M&A as a catalyst ▪ Founded in 1964, based in Lublin, Poland ▪ Founded in 1952, based in Kvistgaard, Denmark ▪ Leading designer and manufacturer of high-performance, ▪ Closing subject to obtaining regulatory approvals and satisfaction high-quality the
Slide 6: >95% Light Vehicle portfolio carries over to Electric Vehicles
>95% Light Vehicle portfolio carries over to Electric Vehicles Traditional light vehicle Light vehicle key products New products for key product Portfolio For BEV/HEV/PHEV and ICE Electrification Accelerator Modules Chassis Height Sensor Accelerator Modules Chassis Height Sensor eBrake™ Seat Belt Bu
Slide 7: 5 EV platform wins in Q1 – Total 26
5 EV platform wins in Q1 – Total 26 2 GM platforms EV platform wins 26 8% of light vehicle sales from EV/Hybrid platforms, Goal: >25% by 2025 7
Slide 8: FY 2022 Guidance
FY 2022 Guidance Revenue Adjusted Diluted EPS ($ millions) $580 $2.45 $550 $2.20 $513 $1.93 $424 $1.12 2020 2021 2022E 2020 2021 2022E - Light vehicle market – US 13.5-14M, China ~24-25M, Europe 15-15.5M units, forecasts lowered from earlier this year - Robust commercial vehicle market through 2022
Slide 9: 1st Quarter 2022 Financial Results
1st Quarter 2022 Financial Results
Slide 10: Q1 2022 Financial Summary
Q1 2022 Financial Summary Highlights Revenue ($ millions) • Revenue up 15% vs. Q1 2021 and 11% vs $148 Q4 2021 $133 • Non-transportation sales up 30% vs Q1 $128 2021, organic growth +28% • Transportation sales up 4% vs Q1 2021, up 6% sequentially Q1 2021 Q4 2021 Q1 2022 • Transportation sales up 40
Slide 11: Consistently strong cash flow generation
Consistently strong cash flow generation Operating Cash Flow Cash and Debt ($ Millions) ($ Millions) $86 $400 Total Facility $77 $64 $126 $19 $50 Borrowed Cash Debt 2019 2020 2021 Q1 2022 Note: Cash and Debt balance as of Mar 31, 2022 Q1 2022 – $16M Q1 2022 – $5M 2021 – $71M 2021 – $14M Free Cash Fl
Slide 12: Q&A
Q&A cts
Slide 13: Appendix
Appendix cts
Slide 14: Financial Summary
Financial Summary ($ Millions, except percentages and Adjusted Diluted EPS) Q1 Full Year 2022 2021 2021 2020 2019 Net Sales $147.7 $128.4 $512.9 $424.1 $469.0 Adj. Gross Margin $54.9 $42.6 $184.6 $139.1 $157.6 Adj. Gross Margin % of Sales 37.2% 33.2% 36.0% 32.8% 33.6% Depreciation and Amortization $
Slide 15: Regulation G Schedules
Regulation G Schedules Adjusted Diluted EPS Q1 Q4 Full Year 2022 2021 2021 2021 2020 2019 Diluted earnings (loss) per share $ 0.63 $ 0.37 $ 0.28 $ (1.30) $ 1.06 $ 1.09 Tax affected adjustments to reported diluted earnings (loss) per share: Restructuring charges 0.01 - 0.04 0.06 0.04 0.18 Foreign cur
Slide 16: Regulation G Schedules
Regulation G Schedules Adjusted EBITDA Q1 Q4 Full Year ($ Millions, except percentages) 2022 2021 2021 2021 2020 2019 Net earnings (loss) $ 20.2 $ 12.0 $ 9.2 $ (41.9) $ 34.7 $ 36.1 Depreciation and amortization expense 6.7 6.8 6.7 26.9 26.7 24.6 Interest expense 0.5 0.6 0.5 2.1 3.3 2.6 Tax expense (
Slide 17: Regulation G Schedules
Regulation G Schedules Adjusted Gross Margin ($ Millions) Q1 Full Year 2022 2021 2021 2020 2019 Gross margin $ 54.3 $ 42.6 $ 184.6 $ 139.1 $ 157.6 Adjustment to reported gross margin: Inventory fair value step up 0.6 - - - - Adjusted gross margin $ 54.9 $ 42.6 $ 184.6 $ 139.1 $ 157.6 Sales $ 147.7 $
Slide 18: Regulation G Schedules
Regulation G Schedules Free Cash Flow ($ Millions) Q1 Full Year 2022 2021 2021 Net cash provided by operating activities $ 19.3 $ 20.1 $ 86.1 Capital expenditures $ (3.4) $ (1.6) (15.6) Free cash flow $ 15.9 $ 18.5 $ 70.5 Free cash flow as a % if Adj. Net Earnings 73.3% 123.1% 112.0% 18