Cts Corporation · NYSE:CTS
Cts — Q3 2023 Earnings Presentation
17 slides from Cts's earnings presentation, Oct 26, 2023
Slide 1: CTS Corporation 3rd Quarter 2023 Earnings Call
CTS Corporation 3rd Quarter 2023 Earnings Call October 26, 2023
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: Advancing Strategic Priorities While Navigating Operating Challenges
Advancing Strategic Priorities While Navigating Operating Challenges 7 new non-Transportation customers Won first motor position development award 11 new EV platform wins $134.6M Revenue -11% YoY 34.5% Adjusted Gross Margin1 (210) bps YoY $0.54 Adj. Earnings Per Share1 $(0.08) YoY Q3 2023 Financials
Slide 4: Diversifying into Attractive Non-transportation End Markets
Diversifying into Attractive Non-transportation End Markets Industrial Aerospace & Defense Medical Revenue ($ Millions) Revenue ($ Millions) Revenue ($ Millions) Near-Term Softness as Customer Inventories Stabilize; Tailwinds from Megatrends Support Long-Term Strategy Key New Wins HVAC Tunable Lense
Slide 5: Continued Progress in Transportation – Won Motor Position Sensing Development Award
Continued Progress in Transportation – Won Motor Position Sensing Development Award ($ Millions) Revenue Total Booked Business1 ($ Billions) Chassis Height Sensor Accelerator Modules Brake Position Sensor Belt Tension Sensor Seat Track Position Sensor Seat Belt Buckle Switch Sensor 95% of existing l
Slide 6: FY 2023 Guidance
$2.25 $2.15 Notes: 1 CAGR based on mid-point of 2023 guidance 2 Adjusted Diluted EPS is a non-GAAP financial measure. Refer to Appendix for reconciliation of non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. FY 2023 Guida
Slide 7: 3rd Quarter Financial Results
3rd Quarter Financial Results
Slide 8: Q3 2023 Financial Results
Notes: All comparisons vs. same period in prior year unless otherwise noted. 1 Adj. Diluted EPS, Adj. Gross Margin and Adj. EBITDA Margin are non-GAAP financial measures. Refer to Appendix for reconciliation of non-GAAP financial measures to the most directly comparable financial measures calculated
Slide 9: Strong Balance Sheet Solid Foundation for Strategic M&A
Cash and Debt2 $30M Returned to Shareholders YTD Q3 20234 $46M YTD Q3 2023 Free Cash Flow3 Strong Balance Sheet Solid Foundation for Strategic M&A $11M YTD Q3 2023 Capital Expenditures Borrowed Total Facility Operating Cash Flow1 Prioritizing strong cash flow generation ($ Millions) ($ Millions) Not
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: Adjusted Diluted EPS Regulation G Schedules
Adjusted Diluted EPS Regulation G Schedules 2023 2022 2023 2022 2022 2021 2020 Diluted earnings (loss) per share 0.44 $ 0.37 $ 1.43 $ 1.38 $ 1.85 $ (1.30) $ $1.06 Restructuring charges 0.10 0.01 0.17 0.04 0.05 0.06 0.04 Foreign currency (gain) loss (0.01) 0.01 0.07 0.12 0.15 0.10 (0.16) Non-cash pen
Slide 14: Regulation G Schedules: Adjusted EBITDA Margin
Regulation G Schedules ($ Millions) Adjusted EBITDA Margin 2023 2022 2023 2022 2022 2021 2020 Net earnings (loss) 14.0 $ 11.8 $ 45.2 $ 44.6 $ 59.6 $ (41.9) $ 34.7 $ Net sales 134.6 $ 151.9 $ 425.7 $ 444.6 $ 586.9 $ 512.9 $ 424.1 $ Net earnings (loss) margin 10.4% 7.8% 10.6% 10.0% 10.2% -8.2% 8.2% De
Slide 15: Regulation G Schedules: Adjusted Gross Margin
Regulation G Schedules ($ Millions) Adjusted Gross Margin 2023 2022 2023 2022 2022 2021 2020 Gross margin 46.4 $ 53.3 $ 148.8 $ 159.5 $ 210.5 $ 184.6 $ 139.1 $ Net sales 134.6 $ 151.9 $ 425.7 $ 444.6 $ 586.9 $ 512.9 $ 424.1 $ Gross margin as a % of net sales 34.5% 35.1% 35.0% 35.9% 35.9% 36.0% 32.8%
Slide 16: Regulation G Schedules: Adjusted Net Earnings
Regulation G Schedules ($ Millions) Adjusted Net Earnings 2023 2022 2023 2022 2022 2021 2020 Net earnings (loss) (A) 14.0 $ 11.8 $ 45.2 $ 44.6 $ 59.6 $ (41.9) $ 34.7 $ Net sales 134.6 $ 151.9 $ 425.7 $ 444.6 $ 586.9 $ 512.9 $ 424.1 $ Net earnings (loss) as a % of net sales 10.4% 7.8% 10.6% 10.0% 10.
Slide 17: Free Cash Flow and Controllable Working Capital Regulation G Schedules
($ Millions) Free Cash Flow Regulation G Schedules ($ Millions) Controllable Working Capital 2023 2022 2023 2022 2022 2021 2020 Net cash provided by operating activities 22.1 $ 60.4 $ 56.7 $ 60.1 $ 121.2 $ 86.1 $ 76.8 $ Capital expenditures (2.7) (2.3) (11.2) (8.1) (14.3) (15.6) (14.9) Free cash flo