Cts Corporation · NYSE:CTS
Cts — Investor Presentation (November 2003)
9 slides from Cts's investor presentation, Nov 5, 2003
Slide 1: CTS Corporation
CTS Corporation This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's expectations, certain assumptions and currently available information. Actual results may differ materially f
Slide 2: Segments and Markets
Segments Automotive Communications Mobile Computer Communications Infrastructure Other Segments and Markets Sensors and Electronic Components Electronics Manufacturing Services Markets 56% 44% 7% 39% 11% 27% 16% 2003 Projected
Slide 3: Near-Term Business Strategy
Near-Term Business Strategy Communications Electronics $96M - 37% Other * $7M - 2% Automotive 23% Resistor/Electro 11% North America 53% Aggressively Grow Grow Increase Profitability Electronic Components Automotive Sensors Electronic Manufacturing Services 0.29 0.27 0.44 Electronics Manufacturing S
Slide 4: Improving Financial Performance
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -5.7 -3.6 -2.4 0 0.5 0.6 2 1.6 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 East 126 113 118 111 116 106 117 108 Improving Financial Performance * Data shown excludes all restructuring and related one-time charges, asset impairments, and customer reimbursement and income tax adjustments gains. Ne
Slide 5: Cost Structure Overhaul
Cost Structure Overhaul Other 28% Interest 10% Salary/Fringes 50% Depreciation 12% East 28 10 50 12 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Fixed Costs Reduced by $95M Per Year Other 28% Depreciation 12% Interest 10% Salary/Fringes 50% Breakeven Revenue Point Reduced to $440M Per Year Q1 Q2
Slide 6: Balance Sheet Management
Balance Sheet Management SALES RECEIVABLES INVENTORIES 54% 57% 64% Q3 2003 vs. Q4 2000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Receivables - Net 110 98.3 91 81.6 80.1 73.3 64.9 63.8 59.8 65.7 62.8 Inventory - Net 97.2 79.2 64 50.1 43.7 43.1 41 36.3 36.1 35.1 37.4 2001 2002 97.2 110.0 37.4 62.8 '96 '97 '98
Slide 7: Balance Sheet Management
Balance Sheet Management Convertible Sub-Debt Asset Sales Operating Cash Flow New Equity Sources of Funds 25 21 40 87 New Equity $87M Convertible Sub-Debt $25M Asset Sales ? $21M Operating Cash Flow $40M Sources of Funds $173 Million Q2 2001 Q4 2001 Q2 2002 Q4 2002 Q2 2003 Q3 2003 Bank Debt 187 111
Slide 8: Capital Structure
Capital Structure 1999 2000 2001 2002 Q1 2003 Q2 2003 Q3 2003 Sales 0.514 0.442 0.386 0.265 0.244 0.241 0.221 Debt to Capital Bank Debt IRB Convertible Sub Debt Equity 0.04 0.11 0.07 0.78 Debt Structure Convertible Sub Debt IRB Bank Credit Equity Leverage Ratio Within our Target Range of 20% - 30%.
Slide 9: Other Financial Data
Other Financial Data Appendix 1 CTS Corporation Reconciliation of Net Earnings (Loss) to Adjusted Net Earnings (Loss) ($ in millions) 2003 2002 2001 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Net earnings (loss) $ 6.1 $ 2.0 $ 0.6 $ 0.5 $ (13.8 ) $ (2.7 ) $ (1.9 ) $ (27.0 ) Charges (credits) to reported net earnings (l