Slide 1: CTS Corporation 4th Quarter and Full-Year 2024 Earnings Call
CTS Corporation 4th Quarter and Full-Year2024 Earnings Call February 4, 2025
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: Q4 and Full-Year 2024 – Continued Progress on Diversification, Driving Operational Execution
Q4 and Full-Year 2024 – Continued Progress on Diversification, Driving Operational Execution • Solid growth from diversified end markets2 Fourth Quarter - Revenue +28% for Q4 2024 $127M 38.1% $0.53 - Excluding SyQwest, Q4 2024 revenue +8% Revenue Adj. Gross Margin1 Adj. Diluted EPS1 - Revenue +7% fo
Slide 4: Aerospace & Defense and Medical End Markets Update
End Markets Update Revenue1 ($ Millions) • FY 2024 Sales up 3% year-over-year • Multiple wins for diagnostics, therapeutics and $70 Medical $68 $64 medical laboratory application • Added three new customers – an echo- cardiography application, liver tumor 2022 FY 2023 FY 2024 FY treatment applicatio
Slide 5: Industrial and Transportation End Markets Update
End Markets Update Revenue1 ($ Millions) • FY 2024 sales down 3% year over year $171 • Q4 Sales up 26% year-over-year – gradual Industrial $129 $125 recovery with distribution and OEMs • Multiple wins across various applications • Added a new customer in a broadband 2022 FY 2023 FY 2024 FY communica
Slide 6: FY 2025 Guidance
FY 2025 Guidance Revenue Adjusted Diluted EPS 1 ($ Millions) $587 $550 2 $2.35 2 $2.46 $550 $520 $2.20 $513 $516 $2.22 $2.17 $1.93 $424 $1.12 2020 2021 2022 2023 2024 2025F 2020 2021 2022 2023 2024 2025F Key Outlook Assumptions - Continued progress on growth in diversified end-markets - Gradual reco
Slide 7: 4th Quarter and Full-Year 2024 Financial Results
4th Quarter and Full-Year 2024 Financial Results
Slide 8: Q4 2024 Financial Summary
Q4 2024 Financial Summary Results Highlights ($ Millions, except percentages and per share amounts) Revenue $125 $132 $127 • Revenue up 2% vs. Q4 2023 • Diversified end market revenues up 28% vs. Q4 2023 • SyQwest added $11m in revenue Q4 2023 Q3 2024 Q4 2024 • Transportation revenues down 18% year-
Slide 9: Full-Year 2024 Financial Summary
Full-Year 2024 Financial Summary Results Highlights ($ Millions, except percentages and per share amounts) Revenue • Revenue down 6% year over year $550 $516 • Diversified end market revenues up 7% vs. 2023 • SyQwest added $14m in revenue FY 2023 FY 2024 • Transportation revenues down 17% – lower Ne
Slide 10: Prioritizing strong cash flow generation
Prioritizing strong cash flow generation Operating Cash Flow1 Cash and Debt2 ($ Millions) ($ Millions) $121 $400 Total Facility $99 $89 $94 $91 Borrowed 2022 FY 2023 FY 2024 FY Cash Debt $81M $48M 3 4 FY 2024 Free Cash Flow Cash Returned to Shareholders FY 2024 $19M Strong Balance Sheet FY 2024 Capi
Slide 11: Q&A
Q&A cts
Slide 12: Appendix
Appendix cts
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures From time to time, CTS may use non-GAAP financial measures in discussing CTS’ business. These measures are intended to supplement, not replace, CTS’ presentation of its financial results in accordance with U.S. GAAP. CTS believes that the non-GAAP financial measures prese
Slide 14: Regulation G Schedules: Adjusted Gross Margin
Regulation G Schedules Adjusted Gross Margin ($ Millions, except percentages) Three Months Ended Three Months Ended Twelve Months Ended December 31, September 30, December 31, 2024 2023 2024 2024 2023 2022 2012 Gross margin $ 47.9 $ 42.1 $ 49.8 $ 189.2 $ 190.9 $ 210.5 $ 91.5 Net sales $ 127.4 $ 124.
Slide 15: Regulation G Schedules: Adjusted Operating Earnings
Regulation G Schedules Adjusted Operating Earnings ($ Millions, except percentages) Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 2022 Operating earnings $ 19.0 $ 16.3 $ 72.8 $ 75.1 $ 93.0 Net sales $ 127.4 $ 124.7 $ 515.8 $ 550.4 $ 586.9 Operating earnings as
Slide 16: Regulation G Schedules: Adjusted EBITDA Margin
Regulation G Schedules Adjusted EBITDA Margin ($ Millions, except percentages) Three Months Ended Three Months Ended Twelve Months Ended December 31, September 30, December 31, 2024 2023 2024 2024 2023 2022 Net earnings (loss) $ 13.6 $ 15.3 $ 18.7 $ 58.1 $ 60.5 $ 59.6 Net sales $ 127.4 $ 124.7 $ 132
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) Three Months Ended Three Months Ended December 31, September 30, 2024 2024 2023 2023 2024 2024 Per share Per share Per share Net earnings (A) $ 13.6 $ 0.45 $ 15
Slide 18: 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, 2024 2024 2023 2023 2022 2022 2021 2021 2020 2020 Per share Per share Per share Per share Per share Net earnings (loss) (A) $ 5
Slide 19: 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 2020, the discrete tax
Slide 20: Regulation G Schedules: Free Cash Flow
Regulation G Schedules Free Cash Flow ($ Millions, except percentages) Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 2022 Net cash provided by operating activities $ 26.0 $ 32.1 $ 99.3 $ 88.8 $ 121.2 Capital expenditures (6.1) (3.5) (18.6) (14.7) (14.3) Free ca