Cts Corporation · NYSE:CTS
Cts — Q2 2023 Earnings Presentation
17 slides from Cts's earnings presentation, Jul 25, 2023
Slide 1: CTS Corporation 2nd Quarter 2023 Earnings Call
CTS Corporation 2nd Quarter 2023 Earnings Call July 25, 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: Q2 2023 Highlights – Significant New Business Momentum Across End Markets
Q2 2023 Highlights – Significant New Business Momentum Across End Markets Q2 2023 Financials Highlights $145.2M Revenue Won first eBrake award TM +0.1% YoY 35.0% Adjusted Gross Margin 1 13 new EV platform wins (120) bps YoY $0.59 1 10 new non-Transportation Adj. Earnings Per Share $(0.03) YoY custom
Slide 4: Diversifying into Attractive Non-transportation End Markets
Diversifying into Attractive Non-transportation End Markets Industrial Medical Aerospace & Defense Revenue Revenue Revenue ($ Millions) ($ Millions) ($ Millions) $81 $34 $27 $73 $33 $24 $25 $62 $24 1H 2021 1H 2022 1H 2023 1H 2021 1H 2022 1H 2023 1H 2021 1H 2022 1H 2023 Key New Wins HVAC Preventive M
Slide 5: Continued Progress in Transportation – Won First eBrake Award
Continued Progress in Transportation – Won First eBrakeTM Award Revenue Significant Growth Opportunity from Electrification ($ Millions) 95% of existing light vehicle New products expand $156 $154 portfolio transitions to EVs future content per vehicle $147 Accelerator Modules Chassis Height Sensor
Slide 6: FY 2023 Guidance
FY 2023 Guidance Revenue Adjusted Diluted EPS2 ($ Millions) 2020-2023 2020-2023 CAGR 11% 1 CAGR 27% 1 $585 $2.40 $587 $565 $2.46 $2.20 $513 $1.93 $424 $1.12 2020 2021 2022 2023 Est 2020 2021 2022 2023 Est Key Outlook Assumptions - Stable demand from medical & aerospace/defense customers - Softness i
Slide 7: 2nd Quarter Financial Results
2nd Quarter Financial Results
Slide 8: Q2 2023 Financial Summary
Q2 2023 Financial Summary Results Highlights ($ Millions, except EPS) Revenue • Revenue flat with Q2 2022 $145 $145 − Acquisitions added $6.5 million − FX unfavorable impact $1.1 million • Transportation revenue up 10% Q2 2022 Q2 2023 − Recovery from supply chain related issues • Non-transportation
Slide 9: Prioritizing strong cash flow generation
Prioritizing strong cash flow generation Operating Cash Flow1 Cash and Debt2 ($ Millions) ($ Millions) $121 $400 Total Facility $86 $151 $35 $77 Borrowed 2021 2022 YTD Q2 2023 Cash Debt $26M $20M YTD Q2 2023 Free Cash Flow3 Returned to Shareholders YTD Q2 2023 $8M Strong Balance Sheet YTD Q2 2023 Ca
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 Diluted EPS
Regulation G Schedules Adjusted Diluted EPS Q2 Year-to-Date Full Year 2023 2022 2023 2022 2022 2021 2020 Diluted earnings (loss) per share $ 0.41 $ 0.39 $ 0.98 $ 1.02 $ 1.85 $ (1.30) $1.06 Tax affected adjustments to reported diluted earnings (loss) per share: Restructuring charges 0.05 0.02 0.07 0.
Slide 14: Regulation G Schedules – Adjusted EBITDA Margin
Regulation G Schedules Adjusted EBITDA Margin ($ Millions) Q2 Year-to-Date Full Year 2023 2022 2023 2022 2022 2021 2020 Net earnings (loss) $ 12.9 $ 12.6 $ 31.2 $ 32.8 $ 59.6 $ (41.9) $ 34.7 Net sales $ 145.2 $ 145.0 $ 291.2 $ 292.7 $ 586.9 $ 512.9 $ 424.1 Net earnings (loss) margin 8.9% 8.7% 10.7%
Slide 15: Regulation G Schedules – Adjusted Gross Margin
Regulation G Schedules Adjusted Gross Margin ($ Millions) Q2 Year-to-Date Full Year 2023 2022 2023 2022 2022 2021 2020 Gross margin $ 50.7 $ 51.8 $ 102.4 $ 106.2 $ 210.5 $ 184.6 $ 139.1 Net sales $ 145.2 $ 145.0 $ 291.2 $ 292.7 $ 586.9 $ 512.9 $ 424.1 Gross margin as a % of net sales 35.0% 35.8% 35.
Slide 16: Regulation G Schedules – Adjusted Net Earnings
Regulation G Schedules Adjusted Net Earnings ($ Millions) Q2 Year-to-Date Full Year 2023 2022 2023 2022 2022 2021 2020 Net earnings (loss) (A) $ 12.9 $ 12.6 $ 31.2 $ 32.8 $ 59.6 $ (41.9) $ 34.7 Net sales $ 145.2 $ 145.0 $ 291.2 $ 292.7 $ 586.9 $ 512.9 $ 424.1 Net earnings (loss) as a % of net sales
Slide 17: Regulation G Schedules – Free Cash Flow
Regulation G Schedules Free Cash Flow ($ Millions) Q2 Year-to-Date Full Year 2023 2022 2023 2022 2022 2021 2020 Net cash provided by operating activities $ 23.4 $ 16.1 $ 34.6 $ 35.4 $ 121.2 $ 86.1 $ 76.8 Capital expenditures (3.9) (3.6) (8.5) (7.0) (14.3) (15.6) (14.9) Free cash flow $ 19.5 $ 12.5 $