Cts Corporation · NYSE:CTS
Cts — FY2021 Earnings Presentation
18 slides from Cts's earnings presentation, Feb 8, 2022
Slide 1: CTS Corporation 4th Quarter and Full Year 2021 Earnings Call
CTS Corporation 4th Quarter and Full Year 2021 Earnings Call February 8, 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: Q4 and Full Year 2021 Highlights
Q4 and Full Year 2021 Highlights Fourth Quarter • Organic growth +6% $133M 37% $0.49 • Non-transportation revenues +25% SALES Gross Margin Adj. diluted EPS • Transportation revenues -3% +8% +200 bps +14% • New business wins $185M; added 9 new customers • Strong execution despite supply chain challen
Slide 4: Diversification Strategy – Expanding range of technologies and products across end markets
Diversification Strategy – Expanding range of technologies and products across end markets 2017 2021 Long term target Revenues $423M Revenues $513M +10% CAGR 1 3% 5-15% 9% 4% 5% 9% 8% 10-20% < 50% 18% 55% 65% 24% Beginning in 2022, 20-30% sales to Telecom & IT end-market are included in the Industri
Slide 5: Capital Allocation and M&A
Capital Allocation and M&A Capital Allocation Priorities M&A Criteria Invest in Organic Attractive Enhance Technology Financials Portfolio Growth ~ 5% of Sales Strategic M&A Geographical Expand Product Expansion Growth From M&A & Applications Return cash to Shareholders Expand End Strengthen Custome
Slide 6: Our Sustainability Journey
Our Sustainability Journey • Supporting sustainable products - Vehicle electrification • Promoting health and safety - High-Definition Ultrasound - Intravenous Ultrasound - Industrial Automation • Established cross-functional ESG • Launched CTS CARES expanding our Steering Committee legacy of commun
Slide 7: FY 2022 Guidance
FY 2022 Guidance Revenue Adjusted Diluted EPS ($ millions) $550 $2.25 $525 $2.00 $513 $1.93 $424 $1.12 2020 2021 2022E 2020 2021 2022E - Light vehicle market – US 14-15M, China ~24M, Europe 17-18M units - Robust commercial vehicle market through 2022 Key - Supply chain challenges and inflationary pr
Slide 8: 4th Quarter and Full Year 2021 Financial Results
4th Quarter and Full Year 2021 Financial Results
Slide 9: Q4 2021 Financial Summary
Q4 2021 Financial Summary Revenue ($ millions) $133 Highlights • Revenue up 8% vs. Q4 2020 and vs $123 $122 Q3 2021 • Transportation sales down 3% vs Q4 2020, up 19% sequentially • Non-transportation sales up 25% vs Q4 2020 Q3 2021 Q4 2021 Q4 2020, organic growth 21% Gross Margin 34.7% 37.3% 36.7% •
Slide 10: Full Year 2021 Financial Summary
Full Year 2021 Financial Summary Revenue Highlights ($ millions) $513 • Revenue up 21% vs 2020, organic $469 growth 19% $424 • Double-digit revenue growth in all end markets • Transportation sales up 18% vs 2020 2019 2020 2021 • Non-transportation sales up 25%, Gross Margin 33.6% 32.8% 36.0% organic
Slide 11: Strong and Consistent Cash Flow Generation
Strong and Consistent Cash Flow Generation Operating Cash Flow Cash and Debt ($ Millions) ($ Millions) $86 $400 Total Facility $77 $64 $58 $141 $50 Borrowed Cash Debt 2018 2019 2020 2021 Note: Cash and Debt balance as of Dec 31, 2021 $71M $14M Returned to shareholders: Free Cash Flow, 112% conversio
Slide 12: Q&A
Q&A cts
Slide 13: Appendix
Appendix cts
Slide 14: Financial Summary
Financial Summary ($ Millions, except percentages and Adjusted Diluted EPS) 2021 2020 2019 Net Sales $512.9 $424.1 $469.0 Gross Margin $184.6 $139.1 $157.6 Gross Margin % of Sales 36.0% 32.8% 33.6% Depreciation and Amortization $26.9 $26.7 $24.6 Adjusted EBITDA $107.8 $77.5 $89.5 Adjusted EBITDA % o
Slide 15: Regulation G Schedules: Adjusted Net Earnings
Regulation G Schedules Adjusted Net Earnings ($ Millions, except percentages) 15
Slide 16: Regulation G Schedules: Adjusted Diluted EPS, Debt to Capitalization
Regulation G Schedules Adjusted Diluted EPS Total Debt to Capitalization ($ Millions, except percentages) 16
Slide 17: Regulation G Schedules: Adjusted EBITDA
Regulation G Schedules Adjusted EBITDA ($ Millions, except percentages) 17
Slide 18: Regulation G Schedules: Free Cash Flow
Regulation G Schedules Free Cash Flow ($ Millions) 18