Slide 1: CTS Corporation 1st Quarter 2024 Earnings Call
CTS Corporation 1st Quarter 2024 Earnings Call May 1, 2024
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: Q1 2024 – Driving Operational Execution and Continued Focus on Diversification
Q1 2024 – Driving Operational Execution and Continued Focus on Diversification First Quarter • Non-transportation revenues up 7% sequentially, down 17% year-over-year $126M 36.2% $0.47 • Transportation revenues down 4% sequentially, Revenue Adj Gross Margin1 Adj. Diluted EPS1 (14)% +86 bps (24)% dow
Slide 4: End Market Update: Medical and Aerospace & Defense
End Market Update Revenue1 ($ Millions) • Bookings up vs. prior year and sequentially $68 $64 • Expecting growth through 2024 Medical • Two new customers – one for a disposable Q1 $17 blood analyzer, one for therapeutic 2022 2023 2024 ultrasound • Advanced development in progress for single crystal
Slide 5: End Market Update: Industrial and Transportation
End Market Update Revenue1 ($ Millions) • Bookings improved sequentially from OEMs, $171 Industrial distribution inventory reduction progressing $129 • Q1 revenue up 25% sequentially, expecting Q1 $31 continued recovery during rest of 2024 2022 2023 2024 • Added three new customers for temperature 1
Slide 6: FY 2024 Guidance
FY 2024 Guidance Revenue Adjusted Diluted EPS 2 ($ Millions) 2020-2024 2020-2024 CAGR 7% 1 CAGR 19% 1 $570 $2.35 $587 $530 $2.46 $550 $2.22 $2.10 $513 $1.93 $424 $1.12 2020 2021 2022 2023 2024F 2020 2021 2022 2023 2024F Key Outlook Assumptions - Continued progress in medical, aerospace and defense e
Slide 7: 1st Quarter Financial Results
1st Quarter Financial Results
Slide 8: Q1 2024 Financial Summary
Q1 2024 Financial Summary Results Highlights ($ Millions, except percentages and per share amounts) • Revenue up 1% vs. Q4 2023, down 14% vs. Q1 2023 Revenue $146 • Non-transportation revenues up 7% sequentially, $125 $126 down 17% year-over-year • Transportation revenues down 4% sequentially, down
Slide 9: Prioritizing strong cash flow generation
Prioritizing strong cash flow generation Operating Cash Flow1 Cash and Debt1 ($ Millions) ($ Millions) $400 Total Facility $19 $11 $18 $162 $68 Borrowed Q1 2022 Q1 2023 Q1 2024 Cash Debt $14M $13M 2 3 Q1 2024 Free Cash Flow Cash Returned to Shareholders Q1 2024 $4M Strong Balance Sheet Q1 2024 Capit
Slide 10: Q&A
Q&A cts
Slide 11: Appendix
Appendix cts
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures From time to time, CTS may use non-GAAP financial measures in discussing CTS’ business. These measures are intended to supplement, not replace, CTS’ presentation of its financial results in accordance with U.S. GAAP. CTS believes that the non-GAAP financial measures prese
Slide 13: Regulation G Schedules: Adjusted Gross Margin
Regulation G Schedules Adjusted Gross Margin ($ Millions, except percentages) Three Months Ended Three Months Ended Twelve Months Ended March 31, December 31, December 31, 2024 2023 2023 2023 2022 2021 2012 Gross margin $ 45.1 $ 51.7 $ 42.1 $ 190.9 $ 210.5 $ 184.6 $ 91.5 Net sales $ 125.7 $ 146.0 $
Slide 14: Regulation G Schedules: Adjusted Operating Earnings
Regulation G Schedules Adjusted Operating Earnings ($ Millions, except percentages) Three Months Ended Twelve Months Ended March 31, December 31, 2024 2023 2023 2022 2021 Operating earnings $ 14.5 $ 22.2 $ 75.1 $ 93.0 $ 76.5 Net sales $ 125.7 $ 146.0 $ 550.4 $ 586.9 $ 512.9 Operating earnings as a %
Slide 15: Regulation G Schedules: Adjusted EBITDA Margin
Regulation G Schedules Adjusted EBITDA Margin ($ Millions, except percentages) Three Months Ended Three Months Ended Twelve Months Ended March 31, December 31, December 31, 2024 2023 2023 2023 2022 2021 Net earnings (loss) $ 11.1 $ 18.3 $ 15.3 $ 60.5 $ 59.6 $ (41.9) Net sales $ 125.7 $ 146.0 $ 124.7
Slide 16: 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, March 31, 2024 2024 2023 2023 2023 2023 Per share Per share Per share Net earnings (A) $ 11.1 $ 0.36 $ 18.3 $
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) Twelve Months Ended December 31, 2023 2023 2022 2022 2021 2021 2020 2020 Per share Per share Per share Per share Net earnings (loss) (A) $ 60.5 $ 1.92 $ 59.6 $
Slide 18: 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 2021, the discrete tax
Slide 19: Regulation G Schedules: Free Cash Flow
Regulation G Schedules Free Cash Flow Three Months Ended Twelve Months Ended ($ Millions, except percentages) March 31, December 31, 2024 2023 2023 2022 2021 Net cash provided by operating activities $ 18.3 $ 11.2 $ 88.8 $ 121.2 $ 86.1 Capital expenditures (4.0) (4.5) (14.7) (14.3) (15.6) Free cash