CTS CORPORATION Building Momentum on Long-term Strategy While Navigating Near-term Challenges
Announces
“We made good progress in 2023 on our strategic priorities, adding content through several new products in transportation and achieving strong electrification awards. We continued to win new customers and applications in the non-transportation end markets that will support our long-term goal to further diversify and strengthen our business,” said Kieran O’Sullivan, CEO of
CTS also announced that its Board of Directors approved a new share repurchase program that authorizes the company to repurchase up to
Fourth Quarter 2023 Results
- Sales were
$125 million , down 12% year-over-year. Sales to non-transportation end markets decreased 22% driven by softness in sales to industrial and distribution customers. Sales to the transportation end market decreased 3% over the same period driven by a decline in sales of products for commercial vehicles. - Net income was
$15 million , or 12% of sales, compared to$15 million , or 11% of sales, in the fourth quarter of 2022. - Earnings per diluted share were
$0.49 , compared to$0.47 in the fourth quarter of 2022. - Adjusted earnings per diluted share were
$0.47 , down from$0.56 in the fourth quarter of 2022. - Adjusted EBITDA margin was 22% compared to 23% in the fourth quarter of 2022.
- Operating cash flow was
$32 million compared to$26 million in the fourth quarter of 2022.
Full-Year 2023 Results
- Sales were
$550 million , down 6% year-over-year, driven by softness in the industrial and distribution end-market. Sales to the non-transportation end markets decreased by 12%, while sales to the transportation end-market decreased by 1% compared to 2022. - Net income was
$61 million , or 11% of sales, compared to$60 million , or 10% of sales in 2022. - Earnings per diluted share were
$1.92 , compared to$1.85 in 2022. - Adjusted earnings per diluted share were
$2.22 , down from$2.46 in 2022. - Adjusted EBITDA margin was 22%, down from 23% in 2022.
- Operating cash flow was
$89 million , down from$121 million in 2022. The 2022 results included$27 million in one-time cash related to theU.S. pension plan.
2024 Guidance
CTS expects full-year 2024 sales to be in the range of
CTS does not provide reconciliations of forward-looking non-GAAP financial measures, such as estimated adjusted diluted earnings per share, to the most comparable GAAP financial measures on a forward-looking basis because CTS is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, restructuring costs, environmental remediation costs, acquisition-related costs, foreign exchange rates and other non-routine costs. Each of such adjustments has not yet occurred, are out of CTS' control and/or cannot be reasonably predicted. For the same reasons, CTS is unable to address the probable significance of the unavailable information.
Conference Call and Supplemental Materials
As previously announced, the Company has scheduled a conference call for
About CTS
Safe Harbor
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, statements that reflect our current expectations concerning future results and events, and any other statements that are not based solely on historical fact. Forward-looking statements are based on management’s expectations, certain assumptions, and currently available information. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on various assumptions as to future events, the occurrence of which necessarily are subject to uncertainties. These forward-looking statements are made subject to certain risks, uncertainties, and other factors, which could cause CTS’ actual results, performance, or achievements to differ materially from those presented in the forward-looking statements. Examples of factors that may affect future operating results and financial condition include, but are not limited to: supply chain disruptions; changes in the economy generally, including inflationary and/or recessionary conditions, and in respect to the business in which CTS operates; unanticipated issues in integrating acquisitions; the results of actions to reposition CTS’ business; rapid technological change; general market conditions in the transportation, as well as conditions in the industrial, aerospace and defense, and medical markets; reliance on key customers; unanticipated public health crises, natural disasters or other events; environmental compliance and remediation expenses; the ability to protect CTS’ intellectual property; pricing pressures and demand for CTS’ products; risks associated with CTS’ international operations, including trade and tariff barriers, exchange rates and political and geopolitical risks (including, without limitation, the potential impact
Contact
Ashish Agrawal
Vice President and Chief Financial Officer
CTS Corporation
4925 Indiana Avenue
+1 (630) 577-8800
ashish.agrawal@ctscorp.com
| CTS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED (In thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net sales | $ | 124,694 | $ | 142,281 | $ | 550,422 | $ | 586,869 | ||||||||
| Cost of goods sold | 82,630 | 91,277 | 359,563 | 376,331 | ||||||||||||
| Gross margin | 42,064 | 51,004 | 190,859 | 210,538 | ||||||||||||
| Selling, general and administrative expenses | 19,477 | 23,491 | 83,816 | 91,520 | ||||||||||||
| Research and development expenses | 5,290 | 5,405 | 24,918 | 24,100 | ||||||||||||
| Restructuring charges | 1,041 | 478 | 7,074 | 1,912 | ||||||||||||
| Operating earnings | 16,256 | 21,630 | 75,051 | 93,006 | ||||||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense | (822 | ) | (702 | ) | (3,331 | ) | (2,192 | ) | ||||||||
| Interest income | 1,538 | 716 | 4,625 | 1,326 | ||||||||||||
| Other income (expense), net | 655 | (873 | ) | (1,192 | ) | (11,403 | ) | |||||||||
| Total other income (expense), net | 1,371 | (859 | ) | 102 | (12,269 | ) | ||||||||||
| Earnings before income taxes | 17,627 | 20,771 | 75,153 | 80,737 | ||||||||||||
| Income tax expense | 2,307 | 5,831 | 14,621 | 21,162 | ||||||||||||
| Net earnings | $ | 15,320 | $ | 14,940 | $ | 60,532 | $ | 59,575 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.49 | $ | 0.47 | $ | 1.93 | $ | 1.86 | ||||||||
| Diluted | $ | 0.49 | $ | 0.47 | $ | 1.92 | $ | 1.85 | ||||||||
| Basic weighted – average common shares outstanding: | 31,020 | 31,818 | 31,359 | 31,968 | ||||||||||||
| Effect of dilutive securities | 219 | 224 | 220 | 270 | ||||||||||||
| Diluted weighted – average common shares outstanding: | 31,239 | 32,042 | 31,579 | 32,238 | ||||||||||||
| Cash dividends declared per share | $ | 0.04 | $ | 0.04 | $ | 0.16 | $ | 0.16 | ||||||||
| CTS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of dollars) | ||||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 163,876 | $ | 156,910 | ||||
| Accounts receivable, net | 78,569 | 90,935 | ||||||
| Inventories, net | 60,031 | 62,260 | ||||||
| Other current assets | 16,873 | 15,655 | ||||||
| Total current assets | 319,349 | 325,760 | ||||||
| Property, plant and equipment, net | 92,592 | 97,300 | ||||||
| Operating lease assets, net | 26,425 | 22,702 | ||||||
| Other Assets | ||||||||
| 157,638 | 152,361 | |||||||
| Other intangible assets, net | 103,957 | 108,053 | ||||||
| Deferred income taxes | 25,183 | 23,461 | ||||||
| Other | 16,023 | 18,850 | ||||||
| Total other assets | 302,801 | 302,725 | ||||||
| Total Assets | $ | 741,167 | $ | 748,487 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 43,499 | $ | 53,211 | ||||
| Accrued payroll and benefits | 14,585 | 20,063 | ||||||
| Operating lease obligations | 4,394 | 3,936 | ||||||
| Accrued expenses and other liabilities | 34,561 | 35,322 | ||||||
| Total current liabilities | 97,039 | 112,532 | ||||||
| Long-term debt | 67,500 | 83,670 | ||||||
| Long-term operating lease obligations | 24,965 | 21,754 | ||||||
| Long-term pension obligations | 4,655 | 5,048 | ||||||
| Deferred income taxes | 14,729 | 16,010 | ||||||
| Other long-term obligations | 5,457 | 3,249 | ||||||
| Total Liabilities | 214,345 | 242,263 | ||||||
| Commitments and Contingencies | ||||||||
| Shareholders’ Equity | ||||||||
| Common stock | 319,269 | 316,803 | ||||||
| Additional contributed capital | 45,097 | 46,144 | ||||||
| Retained earnings | 602,232 | 546,703 | ||||||
| Accumulated other comprehensive loss | 4,264 | (671 | ) | |||||
| Total shareholders’ equity before treasury stock | 970,862 | 908,979 | ||||||
| (444,040 | ) | (402,755 | ) | |||||
| Total shareholders’ equity | 526,822 | 506,224 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 741,167 | $ | 748,487 | ||||
CTS CORPORATION AND SUBSIDIARIES
OTHER SUPPLEMENTAL INFORMATION - UNAUDITED
(In millions of dollars, except percentages and per share amounts)
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
CTS has presented these non-GAAP financial measures as it believes that the presentation of its financial results that exclude (1) restructuring charges; (2) restructuring-related charges; (3) environmental charges; (4) acquisition-related costs; (5) inventory fair value step-up costs; (6) foreign exchange (gains) losses; (7) non-cash pension expenses (income); and (8) certain discrete tax items are useful and assist in comparing CTS’ current operating results with past periods and with the operational performance of other companies in its industry. Included below is a description of the expenses that CTS has determined are not normal, recurring cash operating expenses necessary to operate its business and the rationale for why providing financial measures for its business with such expenses excluded or adjusted is useful to investors as a supplement to the
- Restructuring charges – costs primarily relating to workforce reduction costs, building and equipment relocation costs, asset impairment charges and other facility closure costs in connection with our continued optimization of our organization.
- Restructuring-related charges – costs related to restructuring actions that do not qualify as direct restructuring charges under US GAAP. These include duplicative expenses incurred due to the plant consolidation related transition activities such as excess rent, utilities, personnel related and other costs prior to start of production at the new location.
- Environmental charges – costs associated with our non-operating facilities that are unrelated to ongoing operations. Currently, none of these costs and accruals relate to sites that provide revenue generating activities for the Company.
- Acquisition-related costs – diligence and transaction costs related to acquisitions including related contingent earnout adjustments.
- Inventory fair value step-up costs – purchase accounting-related inventory costs from acquisitions.
- Foreign exchange (gains) losses – remeasurement income and expenses for non-
U.S. subsidiaries with theU.S. dollar as the functional currency. - Non-cash pension expenses (income) – pension income and expenses relating to the non-operating
U.S. pension and post-retirement life insurance plans, including historical plan settlement activities. - Discrete tax items – non-recurring, infrequent, or unusual tax adjustments (e.g., valuation allowances, uncertain tax position changes, unremitted assertion changes and discrete impacts associated with pre-tax non-GAAP items or due to tax law changes, etc.).
At times, the reconciliations below have been intentionally rounded to the nearest thousand, or
Adjusted Gross Margin
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2021 | ||||||||||||||||
| Gross margin | $ | 42.1 | $ | 51.0 | $ | 190.9 | $ | 210.5 | $ | 184.6 | ||||||||||
| Net sales | $ | 124.7 | $ | 142.3 | $ | 550.4 | $ | 586.9 | $ | 512.9 | ||||||||||
| Gross margin as a % of net sales | 33.7 | % | 35.8 | % | 34.7 | % | 35.9 | % | 36.0 | % | ||||||||||
| Adjustments to reported gross margin: | ||||||||||||||||||||
| Restructuring related charges (b) | 0.6 | — | 0.6 | — | — | |||||||||||||||
| Inventory fair value step-up (b) | — | 0.7 | — | 4.0 | — | |||||||||||||||
| Adjusted gross margin | $ | 42.6 | $ | 51.7 | $ | 191.4 | $ | 214.5 | $ | 184.6 | ||||||||||
| Adjusted gross margin as a % of net sales | 34.2 | % | 36.3 | % | 34.8 | % | 36.5 | % | 36.0 | % | ||||||||||
Adjusted Operating Earnings
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2021 | ||||||||||||||||
| Operating earnings | $ | 16.3 | $ | 21.6 | $ | 75.1 | $ | 93.0 | $ | 76.5 | ||||||||||
| Net sales | $ | 124.7 | $ | 142.3 | $ | 550.4 | $ | 586.9 | $ | 512.9 | ||||||||||
| Operating earnings as a % of net sales | 13.0 | % | 15.2 | % | 13.6 | % | 15.8 | % | 14.9 | % | ||||||||||
| Adjustments to reported operating earnings: | ||||||||||||||||||||
| Restructuring charges (c) | 1.0 | 0.5 | 7.1 | 1.9 | 1.7 | |||||||||||||||
| Restructuring related charges (b) | 0.6 | — | 0.6 | — | — | |||||||||||||||
| Environmental charges (a) | 0.4 | 1.0 | 3.5 | 2.8 | 2.3 | |||||||||||||||
| Acquisition-related costs (a) | 0.2 | — | 0.4 | 0.8 | — | |||||||||||||||
| Inventory fair value step-up (b) | — | 0.7 | — | 4.0 | — | |||||||||||||||
| Total adjustments to reported operating earnings | $ | 2.2 | $ | 2.2 | $ | 11.5 | $ | 9.5 | $ | 3.9 | ||||||||||
| Adjusted operating earnings | $ | 18.4 | $ | 23.8 | $ | 86.6 | $ | 102.5 | $ | 80.4 | ||||||||||
| Adjusted operating earnings as a % of net sales | 14.8 | % | 16.7 | % | 15.7 | % | 17.5 | % | 15.7 | % | ||||||||||
Adjusted EBITDA Margin
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2021 | ||||||||||||||||
| Net earnings (loss) | $ | 15.3 | $ | 14.9 | $ | 60.5 | $ | 59.6 | $ | (41.9 | ) | |||||||||
| Net sales | $ | 124.7 | $ | 142.3 | $ | 550.4 | $ | 586.9 | $ | 512.9 | ||||||||||
| Net earnings (loss) margin | 12.3 | % | 10.5 | % | 11.0 | % | 10.2 | % | -8.2 | % | ||||||||||
| Depreciation and amortization expense | 7.3 | 8.0 | 28.7 | 29.8 | 26.9 | |||||||||||||||
| Interest expense | 0.8 | 0.7 | 3.3 | 2.2 | 2.1 | |||||||||||||||
| Tax expense (benefit) | 2.3 | 5.8 | 14.6 | 21.2 | (19.0 | ) | ||||||||||||||
| EBITDA | 25.7 | 29.5 | 107.2 | 112.7 | (31.8 | ) | ||||||||||||||
| Adjustments to EBITDA: | ||||||||||||||||||||
| Restructuring charges (c) | 1.0 | 0.5 | 7.1 | 1.9 | 1.7 | |||||||||||||||
| Restructuring related charges (b) | 0.6 | — | 0.6 | — | — | |||||||||||||||
| Environmental charges (a) | 0.4 | 1.0 | 3.5 | 2.8 | 2.3 | |||||||||||||||
| Acquisition-related costs (a) | 0.2 | — | 0.4 | 2.5 | — | |||||||||||||||
| Inventory fair value step-up (b) | — | 0.7 | — | 4.0 | — | |||||||||||||||
| Non-cash pension and related expense (d) | — | — | — | 4.8 | 132.4 | |||||||||||||||
| Foreign currency (gain) loss (d) | (0.3 | ) | 0.9 | 2.0 | 4.9 | 3.3 | ||||||||||||||
| Total adjustments to EBITDA | 1.8 | 3.1 | 13.5 | 20.9 | 139.7 | |||||||||||||||
| Adjusted EBITDA | $ | 27.6 | $ | 32.6 | $ | 120.7 | $ | 133.6 | $ | 107.9 | ||||||||||
| Adjusted EBITDA Margin | 22.1 | % | 22.9 | % | 21.9 | % | 22.8 | % | 21.0 | % | ||||||||||
Adjusted Net Earnings and Adjusted Diluted Earnings Per Share
| Three Months Ended | ||||||||||||||||
| 2023 | 2023 | 2022 | 2022 | |||||||||||||
| Per share | Per share | |||||||||||||||
| Net earnings (A) | $ | 15.3 | $ | 0.49 | $ | 14.9 | $ | 0.47 | ||||||||
| Adjustments to reported net earnings: | ||||||||||||||||
| Restructuring charges (c) | 1.0 | 0.03 | 0.5 | 0.01 | ||||||||||||
| Restructuring related charges (a) | 0.6 | 0.02 | — | — | ||||||||||||
| Environmental charges (a) | 0.4 | 0.01 | 1.0 | 0.03 | ||||||||||||
| Acquisition-related costs (a) | 0.2 | 0.01 | — | — | ||||||||||||
| Inventory fair value step-up (b) | — | — | 0.7 | 0.02 | ||||||||||||
| Foreign currency (gain) loss (d) | (0.3 | ) | (0.01 | ) | 0.9 | 0.03 | ||||||||||
| Total pretax adjustments to reported net earnings | $ | 1.8 | $ | 0.06 | $ | 3.1 | $ | 0.10 | ||||||||
| Income tax effect of above adjustments (f) | (0.8 | ) | (0.03 | ) | (0.4 | ) | (0.01 | ) | ||||||||
| Total adjustments, tax affected (f) (B) | $ | 1.0 | $ | 0.03 | $ | 2.6 | $ | 0.08 | ||||||||
| Tax adjustments: | ||||||||||||||||
| Other discrete tax items (e) | (1.6 | ) | (0.05 | ) | 0.2 | 0.01 | ||||||||||
| Total tax adjustments (C) | $ | (1.6 | ) | $ | (0.05 | ) | $ | 0.2 | $ | 0.01 | ||||||
| Adjusted net earnings (A+B+C) and Adjusted net earnings per share | $ | 14.7 | $ | 0.47 | $ | 17.8 | 0.56 | |||||||||
| Net sales | $ | 124.7 | $ | 142.3 | ||||||||||||
| Net earnings as a % of net sales | 12.3 | % | 10.5 | % | ||||||||||||
| Adjusted net earnings as a % of net sales | 11.8 | % | 12.5 | % | ||||||||||||
| Twelve Months Ended | ||||||||||||||||||||||||
| 2023 | 2023 | 2022 | 2022 | 2021 | 2021 | |||||||||||||||||||
| Per share | Per share | Per share | ||||||||||||||||||||||
| Net earnings (loss) (A) | $ | 60.5 | $ | 1.92 | $ | 59.6 | $ | 1.85 | $ | (41.9 | ) | $ | (1.30 | ) | ||||||||||
| Adjustments to reported net earnings (loss): | ||||||||||||||||||||||||
| Restructuring charges (c) | 7.1 | 0.22 | 1.9 | 0.06 | 1.7 | 0.06 | ||||||||||||||||||
| Restructuring related charges (a) | 0.6 | 0.02 | — | — | — | — | ||||||||||||||||||
| Environmental charges (a) | 3.5 | 0.11 | 2.8 | 0.09 | 2.3 | 0.07 | ||||||||||||||||||
| Acquisition-related costs (a) | 0.4 | 0.01 | 2.5 | 0.08 | — | — | ||||||||||||||||||
| Inventory fair value step-up (b) | — | — | 4.0 | 0.12 | — | — | ||||||||||||||||||
| Non-cash pension and related expense (d) | — | — | 4.8 | 0.15 | 132.4 | 4.10 | ||||||||||||||||||
| Foreign currency loss (d) | 2.0 | 0.06 | 4.9 | 0.15 | 3.3 | 0.10 | ||||||||||||||||||
| Total pretax adjustments to reported net earnings (loss) | $ | 13.5 | $ | 0.42 | $ | 20.9 | $ | 0.65 | $ | 139.7 | $ | 4.33 | ||||||||||||
| Income tax effect of above adjustments (f) | (2.4 | ) | (0.07 | ) | (1.6 | ) | (0.05 | ) | (31.1 | ) | (0.99 | ) | ||||||||||||
| Total adjustments, tax affected (f) (B) | $ | 11.1 | $ | 0.35 | $ | 19.3 | $ | 0.60 | $ | 108.6 | $ | 3.34 | ||||||||||||
| Tax adjustments: | ||||||||||||||||||||||||
| Increase in valuation allowances (e) | — | — | — | — | 0.9 | 0.03 | ||||||||||||||||||
| Other discrete tax items (e) | (1.6 | ) | (0.05 | ) | 0.2 | 0.01 | (4.7 | ) | (0.14 | ) | ||||||||||||||
| Total tax adjustments (C) | $ | (1.6 | ) | $ | (0.05 | ) | $ | 0.2 | $ | 0.01 | $ | (3.8 | ) | $ | (0.11 | ) | ||||||||
| Adjusted net earnings (A+B+C) and Adjusted net earnings per share | $ | 70.0 | $ | 2.22 | $ | 79.1 | 2.46 | $ | 63.0 | 1.93 | ||||||||||||||
| Net sales | $ | 550.4 | $ | 586.9 | $ | 512.9 | ||||||||||||||||||
| Net earnings (loss) as a % of net sales | 11.0 | % | 10.2 | % | -8.2 | % | ||||||||||||||||||
| Adjusted net earnings as a % of net sales | 12.7 | % | 13.5 | % | 12.3 | % | ||||||||||||||||||
(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 items relate to items we deemed outside normal cash-generating operations including,
(f) We determine the tax effect of non-GAAP adjustments by considering the tax laws and statutory income tax rates applicable in the tax jurisdictions of the underlying non-GAAP adjustments. For all periods presented, we applied the statutory income tax rates to the taxable portion of all of our adjustments. Our acquisition costs and foreign currency gains and losses included in our non-GAAP adjustments were not deductible for income tax purposes; therefore, no statutory income tax rate was applied to such costs.
NOTE: CTS believes that adjusted gross margin, adjusted operating earnings, adjusted EBITDA margin, adjusted net earnings and adjusted diluted earnings per share provide useful information to investors regarding its operational performance because they enhance an investor’s overall understanding of CTS’ core financial performance and facilitate comparisons to historical results of operations, by excluding items that are not related directly to the underlying performance of CTS’ fundamental business operations (such as those items noted above in the paragraph titled “Non-GAAP Financial Measures”) or were not part of CTS’ business operations during a comparable period.
| 2023 | 2022 | 2021 | ||||||||||
| Net accounts receivable | $ | 78.6 | $ | 90.9 | $ | 82.2 | ||||||
| Net inventory | $ | 60.0 | $ | 62.3 | $ | 49.5 | ||||||
| Accounts payable | $ | (43.5 | ) | $ | (53.2 | ) | $ | (55.5 | ) | |||
| Controllable working capital | $ | 95.1 | $ | 100.0 | $ | 76.2 | ||||||
| Quarter sales | $ | 124.7 | $ | 142.3 | $ | 132.5 | ||||||
| Multiplied by 4 | 4 | 4 | 4 | |||||||||
| Annualized sales | $ | 498.8 | $ | 569.1 | $ | 530.0 | ||||||
| Controllable working capital as a % of annualized sales | 19.1 | % | 17.6 | % | 14.4 | % | ||||||
NOTE: CTS believes the controllable working capital ratio is a useful measure because it provides an objective measure of the efficiency with which CTS manages its short-term capital needs.
Free Cash Flow
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2021 | ||||||||||||||||
| Net cash provided by operating activities | $ | 32.1 | $ | 25.5 | $ | 88.8 | $ | 121.2 | $ | 86.1 | ||||||||||
| Capital expenditures | (3.5 | ) | (5.1 | ) | (14.7 | ) | (14.3 | ) | (15.6 | ) | ||||||||||
| Free cash flow | $ | 28.6 | $ | 20.4 | $ | 74.1 | $ | 106.9 | $ | 70.5 | ||||||||||
| Operating cash flow as a percentage of net earnings | 209 | % | 170 | % | 147 | % | 203 | % | -206 | % | ||||||||||
| Free cash flow as a percentage of adjusted net earnings | 195 | % | 115 | % | 106 | % | 135 | % | 112 | % | ||||||||||
NOTE: CTS believes that free cash flow is a useful measure because it demonstrates the company’s ability to generate cash. Free cash flow is a non-GAAP measure and should be considered in addition to, but not as a substitute for, information contained in the company's condensed consolidated statement of cash flows as a measure of liquidity.
Capital Expenditures
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2021 | ||||||||||||||||
| Capital expenditures | $ | 3.5 | $ | 5.1 | $ | 14.7 | $ | 14.3 | $ | 15.6 | ||||||||||
| Net sales | $ | 124.7 | $ | 142.3 | $ | 550.4 | $ | 586.9 | $ | 512.9 | ||||||||||
| Capex as % of net sales | 2.8 | % | 3.6 | % | 2.7 | % | 2.4 | % | 3.0 | % | ||||||||||
Additional Information
The following table includes other financial information not presented in the preceding financial statements.
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2021 | ||||||||||||||||
| Depreciation and amortization expense | $ | 7.3 | $ | 8.0 | $ | 28.7 | $ | 29.8 | $ | 26.9 | ||||||||||
| Stock-based compensation expense | $ | 0.5 | $ | 1.9 | $ | 5.2 | $ | 7.7 | $ | 6.1 | ||||||||||
2024 GlobeNewswire, Inc., source
