CTS Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2012; Provides Earnings Guidance for the First Quarter and Full Year of 2013
January 28, 2013 at 04:30 pm
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CTS Corporation announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported net sales of $138,298,000 against $143,999,000 for the same period a year ago. Operating earnings was $12,239,000 against $7,200,000 for the same period a year ago. Earnings before income taxes were $12,724,000 against $7,210,000 for the same period a year ago. Net earnings were $8,832,000 against $5,856,000 for the same period a year ago. Net earnings per basic and diluted share were $0.26 against $0.17 for the same period a year ago. Adjusted earnings per share were $0.18 against $0.22 for the same period a year ago. The year-over-year decrease is primarily due to a higher effective tax rate in fourth quarter 2012, including a delayed U.S. research tax credit not signed into law as anticipated in 2012, but signed in early 2013, and a delay in the formal approval of a China high-technology incentive tax credit.
For the full year, the company reported net sales of $576,918,000 against $588,506,000 for the same period a year ago. Operating earnings was $26,688,000 against $25,240,000 for the same period a year ago. Earnings before income taxes were $26,942,000 against $26,337,000 for the same period a year ago. Net earnings were $20,333,000 against $20,967,000 for the same period a year ago. Net earnings per diluted share were $0.59 against $0.60 for the same period a year ago. Adjusted earnings per share were $0.64 against $0.67 for the same period a year ago, primarily due to the delay in receiving certain tax benefits of approximately $0.06 per share. Full-year 2012 cash from operations improved to $41.7 million from $22.2 million in the prior year primarily from reduced inventories and as the disruptions from the Thailand flood are now behind us. Capital expenditures were $13.5 million, or 2.3% of sales, compared to $15.6 million, or 2.6% of sales, in the prior year.
The company provided earnings guidance for the first quarter and full year of 2013. The company anticipates full-year 2013 sales to increase in the range of 12% to 15% over 2012 and diluted earnings per share to be in the range of $0.73 to $0.78. The 2013 diluted earnings per share estimate include approximately $0.05 per share of CEO transition-related costs. The company expects its gross margin percent to continue to improve another 100 to 150 basis points in 2013. D&R is expected to add sales of approximately $50 million in 2013, with EBITDA of about 8 million.
For the first quarter of 2013, results are expected to show normal seasonality with gradual improvements during the year.
CTS Corporation is a global manufacturer of sensors, connectivity components, and actuators. The Company designs, manufactures, and sells a line of sensors, connectivity components, and actuators primarily to original equipment manufacturers (OEMs) and suppliers for the aerospace and defense, industrial, medical, and transportation markets. It operates manufacturing facilities in North America, Asia, and Europe. Its devices are categorized by their ability to Sense, Connect or Move. Sense products provide vital inputs to electronic systems. Connect products allow systems to function in synchronization with other systems. Move products ensure required movements are effectively and accurately executed. Its Sense products include Controls, Pedals, Piezo Sensing Products, Sensors, Switches and Transducers. Its Connect products include EMI/RFI Filters, Capacitors, Frequency Control Products, Resistors and RF filters. Its Move products include Piezo Microactuators and Rotary Actuators.
CTS Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2012; Provides Earnings Guidance for the First Quarter and Full Year of 2013