CTS Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2011; Provides Earnings Guidance for the Year 2012; Increases Dividend for the Fourth Quarter of 2011
January 26, 2012 at 03:05 am IST
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CTS Corporation announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2011. For the quarter, the company reported revenues of $144.0 million compared with $145.0 million a year ago. Fourth quarter 2011 revenues were negatively impacted by approximately $11 million-$13 million from the flooding in Thailand. Net earnings were $5.9 million, or $0.17 per diluted share, compared to $4.8 million, or $0.14 per diluted share, in the same period last year. Operating earnings were $7.2 million compared with $5.98 million a year ago. Earnings before income taxes were $7.2 million compared with $5.7 million a year ago. Adjusted earnings per share were $0.22 compared with $0.17 a year ago.
For the year, the company's revenue was $588.5 million compared with $552.6 million a year ago. Operating earnings were $25.2 million compared with $27.8 million a year ago. Earnings before income taxes were $26.3 million compared with $28.0 million a year ago. Net earnings were $20.97 million or $0.60 per diluted share compared with $22.0 million or $0.63 per diluted share a year ago. Adjusted earnings per share were $0.67 compared with $0.66 a year ago. Despite the higher overall sales, earnings per share were only slightly higher primarily due to the natural disasters and increased research and development spending for new products. Cash flow from operations was $22.2 million and capital expenditures were $15.6 million.
The company anticipates full-year 2012 sales to increase in the range of 10% to 13% over 2011 and diluted earnings per share to be in the range of $0.75 to $0.80. Included in 2012 earnings is a net adverse impact of approximately $0.05 per share from a combination of higher expected effective tax rate, higher pension costs and an expected property damage insurance recovery. Operating earnings are expected to grow a strong 20% to 22% over 2011 and be in the range of 5.3% of sales to 5.5% of sales, driven by improved segment mix and better capacity utilization. The full year 2012 tax rate to increase to approximately 25%, as earnings mix shift to higher tax rate jurisdiction, including the U.S. and certain benefits going away. Looking ahead, it expects 2012 full year free cash flow to be in the range of $16 million to $21 million.
The company announced a 17% dividend increase to its shareholders. On an annual basis the dividend will now be $0.14 per share compared to the previous rate of $0.12 per share.
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, 2011; Provides Earnings Guidance for the Year 2012; Increases Dividend for the Fourth Quarter of 2011