$CTS

CTS CORP

CIK:0000026058|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net sales	$ 144,780	$ 135,309	$ 284,010	$ 261,078
Cost of goods sold	84,732	82,878	168,976	162,099
Gross margin	60,048	52,431	115,034	98,979
Selling, general and administrative expenses	28,390	23,077	54,373	46,700
Research and development expenses	4,763	6,326	11,398	12,515
Restructuring charges	94	297	480	749
Operating earnings	26,801	22,731	48,783	39,015
Other (expense) income:
Interest expense	(704)	(1,121)	(1,412)	(2,289)
Interest income	571	622	1,051	1,068
Other (expense) income, net	(430)	750	(511)	1,307
Total other (expense) income, net	(563)	251	(872)	86
Earnings before income taxes	26,238	22,982	47,911	39,101
Income tax expense	7,074	4,455	11,550	7,210
Net earnings	$ 19,164	$ 18,527	$ 36,361	$ 31,891
Earnings per share:
Basic	$ 0.67	$ 0.62	$ 1.27	$ 1.07
Diluted	$ 0.66	$ 0.62	$ 1.26	$ 1.06
Basic weighted – average common shares outstanding:	28,580	29,739	28,634	29,875
Effect of dilutive securities	329	251	317	285
Diluted weighted – average common shares outstanding:	28,909	29,990	28,951	30,160
Cash dividends declared per share	$ 0.04	$ 0.04	$ 0.08	$ 0.08

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 36,361	$ 31,891
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	17,589	17,045
Pension and other post-retirement plan expense	12	117
Stock-based compensation	4,016	2,263
Deferred income taxes	3,406	(84)
Change in fair value of contingent consideration liability	108	(1,523)
(Gain) loss on foreign currency hedges, net of cash	(213)	65
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(4,117)	(5,181)
Inventories	(6,994)	(2,960)
Operating lease assets	(9,600)	1,230
Other assets	1,061	1,404
Accounts payable	2,137	3,017
Accrued payroll and benefits	(1,822)	354
Operating lease liabilities	9,592	(1,282)
Accrued expenses and other liabilities	(774)	(2,402)
Pension and other post-retirement plans	(27)	(84)
Net cash provided by operating activities	50,735	43,870
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(9,577)	(7,745)
Short-term investments	2,888	0
Net cash used in investing activities	(6,689)	(7,745)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of long-term debt	(342,200)	(541,700)
Proceeds from borrowings of long-term debt	339,700	537,400
Purchases of treasury stock	(11,967)	(22,995)
Dividends paid	(2,296)	(2,401)
Taxes paid on behalf of equity award participants	(1,941)	(2,655)
Net cash used in financing activities	(18,704)	(32,351)
Effect of exchange rate changes on cash and cash equivalents	(101)	1,332
Net increase in cash and cash equivalents	25,241	5,106
Cash and cash equivalents at beginning of period	82,295	94,334
Cash and cash equivalents at end of period	107,536	99,440
Supplemental cash flow information:
Cash paid for interest	1,288	2,169
Cash paid for income taxes, net	7,506	7,092
Capital expenditures incurred but not paid	1,076	1,700
Excise taxes on purchase of treasury stock incurred not paid	$ 88	$ 127

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current Assets
Cash and cash equivalents	$ 107,536	$ 82,295
Accounts receivable, net of allowance of $673 and $910, respectively	92,157	88,096
Inventories, net	59,588	52,854
Other current assets	27,099	29,461
Total current assets	286,380	252,706
Property, plant and equipment, net	89,113	89,741
Operating lease assets, net	32,142	22,542
Other Assets
Goodwill	208,064	209,611
Other intangible assets, net	144,069	153,562
Deferred income taxes	21,566	25,110
Other	10,196	11,039
Total other assets	383,895	399,322
Total Assets	791,530	764,311
Current Liabilities
Accounts payable	49,955	48,220
Operating lease obligations	4,377	3,453
Accrued payroll and benefits	19,279	20,732
Accrued expenses and other liabilities	36,174	37,283
Total current liabilities	109,785	109,688
Long-term debt	55,000	57,500
Long-term operating lease obligations	30,511	21,841
Long-term pension obligations	3,671	3,698
Deferred income taxes	12,531	12,800
Other long-term obligations	7,217	6,998
Total Liabilities	218,715	212,525
Commitments and Contingencies (Note 9)
Shareholders’ Equity
Common stock	326,815	324,982
Additional contributed capital	43,208	43,303
Retained earnings	747,540	713,467
Accumulated other comprehensive income	11,019	13,748
Total shareholders’ equity before treasury stock	1,128,582	1,095,500
Treasury stock	(555,767)	(543,714)
Total shareholders’ equity	572,815	551,786
Total Liabilities and Shareholders’ Equity	$ 791,530	$ 764,311