UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _______________ to _______________ Commission File Number: 1-4639 CTS CORPORATION (Exact name of registrant as specified in its charter) IN 35-0225010 (St ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _______________ to _______________ Commission File Number: 1-4639 CTS CORPORATION (Exact name of registrant as specified in its charter) Indiana 35-0225010 (St ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended March 31, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _______________ to _______________ Commission File Number: 1-4639 CTS CORPORATION (Exact name of registrant as specified in its charter) Ind ...

Sales and Revenue - In 2018, net sales from non-U.S. operations accounted for 33% of total net sales, an increase from 32% in 2017 and 30% in 2016[39]. - Sales to the 15 largest customers represented 63.7% of total net sales in 2018, slightly down from 64.4% in 2017[27]. - Cummins Inc. accounted for 15.2% of net sales in 2018, up from 13.4% in 2017, while Honda Motor Co. and Toyota Motor Corporation each represented 10.5%[27]. - Net sales for 2018 were $470,483 thousand, an increase of 11.2% from $422,993 thousand in 2017[125]. - Net sales for Q4 2018 were $120,073 million, an increase of $9,163 million or 8.3% from Q4 2017[131]. - For the year ended December 31, 2018, net sales were $470,483 million, an increase of $47,490 million or 11.2% from 2017[141]. Profitability - Gross margin improved to 35.1% in 2018 from 33.2% in 2017, reflecting better cost management[125]. - Gross margin for Q4 2018 was 35.5%, up from 29.6% in Q4 2017, primarily driven by savings from product line transfers[133]. - Operating earnings for 2018 were $61,038 million, or 13.0% of sales, compared to $38,495 million, or 9.1% of sales in 2017[146]. - Net earnings for 2018 were $46,532 thousand, a significant increase of 222.5% compared to $14,448 thousand in 2017[125]. - Basic earnings per share rose to $1.41 in 2018 from $0.44 in 2017, indicating strong profitability growth[125]. - Net earnings for Q4 2018 were $17,564 million, or $0.52 per diluted share, compared to a net loss of $13,621 million, or $0.41 per share, in Q4 2017[139]. Expenses and Investments - Research and development expenses were $25,304 thousand, representing 5.4% of net sales, consistent with the previous year[125]. - Capital expenditures for 2018 were $28,488 thousand, up from $18,094 thousand in 2017, showing increased investment in growth[125]. - Selling, general and administrative expenses for 2018 were $73,569 million, or 15.6% of sales, compared to $71,943 million or 17.0% in 2017[143]. - Research and development expenses for 2018 were $25,304 million, or 5.4% of sales, compared to $25,146 million or 5.9% in 2017[144]. Assets and Liabilities - Current assets increased to $239,359 thousand from $233,609 thousand in 2017, reflecting improved liquidity[125]. - Long-term debt decreased to $50,000 thousand from $76,300 thousand in 2017, indicating a stronger balance sheet[125]. - Total debt decreased to $50,000 as of December 31, 2018, from $76,300 in 2017, with total debt as a percentage of total capitalization at 11.7%[163]. - As of December 31, 2018, the company's contractual obligations totaled $89,372,000, including long-term debt, operating lease payments, and retirement obligations[201]. Operational Risks - The company faces risks from adverse changes in tax laws that could impact its effective tax rate and tax liabilities[57]. - The company operates in highly competitive industries, which may lead to price reductions and reduced profit margins[60]. - The rapid technological changes in the industry could render existing products obsolete before the company recoups its investments[62]. - The company is exposed to risks associated with international operations, including political and economic instability in foreign countries[77]. - The company may face significant challenges in protecting its intellectual property, which could adversely affect its business and financial condition[89]. - The company is susceptible to fluctuations in foreign currency exchange rates, which could adversely affect its financial condition[75]. Employee and Management - The company employed 3,230 people as of December 31, 2018, with 81% of these employees located outside the U.S.[41]. - The company does not have long-term employment contracts with key personnel, which could adversely affect its operations if key management is lost[95]. Environmental and Compliance - The company is potentially liable for environmental contamination at several sites, which could lead to substantial financial liabilities[98]. - The company is subject to various environmental, health, and safety laws that could impose greater compliance costs and increase risks associated with violations[96]. Market and Economic Conditions - The company experiences fluctuations in operating results due to changes in demand, manufacturing processes, and economic conditions[76]. - The company may experience shortages and increased costs of raw materials and electronic components, which could lead to revenue shortfalls and increased operational costs[93]. - The company may restructure operations to improve efficiency, but unsuccessful execution could disrupt operations and increase costs[82].