| --- | --- | --- | --- | |--------------------------------|-------|-------|-------| | | | | | | CTS Corporation | | | | | | | | | | 2nd Quarter 2024 Earnings Call | | | | | | | | | | July 30, 2024 | | | | 2 CTS refers to the forward-looking measures of book-to-bill ratio and total booked business in this document. Book-to-bill ratio is the ratio of customer orders received to revenues recorded for the same period. Although the book-to-bill ratio reflects firm customer orders, changes such as terminations, ...

Exhibit 99.1 CTS Announces Second Quarter 2024 Results Continued Focus on Diversification; Announces Acquisition of SyQwest, LLC Lisle, Ill. - CTS Corporation (NYSE: CTS), a leading global designer and manufacturer of custom engineered solutions that "Sense, Connect and Move," today announced second quarter 2024 results. "We achieved earnings in line with our expectations, despite softness in the transportation end market. We made progress on operational improvements, which helped partially offset the unfav ...

For more information, visit www.ctscorp.com. LISLE, Ill., July 16, 2024 (GLOBE NEWSWIRE) -- CTS Corporation (NYSE: CTS) will release its earnings for the second quarter 2024 at approximately 8:00 a.m. (ET) on Tuesday, July 30, 2024. A live audio webcast of the conference call will be available and can be accessed directly from the Investors section of the website of CTS Corporation at https://investors.ctscorp.com/news-events/events-andpresentations/ where it will be archived for one year. CTS (NYSE: CTS) i ...

Company Overview - CTS Corporation (NYSE: CTS) is a leading designer and manufacturer of products that Sense, Connect, and Move, specializing in sensors, actuators, and electronic components [2] - The company operates in North America, Europe, and Asia, serving markets such as aerospace/defense, industrial, medical, and transportation [2] Upcoming Financial Events - CTS Corporation will release its earnings for the second quarter of 2024 on July 30, 2024, at approximately 8:00 a.m. (ET) [2] - A conference call to discuss the second quarter 2024 results is scheduled for the same day at 10:00 a.m. (ET) [3] - Dial-in numbers for the conference call include +1-833-470-1428 (Toll-Free) and +1-404-975-4839 (Local) for U.S. callers, with additional global dial-in numbers available for international participants [3]

Core Insights - Blue Biofuels, Inc. has received a Notice of Allowance in Canada for its primary patent on the CTS process, which converts cellulosic materials into sugar [1] - The company has successfully changed auditors and filed its first quarter 2024 financial statements on time [2] - Blue Biofuels aims to produce biofuels through its patented Cellulose-to-Sugar (CTS) technology, which is a sustainable and renewable energy system [3] Patent and Technology - The CTS process is patented and allows for the conversion of various plant materials, including agricultural waste, into sugars and lignin [3] - The company has already received patents in the United States, Japan, and El Salvador, with expectations to receive them in the EU and other regions soon [1] Financial and Operational Updates - Blue Biofuels engaged Assure CPA, LLC as its new independent PCAOB-certified audit firm after the previous auditor was suspended [2] - The company completed the review of its first quarter 2024 financial statements and filed them within the grace period [2]

Financial Data and Key Metrics Changes - Sales for Q1 2024 were $126 million, a decline of 14% from Q1 2023, with non-transportation sales down 17% and transportation sales down 10% year-over-year [8][30] - Adjusted gross margin was 36.2%, up 86 basis points from Q1 2023, driven by operational improvements and a shift towards non-transportation sales [9][50] - Adjusted diluted earnings per share were $0.47, down from $0.61 in the same period last year [22][32] Business Line Data and Key Metrics Changes - Non-transportation sales decreased 17% year-over-year but increased 7% sequentially, indicating early signs of recovery in the industrial market [10][17] - Transportation sales were $66.5 million in Q1 2024, down 10% from the same period last year and down 4% sequentially [45] - Medical market sales were stable, with bookings up sequentially and from the same period last year [10][50] Market Data and Key Metrics Changes - The North American light vehicle market is expected to be in the range of 15.5 million to 16 million units, with European production forecasted at 17 million units and China volumes at 28 million units [27] - Electric vehicle penetration rates have softened in most regions, while hybrid adoption has improved [15] Company Strategy and Development Direction - The company aims to expand its customer base and range of applications in industrial, medical, and defense end markets as part of its diversification strategy [47] - The transition of production from the Juarez facility to the Matamoros site in Mexico is expected to be completed in Q2 2024 [31] Management's Comments on Operating Environment and Future Outlook - Management expects a soft first half of 2024 with continued challenges in transportation sales, while non-transportation sales are anticipated to strengthen [16][60] - The company remains confident in its ability to drive efficiencies in its supply chain and manufacturing sites to improve operational performance and profitability [9][92] Other Important Information - The book-to-bill ratio was 1.07 in Q1 2024, indicating positive order trends across several product lines [21] - The company generated $18 million in operating cash flow in Q1 2024, compared to $11 million in Q1 2023, with a cash balance of $162 million as of March 31, 2024 [52] Q&A Session Summary Question: What is driving the positive book-to-bill for the non-transport side of the business? - The improvement is largely driven by industrial, with solid performance in medical and defense markets as well [34] Question: How is the inventory burn down progressing? - Inventory levels are improving, with a small increase in bookings and sales, indicating a positive trend [55] Question: What is the outlook for the second half of the year? - The second half is expected to show improvement, particularly in industrial markets, while transportation remains challenging [60][62] Question: How is the company addressing competition from second sources? - The company is focused on innovation, quality, and on-time delivery to regain market share lost to competitors [76][86]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q For The Quarterly Period Ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) For the Transition Period from to ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-4639 CTS CORPORATION (Exact name of registrant as specified in its charter) IN 35-0225010 (State or other jurisdiction of incorpo ...

[Executive Summary & Q1 2024 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q1%202024%20Highlights) CTS Q1 2024 performance met expectations, driven by operational improvements and early industrial market recovery [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO reported Q1 sales and earnings met expectations, noting operational improvements, early industrial market recovery, and focus on diversified growth - CTS achieved sales and earnings in line with expectations, with operational improvements helping to offset the unfavorable impact from lower volumes[2](index=2&type=chunk) - **Early signs of recovery** are being observed in the industrial end market, as anticipated[2](index=2&type=chunk) - The company is focused on future growth through continued diversification of its customer base, building its pipeline of opportunities, and maintaining a disciplined capital structure to support organic growth, strategic acquisitions, and returning cash to shareholders[2](index=2&type=chunk) [Q1 2024 Financial Highlights](index=1&type=section&id=Q1%202024%20Financial%20Highlights) Q1 2024 financial results showed decreased sales and net income year-over-year, while operating cash flow significantly improved Q1 2024 Financial Highlights (Millions $) | Metric | Q1 2024 (Millions $) | Q1 2023 (Millions $) | YoY Change | Sequential Change (vs Q4 2023) | | :-------------------------- | :------------------- | :------------------- | :--------- | :----------------------------- | | Sales | $125.7 | $146.0 | -14% | +1% | | Net Income | $11.0 | $18.0 | -39% | N/A | | Net Income (% of sales) | 9% | 13% | -4 ppts | N/A | | Diluted EPS | $0.36 | $0.58 | -38% | N/A | | Adjusted Diluted EPS | $0.47 | $0.61 | -23% | N/A | | Operating Cash Flow | $18.0 | $11.0 | +64% | N/A | | Adjusted EBITDA Margin | 20.3% | 21.9% | -1.6 ppts | N/A | - Sales to non-transportation end markets decreased **17% year-over-year** but increased **7% sequentially**. Sales to the transportation end market decreased **10% year-over-year** and **4% sequentially**[26](index=26&type=chunk) [2024 Financial Guidance](index=1&type=section&id=2024%20Financial%20Guidance) CTS maintains full-year 2024 guidance for sales and adjusted diluted EPS, reflecting anticipated performance 2024 Guidance Range | Metric | 2024 Guidance Range | | :---------------------- | :------------------ | | Sales | $530 - $570 million | | Adjusted Diluted EPS | $2.10 - $2.35 | [Company Overview](index=2&type=section&id=Company%20Overview) CTS Corporation is a global designer and manufacturer of custom engineered solutions that "Sense, Connect and Move," serving diverse markets - CTS Corporation is a leading designer and manufacturer of products that **Sense, Connect and Move**[30](index=30&type=chunk) - The company manufactures sensors, actuators, and electronic components in North America, Europe, and Asia, serving the aerospace/defense, industrial, medical, and transportation markets[30](index=30&type=chunk) [Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited condensed consolidated financial statements provide a snapshot of the company's earnings and balance sheet for the period [Condensed Consolidated Statements of Earnings](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Q1 2024 statements show a year-over-year decrease in net sales, gross margin, operating earnings, and net earnings Condensed Consolidated Statements of Earnings (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net sales | $125,750 | $145,994 | | Cost of goods sold | $80,660 | $94,342 | | Gross margin | $45,090 | $51,652 | | Selling, general & admin expenses | $22,260 | $21,979 | | Research & development expenses | $6,601 | $6,586 | | Restructuring charges | $1,693 | $912 | | Operating earnings | $14,536 | $22,175 | | Earnings before income taxes | $13,657 | $22,709 | | Income tax expense | $2,539 | $4,365 | | Net earnings | $11,119 | $18,344 | | Diluted EPS | $0.36 | $0.58 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets, liabilities, and shareholders' equity saw minor sequential decreases Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | March 31, 2024 | December 31, 2023 | | :------------------------------------ | :------------- | :---------------- | | **ASSETS** | | | | Cash and cash equivalents | $162,425 | $163,876 | | Accounts receivable, net | $80,663 | $78,569 | | Inventories, net | $57,784 | $60,031 | | Total current assets | $318,218 | $319,349 | | Property, plant and equipment, net | $91,626 | $92,592 | | Goodwill | $156,330 | $157,638 | | Total Assets | $732,840 | $741,167 | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Accounts payable | $45,609 | $43,499 | | Total current liabilities | $95,948 | $97,039 | | Long-term debt | $67,500 | $67,500 | | Total Liabilities | $211,555 | $214,345 | | Total shareholders' equity | $521,285 | $526,822 | [Non-GAAP Financial Measures and Reconciliations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section explains and reconciles non-GAAP financial measures to provide a clearer view of core financial performance [Explanation of Non-GAAP Measures](index=6&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Non-GAAP measures supplement GAAP results by excluding non-recurring expenses to enhance understanding of core performance - CTS believes that non-GAAP financial measures are commonly used by financial analysts and investors to provide useful information by supplementing GAAP results[15](index=15&type=chunk) - Non-GAAP measures exclude non-recurring operating expenses such as restructuring charges, environmental charges, acquisition-related costs, inventory fair value step-up costs, foreign exchange (gains) losses, non-cash pension expenses (income), and certain discrete tax items[15](index=15&type=chunk) - Non-GAAP measures should not be used as the sole basis for investment decisions, as they may exclude important cash and non-cash items[15](index=15&type=chunk) [Adjusted Net Earnings](index=10&type=section&id=Adjusted%20Net%20Earnings) Adjusted net earnings for Q1 2024 decreased year-over-year, reflecting adjustments for non-recurring items Adjusted Net Earnings (in millions) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Net earnings | $11.1 | $18.3 | | Per share | $0.36 | $0.58 | | Total pretax adjustments | $3.7 | $1.5 | | Income tax effect of adjustments | $(0.6) | $(0.3) | | Total adjustments, tax affected | $3.1 | $1.3 | | Tax adjustments | $0.3 | $0.0 | | Adjusted net earnings | $14.6 | $19.6 | | Adjusted net earnings per share | $0.47 | $0.61 | | Net sales | $125.7 | $146.0 | | Adjusted net earnings as a % of net sales | 11.6% | 13.4% | [Adjusted Operating Earnings](index=8&type=section&id=Adjusted%20Operating%20Earnings) Adjusted operating earnings for Q1 2024 decreased year-over-year after accounting for specific non-recurring costs Adjusted Operating Earnings (in millions) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Operating earnings | $14.5 | $22.2 | | Operating earnings as a % of net sales | 11.6% | 15.2% | | Total adjustments to reported operating earnings | $2.2 | $1.7 | | Adjusted operating earnings | $16.7 | $23.8 | | Adjusted operating earnings as a % of net sales | 13.3% | 16.3% | [Adjusted EBITDA](index=9&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA and its margin decreased in Q1 2024 compared to the prior year, after relevant adjustments Adjusted EBITDA (in millions) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Net earnings (loss) | $11.1 | $18.3 | | Depreciation and amortization expense | $7.3 | $6.9 | | Interest expense | $0.8 | $0.7 | | Tax expense (benefit) | $2.5 | $4.4 | | EBITDA | $21.8 | $30.3 | | Total adjustments to EBITDA | $3.7 | $1.6 | | Adjusted EBITDA | $25.5 | $31.9 | | Adjusted EBITDA Margin | 20.3% | 21.9% | [Adjusted Gross Margin](index=7&type=section&id=Adjusted%20Gross%20Margin) Adjusted gross margin percentage increased in Q1 2024, reflecting adjustments for restructuring-related charges Adjusted Gross Margin (in millions) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Gross margin | $45.1 | $51.7 | | Restructuring-related charges | $0.5 | $0.0 | | Adjusted gross margin | $45.6 | $51.7 | | Adjusted gross margin as a % of net sales | 36.2% | 35.4% | [Controllable Working Capital](index=12&type=section&id=Controllable%20Working%20Capital) Controllable working capital decreased year-over-year and sequentially, with its percentage of annualized sales remaining consistent Controllable Working Capital (in millions) | Metric (in millions) | March 31, 2024 | March 31, 2023 | December 31, 2023 | | :---------------------------------------- | :------------- | :------------- | :---------------- | | Net accounts receivable | $80.7 | $97.7 | $78.6 | | Net inventory | $57.8 | $63.5 | $60.0 | | Accounts payable | $(45.6) | $(53.4) | $(43.5) | | Controllable working capital | $92.8 | $107.8 | $95.1 | | Annualized sales | $503.0 | $584.0 | $498.8 | | Controllable working capital as a % of annualized sales | 18.5% | 18.5% | 19.1% | [Free Cash Flow](index=13&type=section&id=Free%20Cash%20Flow) Free cash flow significantly increased in Q1 2024, primarily due to improved operating cash flow Free Cash Flow (in millions) | Metric (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :---------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $18.3 | $11.2 | | Capital expenditures | $(4.0) | $(4.5) | | Free cash flow | $14.3 | $6.6 | | Operating cash flow as a percentage of net earnings | 165% | 61% | | Free cash flow as a percentage of adjusted net earnings | 98% | 34% | [Supplemental Financial Information](index=13&type=section&id=Supplemental%20Financial%20Information) This section provides additional financial details on capital expenditures, depreciation, amortization, and stock-based compensation [Capital Expenditures](index=13&type=section&id=Capital%20Expenditures) Capital expenditures for Q1 2024 slightly decreased year-over-year, remaining a consistent percentage of net sales Capital Expenditures (in millions) | Metric (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Capital expenditures | $4.0 | $4.5 | | Net sales | $125.7 | $146.0 | | Capex as % of net sales | 3.2% | 3.1% | [Depreciation, Amortization, and Stock-based Compensation](index=13&type=section&id=Depreciation%2C%20Amortization%2C%20and%20Stock-based%20Compensation) Depreciation and amortization expense increased in Q1 2024, while stock-based compensation expense decreased Depreciation, Amortization, and Stock-based Compensation (in millions) | Metric (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Depreciation and amortization expense | $7.3 | $6.9 | | Stock-based compensation expense | $1.2 | $1.6 | [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements and associated risks, cautioning against undue reliance on future projections - The document includes forward-looking statements concerning future performance, financial condition, strategy, and management objectives, which are **not guarantees of future results**[7](index=7&type=chunk) - Readers are cautioned against undue reliance on these statements, as actual results may differ materially due to various risks and uncertainties[7](index=7&type=chunk) - Key risk factors include supply chain disruptions, economic conditions (inflation/recession), acquisition integration issues, rapid technological change, market conditions in various sectors (transportation, industrial, aerospace/defense, medical), reliance on key customers, and geopolitical risks[7](index=7&type=chunk)[44](index=44&type=chunk) [Conference Call & Contact Information](index=2&type=section&id=Conference%20Call%20%26%20Contact%20Information) Details for the Q1 2024 conference call, webcast access, and investor contact information are provided - A conference call was scheduled for **May 1, 2024, at 10:00 a.m. (ET)** with specific dial-in numbers for U.S. (**+1-833-470-1428**) and international participants, using passcode **494524**[29](index=29&type=chunk) - A supplemental slide presentation and a live audio webcast of the conference call were accessible via CTS' investor relations website[29](index=29&type=chunk) - Contact for inquiries is **Ashish Agrawal, Vice President and Chief Financial Officer, CTS Corporation**, at **+1 (630) 577-8800** or **ashish.agrawal@ctscorp.com**[31](index=31&type=chunk)

LISLE, Ill., April 16, 2024 (GLOBE NEWSWIRE) -- CTS Corporation (NYSE: CTS) will release its earnings for the first quarter 2024 at approximately 8:00 a.m. (ET) on Wednesday, May 1, 2024. A conference call to discuss first quarter 2024 results with management is scheduled for Wednesday, May 1st, 2024 at 10:00 a.m. (ET). The dial-in numbers for access from the U.S. are: +1-833-470-1428 (Toll-Free) and +1-404-975-4839 (Local), if calling from outside the U.S., please refer to Global Dial In Numbers to identif ...

LISLE, Ill., April 16, 2024 (GLOBE NEWSWIRE) -- CTS Corporation (NYSE:CTS) will release its earnings for the first quarter 2024 at approximately 8:00 a.m. (ET) on Wednesday, May 1, 2024. A conference call to discuss first quarter 2024 results with management is scheduled for Wednesday, May 1st, 2024 at 10:00 a.m. (ET). The dial-in numbers for access from the U.S. are: +1-833-470-1428 (Toll-Free) and +1-404-975-4839 (Local), if calling from outside the U.S., please refer to Global Dial In Numbers to identify ...