CTS(US:CTS)2025-02-04 13:00Sales Performance - Fourth quarter 2024 sales were $127 million, up 2% year-over-year, with diversified end-markets sales increasing by 28%[5] - Full-year 2024 sales totaled $516 million, a decrease of 6% year-over-year, primarily due to a 17% decline in transportation end-market sales[5] - Net sales for Q4 2024 were $127.4 million, a slight increase from $124.7 million in Q4 2023, while total net sales for the twelve months were $515.8 million, down from $550.4 million[21] - Net sales for 2024 totaled $515.8 million, a decrease from $550.4 million in 2023, with net earnings as a percentage of net sales at 11.3%[25] Profitability Metrics - Net income for Q4 2024 was $14 million, or 11% of sales, compared to $15 million, or 12% of sales in Q4 2023[5] - Adjusted earnings per diluted share for Q4 2024 were $0.53, up from $0.47 in Q4 2023[5] - Adjusted net earnings for Q4 2024 were $16.3 million, or $0.53 per share, compared to $14.7 million, or $0.47 per share in Q4 2023, reflecting an adjusted net earnings percentage of 12.8%[24] - The company reported a net earnings margin of 10.7% for Q4 2024, down from 12.3% in Q4 2023[24] - Adjusted net earnings for 2024 were $66.9 million, or $2.17 per share, down from $70.0 million, or $2.22 per share in 2023[25] Cash Flow and Capital Expenditures - Operating cash flow for Q4 2024 was $26 million, down from $32 million in Q4 2023[5] - Free cash flow for the twelve months ended December 31, 2024, was $80.6 million, representing 122% of adjusted net earnings[32] - Capital expenditures for 2024 were $18.6 million, or 3.6% of net sales, compared to $14.7 million, or 2.7% of net sales in 2023[33] Adjusted Earnings and Margins - Adjusted EBITDA margin for Q4 2024 was 24%, an increase from 22% in Q4 2023[5] - Adjusted operating earnings for Q4 2024 were $21.6 million, an increase from $18.4 million in Q4 2023, with an operating earnings percentage of 17.0% compared to 14.8%[22] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $117.1 million, slightly down from $120.7 million in 2023, with an adjusted EBITDA margin of 22.7%[23] - Adjusted gross margin for Q4 2024 was $48.6 million, with an adjusted gross margin percentage of 38.1%, compared to 34.2% in Q4 2023[21] Assets and Liabilities - The company reported a total asset value of $766 million as of December 31, 2024, compared to $741 million in 2023[17] - Controllable working capital as of December 31, 2024, was $88.6 million, representing 17.4% of annualized sales[31] - The company reported a decrease in net accounts receivable to $77.6 million in 2024 from $78.6 million in 2023[31] Environmental and Restructuring Charges - Environmental charges for Q4 2024 were $1.9 million, up from $0.4 million in Q4 2023, indicating increased costs associated with non-operating facilities[22] - Environmental charges for 2024 were $1.6 million, down from $3.5 million in 2023[25] - The company incurred restructuring charges of $1.0 million in Q4 2024, consistent with the previous quarter, and total adjustments to reported operating earnings amounted to $2.6 million[22] Future Outlook - CTS expects full-year 2025 sales to be in the range of $520-$550 million and adjusted diluted EPS to be between $2.20-$2.35[5] - CTS is focusing on innovative products like eBrake™ and sensing applications to drive future growth despite challenging market conditions in transportation[2]