CTS Corporation (CTS) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $8.31 million, or $ 0.25 a share in the quarter, against a net loss of $13.65 million, or $0.42 a share in the last year period. On an adjusted basis, earnings per share were at $0.29 for the quarter compared with $0.20 in the same period last year.
Revenue during the quarter grew 8.90 percent to $101.58 million from $93.28 million in the previous year period. Gross margin for the quarter expanded 298 basis points over the previous year period to 35.30 percent. Total expenses were 86.07 percent of quarterly revenues, down from 99 percent for the same period last year. This has led to an improvement of 1293 basis points in operating margin to 13.93 percent.
Operating income for the quarter was $14.15 million, compared with $0.93 million in the previous year period.
"We achieved strong financial performance and solid new business awards," said Kieran O'Sullivan, chief executive officer of CTS Corporation. “Our teams continued to drive operational improvement. In 2016, we acquired and integrated the single crystal technology and improved adjusted earnings by 16%. We also delivered another quarter of sales growth in the fourth quarter. Our teams remain focused on driving profitable growth as we enter 2017."
For financial year 2017, CTS Corporation projects revenue to be in the range of $405 million to $420 million. The company forecasts diluted earnings per share to be in the range of $1.12 to $1.22 on adjusted basis.
Debt remains almost stable
CTS Corporation has recorded a decline in total debt over the last one year. It stood at $90.11 million as on Dec. 31, 2016, down 0.65 percent or $0.59 million from $90.70 million on Dec. 31, 2015. Short-term debt stood at $1.01 million as on Dec. 31, 2016. Total debt was 17.41 percent of total assets as on Dec. 31, 2016, compared with 18.73 percent on Dec. 31, 2015. Debt to equity ratio was at 0.28 as on Dec. 31, 2016, down from 0.32 as on Dec. 31, 2015. Interest coverage ratio improved to 14.80 for the quarter from 1.38 for the same period last year.
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