Secular Themes Drive Growth Across End Markets
- Electrification
- Reduced Emissions
- Fluid Metering
- Energy Efficiency
- Industry 4.0
- Factory Automation
- Passenger Safety
- Defense Automation
- Improved Diagnostics
- Non-Invasive Procedures
- Patient Experience
Diversifying Revenue To High Growth End Markets Outside Of Transportation
- Transportation
- Industrial
- Medical
- Aero & Defense
- Telecom & IT
- Utilizing core capabilities and domain expertise in fast-growing end markets
- Investing in business development resources, process and technology capabilities
- Disciplined capital investments to support diversification strategy
Non-transportation Revenue Up from 35% to 48% with a goal of >50%
Successful Business Model
The CTS Advantage - Your Partner in Smart Solutions
Technology Leadership
Recognized leader with global design and engineerng capabilities
Domain Expertise
Deep experience solving complex application requirments
Custom Engineered Solutions
Engineered solutions lead to long term customer partnerships
Global Footprint
Commercial, engineering and manufacturing presence globally
Technology and application expertise creates competitive advantage and long-term relationships with blue-chip customers
Strong Financial and Capital Allocation Framework
Financial Framework
|
2012 |
2022 |
Long-Term Target |
| Revenue |
$304M |
$587M |
10% |
| Gross Margin |
30.1% |
36.5% |
35-38% |
| SG&A Expense |
19.4% |
15.0% |
13-15% |
| R&D Expense |
6.9% |
4.1% |
5-7% |
| CapEx |
4.4% |
2.4% |
4% |
Capital Allocation Framework
Operating Cash Flow
15-17% of Sales
Growth
Capex~4% of Sales
Acquisitions60-80% of FCF
Capital Structure
Leverage 1.0-2.5x EBITDA
Cash Return to Shareholders
Dividends & Buybacks20-40% of FCF