CTS adjusts for this item because they are discrete events which have a significant impact on comparable GAAP financial measures and could distort an evaluation of our normal operating performance.
CTS uses an adjusted earnings per share measure to evaluate overall performance, establish plans and perform strategic analysis. Using this measure avoids distortion in the evaluation of operating results by eliminating the impact of events which are not related to normal operating performance. Because this measure is based on the exclusion or inclusion of specific items, they may not be comparable to measures used by other companies which have similar titles. CTS' management compensates for this limitation when performing peer comparisons by evaluating both GAAP and non-GAAP financial measures reported by peer companies. CTS believes that this measure is useful to its management, investors and stakeholders in that it:
- provides a truer measure of CTS' operating performance,
- reflects the results used by management in making decisions about the business, and
- helps review and project CTS' performance over time.
We recommend that investors consider both actual and adjusted measures in evaluating the performance of CTS with peer companies.
Segment Operating EarningsSegment operating earnings is a non-GAAP financial measure outside the context of the Accounting Standards Codification ("ASC") 280 required reconciliation in the notes to the Company's financial statements. The most comparable GAAP term is operating earnings. Segment operating earnings exclude the effects of restructuring and restructuring-related charges when they are incurred by the Company. Segment operating earnings exclude interest expense, and other non-operating income and income taxes according to how a particular segment is measured. CTS' management provides the segment operating earnings measure to provide consistency between segment information in its earnings release and the business segment discussion in the notes to its financial statements.
|CTS Corporation and Subsidiaries|
|Condensed Consolidated Balance Sheets - Unaudited|
|(In thousands of dollars)|
|September 30||December 31,|
|Cash and cash equivalents||$||88,620||$||76,412|
|Accounts receivable, net||81,014||88,345|
|Other current assets||24,512||26,089|
|Total current assets||269,153||283,386|
|Property, plant & equipment, net||89,721||84,860|
|Notes payable and current portion|
|of long-term debt||$||-||$||-|
|Other accrued liabilities||36,866||43,769|
|Total current liabilities||96,073||124,237|
|Total Liabilities and|