CTS Corporation

Good day and welcome to the CTS Corporation third quarter 2020 earnings call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Kieran O'Sullivan. Please go ahead, sir.

Thank you, Grace. Good morning and thank you for joining us today and welcome to CTS's third quarter 2020 conference call. I'll begin by sharing a few thoughts on our business performance and our operations. As mentioned on our last earnings call, we expected sales to improve in the third quarter. Sales were 113.8 million in the quarter, down 2% in the third quarter of 2019 and up 35% sequentially. Third quarter gross margin was 32.4% compared to 32% in the same period in 2019, up 40 basis points and up 80 basis points sequentially from the second quarter of this year. Third quarter adjustment earnings per share was $0.34, up 17% from $0.29 in the third quarter of last year, and up from $0.18 in the second quarter of 2020. We delivered an adjusted EBITDA margin of 19%, up 230 basis points from 16.7% in the second quarter of 2020. New business wins were $127 million in the third quarter, and we added seven new customers. We ended the quarter with $132 million in cash and $106 million in debt. Operationally, all our plants are running. We continue to experience challenges at our Mexico locations. Since last quarter, those facilities have improved from approximately 60% capacity to more in the range of 90%. We are monitoring local changes to COVID-19 restrictions at one of those facilities and at our Strava facility in the Czech Republic. Ashish Agarwal is with me for today's call and will take us through the safe harbor statement. Ashish.

I would like to remind our listeners that this conference call contains forward-looking statements. These statements are subject to several risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Additional information regarding these risks and uncertainties is contained in the press release issued today, and more information can be found in the company's SEC filings. To the extent that today's discussion refers to any non-GAAP measures under Regulation G, the required explanations and reconciliations are available in the Investors section of the CTS website. I will now turn the discussion back over to our CEO, Karen O'Sullivan.