Press Release February 8, 2016 FOR IMMEDIATE RELEASE CTS Announces Fourth Quarter and Full Year 2015 Results Significant growth in 2015 new business awards Strong gross margin performance on lower sales Elkhart, IN - CTS Corporation (NYSE: CTS) today announced fourth quarter and full year 2015 results. Fourth Quarter 2015 Results • Sales were $93.3 million, up 2.9% from the third quarter 2015. Fourth quarter sales to automotive customers increased 2.6%, and sales of electronic components were up 3.7% from the third quarter of 2015. Sales were down 7.1% compared to the fourth quarter of 2014. • GAAP loss was $13.7 million or $0.42 per share compared to earnings of $7.0 million or $0.21 per diluted share in the fourth quarter of 2014. Included in the fourth quarter 2015 GAAP loss were discrete tax charges of $0.34 and restructuring related charges of $0.28. • Adjusted EPS was $0.20 versus $0.24 in the fourth quarter of 2014. In the fourth quarter of 2015, balance sheet currency translation impacted earnings per share unfavorably by $0.04. CTS received $105 million in new business awards in the fourth quarter, up 10% from $95 million in the third quarter of 2015. Full Year 2015 Results • Sales were $382.3 million, down 5.4% compared to 2014. Currency impacted total year 2015 sales unfavorably by $7.8 million. 2015 sales to automotive customers declined 5.5%. Sales of electronic components declined 5.1%. • GAAP earnings were $7.0 million or $0.21 per diluted share compared to $26.5 million or $0.78 per diluted share in 2014. • Adjusted EPS was $0.93 versus $0.97 in 2014. • Cash flow from operations was $39 million in 2015, up 19% from $32 million in 2014. CTS received $560 million in new business awards for 2015, up 16% from $484 million in 2014. “CTS had a challenging 2015, and we were disappointed with our revenue performance. However, we achieved a number of significant accomplishments during the year. We improved our gross margin. We also successfully completed the transition of manufacturing from our plant in Canada, added several new customers, and acquired new technology and IP as part of our strategic plans,” said Kieran O’Sullivan, CEO of CTS Corporation. “We had a record year for new business awards with an increase of 16% year-over-year. We are building backlog and staying on course towards our long-term strategic growth objectives.” 2016 Guidance Management expects full year 2016 sales in the range of $390 to $400 million. This represents growth of 2-5% from 2015. Adjusted earnings per diluted share for 2016 are expected to be in the range of $0.95 to $1.05. Conference Call As previously announced, the Company has scheduled a conference call at 11:00 a.m. (EST) today to discuss the fourth quarter and full year financial results. The dial-in number is 888-395-3227 (719-325-2362, if calling from outside the U.S.). The conference I.D. number is 5849497. There will be a replay of the conference call from 2:00 p.m. (EST) today through 2:00 p.m. (EST) on Monday, February 22, 2016. The telephone number for the replay is 888-203-1112 (719-457-0820, if calling from outside the U.S.). The access code is 5849497. Also, please note that a live audio webcast of the conference call will be available and can be accessed directly from the website of CTS Corporation www.ctscorp.com. About CTS CTS (NYSE: CTS) is a leading designer and manufacturer of sensors, actuators and electronic components to OEMs in the aerospace, communications, defense, industrial, information technology, medical and transportation markets. CTS manufactures products in North America, Europe and Asia. Safe Harbor This document contains statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, any financial or other guidance, statements that reflect our current expectations concerning future results and events, and any other statements that are not based solely on historical fact. Forward-looking statements are based on management's expectations, certain assumptions and currently available information. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on various assumptions as to future events, the occurrence of which necessarily are subject to uncertainties. These forward-looking statements are made subject to certain risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from those presented in the forward-looking statements. Many of these, and other, risks and uncertainties are discussed in further detail in Item 1A. of the Annual Report on Form 10-K. We undertake no obligation to publicly update our forward-looking statements to reflect new information or events or circumstances that arise after the date hereof, including market or industry changes. Contact Ashish Agrawal Vice President and Chief Financial Officer CTS Corporation 2375 Cabot Drive Lisle, IL 60532 USA Telephone: +1 (574) 523-3800 CTS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) EARNINGS – UNAUDITED (In thousands, except per share amounts) Three Months Ended Net sales Cost of goods sold Gross Margin Selling, general and administrative expenses Research and development expenses Non-recurring environmental charge Restructuring and impairment charges Operating earnings Other (expense) income: Interest expense Interest income Other expense Total other expense (Loss) earnings before income taxes Income tax expense Net (loss) earnings December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 $ $ $ $ 93,282 63,128 30,154 13,805 6,083 — 9,335 931 $ (673) 719 (1,656) (1,610) (679) 12,974 (13,653) $ (Loss) earnings per share: Basic Diluted $ $ (0.42) $ (0.42) $ Cash dividends declared per share $ Average common shares outstanding: Basic Diluted Twelve Months Ended 0.04 32,605 32,605 $ 100,378 67,352 33,026 15,783 5,798 — 1,135 10,310 (563) 827 (1,817) (1,553) 8,757 1,793 6,964 $ 382,310 255,201 127,109 57,430 22,461 14,541 14,564 18,113 (2,628) 3,073 (6,297) (5,852) 12,261 5,307 6,954 $ 404,021 274,058 129,963 59,136 22,563 — 5,941 42,323 (2,326) 2,786 (3,435) (2,975) 39,348 12,826 26,522 0.21 0.21 $ $ 0.21 0.21 $ $ 0.79 0.78 0.04 $ 0.16 $ 0.16 33,431 33,935 32,959 33,484 33,618 34,130 CTS Corporation and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED (In thousands of dollars) ASSETS Current Assets Cash and cash equivalents Accounts receivable, net Inventories, net Other current assets Total current assets Property, plant and equipment, net Other Assets Prepaid pension asset Goodwill Other intangible assets, net Deferred income taxes Other assets Total other assets Total Assets LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities Accounts payable Accrued payroll and benefits Accrued liabilities Total current liabilities Long-term debt Post retirement obligations Other long-term obligations Total Liabilities Shareholders’ Equity Common stock Additional contributed capital Retained earnings Accumulated other comprehensive loss Total shareholders’ equity before treasury stock Treasury stock Total shareholders’ equity Total Liabilities and Shareholders’ Equity December 31, 2015 December 31, 2014 $ $ $ $ $ 156,928 54,563 24,600 15,888 251,979 69,872 33,779 33,865 34,758 58,544 1,336 162,282 484,133 40,299 7,147 53,905 101,351 90,700 2,703 7,725 202,479 300,909 41,166 381,840 (99,005) 624,910 (343,256) 281,654 484,133 $ $ $ 134,508 56,894 27,887 21,112 240,401 71,414 32,099 32,047 36,592 43,120 1,253 145,111 456,926 43,343 11,283 25,356 79,982 75,000 3,049 9,106 167,137 299,892 39,153 380,145 (104,233) 614,957 (325,168) 289,789 456,926 CTS CORPORATION AND SUBSIDIARIES OTHER SUPPLEMENTAL INFORMATION Earnings Per Share The following table reconciles GAAP diluted earnings per share to adjusted diluted earnings per share for the Company: Three Months Ended December 31, 2015 GAAP diluted earnings per share Twelve Months Ended December 31, 2014 $ (0.42) $ 0.21 Tax affected charges to reported diluted earnings per share: Restructuring and related charges Non-recurring environmental charge Increase in the recognition of foreign valuation allowance Increase in the recognition of uncertain tax benefits Change in treatment of certain foreign taxes Tax impact of cash repatriation Tax asset write-off related to restructuring Adjusted diluted earnings per share $ 0.28 — 0.07 0.01 (0.01) 0.27 — 0.20 $ 0.03 — — — — — — 0.24 December 31, 2015 $ $ December 31, 2014 0.21 $ 0.78 0.40 0.27 0.10 0.17 (0.48) 0.26 — 0.93 $ 0.18 — — — — — 0.01 0.97 Additional Information The following table includes other financial information not presented in the preceding financial statements. Three Months Ended In thousands Depreciation and amortization expense Equity-based compensation expense December 31, 2015 $ $ 4,267 540 December 31, 2014 $ $ 4,249 821 Twelve Months Ended December 31, 2015 $ $ 16,254 3,195 December 31, 2014 $ $ 16,971 2,660 Non-GAAP Financial Measures Adjusted earnings per share is a non-GAAP financial measure. The most directly comparable GAAP financial measure is diluted earnings per share. CTS adjusts for these items 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 nonGAAP financial measures reported by peer companies. CTS believes that this measure is useful to its management, investors and stakeholders in that it: • provides a meaningful 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.