Business Context and Reporting Period
Company: CTS Corporation
Filing Type: Form 8-K (Current Report)
Report Date: April 19, 2004
Event Date: April 8, 2004
Context: Disclosure of a completed asset sale by a wholly-owned subsidiary, CTS Components Taiwan, Ltd.
Key Financial Metrics
Transaction Value: $16.6 million
Asset Sold: Unused Longtan, Taiwan facility
Accounting Treatment: Asset was previously classified as "held for sale" on the consolidated balance sheet.
Book Value: Approximately equal to the sale price ($16.6 million).
Other Metrics: The filing does not provide specific data on overall revenue, profit, cash flow, margins, debt, or liquidity for the reporting period.
Material Changes
The primary material change is the receipt of final payment for the sale of the Longtan facility. The transaction was agreed upon in February 2004 and finalized on April 8, 2004. The sale price approximated the book value, suggesting no significant gain or loss was recognized on the transaction.
Guidance, Outlook, and Risks
Management Commentary: The filing confirms the successful conclusion of the divestiture of the unused facility.
Outlook/Guidance: No forward-looking guidance or outlook is provided in this specific filing.
Risks/Contingencies: No new risks or contingencies are disclosed beyond the completion of the previously announced sale.
Investor Verification Checklist
- Verify the impact of the $16.6 million cash inflow on the company's consolidated cash position.
- Confirm the removal of the Longtan facility from the "assets held for sale" line item in subsequent financial statements.
- Review the February 2004 agreement details to ensure no contingent payments or liabilities remain.
- Assess whether the sale of this unused facility aligns with broader strategic asset optimization plans.