EX-99 5 ex99_2form8k4thq2003.htm .2 - RECONCILIATION OF NON-GAAP Exhibit 99.2

FORM 8-K

EXHIBIT 99.2


Reconciliation of Non-GAAP Financial Measures
and Definition of Financial Terms


The following table reconciles consolidated net sales to net sales excluding end-of-life products for the years ended December 31, 2003 and December 31, 2002:

        Consolidated CTS
       
        Year Ended December 31,   Increase/   Increase/
        2003   2002   (Decrease)   (Decrease)
($ in millions)  
 
 
 
Net sales   $ 463.0     $ 457.8     $ 5.2       1.1 %
End-of-life products     6.7       22.9       (16.2 )     (70.7 )%
     
     
     
     
 
Net sales excluding end-of-life products   $ 456.3     $ 434.9     $ 21.4       4.9 %
     
     
     
     
 

The following table reconciles the Components and Sensors business segment´s net sales to external customers to net sales to external customers excluding end-of-life products for the quarters ended December 31, 2003 and December 31, 2002:

        Components and Sensors Business Segment
       
        Quarter Ended December 31,   Increase/   Increase/
        2003   2002   (Decrease)   (Decrease)
($ in millions)  
 
 
 
Net sales   $ 67.1     $ 64.5     $ 2.6       4.0 %
End-of-life products     1.3       3.8       (2.5 )     (65.8 )%
     
     
     
     
 
Net sales excluding end-of-life products   $ 65.8     $ 60.7     $ 5.1       8.4 %
     
     
     
     
 

The following table reconciles cash flows provided from operations and cash flows used by investing activities to free cash flow for the quarter ended December 31, 2003 and years ended December 31, 2003 and December 31, 2002:

        Year Ended
    Quarter Ended   December 31,
    December 31, 2003   2003   2002
   
 
($ in millions)
Cash flows provided from operations   $ 9.6     $ 25.1     $ 22.4  
Cash flows used by investing activities     (2.8 )     (5.1 )     (10.0 )
     
     
     
 
Free cash flow   $ 6.8     $ 20.0     $ 12.4  
     
     
     
 

The following table defines total debt to capitalization at December 31, 2003 and December 31, 2002:

        December 31,
        2003   2002
       
 
($ in millions)
Current portion of long-term debt   $ —     $ 28.4  
Long-term debt     75.9       67.0  
 
    
     
 
Total debt     75.9       95.4  
Total shareholders' equity     294.2       265.0  
 
    
     
 
Total capitalization   $ 370.1     $ 360.4  
     
     
 
Total debt to capitalization     20.5 %     26.5 %
     
     
 

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