Exhibit 99.1
Rogers Corporation Reports 50% Increase in Earnings
for the First Quarter of 2003
ROGERS, Conn.--(BUSINESS WIRE)--April 17, 2003--Rogers Corporation
(NYSE:ROG) announced today that earnings per share for the first
quarter of 2003 increased by 50% compared to the first quarter of
2002. Diluted earnings per share for the quarter were $0.36 compared
to the $0.24 earned in last year's first quarter. Rogers had projected
earnings of between $0.32 and $0.35 per diluted share on revenues of
$48 to $51 million. After tax profits were $5.7 million for the first
quarter of 2003, compared to $3.9 million for the first quarter of
2002.
Net sales in the first quarter were $51.9 million, compared to the
$54.6 million sold in the first quarter of 2002, reflecting the
divestiture of the Company's Moldable Composites Division ("MCD") that
occurred in November of 2002. MCD sales were $8.3 million for the
first quarter of 2002. Revenues across most of the Company's product
lines improved with strong sales into key market niches.
The Company considers its four 50%-owned unconsolidated joint
ventures as an integral part of its business. These joint ventures had
total revenues in the first quarter of 2003 of $34.0 million. Adding
50% of these joint venture sales to the Company's net sales, Rogers'
Combined Sales were $68.9 million compared to $68.7 million in last
year's first quarter. (See reconciliation for Combined Sales to net
sales below.)
Sales of Printed Circuit Materials for the quarter totaled $24.2
million, up 24% from the $19.5 million reported in the first quarter
of 2002. Printed Circuit Material sales were also up 12% compared to
the fourth quarter of 2002. Revenue increases were driven by strong
sales of high frequency laminates into the satellite television and
cellular base station infrastructure markets as well as sales of
flexible laminates for disk drive applications and increased
penetration into cellular telephone handsets. The improved sales into
the cellular base station market reflected higher than expected sales
to two of the Company's most important customers.
First quarter sales of High Performance Foams were $17.3 million,
up 10% from quarter one last year. Compared to the fourth quarter of
2002, High Performance Foam revenues increased 11% this quarter,
propelled by healthy sales of urethane foams into industrial
applications, new polyolefin foam adoptions and progress on R/bak(R)
thin tapes.
Sales of Other Polymer Materials and Components totaled $10.4
million, down significantly from the $19.4 million in last year's
first quarter and the $14.3 million sold during the fourth quarter of
2002. Lower sales for this segment are primarily the result of the
Company's divestiture of MCD.
The revenues of Rogers' joint ventures increased by over 20%
compared to last year's first quarter. Sales at Durel Corporation, the
largest of Rogers' joint ventures, were 17% higher for the first
quarter of 2003 compared to the first quarter of 2002 as a result of
strength in automotive and cell telephone programs. Due to
seasonality, sales in the first quarter were 17% lower than the fourth
quarter of 2002.
Capital expenditures were $3.7 million during this year's first
quarter. The Company is planning on total capital expenditures for
2003 of approximately $25 million, mainly reflecting the move of the
polyolefin business to Carol Stream, Illinois and the expansion of
manufacturing operations in China.
Rogers continues to strengthen its already solid balance sheet.
The Company is generating positive cash from operations, lowering days
of sales outstanding for accounts receivable and keeping inventories
under control. Although the Company made a $3.1 million voluntary
early contribution to its pension plans during the first quarter, its
cash position, including short-term investments, increased $1.3
million to $30.2 million and it continues to be essentially debt free.
Manufacturing margins increased in the first quarter of 2003 to
32% compared to 30% in the first quarter of 2002. Increasing margins
are the result of improved efficiencies from the Company's Six Sigma
efforts, cost reductions, and greater operating leverage from higher
margin products.
Walter E. Boomer, Chairman of the Board and Chief Executive
Officer, commented, "We are pleased with our results despite the
difficult economic environment affecting many of the markets we serve.
Looking forward, we anticipate that for the second quarter we can
achieve earnings in the range of $0.32 to $0.36 per diluted share, an
increase of between 14% and 29% over the second quarter last year, on
sales of between $49 and $52 million. In our outlook for the second
quarter we see a mixture of negatives and positives. The economy does
not appear to be improving and the second quarter of the year is
typically a slow time for some of our primary markets. Having said
that, we continue to make improvements in our operations, control our
expenses, introduce products into new applications, gain market share
in several areas, and forge ahead with our plans for the future."
Safe Harbor Statement
Statements in this news release that are not strictly historical
may be deemed to be "forward-looking" statements which should be
considered as subject to the many uncertainties that exist in the
Company's operations and environment. These uncertainties, which
include economic conditions, market demand and pricing, competitive
and cost factors, and the like, are incorporated by reference in the
Rogers Corporation 2002 Form 10-K filed with the Securities and
Exchange Commission. Such factors could cause actual results to differ
materially from those in the forward-looking statements.
Additional Information and April 18th Conference Call
For more information, please contact the Company directly, visit
Rogers website on the Internet, or send a message by email.
Website Address: http://www.rogerscorporation.com
Financial E-mail: finfo@rogers-corp.com
Financial News Contact: James M. Rutledge, Vice President Finance
and Chief Financial Officer, Phone: 860-774-9605, FAX: 860-779-5585
Editorial Contact: Debra J. Granger, Phone: 860-774-9605, FAX:
860-779-5509, email: debra.granger@rogers-corp.com
A conference call to discuss first quarter results will be held on
Friday, April 18th at 9:00AM (Eastern Time).
Rogers participants in the conference call will be:
Walter E. Boomer, Chairman of the Board and CEO
Robert D. Wachob, President and COO
James M. Rutledge, Vice President Finance and CFO
Robert M. Soffer, Vice President and Secretary
A Q&A session will immediately follow management's comments.
To participate in the conference call, please call: 1-800-574-8929
toll-free in the United States and 1-706-634-1907 internationally.
There is no passcode for the live teleconference. For playback access,
please call: 1-800-642-1687 in the United States and 1-706-645-9291
internationally through 11:59PM, Friday, April 25th. The passcode for
the audio replay is 9613137.
The call will also be webcast live in a listen only mode. The
webcast may be accessed through links available on the Rogers
Corporation website at www.rogerscorporation.com. Replay of the
archived webcast will be available on the Rogers website beginning two
hours following the webcast.
Presentation of Information in this Press Release
In an effort to provide investors with additional information
regarding the Company's results, the Company may disclose certain
Non-GAAP information which management believes provides useful
information to investors. Management sometimes refers to "Combined
Sales" which are defined as net sales (as reported under GAAP) plus
50% of the revenues from the Company's four unconsolidated joint
ventures. These unconsolidated joint ventures are viewed by management
as an integral part of the Company's business and contribute towards
the Company's profits.
Reconciliation of Non-GAAP Financial Information
(Dollars in Thousands) First Quarter
2003 2002
Net Sales, as reported in this report
and in accordance with generally
accepted accounting principles $51.9 $54.6
50% of Rogers' Joint Venture Sales 17.0 14.1
Combined Sales $68.9 $68.7
Consolidated Statements of Income
Quarters Ended
(In Thousands, Except Per Share Amounts) March 30, March 31,
2003 2002
Net Sales $51,878 $54,558
Costs and Expenses:
Cost of Sales 35,390 38,315
Selling and Administrative 9,701 10,109
Research and Development 2,838 3,465
Total Costs and Expenses (Including
Depreciation and Amortization of:
2003 - $3,392; 2002 - $3,656) 47,929 51,889
Operating Income 3,949 2,669
Other Income less Other Charges 3,628 2,607
Interest Income/(Expense), Net 75 (97)
Income Before Income Taxes 7,652 5,179
Income Taxes 1,913 1,295
Net Income $5,739 $3,884
Net Income Per Share:
Basic $0.37 $0.25
Diluted $0.36 $0.24
Shares Used in Computing:
Basic 15,572 15,403
Diluted 16,038 16,049
Consolidated Balance Sheets
(In Thousands) March 30, December 29,
2003 2002
ASSETS
Current Assets:
Cash and Cash Equivalents $28,187 $22,300
Short-term Investments 2,036 6,628
Accounts Receivable, Net 33,050 32,959
Accounts Receivable - Joint Ventures 1,829 1,414
Note Receivable, Current 2,100 0
Inventories 18,072 18,069
Other Current Assets 6,663 6,305
Total Current Assets 91,937 87,675
Notes Receivable 9,900 12,000
Property, Plant and Equipment, Net 101,118 99,883
Investment in Unconsolidated Joint Ventures 22,684 21,860
Pension Asset 8,951 8,951
Goodwill and Other Intangible Assets, Net 22,200 22,204
Other Assets 5,145 5,128
Total Assets $261,935 $257,701
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $8,975 $10,125
Accrued Employee Benefits and Compensation 8,489 10,414
Other Current Liabilities 17,327 14,241
Total Current Liabilities 34,791 34,780
Noncurrent Deferred Income Taxes 8,517 8,308
Noncurrent Pension Liability 19,614 22,658
Noncurrent Retiree Health Care and Life
Insurance Benefits 6,197 6,197
Other Long-Term Liabilities 2,444 2,720
Shareholders' Equity 190,372 183,038
Total Liabilities and Shareholders'
Equity $261,935 $257,701
These statements are subject to year-end audit.
CONTACT: Rogers Corporation (Financial News Contact)
James M. Rutledge, 860/774-9605
or
Rogers Corporation (Editorial Contact)
Debra J. Granger, 860/774-9605
debra.granger@rogers-corp.com