Exhibit 99.1
Rogers Corporation Reports Record Fourth Quarter Sales and Earnings;
Net Earnings up 66% over Fourth Quarter 2002 and 41% for the Year
ROGERS, Conn.--(BUSINESS WIRE)--Feb. 4, 2004--Rogers Corporation
(NYSE:ROG) announced today that diluted earnings per share for the
fourth quarter of 2003 were $0.54, up 59% compared to the $0.34 earned
in the fourth quarter of 2002. For the year, net income increased to
$26.3 million, with earnings per diluted share rising to $1.61 in 2003
compared to $1.16 in 2002.
Net sales in the fourth quarter were $85.8 million, up 67%
compared to the $51.5 million sold in the fourth quarter of 2002. The
Durel acquisition at the beginning of the fourth quarter of 2003 added
$20.7 million to sales in the quarter. Fourth quarter 2002 revenues of
the Moldable Composites Division (MCD), divested in November of 2002,
were $4.7 million. For the full year, 2003 net sales increased by 11%
to $243.3 from $219.4 in 2002. Total sales included in 2002 for the
divested MCD division were $30.3 million. Combined Sales, which
include half of the sales of Rogers' unconsolidated joint ventures,
were up over 30% compared to the fourth quarter of 2002. Combined
Sales for the year totaled $297.0 million, up almost 4% compared to
the $286.7 million in 2002. (See reconciliation for Combined Sales to
net sales under Non-GAAP information included at the end of this press
release.)
Sales of Printed Circuit Materials for the quarter again set a new
sales record totaling $38.1 million, up over 76% from the fourth
quarter of 2002. The flexible circuit material portion of this
segment's sales rose 118% over the same quarter last year, as the
cellular and handheld mobile device markets surged. While the high
frequency laminate portions revenue continued to be driven by strong
sales into the satellite television market, as well as sales into the
expanding wireless 3G infrastructure market. For the full year,
Printed Circuit Materials had revenues of $114.2 million, up 39%.
Fourth quarter sales of High Performance Foams were $17.8 million,
up over 14% from the fourth quarter of last year. This quarter marked
an all-time sales record for the PORON(R) cellular urethane foam
product line. Increased revenues were generated primarily through new
design wins in various industrial applications as well as dramatic
growth in China. For the year, High Performance Foams had $69.5
million in sales, up 7% from $65.1 million in 2002. Urethane foams led
the increase, which more than offset lower sales of polyolefin foams.
Sales of Polymer Materials and Components totaled $29.9 million
for the quarter, compared to last year's fourth quarter sales of $14.3
million. Last year's quarterly revenues included the now divested
Moldable Composites Division. This year, sales for the quarter include
Durel Division sales, formerly a 50-50 joint venture with 3M. For the
full-year, Polymer Materials and Components had revenues of $59.6
million, compared to 2002 full year sales of $71.9 million.
The Company's three 50% owned joint ventures had a strong quarter
with total sales of $16.6 million. Total fourth quarter 2002 sales of
$40.9 million included the three continuing joint ventures and Durel.
Rogers purchased 3M's 50% share of Durel at the beginning of the
fourth quarter of 2003. Accordingly, Durel's fourth quarter 2003
revenues are included in Rogers net sales. Due to cell phone and LCD
panel application sales Rogers Chang Chun Technologies (RCCT), a
flexible circuit materials joint venture, saw sales increase by almost
150% over the fourth quarter 2002. Rogers Inoac Corporation (RIC),
which produces polyurethane foams, also had strong sales growth in the
fourth quarter, primarily driven by industrial applications in Asia.
Fourth quarter gross margin was 33.4%. For the year, Rogers' gross
margin was 32.3%, a significant improvement over the 2002 full-year
margin of 31.6%. This is the result of our continuing efforts to
improve yields, six sigma projects and increasing sales volumes.
Rogers' balance sheet remains in excellent condition. Rogers' cash
and short-term investments balance increased to $34.5 million versus
$28.9 million at the end of 2002 despite the cash used to acquire 3M's
50% share of Durel. Net capital expenditures were $4.7 million for the
fourth quarter, and $16.0 million for the year. Inventory levels
remained in line, proportionally increasing slightly less than sales.
The Company continues to be debt free.
Robert D. Wachob, President and COO commented, "Business remains
robust; looking forward we will continue to focus our efforts on
growing our business in the most profitable markets within our core
technologies. This strategic agenda requires sometimes having to make
some difficult decisions, such as the previously announced Windham
plant closure and moving that business to our manufacturing facility
in Suzhou, China. Some opportunities for the coming year include
integrating the recently announced KF Inc. acquisition, completing the
transfer of the polyolefin product lines into our Carol Stream,
Illinois facility, and investing in a number of other ongoing capacity
expansion projects. We are confident in our strategic direction and
believe these actions will help us continue to deliver significant
sales and earnings growth. In the first quarter of 2004 we expect
revenues to be in the range of $85 to $90 million with earnings per
diluted share of $0.60 to $0.65. This represents a 67% to 81% increase
in earnings over the first quarter of 2003."
Walter E. Boomer, Chairman and CEO stated, "I am very pleased with
the results achieved in 2003. Our performance is testament to the hard
work and professionalism of Rogers' employees. It is true that our
strategic markets of wireless communications, networking and computing
improved considerably during 2003, but it is also true that we were
prepared to take advantage of an improving economy when it arrived. As
previously announced, I will retire on April 1, 2004. I have the
utmost confidence in Bob Wachob, who will lead Rogers as President and
CEO, and in our superb management team. Together, with our outstanding
employees, this should ensure Rogers' future success. I look forward
to working with them as a continuing member of the Board of
Directors."
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, rapid technological change, new product
introductions, legal proceedings, 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 February 5th Conference Call
For more information, please contact the Company directly, visit
Rogers website on the Internet, or send a message by email.
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*T
Website Address: http://www.rogerscorporation.com
Financial News Contact: James M. Rutledge, Vice President Finance
and Chief Financial Officer, Phone: 860-774-9605, Fax: 860-779-5585
Editorial Contact: Edward J. Joyce, Manager of Investor and Public
Relations, Phone: 860-774-5705, Fax: 860-779-5509,
email: edward.joyce@rogerscorporation.com
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A conference call to discuss fourth quarter and full year results
will be held on Thursday, February 5th at 9:00AM (Eastern Time).
Rogers participants in the conference call will be:
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Robert D. Wachob, President and COO
James M. Rutledge, Vice President Finance and CFO
Robert M. Soffer, Vice President and Secretary
Paul B. Middleton, Corporate Controller
*T
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, Thursday February 12th. The pass code
for the audio replay is 5004304.
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 unconsolidated joint ventures.
These unconsolidated joint ventures are viewed by management as
important to the Company's business and make a significant
contribution towards the Company's profits.
Reconciliation of Non-GAAP Financial Information
Fourth Quarter Full Year
------------------------------------
(Dollars in Millions) 2003 2002 2003 2002
------------------------------------
Net Sales, as reported in this
report and in accordance with
generally accepted accounting
principles $85.8 $51.5 $243.3 $219.4
50% of Durel Joint Venture Sales -- 12.5 25.7 42.0
50% of Rogers' continuing Joint
Venture Sales 8.3 7.9 28.0 25.3
----- ----- ------ ------
Combined Sales $94.1 $71.9 $297.0 $286.7
===== ===== ====== ======
Consolidated Statements of Income(a)
Quarters Ended Years Ended
(IN THOUSANDS, EXCEPT PER Dec 28, Dec 29, Dec 28, Dec 29,
SHARE AMOUNTS) 2003 2002 2003 2002
- ----------------------------------------------------------------------
Net Sales $85,795 $51,516 $243,329 $219,438
Costs and Expenses:
Cost of Sales 57,175 33,663 164,789 150,183
Selling and Administrative 14,219 9,559 43,304 39,335
Acquisition/Restructuring
Costs - 1,600 - 2,150
Research and Development 4,533 3,074 13,665 13,596
------- ------- -------- --------
Total Costs and Expenses
(Including Depreciation and
Amortization of: 2003 -
$11,488; 2002 - $13,571)(b) 75,927 47,896 221,758 205,264
------- ------- -------- --------
Operating Income 9,868 3,620 21,571 14,174
Other Income less Other
Charges 1,985 3,096 13,143 10,861
Interest Income/ (Expense),
Net 141 31 320 (226)
------- ------- -------- --------
Income Before Income Taxes 11,994 6,747 35,034 24,809
Income Taxes 2,999 1,325 8,759 6,202
------- ------- -------- --------
Net Income $ 8,995 $ 5,422 $ 26,275 $ 18,607
------- ------- -------- --------
Net Income Per Share:
Basic $ 0.56 $ 0.35 $ 1.67 $ 1.20
------- ------- -------- --------
Diluted $ 0.54 $ 0.34 $ 1.61 $ 1.16
------- ------- -------- --------
Shares Used in Computing:
Basic 15,964 15,530 15,775 15,471
------- ------- -------- --------
Diluted 16,627 15,970 16,319 16,023
------- ------- -------- --------
(a) Statements are subject to year-end audit.
(b) For the twelve month periods.
Consolidated Balance Sheets(c)
(IN THOUSANDS) Dec 28, Dec 29,
2003 2002
- ----------------------------------------------------------------------
Assets
Current Assets:
Cash and Cash Equivalents $ 31,476 $ 22,300
Short-term Investments 3,005 6,628
Accounts Receivable, Net 52,981 32,959
Accounts Receivable - Joint Ventures 3,178 1,414
Note Receivable, Current 2,100 2,100
Inventories 27,501 18,069
Other Current Assets 6,856 6,305
-------- --------
Total Current Assets 127,097 89,775
-------- --------
Notes Receivable, Long Term 7,800 9,900
Property, Plant and Equipment, Net 131,157 99,883
Investment in Unconsolidated Joint Ventures 10,741 21,860
Pension Asset 6,886 8,951
Goodwill and Other Intangible Assets, Net 25,121 22,204
Other Assets 5,638 5,128
-------- --------
Total Assets $314,440 $257,701
-------- --------
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable $ 20,442 $ 10,125
Accrued Employee Benefits and Compensation 13,359 10,414
Other Current Liabilities 16,222 14,241
-------- --------
Total Current Liabilities 50,023 34,780
-------- --------
Noncurrent Deferred Income Taxes 14,058 8,308
Noncurrent Pension Liability 14,909 22,658
Noncurrent Retiree Health Care and Life
Insurance Benefits 6,198 6,197
Other Long-Term Liabilities 2,383 2,720
Shareholders' Equity 226,869 183,038
-------- --------
Total Liabilities and Shareholders' Equity $314,440 $257,701
-------- --------
(c) Statements are subject to year-end audit.
CONTACT: Rogers Corporation
James M. Rutledge, 860-774-9605
or
Edward J. Joyce, 860-774-5705
edward.joyce@rogerscorporation.com