Exhibit 99.1
Rogers Corporation Reports Second Quarter Results
ROGERS, Conn.--(BUSINESS WIRE)--July 20, 2005--Rogers Corporation
(NYSE:ROG) announced today that for the second fiscal quarter of 2005,
the Company lost $0.54 per diluted share, which includes a non-cash
charge involving the impairment of certain long-lived assets and the
write down of inventory and receivables within the polyolefin foam
operation of $13.2 million, or $0.81 per diluted share, as previously
announced on July 7, 2005. Last year Rogers earned $0.68 per diluted
share in the second quarter. Excluding the one-time $13.2 million,
after-tax impairment charge, non-GAAP net income for this quarter was
$4.4 million or $0.27 per diluted share.
Net sales in the second quarter were $83.4 million, compared to
the $93.3 million in the second quarter of 2004. This is in line with
the Company's July 7, 2005 revised guidance of approximately $84
million.
Printed Circuit Materials segment sales totaled $37.0 million,
down 22% from the second quarter of 2004. This business segment's
operating profit was $4.2 million, compared to $11.5 million a year
ago. The primary reason for the sales shortfall was with flexible
circuit material sales, which had a number of programs end and some
new programs delayed. The Company expects flexible laminate sales to
significantly improve in the third quarter as new programs ramp up.
High frequency circuit material sales for the quarter were 7% lower
compared to last year, which was in line with Company expectations.
Second quarter sales of High Performance Foams were $22.6 million,
up almost 4% from the second quarter of last year. Operating loss for
the segment was $19.7 million in the quarter, which includes the
non-cash charge involving the impairment of certain long-lived assets
and the write down of inventory and receivables within the polyolefin
foam operation of $21.4 million. Operating profit in this segment was
$1.3 million in the second quarter of 2004. Going forward, the Company
expects to see a marked improvement in operating profit from the
elimination of unprofitable products from polyolefin foams.
Sales of Polymer Materials and Components totaled $23.7 million
for the quarter, compared to last year's second quarter sales of $24.0
million. Durel sales were up 7% from the second quarter of last year,
driven by numerous new adoptions of its flexible keypad lamps. Rogers
remains on schedule with the previously announced capacity increase
for this business, and expects Durel sales and profit contribution to
increase in the coming quarters. The Company's Elastomer Components
Division (ECD) sales were down compared to last year, however, during
the second quarter of 2004, a significant amount of product was sold
in preparation for the business transition to China. This transition
was completed in the fourth quarter of 2004. ECD revenues were up 15%
sequentially from the first quarter of 2005, and almost all product
sold in this quarter was manufactured in China. Bus bar revenues were
up slightly over the previous year, and the Company expects sales to
steadily increase, as more programs come into production at the new
China operation. Rogers expects Polymer Materials and Components
operating profit to continue to improve in the third quarter, with
increasing returns from the completed and on-going strategic
initiatives within each of this segment's businesses.
Rogers' 50% owned joint ventures had quarterly sales of $21.2
million, versus $18.3 million last year. Sales growth in the Company's
two polyurethane foam joint ventures with Inoac and in Polyimide
Laminate Systems (PLS) helped overcome the sales decline at the Rogers
Chang Chun Technologies (RCCT) flexible circuit material joint
venture. Although sales were up in total for the joint ventures,
operating results decreased due to the significant sales decline at
RCCT and the start-up costs, including increased qualifications
trials, at the Rogers Inoac Suzhou joint venture.
Second quarter gross margin was 29% compared to 34% a year ago and
up sequentially over the first quarter gross margin of 27%.
The Company's cash and short-term investments ended the quarter at
$34.1 million, after repurchasing $5.0 million of the Company's common
stock in the quarter under its stock repurchase program. Rogers'
capital expenditures in the quarter were $7.9 million and inventories
were reduced by $2.3 million. The Company remains debt free and
capital expenditures continue to be funded from operations.
Robert D. Wachob, President and CEO, commented, "As we announced
in the July 7th press release, the Printed Circuits Materials segment,
specifically flexible circuits, was the primary cause of our reduced
revenues and profits. Despite the adverse factors affecting this
quarter, we are pleased with the up-turn in our flexible laminate
order rate. Our capacity expansion for Durel lamps is on schedule, and
we expect sequential quarterly growth of more than 20%. We anticipate
the High Performance Foams segment to have improved operating profit
as a result of eliminating unprofitable polyolefin products. For the
third quarter we expect sales to be between $85 and $88 million and
earnings per diluted share in the range of $0.36 to $0.40.
Commensurate with the sales increase, we also expect gross and
operating margins to improve."
Rogers Corporation, headquartered in Rogers, CT, U.S.A., develops
and manufactures high-performance specialty materials, which serve a
diverse range of markets including: portable communication devices,
communication infrastructure, consumer products, computer and office
equipment, ground transportation, and aerospace and defense. Rogers
operates manufacturing facilities in Connecticut, Arizona, and
Illinois in the U.S., in Gent, Belgium, in Suzhou, China, and in
Hwasung City, Korea. Sales offices are located in Belgium, Japan,
Taiwan, Korea, China, and Singapore.
Safe Harbor Statement
Statements in this news release that are not strictly historical
may be deemed to be "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on management's current
expectations and are 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 2004 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. All information in this press release is as of July 20,
2005, and Rogers undertakes no duty to update this information unless
required by law.
Additional Information and July 21st Conference Call
For more information, please contact the Company directly, visit
Rogers Web site on the Internet, or send a message by email.
Web site Address: http://www.rogerscorporation.com
Financial News Contact: Paul B. Middleton, Acting Chief Financial
Officer and Corporate Controller, Phone: 860-774-9605, FAX:
860-779-4714
Editorial Contact: Edward J. Joyce, Manager of Investor and Public
Relations
Phone: 860-779-5705, FAX: 860-779-5509,
Email: edward.joyce@rogerscorporation.com
A conference call to discuss second quarter results will be held
on Thursday, July 21st at 9:00AM (Eastern Time).
The Rogers participants in the conference call will be:
Robert D. Wachob, President and CEO
Paul B. Middleton, Acting CFO and Corporate Controller
Debra J. Granger, Director, Corporate Compliance and Control
Edward J. Joyce, Manager of Investor and Public Relations
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
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 (Eastern
Time), Thursday July 28, 2005. The pass code for the audio replay is
7939547.
The call will also be webcast live in a listen only mode. The
webcast may be accessed through links available on the Rogers
Corporation Web site at www.rogerscorporation.com. Replay of the
archived webcast will be available on the Rogers Web site beginning
two hours following the webcast.
(Financial Statements Follow)
Consolidated Statements of Income
Three Months Ended Six Months Ended
(IN THOUSANDS, EXCEPT PER July 3, July 4, July 3, July 4,
SHARE AMOUNTS) 2005 2004 2005 2004
- --------------------------- ---------- --------- ---------- ---------
Net Sales $83,356 $93,323 $169,902 $190,993
Costs and Expenses:
Cost of Sales(a) 58,979 61,657 122,295 125,941
Selling and
Administrative(b) 15,122 13,402 29,350 28,896
Research and Development 5,177 4,926 10,236 9,569
Impairment Charge(c) 20,030 - 20,030 -
---------- --------- ---------- ---------
Total Costs and
Expenses(d) 99,308 79,985 181,911 164,406
---------- --------- ---------- ---------
Operating Income (Loss) (15,952) 13,338 (12,009) 26,587
Other Income (Loss) less
Other Charges (321) 2,375 2,252 5,356
Interest Income/(Expense),
Net 134 22 362 100
---------- --------- ---------- ---------
Income (Loss) Before Taxes (16,139) 15,735 (9,395) 32,043
Income Taxes (7,325) 3,934 (5,707) 8,010
---------- --------- ---------- ---------
Net Income (Loss) $(8,814) $11,801 $(3,688) $24,033
---------- --------- ---------- ---------
Net Income (Loss) Per
Share:
Basic $(0.54) $0.72 $(0.23) $1.48
Diluted $(0.54) $0.68 $(0.23) $1.40
Shares Used in Computing:
Basic 16,271 16,390 16,338 16,283
Diluted 16,271 17,247 16,338 17,110
(a) Includes $1,158 write down of inventory associated with the
polyolefin foam operation
(b) Includes $440 of receivable write offs associated with the
polyolefin foam operation
(c) Includes $19,766 of charges related to impairment of
long-lived assets associated with the polyolefin foam
operation and $264 related to the impairment of a
held-for-sale building formerly used for the Elastomer
Components Division in Windham, CT.
(d) Including Depreciation and Amortization of: 2005 - $5,197 &
$10,476; 2004 - $4,215 & $9,004
Consolidated Balance Sheets
(IN THOUSANDS) July 3, Jan. 2,
2005 2005
- ----------------------------------------------- ---------- ----------
Assets
Current Assets:
Cash and Cash Equivalents $34,092 $37,967
Short-term Investments - 2,000
Accounts Receivable, Net 52,156 57,264
Accounts Receivable - Joint Ventures 6,523 5,176
Note Receivable, Current 2,100 2,100
Inventories 42,634 49,051
Asbestos-related insurance receivables 7,154 7,154
Other Current Assets 12,590 12,222
---------- ----------
Total Current Assets 157,249 172,934
---------- ----------
Notes Receivable, Long-term 4,200 4,200
Property, Plant and Equipment, Net 123,863 140,384
Investment in Unconsolidated Joint Ventures 17,484 18,671
Pension Asset 5,831 5,831
Goodwill and Other Intangible Assets, Net 23,187 29,072
Asbestos-related insurance receivables 28,803 28,803
Other Assets 5,388 5,300
---------- ----------
Total Assets $366,005 $405,195
---------- ----------
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable $14,387 $21,117
Accrued Employee Benefits and Compensation 14,718 18,427
Asbestos-related insurance liabilities 7,154 7,154
Other Current Liabilities 11,192 10,689
---------- ----------
Total Current Liabilities 47,451 57,387
---------- ----------
Noncurrent Deferred Income Taxes 5,236 14,111
Noncurrent Pension Liability 12,769 14,757
Noncurrent Retiree Health Care & Life
Insurance Benefits 6,483 6,483
Asbestos-related insurance liabilities 29,045 29,045
Other Long-term Liabilities 1,441 2,045
Shareholders' Equity 263,580 281,367
---------- ----------
Total Liabilities and Shareholders' Equity $366,005 $405,195
---------- ----------
These statements are subject to year-end audit.
(Reconciliation of Non-GAAP Figures Follow)
Reconciliation of Non-GAAP Net Income
-------------------------------------
GAAP Net Income (Loss), Millions $(8.8)
Less Non-cash Impairment Charge, Millions 13.2
- --------------------------------------------------------------------
Non-GAAP Net Income (Loss), Millions $4.4
Reconciliation of Non-GAAP Earnings (Loss) per Share
----------------------------------------------------
GAAP Earnings (Loss) per Share (Basic and Diluted) $(0.54)
Less Non-cash Impairment Charge per share 0.81
- ---------------------------------------------------------------------
Non-GAAP Earnings (Loss) per Share (Basic and Diluted) $0.27
Notes to our Non-GAAP Financial measures:
----------------------------------------
Rogers believes that net income from continuing operations and
diluted earnings per share, excluding the effect of the asset
impairment related to the Company's polyolefin operation, is a
measure that should be presented in addition to income determined
in accordance with generally accepted accounting principles (GAAP)
and is useful to investors. The following matters should be
considered when evaluating these non-GAAP financial measures:
-- Rogers reviews the operating results of its businesses
excluding the impact of any asset impairment because it
provides an additional basis of comparison. We believe that
these events are unusual in nature, and would not be
indicative of ongoing operating results. As a result,
management believes such charges should be excluded in order
to compare past, current and future periods.
-- Asset impairments principally represent adjustments to the
carrying value of certain assets and do not typically require
a cash payment.
-- Asset impairments are typically material and are considered to
be outside the normal operations of a business. Corporate
management is responsible for making decisions about asset
impairment and related charges.
CONTACT: Rogers Corporation
Edward Joyce, 860-779-5705
Fax: 860-779-5509
E-mail: edward.joyce@rogerscorporation.com
Rogers' Web site: www.rogerscorporation.com