Exhibit 99.1
Rogers Corporation Reports First Quarter Results
''All-time Record Quarterly Sales, Net Income and EPS''
ROGERS, Conn.--(BUSINESS WIRE)--April 20, 2006--Rogers Corporation
(NYSE:ROG) announced today that net sales in the first quarter were an all-time
quarterly record of $103 million, up 17% compared to the $88 million sold in the
first quarter of 2005 and well above the Company's March 2, 2006, guidance of
$96 to $99 million. Diluted earnings per share for the first quarter of 2006
were also an all-time quarterly record of $0.74, more than double the $0.30
earned in the first quarter of 2005, and significantly above the Company's
guidance of $0.60 to $0.64. Net income for the quarter was $12.6 million, which
includes $0.5 million of equity-based incentive compensation expense to comply
with the new share based compensation rules.
As described in detail in the 2005 Form 10-K filing, this release utilizes
the realignment of the Company's reporting segments, which now consist of:
Printed Circuit Materials, High Performance Foams, Custom Electrical Components,
and Other Polymer Products.
Printed Circuit Materials
Printed Circuit Materials segment sales totaled $36.4 million, down
slightly from the first quarter of 2005. The lack of year-over-year sales growth
in this business is due to the drop off in sales of circuit materials for
portable communication devices. The sales volume for new programs has not fully
replaced the volume lost due to programs reaching end of life. Circuit materials
used in cellular communication infrastructure and satellite TV dishes grew
during the quarter.
High Performance Foams
Sales of High Performance Foams were a record $25.5 million, an increase of
16.4% over the first quarter of last year. Foams sales growth was driven by
strength across all markets, most notably, consumer products, including
entertainment systems, portable communication devices, and a wide variety of
industrial applications. Part of this quarter's sales growth is also the result
of customers buying in advance of an announced April 1 price increase, which was
designed to mitigate the effects of rising raw material and energy costs.
Custom Electrical Components
Sales of Custom Electrical Components were $28.8 million for the quarter,
up 60% compared to last year's first quarter sales of $18.0 million. This
dramatic sales growth is due to market share increases in cell phones caused by
the industry's continued movement towards thin profile phones, as well as the
ramp up of components for a large disk drive array program. In the future, the
Company expects more opportunities in the disk drive array area as higher power
consumption in these systems is requiring the replacement of wiring harnesses
with more effective power distribution solutions. The capacity expansion
projects in Suzhou, China, for the product lines within this segment have been
completed. As these production facilities become more fully utilized, it is
expected that they will provide increasing operating efficiencies.
Other Polymer Products
Other Polymer Products revenues were $12.5 million in the first quarter, up
almost 10% over the $11.4 million in 2005. The greater than $5 million operating
loss experienced in this segment in the first quarter of 2005 was virtually
eliminated this quarter.
Joint Ventures
Rogers' 50% owned joint ventures had record quarterly sales totaling $30.3
million, up 23% from the first quarter of 2005. The Company's high performance
foam materials joint venture with Inoac Corporation operated its new facility in
Suzhou at three shifts for the full quarter, which enabled it to reduce its
backlog, and led directly to the record sales levels by allowing further
penetration into the consumer electronics, and portable communication markets.
The Rogers Chang Chun Technology flexible circuit material joint venture also
had record first quarter sales as it continues to gain market share with its
Taiwanese-headquartered customers.
First quarter gross margin was an all-time record at 35%, and a marked
improvement compared to 27% in the first quarter 2005. Rogers' gross margin
improved as a result of efficient utilization of the capacity added over the
last 24 months from expansion projects worldwide.
Rogers' balance sheet ended the quarter with a cash and short-term
investment balance of $65.2 million, an increase of $18.8 million, of which
approximately $10 million came from stock option exercises. Capital expenditures
were approximately $2.4 million for the first quarter, but are still expected to
be in the range of $30 to $35 million for the year. The Company's ratio of
current assets to current liabilities increased to 3:1, and the Company remains
essentially debt free.
Robert D. Wachob, Rogers' President and CEO, commented, "I am proud of the
progress our organization has made in the last 24 months and pleased to report
that the vast majority of issues associated with our start-up operations in Asia
are behind us. We now have adequate capacity in all of our reportable segments,
and we look forward to growing sales and the attendant margin improvements. As
usual, we expect sequentially softer sales in the second quarter due to the
seasonality of the portable communication devices market, and the effect of
advance buying for our foam materials ahead of the announced price increase.
Nevertheless, we expect strong second quarter sales of between $97 and $100
million, with earnings of $0.63 to $0.67 per diluted share, which includes about
$1 million of equity-based incentive compensation expense, both of which would
be significant improvements over the second quarter of last year. Barring any
unforeseen issues, 2006 is shaping up as a breakout year for Rogers as we
capitalize on the strategic initiatives in which we have invested over the last
several years."
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 2005 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 April 20, 2006, and Rogers undertakes no duty to update this
information unless required by law.
Additional Information and April 21 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 News Contact: Dennis M. Loughran, Vice President Finance and
Chief Financial Officer, Phone: 860-779-5508, 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 first quarter results will be held on Friday,
April 21 at 9:00AM (Eastern Time).
The Rogers participants in the conference call will be:
Robert D. Wachob, President and CEO
Dennis M. Loughran, Vice President Finance and CFO
Paul B. Middleton, Corporate Controller
Robert M. Soffer, Vice President, Treasurer and Secretary
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), Friday, April 28,
2006. The passcode for the audio replay is 8031490.
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.
(Financial Statements Follow)
Consolidated Statements of Income
Quarters Ended
(IN THOUSANDS, EXCEPT PER SHARE April 2, April 3,
AMOUNTS) 2006 2005
- ----------------------------------------------------------------------
Net Sales $103,131 $88,103
Costs and Expenses:
Cost of Sales 66,844 64,699
Selling and Administrative 17,385 14,400
Research and Development 5,961 5,060
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Total Costs and Expenses (a) 90,190 84,159
-----------------------------
Operating Income 12,941 3,944
Other Income less Other Charges 2,872 2,573
Interest Income, Net 350 228
-----------------------------
Income Before Income Taxes 16,163 6,745
Income Tax Expense 3,556 1,620
-----------------------------
Net Income $12,607 $5,125
-----------------------------
Net Income Per Share:
Basic $0.76 $0.31
-----------------------------
Diluted $0.74 $0.30
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Shares Used in Computing:
Basic 16,486 16,404
-----------------------------
Diluted 16,928 16,879
-----------------------------
(a) Including Depreciation and Amortization of: 2006 - $5,321; 2005 -
$5,279.
Consolidated Balance Sheets
(IN THOUSANDS) April January
2, 1,
2006 2006
- ----------------------------------------------------------------------
Assets
Current Assets:
Cash and Cash Equivalents $57,914 $46,401
Short-term Investments 7,281 -
Accounts Receivable, Net 70,657 62,850
Accounts Receivable - Joint Ventures 4,966 5,570
Note Receivable, Current 2,100 2,100
Inventories 53,002 43,502
Current Deferred Income Taxes 10,976 10,823
Asbestos-Related Insurance Receivables 7,023 7,023
Other Current Assets 3,114 2,761
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Total Current Assets 217,033 181,030
------------------
Notes Receivable, Long Term 2,100 2,100
Property, Plant and Equipment, Net 129,693 131,616
Investments in Unconsolidated Joint Ventures 22,186 20,260
Pension Asset 6,667 6,667
Goodwill 21,928 21,928
Other Intangible Assets 728 764
Asbestos-Related Insurance Receivables 30,581 30,581
Other Assets 6,094 5,654
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Total Assets $437,010 $400,600
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Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable $22,272 $18,992
Accrued Employee Benefits and Compensation 18,607 13,916
Accrued Income Taxes Payable 8,567 7,209
Asbestos-Related Liabilities 7,023 7,023
Other Current Liabilities 10,735 10,226
------------------
Total Current Liabilities 67,204 57,366
------------------
Noncurrent Deferred Income Taxes 6,516 6,359
Noncurrent Pension Liability 15,380 16,973
Noncurrent Retiree Health Care and Life Insurance
Benefits 7,048 7,048
Asbestos-Related Liabilities 30,867 30,867
Other Long-Term Liabilities 1,330 1,737
Shareholders' Equity 308,665 280,250
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Total Liabilities and Shareholders' Equity $437,010 $400,600
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CONTACT: Rogers Corporation
Ed Joyce, 860-779-5705