Exhibit 99.1
Rogers Corporation Releases Final Third Quarter Results
ROGERS, Conn.--(BUSINESS WIRE)--Nov. 20, 2006--Rogers Corporation
(NYSE:ROG) announced today that final GAAP earnings for the third
quarter of 2006 were $0.99 per diluted share, which includes a net tax
benefit of $1.4 million, or $0.08 per diluted share attributable to
specific tax related issues discussed below. Third quarter 2005 GAAP
earnings were $0.59 per share, which includes a $0.10 positive
adjustment from one-time tax benefits. As previously announced in the
Company's October 26, 2006 press release reporting preliminary third
quarter results, the Company had all-time record quarterly sales in
the third quarter of $124.0 million, up 45% compared to the $85.4
million in the third quarter of 2005. Third quarter GAAP income and
balance sheet statements, as well as a reconciliation of non-GAAP to
GAAP earnings for 2005 and 2006, are included at the end of this
release.
As previously announced in the October 26, 2006 press release, the
net tax benefit recorded in the third quarter is primarily related to
the successful resolution of an IRS audit covering tax years 2002 and
2003, and the completion of certain state tax audits. The final
resolution of these audits resulted in a benefit of $0.14 per diluted
share; however, this benefit was mitigated in part by the final
reconciliation of the approximate $2.3 million in tax assets requiring
additional review as previously disclosed in the October 26, 2006
release. In addition, the benefit was also reduced in part by certain
one-time provision adjustments associated with the Company's final
2005 fiscal year federal tax filing. The final reconciliation of the
approximate $2.3 million in tax assets and resulting adjustments were
predominantly balance sheet reclassifications, but did include a $0.6
million tax expense; all associated adjustments were included in the
2006 third quarter GAAP results.
Dennis M. Loughran, Rogers' Vice President Finance and CFO,
commented, "The results of this tax reconciliation stem directly from
our continuing efforts to remedy the tax accounting material weakness
identified in late 2005. The adjustments we have identified have been
non-cash and mainly balance sheet reclassifications for tax assets not
properly reflected. We have made great strides in our efforts to
address the material weakness and are working to fully remediate by
year end."
Rogers Corporation, headquartered in Rogers, CT, U.S.A., develops
and manufactures high-performance specialty material based products,
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 November
20, 2006, and Rogers undertakes no duty to update this information
unless required by law.
Consolidated Statements of
Income
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Three Months Ended Nine Months Ended
(IN THOUSANDS, EXCEPT PER October 1, October 2, October 1, October 2,
SHARE AMOUNTS) 2006 2005 2006 2005
- ----------------------------------------------------------------------
Net Sales $ 123,951 $ 85,391 $ 331,863 $ 258,127
Costs and Expenses:
Cost of Sales(a) 85,446 61,072 223,074 186,027
Selling and
Administrative(b) 15,495 12,369 47,123 41,893
Research and Development 6,016 4,897 17,986 15,133
Impairment Charge(c) - - 11,272 20,030
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Total Costs and
Expenses(d) 106,957 78,338 299,455 263,083
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Operating Income (Loss) 16,994 7,053 32,408 (4,956)
Other Income (Loss) less
Other Charges 2,137 1,000 7,588 3,254
Interest
Income/(Expense), Net 607 194 1,585 556
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Income (Loss) Before Taxes 19,738 8,247 41,581 (1,146)
Income Taxes 2,559 (1,630) 7,798 (7,335)
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Net Income (Loss) $ 17,179 $ 9,877 $ 33,783 $ 6,189
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Net Income (Loss) Per
Share:
Basic $ 1.02 $ 0.61 $ 2.02 $ 0.38
Diluted $ 0.99 $ 0.59 $ 1.92 $ 0.37
Shares Used in Computing:
Basic 16,846 16,267 16,703 16,314
Diluted 17,327 16,727 17,551 16,756
(a) Nine months ended 2005 includes $1,158 write down of inventory
associated with the polyolefin foam operation
(b) Nine months ended 2005 includes $440 of receivable write offs
associated with the polyolefin foam operation
(c) Nine months ended 2005 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 South
Windham, CT.
Nine months ended 2006 includes impairment of goodwill of $6,259
related to the polyolefin foam operation and $5,013 related to the
polyester based industrial laminates operation.
(d) Including Depreciation and Amortization of: 2006 - $4,849 &
$14,216; 2005 - $4,182 & $14,658;
Consolidated Balance Sheets
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(IN THOUSANDS) Oct. 1, 2006 Jan. 1, 2006
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Assets
Current Assets:
Cash and Cash Equivalents $ 33,731 $ 22,001
Short-term Investments 43,718 24,400
Accounts Receivable, Net 89,210 59,474
Accounts Receivable from Joint Ventures 5,145 5,570
Accounts Receivable, Other 5,950 3,376
Note Receivable, Current 2,100 2,100
Inventories 62,251 43,502
Current Deferred Income Taxes 14,477 10,823
Asbestos-related insurance receivables 7,023 7,023
Other Current Assets 3,555 2,761
--------------------------
Total Current Assets 267,160 181,030
--------------------------
Notes Receivable, Long-term 2,100 2,100
Property, Plant and Equipment, Net 134,244 131,616
Investment in Unconsolidated Joint
Ventures 23,318 20,260
Pension Asset 6,667 6,667
Goodwill, Net 10,656 21,928
Other Intangible Assets, Net 487 764
Asbestos-related insurance receivables 30,581 30,581
Other Assets 6,230 5,654
--------------------------
Total Assets $ 481,443 $ 400,600
--------------------------
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable $ 31,295 $ 18,992
Accrued Employee Benefits and
Compensation 29,377 13,916
Accrued Income Taxes Payable 6,421 7,209
Asbestos-related insurance liabilities 7,023 7,023
Other Current Liabilities 15,112 10,226
--------------------------
Total Current Liabilities 89,228 57,366
--------------------------
Noncurrent Deferred Income Taxes 3,320 6,359
Noncurrent Pension Liability 7,016 16,973
Noncurrent Retiree Health Care & Life
Insurance Benefits 7,048 7,048
Asbestos-related insurance liabilities 30,867 30,867
Other Long-term Liabilities 1,031 1,737
Shareholders' Equity 342,933 280,250
--------------------------
Total Liabilities and Shareholders'
Equity $ 481,443 $ 400,600
--------------------------
These statements are subject to year-end audit.
Reconciliation of Third Quarter 2005 Non-GAAP Earnings per
Share
- ---------------------------------------------------------------
GAAP Earnings per Diluted Share $0.59
Tax Adjustment per share 0.10
- ----------------------------------------------------------------------
Non-GAAP Earnings per Diluted Share $0.49
Reconciliation of Third Quarter 2006 Non-GAAP Earnings per
Share
- ---------------------------------------------------------------
GAAP Earnings per Diluted Share $0.99
Tax Adjustment per share 0.08
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Non-GAAP Earnings per Diluted Share $0.91
Notes to our Non-GAAP Financial Measures:
Rogers believes that net income from continuing operations and
diluted earnings per share, excluding the effect of one-time
adjustments, is useful information for investors and should be
presented in addition to income determined in accordance with
generally accepted accounting principles (GAAP).
The third quarter 2005 results include additional one-time
adjustments to earnings required to properly state certain tax
accounts as of the end of that period. These adjustments primarily
relate to an IRS audit of Durel Corporation tax filings for certain
years prior to the Company's acquisition of this business in 2003.
The one-time tax adjustment in the third quarter of 2006 was the
result of a favorable determination of IRS audits for the 2002 and
2003 fiscal years, adjustments relating to the fiscal 2005 federal tax
filing, and a one-time tax expense associated with reconciliation of
the above mentioned $2.3 million tax assets.
Rogers reviews the operating results of its businesses excluding
the impact of any one-time tax adjustments because it provides an
additional basis of comparison. As a result, management believes that
excluding such adjustments is useful in comparing past, current and
future periods.
CONTACT: Rogers Corporation
Edward J. Joyce, 860-779-5705
Manager of Investor and Public Relations
edward.joyce@rogerscorporation.com