Click here to close now.

Welcome!

News Feed Item

Rogers Corporation Reports All-Time Record Quarterly Sales for the Second Quarter of 2014

Rogers Corporation (NYSE:ROG) today announced financial results for the second quarter of 2014, reporting all-time record net sales of $153.5 million and net income from continuing operations of $0.58 per diluted share. Second quarter 2013 net sales were $132.5 million with net income from continuing operations of $0.32 per diluted share, which included net special charges of $0.21 per diluted share.

Bruce D. Hoechner, President and CEO commented: "We are very pleased to report that in the second quarter we achieved strong top-line performance and continued to improve our gross margins. Growth across each of the business segments led Rogers to record all-time quarterly net sales.

On the spending side, our selling and administrative expenses increased as we accelerated investments in business systems that will allow us to scale the company more efficiently and in our evaluation efforts of M&A opportunities. We also had a significant increase in bonus accruals due to our very strong first half performance and current strength of the business. We believe the investments we are making in the near term will position us to build upon the excellent top-line growth we've achieved over the past several quarters.

We believe Rogers’ strong sales performance reflects the health of the businesses and our participation in growing markets with strong tailwinds. In our view, these factors will continue to have a positive impact on the Company’s results."

Business Segment Discussion

Printed Circuit Materials

Printed Circuit Materials reported all-time record quarterly net sales of $61.5 million for the second quarter of 2014, an increase of 34.9% from the $45.6 million reported in the second quarter of 2013. This strong growth was driven primarily by significant demand for high frequency materials to support wireless base station and antenna applications in connection with the global 4G/LTE infrastructure build-out, especially in China. In addition, there was increased demand for automotive radar applications for Advanced Driver Assistance Systems and certain applications in handheld devices for improved internet connectivity.

Power Electronics Solutions

Power Electronics Solutions reported net sales of $42.9 million for the second quarter of 2014, an increase of 5.2% compared to second quarter 2013 net sales of $40.8 million. This increase was led by strong growth in curamik® direct bonded copper substrates in x-by-wire and energy efficient motor drive applications across all regions. In addition, RO-LINX® power distribution systems experienced increased orders in mass transit and energy efficient drive applications in Asia and Europe. These increases more than offset weaker demand in laser diode and hybrid electric vehicle applications during the quarter.

High Performance Foams

In the second quarter of 2014, High Performance Foams reported net sales of $42.8 million, an increase of 7.2% compared to second quarter 2013 net sales of $39.9 million. The increase in net sales is primarily due to increased demand in battery applications for hybrid electric vehicles, as well as mass transit and consumer applications for cushioning, sealing and impact protection materials. Demand for High Performance Foams products from the mobile internet device market, including feature phones, was relatively flat this quarter.

Joint Ventures

Rogers’ 50% owned High Performance Foams joint ventures’ net sales totaled $12.8 million this quarter, an increase of 1.6% compared to the $12.6 million sold in the second quarter of 2013. The increase is due to generally improved demand across most end markets.

Operational Highlights

Rogers ended the second quarter of 2014 with cash and cash equivalents of $218.7 million, an increase of $26.8 million, or 14.0%, from $191.9 million at December 31, 2013. Capital expenditures were approximately $8.1 million for the second quarter and $10.3 million year-to-date 2014, and are expected to total approximately $25.0 million for the year.

The Company’s gross margin improved to 37.2% in the second quarter of 2014 from the 33.9% non-GAAP (33.5% GAAP) gross margin reported in the second quarter of 2013. The improvement was driven by the increased operating leverage on the increased sales volumes and by the operational efficiency improvement initiatives undertaken over the past year. Operating margin for the second quarter of 2014 was 10.6% compared to the non-GAAP of 10.1% (6.1% GAAP) in the second quarter of 2013, reflecting good progress on the Company’s overall goal to improve operating performance. Non-GAAP to GAAP reconciliations appear at the end of the press release.

The increase in selling and administrative expenses was driven by incentive compensation accruals, accelerated investments in internal process improvement projects and M&A evaluation efforts, Chief Financial Officer transition expenses, and other severance costs. The strong top-line performance makes this an opportune time to invest in business process improvements and M&A efforts in order to support the Company’s growth expectations.

The Company’s 2014 second quarter effective tax rate was 33.9%, higher than expected due to improved operating performance in higher tax jurisdictions. The Company currently projects its effective tax rate for 2014 will be approximately 29%.

Outlook

The Company projects third quarter 2014 net sales to be between $153 to $159 million with net income from continuing operations of between $0.65 and $0.75 per diluted share.

About Rogers Corporation

Rogers Corporation (NYSE:ROG) is a global leader in engineered materials to power, protect, and connect our world. With more than 182 years of materials science experience, Rogers delivers high-performance solutions that enable clean energy, internet connectivity, advanced transportation and other technologies where reliability is critical. Rogers delivers Power Electronics Solutions for energy-efficient motor drives, vehicle electrification and alternative energy; High Performance Foams for sealing, vibration management and impact protection in mobile devices, transportation interiors, industrial equipment and performance apparel; and Printed Circuit Materials for wireless infrastructure, automotive safety and radar systems. Headquartered in Connecticut (USA), Rogers operates manufacturing facilities in the United States, China, Germany, Belgium, Hungary, and South Korea, with joint ventures and sales offices worldwide. For more information, visit www.rogerscorp.com.

Safe Harbor Statement

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “intends,” “believes,” “estimates,” “should,” “target,” “may,” “project,” “guidance,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results or performance to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changing business, economic, and political conditions both in the United States and in foreign countries, particularly in light of the uncertain outlook for global economic growth, particularly in several of our key markets; increasing competition; any difficulties in integrating acquired businesses into our operations and the possibility that anticipated benefits of acquisitions and divestitures may not materialize as expected; delays or problems in completing planned operational enhancements to various facilities; our achieving less than anticipated benefits and/or incurring greater than anticipated costs relating to streamlining initiatives or that such initiatives may be delayed or not fully implemented due to operational, legal or other challenges; changes in product mix; the possibility that changes in technology or market requirements will reduce the demand for our products; the possibility of significant declines in our backlog; the possibility of breaches of our information technology infrastructure; the development and marketing of new products and manufacturing processes and the inherent risks associated with such efforts and the ability to identify and enter new markets; the outcome of current and future litigation; our ability to retain key personnel; our ability to adequately protect our proprietary rights; the possibility of adverse effects resulting from the expiration of issued patents; the possibility that we may be required to recognize impairment charges against goodwill and non-amortizable assets in the future; the possibility of increasing levels of excess and obsolete inventory; increases in our employee benefit costs could reduce our profitability; the possibility of work stoppages, union and work council campaigns, labor disputes and adverse effects related to changes in labor laws; the accuracy of our analysis of our potential asbestos-related exposure and insurance coverage; the fact that our stock price has historically been volatile and may not be indicative of future prices; changes in the availability and cost and quality of raw materials, labor, transportation and utilities; changes in environmental and other governmental regulation which could increase expenses and affect operating results; our ability to accurately predict reserve levels; our ability to obtain favorable credit terms with our customers and collect accounts receivable; our ability to service our debt; certain covenants in our debt documents could adversely restrict our financial and operating flexibility; fluctuations in foreign currency exchange rates; and changes in tax rates and exposure which may increase our tax liabilities. Such factors also apply to our joint ventures. We make no commitment to update any forward-looking statement or to disclose any facts, events, or circumstances after the date hereof that may affect the accuracy of any forward-looking statements, unless required by law. Additional information about certain factors that could cause actual results to differ from such forward-looking statements include, but are not limited to, those items described in our filings with the Securities and Exchange Commission ("SEC"), including those in Item 1A, Risk Factors, of the Company's Form 10-K for the year ended December 31, 2013 and subsequent Securities and Exchange Commission filings.

Additional Information and July 30, 2014 Conference Call

For more information, please contact the Company directly, via email or visit the Rogers website.

Website Address: http://www.rogerscorp.com

A conference call to discuss 2014 second quarter results will be held on Wednesday, July 30, 2014 at 9:00AM (Eastern Time).

A slide presentation will be made available prior to the start of the call. The slide presentation may be accessed under the investor relations sections of the Rogers Corporation website (www.rogerscorp.com/ir).

The Rogers participants in the conference call will be:

Bruce D. Hoechner, President and CEO
David Mathieson, Vice President Finance and CFO
Robert C. Daigle, Senior Vice President and CTO

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
1-973-935-8524 Internationally
There is no passcode for the live teleconference.

For playback access, please call: 1-855-859-2056 in the United States and 1-404-537-3406 internationally through 11:59PM (Eastern Time), Wednesday, August 6, 2014. The passcode for the audio replay is 60797684.

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.rogerscorp.com/ir. Replay of the archived webcast will be available on the Rogers website approximately two hours following the webcast.

(Financial Statements Follow)

 

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

 
  Three Months Ended   Six Months Ended
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) June 30,

2014

  June 30,

2013

June 30,

2014

  June 30,

2013

Net sales $ 153,495 $ 132,452 $ 300,135 $ 258,432
Cost of sales   96,357     88,023     189,078     172,713
Gross margin 57,138 44,429 111,057 85,719
 
Selling and administrative expenses 34,499 25,547 62,097 50,753
Research and development expenses 6,420 6,250 11,283 11,519
Restructuring and impairment charges   -     4,525     -     4,525
Operating income 16,219 8,107 37,677 18,922
 

Equity income in unconsolidated joint ventures

1,062

762

2,039

1,291

Other income (expense), net (76) (177) (1,268) (766)
Net realized investment gain (loss) - - - -
Interest income (expense), net   (720)     (830)     (1,468)     (1,735)
Income before income tax expense 16,485 7,862 36,980 17,712
 
Income tax expense   5,583     2,279     11,498     5,152
Income (loss) from continuing operations 10,902 5,583 25,482 12,560

Income (loss) from discontinued operations, net of income taxes

 

-

   

(18)

   

-

   

102

Net income $ 10,902   $ 5,565   $ 25,482   $ 12,662
 
Basic net income (loss) per share:
Income from continuing operations $ 0.60 $ 0.33 $ 1.41 $ 0.73
(Loss) from discontinued operations   -     -     -     0.01
Net Income $ 0.60   $ 0.33   $ 1.41   $ 0.74
 
Diluted net income (loss) per share:
Income from continuing operations $ 0.58 $ 0.32 $ 1.37 $ 0.71
(Loss) from discontinued operations   -     -     -     0.01
Net Income $ 0.58   $ 0.32   $ 1.37   $ 0.72
 
Shares used in computing:
Basic 18,158,244 17,107,727 18,054,543 17,090,093
Diluted     18,688,238     17,599,481     18,618,998     17,636,440
 

 

Condensed Consolidated Statements of Financial Position (Unaudited)

 
(IN THOUSANDS)   June 30, 2014   December 31, 2013
Assets  
Current assets:
Cash and cash equivalents $ 218,692 $ 191,884
Accounts receivable, net 102,360 85,126
Accounts receivable from joint ventures 1,974 1,897
Accounts receivable, other 2,857 2,638
Taxes receivable 89 1,578
Inventories 63,323 66,889
Prepaid income taxes 4,156 5,519
Deferred income taxes 7,789 7,271
Asbestos related insurance receivables 7,542 7,542
Other current assets   9,854     7,363
Total current assets 418,636 377,707
 
Property, plant and equipment, net 146,796 146,931
Investments in unconsolidated joint ventures 19,223 18,463
Deferred income taxes 40,847 44,854
Pension Asset 4,047 2,982
Goodwill 108,632 108,671
Other intangible assets 45,874 49,171
Asbestos related insurance receivables 49,508 49,508
Investments, other 507 507
Other long term assets   7,437     7,740
Total assets $ 841,507   $ 806,534
 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable $ 23,907 $ 17,534
Accrued employee benefits and compensation 24,562 29,724
Accrued income taxes payable 2,917 4,078
Current portion of lease obligation 842 849
Current portion of long term debt 20,000 17,500
Asbestos related liabilities 7,542 7,542
Other current liabilities   18,025     12,813
Total current liabilities 97,795 90,040
 
Long term debt 50,000 60,000
Long term lease obligation 6,960 7,170
Pension liability - 5,435
Retiree health care and life insurance benefits 9,649 9,649
Asbestos related liabilities 52,205 52,205
Non-current income tax 11,045 10,208
Deferred income taxes 16,204 16,077
Other long term liabilities 340 223
 
Shareholders’ equity
Capital stock 18,227 17,855
Additional paid in capital 127,930 110,577
Retained earnings 464,027 438,545
Accumulated other comprehensive income (loss)   (12,875)     (11,450)
Total shareholders’ equity   597,309     555,527
Total liabilities and shareholders’ equity $ 841,507   $ 806,534
 

Reconciliation of non-GAAP Financial Measures to the Comparable GAAP Measures

Non-GAAP Financial Measures

Management believes non-GAAP information provides meaningful supplemental information regarding the Company’s performance by excluding certain expenses that are generally non-recurring and accordingly may not be indicative of the core business operating results. The Company believes that this additional financial information is useful to management and investors in assessing the Company’s historical performance and when planning, forecasting and analyzing future periods. However, the non-GAAP information has limitations as an analytical tool and should not be considered in isolation from, or as alternatives to, financial information prepared in accordance with GAAP.

Reconciliation of GAAP to non-GAAP Gross Margin and Operating Margin from Continuing Operations for the Second Quarter of 2013:

The following tables include non-recurring charges related to special adjustments:

 
Gross Margin   Q2 2013
GAAP gross margin from continuing operations 33.5%
Curamik reorganization charges 0.1
Union contract ratification bonus 0.3
 
Total special charges 0.4
 
Non-GAAP gross margin from continuing operations 33.9%
 
 
Operating Margin   Q2 2013
GAAP operating margin from continuing operations 6.1%
Severance and related charges 2.3
Pension curtailment/settlement charges 1.2
Curamik reorganization charges 0.3
Other special charges 0.3
Total special charges 4.0
 
Non-GAAP operating margin from continuing operations 10.1%

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
"We have a tagline - "Power in the API Economy." What that means is everything that is built in applications and connected applications is done through APIs," explained Roberto Medrano, Executive Vice President at Akana, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of...
"AgilData is the next generation of dbShards. It just adds a whole bunch more functionality to improve the developer experience," noted Dan Lynn, CEO of AgilData, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
The cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...
"We provide a web application framework for building really sophisticated web applications that run on a browser without any installation need so we get used for biotech, defense, and banking applications," noted Charles Kendrick, CTO and Chief Architect at Isomorphic Software, in this SYS-CON.tv interview at @DevOpsSummit (http://DevOpsSummit.SYS-CON.com), held June 9-11, 2015, at the Javits Center in New York
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect t...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
In the midst of the widespread popularity and adoption of cloud computing, it seems like everything is being offered “as a Service” these days: Infrastructure? Check. Platform? You bet. Software? Absolutely. Toaster? It’s only a matter of time. With service providers positioning vastly differing offerings under a generic “cloud” umbrella, it’s all too easy to get confused about what’s actually being offered. In his session at 16th Cloud Expo, Kevin Hazard, Director of Digital Content for SoftL...
"A lot of the enterprises that have been using our systems for many years are reaching out to the cloud - the public cloud, the private cloud and hybrid," stated Reuven Harrison, CTO and Co-Founder of Tufin, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world...