Rogers Corporation (NYSE:ROG) announced today third quarter 2009
revenues of $81.0 million and net earnings of $0.40 per diluted share,
which includes $0.04 per diluted share of one-time integration expenses
associated with the acquisition concluded in the second quarter of this
year. Revenues and earnings exceeded the Company's September 15, 2009
updated guidance of $74 to $77 million in sales and earnings of $0.22 to
$0.28 per diluted share, which included an estimate of $1.0 million or
$0.06 per share of one-time integration costs associated with the
acquisition. Third quarter 2008 revenues were $96.3 million with net
earnings of $0.46 per diluted share from continuing operations. A
reconciliation of GAAP to non-GAAP operating results for the third
quarter and year-to-date 2009 is included at the end of this release.
High Performance Foam sales were $33.8 million for the third quarter of
2009, on par with the third quarter 2008 sales of $33.9 million. Sales
of high performance urethane foams in the third quarter of 2009 were
strong into the portable communications and consumer electronics market
segments. Additionally during the quarter, orders increased for silicone
foam materials into the aerospace, mass transit and general industrial
markets. The integration of the silicone foam product lines acquired
from MTI Global in the second quarter of 2009 is currently on schedule
and is expected to be completed on plan and within budget.
Printed Circuit Materials
Sales of Printed Circuit Materials for the quarter totaled $28.6
million, down 10.1% from the $31.8 million reported in the third quarter
of 2008. During the third quarter of 2009 there was strong demand for
high frequency circuit materials into the satellite TV market for low
noise block-down converters (LNB's) in China and moderate demand for
this application in the US and Europe. Sales into the wireless
infrastructure market were down slightly in the third quarter compared
to last year's third quarter as sales for 3G systems in China were
minimal. Additionally, high frequency circuit material sales into the
defense and high reliability markets were up modestly in the third
quarter. The Company expects sales for high frequency printed circuit
materials for the China 3G build-out to increase slightly in the fourth
quarter.
Custom Electrical Components
Custom Electrical Component sales for the third quarter were $12.1
million, compared to sales of $23.2 million reported in the third
quarter of 2008. This year-over-year decrease in sales is directly
related to the previously announced decline in the demand for
electroluminescent (EL) lamps for keypad backlighting in the portable
communications market. Sales of Power Distribution System products into
the mass transit market were stable for the third quarter of 2009. Power
Distribution System products continue to make good progress in the
sustainable energy markets for wind turbine applications although
funding for these large scale projects continues to be challenging.
Joint Ventures
Rogers' 50% owned joint ventures had quarterly sales totaling $30.4
million, a decrease of 7.3% compared to the $32.8 million sold in the
third quarter of 2008. Although down year-over-year, there was a
sequential rebound in joint venture sales into the consumer electronics,
hard disk drive and cell phone markets in the third quarter of 2009.
Operational Highlights
Rogers' balance sheet ended the third quarter with a cash and short-term
investment balance of $43.3 million and an auction rate securities
balance of $38.6 million. During the third quarter, the Company had
approximately $3.1 million of auction rate securities redeemed at par.
Capital expenditures were approximately $2.7 million for the third
quarter of 2009 and are expected to be in the $14 million range for the
year.
Rogers' gross margin for the third quarter of 2009 was 30.4% versus
31.7% in the third quarter of 2008. The third quarter 2009 gross margin
benefited from enhanced operational efficiencies and significant cost
reduction efforts that were implemented earlier this year. Inventories
at the end of the third quarter totaled $34.7 million versus $46.0
million at the end of the third quarter of 2008 and $41.6 million at the
end of 2008. The Company's third quarter effective tax rate was 6.7%.
The Company believes its tax rate will be in the range of 6% to 9% for
the fourth quarter of 2009.
Robert D. Wachob, Rogers' President and CEO commented; "All year we have
been working to position ourselves to take advantage of the eventual
economic recovery. It has begun and our results reflect that
preparation. While we did reduce costs earlier this year we also
expended considerable effort in improving our productivity and that
contributed significantly to our performance in the third quarter. We
are poised to continue to take advantage of the developing economic
recovery around the world. With China celebrating National Day Golden
Week at the beginning of October, I believe $3 to $4 million of
September sales would have normally occurred during the October holiday
week. With that in mind I expect fourth quarter sales of $73 to $77
million and earnings of $0.30 to $0.36 per diluted share, which include
an estimated $0.8 million or $0.05 per share of one-time integration
costs associated with the silicone business assets the Company acquired
during the second quarter."
About Rogers Corporation
Rogers Corporation, headquartered in Rogers, CT, is a global technology
leader in the development and manufacture of high performance,
specialty-material-based products for a variety of applications in
diverse markets including: portable communications, communications
infrastructure, computer and office equipment, consumer products, ground
transportation, aerospace and defense. Rogers operates manufacturing
facilities in the United States (Arizona, Connecticut, Illinois and
Virginia), Europe (Ghent, Belgium and Bremen, Germany) and Asia (Suzhou,
China). In Asia, Rogers maintains sales offices in Japan, China, Taiwan,
Korea and Singapore. Rogers has joint ventures in Japan and China with
INOAC Corporation, in Taiwan with Chang Chun Plastics Co., Ltd. and in
the US with Mitsui Chemicals, Inc.
The world runs better with Rogers.(R) www.rogerscorp.com
Safe Harbor Statement
Statements in this news release other than historical facts, including
without limitation statements regarding the Company's business strategy,
future results of operations and financial position, and plans and
objectives of management, are 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 risks and uncertainties that could cause
results to differ materially from those set forth in or implied by such
forward-looking statements. These risks and uncertainties include
economic conditions, market demand and pricing, competitive and cost
factors, rapid technological change, new product introductions, legal
proceedings, and other risk factors described in the Company's Form 10-K
for the fiscal year ended December 31, 2008 with the Securities and
Exchange Commission (SEC) and other Company filings with the SEC. All
information in this press release is as of November 2, 2009 and Rogers
undertakes no duty to update this information unless required by law.
Additional Information and November 3, 2009 Conference Call
For more information, please contact the Company directly, visit Rogers'
website on the Internet, or send a message by email.
Website Address: www.rogerscorp.com
A conference call to discuss first quarter results will be held on
Tuesday, November 3, 2009 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 Debra J. Granger, Vice President,
Corporate Compliance and Controls Robert M. Soffer, Vice President
and Secretary Ronald J. Pelletier, Corporate Controller William
J. Tryon, 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
1-973-935-8524 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),
Tuesday, November 10, 2009. The passcode for the audio replay is
37754429.
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.
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 Income (Unaudited)
Three Months Ended Nine Months Ended
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) September 30, September 28, September 30, September 28,
2009 2008 2009 2008
Net sales $ 81,019 $ 96,317 $ 213,862 $ 286,788
Cost of sales 56,422 65,771 158,293 194,394
Gross margin 24,597 30,546 55,569 92,394
Selling and administrative expenses 16,390 19,987 51,941 55,906
Research and development expenses 3,812 5,719 13,526 16,920
Restructuring and impairment charges 189 - 18,111 -
Operating income (expense) net 4,206 4,840 (28,009 ) 19,568
Equity income in unconsolidated joint ventures 2,287 2,536 3,494 5,145
Other income (loss) less other charges 212 570 (110 ) 2,256
Net impairment gain (loss) - - (453 ) -
Interest income, net 81 583 368 2,013
Acquisition gain - - 2,908 -
Income (loss) from continuing operations before income taxes 6,786 8,529 (21,802 ) 28,982
Income tax expense 455 1,422 48,118 7,572
Income (loss) from continuing operations 6,331 7,107 (69,920 ) 21,410
Income from discontinued operations - 838 - 1,251
Net income (loss) $ 6,331 $ 7,945 $ (69,920 ) $ 22,661
Basic net income (loss) per share:
Income (loss) from continuing operations $ 0.40 $ 0.46 $ (4.46 ) $ 1.36
Income from discontinued operations, net - 0.05 - 0.08
Net income (loss) $ 0.40 $ 0.51 $ (4.46 ) $ 1.44
Diluted net income (loss) per share:
Income (loss) from continuing operations $ 0.40 $ 0.46 $ (4.46 ) $ 1.35
Income from discontinued operations, net - 0.05 - 0.08
Net income (loss) $ 0.40 $ 0.51 $ (4.46 ) $ 1.43
Shares used in computing:
Basic 15,712,724 15,580,678 15,674,898 15,748,032
Diluted 15,736,318 15,706,531 15,674,898 15,816,923
Condensed Consolidated Statements of Financial Position (Unaudited)
(IN THOUSANDS) September 30, December 31,
2009 2008
Assets
Current assets:
Cash and cash equivalents $ 42,306 $ 70,170
Short-term investments 1,001 455
Accounts receivable, net 52,428 44,492
Accounts receivable from joint ventures 2,726 3,185
Accounts receivable, other 1,558 2,765
Inventories 34,734 41,617
Prepaid income taxes 1,967 1,579
Deferred income taxes - 9,803
Asbestos-related insurance receivables 4,632 4,632
Assets held for sale 6,400 -
Other current assets 6,243 5,595
Total current assets 153,995 184,293
Property, plant and equipment, net 129,153 145,222
Investments in unconsolidated joint ventures 32,084 31,051
Investments, Other 5,000 -
Deferred income taxes - 37,939
Goodwill and other intangibles 10,353 9,634
Asbestos-related insurance receivables 19,416 19,416
Long-term marketable securities 38,648 42,945
Other long-term assets 5,044 4,933
Total assets $ 393,693 $ 475,433
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 11,628 $ 11,619
Accrued employee benefits and compensation 18,791 23,378
Accrued income taxes payable 1,447 1,318
Asbestos-related liabilities 4,632 4,632
Other current liabilities 9,721 18,889
Total current liabilities 46,219 59,836
Noncurrent pension liability 35,683 43,683
Noncurrent retiree health care and life insurance benefits 7,793 7,793
Asbestos-related liabilities 19,644 19,644
Non Current Deferred Tax Liability 265 -
Other long-term liabilities 8,438 8,333
Shareholders' equity 275,651 336,144
Total liabilities and shareholders' equity $ 393,693 $ 475,433
Reconciliation of GAAP to Non-GAAP Earnings Per Share for the
Third Quarter and YTD 2009
Q3 2009 QTD GAAP earnings per share $0.40
Less:
MTI Global integration costs (0.04)
Non-GAAP earnings per diluted share $0.44
Q3 2009 YTD GAAP loss per share $(4.46)
Less:
Valuation allowance on US deferred tax asset (3.39)
Impairment of certain long-lived assets (0.86)
Severance charges (0.24)
Product liability claim (0.12)
Other charges (0.08)
TI Global integration costs (0.06)
Gain on acquisition of MTI Global assets 0.19
Tax benefit on foreign impairment charges 0.21
Non-GAAP earnings per diluted share $(0.11)
SOURCE: Rogers Corporation
Rogers Corporation
Financial News Contact:
Dennis M. Loughran, 860-779-5508
Vice President Finance and Chief Financial Officer
Fax: 860-779-4714
or
Investor Contact:
William J. Tryon, 860-779-4037
Manager of Investor and Public Relations
Fax: 860-779-5509
william.tryon@rogerscorporation.com
