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8-K - ROGERS CORPORATION 8-K - ROGERS CORPa6814442.htm

Exhibit 99.1

Rogers Corporation Reports All-Time Record Quarterly Sales for the Second Quarter of 2011

ROGERS, Conn.--(BUSINESS WIRE)--August 1, 2011--Rogers Corporation (NYSE:ROG) announced today record quarterly sales for the second quarter of 2011 of $143.7 million and earnings of $0.73 per diluted share, exceeding the Company’s second quarter guidance announced on May 2, 2011 of $134 - $140 million of revenue and earnings of $0.62 - $0.71 per diluted share. This is the second consecutive quarter that the Company has reported record quarterly sales. In the second quarter of 2010 the Company reported revenues of $96.6 million with earnings of $0.52 per diluted share.

Power Electronic Solutions

Curamik Electronic Solutions reported record sales of $34.6 million for the second quarter of 2011. Curamik continues to see very strong demand for its structured ceramic substrates, which are used for IGBT (Insulated Gate Bipolar Transistor) power modules in major markets such as energy efficient motor drives, wind and solar power generation, and hybrid electric vehicle applications. Power Distribution Systems also reported record quarterly sales of $14.0 million for the second quarter of 2011 as compared to $10.1 million in the second quarter 2010, an increase of 38.6%. Power Distribution Systems’ products continue to experience high demand in mass transit applications and wind and solar power inverters.

High Performance Foams

For the second quarter of 2011, High Performance Foams reported record sales of $44.0 million, an increase of 13.1% compared to second quarter 2010 sales of $38.9 million. Sales of high reliability silicone foam products reached a quarterly record driven by strong demand in aircraft, communications infrastructure, solar power, and hybrid electric vehicle applications. Sales of urethane foam products also reached a quarterly record with significant growth in large-screen mobile internet devices and general industrial applications. In addition, High Performance Foams’ unique PORON® XRD™ shock-absorbing materials continue to win new adoptions in sports and impact apparel.

Printed Circuit Materials

Sales of Printed Circuit Materials totaled $43.4 million for the second quarter 2011, an increase of 29.2% from the $33.6 million reported in the second quarter of 2010. The increase was fueled by robust demand in the wireless infrastructure market, primarily due to the global expansion of 3G and 4G systems. Radar applications for both high reliability and automotive remained strong. Sales and design activity for new programs in wireless antennas continued at a brisk pace. The Company’s high speed digital Theta® products have completed qualification by a major OEM and have now been released to new program designers.

Joint Ventures

Rogers’ 50% owned High Performance Foams joint ventures had quarterly sales totaling $16.8 million compared to the $16.4 million sold in the second quarter of 2010. The relatively flat joint venture sales this quarter compared to the year ago quarter were due to strong sales into office equipment and general industrial markets offset by weakness in gaming console devices, LCD TV’s, and in the Japanese market in general.


Operational Highlights

Rogers’ balance sheet ended the second quarter of 2011 with cash and short term investments of $75.4 million and auction rate securities of $33.6 million at par value. Capital expenditures were approximately $3.9 million for the second quarter 2011 and are expected to total approximately $35 million for the year. This is an increase from the $25 million estimate reported last quarter as additional capital now is required to address the recent confirmations of accelerated demand for Printed Circuit Material products in the wired and wireless infrastructure markets, as well as the demand for certain products in the Company’s other businesses.

As previously announced on July 13, 2011, the Company amended its credit agreements to increase its total borrowing capacity from $165 million to $265 million through the addition of a $100 million term loan. When the amendment was finalized it also increased the Company’s available borrowing capacity from $30 million to $130 million, providing greater flexibility to fund any future strategic endeavors the Company may undertake. This amended credit facility now matures on July 13, 2016 instead of November 23, 2014. During the quarter, the Company paid $10 million on its existing long term debt and ended the quarter with an outstanding balance of $135 million.

In the second quarter, the Company reported a gross margin of 33.5%, which was in line with expectations and an improvement sequentially from the first quarter of 2011.

The Company’s second quarter effective tax rate was 22%. The Company believes its annual effective tax rate will be approximately 24% for 2011.

Robert D. Wachob, Rogers’ President and CEO commented; “Record sales and earnings, which exceeded our guidance, were just two of our many accomplishments in the second quarter of 2011. Additionally, the Curamik acquisition continues to exceed our expectations and our new Printed Circuit Materials facility in Suzhou, China began small scale production in June. During June we also announced that we had entered into an agreement with Himag Solutions Ltd., a private UK based advanced planar transformer technology company that provides custom planar magnetic products. This arrangement increases our opportunity in Clean Technology as both hybrid and pure electric vehicles could utilize these types of transformers for applications in both the vehicle as well as the fast charging station. Additionally, we are negotiating two long-term contracts with major base station suppliers for supply of our printed circuit materials, which could potentially result in significant sales increases. To address this expected increase we are planning to again add capacity for these products. Lastly, within the growth of the internet megatrend area, our Theta high speed digital laminate material was released ahead of plan to the design groups of a major enterprise router, server, and switch manufacturer. All of these positive events signal that our markets are continuing to expand and therefore, my current expectation for the third quarter of 2011 is for sales of between $144-$149 million, with earnings of $0.75-$0.81 per diluted share.”


About Rogers Corporation

Rogers Corporation (NYSE:ROG) is a global technology leader in specialty materials and components that enable high performance and reliability of consumer electronics, power electronics, mass transit, clean technology, and telecommunications infrastructure. With more than 179 years of materials science and process engineering knowledge, Rogers provides product designers with solutions to their most demanding challenges. Rogers’ products include advanced circuit materials for wireless infrastructure, power amplifiers, radar systems, high speed digital; power electronics for high-voltage rail traction, hybrid electric vehicles, wind and solar power conversion; and high performance foams for sealing and energy management in smartphones, aircraft and rail interiors, automobiles and apparel; and other advanced materials for diverse markets including defense and consumer products. Headquartered in Connecticut (USA), Rogers operates manufacturing facilities in the United States, Belgium, China, Germany, and South Korea, with joint ventures and sales offices worldwide. For more information, visit www.rogerscorp.com.

Safe Harbor Statement

Statements in this news release, including but not limited to projections of financial results and planned operational enhancements 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 uncertainties and risks. These uncertainties and risks include, but are not limited to, changing business, economic, and political conditions both in the United States and in other countries, market demand and pricing, the possibility that anticipated benefits of acquisitions may not materialize as expected, competitive and cost factors, unanticipated delays or problems in completing our planned operational enhancements to various facilities, rapid technological change, new product introductions, legal proceedings, and the like. Forward looking statements in this press release should be evaluated together with these as well as the other uncertainties and risks that affect Rogers Corporation’s business, particularly those discussed in its most recent 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 August 1, 2011 and Rogers undertakes no duty to update this information unless required by law.

Additional Information and August 2, 2011 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.rogerscorp.com

A conference call to discuss second quarter results will be held on Tuesday, August 2, 2011 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 and Principal Accounting Officer
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: 1-855-859-2056 in the United States and 1-404-537-3406 internationally through 11:59PM (Eastern Time), Tuesday, August 9, 2011. The passcode for the audio replay is 85561828.

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.


Condensed Consolidated Statements of Income (Unaudited)

  Three Months Ended   Six Months Ended
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) June 30,   June 30, June 30,   June 30,
    2011   2010   2011   2010
Net sales $ 143,685 $ 96,608 $ 279,744 $ 180,545
Cost of sales   95,495       59,273       189,442       112,951  
Gross margin 48,190 37,335 90,302 67,594
 
Selling and administrative expenses 26,837 23,709 51,336 44,683
Research and development expenses   6,175       5,879       12,196       9,422  
Operating income 15,178 7,747 26,770 13,489
 
Equity income in unconsolidated joint ventures 1,323 1,757 2,751 3,975
Other income, net 280 1,055 1,629 1,864
Net realized gain (loss) 29 (120 ) 32 (172 )
Interest income (expense), net   (1,265 )     (3 )     (2,843 )     103  
Income before income taxes 15,545 10,436 28,339 19,259
 
Income tax expense   3,417       2,123       6,776       4,092  
Net income $ 12,128     $ 8,313     $ 21,563     $ 15,167  
             
Net income per share:
Basic $ 0.76 $ 0.53 $ 1.35 $ 0.96
Diluted $ 0.73 $ 0.52 $ 1.30 $ 0.95
 
Shares used in computing:
Basic 15,944,483 15,785,656 15,918,979 15,777,176
Diluted 16,678,377 15,985,195 16,603,543 15,940,857

Condensed Consolidated Statements of Financial Position (Unaudited)

(IN THOUSANDS)   June 30, 2011   December 31, 2010
Assets    
Current assets:
Cash and cash equivalents $ 71,647 $ 80,135
Short term investments 3,704 186
Accounts receivable, net 89,242 61,995
Accounts receivable from joint ventures 2,254 1,338
Accounts receivable, other 3,159 3,773
Taxes receivable 247 1,706
Inventories 71,517 47,574
Prepaid income taxes 3,580 1,938
Deferred income taxes 1,485 1,492
Asbestos-related insurance receivables 8,563 8,563
Assets held for sale 2,548 5,841
Other current assets   10,158     7,042
Total current assets 268,104 221,583
 
Property, plant and equipment, net 155,080 120,087
Investments in unconsolidated joint ventures 25,664 25,452
Deferred income taxes 15,168 17,120
Goodwill and other intangibles 185,068 35,984
Asbestos-related insurance receivables 20,733 20,733
Long term marketable securities 26,773 33,592
Investments, other 5,000 5,000
Other long term assets   7,905     5,323
Total assets $ 709,495   $ 484,874
 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable $ 22,423 $ 16,296
Accrued employee benefits and compensation 26,009 26,692
Accrued income taxes payable 4,371 1,528
Current portion of lease obligation 1,786 -
Asbestos related liabilities 8,563 8,563
Other current liabilities   13,625     12,362
Total current liabilities 76,777 65,441
 
Long term debt 135,000 -
Long term lease obligation 9,046 -
Pension liability 31,980 31,980
Retiree health care and life insurance benefits 8,144 8,144
Asbestos related liabilities 21,159 21,159
Non-current income tax 18,610 15,339
Deferred income taxes 24,857 8,745
Other long term liabilities 597 3,534
Shareholders’ equity   383,325     330,532
Total liabilities and shareholders’ equity $ 709,495   $ 484,874

CONTACT:
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@rogerscorp.com