EX-99.1 2 a4685423ex991.txt NEWS RELEASE Exhibit 99.1 Rogers Corporation Reports Record Second Quarter Sales and Earnings ``Sales increased 90%, Earnings up over 100%'' ROGERS, Conn.--(BUSINESS WIRE)--July 21, 2004--Rogers Corporation (NYSE:ROG) announced today that diluted earnings per share for the second quarter of 2004 were $0.68, up 113% compared to the $0.32 earned in the second quarter of 2003. Net income increased to $11.8 million, more than double last year's second quarter earnings of $5.2 million. As a percent of sales, net income was 12.6% this quarter, up from 10.6% last year. Net sales in the second quarter were $93.3 million, up 90% compared to the $49.2 million sold in the second quarter of 2003. The Durel acquisition which occurred in the fourth quarter of 2003, added $11.9 million to revenues this quarter. Continuing the trend of the first quarter, all three of Rogers' business segments experienced double-digit sales growth this quarter as compared to the second quarter of 2003. Sales of Printed Circuit Materials for the quarter again set a new all-time sales record totaling $47.4 million, up 115% over the second quarter of 2003. Flexible circuit material sales continue to be driven by the demand for high quality interconnects used increasingly in complex end-user products, such as high-end cell telephones. Additionally flexible circuit material sales improved as a result of greater availability of polyimide film late in the quarter, and supplemental capacity provided by toll manufacturing at the Company's Taiwan joint venture. 3G cellular infrastructure and satellite television were again the source of increased sales of high frequency circuit materials, which also grew significantly over last year's second quarter. High Performance Foams revenues were $21.9 million for the quarter, up 28% from the second quarter of last year. PORON(R) urethane foam product sales remained strong in the quarter, and were up significantly over last year's second quarter. This period also marked an all-time quarterly sales record for BISCO(R) silicone foam products, with industrial, transportation and computing applications all contributing to higher sales. Polyolefin foam revenues remained relatively flat as the Company concentrates on completing the transition to the new facility in Carol Stream, Illinois. Sales of Polymer Materials and Components totaled $24.0 million for the quarter. This quarter's revenue includes sales of Durel, formerly a 50-50 joint venture with 3M. Within this business segment, both elastomer components and busbars achieved double-digit year-over-year increases. Durel sales experienced a 15% year-over-year decline due to an anticipated trend away from monochrome cell phone displays. The Company expects a continued decline for Durel in the third quarter with improved sales in the fourth quarter driven by the ramp up of new flexible keypad lamp programs. The move of the elastomer components business to China is progressing as planned and should be completed by year-end. Rogers' three 50% owned joint ventures had total sales this quarter of $18.3 million compared to $13.0 million in the second quarter of 2003. Revenues of Rogers Inoac Corporation (RIC) grew more than 42%, while Rogers Chang Chun Technologies (RCCT), utilizing a greater supply of polyimide film, had sales increase over seven times that of last year's second quarter. Polyimide Laminate Systems (PLS), the Company's third joint venture, experienced a 40% sales decline over last year's second quarter, as the hard disk drive industry underwent significant inventory corrections. Gross margin for the quarter was 33.9%, up from 30% in last year's second quarter. The Company continues to see operational improvements as the result of implementing Six Sigma projects and improved capacity utilization. Margins continue to be negatively impacted by the polyolefin foam business transition to Illinois and the elastomer components products move to China. Rogers' effective tax rate remained at 25% this quarter. Cash and short-term investments ended the second quarter at $33.7 million and the Company remains debt free. Capital expenditures were $6.9 million for the quarter and $13.5 million year-to-date. Robert D. Wachob, President and CEO, commented, "We are pleased with the sustained year-over-year growth in our strategic businesses this quarter. Our top end markets, namely 3G cellular infrastructure, satellite television, and handsets, all remain healthy and we are experiencing increased market penetration. Our performance in the third quarter will be impacted by end of life programs for Durel, a traditional soft third quarter in high performance foams, the normal summer slowdown in Europe, the continuation of most of the business transition expenses, and the cresting of consulting and audit expenses directly related to compliance with the Sarbanes-Oxley Act. On the positive side, we have an increased polyimide film supply, a seasonal pick up in satellite television demand, steady 3G-infrastructure usage, and pre-production sales of flexible electroluminescent lamps into three new keypad handset applications. All of these factors lead us to project third quarter sales of $87 to $95 million, with earnings per diluted share of $0.59 to $0.67, which both represent 61% increases over last year, at the midpoints." Safe Harbor Statement Statements in this news release that are not strictly historical may be deemed to be "forward-looking" statements which should be considered as 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 2003 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. Additional Information and July 22nd Conference Call For more information, please contact the Company directly, visit Rogers' web site on the Internet, or send a message by email. Website Address: http://www.rogerscorporation.com Financial News Contact: James M. Rutledge, Vice President Finance and Chief Financial Officer, Phone: 860-774-9605, FAX: 860-779-5585 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 second quarter results will be held on Thursday, July 22nd at 9:00AM (Eastern Time). Rogers participants in the conference call will be: Robert D. Wachob, President and CEO James M. Rutledge, Vice President Finance and CFO Robert M. Soffer, Vice President and Secretary Paul B. Middleton, Corporate Controller 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 and 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, Thursday July 29th. The pass code for the audio replay is 8512903. 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 Three Months Ended Six Months Ended (IN THOUSANDS, EXCEPT PER July 4, June 29, July 4, June 29, SHARE AMOUNTS) 2004 2003 2004 2003 ---------------------------- --------- -------- --------- --------- Net Sales $93,323 $49,159 $190,993 $101,037 Costs and Expenses: Cost of Sales 61,657 34,433 125,941 69,823 Selling and Administrative 13,402 9,115 28,896 18,816 Research and Development 4,926 2,810 9,569 5,648 --------- -------- --------- --------- Total Costs and Expenses(1) 79,985 46,358 164,406 94,287 --------- -------- --------- --------- Operating Income 13,338 2,801 26,587 6,750 Other Income less Other Charges 2,375 4,092 5,356 7,720 Interest Income/(Expense), Net 22 56 100 131 --------- -------- --------- --------- Income Before Taxes 15,735 6,949 32,043 14,601 Income Taxes 3,934 1,737 8,010 3,650 --------- -------- --------- --------- Net Income $11,801 $5,212 $24,033 $10,951 --------- -------- --------- --------- Net Income Per Share: Basic $0.72 $0.33 $1.48 $0.70 Diluted $0.68 $0.32 $1.40 $0.68 Shares Used in Computing: Basic 16,390 15,742 16,283 15,647 Diluted 17,247 16,305 17,110 16,162 (1) Including Depreciation and Amortization of: 2004 - $4,215 & $9,004; 2003 - $3,635 & $7,027 Consolidated Balance Sheets July 4, Dec 28, (IN THOUSANDS) 2004 2003 --------------------------------------------- ------------- --------- Assets Current Assets: Cash and Cash Equivalents $25,730 $31,476 Short-term Investments 8,000 3,005 Accounts Receivable, Net 60,403 52,981 Accounts Receivable - Joint Ventures 3,312 3,178 Note Receivable, Current 2,100 2,100 Inventories 36,971 27,501 Other Current Assets 6,498 6,856 ------------- --------- Total Current Assets 143,014 127,097 ------------- --------- Notes Receivable, Long-term 6,300 7,800 Property, Plant and Equipment, Net 135,297 131,157 Investment in Unconsolidated Joint Ventures 15,812 10,741 Pension Asset 6,886 6,886 Goodwill and Other Intangible Assets, Net 28,673 25,121 Other Assets 5,874 5,638 ------------- --------- Total Assets $341,856 $314,440 ------------- --------- Liabilities and Shareholders' Equity Current Liabilities: Accounts Payable $19,134 $20,442 Accrued Employee Benefits and Compensation 14,254 13,359 Other Current Liabilities 16,516 16,222 ------------- --------- Total Current Liabilities 49,904 50,023 ------------- --------- Noncurrent Deferred Income Taxes 10,593 14,058 Noncurrent Pension Liability 14,522 14,909 Noncurrent Retiree Health Care & Life Insurance Benefits 6,198 6,198 Other Long-term Liabilities 2,383 2,383 Shareholders' Equity 258,256 226,869 ------------- --------- Total Liabilities and Shareholders' Equity $341,856 $314,440 ------------- --------- These statements are subject to year-end audit. CONTACT: Rogers Corporation Financial News Contact: James M. Rutledge, 860-774-9605 or Editorial Contact: Edward J. Joyce, 860-779-5705 edward.joyce@rogerscorporation.com www.rogerscorporation.com