EX-99.1 2 a5207298-ex991.txt EXHIBIT 99.1 EXHIBIT 99.1 Rogers Corporation Releases Final Second Quarter Results ROGERS, Conn.--(BUSINESS WIRE)--Aug. 9, 2006--Rogers Corporation (NYSE:ROG) announced today that final GAAP earnings for the second quarter of 2006 were $0.23 per diluted share, which includes a non-cash impairment charge of $11.3 million, or $0.52 per diluted share. As previously announced on July 27, 2006, excluding the impairment charge, non-GAAP earnings per share for the quarter were a record $0.75 per diluted share. This compares to non-GAAP earnings of $0.27 per diluted share in the second quarter of 2005. Second 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 on June 29, 2006, the future outlook of the Company's polyolefin foams and polyester-based laminates operating units, within the Other Polymer Products reporting segment, changed from previous expectations. This reportable segment, which also includes other operating units, represented 12% of the Company's sales in the second quarter of 2006. The Company has now completed an impairment analysis with the assistance of an independent third-party appraisal firm. The two operating units had assets including long-lived tangible and intangible assets with a book value of approximately $16 million. The entire non-cash impairment charge represents a reduction in goodwill of the two operating units. This impairment is the result of reduced future business prospects and does not involve any facility closures. Robert D. Wachob, Rogers' President and CEO, commented, "The impairment charge described above was entirely goodwill and affected no tangible assets. Although we now have lower long-term expectations for these parts of our Other Polymer Products reporting segment, we are committed to revamping and restructuring this segment. Overall, this year sales-to-date have been driven by our success in several markets, most notably portable communications. We expect the strength in our market segments to continue in the third and fourth quarters, resulting in a record year for sales and profits. Our third quarter guidance, stated in our July 27, 2006 release, is for sales of $105 to $109 million and earnings in the range of $0.73 to $0.77 per diluted share." Rogers Corporation, headquartered in Rogers, CT, U.S.A., develops and manufactures high-performance specialty material 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 August 9, 2006, and Rogers undertakes no duty to update this information unless required by law. (Financial Statements Follow) Consolidated Statements of Income Three Months Ended Six Months Ended (IN THOUSANDS, EXCEPT PER July 2, July 3, July 2, July 3, SHARE AMOUNTS) 2006 2005 2006 2005 ---------------------------------------------------------------------- Net Sales $104,781 $ 84,633 $207,913 $172,736 Costs and Expenses: Cost of Sales (1) 70,784 60,256 137,629 124,955 Selling and Administrative (2) 14,244 15,122 31,629 29,524 Research and Development 6,009 5,177 11,970 10,236 Impairment Charges (3) 11,272 20,030 11,272 20,030 ---------------------------------------- Total Costs and Expenses (4) 102,309 100,585 192,500 184,745 ---------------------------------------- Operating Income (Loss) 2,472 (15,952) 15,413 (12,009) Other Income (Loss) less Other Charges 2,578 (321) 5,451 2,252 Interest Income (Expense), Net 629 134 979 362 ---------------------------------------- Income (Loss) Before Taxes 5,679 (16,139) 21,843 (9,395) Income Taxes (Benefit) 1,682 (7,326) 5,238 (5,707) ---------------------------------------- Net Income (Loss) $ 3,997 $ (8,813) $ 16,605 $ (3,688) ---------------------------------------- Net Income (Loss) Per Share: Basic $ 0.24 $ (0.54) $ 1.00 $ (0.23) Diluted $ 0.23 $ (0.54) $ 0.97 $ (0.23) Shares Used in Computing: Basic 16,773 16,271 16,630 16,338 Diluted 17,224 16,271 17,094 16,338 (1) Second quarter 2005 includes $1.2 million write down of inventory associated with the polyolefin foam operation (2) Second quarter 2005 includes $0.5 million of receivable write offs associated with the polyolefin foam operation (3) Second quarter 2006 includes an $11.3 million charge related to the impairment of goodwill for the polyolefin foams and the polyester based laminate materials operating units. Second quarter 2005 includes a $19.8 million charge related to the impairment of long-lived assets associated with the polyolefin foams operation. (4) Including Depreciation and Amortization of: 2006 - $4.0 million and $9.4 million; 2005 - $5.2 million and $10.5 million Consolidated Balance Sheets (IN THOUSANDS) July 2, January 1, 2006 2006 ---------------------------------------------------------------------- Assets Current Assets: Cash and Cash Equivalents $ 79,130 $ 46,401 Accounts Receivable, Net 76,541 62,850 Accounts Receivable - Joint Ventures 4,357 5,570 Note Receivable 2,100 2,100 Inventories 54,769 43,502 Deferred Income Taxes 11,356 10,823 Asbestos-Related Insurance Receivables 7,023 7,023 Other Assets 4,542 2,761 ----------------------- Total Current Assets 239,818 181,030 ----------------------- Notes Receivable 2,100 2,100 Property, Plant and Equipment, Net 132,786 131,616 Investments in Unconsolidated Joint Ventures 23,764 20,260 Pension Asset 6,667 6,667 Goodwill 10,656 21,928 Other Intangible Assets 588 764 Asbestos-Related Insurance Receivables 30,581 30,581 Other Assets 4,547 5,654 ----------------------- Total Assets $ 451,507 $ 400,600 ----------------------- Liabilities and Shareholders' Equity Current Liabilities: Accounts Payable $ 19,674 $ 18,992 Accrued Employee Benefits and Compensation 25,972 13,916 Accrued Income Taxes Payable 5,956 7,209 Asbestos-Related Liabilities 7,023 7,023 Other Liabilities 11,131 10,226 ----------------------- Total Current Liabilities 69,756 57,366 ----------------------- Deferred Income Taxes 4,498 6,359 Pension Liability 15,370 16,973 Retiree Health Care and Life Insurance Benefits 7,048 7,048 Asbestos-Related Liabilities 30,867 30,867 Other Liabilities 949 1,737 Shareholders' Equity 323,019 280,250 ----------------------- Total Liabilities and Shareholders' Equity $ 451,507 $ 400,600 ----------------------- Reconciliation of Second Quarter 2006 Non-GAAP Earnings per Diluted Share ---------------------------------------------------------------------- GAAP Income per Diluted Share $ 0.23 Less: Non-cash Impairment Charge per Diluted Share 0.52 ---------------------------------------------------------------------- Non-GAAP Earnings per Diluted Share $ 0.75 Reconciliation of Second Quarter 2005 Non-GAAP Earnings (Loss) per Diluted Share ---------------------------------------------------------------------- GAAP Loss per Diluted Share $(0.54) Less: Non-cash Impairment Charge per Diluted Share 0.81 ---------------------------------------------------------------------- Non-GAAP Earnings per Diluted Share $ 0.27 Rogers believes that diluted earnings per share, excluding the effect of any asset impairment or unusual event, is a measure that should be presented in addition to income determined in accordance with generally accepted accounting principles (GAAP) and is useful to investors. The following matters should be considered when evaluating these non-GAAP financial measures: -- Rogers reviews the operating results of its businesses excluding the impact of any asset impairment because it provides an additional basis of comparison. The Company believes that these events are unusual in nature, and would not necessarily be indicative of ongoing operating results. As a result, management believes that excluding such charges is useful in comparing past, current and future periods. -- Asset impairments principally represent adjustments to the carrying value of certain assets and do not typically require a cash payment. -- While asset impairments are typically material, they are generally considered to be outside the normal operations of a business. -- Corporate management is responsible for the initial and ongoing investments and for making decisions about asset impairment and related charges on those investments. CONTACT: Financial News Contact: Dennis M. Loughran, 860-779-5508 Vice President Finance and Chief Financial Officer FAX: 860-779-4714 or Editorial Contact: Edward J. Joyce, 860-779-5705 Manager of Investor and Public Relations 860-779-5509 edward.joyce@rogerscorporation.com http://www.rogerscorporation.com