Safe Harbor Statement
This release contains forward-looking statements, which concern our plans, objectives, outlook, goals, strategies, future events, future net sales or performance, capital expenditures, future restructuring, plans or intentions relating to expansions, business trends and other information that is not historical information. All forward-looking statements are based upon information available to us on the date of this release and are subject to risks, uncertainties and other factors, many of which are outside of our control, which could cause actual results to differ materially from the results discussed in the forward-looking statements. Risks and uncertainties that could cause such results to differ include: failure to capitalize on, volatility within, or other adverse changes with respect to the Company's growth drivers, including advanced mobility and advanced connectivity, such as delays in adoption or implementation of new technologies; uncertain business, economic and political conditions in the United States and abroad, particularly in China, South Korea, Germany, Hungary and Belgium, where we maintain significant manufacturing, sales or administrative operations; the ongoing trade policy dispute between the United States and China, as well as adverse changes in trade policy, tariff regulation or other trade restrictions, including trade restrictions on Huawei Technologies Co., Ltd.; fluctuations in foreign currency exchange rates; the results of our research and development efforts; adverse competitive developments, including the extent to which our products are incorporated into end-user products and systems and the extent to which those products and systems achieve commercial success; business development transactions and related integration considerations, including failure to realize, or delays in the realization of anticipated benefits of such transactions; the outcome of ongoing and future litigation, including our asbestos-related product liability litigation; inability to obtain raw materials, including commodities, from single or limited source suppliers in a timely and cost effective manner; uncertainties with regard to the timing, expense and cash outlays associated with the termination and settlement of the Rogers Corporation Defined Benefit Pension Plan; and changes in laws and regulations applicable to our business. For additional information about the risks, uncertainties and other factors that may affect our business, please see our most recent annual report on Form 10-K and any subsequent reports filed with the Securities and Exchange Commission, including quarterly reports on Form 10-Q. Rogers Corporation assumes no responsibility to update any forward-looking statements contained herein except as required by law.
Conference call and additional information
A conference call to discuss the 2019 second quarter results will take place today, Wednesday July 31, 2019 at 5pm ET.
A live webcast and slide presentation will be available under the investors section of www.rogerscorp.com/ir.
To participate, please dial:
1-800-574-8929 |
Toll-free in the United States |
1-973-935-8524 |
Internationally |
There is no passcode for the live teleconference. |
|
If you are unable to attend, a conference call playback will be available from July 31, 2019 at approximately 8 pm ET through August 14, 2019 at 11:59 pm ET, by dialing 1-855-859-2056 from the United States, and 1-404-537-3406 from outside of the US, each with passcode 6238188.
Additionally, the archived webcast will be available on the Rogers website at approximately 8 pm ET August 1, 2019.
Additional information
Please contact the Company directly via email or visit the Rogers website.
Website address: http://www.rogerscorp.com
(Financial statements follow)
Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
(DOLLARS AND SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) |
June 30, 2019 |
June 30, 2018 |
June 30, 2019 |
June 30, 2018 |
||||||||||||
Net sales |
$ |
242,852 |
|
|
$ |
214,675 |
|
|
$ |
482,650 |
|
|
$ |
429,286 |
|
|
Cost of sales |
|
157,024 |
|
|
|
138,003 |
|
|
|
311,428 |
|
|
|
276,007 |
|
|
Gross margin |
|
85,828 |
|
|
|
76,672 |
|
|
|
171,222 |
|
|
|
153,279 |
|
|
| Selling, general and administrative expenses |
|
43,649 |
|
|
|
42,540 |
|
|
|
86,901 |
|
|
|
83,137 |
|
|
| Research and development expenses |
|
7,843 |
|
|
|
8,750 |
|
|
|
15,452 |
|
|
|
16,884 |
|
|
| Restructuring and impairment charges |
|
1,083 |
|
|
|
541 |
|
|
|
1,905 |
|
|
|
963 |
|
|
| Other operating (income) expense, net |
|
40 |
|
|
|
(383 |
) |
|
|
951 |
|
|
|
(3,974 |
) |
|
| Operating income |
|
33,213 |
|
|
|
25,224 |
|
|
|
66,013 |
|
|
|
56,269 |
|
|
| Equity income in unconsolidated joint ventures |
|
1,742 |
|
|
|
1,804 |
|
|
|
2,579 |
|
|
|
2,811 |
|
|
| Other income (expense), net |
|
(1,401 |
) |
|
|
(34 |
) |
|
|
3 |
|
|
|
32 |
|
|
| Interest expense, net |
|
(2,038 |
) |
|
|
(1,292 |
) |
|
|
(3,976 |
) |
|
|
(2,503 |
) |
|
| Income before income tax expense |
|
31,516 |
|
|
|
25,702 |
|
|
|
64,619 |
|
|
|
56,609 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| Income tax expense |
|
7,223 |
|
|
|
8,373 |
|
|
|
11,927 |
|
|
|
13,144 |
|
|
| Net income |
$ |
24,293 |
|
|
$ |
17,329 |
|
|
$ |
52,692 |
|
|
$ |
43,465 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| Basic earnings per share |
$ |
1.31 |
|
|
$ |
0.94 |
|
|
$ |
2.84 |
|
|
$ |
2.37 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted earnings per share |
$ |
1.30 |
|
|
$ |
0.93 |
|
|
$ |
2.82 |
|
|
$ |
2.33 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| Shares used in computing: |
|
|
|
|
|
|
|
|||||||||
| Basic earnings per share |
|
18,568 |
|
|
|
18,389 |
|
|
|
18,562 |
|
|
|
18,338 |
|
|
| Diluted earnings per share |
|
18,730 |
|
|
|
18,660 |
|
|
|
18,711 |
|
|
|
18,635 |
|
|
| Condensed Consolidated Statements of Financial Position (Unaudited) |
||||||||
| (IN THOUSANDS) |
June 30, 2019 |
|
December 31, 2018 |
|||||
| Assets |
|
|
|
|||||
| Current assets |
|
|
|
|||||
| Cash and cash equivalents |
$ |
173,068 |
|
|
$ |
167,738 |
|
|
| Accounts receivable, less allowance for doubtful accounts of $1,215 and $1,354 |
156,924 |
|
|
144,623 |
|
|||
| Contract assets |
25,573 |
|
|
22,728 |
|
|||
| Inventories |
135,067 |
|
|
132,637 |
|
|||
| Prepaid income taxes |
4,275 |
|
|
3,093 |
|
|||
| Asbestos-related insurance receivables, current portion |
4,138 |
|
|
4,138 |
|
|||
| Other current assets |
10,814 |
|
|
10,829 |
|
|||
| Total current assets |
509,859 |
|
|
485,786 |
|
|||
| Property, plant and equipment, net of accumulated depreciation of $331,553 and $317,414 |
248,309 |
|
|
242,759 |
|
|||
| Investments in unconsolidated joint ventures |
17,534 |
|
|
18,667 |
|
|||
| Deferred income taxes |
11,080 |
|
|
8,236 |
|
|||
| Goodwill |
263,804 |
|
|
264,885 |
|
|||
| Other intangible assets, net of amortization |
167,985 |
|
|
177,008 |
|
|||
| Pension assets |
19,918 |
|
|
19,273 |
|
|||
| Asbestos-related insurance receivables, non-current portion |
60,247 |
|
|
59,685 |
|
|||
| Other long-term assets |
8,617 |
|
|
3,045 |
|
|||
| Total assets |
$ |
1,307,353 |
|
|
$ |
1,279,344 |
|
|
| Liabilities and Shareholders’ Equity |
|
|
|
|||||
| Current liabilities |
|
|
|
|||||
| Accounts payable |
$ |
42,214 |
|
|
$ |
40,321 |
|
|
| Accrued employee benefits and compensation |
31,798 |
|
|
30,491 |
|
|||
| Accrued income taxes payable |
9,048 |
|
|
7,032 |
|
|||
| Asbestos-related liabilities, current portion |
5,547 |
|
|
5,547 |
|
|||
| Other accrued liabilities |
24,085 |
|
|
23,789 |
|
|||
| Total current liabilities |
112,692 |
|
|
107,180 |
|
|||
| Borrowings under revolving credit facility |
195,482 |
|
|
228,482 |
|
|||
| Pension and other postretirement benefits liabilities |
1,739 |
|
|
1,739 |
|
|||
| Asbestos-related liabilities, non-current portion |
65,226 |
|
|
64,799 |
|
|||
| Non-current income tax |
8,554 |
|
|
8,418 |
|
|||
| Deferred income taxes |
10,768 |
|
|
10,806 |
|
|||
| Other long-term liabilities |
15,378 |
|
|
9,596 |
|
|||
| Shareholders’ equity |
|
|
|
|||||
| Capital stock - $1 par value; 50,000 authorized shares; 18,559 and 18,395 shares issued and outstanding |
18,559 |
|
|
18,395 |
|
|||
| Additional paid-in capital |
131,836 |
|
|
132,360 |
|
|||
| Retained earnings |
829,075 |
|
|
776,403 |
|
|||
| Accumulated other comprehensive loss |
(81,956 |
) |
|
(78,834 |
) |
|||
| Total shareholders' equity |
897,514 |
|
|
848,324 |
|
|||
| Total liabilities and shareholders' equity |
$ |
1,307,353 |
|
|
$ |
1,279,344 |
|
|
Reconciliation of non-GAAP financial measures to the comparable GAAP measures
