checkAd

Rogers Corporation Reports Second Quarter 2021 Results

Nachrichtenquelle: Business Wire (engl.)
29.07.2021, 22:09  |  111   |   |   

Rogers Corporation (NYSE:ROG) today announced financial results for the second quarter of 2021.

“Rogers achieved continued sales improvement in the second quarter driven by growth in EV/HEV, clean energy and other strategic markets,” stated Bruce D. Hoechner, Rogers' President and CEO. “Global supply chain challenges impacted our second quarter results more than anticipated and margins and earnings were below our prior guidance expectations. We are addressing these recent challenges as we continue to navigate this dynamic environment. We are executing on our market strategy and the outlook for Advanced Mobility remains robust, led by the accelerating transition to electric and hybrid electric vehicles. We continue to significantly increase our investments in new capacity and capabilities to capitalize on the growth opportunities across our market portfolio.”

Financial Overview

 

GAAP Results

Q2 2021

 

Q1 2021

 

Q2 2020

Net Sales ($M)

$234.9

 

$229.3

 

$191.2

Gross Margin

38.2%

 

39.0%

 

36.6%

Operating Margin

15.2%

 

16.2%

 

11.0%

Net Income ($M)

$28.7

 

$31.2

 

$14.5

Diluted Earnings Per Share

$1.52

 

$1.66

 

$0.78

 

Non-GAAP Results1

Q2 2021

 

Q1 2021

 

Q2 2020

Adjusted Operating Margin

17.4%

 

19.0%

 

15.4%

Adjusted Net Income ($M)

$32.5

 

$36.0

 

$21.1

Adjusted Earnings Per Diluted Share

$1.72

 

$1.92

 

$1.13

Adjusted EBITDA ($M)

$55.8

 

$59.8

 

$42.5

Adjusted EBITDA Margin

23.8%

 

26.1%

 

22.2%

Free Cash Flow ($M)

$11.9

 

$32.9

 

$39.3

 

Net Sales by Operating Segment (dollars in millions)

Q2 2021

 

Q1 2021

 

Q2 2020

Advanced Electronics Solutions (AES)2

$140.4

 

$131.9

 

$116.2

Elastomeric Material Solutions (EMS)

$89.3

 

$91.8

 

$71.6

Other

$5.1

 

$5.5

 

$3.4

 

1 - A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below

2 - The AES business segment was formed in the first quarter of 2021 through the combination of the Advanced Connectivity Solutions (ACS) and Power Electronics Solutions (PES) businesses. Prior period consolidated financial statements have been reclassified to conform to the current year presentation.

Q2 2021 Summary of Results

Net sales of $234.9 million increased 2.5% versus the prior quarter from higher sales in the AES business unit. AES net sales increased primarily due to strong demand for EV/HEV applications and higher clean energy, defense and wireless infrastructure market sales, partially offset by a decline in sales for ADAS applications. Demand remained strong in the EMS business, but net sales decreased compared to the prior quarter primarily due to lower production levels from supply constraints and the previously announced disruption to the Company's manufacturing facility in South Korea. The lower production levels contributed to the decline in portable electronics market sales, and tempered growth in industrial market sales. EV/HEV sales declined slightly, compared to strong first quarter sales. Currency exchange rates unfavorably impacted total company net sales in the second quarter of 2021 by $0.8 million compared to prior quarter net sales.

Gross margin was 38.2%, compared to 39.0% in the prior quarter. The decrease in gross margin was primarily due to the impact of supply constraints, raw material price increases and unfavorable product mix, partially offset by higher volumes.

Selling, general and administrative (SG&A) expenses increased by $2.5 million from the prior quarter to $45.0 million. The increase in SG&A expense was due to higher performance based compensation costs and reinvestment initiatives.

GAAP operating margin of 15.2% decreased by 100 basis points from the prior quarter primarily due to lower gross margin and higher SG&A expenses, partially offset by lower restructuring charges. Adjusted operating margin of 17.4% decreased by 160 basis points versus the prior quarter.

GAAP earnings per diluted share were $1.52, compared to earnings per diluted share of $1.66 in the previous quarter. The decrease in GAAP earnings primarily resulted from lower operating income and other income, partially offset by lower tax expense. On an adjusted basis, earnings were $1.72 per diluted share compared to adjusted earnings of $1.92 per diluted share in the prior quarter.

Ending cash and cash equivalents were $203.9 million, an increase of $4.8 million versus the prior quarter. The Company generated free cash flow of approximately $11.9 million in the second quarter of 2021. Net cash provided by operating activities of $29.7 million was offset by $4.0 million of principal payments made on the remaining outstanding borrowings under the Company’s revolving credit facility and capital expenditures of $17.8 million.

Financial Outlook

 

Q3 2021

Net Sales ($M)

$235 to $245

Gross Margin

38.5% to 39.5%

Earnings Per Share

$1.50 to $1.65

Adjusted Earnings Per Share1

$1.70 to $1.85

 

 

2021

Effective Tax Rate

24% - 25%

Capital Expenditures ($M)

$70 to $80

 

 

1 - A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below

About Rogers Corporation
Rogers Corporation (NYSE:ROG) is a global leader in engineered materials to power, protect and connect our world. Rogers delivers innovative solutions to help our customers solve their toughest material challenges. Rogers’ advanced electronic and elastomeric materials are used in applications for EV/HEV, automotive safety and radar systems, mobile devices, renewable energy, wireless infrastructure, energy-efficient motor drives, industrial equipment and more. Headquartered in Chandler, Arizona, Rogers operates manufacturing facilities in the United States, Asia and Europe, with sales offices worldwide.

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 those indicated by the forward-looking statements. Risks and uncertainties that could cause such results to differ include: the duration and impacts of the novel coronavirus global pandemic and efforts to contain its transmission and distribute vaccines, including the effect of these factors on our business, suppliers, customers, end users and economic conditions generally; 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 (U.S.) and abroad, particularly in China, South Korea, Germany, Hungary and Belgium, where we maintain significant manufacturing, sales or administrative operations; the trade policy dynamics between the U.S. and China reflected in trade agreement negotiations and the imposition of tariffs and other trade restrictions, including trade restrictions on Huawei Technologies Co., Ltd. (Huawei); fluctuations in foreign currency exchange rates; our ability to develop innovative products and the extent to which our products are incorporated into end-user products and systems and the extent to which end-user products and systems incorporating our products achieve commercial success; the ability and willingness of our sole or limited source suppliers to deliver certain key raw materials, including commodities, to us in a timely and cost-effective manner; intense global competition affecting both our existing products and products currently under development; business interruptions due to catastrophes or other similar events, such as natural disasters, war, terrorism or public health crises; failure to realize, or delays in the realization of anticipated benefits of acquisitions and divestitures due to, among other things, the existence of unknown liabilities or difficulty integrating acquired businesses; our ability to attract and retain management and skilled technical personnel; our ability to protect our proprietary technology from infringement by third parties and/or allegations that our technology infringes third party rights; changes in effective tax rates or tax laws and regulations in the jurisdictions in which we operate; failure to comply with financial and restrictive covenants in our credit agreement or restrictions on our operational and financial flexibility due to such covenants; the outcome of ongoing and future litigation, including our asbestos-related product liability litigation; changes in environmental laws and regulations applicable to our business; and disruptions in, or breaches of, our information technology systems. 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 results for the second quarter of 2021 will take place today, Thursday, July 29, 2021 at 5pm ET.

A live webcast of the event and the accompanying presentation can be accessed on the Rogers Corporation website at https://www.rogerscorp.com/investors.

An audio replay of the conference call will be available from July 29, 2021 at approximately 8 pm ET through August 5, 2021 at 11:59 pm ET, by dialing 1-888-203-1112 from the United States, and entering the replay passcode of 9771089.

Additionally, the archived webcast will be available on the Rogers website at approximately 8 pm ET on July 29, 2021.

Additional information
Please contact the Company directly via email or visit the Rogers website.

(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, 2021

 

June 30, 2020

 

June 30, 2021

 

June 30, 2020

Net sales

$

234,906

 

$

191,157

 

$

464,171

 

$

389,967

 

Cost of sales

 

145,073

 

 

121,188

 

 

284,839

 

 

254,368

 

Gross margin

 

89,833

 

 

69,969

 

 

179,332

 

 

135,599

 

 

 

 

 

 

Selling, general and administrative expenses

 

44,959

 

 

41,694

 

 

87,372

 

 

82,024

 

Research and development expenses

 

7,492

 

 

7,295

 

 

14,664

 

 

15,100

 

Restructuring and impairment charges

 

747

 

 

 

 

2,253

 

 

 

Other operating (income) expense, net

 

890

 

 

(112

)

 

2,105

 

 

(92

)

Operating income

 

35,745

 

 

21,092

 

 

72,938

 

 

38,567

 

 

 

 

 

 

Equity income in unconsolidated joint ventures

 

1,930

 

 

1,022

 

 

4,111

 

 

2,240

 

Pension settlement charges

 

 

 

(55

)

 

 

 

(55

)

Other income (expense), net

 

1,239

 

 

634

 

 

4,207

 

 

(152

)

Interest expense, net

 

(404

)

 

(1,779

)

 

(1,011

)

 

(2,986

)

Income before income tax expense

 

38,510

 

 

20,914

 

 

80,245

 

 

37,614

 

Income tax expense

 

9,855

 

 

6,394

 

 

20,372

 

 

9,835

 

Net income

$

28,655

 

$

14,520

 

$

59,873

 

$

27,779

 

 

 

 

 

 

Basic earnings per share

$

1.53

 

$

0.78

 

$

3.20

 

$

1.49

 

 

 

 

 

 

Diluted earnings per share

$

1.52

 

$

0.78

 

$

3.18

 

$

1.49

 

 

 

 

 

 

Shares used in computing:

 

 

 

 

Basic earnings per share

 

18,729

 

 

18,676

 

 

18,721

 

 

18,673

 

Diluted earnings per share

 

18,846

 

 

18,681

 

 

18,810

 

 

18,686

 

 

Condensed Consolidated Statements of Financial Position (Unaudited)

 

(DOLLARS AND SHARES IN THOUSANDS, EXCEPT PAR VALUE)

June 30, 2021

December 31, 2020

Assets

 

 

Current assets

 

 

Cash and cash equivalents

$

203,945

 

$

191,785

 

Accounts receivable, less allowance for doubtful accounts of $1,319 and $1,682

 

157,471

 

 

134,421

 

Contract assets

 

30,285

 

 

26,575

 

Inventories

 

110,761

 

 

102,360

 

Prepaid income taxes

 

2,904

 

 

2,960

 

Asbestos-related insurance receivables, current portion

 

2,986

 

 

2,986

 

Other current assets

 

16,773

 

 

13,088

 

Total current assets

 

525,125

 

 

474,175

 

Property, plant and equipment, net of accumulated depreciation of $364 and $366

 

282,543

 

272,378

Investments in unconsolidated joint ventures

 

16,904

 

 

15,248

 

Deferred income taxes

 

25,986

 

 

28,667

 

Goodwill

 

267,192

 

 

270,172

 

Other intangible assets, net of amortization

 

111,404

 

 

118,026

 

Pension assets

 

5,694

 

 

5,278

 

Asbestos-related insurance receivables, non-current portion

 

63,807

 

 

63,807

 

Other long-term assets

 

14,821

 

 

16,254

 

Total assets

$

1,313,476

 

$

1,264,005

 

Liabilities and Shareholders’ Equity

 

 

Current liabilities

 

 

Accounts payable

$

53,471

 

$

35,987

 

Accrued employee benefits and compensation

 

43,915

 

 

41,708

 

Accrued income taxes payable

 

5,177

 

 

8,558

 

Asbestos-related liabilities, current portion

 

3,615

 

 

3,615

 

Other accrued liabilities

 

20,844

 

 

21,641

 

Total current liabilities

 

127,022

 

 

111,509

 

Borrowings under revolving credit facility

 

 

 

25,000

 

Pension and other postretirement benefits liabilities

 

1,658

 

 

1,612

 

Asbestos-related liabilities, non-current portion

 

69,469

 

 

69,620

 

Non-current income tax

 

16,930

 

 

16,346

 

Deferred income taxes

 

9,537

 

 

8,375

 

Other long-term liabilities

 

12,198

 

 

10,788

 

Shareholders’ equity

 

 

Capital stock - $1 par value; 50,000 authorized shares; 18,722 and 18,677 shares issued and outstanding

 

18,722

 

 

18,677

 

Additional paid-in capital

 

154,330

 

 

147,961

 

Retained earnings

 

933,565

 

 

873,692

 

Accumulated other comprehensive loss

 

(29,955

)

 

(19,575

)

Total shareholders' equity

 

1,076,662

 

 

1,020,755

 

Total liabilities and shareholders' equity

$

1,313,476

$

1,264,005

 

Reconciliation of non-GAAP financial measures to the comparable GAAP measures

Non-GAAP financial measures:

This earnings release includes the following financial measures that are not presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”):

(1) Adjusted operating margin, which the Company defines as operating margin excluding acquisition-related amortization of intangible assets and discrete items, such as acquisition and related integration costs, environmental accrual adjustments, gains or losses on the sale or disposal of property, plant and equipment, restructuring, severance, impairment and other related costs, UTIS fire charges, and the related income tax effect on these items (collectively, “discreteitems”);

(2) Adjusted net income, which the Company defines as net income excluding amortization of acquisition intangible assets and discrete items;

(3) Adjusted earnings per diluted share, which the Company defines as earnings per diluted share excluding amortization of acquisition intangible assets, and discrete items divided by adjusted weighted average shares outstanding - diluted;

(4) Adjusted EBITDA, which the Company defines as net income excluding interest expense, net, income tax expense, depreciation and amortization, stock-based compensation expense, and discrete items;

(5) Adjusted EBITDA Margin, which the Company defines as the percentage that results from dividing Adjusted EBITDA by total net sales;

(6) Free cash flow, which the Company defines as net cash provided by operating activities less non-acquisition capital expenditures.

Management believes adjusted operating margin, adjusted net income, adjusted earnings per diluted share, adjusted EBITDA and adjusted EBITDA margin are useful to investors because they allow for comparison to the Company’s performance in prior periods without the effect of items that, by their nature, tend to obscure the Company’s core operating results due to potential variability across periods based on the timing, frequency and magnitude of such items. As a result, management believes that these measures enhance the ability of investors to analyze trends in the Company’s business and evaluate the Company’s performance relative to peer companies. Management also believes free cash flow is useful to investors as an additional way of viewing the Company's liquidity and provides a more complete understanding of factors and trends affecting the Company's cash flows. However, non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as alternatives to, financial measures prepared in accordance with GAAP. In addition, these non-GAAP financial measures may differ from, and should not be compared to, similarly named measures used by other companies. Reconciliations of the differences between these non-GAAP financial measures and their most directly comparable financial measures calculated in accordance with GAAP are set forth below.

 

Reconciliation of GAAP operating margin to adjusted operating margin*:

2021

2020

Operating margin

Q2

Q1

Q2

GAAP operating margin

15.2

%

16.2

%

11.0

%

Acquisition and related integration costs

%

%

0.2

%

Environmental accrual adjustment

%

%

(0.1

)%

Gain on sale or disposal of property, plant and equipment

(0.3

)%

%

%

Restructuring, severance, impairment and other related costs

0.4

%

0.8

%

0.3

%

UTIS fire charges

0.6

%

0.6

%

%

Total discrete items

0.8

%

1.4

%

0.5

%

Operating margin adjusted for discrete items

16.0

%

17.6

%

11.5

%

Acquisition intangible amortization

1.3

%

1.4

%

3.9

%

Adjusted operating margin

17.4

%

19.0

%

15.4

%

*Percentages in table may not add due to rounding.

 
Reconciliation of GAAP net income to adjusted net income:

(amounts in millions)

2021

2020

Net income

Q2

Q1

Q2

GAAP net income

$

28.7

 

$

31.2

 

$

14.5

 

Acquisition and related integration costs

$

 

$

 

$

0.4

 

Environmental accrual adjustment

$

 

$

 

$

(0.2

)

Gain on sale or disposal of property, plant and equipment

$

(0.6

)

$

(0.1

)

$

0.1

 

Restructuring, severance, impairment and other related costs

$

1.0

 

$

1.9

 

$

0.6

 

Acquisition intangible amortization

$

3.1

 

$

3.1

 

$

7.5

 

UTIS fire charges

$

1.5

 

$

1.3

 

$

 

Income tax effect of non-GAAP adjustments and intangible amortization

$

(1.2

)

$

(1.5

)

$

(1.9

)

Adjusted net income

$

32.5

 

$

36.0

 

$

21.1

 

*Values in table may not add due to rounding.

 
Reconciliation of GAAP earnings per diluted share to adjusted earnings per diluted share*:

2021

2020

Earnings per diluted share

Q2

Q1

Q2

GAAP earnings per diluted share

$

1.52

 

$

1.66

 

$

0.78

 

Acquisition and related integration costs

 

 

 

 

 

0.02

 

Environmental accrual adjustment

 

 

 

 

 

(0.01

)

Gain on sale or disposal of property, plant and equipment

 

(0.02

)

 

 

 

 

Restructuring, severance, impairment and other related costs

 

0.04

 

 

0.08

 

0.02

 

UTIS fire charges

 

0.06

 

 

0.05

 

 

 

Total discrete items

$

0.08

 

$

0.13

 

$

0.04

 

Earnings per diluted share adjusted for discrete items

$

1.60

 

$

1.79

 

$

0.82

 

Acquisition intangible amortization

$

0.13

 

$

0.13

 

$

0.31

 

 

 

 

 

Adjusted earnings per diluted share

$

1.72

 

$

1.92

 

$

1.13

 

*Values in table may not add due to rounding.

 

Reconciliation of GAAP net income to adjusted EBITDA*:

2021

2020

(amounts in millions)

Q2

Q1

Q2

GAAP Net income

$

28.7

 

$

31.2

 

$

14.5

 

Interest expense, net

 

0.4

 

 

0.6

 

 

1.8

 

Income tax expense

 

9.9

 

 

10.5

 

 

6.4

 

Depreciation

 

7.5

 

 

7.2

 

 

7.4

 

Amortization

 

3.1

 

 

3.1

 

 

7.6

 

Stock-based compensation expense

 

4.4

 

 

4.0

 

 

3.9

 

Acquisition and related integration costs

 

 

 

 

 

0.4

 

Environmental accrual adjustment

 

 

 

 

 

(0.2

)

Gain on sale or disposal of property, plant and equipment

 

(0.6

)

 

(0.1

)

 

0.1

 

Restructuring, severance, impairment and other related costs

 

0.9

 

 

1.9

 

 

0.6

 

UTIS fire charges

 

1.5

 

 

1.3

 

 

 

Adjusted EBITDA

$

55.8

 

$

59.8

 

$

42.5

 

*Values in table may not add due to rounding.

 
Calculation of adjusted EBITDA margin*:

2021

2020

 

Q2

Q1

Q2

Adjusted EBITDA (in millions)

$

55.8

 

$

59.8

 

$

42.5

 

Divided by Total Net Sales (in millions)

 

234.9

 

 

229.3

 

 

191.2

 

Adjusted EBITDA Margin

 

23.8

%

 

26.1

%

 

22.2

%

*Values in table may not add due to rounding

 

Reconciliation of net cash provided by operating activities to free cash flow*:

 

 

 

2021

2020

(amounts in millions)

Q2

Q1

Q2

Net cash provided by operating activities

$

29.7

 

$

36.5

 

$

46.3

 

Non-acquisition capital expenditures

 

(17.8

)

 

(3.6

)

 

(7.0

)

Free cash flow

$

11.9

 

$

32.9

 

$

39.3

 

*Values in table may not add due to rounding.

 

 

 

 

Reconciliation of GAAP earnings per diluted share to adjusted earnings per diluted share guidance for the 2021 second quarter:

 

Guidance
Q2 2021

GAAP earnings per diluted share

$1.58 - $1.73

Discrete items

$0.09

Acquisition intangible amortization

$0.13

Adjusted earnings per diluted share

$1.80 - $1.95

 

Reconciliation of GAAP earnings per diluted share to adjusted earnings per diluted share guidance for the third quarter of 2021:

Guidance
Q3 2021

GAAP earnings per diluted share

$1.50 - $1.65

Discrete items

$0.07

Acquisition intangible amortization

$0.13

Adjusted earnings per diluted share

$1.70 - $1.85

 

Rogers Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de



Wertpapier



0 Kommentare

Schreibe Deinen Kommentar

Bitte melden Sie sich an, um zu kommentieren. Anmelden | Registrieren

 

Disclaimer

Rogers Corporation Reports Second Quarter 2021 Results Rogers Corporation (NYSE:ROG) today announced financial results for the second quarter of 2021. “Rogers achieved continued sales improvement in the second quarter driven by growth in EV/HEV, clean energy and other strategic markets,” stated Bruce D. …

Nachrichten des Autors

Titel
Titel
Titel
Titel