Rogers Corporation Reports Second Quarter 2019 Results

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

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