Rogers Corporation · NYSE:ROG
Rogers — Q3 2013 Earnings Presentation
16 slides from Rogers's earnings presentation, Oct 30, 2013
Slide 1: Third Quarter 2013 Earnings Conference Call
Third Quarter 2013 Earnings Conference Call 30 October, 2013 1
Slide 2: Introductions
Introductions Bruce Hoechner Dennis Loughran Bob Daigle President & CEO VP Finance and Chief Financial Senior VP and Chief Officer Technology Officer 2
Slide 3: Forward Looking and Cautionary Statements
Forward Looking and Cautionary Statements Safe Harbor Statement Statements in this presentation other than historical facts, including without limitation statements regarding the Company’s business strategy, future results of operations and financial position, and plans and objectives of management,
Slide 4: Market Highlights
Market Highlights Q3 Growth Drivers* Q3-2013 Sales by Market Clean Technology Medical & Up 45% driven by variable speed Consumer motor drive, HEV, wind and solar Electronics, Printing, Personal Cell Phones 1% Protection, applications (non-Internet), 2% 1% 6% Internet Growth Other, 8% Defense, 6% C
Slide 5: Business Segment Performance
Business Segment Performance Net Sales* Q3 Comments* Printed Circuit Materials Total revenues up 10.6% overall Power Electronics Solutions High Performance Foams Near record Q3 sales of Printed Others Circuit Materials (up 8.5% ) $160,000,000 $142.8 driven by wireless infrastructure, $129.1 auto
Slide 6: Driving Growth
Driving Growth Market-Driven Innovation Design Organization Excellence Collaboration • Marketing Excellence • Rogers Innovation • 671 total megatrend journey underway to Center, partnered with design opportunities in improve market & Northeastern the pipeline with many customer focus University, gea
Slide 7: Financial Highlights
Financial Highlights Dennis Loughran VP Finance and Chief Financial Officer Dennis Loughran, Chief Financial Officer 7
Slide 8: Roadmap to Profit Improvement
Roadmap to Profit Improvement Quarterly Cost Savings Ramp One Time Costs Savings Op Profit % * Q3 Comments $10 16% 14.4% $8.9 $8 14% 2013 Cost reduction actions are on $8.2 $6 track to deliver almost $4M in quarterly $7.6 benefit by Q1-2014 12% $4 11.2% 10.5% 10.1% 12.1% 9.6% $2 $4.5 $5.0 10% Ov
Slide 9: Profitability
Profitability Gross Margin as % of Net Sales* Q3 Comments** GAAP Excluding Special Charges Key contributors to Non-GAAP 35.9% margin improvement Q3-2013 vs. 35.8% 35% 33.3%33.5% 34.4% 33.0% 33.0% 33.5% 33.9% Q3-2012: 32.8% 30% Benefit from $1.2M in cost improvements from 2013 cost 25% reduction ef
Slide 10: Expenses
Expenses SG&A as % of Net Sales* Q3 Comments** GAAP Excluding Special Charges SG&A** % of Sales Revenue 25% 21.8% • Overall 80 basis points (bps) decrease 20.2% 20.0% 19.3% 20% 18.6% 18.8% 19.2% 19.1%17.9% in Non-GAAP costs as % of net sales 17.8% 15% • Cost reductions of $1.9 million 10% contribute
Slide 11: Liquidity
Liquidity Reported Cash and Debt Q3 Comments Cash Debt Net Debt $158.6 Strong history of cash generation $150.0 $137.0 and liquid reserves $126.4 $114.9 $100.0 $91.1 Q3-13 impacted by: $77.6 $44.0 Strong increase in cash by $50.0 $30.9 $21.6M during the quarter, $16.9 with proceeds from option
Slide 12: Guidance
Guidance Q4-2013 Financial Guidance As of 10/30/2013 Net Sales $129 to $135 million EPS (GAAP) $0.68 - $0.80 per diluted share Net Sales + $7.8 Gross Margin Contribution + 4.8 SG&A Changes: Target incentive accruals - 2.5 Curamik amortization - 0.3 2013 Cost Saving Initiatives + 2.4 Inflation Increa
Slide 13: Non-GAAP Reconciliation
Non-GAAP Reconciliation Rogers Corporation Reconciliation of GAAP to Non-GAAP Financial Measures (In % of Sales) (Unaudited) Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Gross Margin GAAP 33.3% 34.4% 32.8% 33.5% 35.8% Bremen shut-down charges 0.1 - - - - PDS shut-down charges 0.1 - - - - Inventory valuation adjust
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation Rogers Corporation Reconciliation of GAAP to Non-GAAP Financial Measures (In % of Sales) (Unaudited) Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Operating Profit as % of Sales GAAP 8.0% 5.5% 8.6% 6.1% 13.3% 12.1% Severance & related charges 0.4 3.5 0.6 2.3 .9 - Pension curtailment/se
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP to non-GAAP Income Per Diluted Share from Continuing Operations for the Third Quarter and YTD of 2013 and 2012 The following table includes non-recurring charges related to special adjustments. 2013 2012 Q3 YTD Q3 YTD GAAP income per diluted share from
Slide 16: Questions?
The world runs better with Rogers.® 16