Rogers Corporation · NYSE:ROG
Rogers — Q4 2020 Earnings Presentation
30 slides from Rogers's earnings presentation, Feb 18, 2021
Slide 1: Q4 2020 Earnings Call
Q4 2020 Earnings Call February 18, 2021 1
Slide 2: Forward-looking statements
Forward-looking statements Safe Harbor Statement This presentation 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 expansi
Slide 3: Introductions
Introductions Bruce Hoechner Mike Ludwig Bob Daigle President & Senior Vice President & Senior Vice President & Chief Executive Officer Chief Financial Officer Chief Technology Officer 3
Slide 4: Q4 & 2020 Overview
Q4 & 2020 Overview Q4 Results: 2020 Results: • Net sales: $211M, up 4% QoQ • Net sales: $803M, down 11% YoY • Gross margin: 38.3%, up 90 bps QoQ • Gross margin: 36.4%, up 140 bps YoY • EPS: $0.81, up 119% QoQ • EPS: $2.67, up 6% YoY • Adjusted EPS*: $1.58, up 9% QoQ • Adjusted EPS*: $5.08, down 17%
Slide 5: Market Highlights
Market Highlights Summary Revenue by Market Segment - 2020 Q4 Advanced Advanced Mobility Wireless Connectivity • Robust ADAS sales driven by recovery in auto demand 24% ADAS Infrastructure 24% 7% • EV/HEV momentum continued to build 10% e-Mobility 12% Portable • Improvement in General Industrial dem
Slide 6: Market Outlook
Market Outlook EV/HEV ADAS • Long-term growth outlook of >30% CAGR1 to 2025 • Expected market growth of 15-20% CAGR2 to 2025 • New models, improved availability driving growth • ADAS features becoming standard on more vehicles • Incentives and regulations adding to momentum • Safety regulations and
Slide 7: Strategic Priorities
Strategic Priorities Advanced Electronics Solutions Market-Driven Organization Combining ACS and PES business units to: • Accelerate ability to capitalize on highest Innovation Leadership growth market opportunities by leveraging leadership and engineering capabilities in High Power and High Frequen
Slide 8: Commitment to Corporate Social Responsibility
Commitment to Corporate Social Responsibility • Rogers’ commitment to sustainability is deeply rooted throughout our history • Our advanced materials are found in leading-edge technologies that improve lives, protect our environment and fuel our future • Rogers is committed to being responsible memb
Slide 9: Summary
Summary 1 Built a stronger and more sustainable business in 2020, despite challenging environment 2 Robust outlook for EV/HEV and ADAS demand; Strong growth outlook in other strategic markets 3 Investing aggressively in 2021 to capitalize on EV/HEV and other market opportunities 4 Strong commitment
Slide 10: Financial Overview
Financial Overview Mike Ludwig, Sr. Vice President and Chief Financial Officer
Slide 11: Q4 2020 Financial Highlights
Q4 2020 Financial Highlights ($ in millions, except EPS) Q4-2020 Q3-2020 Q4-2019 Net sales $210.7 $201.9 $193.8 Gross margin $80.7 $75.5 $64.2 Gross margin % 38.3% 37.4% 33.1% Operating income $20.0 $8.8 $14.6 Operating margin % 9.5% 4.4% 7.5% Adjusted operating income* $38.8 $35.0 $22.5 Adjusted op
Slide 12: Q4 2020 Revenue Results
Q4 2020 Revenue Results Consolidated Revenue Revenue by Business Unit* +2.8% +1.5% +4.3% $3.1 $5.7 +0.2% ($ in millions) ($ in millions) $86.4 $86.6 +9.1% $201.9 $210.7 $69.5 +4.6% $63.7 $47.9 $50.1 Q3'20 Volume Currency Q4'20 EMS EMS ACS ACS PES PES & Other* Q3'20 Q4'20 Q3'20 Q4'20 Q3'20 Q4'20 • Re
Slide 13: Q4 2020 Gross Margin & Adjusted Net Income Results
Q4 2020 Gross Margin & Adjusted Net Income* Results Gross Margin Adjusted Net Income* +4.8% (0.4%) +6.9% +16.6% (20.9%) +2.5% +9.6% +13.9% $3.6 $0.3 $80.7 $4.5 $5.7 $1.9 ($ in millions) $29.7 ($ in millions) $75.5 $27.1 $3.8 37.4% 38.3% 13.4% 14.1% Q3'20 Volume* Performance COVID-19 Q4'20 Q3-20 Adj.
Slide 14: Full Year 2020 Cash Utilization
Full Year 2020 Cash Utilization ($ in millions) Net cash provided by operating activities $165.1M Net cash used in investing activities ($40.4M) Net cash provided by financing activities ($104.2M) Effect of FX +$4.5M $177.0 Net increase (decrease) in cash $24.9M $41.3 $98.0 $30.1 $40.4 $7.3 $17.7 $1
Slide 15: Q1-2021 Guidance
Q1-2021 Guidance Net sales $215M - $225M Gross Margin 38.5% - 39.5% EPS $1.48 - $1.63 Adjusted EPS* $1.72 - $1.87 *See reconciliation of adjusted earnings per diluted share to GAAP earnings per diluted share in the appendix. 15
Slide 16: Appendix
ROGERS CORPORATION
Slide 17: Full Year 2020 Financial Highlights
Full Year 2020 Financial Highlights ($ in millions, except EPS) FY-2020 FY-2019 Net sales $802.6 $898.3 Gross margin $291.8 $314.3 Gross margin % 36.4% 35.0% Operating income $67.3 $110.5 Operating margin % 8.4% 12.3% Adjusted operating income* $125.8 $141.4 Adjusted operating margin %* 15.7% 15.7%
Slide 18: Q4-2020: Adjusted operating margin reconciliation
Q4-2020: Adjusted operating margin reconciliation ($ in millions) Q4-19($) Q4-19(%) Q3-20($) Q3-20(%) Q4-20($) Q4-20(%) GAAP operating margin $14.6 7.5% $8.8 4.4% $20.0 9.5% Restructuring, severance, impairment and other related costs $0.8 0.4% $10.7 5.3% $4.0 1.9% Acquisition and related integratio
Slide 19: Q4-2020: Adjusted EBITDA and adjusted EBITDA margin reconciliation
Q4-2020: Adjusted EBITDA and adjusted EBITDA margin reconciliation ($ in millions) Q4-19($) Q3-20($) Q4-20($) GAAP net income ($28.8) $7.0 $15.2 Interest expense, net $1.1 $3.6 $0.6 Income tax expense ($9.5) $0.6 $8.1 Depreciation $7.6 $7.3 $7.4 Amortization $4.4 $15.4 $15.5 Stock-based compensation
Slide 20: Q4-2020: Adjusted EPS reconciliation
Q4-2020: Adjusted EPS reconciliation Q4-19 ($) Q3-20 ($) Q4-20 ($) GAAP earnings per diluted share ($1.55) $0.37 $0.81 Restructuring, severance, impairment and other related costs $0.03 $0.43 $0.16 Acquisition and related integration costs $0.02 $0.01 - Transition services, net $0.01 - - Pension set
Slide 21: Q4-2020: Adjusted net income reconciliation
Q4-2020: Adjusted net income reconciliation ($ in millions) Q4-19 ($) Q4-19(%) Q3-20($) Q3-20(%) Q4-20($) Q4-20(%) GAAP Net Income ($28.8) (14.8%) $7.0 3.5% $15.2 7.2% Restructuring, severance, impairment and other related costs $0.8 0.4% $10.7 5.3% $4.0 1.9% Acquisition and related integration cost
Slide 22: Q4-2020: Adjusted operating expenses reconciliation
Q4-2020: Adjusted operating expenses reconciliation* ($ in millions) Q4-19($) Q4-19(%) Q3-20($) Q3-20(%) Q4-20($) Q4-20(%) GAAP operating expenses $49.6 25.6% $66.7 33.0% $60.7 28.8% Restructuring, severance, impairment and other related costs ($0.8) (0.4%) ($10.7) (5.3%) ($4.0) (1.9%) Acquisition a
Slide 23: Q4-2020: Free cash flow reconciliation
Q4-2020: Free cash flow reconciliation* ($ in millions) Q4-19($) Q3-20($) Q4-20($) Net cash provided by operating activities $45.7 $58.7 $51.4 Non-acquisition capital expenditures ($12.8) ($10.8) ($11.4) Free cash flow $32.9 $47.9 $39.9 Note: dollars may not add due to rounding. *Free cash flow defi
Slide 24: 2020: Adjusted operating margin reconciliation
2020: Adjusted operating margin reconciliation ($ in millions) FY-19($) FY-19(%) FY-20($) FY-20(%) GAAP operating margin $110.5 12.3% $67.3 8.4% Restructuring, severance, impairment and other related costs $7.7 0.9% $16.4 2.0% Acquisition and related integration costs $1.9 0.2% $1.0 0.1% Transition
Slide 25: 2020: Adjusted EBITDA and adjusted EBITDA margin reconciliation
2020: Adjusted EBITDA and adjusted EBITDA margin reconciliation ($ in millions) FY-19($) FY-20($) GAAP net income $47.3 $50.0 Interest expense, net $6.9 $7.1 Income tax expense $7.8 $18.5 Depreciation $31.4 $29.3 Amortization $17.8 $42.1 Stock-based compensation expense $12.3 $13.5 Restructuring, se
Slide 26: 2020: Adjusted EPS reconciliation
2020: Adjusted EPS reconciliation FY-19 ($) FY-20 ($) GAAP earnings per diluted share $2.53 $2.67 Restructuring, severance, impairment and other related costs $0.31 $0.67 Acquisition and related integration costs $0.08 $0.04 Transition services, net $0.04 - Pension settlement charges $2.35 - Asbesto
Slide 27: 2020: Adjusted net income reconciliation
2020: Adjusted net income reconciliation ($ in millions) FY-19 ($) FY-19(%) FY-20($) FY-20(%) GAAP Net Income $47.3 5.3% $50.0 6.2% Restructuring, severance, impairment and other related costs $7.7 0.9% $16.4 2.0% Acquisition and related integration costs $1.9 0.2% $1.0 0.1% Transition service, net
Slide 28: 2020: Adjusted operating expenses reconciliation
2020: Adjusted operating expenses reconciliation* ($ in millions) FY-19($) FY-19(%) FY-20($) FY-20(%) GAAP operating expenses $203.8 22.7% $224.5 28.0% Restructuring, severance, impairment and other related costs ($7.7) (0.9%) ($16.4) (2.0%) Acquisition and related integration costs ($1.9) (0.2%) ($
Slide 29: 2020: Free cash flow reconciliation
2020: Free cash flow reconciliation* ($ in millions) FY-19($) FY-20($) Net cash provided by operating activities $161.3 $165.1 Non-acquisition capital expenditures ($51.6) ($40.4) Free cash flow $109.7 $124.7 Note: dollars may not add due to rounding. *Free cash flow defined as net cash provided by
Slide 30: Q1-2021: Guidance reconciliation
Q1-2021: Guidance reconciliation Q1-21 ($) GAAP earnings per diluted share $1.48 – $1.63 Discrete items $0.11 Acquisition intangible amortization $0.13 Adjusted earnings per diluted share $1.72 - $1.87 Note: dollars may not add due to rounding. 30