Rogers Corporation · NYSE:ROG
Rogers — Q1 2020 Earnings Presentation
25 slides from Rogers's earnings presentation, Apr 30, 2020
Slide 1: Q1 2020 Earnings Call
Q1 2020 Earnings Call April 30, 2020 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: COVID-19 Update
COVID-19 Update Protecting employee health is top priority - Rigorous safety procedures at all locations and temporarily expanded certain employee benefits Focusing on business continuity for our global customers - All manufacturing locations are operational and no significant supply chain disruptio
Slide 5: Q1 2020 Overview
Q1 2020 Overview Financials Revenue by Market Segment Advanced Advanced Wireless Mobility ADAS Connectivity • Net sales of $199M, up 3% QoQ Infrastructure Results 27% 9% 21% • Gross margin of 33.0% 11% e-Mobility Portable • Adjusted EPS1 of $0.92 per diluted share 12% Electronics 10% Mass Transit 6%
Slide 6: Advanced Connectivity Solutions (ACS)
Advanced Connectivity Solutions (ACS) Q1 2020 Update Strategy • Net sales of $65M, flat QoQ • Leverage innovation to capitalize on market opportunities in key areas: • Strong growth in ADAS and • Automotive safety sensors improved wireless infrastructure demand • Aerospace & Defense • Decline in aer
Slide 7: Power Electronics Solutions (PES)
Power Electronics Solutions (PES) Q1 2020 Update Strategy • Net sales of $47M, up 6% QoQ • Leverage our proven technology to capitalize on strong market growth • Growth in EV/HEV and renewable opportunities in Advanced Mobility energy applications applications • Invest in capacity to support • Lower
Slide 8: Elastomeric Material Solutions (EMS)
Elastomeric Material Solutions (EMS) Q1 2020 Update Strategy • Net sales of $84M, up 4% QoQ • Capitalize on the large emerging market opportunity for EV/HEV • Rebound in general industrial and battery pads and battery pack higher EV/HEV battery and mass sealing solutions transit demand. • Maintain l
Slide 9: Summary
Summary Focused on protecting employees and meeting customers’ needs Solid Q1 financial results and stable Q2 outlook Limited future visibility and expect significant impacts to certain markets Strong balance sheet and focus on expense and cash management Addressing near-term challenges while mainta
Slide 10: Financial overview
Financial overview Mike Ludwig, Sr. Vice President and Chief Financial Officer
Slide 11: Q1 2020 Financial highlights
Q1 2020 Financial highlights ($ in millions, except EPS) Q1-2020 Q4-2019 Q1-2019 Net sales $198.8 $193.8 $239.8 Gross margin $65.6 $64.2 $85.4 Gross margin % 33.0% 33.1% 35.6% Operating income $17.5 $14.6 $32.8 Operating margin % 8.8% 7.5% 13.7% Adjusted operating income* $22.6 $22.5 $41.0 Adjusted
Slide 12: Revenue bridge vs prior quarter
Revenue bridge vs prior quarter ($ in millions) Q1-2020 Update +2.3% +0.3% +2.6% • Revenues of $199 million or 2.6% $0.5 increase sequentially $4.5 • Volume & Other gain due to higher $193.8 $198.8 demand in EMS & PES segments; ACS flat sequentially • Stronger Euro contributed to favorable currency
Slide 13: Gross margin bridge vs prior quarter
Gross margin bridge vs prior quarter ($ in millions) Q1-2020 Update (2.3%) +4.4% +0.1% +2.2% • Volume & Other negatively impacted $0.1 by unfavorable mix across all segments $1.5 $2.8 $64.2 $65.6 • Performance improvement due increased productivity, higher 33.1% 33.0% throughput & reduced manufactur
Slide 14: Adjusted net income bridge vs prior quarter
Adjusted net income* bridge vs prior quarter ($ in millions) Q1-2020 Update • Adjusted Op Income* dollars slightly +0.4% (5.6%) (14.1%) higher; increased gross margin dollars $0.1 $1.2 (19.3%) offset by higher operating expenses $3.0 $21.3 $17.2 • Other income/expense negatively impacted by copper d
Slide 15: Cash utilization
Cash utilization ($ in millions) Net cash provided by operating activities $8.6M Net cash used in investing activities ($11.2M) Net cash provided by financing activities $145.6M $150.0 Effect of FX ($1.6M) Net increase (decrease) in cash $141.4M $11.2 $18.5 $2.4 $13.2 $1.4 $33.4 $308.3 $166.8 12/31/
Slide 16: Q2-2020 guidance
Q2-2020 guidance ($ in millions, except EPS) Net sales $190M - $205M Gross Margin 32.5 % - 33.5% EPS $0.58 - $0.78 Adjusted EPS* $0.80 - $1.00 *See reconciliation of adjusted earnings per diluted share to earnings per diluted share in the appendix. 16
Slide 17: Appendix
ROGERS CORPORATION
Slide 18: Q1-2020: Adjusted operating income and operating margin reconciliation
Q1-2020: Adjusted operating income and operating margin reconciliation ($ in millions) Q1-19($) Q1-19(%) Q4-19($) Q4-19(%) Q1-20($) Q1-20(%) Operating income and operating margin $32.8 13.7% $14.6 7.5% $17.5 8.8% Restructuring, severance, impairment and other related costs $1.9 0.8% $0.8 0.4% $1.1 0
Slide 19: Q1-2020: Adjusted EBITDA and adjusted EBITDA margin reconciliation
Q1-2020: Adjusted EBITDA and adjusted EBITDA margin reconciliation ($ in millions) Q1-19($) Q1-19(%) Q4-19($) Q4-19(%) Q1-20($) Q1-20(%) Net Income $28.4 11.8% ($28.8) (14.8%) $13.3 6.7% Interest expense, net $1.9 0.8% $1.1 0.6% $1.2 0.6% Income tax expense $4.7 2.0% ($9.5) (4.9%) $3.4 1.7% Deprecia
Slide 20: Q1-2020: Adjusted EPS reconciliation
Q1-2020: Adjusted EPS reconciliation Q1-19 ($) Q4-19 ($) Q1-20 ($) GAAP earnings per diluted share $1.52 ($1.55) $0.71 Restructuring, severance, impairment and other related costs $0.07 $0.03 $0.04 Acquisition and related integration costs $0.02 $0.02 $0.02 Transition services, net $0.03 $0.01 - Asb
Slide 21: Q1-2020: Adjusted net income reconciliation
Q1-2020: Adjusted net income reconciliation ($ in millions) Q1-19 ($) Q1-19(%) Q4-19 ($) Q4-19(%) Q1-20($) Q1-20(%) Net Income $28.4 11.8% ($28.8) (14.8%) $13.3 6.7% Restructuring, severance, impairment and other related costs $1.9 0.8% $0.8 0.4% $1.1 0.5% Acquisition and related integration costs $
Slide 22: Q1-2020: Adjusted operating expenses reconciliation
Q1-2020: Adjusted operating expenses reconciliation* ($ in millions) Q1-19($) Q1-19(%) Q4-19($) Q4-19(%) Q1-20($) Q1-20(%) Operating expenses $52.6 21.9% $49.7 25.6% $48.2 24.2% Restructuring, severance, impairment and other related costs ($1.9) (0.8%) ($0.8) (0.4%) ($1.1) (0.5%) Acquisition and rel
Slide 23: Q1-2020: Free cash flow reconciliation
Q1-2020: Free cash flow reconciliation* ($ in millions) Q1-19($) Q4-19($) Q1-20($) Net cash provided by operating activities $17.1 $45.7 $8.6 Non-acquisition capital expenditures ($12.6) ($12.8) ($11.2) Free cash flow $4.4 $32.9 ($2.5) Note: dollars may not add due to rounding *Free cash flow define
Slide 24: Q1-2020: Weighted average shares outstanding–diluted reconciliation
Q1-2020: Weighted average shares outstanding–diluted reconciliation (shares in thousands) Q1-19 Q4-19 Q1-20 Weighted average shares outstanding – diluted 18,692 18,587 18,691 Dilutive effect of awards under equity compensation plans - 118 - Adjusted weighted average shares outstanding – diluted 18,6
Slide 25: Q2-2020: Guidance reconciliation
Q2-2020: Guidance reconciliation Q2-20 ($) GAAP earnings per diluted share $0.58 – $0.78 Discrete items $0.07 Acquisition intangible amortization $0.15 Adjusted earnings per diluted share $0.80 - $1.00 Note: dollars may not add due to rounding. 25