Rogers Corporation · NYSE:ROG
Rogers — Q3 2016 Earnings Presentation
29 slides from Rogers's earnings presentation, Nov 3, 2016
Slide 1: Rogers Corporation Q3-2016 Earnings Call
Rogers Corporation Q3-2016 Earnings Call Nov. 3, 2016
Slide 2: Introductions
Introductions Bruce Hoechner Janice Stipp Bob Daigle President & Vice President, Finance & Senior Vice President & Chief Executive Officer Chief Financial Officer Chief Technology Officer 2
Slide 3: Forward Looking and Cautionary Statements
Forward Looking and Cautionary Statements Safe Harbor Statement This presentation contains forward-looking statements, which may concern our plans, objectives, outlook, goals, strategies, future events, future net sales or performance, capital expenditures, financing needs, future restructuring, pla
Slide 4: Q3-2016 Summary Results
Q3-2016 Summary Results ($ in millions, except EPS) Q3-2016 Q3-2015 Variance Net Sales $165.3 $160.4 $4.9 Growth % 3.1% Operating Income $23.1 $23.2 ($0.1) Operating Margin % 14.0% 14.5% (50bps) Adjusted Operating Income* $25.1 $26.6 ($1.5) Adjusted Operating Margin %* 15.2% 16.6% (140bps) Net Incom
Slide 5: Strategy for Sustainable Growth
Strategy for Sustainable Growth Our Global leader in engineered materials solutions to power, protect, connect our world Focus Our Market-Driven Innovation Synergistic Operational Strategy Organization Leadership M&A Excellence A Winning Team: Top Talent, Engaged Employees, Performance Culture Our R
Slide 6: Market Outlook
Market Outlook Positive - Megatrends Internet Connectivity Clean Energy Safety & Protection Mobile Data Traffic Emobility Automotive Safety Systems • 45% CAGR through 2021 • 28% CAGR through 2020* • 29% CAGR through 2026 Ericsson, Feb. 2016 • Supportive policies in ABI Research, April 2016 China *IH
Slide 7: Advanced Connectivity Solutions (ACS)
Advanced Connectivity Solutions (ACS) ($ in millions) Q3-2016 Q3-2015 Variance Revenue $65.5 $66.2 $(0.7) Growth % (1.0%) Operating Income $7.6 $12.0 $(4.4) Operating Margin % 11.6% 18.1% (650bps) Adj. Op. Income* $8.1 $13.4 $(5.3) Adj. Op. Margin %* 12.3% 20.3% (800bps) Strategy • Maintain strong l
Slide 8: Elastomeric Material Solutions (EMS)
Elastomeric Material Solutions (EMS) ($ in millions) Q3-2016 Q3-2015 Variance Revenue $54.4 $46.8 $7.6 Growth % 16.3% Operating Income $10.9 $8.2 $2.7 Operating Margin % 20.1% 17.4% 270bps Adj. Op. Income* $11.5 $9.2 $2.3 Adj. Op. Margin %* 21.2% 19.6% 160bps Strategy • Expand geographic penetration
Slide 9: Power Electronics Solutions (PES)
Power Electronics Solutions (PES) ($ in millions) Q3-2016 Q3-2015 Variance Revenue $39.8 $36.6 $3.2 Growth % 8.8% Operating Income $2.8 $1.1 $1.7 Operating Margin % 7.0% 3.0% 400bps Adj. Op. Income* $3.6 $2.0 $1.6 Adj. Op. Margin %* 8.9% 5.6% 330bps Strategy • Maintain leadership position in applica
Slide 10: Financial Highlights
Financial Highlights Janice Stipp, VP Finance and Chief Financial Officer 10
Slide 11: Q3-2016 Summary Results
Q3-2016 Summary Results ($ in millions, except EPS) Q3-2016 Q3-2015 Variance Net Sales $165.3 $160.4 $4.9 Growth % 3.1% Operating Income $23.1 $23.2 ($0.1) Operating Margin % 14.0% 14.5% (50bps) Adjusted Operating Income* $25.1 $26.6 ($1.5) Adjusted Operating Margin %* 15.2% 16.6% (140bps) Net Incom
Slide 12: Q3-2016 Revenue Bridge
Q3-2016 Revenue Bridge ($ in millions) $180 7.2% -0.9% -3.2% $1.5 3.1% $11.6 $5.2 3.1% $140 $165.3 $165.3 $160.4 $100 Q3-2015 Revenue Volume Currency Acquisition / Q3-2016 Revenue & Other Divestiture Q3 revenue exceeded guidance of $150M - $160M 12
Slide 13: Q3-2016 Adjusted Operating Income Bridge
Q3-2016 Adjusted Operating Income* Bridge ($ in millions) $35 +6.0% -14.3% 2.6% $1.6 $0.7 $3.8 0.0% $0.0 -5.7% $26.6 $25.1 $20 Q3-2015 Adj. Op. Volume Performance SG&A R&D Q3-2016 Adj. Op. Income* & Other Income* * Adjusted for acquisition intangible amortization and other Discrete Items. See reconc
Slide 14: Q3-2016 Adjusted EBITDA Bridge
Q3-2016 Adjusted EBITDA* Bridge ($ in millions) $40 +5.5% -9.5% +6.8% +4.9% +2.1% $1.8 $0.0 $3.1 0.0% $0.7 $2.2 $34.1 $32.5 $20 Q3-2015 Volume Performance SG&A R&D Misc. Inc/Exp Q3-2016 Adj. EBITDA* & Other Adj. EBITDA* * Adjusted for interest expense, net income tax expense, depreciation and amorti
Slide 15: Q3-2016 Adjusted EPS Bridge
Q3-2016 Adjusted EPS* Bridge $1.35 +6.7% -15.7% +2.2% +6.7% $0.06 +10.1% +3.4% $0.02 $0.03 $0.14 0.0% $0.09 $0.95 $0.89 $0.00 $0.75 Q3-2015 Volume Performance SG&A R&D Misc.Inc/Exp Share Q3-2016 Adj. EPS* & Other Dilution Adj. EPS* Q3 Adjusted EPS of $0.95, exceeded guidance of $0.69 - $0.79 * Adjus
Slide 16: Q3-2016 Segment Revenue
Q3-2016 Segment Revenue ($ in millions) Q3 2016 Change $100 ACS -1.0% EMS 16.3% PES 8.8% $50 $66.2 $65.5 $54.4 $46.8 $36.6 $39.8 $0 ACS EMS PES Q3-2015 Q3-2016 16
Slide 17: Q3-2016 Segment Adjusted Operating Income
Q3-2016 Segment Adjusted Operating Income* ($ in millions) Adjusted Operating Margin $20 Q3-2015 Q3-2016 ACS 20.3% 12.3% EMS 19.6% 21.2% PES 5.6% 8.9% $10 $13.4 $11.5 $9.2 $8.1 $3.6 $2.0 $0 ACS EMS PES Q3-2015 Q3-2016 * Adjusted for acquisition intangible amortization and other Discrete Items. See r
Slide 18: Q3 YTD - 2016 Cash Utilization
Q3 YTD - 2016 Cash Utilization ($ in millions) Cash Provided by Operating Activities $94.2M Cash Used In Investing Activities $14.9M $350 Cash Used In Financing Activities $108.9M $12.3 $102.6 $97.1 $300 $250 $14.9 $18.3 $200 $8.0 $211.4 $3.0 $6.4 $204.6 $196.5 $178.2 $173.5 $170.2 $167.2 $167.2 $15
Slide 19: Q4-2016 Guidance
Q4-2016 Guidance ($ in millions, except EPS) Revenue $155M - $165M EPS $0.61 - $0.71 Adjusted EPS* $0.76 - $0.86 * Adjusted for acquisition intangible amortization and Discrete Items. See reconciliation table on slide 28. 19
Slide 20: Q&A
Q&A Helping power, protect, connect our world
Slide 21: Appendix
CORPORATION Wein Helping power, protect, connect our world’ 21
Slide 22: Adjusted Operating Income & Operating Margin Reconciliation
Q3-2016 Adjusted Operating Income & Operating Margin Reconciliation ($ in millions) Q3-16 (%) Q3-16 ($) Q3-15 (%) Q3-15 ($) Operating Margin & Operating Income 14.0% $23.1 14.5% $23.2 Restructuring, Severance and Other Related Costs 0.1% $0.2 0.3% $0.5 Environmental Accrual Adjustment (0.5)% ($0.9)
Slide 23: Adjusted EBITDA Reconciliation
Q3-2016 Adjusted EBITDA Reconciliation ($ in millions) Q3-16 Q3-15 YTD Q3-16 ($) Q3-16 (%) Q3-15 ($) ($) (%) Net Income $36.4 9.7% $16.1 7.8% $12.5 Interest $3.1 0.5% $0.8 0.7% $1.1 Income Tax Expense $29.1 4.7% $7.8 6.0% $9.6 Depreciation $19.6 4.0% $6.6 3.7% $5.9 Amortization $8.0 1.6% $2.7 1.8% $
Slide 24: Adjusted EPS Reconciliation
Q3-2016 Adjusted EPS Reconciliation ($ in millions) Q3-16 ($) Q3-15 ($) Earnings per Diluted Share $0.88 $0.67 Restructuring, Severance and Other Related Costs $0.01 $0.02 Environmental Accrual Adjustment ($0.03) - Tax Discrete Items - $0.10 Integration Costs - - Total Discrete Items ($0.02) $0.12 E
Slide 25: ACS Adj. Op. Income & Operating Margin Reconciliation
Q3-2016 ACS Adj. Op. Income & Operating Margin Reconciliation ($ in millions) Q3-16 (%) Q3-16 ($) Q3-15 (%) Q3-15 ($) Operating Margin & Operating Income (ACS) 11.6% $7.6 18.1% $12.0 Restructuring, Severance and Other Related Costs 0.1% $0.1 0.1% $0.1 Environmental Accrual Adjustment (0.6)% $(0.4) -
Slide 26: EMS Adj. Op. Income & Operating Margin Reconciliation
Q3-2016 EMS Adj. Op. Income & Operating Margin Reconciliation ($ in millions) Q3-16 (%) Q3-16 ($) Q3-15 (%) Q3-15 ($) Operating Margin & Operating Income (EMS) 20.1% $10.9 17.4% $8.2 Restructuring, Severance and Other Related Costs - - (0.1)% ($0.1) Environmental Accrual Adjustment (0.3)% ($0.2) - -
Slide 27: PES Adj. Op. Income & Operating Margin Reconciliation
Q3-2016 PES Adj. Op. Income & Operating Margin Reconciliation ($ in millions) Q3-16 (%) Q3-16 ($) Q3-15 (%) Q3-15 ($) Operating Margin & Operating Income (PES) 7.0% $2.8 3.0% $1.1 Restructuring, Severance and Other Related Costs - - 1.5% $0.5 Environmental Accrual Adjustment (0.5)% ($0.2) - - Operat
Slide 28: Q4-2016 Guidance Reconciliation
Q4-2016 Guidance Reconciliation ($ in millions) Q4-16 ($) Guidance Q4-16 earnings per diluted share $0.61- $0.71 Add back adjustments: Restructuring/Other Expenses $0.06 Acquisition Intangible Amortization $0.09 Guidance Q4-16 Adjusted earnings per diluted share $0.76 - $0.86 28
Slide 29: Rogers Corporation closing slide
protect | connect ROGERS CORPORATION Helping power, protect, connect our world