Rogers : 2024 Fourth Quarter Year End Conference Call Slides

Published: 2025-02-19 17:35:32 ET ROG

Q4 2024 Earnings Call

FEBRUARY 19, 2025

Non-GAAP and Additional Information

Non-GAAP Information

This presentation includes the following financial measures that are not presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"):

Management believes adjusted operating income, adjusted operating margin, adjusted operating expenses, adjusted net income, adjusted earnings per diluted share, adjusted EBITDA, adjusted EBITDA margin are useful to investors because they allow for comparison to the Company's performance in prior periods without the effect of items that, by their nature, tend to obscure the Company's core operating results due to potential variability across periods based on the timing, frequency and magnitude of such items. As a result, management believes that these measures enhance the ability of investors to analyze trends in the Company's business and evaluate the Company's performance relative to peer companies. Management also believes free cash flow is useful to investors as an additional way of viewing the Company's liquidity and provides a more complete understanding of factors and trends affecting the Company's cash flows. However, non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as alternatives to, financial measures prepared in accordance with GAAP. In addition, these non-GAAP financial measures may differ from, and should not be compared to, similarly named measures used by other companies. Reconciliations of the differences between these non-GAAP financial measures and their most directly comparable financial measures calculated in accordance with GAAP are set forth below.

Introductions

Colin Gouveia

Laura Russell

President &

Senior Vice President &

Chief Executive Officer

Chief Financial Officer

Today's Key Messages

Q4 results in line with guidance expectations

Market challenges persisting, particularly in the EV/HEV and industrial markets

Good progress on commercial, innovation and operational initiatives in 2024

Continued to generate solid cash flow and further strengthened the balance sheet in 2024

Rogers Well Positioned for a Market Recovery

» Commercial Wins

» R&D Investments

» Operational Excellence

Results Overview

Q4 2024 SUMMARY

REVENUE BY MARKET SEGMENT

HIGHLIGHTS

•

Sales, gross margin and earnings in line with expectations

•

Strong aerospace and defense (A&D) sales in Q4

Other

12%EV/HEV

Significant Growth

• ADAS and EV/HEV sales also improved versus the prior quarter

Wireless

18%

CHALLENGES

Infrastructure

2024

Full Year

Industrial

Core

26%

Portable

Growth

Electronics

Renewables

Percentages may not add due to rounding

ADAS

A&D

14%

High

Growth

Commercial and Innovation Progress

Commercial

Secured significant design wins in 2024

Strengthened M&A pipeline

Innovation

New product introductions

Ongoing product development

Positioned for Growth with 'Local for Local' Strategy

Global Footprint Advancing 'local for local' manufacturing footprint strategy with new power substrate and silicone lines ramping in China in 2025. Well positioned for growth with market recovery.

Access Markets Competitively Proximity to customers and capabilities to support regional growth.

Flexible Operations Multi-site product, raw material and supply-chain qualifications.

Manufacturing Optimization Driving improved utilization with RFS footprint consolidation. Continuing to target manufacturing cost reductions with yield improvements and greater automation.

Silicones

curamik® Power

Substrates

Silicones

curamik® Power

Budapest,

Radio Frequency

Substrates

Hungary

Solutions

Radio Frequency

Silicones

Urethanes

Urethanes &

Solutions1

Silicones

Radio Frequency

Solutions

North America

Europe

Asia

AES

EMS

Product

2025 Start of

1 - Belgium location scheduled to cease manufacturing in

Manufactured

Production

2025 as part of RFS capacity footprint consolidation

Q4 and Full Year 2024 Financial Summary

(in millions, except for EPS)

Q4 2024

Q3 2024

2024

2023

Net sales

$192.2

$210.3

$830.1

$908.4

Gross margin

$61.7

$74.1

$277.1

$307.1

Gross margin %

32.1%

35.2%

33.4%

33.8%

Operating income (loss)

($5.0)

$14.6

$32.6

$85.3

Operating margin %

(2.6%)

6.9%

3.9%

9.4%

Adjusted operating income*

$9.1

$24.7

$67.1

$102.1

Adjusted operating margin %*

4.7%

11.7%

8.1%

11.2%

Net income (loss)

($0.5)

$10.7

$26.1

$56.6

Net income (loss) % of net sales

(0.3%)

5.1%

3.1%

6.2%

Adjusted EBITDA*

$23.3

$35.2

$118.7

$147.7

Adjusted EBITDA margin %*

12.1%

16.7%

14.3%

16.3%

Earnings (loss) per diluted share

($0.03)

$0.58

$1.40

$3.03

Adjusted earnings per diluted share*

$0.46

$0.98

$2.72

$3.78

*See appendix for reconciliation of adjusted measures to GAAP measures

Q4 2024 Revenue Results

Consolidated Revenue QoQ

($ in millions)

-8.9%

-8.6%

+0.3%

$210.3

$18.7

$0.6

$192.2

Q3'24

Volume

Currency

Q4'24

& Other*

*Volume & Other of $18.7 million represents change in volume, price and mix, excluding the impact of FX.

Note: Percentages and dollars may not add due to rounding

Revenue By Operating Segment QoQ**

($ in millions)

-8.7%

-8.4%

$112.2

$102.4

$94.2

$86.3

AES Q3'24

AES Q4'24

EMS Q3'24

EMS Q4'24

**"Other" business unit not included

Note: Percentages and dollars may not add due to rounding.

Disclaimer

Rogers Corporation published this content on February 19, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 19, 2025 at 22:33:34.901.