Business Wire | Jul 29, 2021 04:09PM EDT

Rogers Corporation Reports Second Quarter 2021 Results

Jul. 29, 2021

CHANDLER, Ariz.--(BUSINESS WIRE)--Jul. 29, 2021--Rogers Corporation (NYSE:ROG) today announced financial results for the second quarter of 2021.

"Rogers achieved continued sales improvement in the second quarter driven by growth in EV/HEV, clean energy and other strategic markets," stated Bruce D. Hoechner, Rogers' President and CEO. "Global supply chain challenges impacted our second quarter results more than anticipated and margins and earnings were below our prior guidance expectations. We are addressing these recent challenges as we continue to navigate this dynamic environment. We are executing on our market strategy and the outlook for Advanced Mobility remains robust, led by the accelerating transition to electric and hybrid electric vehicles. We continue to significantly increase our investments in new capacity and capabilities to capitalize on the growth opportunities across our market portfolio."

Financial Overview

GAAP Results Q2 2021 Q1 2021 Q2 2020

Net Sales ($M) $234.9 $229.3 $191.2

Gross Margin 38.2% 39.0% 36.6%

Operating Margin 15.2% 16.2% 11.0%

Net Income ($M) $28.7 $31.2 $14.5

Diluted Earnings Per Share $1.52 $1.66 $0.78

Non-GAAP Results^1 Q2 2021 Q1 2021 Q2 2020

Adjusted Operating Margin 17.4% 19.0% 15.4%

Adjusted Net Income ($M) $32.5 $36.0 $21.1

Adjusted Earnings Per Diluted Share $1.72 $1.92 $1.13

Adjusted EBITDA ($M) $55.8 $59.8 $42.5

Adjusted EBITDA Margin 23.8% 26.1% 22.2%

Free Cash Flow ($M) $11.9 $32.9 $39.3

Net Sales by Operating Segment (dollars in Q2 2021 Q1 2021 Q2 2020millions)

Advanced Electronics Solutions (AES)^2 $140.4 $131.9 $116.2

Elastomeric Material Solutions (EMS) $89.3 $91.8 $71.6

Other $5.1 $5.5 $3.4

1 - A reconciliation of GAAP to non-GAAP measures is provided in the schedulesincluded below

2 - The AES business segment was formed in the first quarter of 2021 throughthe combination of the Advanced Connectivity Solutions (ACS) and PowerElectronics Solutions (PES) businesses. Prior period consolidated financialstatements have been reclassified to conform to the current year presentation.

Q2 2021 Summary of Results

Net sales of $234.9 million increased 2.5% versus the prior quarter from higher sales in the AES business unit. AES net sales increased primarily due to strong demand for EV/HEV applications and higher clean energy, defense and wireless infrastructure market sales, partially offset by a decline in sales for ADAS applications. Demand remained strong in the EMS business, but net sales decreased compared to the prior quarter primarily due to lower production levels from supply constraints and the previously announced disruption to the Company's manufacturing facility in South Korea. The lower production levels contributed to the decline in portable electronics market sales, and tempered growth in industrial market sales. EV/HEV sales declined slightly, compared to strong first quarter sales. Currency exchange rates unfavorably impacted total company net sales in the second quarter of 2021 by $0.8 million compared to prior quarter net sales.

Gross margin was 38.2%, compared to 39.0% in the prior quarter. The decrease in gross margin was primarily due to the impact of supply constraints, raw material price increases and unfavorable product mix, partially offset by higher volumes.

Selling, general and administrative (SG&A) expenses increased by $2.5 million from the prior quarter to $45.0 million. The increase in SG&A expense was due to higher performance based compensation costs and reinvestment initiatives.

GAAP operating margin of 15.2% decreased by 100 basis points from the prior quarter primarily due to lower gross margin and higher SG&A expenses, partially offset by lower restructuring charges. Adjusted operating margin of 17.4% decreased by 160 basis points versus the prior quarter.

GAAP earnings per diluted share were $1.52, compared to earnings per diluted share of $1.66 in the previous quarter. The decrease in GAAP earnings primarily resulted from lower operating income and other income, partially offset by lower tax expense. On an adjusted basis, earnings were $1.72 per diluted share compared to adjusted earnings of $1.92 per diluted share in the prior quarter.

Ending cash and cash equivalents were $203.9 million, an increase of $4.8 million versus the prior quarter. The Company generated free cash flow of approximately $11.9 million in the second quarter of 2021. Net cash provided by operating activities of $29.7 million was offset by $4.0 million of principal payments made on the remaining outstanding borrowings under the Company's revolving credit facility and capital expenditures of $17.8 million.

Financial Outlook

Q3 2021

Net Sales ($M) $235 to $245

Gross Margin 38.5% to 39.5%

Earnings Per Share $1.50 to $1.65

Adjusted Earnings Per Share1 $1.70 to $1.85

2021

Effective Tax Rate 24% - 25%

Capital Expenditures ($M) $70 to $80



1 - A reconciliation of GAAP to non-GAAP measures is provided in the schedulesincluded below

About Rogers CorporationRogers Corporation (NYSE:ROG) is a global leader in engineered materials to power, protect and connect our world. Rogers delivers innovative solutions to help our customers solve their toughest material challenges. Rogers' advanced electronic and elastomeric materials are used in applications for EV/HEV, automotive safety and radar systems, mobile devices, renewable energy, wireless infrastructure, energy-efficient motor drives, industrial equipment and more. Headquartered in Chandler, Arizona, Rogers operates manufacturing facilities in the United States, Asia and Europe, with sales offices worldwide.

Safe Harbor StatementThis release 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 expansions, business trends and other information that is not historical information. All forward-looking statements are based upon information available to us on the date of this release and are subject to risks, uncertainties and other factors, many of which are outside of our control, which could cause actual results to differ materially from those indicated by the forward-looking statements. Risks and uncertainties that could cause such results to differ include: the duration and impacts of the novel coronavirus global pandemic and efforts to contain its transmission and distribute vaccines, including the effect of these factors on our business, suppliers, customers, end users and economic conditions generally; failure to capitalize on, volatility within, or other adverse changes with respect to the Company's growth drivers, including advanced mobility and advanced connectivity, such as delays in adoption or implementation of new technologies; uncertain business, economic and political conditions in the United States (U.S.) and abroad, particularly in China, South Korea, Germany, Hungary and Belgium, where we maintain significant manufacturing, sales or administrative operations; the trade policy dynamics between the U.S. and China reflected in trade agreement negotiations and the imposition of tariffs and other trade restrictions, including trade restrictions on Huawei Technologies Co., Ltd. (Huawei); fluctuations in foreign currency exchange rates; our ability to develop innovative products and the extent to which our products are incorporated into end-user products and systems and the extent to which end-user products and systems incorporating our products achieve commercial success; the ability and willingness of our sole or limited source suppliers to deliver certain key raw materials, including commodities, to us in a timely and cost-effective manner; intense global competition affecting both our existing products and products currently under development; business interruptions due to catastrophes or other similar events, such as natural disasters, war, terrorism or public health crises; failure to realize, or delays in the realization of anticipated benefits of acquisitions and divestitures due to, among other things, the existence of unknown liabilities or difficulty integrating acquired businesses; our ability to attract and retain management and skilled technical personnel; our ability to protect our proprietary technology from infringement by third parties and/or allegations that our technology infringes third party rights; changes in effective tax rates or tax laws and regulations in the jurisdictions in which we operate; failure to comply with financial and restrictive covenants in our credit agreement or restrictions on our operational and financial flexibility due to such covenants; the outcome of ongoing and future litigation, including our asbestos-related product liability litigation; changes in environmental laws and regulations applicable to our business; and disruptions in, or breaches of, our information technology systems. For additional information about the risks, uncertainties and other factors that may affect our business, please see our most recent annual report on Form 10-K and any subsequent reports filed with the Securities and Exchange Commission, including quarterly reports on Form 10-Q. Rogers Corporation assumes no responsibility to update any forward-looking statements contained herein except as required by law.

Conference call and additional information

A conference call to discuss the results for the second quarter of 2021 will take place today, Thursday, July 29, 2021 at 5pm ET.

A live webcast of the event and the accompanying presentation can be accessed on the Rogers Corporation website at https://www.rogerscorp.com/investors.

An audio replay of the conference call will be available from July 29, 2021 at approximately 8 pm ET through August 5, 2021 at 11:59 pm ET, by dialing 1-888-203-1112 from the United States, and entering the replay passcode of 9771089.

Additionally, the archived webcast will be available on the Rogers website at approximately 8 pm ET on July 29, 2021.

Additional informationPlease contact the Company directly via email or visit the Rogers website.

(Financial statements follow)

Condensed Consolidated Statements of Operations (Unaudited)

Three Months Ended Six Months Ended

(DOLLARS AND SHARES IN June 30, June 30, June 30, June 30,THOUSANDS, EXCEPT PER 2021 2020 2021 2020SHARE AMOUNTS)

Net sales $ 234,906 $ 191,157 $ 464,171 $ 389,967

Cost of sales 145,073 121,188 284,839 254,368

Gross margin 89,833 69,969 179,332 135,599



Selling, general and 44,959 41,694 87,372 82,024 administrative expenses

Research and development 7,492 7,295 14,664 15,100 expenses

Restructuring and 747 - 2,253 - impairment charges

Other operating (income) 890 (112 ) 2,105 (92 )expense, net

Operating income 35,745 21,092 72,938 38,567



Equity income inunconsolidated joint 1,930 1,022 4,111 2,240 ventures

Pension settlement - (55 ) - (55 )charges

Other income (expense), 1,239 634 4,207 (152 )net

Interest expense, net (404 ) (1,779 ) (1,011 ) (2,986 )

Income before income tax 38,510 20,914 80,245 37,614 expense

Income tax expense 9,855 6,394 20,372 9,835

Net income $ 28,655 $ 14,520 $ 59,873 $ 27,779



Basic earnings per share $ 1.53 $ 0.78 $ 3.20 $ 1.49



Diluted earnings per $ 1.52 $ 0.78 $ 3.18 $ 1.49 share



Shares used in computing:

Basic earnings per share 18,729 18,676 18,721 18,673

Diluted earnings per 18,846 18,681 18,810 18,686 share

Condensed Consolidated Statements of Financial Position (Unaudited)

(DOLLARS AND SHARES IN THOUSANDS, EXCEPT PAR VALUE)

June 30, 2021

December 31, 2020

Assets

Current assets

Cash and cash equivalents

$

203,945

$

191,785

Accounts receivable, less allowance for doubtful accounts of $1,319 and $1,682

157,471

134,421

Contract assets

30,285

26,575

Inventories

110,761

102,360

Prepaid income taxes

2,904

2,960

Asbestos-related insurance receivables, current portion

2,986

2,986

Other current assets

16,773

13,088

Total current assets

525,125

474,175

Property, plant and equipment, net of accumulated depreciation of $364 and $366

282,543

272,378

Investments in unconsolidated joint ventures

16,904

15,248

Deferred income taxes

25,986

28,667

Goodwill

267,192

270,172

Other intangible assets, net of amortization

111,404

118,026

Pension assets

5,694

5,278

Asbestos-related insurance receivables, non-current portion

63,807

63,807

Other long-term assets

14,821

16,254

Total assets

$

1,313,476

$

1,264,005

Liabilities and Shareholders' Equity

Current liabilities

Accounts payable

$

53,471

$

35,987

Accrued employee benefits and compensation

43,915

41,708

Accrued income taxes payable

5,177

8,558

Asbestos-related liabilities, current portion

3,615

3,615

Other accrued liabilities

20,844

21,641

Total current liabilities

127,022

111,509

Borrowings under revolving credit facility

-

25,000

Pension and other postretirement benefits liabilities

1,658

1,612

Asbestos-related liabilities, non-current portion

69,469

69,620

Non-current income tax

16,930

16,346

Deferred income taxes

9,537

8,375

Other long-term liabilities

12,198

10,788

Shareholders' equity

Capital stock - $1 par value; 50,000 authorized shares; 18,722 and 18,677 shares issued and outstanding

18,722

18,677

Additional paid-in capital

154,330

147,961

Retained earnings

933,565

873,692

Accumulated other comprehensive loss

(29,955

)

(19,575

)

Total shareholders' equity

1,076,662

1,020,755

Total liabilities and shareholders' equity

$

1,313,476

$

1,264,005

Reconciliation of non-GAAP financial measures to the comparable GAAP measures

Non-GAAP financial measures:

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

(1) Adjusted operating margin, which the Company defines as operating margin excluding acquisition-related amortization of intangible assets and discrete items, such as acquisition and related integration costs, environmental accrual adjustments, gains or losses on the sale or disposal of property, plant and equipment, restructuring, severance, impairment and other related costs, UTIS fire charges, and the related income tax effect on these items (collectively, "discreteitems");

(2) Adjusted net income, which the Company defines as net income excluding amortization of acquisition intangible assets and discrete items;

(3) Adjusted earnings per diluted share, which the Company defines as earnings per diluted share excluding amortization of acquisition intangible assets, and discrete items divided by adjusted weighted average shares outstanding - diluted;

(4) Adjusted EBITDA, which the Company defines as net income excluding interest expense, net, income tax expense, depreciation and amortization, stock-based compensation expense, and discrete items;

(5) Adjusted EBITDA Margin, which the Company defines as the percentage that results from dividing Adjusted EBITDA by total net sales;

(6) Free cash flow, which the Company defines as net cash provided by operating activities less non-acquisition capital expenditures.

Management believes adjusted operating margin, adjusted net income, adjusted earnings per diluted share, adjusted EBITDA and 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.

Condensed Consolidated Statements of Financial Position (Unaudited)

(DOLLARS AND SHARES IN THOUSANDS, EXCEPT PAR June 30, 2021 December 31,VALUE) 2020

Assets

Current assets

Cash and cash equivalents $ 203,945 $ 191,785

Accounts receivable, less allowance for doubtful 157,471 134,421 accounts of $1,319 and $1,682

Contract assets 30,285 26,575

Inventories 110,761 102,360

Prepaid income taxes 2,904 2,960

Asbestos-related insurance receivables, current 2,986 2,986 portion

Other current assets 16,773 13,088

Total current assets 525,125 474,175

Property, plant and equipment, net of accumulated 282,543 272,378depreciation of $364 and $366

Investments in unconsolidated joint ventures 16,904 15,248

Deferred income taxes 25,986 28,667

Goodwill 267,192 270,172

Other intangible assets, net of amortization 111,404 118,026

Pension assets 5,694 5,278

Asbestos-related insurance receivables, 63,807 63,807 non-current portion

Other long-term assets 14,821 16,254

Total assets $ 1,313,476 $ 1,264,005

Liabilities and Shareholders' Equity

Current liabilities

Accounts payable $ 53,471 $ 35,987

Accrued employee benefits and compensation 43,915 41,708

Accrued income taxes payable 5,177 8,558

Asbestos-related liabilities, current portion 3,615 3,615

Other accrued liabilities 20,844 21,641

Total current liabilities 127,022 111,509

Borrowings under revolving credit facility - 25,000

Pension and other postretirement benefits 1,658 1,612 liabilities

Asbestos-related liabilities, non-current portion 69,469 69,620

Non-current income tax 16,930 16,346

Deferred income taxes 9,537 8,375

Other long-term liabilities 12,198 10,788

Shareholders' equity

Capital stock - $1 par value; 50,000 authorizedshares; 18,722 and 18,677 shares issued and 18,722 18,677 outstanding

Additional paid-in capital 154,330 147,961

Retained earnings 933,565 873,692

Accumulated other comprehensive loss (29,955 ) (19,575 )

Total shareholders' equity 1,076,662 1,020,755

Total liabilities and shareholders' equity $ 1,313,476 $ 1,264,005

Reconciliation of non-GAAP financial measures to the comparable GAAP measures

Non-GAAP financial measures:

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

(1) Adjusted operating margin, which the Company defines as operating margin excluding acquisition-related amortization of intangible assets and discrete items, such as acquisition and related integration costs, environmental accrual adjustments, gains or losses on the sale or disposal of property, plant and equipment, restructuring, severance, impairment and other related costs, UTIS fire charges, and the related income tax effect on these items (collectively, "discreteitems");

(2) Adjusted net income, which the Company defines as net income excluding amortization of acquisition intangible assets and discrete items;

(3) Adjusted earnings per diluted share, which the Company defines as earnings per diluted share excluding amortization of acquisition intangible assets, and discrete items divided by adjusted weighted average shares outstanding - diluted;

(4) Adjusted EBITDA, which the Company defines as net income excluding interest expense, net, income tax expense, depreciation and amortization, stock-based compensation expense, and discrete items;

(5) Adjusted EBITDA Margin, which the Company defines as the percentage that results from dividing Adjusted EBITDA by total net sales;

(6) Free cash flow, which the Company defines as net cash provided by operating activities less non-acquisition capital expenditures.

Management believes adjusted operating margin, adjusted net income, adjusted earnings per diluted share, adjusted EBITDA and 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.

Reconciliation of GAAP operating margin to adjustedoperating margin*:

2021 2020

Operating margin Q2 Q1 Q2

GAAP operating margin 15.2 % 16.2 % 11.0 %

Acquisition and related integration costs - % - % 0.2 %

Environmental accrual adjustment - % - % (0.1 )%

Gain on sale or disposal of property, plant and equipment (0.3 )% - % - %

Restructuring, severance, impairment and other related 0.4 % 0.8 % 0.3 %costs

UTIS fire charges 0.6 % 0.6 % - %

Total discrete items 0.8 % 1.4 % 0.5 %

Operating margin adjusted for discrete items 16.0 % 17.6 % 11.5 %

Acquisition intangible amortization 1.3 % 1.4 % 3.9 %

Adjusted operating margin 17.4 % 19.0 % 15.4 %

*Percentages in table may not add due to rounding.

Reconciliation of GAAP net income to adjusted net income:(amounts in millions)

2021

2020

Net income

Q2

Q1

Q2

GAAP net income

$

28.7

$

31.2

$

14.5

Acquisition and related integration costs

$

-

$

-

$

0.4

Environmental accrual adjustment

$

-

$

-

$

(0.2

)

Gain on sale or disposal of property, plant and equipment

$

(0.6

)

$

(0.1

)

$

0.1

Restructuring, severance, impairment and other related costs

$

1.0

$

1.9

$

0.6

Acquisition intangible amortization

$

3.1

$

3.1

$

7.5

UTIS fire charges

$

1.5

$

1.3

$

-

Income tax effect of non-GAAP adjustments and intangible amortization

$

(1.2

)

$

(1.5

)

$

(1.9

)

Adjusted net income

$

32.5

$

36.0

$

21.1

*Values in table may not add due to rounding.

Reconciliation of GAAP net income to adjusted netincome:(amounts in millions) 2021 2020

Net income Q2 Q1 Q2

GAAP net income $ 28.7 $ 31.2 $ 14.5

Acquisition and related integration costs $ - $ - $ 0.4

Environmental accrual adjustment $ - $ - $ (0.2 )

Gain on sale or disposal of property, plant and $ (0.6 ) $ (0.1 ) $ 0.1 equipment

Restructuring, severance, impairment and other $ 1.0 $ 1.9 $ 0.6 related costs

Acquisition intangible amortization $ 3.1 $ 3.1 $ 7.5

UTIS fire charges $ 1.5 $ 1.3 $ -

Income tax effect of non-GAAP adjustments and $ (1.2 ) $ (1.5 ) $ (1.9 )intangible amortization

Adjusted net income $ 32.5 $ 36.0 $ 21.1

*Values in table may not add due to rounding.

Reconciliation of GAAP earnings per diluted share to adjusted earnings per diluted share*:2021

2020

Earnings per diluted share

Q2

Q1

Q2

GAAP earnings per diluted share

$

1.52

$

1.66

$

0.78

Acquisition and related integration costs

-

-

0.02

Environmental accrual adjustment

-

-

(0.01

)

Gain on sale or disposal of property, plant and equipment

(0.02

)

-

-

Restructuring, severance, impairment and other related costs

0.04

0.08

0.02

UTIS fire charges

0.06

0.05

-

Total discrete items

$

0.08

$

0.13

$

0.04

Earnings per diluted share adjusted for discrete items

$

1.60

$

1.79

$

0.82

Acquisition intangible amortization

$

0.13

$

0.13

$

0.31

Adjusted earnings per diluted share

$

1.72

$

1.92

$

1.13

*Values in table may not add due to rounding.

Reconciliation of GAAP earnings per diluted shareto adjusted earnings per diluted share*: 2021 2020

Earnings per diluted share Q2 Q1 Q2

GAAP earnings per diluted share $ 1.52 $ 1.66 $ 0.78

Acquisition and related integration costs - - 0.02

Environmental accrual adjustment - - (0.01 )

Gain on sale or disposal of property, plant and (0.02 ) - - equipment

Restructuring, severance, impairment and other 0.04 0.08 0.02 related costs

UTIS fire charges 0.06 0.05 -

Total discrete items $ 0.08 $ 0.13 $ 0.04

Earnings per diluted share adjusted for discrete $ 1.60 $ 1.79 $ 0.82 items

Acquisition intangible amortization $ 0.13 $ 0.13 $ 0.31



Adjusted earnings per diluted share $ 1.72 $ 1.92 $ 1.13

*Values in table may not add due to rounding.

Reconciliation of GAAP net income to adjusted EBITDA*:

2021

2020

(amounts in millions)

Q2

Q1

Q2

GAAP Net income

$

28.7

$

31.2

$

14.5

Interest expense, net

0.4

0.6

1.8

Income tax expense

9.9

10.5

6.4

Depreciation

7.5

7.2

7.4

Amortization

3.1

3.1

7.6

Stock-based compensation expense

4.4

4.0

3.9

Acquisition and related integration costs

-

-

0.4

Environmental accrual adjustment

-

-

(0.2

)

Gain on sale or disposal of property, plant and equipment

(0.6

)

(0.1

)

0.1

Restructuring, severance, impairment and other related costs

0.9

1.9

0.6

UTIS fire charges

1.5

1.3

-

Adjusted EBITDA

$

55.8

$

59.8

$

42.5

*Values in table may not add due to rounding.

Reconciliation of GAAP net income to adjustedEBITDA*:

2021 2020

(amounts in millions) Q2 Q1 Q2

GAAP Net income $ 28.7 $ 31.2 $ 14.5

Interest expense, net 0.4 0.6 1.8

Income tax expense 9.9 10.5 6.4

Depreciation 7.5 7.2 7.4

Amortization 3.1 3.1 7.6

Stock-based compensation expense 4.4 4.0 3.9

Acquisition and related integration costs - - 0.4

Environmental accrual adjustment - - (0.2 )

Gain on sale or disposal of property, plant and (0.6 ) (0.1 ) 0.1 equipment

Restructuring, severance, impairment and other 0.9 1.9 0.6 related costs

UTIS fire charges 1.5 1.3 -

Adjusted EBITDA $ 55.8 $ 59.8 $ 42.5

*Values in table may not add due to rounding.

Calculation of adjusted EBITDA margin*:2021

2020

Q2

Q1

Q2

Adjusted EBITDA (in millions)

$

55.8

$

59.8

$

42.5

Divided by Total Net Sales (in millions)

234.9

229.3

191.2

Adjusted EBITDA Margin

23.8

%

26.1

%

22.2

%

*Values in table may not add due to rounding

Calculation of adjusted EBITDA margin*: 2021 2020

Q2 Q1 Q2

Adjusted EBITDA (in millions) $ 55.8 $ 59.8 $ 42.5

Divided by Total Net Sales (in millions) 234.9 229.3 191.2

Adjusted EBITDA Margin 23.8 % 26.1 % 22.2 %

*Values in table may not add due to rounding

Reconciliation of net cash provided by operating activities to free cash flow*:

2021

2020

(amounts in millions)

Q2

Q1

Q2

Net cash provided by operating activities

$

29.7

$

36.5

$

46.3

Non-acquisition capital expenditures

(17.8

)

(3.6

)

(7.0

)

Free cash flow

$

11.9

$

32.9

$

39.3

*Values in table may not add due to rounding.

Reconciliation of net cash provided by operating activities to free cash flow*:

2021 2020

(amounts in millions) Q2 Q1 Q2

Net cash provided by operating activities $ 29.7 $ 36.5 $ 46.3

Non-acquisition capital expenditures (17.8 ) (3.6 ) (7.0 )

Free cash flow $ 11.9 $ 32.9 $ 39.3

*Values in table may not add due to rounding.

Reconciliation of GAAP earnings per diluted share to adjusted earnings per diluted share guidance for the 2021 second quarter:

Guidance Q2 2021

GAAP earnings per diluted share

$1.58 - $1.73

Discrete items

$0.09

Acquisition intangible amortization

$0.13

Adjusted earnings per diluted share

$1.80 - $1.95

Reconciliation of GAAP earnings per diluted share to adjusted earningsper diluted share guidance for the 2021 second quarter:

Guidance Q2 2021

GAAP earnings per diluted share $1.58 - $1.73

Discrete items $0.09

Acquisition intangible amortization $0.13

Adjusted earnings per diluted share $1.80 - $1.95

Reconciliation of GAAP earnings per diluted share to adjusted earnings per diluted share guidance for the third quarter of 2021:

Guidance Q3 2021

GAAP earnings per diluted share

$1.50 - $1.65

Discrete items

$0.07

Acquisition intangible amortization

$0.13

Adjusted earnings per diluted share

$1.70 - $1.85

View source version on businesswire.com: https://www.businesswire.com/news/home/20210729006069/en/

CONTACT: Investor contact: Steve Haymore Phone: 480-917-6026 Email: stephen.haymore@rogerscorporation.com

CONTACT: Website address: http://www.rogerscorp.com