Operating Performance Drives Further Gross Margin and Earnings Improvement
CHANDLER, Ariz. — (BUSINESS WIRE) — October 26, 2023 — Rogers Corporation (NYSE: ROG) today announced financial results for the third quarter of 2023.
"We continued our strong operating performance in the third quarter as we increased gross margin to over 35%, which drove stronger earnings and operating cash flow," stated Colin Gouveia, Rogers' President and CEO. "This marks the third consecutive quarter of gross margin improvement and delivers on the margin commitments we made previously. We are pleased with our progress thus far and remain committed to further improving our cost structure with our operational excellence initiatives. Third quarter sales were nearly flat compared to the prior quarter as global economic conditions remained challenging and customer inventory destocking continued. We are pleased with the strong progress we have made so far this year. We have significantly improved our margin and cost structure, bolstered the organization with new talent, secured important design wins, and are moving forward with targeted investments in fast growing markets."
Financial Overview
GAAP Results |
Q3 2023 |
Q2 2023 |
Q3 2022 |
Net Sales ($M) |
$229.1 |
$230.8 |
$247.2 |
Gross Margin |
35.1% |
34.5% |
31.6% |
Operating Margin |
11.8% |
12.1% |
7.5% |
Net Income (Loss) ($M) |
$19.0 |
$17.9 |
$14.8 |
Net Income (Loss) Margin |
8.3% |
7.7% |
6.0% |
Diluted Earnings Per Share |
$1.02 |
$0.96 |
$0.78 |
Net Cash Provided by Operating Activities ($M) |
$42.0 |
$15.7 |
$13.5 |
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|
Non-GAAP Results1 |
Q3 2023 |
Q2 2023 |
Q3 2022 |
Adjusted Operating Margin |
14.3% |
13.4% |
10.8% |
Adjusted Net Income ($M) |
$23.2 |
$20.0 |
$21.2 |
Adjusted Earnings Per Diluted Share |
$1.24 |
$1.07 |
$1.11 |
Adjusted EBITDA ($M) |
$45.4 |
$43.7 |
$39.7 |
Adjusted EBITDA Margin |
19.8% |
18.9% |
16.0% |
Free Cash Flow ($M) |
$35.3 |
$4.2 |
$(20.3) |
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|
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| Net Sales by Operating Segment (dollars in millions) |
Q3 2023 |
Q2 2023 |
Q3 2022 |
| Advanced Electronics Solutions (AES) |
$126.4 |
$130.2 |
$130.6 |
| Elastomeric Material Solutions (EMS) |
$98.0 |
$95.3 |
$111.0 |
| Other |
$4.8 |
$5.3 |
$5.6 |
| 1 - A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below |
