EX-99.1 2 exhibit.htm
 


Contact Information:
Investor Relations
941-556-2601
investor-relations@ropertech.com
Roper Technologies, Inc.





Roper Technologies Announces First Quarter Results

GAAP DEPS of $1.48; Adjusted DEPS of $1.50
Orders Increased 9% to Record $927 Million


Sarasota, Florida, April 25, 2016 ... Roper Technologies, Inc. (NYSE: ROP) reported financial results for the first quarter ended March 31, 2016.

Roper reports results, including revenue, operating margin, net income and diluted earnings per share, on a GAAP and adjusted basis.  Adjusted measures are reconciled to the corresponding GAAP measures at the end of this release.

First quarter GAAP revenue increased 4% to $902 million and adjusted revenue grew 4% to $906 million.  GAAP diluted earnings per share (DEPS) were $1.48 and adjusted DEPS were $1.50.  Orders increased 9% in the quarter and backlog increased 7% to a record $1.12 billion.

GAAP gross margin increased to 62.0% and adjusted gross margin increased 210 basis points to 62.1%.  EBITDA increased 4% to $307 million.  Operating cash flow was $207 million, which included tax payments associated with the gain on the divestiture of Abel Pump in the fourth quarter of 2015.  Excluding these tax payments, adjusted operating cash flow was $245 million and adjusted free cash flow was $235 million, representing 26% of revenue.

"We are very pleased with our performance in the quarter," said Brian Jellison, Roper's Chairman, President and CEO.  "Although energy markets were weak as expected, strong contributions from our software and medical products businesses resulted in record revenue for the quarter.  Our businesses continued to generate strong margin performance, with gross margin expansion in all four segments.  In addition, orders strengthened across the enterprise, with three segments recording a book-to-bill ratio of 1.03 or greater."

"During the quarter we completed the acquisition of Clinisys Group, Ltd., adding to our platform of software solutions for hospital laboratories," Mr. Jellison continued.  "In addition, we acquired PCI Medical, a provider of disinfection systems that complement our Civco Medical Solutions business.  Roper's pipeline of acquisition opportunities remains attractive and the Company expects to deploy over $1 billion in 2016."
 
 
2016 Guidance

Roper maintained its guidance for full year adjusted diluted earnings per share of $6.85 - $7.15.  The Company expects second quarter adjusted diluted earnings per share to be $1.56 - $1.61.  The Company's guidance excludes the impact of any future acquisitions or divestitures.




Use of Non-GAAP Financial Information

The Company supplements its consolidated financial statements presented on a GAAP basis with certain non-GAAP financial information to provide investors with greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making.  Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial schedules or tables.  The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated.





Table 1:  Revenue Growth Detail
   
2016
   
2015
     
V
%
Q1 GAAP Revenue
 
$
902.4
   
$
865.3
     
4.3
%
Add:  Purchase Accounting Adjustment to Acquired Deferred Revenue
   
3.3
     
1.9
         
Q1 Adjusted Revenue
 
$
905.7
   
$
867.2
     
4.4
%
                         
Components of Adjusted Revenue Growth
                       
Acquisitions
                   
9.6
%
Divestiture
                   
(1.0
%)
Organic
                   
(3.2
%)
Foreign Exchange
                   
(1.0
%)
Total Growth
                   
4.4
%

 
Table 2:  Reconciliation of Q1 2016 GAAP DEPS to Adjusted DEPS
     
Q1 2016
 
GAAP Diluted Earnings Per Share (DEPS)
 
$
1.48
 
Add:  Purchase Accounting Adjustment to Acquired Deferred Revenue
 
$
0.02
 
Add:  Acquisition-Related Inventory Step-up Charge
 
$
0.00
 
Adjusted DEPS
 
$
1.50
 

 
Table 3:  Q1 2016 Adjusted Gross Margin Reconciliation
   
2016
   
2015
 
V% / V Bps
Q1 GAAP Revenue
 
$
902.4
   
$
865.3
   
Add:  Purchase Accounting Adjustment to Acquired Deferred Revenue
   
3.3
     
1.9
   
Q1 Adjusted Revenue
 
$
905.7
   
$
867.2
   
                      
Q1 GAAP Gross Profit
 
$
559.5
   
$
518.2
   
Add:  Purchase Accounting Adjustment to Acquired Deferred Revenue
   
3.3
     
1.9
   
Add:  Acquisition-Related Inventory Step-up Charge
   
0.1
     
--
   
Adjusted Gross (B)
   
562.9
     
520.1
   
                      
GAAP Gross Margin
   
62.0
%
   
59.9
%
+210 bps
                      
Adjusted Gross Margin (B) / (A)
   
62.1
%
   
60.0
%
+210 bps
 

Table 4:  Q1 EBITDA Reconciliation
   
2016
   
2015
     
V
%
GAAP Net Earnings
 
$
151.4
   
$
155.8
         
Add:  Taxes
   
66.0
     
70.6
         
Add:  Amortization
   
49.5
     
38.4
         
Add:  Interest Expense
   
27.4
     
19.8
         
Add:  Depreciation
   
9.7
     
9.9
         
Add:  Purchase Accounting Adjustment to Acquired Deferred Revenue
   
3.3
     
1.9
         
Add:  Acquisition-Related Inventory Step-up Charge
   
0.1
     
--
         
Rounding
   
0.1
     
--
         
EBITDA
   
307.5
     
296.4
     
+4
%
 

Table 5:  Q1 Cash Flow Reconciliation
   
2016
 
GAAP Operating Cash Flow
 
$
207.1
 
Add:  Tax Related to 2015 Sale of Abel Pump
   
37.4
 
Adjusted Operating Cash Flow
 
$
244.5
 
Less:  Capital Expenditures
   
(9.5
)
Adjusted Free Cash Flow
 
$
235.0
 

 

Conference Call to be Held at 8:30 AM (ET) Today

A conference call to discuss these results has been scheduled for 8:30 AM ET on Monday, April 25, 2016.  The call can be accessed via webcast or by dialing +1 888-430-8694 (US/Canada) or +1 719-325-2315, using confirmation code 8649870.  Webcast information and conference call materials will be made available in the Investors section of Roper's website (www.ropertech.com) prior to the start of the call. The webcast can also be accessed directly by using the following URL https://www.webcaster4.com/Webcast/Page/866/14512 .  Telephonic replays will be available for up to two weeks and can be accessed by using the following registration URL https://jsp.premiereglobal.com/webrsvp/ with access code 8649870.
 

 
About Roper Technologies

Roper Technologies is a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices. Roper designs and develops software (both software-as-a-service and licensed), and engineered products and solutions for healthcare, transportation, food, energy, water, education and other niche markets worldwide. Additional information about Roper is available on the Company's website at www.ropertech.com.


The information provided in this press release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements include, among others, statements regarding operating results, the success of our internal operating plans, and the prospects for newly acquired businesses to be integrated and contribute to future growth, profit and cash flow expectations.  Forward-looking statements may be indicated by words or phrases such as "anticipate," "estimate," "plans," "expects," "projects," "should," "will," "believes" or "intends" and similar words and phrases.  These statements reflect management's current beliefs and are not guarantees of future performance.  They involve risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statement. Such risks and uncertainties include our ability to integrate acquisitions and realize expected synergies.  We also face other general risks, including our ability to realize cost savings from our operating initiatives, general economic conditions, unfavorable changes in foreign exchange rates, difficulties associated with exports, risks associated with our international operations, difficulties in making and integrating acquisitions, risks associated with newly acquired businesses, increased product liability and insurance costs, increased warranty exposure, future competition, changes in the supply of, or price for, parts and components, environmental compliance costs and liabilities, risks and cost associated with asbestos related litigation and potential write-offs of our substantial intangible assets, and risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products.  Important risks may be discussed in current and subsequent filings with the SEC.  You should not place undue reliance on any forward-looking statements.  These statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

# # #
 

 
 
             
             
Roper Technologies, Inc. and Subsidiaries
           
Condensed Consolidated Balance Sheets (unaudited)
           
(Amounts in thousands)
           
             
             
   
March 31,
   
December 31,
 
ASSETS
 
2016
   
2015
 
             
CURRENT ASSETS:
           
  Cash and cash equivalents
 
$
523,033
   
$
778,511
 
  Accounts receivable
   
514,616
     
488,271
 
  Inventories
   
196,321
     
189,868
 
  Unbilled receivable
   
120,746
     
122,042
 
  Other current assets
   
77,616
     
39,355
 
    Total current assets
   
1,432,332
     
1,618,047
 
                 
PROPERTY, PLANT AND EQUIPMENT, NET
   
106,212
     
105,510
 
                 
OTHER ASSETS:
               
  Goodwill
   
5,975,803
     
5,824,726
 
  Other intangible assets, net
   
2,622,157
     
2,528,996
 
  Deferred taxes
   
31,254
     
31,532
 
  Other assets
   
56,650
     
59,554
 
    Total other assets
   
8,685,864
     
8,444,808
 
                 
TOTAL ASSETS
 
$
10,224,408
   
$
10,168,365
 
                 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
                 
CURRENT LIABILITIES:
               
  Accounts payable
 
$
140,421
   
$
139,737
 
  Accrued compensation
   
91,288
     
119,511
 
  Deferred revenue
   
275,230
     
267,030
 
  Other accrued liabilities
   
185,305
     
168,513
 
  Income taxes payable
   
80,879
     
18,532
 
  Current portion of long-term debt
   
6,365
     
6,805
 
    Total current liabilities
   
779,488
     
720,128
 
                 
NONCURRENT LIABILITIES:
               
  Long-term debt
   
3,105,340
     
3,264,417
 
  Deferred taxes
   
826,425
     
810,856
 
  Other liabilities
   
71,920
     
74,017
 
    Total liabilities
   
4,783,173
     
4,869,418
 
                 
STOCKHOLDERS' EQUITY:
               
  Common stock
   
1,031
     
1,028
 
  Additional paid-in capital
   
1,438,695
     
1,419,262
 
  Retained earnings
   
4,231,589
     
4,110,530
 
  Accumulated other comprehensive earnings
   
(211,036
)
   
(212,779
)
  Treasury stock
   
(19,044
)
   
(19,094
)
    Total stockholders' equity
   
5,441,235
     
5,298,947
 
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
10,224,408
   
$
10,168,365
 
 
 
 

Roper Technologies, Inc. and Subsidiaries
           
Condensed Consolidated Statements of Earnings (unaudited)
       
(Amounts in thousands, except per share data)
       
             
             
   
Three months ended
 
   
March 31,
 
   
2016
   
2015
 
             
Net sales
 
$
902,423
   
$
865,281
 
Cost of sales
   
342,904
     
347,120
 
                 
Gross profit
   
559,519
     
518,161
 
                 
Selling, general and administrative expenses
   
314,528
     
271,265
 
                 
Income from operations
   
244,991
     
246,896
 
                 
Interest expense
   
27,413
     
19,836
 
Other expense
   
(129
)
   
(679
)
                 
Earnings from continuing operations before
               
   income taxes
   
217,449
     
226,381
 
                 
Income taxes
   
66,033
     
70,608
 
                 
Net Earnings
 
$
151,416
   
$
155,773
 
                 
                 
                 
                 
                 
Earnings per share:
               
  Basic
 
$
1.50
   
$
1.55
 
  Diluted
 
$
1.48
   
$
1.54
 
                 
Weighted average common and common
               
  equivalent shares outstanding:
               
    Basic
   
101,071
     
100,377
 
    Diluted
   
102,318
     
101,361
 
 
 
 

Roper Technologies, Inc. and Subsidiaries
                       
Selected Segment Financial Data (unaudited)
                       
(Amounts in thousands and percents of net sales)
                       
                         
                         
   
Three months ended March 31,
 
   
2016  
   
2015 
 
   
Amount
   
%
   
Amount
   
%
 
Net sales:
                       
  Medical & Scientific Imaging
 
$
332,214
         
$
291,700
       
  RF Technology
   
280,210
           
242,954
       
  Industrial Technology
   
171,235
           
190,728
       
  Energy Systems & Controls
   
118,764
           
139,899
       
    Total
 
$
902,423
         
$
865,281
       
                             
                             
Gross profit:
                           
  Medical & Scientific Imaging
 
$
246,897
     
74.3
%
 
$
215,326
     
73.8
%
  RF Technology
   
160,365
     
57.2
%
   
130,046
     
53.5
%
  Industrial Technology
   
86,020
     
50.2
%
   
95,242
     
49.9
%
  Energy Systems & Controls
   
66,237
     
55.8
%
   
77,547
     
55.4
%
    Total
 
$
559,519
     
62.0
%
 
$
518,161
     
59.9
%
                                 
                                 
Operating profit*:
                               
  Medical & Scientific Imaging
 
$
114,456
     
34.5
%
 
$
107,779
     
36.9
%
  RF Technology
   
88,766
     
31.7
%
   
73,977
     
30.4
%
  Industrial Technology
   
46,759
     
27.3
%
   
57,897
     
30.4
%
  Energy Systems & Controls
   
24,182
     
20.4
%
   
30,422
     
21.7
%
    Total
 
$
274,163
     
30.4
%
 
$
270,075
     
31.2
%
                                 
                                 
Net Orders:
                               
  Medical & Scientific Imaging
 
$
343,850
           
$
275,796
         
  RF Technology
   
281,125
             
253,127
         
  Industrial Technology
   
178,905
             
188,740
         
  Energy Systems & Controls
   
122,770
             
131,070
         
    Total
 
$
926,650
           
$
848,733
         
                                 
                                 
                                 
* Operating profit is before unallocated corporate general and administrative expenses. These expenses
 
were $29,172 and $23,179 for the three months ended March 31, 2016 and 2015, respectively.
         
 
 
 

Roper Technologies, Inc. and Subsidiaries
           
Condensed Consolidated Statements of Cash Flows (unaudited)
       
(Amounts in thousands)
           
             
             
   
Three months ended
 
   
March 31,
 
   
2016
   
2015
 
             
Net earnings
 
$
151,416
   
$
155,773
 
Non-cash items:
               
Depreciation
   
9,702
     
9,880
 
Amortization
   
49,549
     
38,428
 
Stock-based compensation expense
   
18,979
     
13,801
 
Income taxes
   
20,127
     
38,837
 
Changes in assets and liabilities:
               
Receivables
   
(14,059
)
   
9,262
 
Inventory
   
(3,907
)
   
(7,680
)
Accounts payable
   
(1,273
)
   
7,078
 
Accrued liabilities
   
(18,458
)
   
1,627
 
Other, net
   
(5,004
)
   
(6,607
)
  Cash provided by operating activities
   
207,072
     
260,399
 
                 
Business acquisitions, net of cash acquired
   
(265,248
)
   
(589,577
)
Capital expenditures
   
(9,489
)
   
(9,950
)
Other, net
   
781
     
(3,596
)
  Cash used in investing activities
   
(273,956
)
   
(603,123
)
                 
Principal debt payments
   
(289
)
   
(3,454
)
Revolver borrowings/(payments), net
   
(160,000
)
   
415,000
 
Dividends
   
(30,173
)
   
(25,024
)
Excess tax benefit from share-based payment*
   
-
     
4,093
 
Proceeds from stock-based compensation, net
   
690
     
6,267
 
Premium on convertible debt conversions
   
(915
)
   
(11,236
)
Other, net
   
505
     
498
 
  Cash provided by/(used in) financing activities
   
(190,182
)
   
386,144
 
                 
Effect of exchange rate changes on cash
   
1,588
     
(38,357
)
                 
Net increase/(decrease) in cash and equivalents
   
(255,478
)
   
5,063
 
Cash and equivalents, beginning of period
   
778,511
     
610,430
 
                 
Cash and equivalents, end of period
   
523,033
   
$
615,493
 
                 
*In the first quarter of 2016, the Company adopted ASU 2016-09, which requires excess
 
tax benefits to be classified along with other income tax cash flows as an operating activity.