ROP
$233.83
Roper Industries
$.41
.18%
Earnings Details
1st Quarter March 2017
Friday, April 28, 2017 6:55:14 AM
Tweet Share Watch
Summary

Roper Technologies Raises Guidance, but Remains In-line with Estimates

Roper Industries (ROP) reported 1st Quarter March 2017 earnings of $2.11 per share on revenue of $1.1 billion. The consensus earnings estimate was $2.00 per share on revenue of $1.1 billion. Revenue grew 20.4% on a year-over-year basis.

The company said it expects second quarter earnings of $2.16 to $2.24 per share and 2017 earnings of $8.98 to $9.28 per share. The company's previous guidance was 2017 earnings of $8.82 to $9.22 per share. The current consensus earnings estimate is $2.24 per share for the quarter ending June 30, 2017 and $9.06 per share for the year ending December 31, 2017.

Roper Industries Inc designs, manufactures and distributes energy systems and controls, scientific and industrial imaging products and software, industrial technology products and radio frequency products and services.

Results
Reported Earnings
$2.11
Earnings Whisper
-
Consensus Estimate
$2.00
Reported Revenue
$1.09 Bil
Revenue Estimate
$1.09 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Roper Technologies Announces First Quarter Results

GAAP Revenue Increased 20%; Adjusted Revenue Increased 22%

Operating Cash Flow Increased to $378 Million

Roper Technologies, Inc. (ROP), a diversified technology company, reported financial results for the first quarter ended March 31, 2017.

Roper reports results - including revenue, operating margin, net income and diluted earnings per share - on a GAAP basis and an adjusted basis.

First quarter GAAP revenue increased 20% to $1.09 billion and adjusted revenue grew 22% to $1.11 billion. GAAP diluted earnings per share (DEPS) were $1.53 (+3%), while adjusted diluted earnings per share increased 17% to $2.11.

GAAP gross margin was 61.5% while adjusted gross margin was 62.2%. Operating cash flow increased to $378 million and adjusted EBITDA increased 18% to $362 million.

"Our businesses performed exceptionally well in the first quarter," said Brian Jellison, Roper’s Chairman, President and CEO. "Our significant revenue increase included 5% organic growth, as our software and medical businesses continued their strong performance and we benefited from improvement in industrial and energy markets. Growth was broad-based as revenue in each of our four segments increased organically in the quarter."

"Our cash flow performance was outstanding in the quarter with significant contributions from our recent application software acquisitions, Deltek and ConstructConnect, as well as strong execution across the enterprise. We are very pleased by our great start to 2017," concluded Mr. Jellison.

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">2017 Guidance</span>

Roper is raising its full year 2017 guidance. The Company now expects full year Adjusted DEPS of $8.98 - $9.28, compared to previous guidance of $8.82 - $9.22.

For the second quarter of 2017, the Company expects Adjusted DEPS to be between $2.16 and $2.24.

The Company’s guidance excludes the impact of future acquisitions or divestitures.

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">Conference Call to be Held at 8:30 AM (ET) Today</span>

A conference call to discuss these results has been scheduled for 8:30 AM ET on Friday, April 28, 2017. The call can be accessed via webcast or by dialing +1 877-857-6149 (US/Canada) or +1 719-325-4845, using confirmation code 4090618. 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 http://edge.media-server.com/m/p/skmkjsqe. Telephonic replays will be available for up to two weeks and can be accessed by using the following registration URL https://event.replay with access code 4090618.

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 ($M)

Q1 2017
Q1 2016
V %
GAAP Revenue
$
1,086
$
902
20
%
Purchase accounting adjustment to
22
3
acquired deferred revenue
Rounding
1
Adjusted Revenue
$
1,108
$
906
22
%
Components of Adjusted Revenue Growth
Organic
5
%
Acquisitions
+18 %
Foreign Exchange
(1
%)
Total Adjusted Revenue Growth
22
%

Table 2: Reconciliation of Q1 2017 GAAP DEPS to Adjusted DEPS

Q1 2017
Q1 2016
GAAP Diluted Earnings Per Share (DEPS)
$
1.53
$
1.48
Purchase accounting adjustment to acquired deferred
0.14
0.02
revenue
Purchase accounting adjustment for commission
(0.01 )
-
expense
Acquisition-related inventory step-up charge
-
0.00
Amortization of Acquisition-related intangible assets,
0.45
0.31
after tax
Adjusted DEPS
$
2.11
$
1.81

Table 3: Q1 Free Cash Flow Reconciliation ($M)

Q1 2017
Q1 2016
V %
GAAP Operating Cash Flow
$
378
$
207
+ 83 %
Cash taxes related to 2015 sale of Abel
37
Pump
Rounding
1
Adjusted Operating Cash Flow
$
378
$
245
+ 55 %
Capital expenditures
(15 )
(9
)
Capitalized software expenditures
(3
)
(1
)
Rounding
-
(1
)
Adjusted Free Cash Flow
$
360
$
234
+ 54 %

Table 4: Adjusted Gross Margin Reconciliation ($M)

Q1 2017
Q1 2016
V Bps
GAAP Revenue
$
1,086
$
902
Purchase accounting adjustment to
22
3
acquired deferred revenue
Rounding
1
Adjusted Revenue
$
1,108
$
906
GAAP Gross Profit
$
668
$
560
Purchase accounting adjustment to
22
3
acquired deferred revenue
Rounding
(1
)
Adjusted Gross Profit
$
689
$
563
GAAP Gross Margin
61.5
%
62.0 %
(50) bps
Adjusted Gross Margin
62.2
%
62.1 %
+ 10 bps

Table 5: Q1 EBITDA Reconciliation ($M)

Q1 2017
Q1 2016
V%
GAAP Revenue
$
1,086
$
902
Purchase accounting adjustment to acquired deferred
22
3
revenue
Rounding
1
Adjusted Revenue
$
1,108
$
906
GAAP Net Earnings
$
158
$
151
Taxes
53
66
Interest expense
46
27
Depreciation
12
10
Amortization
73
50
Purchase accounting adjustment to acquired deferred
22
3
revenue, pretax
Purchase accounting adjustment for commission
(2
)
expense, pretax
Acquisition-related inventory step-up charge, pretax
-
0
Rounding
-
-
Adjusted EBITDA
$
362
$
307
+18 %
% of Adjusted Revenue
32.7
%
34.0 %

Table 6: Forecasted Diluted Earnings Per Share (DEPS)

Q2 2017
Full Year 2017
Low End
High End
Low End
High End
GAAP DEPS
$
1.62
$
1.70
$
6.86
$
7.16
Purchase accounting adjustments to
0.09
0.09
0.32
0.32
acquired deferred revenue and
commissions
Amortization of acquisition-related
0.45
0.45
1.80
1.80
intangible assets, after-tax
Adjusted DEPS
$
2.16
$
2.24
$
8.98
$
9.28

A Acquisition-related fair value adjustments to deferred revenue related to the acquisitions of CliniSys ($0.0M pretax, $0.0M after-tax), ConstructConnect ($5.3M pretax, $3.4M after-tax) and Deltek ($16.3M pretax, $10.6M after-tax).

B Acquisition-related fair value adjustments to deferred revenue related to the acquisitions of Strata ($0.2M pretax, $0.1M after-tax), Softwriters ($0.0M pretax, $0.0M after-tax), Data Innovations ($0.7M pre-tax, $0.4M after-tax), On Center Software ($0.4M pretax, $0.3M after-tax), Aderant ($1.8M pretax, $1.2M after-tax), Atlas Medical ($0.1M pretax, $0.0M after-tax) and CliniSys ($0.1M pretax, $0.1M after-tax)

C Purchase Accounting Adjustment for Commission Expense related to the acquisition of Deltek ($1.8M pretax, $1.2M after-tax),

D Acquisition-related inventory step-up charge related to the acquisition of PCI Medical ($0.1M pretax, $0.1M after-tax)

E Forecasted acquisition-related fair value adjustments to acquired deferred revenue and commissions of ConstructConnect and Deltek, as shown below ($M, except per share data)

Q2 2017
FY 2017
Pretax
$
15
$
51
After-tax
$
10
$
33
Per Share
$
0.09
$
0.32

F Actual results and forecast of estimated amortization of acquisition-related intangible assets ($M); For comparison purposes, prior period amounts are also shown below. Tax Rate of 35% applied to amortization in all periods.

Q1 2016A
Q2 2016A
FY 2016A
Q1 2017A
Q2 2017E
FY 2017E
Pretax
$
49
$
50
$
201
$
72
$
72
$
286
After-tax
$
32
$
32
$
131
$
47
$
47
$
186
Per share
$
0.31
$
0.31
$
1.27
$
0.45
$
0.45
$
1.80

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 may 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," "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, 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, 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
2017
2016
CURRENT ASSETS:
Cash and cash equivalents
$
730,666
$
757,200
Accounts receivable
549,838
619,854
Inventories
191,426
181,952
Unbilled receivable
143,589
129,965
Other current assets
97,104
87,530
Total current assets
1,712,623
1,776,501
PROPERTY, PLANT AND EQUIPMENT, NET
144,113
141,318
OTHER ASSETS:
Goodwill and other intangible assets, net
12,268,952
12,302,985
Deferred taxes
30,300
30,620
Other assets
74,066
73,503
Total other assets
12,373,318
12,407,108
TOTAL ASSETS
$
14,230,054
$
14,324,927
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
152,638
$
152,067
Accrued compensation
131,584
161,730
Deferred revenue
513,820
488,399
Other accrued liabilities
251,298
219,339
Income taxes payable
88,126
22,762
Current portion of long-term debt
401,072
400,975
Total current liabilities
1,538,538
1,445,272
NONCURRENT LIABILITIES:
Long-term debt
5,439,700
5,808,561
Deferred taxes
1,169,151
1,178,205
Other liabilities
111,875
104,024
Total liabilities
8,259,264
8,536,062
STOCKHOLDERS’ EQUITY:
Common stock
1,039
1,036
Additional paid-in capital
1,518,213
1,489,067
Retained earnings
4,764,711
4,642,402
Accumulated other comprehensive earnings
(294,327
)
(324,739
)
Treasury stock
(18,846
)
(18,901
)
Total stockholders’ equity
5,970,790
5,788,865
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $
14,230,054
$
14,324,927
Roper Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (unaudited)
(Amounts in thousands, except per share data)
Three months ended
March 31,
2017
2016
Net sales
$
1,086,305
$
902,423
Cost of sales
418,691
342,904
Gross profit
667,614
559,519
Selling, general and administrative expenses
409,358
314,528
Income from operations
258,256
244,991
Interest expense
45,865
27,413
Other expense
(1,047
)
(129
)
Earnings from continuing operations before income taxes
211,344
217,449
Income taxes
53,273
66,033
Net Earnings
$
158,071
$
151,416
Earnings per share:
Basic
$
1.55
$
1.50
Diluted
$
1.53
$
1.48
Weighted average common and common equivalent shares outstanding:
Basic
101,885
101,071
Diluted
103,078
102,318
Roper Technologies, Inc. and Subsidiaries
Selected Segment Financial Data (unaudited)
(Amounts in thousands and percents of net sales)
Three months ended March 31,
2017
2016
Amount
%
Amount
%
Net sales:
Medical & Scientific Imaging
$
348,235
$
332,214
RF Technology
429,619
280,210
Industrial Technology
183,404
171,235
Energy Systems & Controls
125,047
118,764
Total
$
1,086,305
$
902,423
Gross profit:
Medical & Scientific Imaging
$
251,930
72.3
%
$
246,897
74.3
%
RF Technology
251,478
58.5
%
160,365
57.2
%
Industrial Technology
93,151
50.8
%
86,020
50.2
%
Energy Systems & Controls
71,055
56.8
%
66,237
55.8
%
Total
$
667,614
61.5
%
$
559,519
62.0
%
Operating profit*:
Medical & Scientific Imaging
$
119,793
34.4
%
$
114,456
34.5
%
RF Technology
88,984
20.7
%
88,766
31.7
%
Industrial Technology
53,613
29.2
%
46,759
27.3
%
Energy Systems & Controls
30,236
24.2
%
24,182
20.4
%
Total
$
292,626
26.9
%
$
274,163
30.4
%
Net Orders:
Medical & Scientific Imaging
$
350,777
$
343,850
RF Technology
441,289
281,125
Industrial Technology
195,316
178,905
Energy Systems & Controls
126,727
122,770
Total
$
1,114,109
$
926,650
*
Operating profit is before unallocated corporate general and administrative expenses.
These expenses were $34,370 and $29,172 for the three months ended March 31, 2017 and 2016, respectively.
Roper Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(Amounts in thousands)
Three months ended
March 31,
2017
2016
Net earnings
$
158,071
$
151,416
Non-cash items:
Depreciation
12,377
9,702
Amortization
72,998
49,549
Stock-based compensation expense
21,049
18,979
Income taxes
39,013
20,127
Changes in assets and liabilities:
Receivables
59,536
(14,059
)
Inventory
(7,905
)
(3,907
)
Accounts payable
(2,009
)
(1,273
)
Accrued liabilities
34,094
(18,458
)
Other, net
(9,007
)
(5,004
)
Cash provided by operating activities
378,217
207,072
Business acquisitions, net of cash acquired
(2,829
)
(265,248 )
Capital expenditures
(14,930
)
(9,489
)
Capitalized software expenditures
(3,169
)
(665
)
Other, net
(391
)
1,446
Cash used in investing activities
(21,319
)
(273,956 )
Principal debt payments
-
(289
)
Revolver payments, net
(370,000 )
(160,000 )
Dividends
(35,443
)
(30,173
)
Proceeds from stock-based compensation, net
7,576
690
Premium on convertible debt conversions
-
(915
)
Other, net
782
505
Cash used in financing activities
(397,085 )
(190,182 )
Effect of exchange rate changes on cash
13,653
1,588
Net decrease in cash and equivalents
(26,534
)
(255,478 )
Cash and equivalents, beginning of period
757,200
778,511
Cash and equivalents, end of period
730,666
523,033
Contact Information:
Investor Relations
941-556-2601
investor-relations@ropertech.com

https://resource.globenewswire.com/Resource/Download/cf8af8cb-bc76-438d-87ee-db22ade4829f?size=1

<img src="http://www.globenewswire.com/newsroom/ti?ndecode=MTUwIzY3NDYyNTA=" alt="" width="1" height="1"/>