EX-99 2 q305pressrel.htm EXHIBIT 99.1

Exhibit 99.1

Roper Industries, Inc.

Contact Information:
Investor Relations
+1 (770) 495-5100
investor-relations@roperind.com

FOR IMMEDIATE RELEASE

Roper Industries Reports Record Third Quarter Performance

Focus on Cash, Growth Produces Strong Results

Duluth, Georgia, October 27, 2005 ... Roper Industries, Inc. (NYSE: ROP) reported record results for the third quarter ended September 30, 2005.

The Company reported EBITDA of $89 million in its third quarter, 60% higher than the prior year comparable period, and EBITDA margins improved 110 basis points to 24.3%. Roper generated $75 million of cash flow from operating activities in the quarter, 109% greater than in the prior year. Diluted earnings per share (DEPS) were $0.45 in the quarter. DEPS performance and forecasts include the effect of a two-for-one split of the Company’s common stock in the form of a 100% stock dividend that was distributed on August 26.

“During the quarter, we achieved record orders, sales, cash flow and profits,” said Brian Jellison, Roper’s Chairman, President and CEO. “Our recent acquisitions – TransCore, Inovonics and CIVCO – are performing well and meeting our expectations. Our businesses created 7% internal growth in sales and orders in the quarter. We converted over 40% of our third quarter internal sales growth into income from operations, demonstrating our commitment to profitable growth and continuous improvement.”

Roper reported net sales of $365 million in the third quarter, 52% higher than the prior year period. These results reflect internal growth in most of the Company’s businesses as well as significant contributions from acquired businesses, including the first full quarter of performance from CIVCO, a supplier of diagnostic and therapeutic disposable medical products. The Company booked orders of $408 million in the third quarter, an increase of 64%, with strong performance reported in the Company’s newest segment, RF (radio frequency) Technology.

“In addition to another outstanding quarter with record results, year-to-date sales exceeded $1 billion for the first time in the Company’s history with the fourth quarter yet to come,” said Mr. Jellison. “Through the disciplined execution of our strategic growth program, we have positioned the enterprise in attractive markets with less cyclical risk, including RF, water, research/medical and after-market energy applications. With the excellent performance of our newest acquisitions, continued growth in our base businesses and operating margin improvement in all the businesses, we have raised our guidance for full year cash flow from operating activities by $15 million.”

The Company raised its full year minimum guidance for cash flow from operating activities from $225 million to $240 million, and also raised its full year DEPS guidance from $1.60-$1.675 to $1.64-$1.70.

Conference Call to be Held at 10:00 AM (ET) Tomorrow

A conference call to discuss these results has been scheduled for 10:00 AM ET on Friday, October 28, 2005. The call can be accessed via webcast or by dialing +1 (800) 289-0494 (US/Canada) or +1 (913) 981-5510, using access code 2384353. Webcast information and conference call materials will be made available in the “Investor Information” section of Roper’s website (www.roperind.com) prior to the start of the call. Telephonic replays will be available for up to two weeks by calling +1 (719) 457-0820 and using the access code 2384353.

Table 1: Net Sales (Millions)

Q3 2004
 Q3 2005
Net Sales as Reported     $ 240   $ 365  
Less: Net Sales from Acquisitions    --    (109 )
Internal Net Sales   $ 240   $ 256  

Table 2: Orders (Millions)

Q3 2004
 Q3 2005
Orders as Reported     $ 248   $ 408  
Less: Orders from Acquisitions    --    (141 )
Internal Orders   $ 248   $ 267  

Note to Tables 1&2: To compute internal sales and orders, the Company excludes results from business units not owned for the entire length of the comparative periods being presented.

Table 3: EBITDA (Millions)

Q3 2004
 Q3 2005
Net Earnings     $ 27   $ 39  
Add: Interest Expense    7    11  
Add: Income Taxes    11    20  
Add: Depreciation and Amortization    10    18  
Rounding    1    1  
EBITDA   $ 56   $ 89  

About Roper Industries

Roper Industries is a diversified industrial growth company with more than $1.4 billion of annualized revenues. Roper provides engineered products and solutions for global niche markets, including water, energy, radio frequency and research/medical applications. Additional information about Roper Industries is available on the Company’s website at www.roperind.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 year-end operating results, the success of our internal operating plans, and the prospects for newly acquired businesses to compete in their markets and contribute to future growth and profit 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 our acquisitions and realize expected synergies. We also face other general risks, including our ability to realize cost savings from our operating initiatives, 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 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 Industries, Inc.and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(Amounts in thousands)

September 30,
2005
 December 31,
2004
ASSETS            
CURRENT ASSETS:  
  Cash and cash equivalents   $ 79,096   $ 129,419  
  Accounts receivable    254,973    242,014  
  Inventories    134,350    132,282  
  Deferred taxes    22,402    20,485  
  Other current assets    45,267    31,960  
    Total current assets    536,088    556,160  
PROPERTY, PLANT AND EQUIPMENT, NET    94,479    97,949  
OTHER ASSETS:  
  Goodwill    1,286,151    1,144,035  
  Other intangible assets, net    456,046    487,173  
  Deferred taxes    7,917    34,205  
  Other assets    43,433    46,882  
    Total other assets    1,793,547    1,712,295  
TOTAL ASSETS   $ 2,424,114   $ 2,366,404  
LIABILITIES AND STOCKHOLDERS' EQUITY  
CURRENT LIABILITIES:  
  Accounts payable   $ 60,085   $ 65,801  
  Accrued liabilities    138,183    145,880  
  Deferred taxes    4,112    5,342  
  Current portion of long-term debt(1)    266,006    36,527  
    Total current liabilities    468,386    253,550  
NONCURRENT LIABILITIES:  
  Long-term debt    597,724    855,364  
  Deferred taxes    137,017    125,984  
  Other liabilities    19,400    17,420  
    Total liabilities    1,222,527    1,252,318  
STOCKHOLDERS' EQUITY:  
  Common stock    881    436  
  Additional paid-in capital    666,160    645,373  
  Retained earnings    504,311    415,188  
  Accumulated other comprehensive earnings    53,085    76,249  
  Treasury stock    (22,850 )  (23,160 )
    Total stockholders' equity    1,201,587    1,114,086  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 2,424,114   $ 2,366,404  

(1)    At the end of the Company’s third quarter ended September 30, 2005, the Company’s $230 million of senior subordinated convertible notes due in 2034 was required to be classified as current debt. This resulted from the triggering of the conversion feature of the notes due to increases in the trading price of the Company’s stock since the issuance of the notes in December 2003. As previously reported, upon conversion of the notes, if any, the Company would be required to pay cash for the accreted principal value of the notes. The Company does not expect noteholders to exercise their conversion rights within the next 12 months.

Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (unaudited)
(Amounts in thousands, except per share data)

Three months ended
September 30,
 Nine months ended
September 30,
2005
 2004
 2005
 2004
Net sales     $ 365,164   $ 240,141   $ 1,060,565   $ 693,215  
Cost of sales    180,407    120,570    533,242    348,191  
Gross profit    184,757    119,571    527,323    345,024  
Selling, general and administrative expenses    114,981    74,151    343,291    225,924  
Income from operations    69,776    45,420    184,032    119,100  
Interest expense    11,437    7,327    32,771    21,066  
Other income/(expense)    867    (17 )  1,110    18  
Earnings before income taxes    59,206    38,076    152,371    98,052  
Income taxes    20,012    10,694    49,604    28,986  
Net Earnings   $ 39,194   $ 27,382   $ 102,767   $ 69,066  
Earnings per share:  
  Basic:   $ 0.46   $ 0.37   $ 1.20   $ 0.94  
  Diluted   $ 0.45   $ 0.36   $ 1.18   $ 0.92  
Weighted average common and common  
    equivalent shares outstanding:  
    Basic    85,431    74,078    85,380    73,740  
    Diluted    87,096    75,346    86,896    74,948  

Roper Industries, Inc. and Subsidiaries
Selected Segment Financial Data (unaudited)
(Amounts in thousands and percents of net sales)

Three months ended September 30,
 Nine months ended September 30,
2005
 2004
 2005
 2004
Amount
 %
 Amount
 %
 Amount
 %
 Amount
 %
Net sales:                                    
Instrumentation   $ 53,395     $50,751     $164,015       $ 149,578      
Industrial Technology    110,161        100,735        323,435        294,814      
Energy Systems & Controls    42,573        42,807        128,306        111,145      
Scientific & Industrial Imaging    58,199        45,848        153,179        137,678      
RF Technology    100,836        --        291,630        --      
    Total   $ 365,164     $240,141     $1,060,565   $693,215      
Gross profit:  
Instrumentation   $31,428    58.9 % $28,049    55.3 % $95,579    58.3 % $85,809    57.4 %
Industrial Technology    48,430    44.0 %  43,859    43.5 %  142,385    44.0 %  124,371    42.2 %
Energy Systems & Controls    23,550    55.3 %  21,468    50.2 %  68,608    53.5 %  58,059    52.2 %
Scientific & Industrial Imaging    32,427    55.7 %  26,195    57.1 %  85,444    55.8 %  76,785    55.8 %
RF Technology    48,922    48.5 %  --  --  135,307  46.4 %  --  
    Total   $184,757    50.6 % $119,571    49.8 % $527,323    49.7 % $345,024    49.8 %
Operating profit*:  
Instrumentation   $11,956    22.4 % $9,233    18.2 % $34,100    20.8 % $27,063  18.1 %
Industrial Technology    25,380    23.0 %  22,451    22.3 %  72,346    22.4 %  59,862    20.3 %
Energy Systems & Controls    11,647    27.4 %  9,818    22.9 %  30,441    23.7 %  21,467    19.3 %
Scientific & Industrial Imaging    10,970    18.8 %  8,268    18.0 %  26,144    17.1 %  22,648    16.4 %
RF Technology    16,295    16.2 %  --    40,041  13.7 %  --
    Total   $76,248    20.9 % $49,770    20.7 % $203,072    19.1 % $131,040    18.9 %
Net Orders:  
Instrumentation   $58,485     $55,282     $167,680       $ 152,842      
Industrial Technology    111,065        101,875        333,256        291,185      
Energy Systems & Controls    44,602        47,826        121,619        113,571      
Scientific & Industrial Imaging    60,622        43,397        161,951        133,896      
RF Technology    133,221        --        318,305        --      
    Total   $407,995     $248,380     $1,102,811   $691,494      

        * Operating profit is before unallocated corporate general and administrative expenses. Such expenses were $6,472 and $4,350 for the three months ended September 30, 2005 and 2004, respectively, and $19,040 and $11,940 for the nine months ended September 30, 2005 and 2004, respectively.

Roper Industries, Inc.and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(Amounts in thousands)

Nine months ended
September 30,
2005
 2004
Net earnings     $ 102,767   $ 69,066  
Depreciation    20,791    13,437  
Amortization    32,036    16,390  
Other, net    20,331    2,666  
  Cash provided by operating activities    175,925    101,559  
Business acquisitions, net of cash acquired    (181,086 )  (51,861 )
Capital expenditures    (16,059 )  (8,108 )
Other, net    (1,014 )  (3,521 )
  Cash used by investing activities    (198,159 )  (63,490 )
Debt borrowings/(payments), net    (22,016 )  (34,954 )
Issuance of common stock    --    28,873  
Dividends    (13,593 )  (10,678 )
Other, net    13,124    10,876  
  Cash used by financing activities    (22,485 )  (5,883 )
Effect of exchange rate changes on cash    (5,604 )  (4 )
Net increase in cash and equivalents    (50,323 )  32,182  
Cash and equivalents, beginning of period    129,419    70,234  
Cash and equivalents, end of period   $ 79,096   $ 102,416