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.