Roper Industries Announces Record First Quarter Results - CBS 3 Springfield - WSHM

Roper Industries Announces Record First Quarter Results

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SOURCE Roper Industries, Inc.

Revenue Increased 13% to $834 Million

Operating Cash Flow Increased 24% to $213 Million

SARASOTA, Fla., April 28, 2014 /PRNewswire/ -- Roper Industries, Inc. (NYSE: ROP), a diversified technology company, reported financial results for the first quarter ended March 31, 2014.

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 revenue increased 13% to $834 million.  Net earnings for the first quarter were $147 million, or $1.46 per diluted share.  Operating profit was $223 million, an increase of 21% over last year's GAAP operating profit and 18% over last year's adjusted operating profit. Orders increased to $846 million and represented a book-to-bill ratio of 1.01.  Operating cash flow in the quarter increased 24% to $213 million and represented 25% of revenue. 

"Our businesses performed exceptionally well in the quarter, with record first quarter performance for orders, revenue, margins and cash flow," said Brian Jellison, Roper's Chairman, President and CEO.  "Revenue increased 13%, including 7% organic growth in the quarter.  This performance was broad-based, with all four operating segments increasing organic revenue at least 5%."

"Our continued expansion into asset-light medical, technology and service businesses, combined with outstanding execution across the enterprise, resulted in free cash flow of $202 million, 26% higher than last year's first quarter," continued Mr. Jellison.  "EBITDA reached $274 million and represented 32.8% of revenue.  In addition, our balance sheet and financial capacity are in the best shape in our history, and we are encouraged about our prospects for the remainder of the year."

2014 Guidance Update

As a result of its first quarter performance, Roper is increasing its full year diluted earnings per share guidance from $6.05 - $6.25 to $6.22 - $6.36.  Second quarter diluted earnings per share is expected to be $1.46 - $1.51. The company's guidance excludes the impact of any future acquisitions. 

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: Q1 Revenue Growth Detail



Revenue

         V%

Q1 2014 GAAP Revenue (A)

$834





Q1 2013 GAAP Revenue

$737

13%

Sunquest Adjustment to Acquired Deferred Revenue

4


Q1 2013 Adjusted Revenue (B)

$741


Increase (B)/(A)


13%




Components of Growth



     Organic


7%

     Acquisitions


5%

     Foreign Exchange


--

     Rounding


1%

     Total Growth


13%




 

Table 2: Free Cash Flow Reconciliation



Q1 2013

Q1 2014

V%

Operating Cash Flow

$171.3

$212.6

24%

Less:  Capital Expenditures

(11.2)

(10.5)


Rounding

---

0.1


Free Cash Flow

$160.1

$202.2

26%

Table 3: EBITDA Reconciliation



Q1 2014

Revenue (B)

$834.1



Net Earnings

$147.2

Add:  Interest Expense

19.8

Add:  Income Taxes

57.8

Add:  Depreciation & Amortization

48.7

EBITDA (A)

$273.5





% of Revenue (A) / (B)

32.8%

Table 4: Reconciliation of Q1 2013 GAAP Operating Profit to Adjusted Operating Profit



Operating

Profit

V%

Q1 2014 GAAP Operating Profit (A)

223





Q1 2013 GAAP Operating Profit

185

21%

Sunquest Adjustment to Acquired Deferred Revenue

4


Q1 2013 Adjusted Revenue (B)

$189


Increase (B)/(A)


18%




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 28, 2014.  The call can be accessed via webcast or by dialing +1 888-510-1786 (US/Canada) or +1 719-457-2661, using confirmation code 2783016.  Webcast information and conference call materials will be made available in the Investors 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 2783016.

About Roper Industries

Roper Industries is a diversified technology company and is a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices. Roper provides engineered products and solutions for global niche markets, including software information networks, medical, water, energy, and transportation. Additional information about Roper 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 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 Industries, Inc. and Subsidiaries




Condensed Consolidated Balance Sheets (unaudited)



(Amounts in thousands)













March 31,


December 31,

ASSETS

2014


2013





CURRENT ASSETS:




  Cash and cash equivalents

$        502,885


$        459,720

  Accounts receivable

514,081


519,075

  Inventories 

209,383


204,923

  Unbilled receivable

95,274


86,945

  Deferred taxes

70,069


64,464

  Other current assets

40,478


38,210

    Total current assets

1,432,170


1,373,337





PROPERTY, PLANT AND EQUIPMENT, NET

116,590


117,310





OTHER ASSETS:




  Goodwill

4,540,022


4,549,998

  Other intangible assets, net

1,997,924


2,039,136

  Deferred taxes

27,196


28,773

  Other assets

75,801


76,427

    Total other assets

6,640,943


6,694,334





TOTAL ASSETS

$     8,189,703


$     8,184,981









LIABILITIES AND STOCKHOLDERS' EQUITY








CURRENT LIABILITIES:




  Accounts payable

$        144,168


$        150,313

  Accrued compensation

92,820


107,953

  Deferred revenue

207,957


209,332

  Other accrued liabilities

162,559


153,712

  Income taxes payable

43,035


4,275

  Deferred taxes

6,511


6,490

  Current portion of long-term debt

10,923


11,016

    Total current liabilities

667,973


643,091





NONCURRENT LIABILITIES:




  Long-term debt

2,304,143


2,453,836

  Deferred taxes

771,243


783,805

  Other liabilities

89,099


91,199

    Total liabilities

3,832,458


3,971,931





STOCKHOLDERS' EQUITY:




  Common stock

1,017


1,013

  Additional paid-in capital

1,258,910


1,229,233

  Retained earnings

3,086,465


2,959,196

  Accumulated other comprehensive earnings

30,272


43,083

  Treasury stock

(19,419)


(19,475)

    Total stockholders' equity

4,357,245


4,213,050





TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$     8,189,703


$     8,184,981





Roper Industries, Inc. and Subsidiaries





Condensed Consolidated Statements of Earnings (unaudited)


(Amounts in thousands, except per share data)





















Three months ended




March 31,




2014


2013







Net sales



$  834,052


$  737,135

Cost of sales



345,116


315,559







Gross profit



488,936


421,576







Selling, general and administrative expenses



265,536


236,399







Income from operations



223,400


185,177







Interest expense



19,827


20,858

Other income/(expense)



1,420


(2,492)







Earnings from continuing operations before






   income taxes



204,993


161,827







Income taxes



57,767


36,913







Net Earnings



$  147,226


$  124,914































Earnings per share:






  Basic



$       1.48


$       1.26

  Diluted



$       1.46


$       1.25







Weighted average common and common






  equivalent shares outstanding:






    Basic



99,557


98,876

    Diluted



100,572


99,986







Roper Industries, Inc. and Subsidiaries








Selected Segment Financial Data (unaudited)







(Amounts in thousands and percents of net sales)





























Three months ended March 31,



2014


2013



Amount


%


Amount


%

Net sales:









  Industrial Technology


$  197,001




$  182,239



  Energy Systems & Controls


155,171




145,642



  Medical & Scientific Imaging


256,199




200,444



  RF Technology


225,681




208,810



    Total


$  834,052




$  737,135





















Gross profit:









  Industrial Technology


$    98,470


50.0%


$    93,311


51.2%

  Energy Systems & Controls


85,965


55.4%


80,906


55.6%

  Medical & Scientific Imaging


184,850


72.2%


134,869


67.3%

  RF Technology


119,651


53.0%


112,490


53.9%

    Total


$  488,936


58.6%


$  421,576


57.2%



















Operating profit*:









  Industrial Technology


$    56,056


28.5%


$    52,945


29.1%

  Energy Systems & Controls


37,025


23.9%


35,722


24.5%

  Medical & Scientific Imaging


89,771


35.0%


59,928


29.9%

  RF Technology


62,560


27.7%


56,630


27.1%

    Total


$  245,412


29.4%


$  205,225


27.8%



















Net Orders:









  Industrial Technology


$  204,881




$  179,807



  Energy Systems & Controls


150,915




157,537



  Medical & Scientific Imaging


256,340




216,121



  RF Technology


234,345




240,118



    Total


$  846,481




$  793,583






























  *  Operating profit is before unallocated corporate general and administrative expenses.  These expenses 

       were $22,012 and $20,048  for the three months ended March 31, 2014 and 2013, respectively.











Roper Industries, Inc. and Subsidiaries




Condensed Consolidated Statements of Cash Flows (unaudited)

(Amounts in thousands)

















Three months ended



March 31,



2014


2013






Net earnings


$    147,226


$    124,914

Non-cash items:





Depreciation


9,666


9,342

Amortization


39,037


34,099

Stock-based compensation expense


14,571


12,969

Income taxes


24,829


16,348

Changes in assets and liabilities:





Receivables


(3,764)


14,454

Inventory


(4,712)


(11,687)

Accounts payable


(5,914)


1,760

Accrued liabilities


(6,973)


(27,262)

Other, net


(1,338)


(3,669)

  Cash provided by operating activities


212,628


171,268






Business acquisitions, net of cash acquired


(2,146)


(2,240)

Capital expenditures


(10,478)


(11,205)

Other, net


108


235

  Cash used by investing activities


(12,516)


(13,210)






Principal debt payments


(433)


(52)

Revolver payments, net


(150,000)


(100,000)

Dividends


(19,863)


-

Excess tax benefit from share-based payment


7,511


4,364

Proceeds from stock-based compensation, net


8,026


6,229

Premium on convertible debt conversions


(1,174)


(109)

Other, net


1,302


764

  Cash used by financing activities


(154,631)


(88,804)






Effect of exchange rate changes on cash


(2,316)


(9,822)






Net increase in cash and equivalents


43,165


59,432

Cash and equivalents, beginning of period


459,720


370,590






Cash and equivalents, end of period


$502,885


$430,022






 

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