Attached files
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| 8-K - ROPER TECHNOLOGIES INC | cover8k.htm |
Exhibit 99.1
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Contact Information:
Investor Relations
941-556-2601
investor-relations@roperind.com
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 Roper Industries, Inc.
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Roper Industries Announces Record First Quarter Results
Net Earnings Increased 22% to $108 Million
Operating Cash Flow up 63% to $141 Million
Full Year Guidance Raised
Sarasota, Florida, April 23, 2012 ... Roper Industries, Inc. (NYSE: ROP) reported financial results for the first quarter ended March 31, 2012.
Net earnings for the first quarter were $108 million, a 22% increase over the first quarter of 2011. Diluted earnings per share were $1.09 compared to $0.91 in the comparable prior year period. Revenue increased 10% to $711 million. Orders were $729 million and represented a book-to-bill ratio of 1.03. Operating income increased 20% to $170 million and operating margin was 24.0%, a 200 basis point increase over the prior year.
Operating cash flow increased 63% to $141 million, representing 20% of revenue. EBITDA reached $205 million and EBITDA margin was 28.9%. The revenue, orders, net earnings, EBITDA and cash flow performance were all records for any first quarter in Roper’s history.
“Our businesses performed exceptionally well in the quarter, as strong operating leverage led to double-digit operating profit growth in all four segments,” said Brian Jellison, Roper’s Chairman, President and CEO. “Our asset-light business model and outstanding execution across the businesses resulted in exceptional free cash flow of $131 million, up 69% from the prior year. Gross margin reached 55.0%, reflecting growth in our medical and software platforms and our enterprise-wide focus on technology and application engineering expertise.”
“We are off to a strong start in 2012 with 8% organic revenue growth in the first quarter,” Mr. Jellison continued. “Our balance sheet and financial capacity are in the best shape in our history, and we are excited about the prospects for the remainder of the year.”
2012 Outlook and Guidance
As a result of the strong first quarter and improved visibility into the second half of the year, Roper is increasing its full year diluted earnings per share guidance to $4.75 - $4.91 from $4.67 - $4.87. The Company’s guidance excludes future acquisitions.
Table 1: Revenue Growth
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Q1 2012
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||
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Total Revenue Growth
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10%
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Acquisitions / Divestitures
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3%
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Foreign Currency
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(1%)
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Organic
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8%
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Table 2: EBITDA and EBITDA Margin
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Q1 2012
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Q1 2011
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|||
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Net Earnings
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$108.3
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$89.0
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||
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Add: Interest Expense
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15.5
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16.7
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||
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Add: Income Taxes
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46.0
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37.0
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||
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Add: Depreciation & Amortization
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35.5
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34.3
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||
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EBITDA (A)
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$205.3
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$177.0
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||
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Revenue (B)
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$711.1
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$645.3
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||
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EBITDA Margin (A)/(B)
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28.9%
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27.4%
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Table 3: Free Cash Flow
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Q1 2012
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Q1 2011
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|||
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Operating Cash Flow
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$141.5
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$86.6
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||
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Less: Capital Expenditures
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(10.0)
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(8.8)
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||
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Rounding
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(0.1)
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0.0
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||
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Free Cash Flow
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$131.4
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$77.8
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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 23, 2012. The call can be accessed via webcast or by dialing +888-263-2834 (US/Canada) or +1 913-312-0953, using confirmation code 7242338. 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 7242338.
About Roper Industries
Roper Industries is a diversified growth 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 water, energy, transportation, medical, education, and SaaS-based information networks. 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 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, 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)
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March 31,
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December 31,
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|||||||
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2012
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2011
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ASSETS
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||||||||
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CURRENT ASSETS:
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||||||||
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Cash and cash equivalents
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$ | 451,718 | $ | 338,101 | ||||
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Accounts receivable
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412,508 | 439,134 | ||||||
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Inventories
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214,020 | 204,758 | ||||||
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Unbilled receivable
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68,688 | 63,829 | ||||||
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Deferred taxes
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36,410 | 38,004 | ||||||
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Other current assets
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32,568 | 31,647 | ||||||
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Total current assets
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1,215,912 | 1,115,473 | ||||||
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PROPERTY, PLANT AND EQUIPMENT, NET
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109,565 | 108,775 | ||||||
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OTHER ASSETS:
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Goodwill
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2,887,045 | 2,866,426 | ||||||
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Other intangible assets, net
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1,084,996 | 1,094,142 | ||||||
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Deferred taxes
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63,122 | 63,006 | ||||||
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Other assets
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70,142 | 71,595 | ||||||
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Total other assets
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4,105,305 | 4,095,169 | ||||||
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TOTAL ASSETS
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$ | 5,430,782 | $ | 5,319,417 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
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CURRENT LIABILITIES:
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Accounts payable
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$ | 139,029 | $ | 141,943 | ||||
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Accrued liabilities
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286,548 | 322,904 | ||||||
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Income taxes payable
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22,588 | 8,895 | ||||||
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Deferred taxes
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9,613 | 10,548 | ||||||
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Current portion of long-term debt
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63,580 | 69,906 | ||||||
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Total current liabilities
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521,358 | 554,196 | ||||||
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NONCURRENT LIABILITIES:
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||||||||
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Long-term debt
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1,014,099 | 1,015,110 | ||||||
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Deferred taxes
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484,803 | 482,603 | ||||||
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Other liabilities
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78,178 | 72,412 | ||||||
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Total liabilities
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2,098,438 | 2,124,321 | ||||||
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STOCKHOLDERS' EQUITY:
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||||||||
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Common stock
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993 | 987 | ||||||
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Additional paid-in capital
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1,140,188 | 1,117,093 | ||||||
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Retained earnings
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2,158,037 | 2,063,110 | ||||||
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Accumulated other comprehensive earnings
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52,961 | 33,800 | ||||||
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Treasury stock
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(19,835 | ) | (19,894 | ) | ||||
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Total stockholders' equity
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3,332,344 | 3,195,096 | ||||||
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$ | 5,430,782 | $ | 5,319,417 | ||||
Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (unaudited)
(Amounts in thousands, except per share data)
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Three months ended
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March 31,
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2012
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2011
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Net sales
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$ | 711,066 | $ | 645,309 | ||||
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Cost of sales
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319,873 | 295,213 | ||||||
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Gross profit
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391,193 | 350,096 | ||||||
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Selling, general and administrative expenses
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220,889 | 208,096 | ||||||
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Income from operations
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170,304 | 142,000 | ||||||
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Interest expense
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15,483 | 16,696 | ||||||
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Other income/(expense)
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(490 | ) | 711 | |||||
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Earnings from continuing operations before
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||||||||
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income taxes
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154,331 | 126,015 | ||||||
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Income taxes
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46,022 | 37,036 | ||||||
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Net Earnings
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$ | 108,309 | $ | 88,979 | ||||
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Earnings per share:
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||||||||
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Basic
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$ | 1.12 | $ | 0.93 | ||||
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Diluted
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$ | 1.09 | $ | 0.91 | ||||
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Weighted average common and common
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||||||||
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equivalent shares outstanding:
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||||||||
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Basic
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97,039 | 95,374 | ||||||
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Diluted
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99,307 | 98,153 | ||||||
Roper Industries, Inc. and Subsidiaries
Selected Segment Financial Data (unaudited)
(Amounts in thousands and percents of net sales)
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Three months ended March 31,
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2012
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2011
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Amount
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%
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Amount
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%
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Net sales:
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Industrial Technology
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$ | 195,136 | $ | 169,982 | ||||||||||||
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Energy Systems & Controls
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148,602 | 129,633 | ||||||||||||||
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Medical & Scientific Imaging
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162,811 | 145,287 | ||||||||||||||
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RF Technology
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204,517 | 200,407 | ||||||||||||||
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Total
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$ | 711,066 | $ | 645,309 | ||||||||||||
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Gross profit:
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Industrial Technology
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$ | 98,663 | 50.6% | $ | 85,714 | 50.4% | ||||||||||
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Energy Systems & Controls
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80,408 | 54.1% | 70,146 | 54.1% | ||||||||||||
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Medical & Scientific Imaging
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106,186 | 65.2% | 91,254 | 62.8% | ||||||||||||
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RF Technology
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105,936 | 51.8% | 102,982 | 51.4% | ||||||||||||
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Total
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$ | 391,193 | 55.0% | $ | 350,096 | 54.3% | ||||||||||
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Operating profit*:
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Industrial Technology
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$ | 57,507 | 29.5% | $ | 46,189 | 27.2% | ||||||||||
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Energy Systems & Controls
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35,657 | 24.0% | 29,044 | 22.4% | ||||||||||||
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Medical & Scientific Imaging
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43,362 | 26.6% | 35,037 | 24.1% | ||||||||||||
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RF Technology
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50,353 | 24.6% | 44,950 | 22.4% | ||||||||||||
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Total
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$ | 186,879 | 26.3% | $ | 155,220 | 24.1% | ||||||||||
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Net Orders:
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||||||||||||||||
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Industrial Technology
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$ | 204,002 | $ | 200,742 | ||||||||||||
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Energy Systems & Controls
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153,376 | 134,205 | ||||||||||||||
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Medical & Scientific Imaging
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168,336 | 150,265 | ||||||||||||||
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RF Technology
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203,672 | 217,087 | ||||||||||||||
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Total
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$ | 729,386 | $ | 702,299 | ||||||||||||
* Operating profit is before unallocated corporate general and administrative expenses. These expenses were $16,575 and $13,220 for the three months ended March 31, 2012 and 2011, respectively.
Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(Amounts in thousands)
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Three months ended
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||||||||
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March 31,
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2012
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2011
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Net earnings
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$ | 108,309 | $ | 88,979 | ||||
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Non-cash items:
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||||||||
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Depreciation
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9,449 | 9,256 | ||||||
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Amortization
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26,018 | 25,054 | ||||||
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Stock-based compensation expense
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9,954 | 8,112 | ||||||
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Income taxes
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13,720 | 3,424 | ||||||
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Changes in assets and liabilities:
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||||||||
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Receivables
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15,968 | (18,181 | ) | |||||
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Inventory
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(7,462 | ) | (16,359 | ) | ||||
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Accounts payable
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(3,774 | ) | 6,854 | |||||
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Accrued liabilities
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(32,162 | ) | (23,466 | ) | ||||
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Other, net
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1,437 | 2,911 | ||||||
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Cash provided by operating activities
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141,457 | 86,584 | ||||||
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Business acquisitions, net of cash acquired
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(19,007 | ) | - | |||||
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Capital expenditures
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(10,008 | ) | (8,813 | ) | ||||
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Other, net
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219 | (198 | ) | |||||
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Cash used by investing activities
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(28,796 | ) | (9,011 | ) | ||||
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Principal debt payments
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(6,297 | ) | (11,968 | ) | ||||
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Revolver payments, net
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- | (85,000 | ) | |||||
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Dividends
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(13,290 | ) | (10,458 | ) | ||||
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Excess tax benefit from share-based payment
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7,505 | 2,855 | ||||||
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Proceeds from exercise of stock options
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16,873 | 8,607 | ||||||
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Other, net
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(7,065 | ) | (118 | ) | ||||
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Cash used by financing activities
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(2,274 | ) | (96,082 | ) | ||||
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Effect of exchange rate changes on cash
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3,230 | 9,562 | ||||||
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Net increase (decrease) in cash and equivalents
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113,617 | (8,947 | ) | |||||
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Cash and equivalents, beginning of period
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338,101 | 270,394 | ||||||
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Cash and equivalents, end of period
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$ | 451,718 | $ | 261,447 | ||||