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Roper Technologies, Inc.$233.10($.23)(.10%)

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 Roper Industries Announces Record Fourth Quarter and Full Year 2014 Results
   Monday, January 26, 2015 7:00:00 AM ET

Roper Industries, Inc. (ROP ), a diversified technology company, reported financial results for the fourth quarter and full year ended December 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.

Fourth Quarter 2014

Fourth quarter GAAP diluted earnings per share (DEPS) were $1.84 and adjusted diluted earnings per share were $1.85, both 12% increases over last year. GAAP revenue increased 6% to $946 million and adjusted revenue increased 7% to $948 million. Organic revenue increased 7% for the quarter.

GAAP operating margin increased 100 basis points over the prior year to 30.0% and adjusted operating margin increased to 30.1%, a 110 basis point gain. EBITDA margin was a record 35.3% for the quarter. Operating cash flow in the quarter was $261 million, an 11% increase over last year, and represented 140% conversion of GAAP net income.

Full Year 2014

Full year GAAP diluted earnings per share increased 19% to $6.40. Adjusted diluted earnings per share were $6.42, a 14% increase over the prior year. GAAP revenue was $3.55 billion, an increase of 10% over the prior year, and adjusted revenue was $3.55 billion, an increase of 9%.

GAAP operating margin increased 220 basis points to 28.2% and adjusted operating margin was also 28.2%, a 120 basis point increase over the prior year. Operating cash flow was $840 million. Free cash flow was $803 million and represented 23% of revenue.

"We were very pleased with our performance in the fourth quarter, which completed another terrific year for Roper," said Brian Jellison, Roper’s Chairman, President and CEO. "Our leading positions in favorable niche markets combined with outstanding execution by our businesses delivered record levels for sales, net earnings, EBITDA and cash flow."

Strata Acquisition

On Friday, January 23rd, Roper announced the acquisition of Strata Decision Technology, L.L.C., the leading cloud-based analytics platform for financial planning, decision support and continuous cost improvement for the healthcare industry. Over 1,000 hospitals, including many of the largest and most influential healthcare delivery systems in the United States, subscribe to the Strata SaaS (software-as-a-service) platform. Strata will become part of Roper’s Medical segment.

2015 Outlook and Guidance

"We enter 2015 with positive momentum across our businesses," said Mr. Jellison. "We expect continued organic growth, led by our Medical and RF segments. Our acquisition pipeline remains active and we expect to deploy over $1 billion in 2015."

Roper expects 2015 full year adjusted diluted earnings per share (DEPS) between $6.70 and $6.94 with first quarter DEPS between $1.47 and $1.53. The company’s guidance excludes 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

                                          2014   2013   V%
Q4 GAAP Revenue                           $946.1 $889.2 6%
Add:  Purchase Accounting Adjustment to   1.4
Acquired Deferred Revenue (SHP, FoodLink)
Q4 Adjusted Revenue                       $947.5 $889.2 7%
Components of Adjusted Revenue Growth
Organic                                                 7%
Acquisitions                                            2%
Foreign Exchange                                        (2%)
Total Growth                                            7%

Table 2: Reconciliation of Q4 2014 GAAP DEPS to Adjusted DEPS

                                                      2014  2013  V%
GAAP Diluted Earnings Per Share (DEPS)                $1.84 $1.65 12%
Add:  Purchase Accounting Adjustment to               $0.01
Acquired Deferred Revenue (FoodLink, SHP), net of tax
Add:  Acquisition-Related Inventory Step-up           $0.00
Charge (IPA), net of tax
Adjusted DEPS                                         $1.85 $1.65 12%

Table 3: Reconciliation of 2014 GAAP DEPS to Adjusted DEPS

                                            2014    2013  V%
GAAP Diluted Earnings Per Share (DEPS)      $6.40   $5.37 19%
Add:  Fair Value Adjustment to Acquired             $0.05
Deferred Revenue (Sunquest)
Add:  Acquisition-Related Revenue                   $0.17
Adjustment (MHA)
Add:  Special Charge for Vendor-Supplied            $0.06
Component (Hansen)
Add:  Purchase Accounting Adjustment to     $0.02
Acquired Deferred Revenue (FoodLink, SHP)
Add:  Acquisition-Related Inventory Step-up $0.01
Charge (IPA)
Rounding                                    ($0.01)
Adjusted DEPS                               $6.42   $5.65 14%

Table 4: 2014 Full Year Adjusted Revenue and Adjusted Operating Margin Reconciliation

                                            2014     2013     V% / V Bps
Full Year GAAP Revenue                      $3,549.5 $3,238.1 +10%
Add:  Fair Value Adjustment to Acquired              7.0
Deferred Revenue (Sunquest)
Add:  Acquisition-Related Revenue                    26.4
Adjustment (MHA)
Add:  Purchase Accounting Adjustment to     2.3
Acquired Deferred Revenue (SHP, FoodLink)
Adjusted Revenue (A)                        $3,551.8 $3,271.5 +9%
GAAP Operating Profit                       $999.5   $842.4
Add:  Fair Value Adjustment to Acquired              7.0
Deferred Revenue (Sunquest)
Add:  Acquisition-Related Revenue                    26.4
Adjustment (MHA)
Add: Special Charge for Vendor-Supplied              9.1
Component (Hansen)
Add:  Purchase Accounting Adjustment to     2.3
Acquired Deferred Revenue (SHP, FoodLink)
Add:  Acquisition-Related Inventory Step-up 0.8
Charge (IPA)
Rounding                                    0.1
Adjusted Operating (B)                      1,002.7  884.9
GAAP Operating Margin                       28.2%    26.0%    +220 bps
Adjusted Operating Margin (B) / (A)         28.2%    27.0%    +110 bps

Table 5: Fourth Quarter Adjusted Revenue and Adjusted Operating Margin Reconciliation

                                            2014   2013   V bps
Q4 GAAP Revenue                             $946.1 $889.2
Add:  Purchase Accounting Adjustment to     1.4
Acquired Deferred Revenue (SHP, FoodLink)
Q4 Adjusted Revenue (A)                     $947.5 $889.2
Q4 GAAP Operating Profit                    $283.7 $258.1
Add:  Purchase Accounting Adjustment to     1.4
Acquired Deferred Revenue (SHP, FoodLink)
Add:  Acquisition-Related Inventory Step-up 0.4
Charge (IPA)
Rounding                                    0.1
Adjusted Operating Profit (B)               $285.6 $258.1
GAAP Operating Margin                       30.0%  29.0%  +100 bps
Adjusted Operating Margin (B) / (A)         30.1%  29.0%  +110 bps

Table 6: Free Cash Flow

                            2014
Operating Cash Flow         $840.4
Less:  Capital Expenditures (37.6)
Free Cash Flow              $802.8

Table 7: EBITDA Reconciliation

                                                   Q4 2014
GAAP Revenue                                       $946.1
Purchase Accounting Adjustment to Acquired         1.4
Deferred Revenue (FoodLink, SHP)
Adjusted Revenue (A)                               $947.5
GAAP Net Earnings                                  $185.9
Add:  Depreciation                                 10.4
Add:  Amortization                                 39.2
Add:  Interest Expense                             19.3
Add:  Taxes                                        78.1
Purchase Accounting Adjustment to Acquired         1.4
Deferred Revenue (FoodLink, SHP)
Acquisition-Related Inventory Step-up Charge (IPA) 0.4
Rounding                                           0.1
EBITDA (B)                                         $334. 8
EBITDA Margin (B) / (A)                            35.3%

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, January 26, 2015. The call can be accessed via webcast or by dialing +1 888-395-3227 (US/Canada) or +1 719-325-2472, using confirmation code 9919388. 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. The webcast can also be accessed directly by using the following URL http://www.videonewswire.com/event.asp?id=101389 . Telephonic replays will be available for up to two weeks by calling +1 719-457-0820 and using the access code 9919388.

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 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 Industries, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(Amounts in thousands)
                                           December 31,  December 31,
ASSETS                                     2014          2013
CURRENT ASSETS:
Cash and cash equivalents                  $ 610,430     $ 459,720
Accounts receivable                        511,538       519,075
Inventories                                193,766       204,923
Unbilled receivable                        96,409        86,945
Deferred taxes                             54,199        64,464
Other current assets                       45,763        38,210
Total current assets                       1,512,105     1,373,337
PROPERTY, PLANT AND EQUIPMENT, NET         110,876       117,310
OTHER ASSETS:
Goodwill                                   4,710,691     4,549,998
Other intangible assets, net               1,978,729     2,039,136
Deferred taxes                             27,496        28,773
Other assets                               73,037        76,427
Total other assets                         6,789,953     6,694,334
TOTAL ASSETS                               $ 8,412,934   $ 8,184,981
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable                           $ 143,847     $ 150,313
Accrued compensation                       117,374       107,953
Deferred revenue                           190,953       209,332
Other accrued liabilities                  160,738       153,712
Income taxes payable                       -             4,275
Deferred taxes                             3,943         6,490
Current portion of long-term debt          11,092        11,016
Total current liabilities                  627,947       643,091
NONCURRENT LIABILITIES:
Long-term debt                             2,203,031     2,453,836
Deferred taxes                             735,826       783,805
Other liabilities                          90,770        91,199
Total liabilities                          3,657,574     3,971,931
STOCKHOLDERS’ EQUITY:
Common stock                               1,021         1,013
Additional paid-in capital                 1,325,338     1,229,233
Retained earnings                          3,520,201     2,959,196
Accumulated other comprehensive earnings   (71,927)      43,083
Treasury stock                             (19,273)      (19,475)
Total stockholders’ equity                 4,755,360     4,213,050
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 8,412,934   $ 8,184,981
Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (unaudited)
(Amounts in thousands, except per share data)
                                              Three months ended          Twelve months ended
                                              December 31,                December 31,
                                              2014          2013          2014              2013
Net sales                                     $  946,145    $  889,173    $   3,549,494     $  3,238,128
Cost of sales                                 380,404       355,953       1,447,595         1,355,200
Gross profit                                  565,741       533,220       2,101,899         1,882,928
Selling, general and administrative expenses  281,992       275,131       1,102,426         1,040,567
Income from operations                        283,749       258,089       999,473           842,361
Interest expense                              19,285        20,115        78,637            88,039
Other income/(expense)                        (422)         (645)         620               (192)
Earnings from continuing operations before
income taxes                                  264,042       237,329       921,456           754,130
Income taxes                                  78,106        71,626        275,423           215,837
Net Earnings                                  $  185,936    $  165,703    $     646,033     $     538,293
Earnings per share:
Basic                                         $       1.86  $       1.67  $           6.47  $          5.43
Diluted                                       $       1.84  $       1.65  $           6.40  $          5.37
Weighted average common and common
equivalent shares outstanding:
Basic                                         100,151       99,315        99,916            99,123
Diluted                                       101,122       100,380       100,884           100,209
Roper Industries, Inc. and Subsidiaries
Selected Segment Financial Data (unaudited)
(Amounts in thousands and percents of net sales)
                              Three months ended December 31,            Twelve months ended December 31,
                              2014                  2013                 2014                 2013
                              Amount        %       Amount       %       Amount       %       Amount       %
Net sales:
Industrial Technology         $   219,642           $  199,098           $   827,145          $   779,564
Energy Systems & Controls     200,009               195,889              691,813              651,920
Medical & Scientific Imaging  286,410               256,542              1,080,309            902,281
RF Technology                 240,084               237,644              950,227              904,363
Total                         $   946,145           $  889,173           $3,549,494           $3,238,128
Gross profit:
Industrial Technology         $   111,104   50.6%   $  101,873   51.2%   $   417,568  50.5%   $   398,287  51.1%
Energy Systems & Controls     122,232       61.1%   117,778      60.1%   403,287      58.3%   374,209      57.4%
Medical & Scientific Imaging  206,669       72.2%   184,272      71.8%   779,407      72.1%   624,990      69.3%
RF Technology                 125,736       52.4%   129,297      54.4%   501,637      52.8%   485,442      53.7%
Total                         $   565,741   59.8%   $  533,220   60.0%   $2,101,899   59.2%   $1,882,928   58.1%
Operating profit*:
Industrial Technology         $     69,056  31.4%   $    58,775  29.5%   $   247,596  29.9%   $   223,053  28.6%
Energy Systems & Controls     72,177        36.1%   65,247       33.3%   203,021      29.3%   183,679      28.2%
Medical & Scientific Imaging  100,488       35.1%   88,739       34.6%   375,867      34.8%   268,172      29.7%
RF Technology                 67,994        28.3%   69,704       29.3%   271,177      28.5%   253,532      28.0%
Total                         $   309,715   32.7%   $  282,465   31.8%   $1,097,661   30.9%   $   928,436  28.7%
Net Orders:
Industrial Technology         $   197,847           $  190,475           $   808,921          $   772,337
Energy Systems & Controls     202,030               207,155              692,136              673,569
Medical & Scientific Imaging  282,169               270,157              1,081,190            958,830
RF Technology                 242,295               232,338              955,831              943,757
Total                         $   924,341           $  900,125           $3,538,078           $3,348,493
*  Operating profit is before unallocated corporate general and administrative expenses.  These expenses
were $25,966 and $24,376 for the three months ended December 31, 2014 and 2013, respectively, and
$98,188 and $86,075 for the twelve months ended December 31, 2014 and 2013, respectively.
Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(Amounts in thousands)
                                                 Twelve months ended
                                                 December 31,
                                                 2014          2013
Net earnings                                     $    646,033  $    538,293
Non-cash items:
Depreciation                                     40,890        37,756
Amortization                                     156,394       151,434
Stock-based compensation expense                 63,027        53,133
Income taxes                                     (46,619)      (6,427)
Changes in assets and liabilities:
Receivables                                      (10,709)      18,046
Inventory                                        6,349         (12,687)
Accounts payable                                 (5,070)       9,014
Accrued liabilities                              (15,385)      14,291
Other, net                                       5,531         (300)
Cash provided by operating activities            840,441       802,553
Business acquisitions, net of cash acquired      (305,379)     (1,074,413)
Capital expenditures                             (37,644)      (42,528)
Other, net                                       (5,082)       1,078
Cash used by investing activities                (348,105)     (1,115,863)
Principal debt borrowings                        -             800,000
Principal debt payments                          (561)         (503,702)
Revolver borrowings (payments), net              (250,000)     150,000
Debt issuance costs                              -             (7,717)
Dividends                                        (79,859)      (49,092)
Excess tax benefit from share-based payment      21,081        11,709
Proceeds from stock-based compensation, net      10,463        7,944
Redemption premium on convertible debt           (1,518)       (9,124)
Other, net                                       2,290         3,615
Cash provided by (used in) financing activities  (298,104)     403,633
Effect of exchange rate changes on cash          (43,522)      (1,193)
Net increase in cash and equivalents             150,710       89,130
Cash and equivalents, beginning of period        459,720       370,590
Cash and equivalents, end of period              $610,430      $459,720

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/roper-industries-announces-record-fourth-quarter-and-full-year-2014-results-300025266.html

SOURCE Roper Industries, Inc.

http://rt.prnewswire.com/rt.gif?NewsItemId=CL15315&Transmission_Id=201501260700PR_NEWS_USPR_____CL15315&DateId=20150126



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