Roper Technologies Announces Record Third Quarter Results
SARASOTA, Fla., Oct. 24, 2019 (GLOBE NEWSWIRE) — Roper Technologies, Inc. (NYSE: ROP), a leading diversified technology company, reported financial results for the third quarter ended September 30, 2019.
Third quarter GAAP and adjusted revenue increased 3% to $1.35 billion and $1.36 billion, respectively. GAAP and adjusted gross margin expanded 80 basis points to 64.5% and 64.6%, respectively. GAAP net earnings increased 12% to $278 million and adjusted net earnings increased 7% to $346 million.GAAP diluted earnings per share (“DEPS”) was $2.64, an 11% increase, while adjusted DEPS was $3.29, a 6% increase. Operating cash flow was $404 million and free cash flow was $387 million, representing 29% of adjusted revenue. EBITDA increased 5% to $498 million and EBITDA margin expanded 90 basis points to 36.7%.“Our diversified portfolio of asset-light businesses delivered another excellent financial quarter,” said Neil Hunn, Roper’s President and CEO. “In particular, we were highly encouraged by the expansion in our gross and EBITDA margins and how our business leaders nimbly executed in the current environment.”“Also, during the quarter, we deployed $1.8 billion and continued to enhance our portfolio with the acquisitions of two high quality, niche software businesses — iPipeline and ComputerEase,” continued Mr. Hunn. “Additionally, we announced an agreement to divest our Gatan business to AMETEK and expect the transaction to close at the end of this month.”Updating 2019 GuidanceThe Company now expects full year adjusted DEPS of $12.98 – $13.02, compared to previous guidance of $12.94 – $13.06.For the fourth quarter of 2019, the Company expects adjusted DEPS of $3.32 – $3.36.The Company’s guidance assumes the pending Gatan divestiture will close at the end of October and excludes the impact of unannounced future acquisitions or divestitures.Use of Non-GAAP Financial InformationThe 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.Conference Call to be Held at 8:00 AM (ET) TodayA conference call to discuss these results has been scheduled for 8:00 AM ET on Thursday, October 24, 2019. The call can be accessed via webcast or by dialing +1 800-263-0877 (US/Canada) or +1 646-828-8143, using confirmation code 8317280. 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://event.webcast. Telephonic replays will be available for up to two weeks and can be accessed by using the following registration URL https://event.replay with access code 8317280.
A. Q3’19 acquisition-related fair value adjustment to deferred revenue related to the acquisitions of Foundry and iPipeline ($3M pretax, $2M after-tax).B. Transaction-related expenses for completed acquisitions and announced divestiture ($2M pretax, $2M after-tax for Q3’19; $6M pretax, $5M after-tax for FY’19).C. All 2018 and 2019 adjustments taxed at 21%, except for the gain on sale of the Scientific Imaging businesses which was taxed at 27%.D. Actual results and forecast of estimated amortization of acquisition-related intangible assets ($M, except per share data); for comparison purposes, prior period amounts are also shown below. Tax rate of 21% applied to amortization.E. Adjustment to income tax expense related to sale of Scientific Imaging businesses ($1M).F. Adjustment to previously recognized deferred tax expense related to new deal structure for divestiture of Gatan ($10M).G. Forecasted acquisition-related fair value adjustments to acquired deferred revenue of Foundry and iPipeline as shown below ($M, except per share data).H. Gain on sale of Scientific Imaging businesses ($120M pretax, $87M after-tax).Note: Numbers may not foot due to rounding.About Roper TechnologiesRoper Technologies is a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices. Roper operates businesses that design and develop software (both license and software-as-a-service) and engineered products and solutions for a variety of niche end markets. 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 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 identify and complete acquisitions consistent with our business strategies, integrate acquisitions that have been completed, realize expected benefits and synergies from, and manage other risks associated with, the newly acquired businesses. We also face other general risks, including our ability to realize cost savings from our operating initiatives, general economic conditions and the conditions of the specific markets in which we operate, changes in foreign exchange rates, difficulties associated with exports, risks associated with our international operations, 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.