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 Guidance
The 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 - $3.36.
The Company’s guidance assumes the pending Gatan
divestiture will close at the end of October and excludes the
impact of unannounced future acquisitions or divestitures.
Use of Non-GAAP Financial Information
The Company supplements its consolidated
financial statements presented on a GAAP basis with certain
non-GAAP financial information to provide investors with greater
insight, increase transparency and allow for a more comprehensive
understanding of the information used by management in its
financial and operational decision-making. Reconciliation of
non-GAAP measures to their most directly comparable GAAP measures
are included in the accompanying financial schedules or tables. The
non-GAAP financial measures disclosed by the Company should not be
considered a substitute for, or superior to, financial measures
prepared in accordance with GAAP, and the financial results
prepared in accordance with GAAP and reconciliations from these
results should be carefully evaluated.
Conference Call to be Held at 8:00 AM
(ET) Today
A conference call to discuss these results has
been scheduled for 8:00 AM ET on Thursday, October 24, 2019. The
call can be accessed via webcast or by dialing +1 800-263-0877
(US/Canada) or +1 646-828-8143, using confirmation code 8317280.
Webcast information and conference call materials will be made
available in the Investors section of Roper’s website
(www.ropertech.com) prior to the start of the call. The webcast can
also be accessed directly by using the following URL
https://event.webcast. Telephonic replays will be available for up
to two weeks and can be accessed by using the following
registration URL https://event.replay with access code 8317280.
| Table 1: Adjusted Revenue, Gross Profit
and EBITDA Reconciliation ($M) |
| |
|
|
|
|
|
| |
Q3 2018 |
|
Q3 2019 |
|
V % |
| Adjusted Revenue Reconciliation |
|
|
|
|
|
| GAAP
Revenue |
$ |
1,319 |
|
|
$ |
1,354 |
|
|
3 |
% |
|
Purchase accounting adjustment to acquired deferred revenue |
2 |
|
|
3 |
|
A |
|
| Adjusted Revenue |
$ |
1,321 |
|
|
$ |
1,358 |
|
|
3 |
% |
| |
|
|
|
|
|
| Components of Adjusted Revenue Growth |
|
|
|
|
|
|
Organic |
|
|
|
|
2 |
% |
|
Acquisitions/Divestitures |
|
|
|
|
2 |
% |
|
Foreign Exchange |
|
|
|
|
(1 |
)% |
| Total Adjusted Revenue Growth |
|
|
|
|
3 |
% |
| |
|
|
|
|
|
| Adjusted Gross Profit Reconciliation |
|
|
|
|
|
| GAAP Gross Profit |
$ |
840 |
|
|
$ |
874 |
|
|
|
|
Purchase accounting adjustment to acquired deferred revenue |
2 |
|
|
3 |
|
A |
|
| Adjusted Gross Profit |
$ |
842 |
|
|
$ |
877 |
|
|
4 |
% |
| |
|
|
|
|
|
| GAAP Gross Margin |
63.7 |
% |
|
64.5 |
% |
|
+80 bps |
|
| Adjusted Gross Margin |
63.8 |
% |
|
64.6 |
% |
|
+80 bps |
|
| |
|
|
|
|
|
| Adjusted EBITDA Reconciliation |
|
|
|
|
|
| GAAP Net Earnings |
$ |
248 |
|
|
$ |
278 |
|
|
|
|
Taxes |
64 |
|
|
60 |
|
|
|
|
Interest Expense |
48 |
|
|
49 |
|
|
|
|
Depreciation |
12 |
|
|
12 |
|
|
|
|
Amortization |
83 |
|
|
94 |
|
|
|
| EBITDA |
455 |
|
|
493 |
|
|
8 |
% |
| |
|
|
|
|
|
|
Purchase accounting adjustment to acquired deferred revenue |
2 |
|
|
3 |
|
A |
|
|
Transaction-related expenses for completed acquisitions and
announced divestiture B |
— |
|
|
2 |
|
|
|
|
Debt extinguishment charge |
16 |
|
|
— |
|
|
|
| Adjusted EBITDA |
$ |
473 |
|
|
$ |
498 |
|
|
5 |
% |
|
% of Adjusted Revenue |
35.8 |
% |
|
36.7 |
% |
|
+90 bps |
|
|
|
|
|
|
|
|
|
|
| Table 2:
Adjusted Net Earnings Reconciliation ($M) C |
| |
|
|
|
|
|
| |
Q3 2018 |
|
Q3 2019 |
|
V % |
|
GAAP Net Earnings |
$ |
248 |
|
|
$ |
278 |
|
|
12 |
% |
|
Purchase accounting adjustment to acquired deferred revenue |
2 |
|
|
2 |
|
A |
|
|
Amortization of acquisition-related intangible assets D |
65 |
|
|
73 |
|
|
|
|
Transaction-related expenses for completed acquisitions and
announced divestiture B |
— |
|
|
2 |
|
|
|
|
Debt extinguishment charge |
13 |
|
|
— |
|
|
|
|
Adjustment to income tax expense related to the gain on sale of
Scientific Imaging businesses E |
— |
|
|
1 |
|
|
|
|
Adjustment to previously recognized deferred tax expense related to
new deal structure for divestiture of Gatan F |
— |
|
|
(10 |
) |
|
|
|
Measurement period adjustment to 2017 provisional income tax
amounts resulting from the Tax Cuts and Jobs Act |
(3 |
) |
|
— |
|
|
|
| Adjusted Net Earnings |
$ |
323 |
|
|
$ |
346 |
|
|
7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Table 3: Adjusted DEPS Reconciliation
C |
| |
|
|
|
|
|
| |
Q3 2018 |
|
Q3 2019 |
|
V % |
| GAAP DEPS |
$ |
2.37 |
|
|
$ |
2.64 |
|
|
11 |
% |
|
Purchase accounting adjustment to acquired deferred revenue |
0.02 |
|
|
0.02 |
|
A |
|
|
Amortization of acquisition-related intangible assets D |
0.62 |
|
|
0.70 |
|
|
|
|
Transaction-related expenses for completed acquisitions and
announced divestiture B |
— |
|
|
0.02 |
|
|
|
|
Debt extinguishment charge |
0.12 |
|
|
— |
|
|
|
|
Adjustment to income tax expense related to the gain on sale of
Scientific Imaging businesses E |
— |
|
|
0.01 |
|
|
|
|
Adjustment to previously recognized deferred tax expense related to
new deal structure for divestiture of Gatan F |
— |
|
|
(0.10 |
) |
|
|
|
Measurement period adjustment to 2017 provisional income tax
amounts resulting from the Tax Cuts and Jobs Act |
(0.03 |
) |
|
— |
|
|
|
|
Rounding |
(0.01 |
) |
|
— |
|
|
|
| Adjusted DEPS |
$ |
3.09 |
|
|
$ |
3.29 |
|
|
6 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Table 4:
Cash Flow Reconciliation ($M) |
| |
|
|
|
|
|
| |
Q3 2018 |
|
Q3 2019 |
|
V % |
|
Operating Cash Flow |
$ |
418 |
|
|
$ |
404 |
|
|
(3 |
)% |
|
Capital Expenditures |
(11 |
) |
|
(14 |
) |
|
|
|
Capitalized Software Expenditures |
(3 |
) |
|
(3 |
) |
|
|
| Adjusted Free Cash Flow |
$ |
404 |
|
|
$ |
387 |
|
|
(4 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
| Table 5:
Forecasted Adjusted DEPS Reconciliation C |
| |
|
|
|
|
|
| |
Q4 2019 |
|
FY 2019 |
| |
Low End |
|
High End |
|
Low End |
|
High End |
|
GAAP DEPS |
$ |
2.51 |
|
|
$ |
2.55 |
|
|
$ |
11.05 |
|
|
$ |
11.09 |
|
|
Purchase accounting adjustment to acquired deferred revenue G |
0.04 |
|
|
0.04 |
|
|
0.08 |
|
|
0.08 |
|
|
Amortization of acquisition-related intangible assets D |
0.77 |
|
|
0.77 |
|
|
2.74 |
|
|
2.74 |
|
|
Transaction-related expenses for completed acquisitions and
announced divestiture B |
— |
|
|
— |
|
|
0.04 |
|
|
0.04 |
|
|
Gain on sale of Scientific Imaging businesses H |
— |
|
|
— |
|
|
(0.83 |
) |
|
(0.83 |
) |
|
Adjustment to previously recognized deferred tax expense related to
new deal structure for divestiture of Gatan F |
— |
|
|
— |
|
|
(0.10 |
) |
|
(0.10 |
) |
| Adjusted DEPS |
$ |
3.32 |
|
|
$ |
3.36 |
|
|
$ |
12.98 |
|
|
$ |
13.02 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
| |
Q3 2018A |
|
Q3 2019A |
|
Q4 2019E |
|
FY 2019E |
|
Pretax |
$ |
82 |
|
|
$ |
93 |
|
|
$ |
103 |
|
|
$ |
364 |
|
| After-tax |
$ |
65 |
|
|
$ |
73 |
|
|
$ |
81 |
|
|
$ |
288 |
|
| Per share |
$ |
0.62 |
|
|
$ |
0.70 |
|
|
$ |
0.77 |
|
|
$ |
2.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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).
| |
Q4 19E |
|
FY 19E |
|
Pretax |
$ |
5 |
|
|
$ |
11 |
|
| After-tax |
$ |
4 |
|
|
$ |
9 |
|
| Per share |
$ |
0.04 |
|
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
H. Gain on sale of Scientific Imaging businesses
($120M pretax, $87M after-tax).
Note: Numbers may not foot due to rounding.
About Roper Technologies
Roper 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.
| Roper Technologies,
Inc. and Subsidiaries |
|
|
|
| Condensed
Consolidated Balance Sheets (unaudited) |
|
|
| (Amounts in
millions) |
|
|
|
| |
|
|
|
| |
September 30, 2019 |
|
December 31, 2018 |
| ASSETS: |
|
|
|
| |
|
|
|
|
Cash and cash equivalents |
$ |
323.0 |
|
|
$ |
364.4 |
|
|
Accounts receivable, net |
697.6 |
|
|
700.8 |
|
|
Inventories, net |
205.0 |
|
|
190.8 |
|
|
Income taxes receivable |
34.9 |
|
|
21.7 |
|
|
Unbilled receivables |
197.8 |
|
|
169.4 |
|
|
Other current assets |
101.5 |
|
|
80.0 |
|
|
Current assets held for sale |
59.6 |
|
|
83.6 |
|
|
Total current assets |
1,619.4 |
|
|
1,610.7 |
|
|
|
|
|
|
|
Property, plant and equipment, net |
142.6 |
|
|
128.7 |
|
|
Goodwill |
10,746.7 |
|
|
9,346.8 |
|
|
Other intangible assets, net |
4,730.8 |
|
|
3,842.1 |
|
|
Deferred taxes |
91.1 |
|
|
52.2 |
|
|
Other assets |
393.8 |
|
|
101.1 |
|
|
Assets held for sale |
94.7 |
|
|
167.9 |
|
|
|
|
|
|
|
Total assets |
$ |
17,819.1 |
|
|
$ |
15,249.5 |
|
| |
|
|
|
| LIABILITIES AND STOCKHOLDERS'
EQUITY: |
|
|
|
| |
|
|
|
|
Accounts payable |
$ |
156.8 |
|
|
$ |
165.3 |
|
|
Accrued compensation |
204.3 |
|
|
248.3 |
|
|
Deferred revenue |
745.7 |
|
|
677.9 |
|
|
Other accrued liabilities |
324.3 |
|
|
258.0 |
|
|
Income taxes payable |
35.4 |
|
|
58.3 |
|
|
Current portion of long-term debt, net |
2.9 |
|
|
1.5 |
|
|
Current liabilities held for sale |
31.5 |
|
|
38.9 |
|
|
Total current liabilities |
1,500.9 |
|
|
1,448.2 |
|
| |
|
|
|
|
Long-term debt, net of current portion |
6,195.1 |
|
|
4,940.2 |
|
|
Deferred taxes |
1,099.7 |
|
|
931.1 |
|
|
Other liabilities |
437.7 |
|
|
191.5 |
|
|
Liabilities held for sale |
14.4 |
|
|
— |
|
|
Total liabilities |
9,247.8 |
|
|
7,511.0 |
|
| |
|
|
|
|
Common stock |
1.1 |
|
|
1.1 |
|
|
Additional paid-in capital |
1,873.3 |
|
|
1,751.5 |
|
|
Retained earnings |
7,000.3 |
|
|
6,247.7 |
|
|
Accumulated other comprehensive loss |
(285.1 |
) |
|
(243.3 |
) |
|
Treasury stock |
(18.3 |
) |
|
(18.5 |
) |
|
Total stockholders' equity |
8,571.3 |
|
|
7,738.5 |
|
| |
|
|
|
|
Total liabilities and stockholders' equity |
$ |
17,819.1 |
|
|
$ |
15,249.5 |
|
|
|
|
|
|
|
|
|
|
| Roper
Technologies, Inc. and Subsidiaries |
|
|
|
|
|
| Condensed
Consolidated Statements of Earnings (unaudited) |
|
|
|
| (Amounts in millions,
except per share data) |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Three months ended September 30, |
|
Nine months ended September 30, |
| |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Net revenues |
$ |
1,354.5 |
|
|
$ |
1,318.7 |
|
|
$ |
3,972.0 |
|
|
$ |
3,814.9 |
|
| Cost of sales |
480.9 |
|
|
478.7 |
|
|
1,437.8 |
|
|
1,408.5 |
|
| Gross profit |
873.6 |
|
|
840.0 |
|
|
2,534.2 |
|
|
2,406.4 |
|
| |
|
|
|
|
|
|
|
| Selling, general and
administrative expenses |
488.4 |
|
|
462.5 |
|
|
1,434.2 |
|
|
1,374.4 |
|
| Income from operations |
385.2 |
|
|
377.5 |
|
|
1,100.0 |
|
|
1,032.0 |
|
| |
|
|
|
|
|
|
|
| Interest expense, net |
48.8 |
|
|
48.4 |
|
|
137.6 |
|
|
134.8 |
|
| Loss on debt
extinguishment |
— |
|
|
15.9 |
|
|
— |
|
|
15.9 |
|
| Other income (expense),
net |
1.5 |
|
|
(1.6 |
) |
|
(2.6 |
) |
|
(1.0 |
) |
| Gain on disposal of
business |
— |
|
|
— |
|
|
119.6 |
|
|
— |
|
| |
|
|
|
|
|
|
|
| Earnings before income
taxes |
337.9 |
|
|
311.6 |
|
|
1,079.4 |
|
|
880.3 |
|
| |
|
|
|
|
|
|
|
| Income taxes |
60.4 |
|
|
64.0 |
|
|
182.6 |
|
|
193.0 |
|
| |
|
|
|
|
|
|
|
| Net earnings |
$ |
277.5 |
|
|
$ |
247.6 |
|
|
$ |
896.8 |
|
|
$ |
687.3 |
|
| |
|
|
|
|
|
|
|
| Net earnings per share: |
|
|
|
|
|
|
|
|
Basic |
$ |
2.67 |
|
|
$ |
2.39 |
|
|
$ |
8.64 |
|
|
$ |
6.66 |
|
|
Diluted |
$ |
2.64 |
|
|
$ |
2.37 |
|
|
$ |
8.54 |
|
|
$ |
6.58 |
|
| |
|
|
|
|
|
|
|
| Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
104.0 |
|
|
103.4 |
|
|
103.8 |
|
|
103.2 |
|
|
Diluted |
105.2 |
|
|
104.6 |
|
|
105.0 |
|
|
104.4 |
|
|
|
|
|
|
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|
|
|
|
|
|
|
| Roper
Technologies, Inc. and Subsidiaries |
| Selected
Segment Financial Data (unaudited) |
| (Amounts
in millions; percentages of net revenues) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
| |
2019 |
|
2018 |
|
2019 |
|
2018 |
| |
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
| Net
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Application Software |
$ |
405.4 |
|
|
|
|
$ |
378.3 |
|
|
|
|
$ |
1,177.2 |
|
|
|
|
$ |
1,060.4 |
|
|
|
|
Network Software & Systems |
391.2 |
|
|
|
|
341.9 |
|
|
|
|
1,103.7 |
|
|
|
|
989.7 |
|
|
|
|
Measurement & Analytical Solutions |
398.3 |
|
|
|
|
429.6 |
|
|
|
|
1,208.5 |
|
|
|
|
1,259.4 |
|
|
|
|
Process Technologies |
159.6 |
|
|
|
|
168.9 |
|
|
|
|
482.6 |
|
|
|
|
505.4 |
|
|
|
|
Total |
$ |
1,354.5 |
|
|
|
|
$ |
1,318.7 |
|
|
|
|
$ |
3,972.0 |
|
|
|
|
$ |
3,814.9 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross
profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Application Software |
$ |
275.4 |
|
|
67.9 |
% |
|
$ |
255.7 |
|
|
67.6 |
% |
|
$ |
791.5 |
|
|
67.2 |
% |
|
$ |
712.5 |
|
|
67.2 |
% |
|
Network Software & Systems |
271.9 |
|
|
69.5 |
% |
|
236.7 |
|
|
69.2 |
% |
|
763.6 |
|
|
69.2 |
% |
|
674.8 |
|
|
68.2 |
% |
|
Measurement & Analytical Solutions |
234.7 |
|
|
58.9 |
% |
|
253.2 |
|
|
58.9 |
% |
|
706.1 |
|
|
58.4 |
% |
|
737.1 |
|
|
58.5 |
% |
|
Process Technologies |
91.6 |
|
|
57.4 |
% |
|
94.4 |
|
|
55.9 |
% |
|
273.0 |
|
|
56.6 |
% |
|
282.0 |
|
|
55.8 |
% |
|
Total |
$ |
873.6 |
|
|
64.5 |
% |
|
$ |
840.0 |
|
|
63.7 |
% |
|
$ |
2,534.2 |
|
|
63.8 |
% |
|
$ |
2,406.4 |
|
|
63.1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
profit*: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Application Software |
$ |
110.1 |
|
|
27.2 |
% |
|
$ |
97.7 |
|
|
25.8 |
% |
|
$ |
299.9 |
|
|
25.5 |
% |
|
$ |
265.6 |
|
|
25.0 |
% |
|
Network Software & Systems |
137.5 |
|
|
35.1 |
% |
|
128.1 |
|
|
37.5 |
% |
|
392.0 |
|
|
35.5 |
% |
|
349.7 |
|
|
35.3 |
% |
|
Measurement & Analytical Solutions |
127.0 |
|
|
31.9 |
% |
|
136.1 |
|
|
31.7 |
% |
|
375.4 |
|
|
31.1 |
% |
|
379.8 |
|
|
30.2 |
% |
|
Process Technologies |
55.5 |
|
|
34.8 |
% |
|
57.0 |
|
|
33.7 |
% |
|
162.8 |
|
|
33.7 |
% |
|
164.9 |
|
|
32.6 |
% |
|
Total |
$ |
430.1 |
|
|
31.8 |
% |
|
$ |
418.9 |
|
|
31.8 |
% |
|
$ |
1,230.1 |
|
|
31.0 |
% |
|
$ |
1,160.0 |
|
|
30.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Segment operating profit is before unallocated corporate general
and administrative expenses; these expenses were $44.9 and $41.4
for the three months ended September 30, 2019 and 2018,
respectively, and $130.1 and $128.0 for
the nine months ended September 30, 2019 and
2018, respectively. |
|
|
| Roper
Technologies, Inc. and Subsidiaries |
|
| Condensed
Consolidated Statements of Cash Flows (unaudited) |
| (Amounts
in millions) |
| |
|
|
|
| |
Nine months ended September 30, |
| |
2019 |
|
2018 |
| Cash flows from operating
activities: |
|
|
|
|
Net earnings |
$ |
896.8 |
|
|
$ |
687.3 |
|
|
Adjustments to reconcile net earnings to cash flows from operating
activities: |
|
|
|
|
Depreciation and amortization of property, plant and equipment |
35.9 |
|
|
37.3 |
|
|
Amortization of intangible assets |
263.2 |
|
|
235.6 |
|
|
Amortization of deferred financing costs |
5.2 |
|
|
4.6 |
|
|
Non-cash stock compensation |
80.4 |
|
|
81.1 |
|
|
Loss on debt extinguishment |
— |
|
|
15.9 |
|
|
Gain on disposal of businesses, net of associated income tax |
(87.4 |
) |
|
— |
|
|
Changes in operating assets and liabilities, net of acquired
businesses: |
|
|
|
|
Accounts receivable |
52.1 |
|
|
(30.1 |
) |
|
Unbilled receivables |
(26.6 |
) |
|
(20.1 |
) |
|
Inventories |
(25.2 |
) |
|
(30.4 |
) |
|
Accounts payable and accrued liabilities |
(59.2 |
) |
|
17.6 |
|
|
Deferred revenue |
26.5 |
|
|
32.4 |
|
|
Income taxes, excluding tax associated with gain on disposal of
businesses |
(104.6 |
) |
|
(59.3 |
) |
|
Cash tax paid for gain on disposal of businesses |
(39.4 |
) |
|
— |
|
|
Other, net |
(22.1 |
) |
|
(5.9 |
) |
|
Cash provided by operating activities |
995.6 |
|
|
966.0 |
|
| |
|
|
|
| Cash flows used in investing
activities: |
|
|
|
|
Acquisitions of businesses, net of cash acquired |
(2,351.9 |
) |
|
(1,188.3 |
) |
|
Capital expenditures |
(42.2 |
) |
|
(34.2 |
) |
|
Capitalized software expenditures |
(7.7 |
) |
|
(7.2 |
) |
|
Proceeds from disposal of business |
220.5 |
|
|
— |
|
|
Other, net |
(2.5 |
) |
|
(0.7 |
) |
|
Cash used in investing activities |
(2,183.8 |
) |
|
(1,230.4 |
) |
| |
|
|
|
| Cash flows from (used in)
financing activities: |
|
|
|
|
Proceeds from senior notes |
1,200.0 |
|
|
1,500.0 |
|
|
Payment of senior notes |
— |
|
|
(500.0 |
) |
|
Borrowings (payments) under revolving line of credit, net |
60.0 |
|
|
(930.0 |
) |
|
Debt issuance costs |
(12.0 |
) |
|
(12.8 |
) |
|
Redemption premium for debt extinguishment |
— |
|
|
(15.5 |
) |
|
Cash dividends to stockholders |
(143.5 |
) |
|
(126.7 |
) |
|
Proceeds from stock-based compensation, net |
38.8 |
|
|
46.6 |
|
|
Treasury stock sales |
5.2 |
|
|
4.1 |
|
|
Other |
3.6 |
|
|
(6.5 |
) |
|
Cash provided by (used in) financing activities |
1,152.1 |
|
|
(40.8 |
) |
| |
|
|
|
| Effect of foreign currency
exchange rate changes on cash |
(5.3 |
) |
|
(2.7 |
) |
| |
|
|
|
| Net decrease in cash and cash
equivalents |
(41.4 |
) |
|
(307.9 |
) |
| |
|
|
|
| Cash and cash equivalents,
beginning of period |
364.4 |
|
|
671.3 |
|
| |
|
|
|
| Cash and cash equivalents, end of
period |
$ |
323.0 |
|
|
$ |
363.4 |
|
| |
|
|
|
|
|
|
|
Contact Information: Investor
Relations941-556-2601 investor-relations@ropertech.com
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