GAAP Revenue Increased 20%; Adjusted Revenue Increased 22%

Operating Cash Flow Increased to $378 Million

SARASOTA, Fla., April 28, 2017 (GLOBE NEWSWIRE) -- Roper Technologies, Inc. (NYSE:ROP), a diversified technology company, reported financial results for the first quarter ended March 31, 2017.

Roper reports results - including revenue, operating margin, net income and diluted earnings per share - on a GAAP basis and an adjusted basis. 

First quarter GAAP revenue increased 20% to $1.09 billion and adjusted revenue grew 22% to $1.11 billion.  GAAP diluted earnings per share (DEPS) were $1.53 (+3%), while adjusted diluted earnings per share increased 17% to $2.11.

GAAP gross margin was 61.5% while adjusted gross margin was 62.2%. Operating cash flow increased to $378 million and adjusted EBITDA increased 18% to $362 million. 

"Our businesses performed exceptionally well in the first quarter," said Brian Jellison, Roper's Chairman, President and CEO.  "Our significant revenue increase included 5% organic growth, as our software and medical businesses continued their strong performance and we benefited from improvement in industrial and energy markets. Growth was broad-based as revenue in each of our four segments increased organically in the quarter."

"Our cash flow performance was outstanding in the quarter with significant contributions from our recent application software acquisitions, Deltek and ConstructConnect, as well as strong execution across the enterprise. We are very pleased by our great start to 2017," concluded Mr. Jellison.

2017 Guidance

Roper is raising its full year 2017 guidance. The Company now expects full year Adjusted DEPS of $8.98 - $9.28, compared to previous guidance of $8.82 - $9.22.

For the second quarter of 2017, the Company expects Adjusted DEPS to be between $2.16 and $2.24.

The Company's guidance excludes the impact of future acquisitions or divestitures.

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 Friday, April 28, 2017.  The call can be accessed via webcast or by dialing +1 877-857-6149 (US/Canada) or +1 719-325-4845, using confirmation code 4090618.  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 http://edge.media-server.com/m/p/skmkjsqe.  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 4090618.

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 ($M)
    Q1 2017     Q1 2016     V %  
GAAP Revenue   $ 1,086     $ 902      20 %    
Purchase accounting adjustment toacquired deferred revenue A,B     22   A   3   B      
Rounding           1          
Adjusted Revenue   $ 1,108     $ 906     22 %    
                     
Components of Adjusted Revenue Growth                    
Organic               5 %    
Acquisitions               +18 %    
Foreign Exchange               (1 %)    
Total Adjusted Revenue Growth               22 %    

Table 2:  Reconciliation of Q1 2017 GAAP DEPS to Adjusted DEPS
    Q1 2017     Q1 2016    
GAAP Diluted Earnings Per Share (DEPS)   $ 1.53       $ 1.48    
Purchase accounting adjustment to acquired deferredrevenue A,B     0.14     A   0.02   B
Purchase accounting adjustment for commissionexpense C     (0.01 )   C   -    
Acquisition-related inventory step-up charge D     -         0.00   D
Amortization of Acquisition-related intangible assets,after tax F     0.45     F   0.31   F
               
Adjusted DEPS   $ 2.11       $ 1.81    

Table 3:  Q1 Free Cash Flow Reconciliation ($M)
    Q1 2017   Q1 2016   V %  
GAAP Operating Cash Flow   $ 378     $ 207      + 83 %    
Cash taxes related to 2015 sale of AbelPump         37          
Rounding         1          
Adjusted Operating Cash Flow   $ 378     $ 245     + 55 %    
Capital expenditures     (15 )     (9 )        
Capitalized software expenditures     (3 )     (1 )        
Rounding     -       (1 )        
Adjusted Free Cash Flow   $ 360     $ 234     + 54 %    

Table 4:  Adjusted Gross Margin Reconciliation ($M)
    Q1 2017     Q1 2016     V Bps  
GAAP Revenue   $ 1,086       $ 902            
Purchase accounting adjustment toacquired deferred revenue A,B     22     A   3     B      
Rounding           1            
Adjusted Revenue   $ 1,108       $ 906            
                     
GAAP Gross Profit   $ 668       $ 560            
Purchase accounting adjustment toacquired deferred revenue A,B     22     A   3     B      
Rounding     (1 )                
Adjusted Gross Profit   $ 689       $ 563            
                     
GAAP Gross Margin     61.5 %       62.0 %     (50) bps    
Adjusted Gross Margin     62.2 %       62.1 %     + 10 bps    

Table 5:  Q1 EBITDA Reconciliation ($M)
    Q1 2017   Q1 2016   V%
GAAP Revenue   $ 1,086     $ 902      
Purchase accounting adjustment to acquired deferredrevenue A,B     22   A   3   B  
Rounding         1      
Adjusted Revenue   $ 1,108     $ 906      
             
GAAP Net Earnings   $ 158     $ 151      
Taxes     53       66      
Interest expense     46       27      
Depreciation     12       10      
Amortization     73       50      
Purchase accounting adjustment to acquired deferredrevenue, pretax A,B     22   A   3   B  
Purchase accounting adjustment for commissionexpense, pretax C     (2 )        
Acquisition-related inventory step-up charge, pretax D     -       0   D  
Rounding     -       -      
Adjusted EBITDA   $ 362     $ 307     +18 %
% of Adjusted Revenue     32.7 %     34.0 %    

Table 6:  Forecasted Diluted Earnings Per Share (DEPS)
    Q2 2017     Full Year 2017    
    Low End     High End     Low End     High End    
GAAP DEPS   $ 1.62     $ 1.70     $ 6.86     $ 7.16    
Purchase accounting adjustments toacquired deferred revenue andcommissions E     0.09   E   0.09   E   0.32   E   0.32   E
Amortization of acquisition-relatedintangible assets, after-tax F     0.45   F   0.45   F   1.80   F   1.80   F
Adjusted DEPS   $ 2.16     $ 2.24     $ 8.98     $ 9.28    
                           

A  Acquisition-related fair value adjustments to deferred revenue related to the acquisitions of CliniSys ($0.0M pretax, $0.0M after-tax), ConstructConnect ($5.3M pretax, $3.4M after-tax) and Deltek ($16.3M pretax, $10.6M after-tax).

B  Acquisition-related fair value adjustments to deferred revenue related to the acquisitions of Strata ($0.2M pretax, $0.1M after-tax), Softwriters ($0.0M pretax, $0.0M after-tax), Data Innovations ($0.7M pre-tax, $0.4M after-tax), On Center Software ($0.4M pretax, $0.3M after-tax), Aderant ($1.8M pretax, $1.2M after-tax), Atlas Medical ($0.1M pretax, $0.0M after-tax) and CliniSys ($0.1M pretax, $0.1M after-tax)

C  Purchase Accounting Adjustment for Commission Expense related to the acquisition of Deltek ($1.8M pretax, $1.2M after-tax),  

D  Acquisition-related inventory step-up charge related to the acquisition of PCI Medical ($0.1M pretax, $0.1M after-tax)

E  Forecasted acquisition-related fair value adjustments to acquired deferred revenue and commissions of ConstructConnect and Deltek, as shown below ($M, except per share data)
    Q2 2017   FY 2017
Pretax   $ 15   $ 51
After-tax   $ 10   $ 33
Per Share   $ 0.09   $ 0.32

F Actual results and forecast of estimated amortization of acquisition-related intangible assets ($M); For comparison purposes, prior period amounts are also shown below. Tax Rate of 35% applied to amortization in all periods.
    Q1 2016A   Q2 2016A   FY 2016A     Q1 2017A   Q2 2017E   FY 2017E
Pretax   $ 49   $ 50   $ 201   $ 72   $ 72   $ 286
After-tax   $ 32   $ 32   $ 131   $ 47   $ 47   $ 186
Per share   $ 0.31   $ 0.31   $ 1.27   $ 0.45   $ 0.45   $ 1.80

About Roper Technologies

Roper Technologies is a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices. Roper designs and develops software (both software-as-a-service and licensed), and engineered products and solutions for healthcare, transportation, food, energy, water, education and other niche markets worldwide. 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 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 Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(Amounts in thousands)
       
       
  March 31,   December 31,
ASSETS 2017   2016
       
CURRENT ASSETS:      
Cash and cash equivalents $ 730,666     $ 757,200  
Accounts receivable   549,838       619,854  
Inventories   191,426       181,952  
Unbilled receivable   143,589       129,965  
Other current assets   97,104       87,530  
Total current assets   1,712,623       1,776,501  
       
PROPERTY, PLANT AND EQUIPMENT, NET   144,113       141,318  
       
OTHER ASSETS:      
Goodwill and other intangible assets, net   12,268,952       12,302,985  
Deferred taxes   30,300       30,620  
Other assets   74,066       73,503  
Total other assets   12,373,318       12,407,108  
       
TOTAL ASSETS $ 14,230,054     $ 14,324,927  
       
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
       
CURRENT LIABILITIES:      
Accounts payable $ 152,638     $ 152,067  
Accrued compensation   131,584       161,730  
Deferred revenue   513,820       488,399  
Other accrued liabilities   251,298       219,339  
Income taxes payable   88,126       22,762  
Current portion of long-term debt   401,072       400,975  
Total current liabilities   1,538,538       1,445,272  
       
NONCURRENT LIABILITIES:      
Long-term debt   5,439,700       5,808,561  
Deferred taxes   1,169,151       1,178,205  
Other liabilities   111,875       104,024  
Total liabilities   8,259,264       8,536,062  
       
STOCKHOLDERS' EQUITY:      
Common stock   1,039       1,036  
Additional paid-in capital   1,518,213       1,489,067  
Retained earnings   4,764,711       4,642,402  
Accumulated other comprehensive earnings   (294,327 )     (324,739 )
Treasury stock   (18,846 )     (18,901 )
Total stockholders' equity   5,970,790       5,788,865  
       
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 14,230,054     $ 14,324,927  
       

Roper Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (unaudited)
(Amounts in thousands, except per share data)
         
         
    Three months ended
    March 31,
    2017   2016
         
Net sales   $ 1,086,305     $ 902,423  
Cost of sales     418,691       342,904  
         
Gross profit     667,614       559,519  
         
Selling, general and administrative expenses     409,358       314,528  
         
Income from operations     258,256       244,991  
         
Interest expense     45,865       27,413  
Other expense     (1,047 )     (129 )
         
Earnings from continuing operations before income taxes     211,344       217,449  
         
Income taxes     53,273       66,033  
         
Net Earnings   $ 158,071     $ 151,416  
         
         
         
Earnings per share:        
Basic   $ 1.55     $ 1.50  
Diluted   $ 1.53     $ 1.48  
         
Weighted average common and common equivalent shares outstanding:        
Basic     101,885       101,071  
Diluted     103,078       102,318  
         

 
Roper Technologies, Inc. and Subsidiaries
Selected Segment Financial Data (unaudited)
(Amounts in thousands and percents of net sales)
                 
                 
    Three months ended March 31,
    2017   2016
    Amount   %   Amount   %
Net sales:                
Medical & Scientific Imaging   $ 348,235       $ 332,214    
RF Technology     429,619         280,210    
Industrial Technology     183,404         171,235    
Energy Systems & Controls     125,047         118,764    
Total   $ 1,086,305       $ 902,423    
                 
                 
Gross profit:                
Medical & Scientific Imaging   $ 251,930   72.3 %   $ 246,897   74.3 %
RF Technology     251,478   58.5 %     160,365   57.2 %
Industrial Technology     93,151   50.8 %     86,020   50.2 %
Energy Systems & Controls     71,055   56.8 %     66,237   55.8 %
Total   $ 667,614   61.5 %   $ 559,519   62.0 %
                 
                 
Operating profit*:                
Medical & Scientific Imaging   $ 119,793   34.4 %   $ 114,456   34.5 %
RF Technology     88,984   20.7 %     88,766   31.7 %
Industrial Technology     53,613   29.2 %     46,759   27.3 %
Energy Systems & Controls     30,236   24.2 %     24,182   20.4 %
Total   $ 292,626   26.9 %   $ 274,163   30.4 %
                 
                 
Net Orders:                
Medical & Scientific Imaging   $ 350,777       $ 343,850    
RF Technology     441,289         281,125    
Industrial Technology     195,316         178,905    
Energy Systems & Controls     126,727         122,770    
Total   $ 1,114,109       $ 926,650    
                 
                 
*  Operating profit is before unallocated corporate general and administrative expenses.  These expenses were $34,370 and $29,172 for the three months ended March 31, 2017 and 2016, respectively.
                 

 
Roper Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(Amounts in thousands)
         
         
    Three months ended
    March 31,
    2017   2016
         
Net earnings   $ 158,071     $ 151,416  
Non-cash items:        
Depreciation     12,377       9,702  
Amortization     72,998       49,549  
Stock-based compensation expense     21,049       18,979  
Income taxes     39,013       20,127  
Changes in assets and liabilities:        
Receivables     59,536       (14,059 )
Inventory     (7,905 )     (3,907 )
Accounts payable     (2,009 )     (1,273 )
Accrued liabilities     34,094       (18,458 )
Other, net     (9,007 )     (5,004 )
Cash provided by operating activities     378,217       207,072  
         
Business acquisitions, net of cash acquired     (2,829 )     (265,248 )
Capital expenditures     (14,930 )     (9,489 )
Capitalized software expenditures     (3,169 )     (665 )
Other, net     (391 )     1,446  
Cash used in investing activities     (21,319 )     (273,956 )
         
Principal debt payments     -       (289 )
Revolver payments, net     (370,000 )     (160,000 )
Dividends     (35,443 )     (30,173 )
Proceeds from stock-based compensation, net     7,576       690  
Premium on convertible debt conversions     -       (915 )
Other, net     782       505  
Cash used in financing activities     (397,085 )     (190,182 )
         
Effect of exchange rate changes on cash     13,653       1,588  
         
Net decrease in cash and equivalents     (26,534 )     (255,478 )
Cash and equivalents, beginning of period     757,200       778,511  
         
Cash and equivalents, end of period     730,666       523,033  
         

Contact Information:Investor Relations941-556-2601investor-relations@ropertech.com

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