SARASOTA, Fla., April 26 /PRNewswire-FirstCall/ -- Roper Industries, Inc. reported record results for its first quarter ended March 31, 2007. Diluted earnings per share (DEPS) were $0.56, an increase of 33% over the comparable period in the prior year. Current year results include the dilutive effect from the Company's senior subordinated convertible notes. Net sales were up 25% to $478 million, which included 14% internal growth with 2% favorable foreign currency effect. Net orders increased 26% to $493 million, which included 16% internal growth with 2% favorable foreign currency effect. Net Earnings increased 36% to $51 million and EBITDA increased 33% to $115 million, or 24.1% of sales.
"We are pleased with the continued sales and orders growth in our businesses, reflecting strength throughout the company," said Brian Jellison, Roper's Chairman, President and CEO. "Orders once again exceeded sales and our record backlog gives us confidence as we enter the second quarter. In particular, Neptune orders and sales set records for the quarter and the RF Segment benefited from margin improvements and a better mix of product sales. Dynisco and our other acquisitions performed well in the quarter, and we continued to see the positive effects of our focus on secular, less-cyclical markets. Operating margins increased 180 basis points to 19.4%, even with the impact of acquisition accounting at Dynisco."
The Company completed three acquisitions in the first quarter: JLT, a provider of rugged computers and software for mobile computing applications; DJ Instruments, a producer of sensors for life science applications which immediately complements the Dynisco business; and Roda Deaco, a manufacturer of air cutoff valves to protect high value assets for energy customers with an existing focus on the Western Canadian oil sands development. Mr. Jellison commented, "We invested $70 million in the quarter to acquire businesses that we expect to generate EBITDA over the next twelve months in excess of $9 million on sales of $40 million. These acquisitions add growth opportunities to our existing businesses by expanding their global reach and adding key product capabilities."
"We are excited about the prospects for the year," continued Mr. Jellison. "There are growth opportunities in all our segments and the pipeline for additional acquisitions remains very active. We expect continued strong performance throughout 2007."
As a result of its strong first quarter performance, Roper is increasing its full year DEPS guidance from $2.50-$2.62 to $2.54-$2.64, and establishing second quarter DEPS guidance of $0.63-$0.65. The Company now expects full year EBITDA in excess of $510 million and operating cash flow of $310 million or more. The Company's guidance does not include benefits from future acquisitions, but does include the dilutive effect of the Company's senior subordinated convertibles notes based on the stock price on March 30, 2007.
Conference Call to be Held at 10:00 AM (ET) Tomorrow
A conference call to discuss these results has been scheduled for 10:00 AM ET on Friday, April 27, 2007. The call can be accessed via webcast or by dialing (888) 202-2422 or +1 (913) 981-5592, using access code 6303304. Webcast information and conference call materials will be made available in the "Investor" section of Roper's website (http://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 6303304.
Table 1: EBITDA (millions)
Q1 Q1
2006 2007
Net Earnings 38 51
Add: Interest Expense 11 13
Add: Income Taxes 19 28
Add: Depreciation and 19 23
Amortization
Rounding (1) 0
EBITDA 86 115
About Roper Industries
Roper Industries is a market-driven, diversified growth company with trailing twelve month revenues of $1.8 billion, and is a component of the Fortune 1000, S&P MidCap 400 and the Russell 1000 Indexes. Roper provides engineered products and solutions for global niche markets, including water, energy, radio frequency and research/medical applications. Additional information about Roper Industries is available on the Company's website at http://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, 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)
March 31, December 31,
ASSETS 2007 2006
CURRENT ASSETS:
Cash and cash equivalents $80,442 $69,478
Accounts receivable 319,249 324,514
Inventories 186,161 168,319
Deferred taxes 17,488 17,908
Other current assets 53,230 47,276
Total current assets 656,570 627,495
PROPERTY, PLANT AND EQUIPMENT, NET 106,516 107,003
OTHER ASSETS:
Goodwill 1,661,551 1,651,208
Other intangible assets, net 617,415 544,136
Deferred taxes 20,120 21,702
Other assets 41,803 43,815
Total other assets 2,340,889 2,260,861
TOTAL ASSETS $3,103,975 $2,995,359
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $100,012 $96,139
Accrued liabilities 168,602 184,148
Income taxes payable 16,192 5,896
Deferred taxes 1,438 1,555
Current portion of long-term debt 307,945 299,911
Total current liabilities 594,189 587,649
NONCURRENT LIABILITIES:
Long-term debt 748,084 726,881
Deferred taxes 197,169 169,994
Other liabilities 26,362 23,996
Total liabilities 1,565,804 1,508,520
STOCKHOLDERS' EQUITY:
Common stock 905 900
Additional paid-in capital 725,910 717,751
Retained earnings 764,086 721,899
Accumulated other comprehensive earnings 69,532 68,666
Treasury stock (22,262) (22,377)
Total stockholders' equity 1,538,171 1,486,839
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $3,103,975 $2,995,359
Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (unaudited)
(Amounts in thousands, except per share data)
Three months ended
March 31,
2007 2006
Net sales $478,427 $382,723
Cost of sales 240,279 190,326
Gross profit 238,148 192,397
Selling, general and administrative
expenses 145,297 124,921
Income from operations 92,851 67,476
Interest expense 13,472 10,799
Other income/(expense) (250) (128)
Earnings from continuing operations
before income taxes 79,129 56,549
Income taxes 27,695 18,863
Net Earnings $51,434 $37,686
Earnings per share:
Basic $0.59 $0.44
Diluted $0.56 $0.42
Weighted average common and common
equivalent shares outstanding:
Basic 87,918 86,061
Diluted 92,300 89,711
Roper Industries, Inc. and Subsidiaries
Selected Segment Financial Data (unaudited)
(Amounts in thousands and percents of net sales)
Three months ended March 31,
2007 2006
Amount % Amount %
Net sales:
Industrial Technology $154,506 $124,797
Energy Systems & Controls 103,975 68,709
Scientific & Industrial Imaging 92,028 80,778
RF Technology 127,918 108,439
Total $478,427 $382,723
Gross profit:
Industrial Technology $73,429 47.5% $60,858 48.8%
Energy Systems & Controls 53,443 51.4% 36,023 52.4%
Scientific & Industrial
Imaging 51,221 55.7% 44,496 55.1%
RF Technology 60,055 46.9% 51,020 47.0%
Total $238,148 49.8% $192,397 50.3%
Operating profit*:
Industrial Technology $38,110 24.7% $27,568 22.1%
Energy Systems & Controls 19,818 19.1% 14,932 21.7%
Scientific & Industrial
Imaging 19,388 21.1% 15,844 19.6%
RF Technology 25,069 19.6% 18,428 17.0%
Total $102,385 21.4% $76,772 20.1%
Net Orders:
Industrial Technology $162,762 $135,003
Energy Systems & Controls 108,063 64,419
Scientific & Industrial Imaging 96,372 80,075
RF Technology 125,799 113,106
Total $492,996 $392,603
* Operating profit is before unallocated corporate general and
administrative expenses. Such expenses were $9,534 and $9,296 for
the three months ended March 31, 2007 and 2006, respectively.
Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(Amounts in thousands)
Three months ended
March 31,
2007 2006
Net earnings $51,434 $37,686
Depreciation 7,656 6,624
Amortization 14,971 12,385
Other, net (16,973) 635
Cash provided by operating activities 57,088 57,330
Business acquisitions, net of cash
acquired (69,735) (5,838)
Capital expenditures (6,056) (9,772)
Other, net (326) (910)
Cash used by investing activities (76,117) (16,520)
Debt borrowings (payments), net 28,348 (30,510)
Dividends (5,692) (5,046)
Other, net 6,701 8,379
Cash provided by (used by)
financing activities 29,357 (27,177)
Effect of exchange rate changes on cash 636 408
Net increase in cash and equivalents 10,964 14,041
Cash and equivalents, beginning of
period 69,478 53,116
Cash and equivalents, end of period $80,442 $67,157
