SARASOTA, Fla., July 26 /PRNewswire-FirstCall/ -- Roper Industries, Inc. reported results for its second quarter ended June 30, 2007 that exceeded performance in any quarter in the Company's history. Diluted earnings per share (DEPS) were $0.66 compared to $0.53 in the second quarter of 2006. Net earnings were up 27% to $61 million. Second quarter sales were $531 million, an increase of 25% over the comparable period in the prior year. Excluding acquisitions, internal sales increased 15%. Net orders were $533 million, an increase of $100 million over the second quarter of 2006; excluding acquisitions, internal orders were up 14%.
"Roper's orders exceeded sales for the sixth straight quarter, and we achieved exceptional internal sales and orders growth," said Brian Jellison, Roper's Chairman, President and CEO. "The combination of this growth and our strong operating performance enabled us to increase EBITDA to a record $130 million, and deliver operating cash flow of $78 million, an increase of 62% over the second quarter of 2006. Operating income reached a record $108 million this quarter despite certain one-time costs in the Imaging Segment which reduced its operating margins in the quarter."
In the second quarter, Roper acquired Dynamic and Hardy Instruments, leading providers of vibration monitoring and process control sensor technology for broad based customer applications. Mr. Jellison commented, "The addition of Dynamic and Hardy Instruments expands solution capabilities in our protective technology businesses. This $31 million dollar investment is expected to generate more than $4 million in EBITDA in the next twelve months. We have deployed $101 million for acquisitions through the first half of 2007 and continue to have an active pipeline of opportunities."
As a result of its strong second quarter performance and outlook for the remainder of the year, Roper is increasing its full year DEPS guidance from $2.54-$2.64 to $2.60-$2.66. Roper is also increasing its full year EBITDA guidance from $510+ million to $520+ million. The Company is establishing third quarter DEPS guidance of $0.67-$0.69. The Company's guidance does not include benefits from future acquisitions, but does include the dilutive effect of the Company's senior subordinated convertible notes based on the stock price on June 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, July 27, 2007. The call can be accessed via webcast or by dialing (800) 565-5442 or +1 (913) 312-1298, using access code 2074673. 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 2074673.
Table 1: EBITDA (Millions)
2007
Q2 Q2 Full
2006 2007 Year
Estimates
Net Earnings $48 $61 $242+
Add: Interest Expense 11 13 54
Add: Income Taxes 26 32 129+
Add: Depreciation and 20 24 95
Amortization
Rounding 1 0 0
EBITDA 106 130 520+
About Roper Industries
Roper Industries is a market-driven, diversified growth company with trailing twelve month revenues of $1.9 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)
June 30, December 31,
ASSETS 2007 2006
CURRENT ASSETS:
Cash and cash equivalents $120,104 $69,478
Accounts receivable 330,824 324,514
Inventories 181,304 168,319
Deferred taxes 19,173 17,908
Other current assets 71,348 47,276
Total current assets 722,753 627,495
PROPERTY, PLANT AND EQUIPMENT, NET 105,524 107,003
OTHER ASSETS:
Goodwill 1,690,391 1,651,208
Other intangible assets, net 614,607 544,136
Deferred taxes 25,700 21,702
Other assets 45,330 43,815
Total other assets 2,376,028 2,260,861
TOTAL ASSETS $3,204,305 $2,995,359
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $102,684 $96,139
Accrued liabilities 174,760 184,148
Income taxes payable 9,173 5,896
Deferred taxes 1,035 1,555
Current portion of long-term debt 314,264 299,911
Total current liabilities 601,916 587,649
NONCURRENT LIABILITIES:
Long-term debt 736,016 726,881
Deferred taxes 198,104 169,994
Other liabilities 44,856 23,996
Total liabilities 1,580,892 1,508,520
STOCKHOLDERS' EQUITY:
Common stock 910 900
Additional paid-in capital 740,331 717,751
Retained earnings 819,718 721,899
Accumulated other comprehensive earnings 84,638 68,666
Treasury stock (22,184) (22,377)
Total stockholders' equity 1,623,413 1,486,839
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $3,204,305 $2,995,359
Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (unaudited)
(Amounts in thousands, except per share data)
Three months ended Six months ended
June 30, June 30,
2007 2006 2007 2006
Net sales $530,636 $425,310 $1,009,063 $808,033
Cost of sales 268,241 210,427 508,520 400,753
Gross profit 262,395 214,883 500,543 407,280
Selling, general and
administrative expenses 154,439 129,491 299,736 254,412
Income from operations 107,956 85,392 200,807 152,868
Interest expense 13,366 11,313 26,838 22,112
Other income/(expense) (1,230) (31) (1,480) (159)
Earnings from continuing
operations before income taxes 93,360 74,048 172,489 130,597
Income taxes 32,131 25,955 59,826 44,818
Net Earnings $61,229 $48,093 $112,663 $85,779
Earnings per share:
Basic $0.69 $0.55 $1.28 $0.99
Diluted $0.66 $0.53 $1.22 $0.95
Weighted average common and
common equivalent shares
outstanding:
Basic 88,359 86,919 88,139 86,492
Diluted 92,915 91,043 92,581 90,350
Roper Industries, Inc. and Subsidiaries
Selected Segment Financial Data (unaudited)
(Amounts in thousands and percents of net sales)
Three months ended June 30,
2007 2006
Amount % Amount %
Net sales:
Industrial Technology $161,333 $136,783
Energy Systems & Controls 126,036 75,915
Scientific & Industrial Imaging 93,683 85,644
RF Technology 149,584 126,968
Total $530,636 $425,310
Gross profit:
Industrial Technology $76,584 47.5% $65,668 48.0%
Energy Systems & Controls 66,809 53.0% 41,641 54.9%
Scientific & Industrial Imaging 51,166 54.6% 48,212 56.3%
RF Technology 67,836 45.3% 59,362 46.8%
Total $262,395 49.4% $214,883 50.5%
Operating profit*:
Industrial Technology $40,546 25.1% $32,174 23.5%
Energy Systems & Controls 29,903 23.7% 19,037 25.1%
Scientific & Industrial Imaging 17,680 18.9% 18,027 21.0%
RF Technology 30,603 20.5% 24,596 19.4%
Total $118,732 22.4% $93,834 22.1%
Net Orders:
Industrial Technology $163,102 $151,791
Energy Systems & Controls 122,693 77,928
Scientific & Industrial Imaging 86,207 79,307
RF Technology 160,809 124,395
Total $532,811 $433,421
Six months ended June 30,
2007 2006
Amount % Amount %
Net sales:
Industrial Technology $315,839 $261,580
Energy Systems & Controls 230,011 144,624
Scientific & Industrial Imaging 185,711 166,422
RF Technology 277,502 235,407
Total $1,009,063 $808,033
Gross profit:
Industrial Technology $150,013 47.5% $126,526 48.4%
Energy Systems & Controls 120,252 52.3% 77,664 53.7%
Scientific & Industrial Imaging 102,387 55.1% 92,708 55.7%
RF Technology 127,891 46.1% 110,382 46.9%
Total $500,543 49.6% $407,280 50.4%
Operating profit*:
Industrial Technology $78,656 24.9% $59,742 22.8%
Energy Systems & Controls 49,721 21.6% 33,969 23.5%
Scientific & Industrial Imaging 37,068 20.0% 33,871 20.4%
RF Technology 55,672 20.1% 43,024 18.3%
Total $221,117 21.9% $170,606 21.1%
Net Orders:
Industrial Technology $325,864 $286,794
Energy Systems & Controls 230,756 142,347
Scientific & Industrial Imaging 182,579 159,382
RF Technology 286,608 237,501
Total $1,025,807 $826,024
* Operating profit is before unallocated corporate general and
administrative expenses. Such expenses were $10,776 and $8,442 for
the three months ended June 30, 2007 and 2006, respectively, and
$20,310 and $17,738 for the six months ended June 30, 2007 and 2006,
respectively.
Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(Amounts in thousands)
Six months ended
June 30,
2007 2006
Net earnings $112,663 $85,779
Depreciation 15,685 13,927
Amortization 30,587 25,536
Other, net (23,383) (19,486)
Cash provided by operating activities 135,552 105,756
Business acquisitions, net of cash acquired (100,761) (63,454)
Capital expenditures (12,725) (16,807)
Other, net (2,759) (870)
Cash used by investing activities (116,245) (81,131)
Debt borrowings (payments), net 23,621 (29,322)
Excess windfall tax benefit from stock awards 5,458 2,483
Dividends (11,437) (10,189)
Other, net 11,540 10,931
Cash provided by/(used by)
financing activities 29,182 (26,097)
Effect of exchange rate changes on cash 2,137 1,739
Net increase in cash and equivalents 50,626 267
Cash and equivalents, beginning of period 69,478 53,116
Cash and equivalents, end of period $120,104 $53,383
