SARASOTA, Fla., April 24 /PRNewswire-FirstCall/ -- Roper Industries, Inc. reported record results for its first quarter ended March 31, 2008.
Net earnings were $64 million, a 24% increase over the first quarter of 2007, and diluted earnings per share (DEPS) were $0.68 compared to $0.56 in the first quarter of 2007. Both periods include the dilutive effect of the Company's senior subordinated convertible notes. Net sales in the quarter were $543 million, up 13%, including 10% internal growth with 3% favorable foreign currency effect. Net orders of $558 million increased 13%, including 10% internal growth with 3% favorable foreign currency effect.
"We are pleased by Roper's exceptional performance in today's challenging economic environment," said Brian Jellison, Roper's Chairman, President and CEO. "We posted record results in all key metrics. Continued sales and orders growth throughout our businesses reflects their fundamental strength and attractive prospects despite macroeconomic concerns. Further, orders again exceeded sales and our backlog reached a record $590 million, which bodes well for second quarter performance."
During the quarter, Roper continued to execute its disciplined acquisition program with the addition in late February of CBORD, the leading supplier of card systems and integrated security solutions to higher education, healthcare and other markets, and the bolt-on acquisition of TechPro, a small instrumentation company, in late March. The first quarter results include only five weeks of performance for CBORD and also reflect the reduction in sales and orders due to the Company's exit of its Imaging segment's Redlake Motion product line in the fourth quarter of 2007. Roper's acquisition pipeline continues to be robust and the Company expects to complete additional acquisitions during the year.
During the first quarter, EBITDA increased 16% to $134 million and EBITDA margin expanded 50 basis points to 24.6%. Operating cash flow increased 25% to $72 million from $57 million in the prior year first quarter.
Mr. Jellison continued, "Roper posted excellent operating and cash performance -- across our businesses -- and operating cash flow was a record for any first quarter in the Company's history. We look toward the remainder of the year with confidence in our ability to continue delivering top- and bottom-line growth."
As a result of its strong first quarter performance, Roper is increasing its full year DEPS guidance to $3.13-$3.21 from $3.10-$3.20, and establishing second quarter DEPS guidance of $0.77-$0.79. The Company is also increasing its guidance for full year EBITDA to be in excess of $605 million. 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 31, 2008.
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 25, 2008. The call can be accessed via webcast or by dialing (800) 810-0924 or +1 (913) 312-1440, using access code 4781695. 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 4781695.
Table 1: EBITDA (Millions) Q1 Q1 2007 2008 Net Earnings 51 64 Add: Interest Expense 13 12 Add: Income Taxes 28 34 Add: Depreciation and Amortization 23 24 Rounding 0 0 EBITDA 115 134 About Roper Industries
Roper Industries is a market-driven, diversified growth company with trailing twelve month revenues of $2.2 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 2008 2007 CURRENT ASSETS: Cash and cash equivalents $151,200 $308,768 Accounts receivable 377,306 359,808 Inventories 190,040 174,138 Deferred taxes 31,665 27,800 Other current assets 85,946 80,623 Total current assets 836,157 951,137 PROPERTY, PLANT AND EQUIPMENT, NET 112,119 107,513 OTHER ASSETS: Goodwill 1,982,721 1,706,083 Other intangible assets, net 755,553 613,505 Deferred taxes 24,747 23,854 Other assets 50,407 51,092 Total other assets 2,813,428 2,394,534 TOTAL ASSETS $3,761,704 $3,453,184 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $121,990 $115,809 Accrued liabilities 209,086 194,055 Income taxes payable 28,623 24,121 Deferred taxes - 2,442 Current portion of long-term debt 413,110 331,103 Total current liabilities 772,809 667,530 NONCURRENT LIABILITIES: Long-term debt 802,848 727,489 Deferred taxes 265,320 221,411 Other liabilities 49,338 46,948 Total liabilities 1,890,315 1,663,378 STOCKHOLDERS' EQUITY: Common stock 916 910 Additional paid-in capital 764,578 757,318 Retained earnings 1,001,989 944,886 Accumulated other comprehensive earnings 125,840 108,732 Treasury stock (21,934) (22,040) Total stockholders' equity 1,871,389 1,789,806 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $3,761,704 $3,453,184 Roper Industries, Inc. and Subsidiaries Condensed Consolidated Statements of Earnings (unaudited) (Amounts in thousands, except per share data) Three months ended March 31, 2008 2007 Net sales $542,995 $478,427 Cost of sales 266,605 240,279 Gross profit 276,390 238,148 Selling, general and administrative expenses 168,124 145,297 Income from operations 108,266 92,851 Interest expense 12,225 13,472 Other income/(expense) 1,777 (250) Earnings from continuing operations before income taxes 97,818 79,129 Income taxes 34,236 27,695 Net Earnings $63,582 $51,434 Earnings per share: Basic $0.71 $0.59 Diluted $0.68 $0.56 Weighted average common and common equivalent shares outstanding: Basic 89,037 87,918 Diluted 93,447 92,300 Roper Industries, Inc. and Subsidiaries Selected Segment Financial Data (unaudited) (Amounts in thousands and percents of net sales) Three months ended March 31, 2008 2007 Amount % Amount % Net sales: Industrial Technology $173,617 $154,506 Energy Systems & Controls 128,387 103,975 Scientific & Industrial Imaging 96,443 92,028 RF Technology 144,548 127,918 Total $542,995 $478,427 Gross profit: Industrial Technology $84,667 48.8% $73,429 47.5% Energy Systems & Controls 68,674 53.5% 53,443 51.4% Scientific & Industrial Imaging 53,588 55.6% 51,221 55.7% RF Technology 69,461 48.1% 60,055 46.9% Total $276,390 50.9% $238,148 49.8% Operating profit*: Industrial Technology $45,269 26.1% $38,110 24.7% Energy Systems & Controls 28,241 22.0% 19,818 19.1% Scientific & Industrial Imaging 20,015 20.8% 19,388 21.1% RF Technology 28,029 19.4% 25,069 19.6% Total $121,554 22.4% $102,385 21.4% Net Orders: Industrial Technology $185,011 $162,762 Energy Systems & Controls 128,336 108,063 Scientific & Industrial Imaging 97,700 96,372 RF Technology 146,956 125,799 Total $558,003 $492,996 * Operating profit is before unallocated corporate general and administrative expenses. These expenses were $13,288 and $9,534 for the three months ended March 31, 2008 and 2007, respectively. Roper Industries, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (unaudited) (Amounts in thousands) Three months ended March 31, 2008 2007 Net earnings $63,582 $51,434 Depreciation 7,994 7,656 Amortization 15,527 14,971 Other, net (15,510) (16,973) Cash provided by operating activities 71,593 57,088 Business acquisitions, net of cash acquired (377,634) (69,735) Capital expenditures (6,380) (6,056) Other, net (833) (326) Cash used by investing activities (384,847) (76,117) Debt borrowings (payments), net 154,288 28,348 Dividends (6,428) (5,692) Other, net 4,525 6,701 Cash provided by financing activities 152,385 29,357 Effect of exchange rate changes on cash 3,301 636 Net increase (decrease) in cash and equivalents (157,568) 10,964 Cash and equivalents, beginning of period 308,768 69,478 Cash and equivalents, end of period $151,200 $80,442
