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Roper Technologies Announces New Segment Structure

Company Release - 3/4/2019 7:30 AM ET

SARASOTA, Fla., March 04, 2019 (GLOBE NEWSWIRE) -- Roper Technologies, Inc. (NYSE: ROP), a leading diversified technology company, announced today that it has realigned its reportable segments.

The four new reportable segments are as follows:

  • Application Software - Aderant, CBORD, CliniSys, Data Innovations, Deltek, Horizon, IntelliTrans, PowerPlan, Strata, Sunquest
     
  • Network Software & Systems - ConstructConnect, DAT, Inovonics, iTradeNetwork, Link Logistics, MHA, RF IDeas, SHP, SoftWriters, TransCore
     
  • Measurement & Analytical Solutions - Alpha, CIVCO Medical Solutions, CIVCO Radiotherapy, Dynisco, FMI, Gatan, Hansen, Hardy, IPA, Logitech, Neptune, Northern Digital, Struers, Technolog, Uson, Verathon
     
  • Process Technologies - AMOT, CCC, Cornell, FTI, Metrix, PAC, Roper Pump, Viatran, Zetec

"Our new segments reinforce Roper’s diversified, niche market strategy by emphasizing business models instead of end markets," said Neil Hunn, Roper's President and CEO. "The day-to-day operations of our businesses, our organizational structure, and our strategy remain unchanged. We look forward to reporting our results using these new segments.”

Beginning with the first quarter of 2019, the Company will report its quarterly and full year financial statements under the new segment structure with prior periods recast to reflect the change.

The Company will present at two investor conferences later this week and will discuss the new reportable segments as part of those presentations. Links to the webcast presentations will be available in the “Investors” section of the Company’s website at www.ropertech.com.

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.

Unaudited Historical Financial Information

The Company has included below unaudited historical financial segment information for the four quarters 2017 and 2018, and full years 2016, 2017 and 2018 recast to give effect to the new reportable segment structure. Roper’s historical consolidated results remain unchanged.

Table 1: GAAP Segment Financials ($M)
(Unaudited)         
  2016 2017 2018
  FY Q1Q2Q3Q4FY Q1Q2Q3Q4FY
Revenue              
Application Software $699  $284 $300 $311 $327 $1,222  $324 $358 $378 $392 $1,453 
Network Software & Systems 1,104  297 313 325 320 1,254  314 334 342 355 1,345 
Measurement & Analytical Solutions A 1,456  371 379 373 408 1,531  404 426 430 446 1,706 
Process Technologies 530  134 143 151 173 600  161 176 169 182 688 
Total $3,790  $1,086 $1,135 $1,160 $1,227 $4,607  $1,203 $1,294 $1,319 $1,376 $5,191 
               
Gross Profit              
Application Software $466  $180 $197 $206 $214 $798  $214 $243 $256 $259 $972 
Network Software & Systems 707  194 205 218 218 835  213 225 237 244 919 
Measurement & Analytical Solutions A 864  219 224 216 235 894  234 250 253 263 1,001 
Process Technologies 295  75 79 86 98 338  90 98 94 106 388 
Total $2,332  $668 $706 $726 $765 $2,865  $750 $816 $840 $873 $3,280 
               
Operating Profit              
Application Software $210  $51 $72 $76 $79 $279  $70 $98 $98 $92 $358 
Network Software & Systems 403  96 105 118 120 439  106 116 128 135 484 
Measurement & Analytical Solutions A 419  107 111 105 123 446  115 128 136 144 524 
Process Technologies 150  39 43 49 57 188  50 58 57 69 234 
Corporate (128) (34)(38)(38)(32)(142) (42)(45)(41)(75)(204)
Total $1,055  $258 $294 $311 $347 $1,210  $300 $354 $378 $364 $1,396 


Table 2: Adjusted Segment Financials ($M)
(Unaudited)        
  2016 2017 2018
  FY Q1Q2Q3Q4FY Q1Q2Q3Q4FY
Revenue              
Application Software $707  $301 $313 $321 $334 $1,269  $326 $360 $380 $394 $1,461 
Network Software & Systems 1,111  303 316 326 321 1,265  314 334 342 355 1,345 
Measurement & Analytical Solutions A 1,456  371 379 373 408 1,531  404 426 430 446 1,706 
Process Technologies 530  134 143 151 173 600  161 176 169 182 688 
Total $3,805  $1,108 $1,151 $1,171 $1,235 $4,665  $1,205 $1,296 $1,321 $1,378 $5,199 
               
Gross Profit              
Application Software $475  $196 $210 $217 $221 $845  $216 $245 $258 $261 $980 
Network Software & Systems 714  200 208 219 219 846  213 225 237 244 919 
Measurement & Analytical Solutions A 864  219 224 216 235 894  234 250 253 263 1,001 
Process Technologies 295  75 79 86 98 338  90 98 94 106 388 
Total $2,348  $689 $722 $738 $773 $2,922  $753 $818 $842 $874 $3,287 
               
Operating Profit              
Application Software $218  $66 $84 $85 $86 $321  $73 $100 $100 $93 $365 
Network Software & Systems 410  101 108 119 120 449  106 116 128 135 484 
Measurement & Analytical Solutions A 419  107 111 105 123 446  115 128 136 144 524 
Process Technologies 150  39 43 49 57 188  50 58 57 69 234 
Corporate (121) (34)(38)(38)(32)(142) (42)(45)(41)(40)(169)
Total $1,076  $278 $309 $321 $354 $1,262  $303 $356 $379 $401 $1,439 
               
EBITDA              
Application Software $305  $110 $129 $132 $133 $504  $121 $151 $156 $150 $578 
Network Software & Systems 494  127 134 144 144 549  130 140 153 159 582 
Measurement & Analytical Solutions A 474  119 123 117 135 494  127 139 146 154 567 
Process Technologies 165  42 46 53 61 202  54 61 60 72 246 
Corporate (121) (34)(38)(37)(32)(141) (41)(45)(41)(40)(168)
Other Income / (Expense) (1) (1)(1)(1) (3) (2)2 (2)1  
Total $1,315  $362 $394 $407 $441 $1,605  $389 $449 $473 $496 $1,806 


Table 3: Adjusted Revenue Growth
(Unaudited)           
            
Application Software           
 2017 2018
 Q1Q2Q3Q4FY Q1Q2Q3Q4FY
Organic Growth6%4%3%1%4% 3%7%4%7%5%
Acquisitions/Divestitures73%77%77%77%76% 4%7%15%11%9%
Foreign Exchange(1)%(1)%%1%% 2%1%%(1)%%
Total Revenue Growth78%79%81%80%79% 9%15%18%18%15%


Network Software & Systems 
 2017 2018
 Q1Q2Q3Q4FY Q1Q2Q3Q4FY
Organic Growth2%6%4%(1)%3% 3%4%3%9%5%
Acquisitions/Divestitures14%14%14%4%11% %2%2%2%2%
Foreign Exchange%%%%% %%%%%
Total Revenue Growth16%20%17%3%14% 4%6%5%11%6%


Measurement & Analytical Solutions A
 2017 2018
 Q1Q2Q3Q4FY Q1Q2Q3Q4FY
Organic Growth7%4%2%6%5% 6%11%16%10%11%
Acquisitions/Divestitures1%%%%% %%%%%
Foreign Exchange(1)%(1)%1%2%% 3%2%%(1)%1%
Total Revenue Growth6%3%3%8%5% 9%12%15%9%11%


Process Technologies          
 2017 2018
 Q1Q2Q3Q4FY Q1Q2Q3Q4FY
Organic Growth5%13%15%16%13% 16%20%13%7%14%
Acquisitions/Divestitures%%1%1%% 1%1%%%%
Foreign Exchange(1)%(1)%1%2%% 3%2%(1)%(1)%1%
Total Revenue Growth4%12%17%19%13% 20%23%12%6%15%


Roper Consolidated A          
 2017 2018
 Q1Q2Q3Q4FY Q1Q2Q3Q4FY
Organic Growth5%6%5%5%5% 6%9%9%9%8%
Acquisitions/Divestitures18%18%19%15%18% 1%2%5%4%3%
Foreign Exchange(1)%(1)%1%1%% 2%1%%(1)%%
Total Revenue Growth22%23%24%21%23% 9%13%13%12%11%


Table 4:  Adjusted Segment & Consolidated Financials Reconciliation
(Unaudited) 
              
Application Software Reconciliation ($M)
 2016 2017 2018
 FY Q1Q2Q3Q4FY Q1Q2Q3Q4FY
GAAP Revenue$699  $284 $300 $311 $327 $1,222  $324 $358 $378 $392 $1,453 
Purchase accounting adjustment to acquired deferred revenue8  16 13 10 7 47  2 2 2 1 8 
Adjusted Revenue707  301 313 321 334 1,269  326 360 380 394 1,461 
              
GAAP Gross Profit466  180 197 206 214 798  214 243 256 259 972 
Purchase accounting adjustment to acquired deferred revenue8  16 13 10 7 47  2 2 2 1 8 
Adjusted Gross Profit475  196 210 217 221 845  216 245 258 261 980 
Adjusted Gross Margin67.1% 65.3%67.1%67.4%66.3%66.5% 66.3%68.0%67.8%66.2%67.1%
              
GAAP Operating Profit210  51 72 76 79 279  70 98 98 92 358 
Purchase accounting adjustment to acquired deferred revenue & commission expense8  15 12 9 7 42  2 2 2 1 7 
Adjusted Operating Profit218  66 84 85 86 321  73 100 100 93 365 
Adjusted Operating Margin30.8% 22.0%26.7%26.5%25.7%25.3% 22.3%27.7%26.2%23.7%25.0%
              
Amortization81  39 41 42 42 165  44 46 52 51 193 
Depreciation6  5 4 5 5 19  5 5 5 5 20 
Adjusted EBITDA305  110 129 132 133 504  121 151 156 150 578 
Adjusted EBITDA Margin43.1% 36.6%41.2%41.1%39.8%39.7% 37.2%41.8%41.0%38.1%39.6%


Network Software & Systems Reconciliation ($M)
 2016 2017 2018
 FY Q1Q2Q3Q4FY Q1Q2Q3Q4FY
GAAP Revenue$1,104  $297 $313 $325 $320 $1,254  $314 $334 $342 $355 $1,345 
Purchase accounting adjustment to acquired deferred revenue7  5 3 1 1 10       
Adjusted Revenue1,111  303 316 326 321 1,265  314 334 342 355 1,345 
              
GAAP Gross Profit707  194 205 218 218 835  213 225 237 244 919 
Purchase accounting adjustment to acquired deferred revenue7  5 3 1 1 10       
Adjusted Gross Profit714  200 208 219 219 846  213 225 237 244 919 
Adjusted Gross Margin64.3% 65.9%66.0%67.3%68.3%66.9% 67.8%67.5%69.2%68.7%68.3%
              
GAAP Operating Profit403  96 105 118 120 439  106 116 128 135 484 
Purchase accounting adjustment to acquired deferred revenue7  5 3 1 1 10       
Adjusted Operating Profit410  101 108 119 120 449  106 116 128 135 484 
Adjusted Operating Margin36.9% 33.5%34.4%36.5%37.5%35.5% 33.8%34.6%37.4%37.9%36.0%
              
Amortization75  23 23 22 21 89  22 22 22 22 87 
Depreciation9  3 3 3 3 11  3 3 3 3 11 
Adjusted EBITDA494  127 134 144 144 549  130 140 153 159 582 
Adjusted EBITDA Margin44.5% 41.9%42.5%44.1%45.1%43.4% 41.5%42.0%44.7%44.7%43.3%


Measurement & Analytical Solutions Reconciliation ($M) A
 2016 2017 2018
 FY Q1Q2Q3Q4FY Q1Q2Q3Q4FY
GAAP Revenue1,456  371 379 373 408 1,531  404 426 430 446 1,706 
GAAP Gross Profit864  219 224 216 235 894  234 250 253 263 1,001 
GAAP Gross Margin59.3% 58.9%59.0%58.0%57.7%58.4% 57.9%58.7%59.0%59.0%58.7%
              
GAAP Operating Profit419  107 111 105 123 446  115 128 136 144 524 
GAAP Operating Margin28.8% 28.7%29.3%28.2%30.2%29.1% 28.6%30.1%31.7%32.3%30.7%
              
Amortization39  9 8 8 8 33  8 8 7 7 29 
Depreciation15  4 3 3 3 14  4 4 3 3 13 
EBITDA474  119 123 117 135 494  127 139 146 154 567 
EBITDA Margin32.5% 32.0%32.5%31.4%33.0%32.2% 31.4%32.8%34.1%34.5%33.2%


Process Technologies Reconciliation ($M)
 2016 2017 2018
 FY Q1Q2Q3Q4FY Q1Q2Q3Q4FY
GAAP Revenue530  134 143 151 173 600  161 176 169 182 688 
GAAP Gross Profit295  75 79 86 98 338  90 98 94 106 388 
GAAP Gross Margin55.6% 56.0%55.6%56.8%56.5%56.3% 56.0%55.6%55.9%58.3%56.4%
              
GAAP Operating Profit150  39 43 49 57 188  50 58 57 69 234 
GAAP Operating Margin28.3% 28.9%30.3%32.5%33.3%31.4% 31.3%32.8%33.7%37.7%34.0%
              
Amortization9  2 2 2 2 8  2 2 2 2 9 
Depreciation6  1 1 1 1 5  1 1 1 1 4 
EBITDA165  42 46 53 61 202  54 61 60 72 246 
EBITDA Margin31.2% 31.5%32.5%34.8%35.3%33.6% 33.4%34.6%35.6%39.4%35.8%


Roper Consolidated Reconciliation ($M) A
 2016 2017 2018
 FY Q1Q2Q3Q4FY Q1Q2Q3Q4FY
              
GAAP Revenue$3,790  $1,086 $1,135 $1,160 $1,227 $4,607  $1,203 $1,294 $1,319 $1,376 $5,191 
Purchase accounting adjustment to acquired deferred revenue15  22 16 12 8 57  2 2 2 1 8 
Adjusted Revenue3,805  1,108 1,151 1,171 1,235 4,665  1,205 1,296 1,321 1,378 5,199 
              
GAAP Gross Profit2,332  668 706 726 765 2,865  750 816 840 873 3,280 
Purchase accounting adjustment to acquired deferred revenue15  22 16 12 8 57  2 2 2 1 8 
Adjusted Gross Profit2,348  689 722 738 773 2,922  753 818 842 874 3,287 
Adjusted Gross Margin61.7% 62.2%62.7%63.0%62.6%62.6% 62.5%63.1%63.8%63.5%63.2%
              
GAAP Operating Profit1,055  258 294 311 347 1,210  300 354 378 364 1,396 
Purchase accounting adjustment to acquired deferred revenue & commission expense15  20 15 10 7 52  2 2 2 1 7 
One-time accelerated vesting charge & significant acquisition-related expenses6           35 35 
Adjusted Operating Profit1,076  278 309 321 354 1,262  303 356 379 401 1,439 
Adjusted Operating Margin28.3% 25.1%26.8%27.4%28.7%27.1% 25.1%27.5%28.7%29.1%27.7%
              
Amortization203  73 74 74 74 295  75 78 83 82 318 
Depreciation37  12 12 12 13 50  13 13 12 12 50 
GAAP Other Income / (Expense)(2) (1)7 (1) 5  (2)2 (18)1 (16)
Debt extinguishment charge1          16  16 
Gain on sale of divested energy product line, net of impairment on minority investment   (8)  (8)      
Adjusted EBITDA1,315  362 394 407 441 1,605  389 449 473 496 1,806 
Adjusted EBITDA Margin34.6% 32.7%34.3%34.8%35.7%34.4% 32.3%34.6%35.8%36.0%34.7%


A.All periods include the results of Princeton Instruments, Photometrics and Lumenera, as well as other brands (collectively the "Scientific Imaging" businesses). The Company closed on its sale of the Scientific Imaging businesses to Teledyne Technologies Incorporated on February 5, 2019.

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.

Contact Information:
Investor Relations
941-556-2601 
investor-relations@ropertech.com

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Source: Roper Technologies, Inc.