UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
October 26, 2009
DATE OF REPORT (DATE OF EARLIEST EVENT
REPORTED)
ROPER INDUSTRIES,
INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS
CHARTER)
DELAWARE
(STATE OR OTHER JURISDICTION OF
INCORPORATION)
|
1-12273
|
51-0263969
|
|
(COMMISSION
FILE NUMBER)
|
(IRS EMPLOYER
IDENTIFICATION NO.)
|
|
6901 PROFESSIONAL PKWY. EAST,
SUITE 200, SARASOTA, FLORIDA
|
34240
|
|
|
|
|
(ADDRESS OF
PRINCIPAL EXECUTIVE OFFICES)
|
(ZIP
CODE)
|
(941) 556-2601
(REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA
CODE)
(FORMER NAME OR ADDRESS, IF CHANGED SINCE LAST
REPORT)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant
under any of the following provisions:
under any of the following provisions:
[ ] Written communication pursuant to Rule
425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial
Condition.
On October
26, 2009, Roper Industries, Inc. (the “Company”) issued a press release
containing information about the Company’s results of operations for
the quarter ended September 30, 2009. A copy of the press release is
furnished as Exhibit
99.1.
Item 9.01.
Financial Statements and Exhibits.
(a) Financial Statements of Businesses
Acquired.
| Not applicable. |
(b) Pro Forma Financial
Information.
| Not applicable. |
(c) Shell Company
Transactions.
| Not applicable |
(d) Exhibits.
| 99.1 Press Release of the Company dated October 26, 2009. |
Signatures
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
| Roper Industries, Inc. | |||||||
| (Registrant) | |||||||
| BY: | /s/ John Humphrey | ||||||
| John
Humphrey, Vice President and Chief Financial Officer |
Date: October 26, 2009 |
EXHIBIT INDEX
| Exhibit No. | Description | |
|
|
|
|
| 99.1 | Press Release of the Company dated October 26, 2009 |
|
Contact
Information:
Investor
Relations
941-556-2601
investor-relations@roperind.com
|
 Roper
Industries, Inc.
|
Roper Industries Announces
Results For 2009 Third Quarter
Orders
Increased Sequentially; Net Earnings Were $56 Million;
Operating
Cash Flow Reached $87 Million
Sarasota, Florida, October 26, 2009
.... Roper Industries, Inc. (NYSE: ROP) reported financial
results for the third quarter ended September 30, 2009.
Net
earnings for the third quarter were $56 million, or $0.61 per diluted
share. Excluding restructuring expenses, adjusted net earnings were
$58 million, or $0.63 per diluted share. Sales during the quarter
were $486 million, an 18% decrease compared to the same period in
2008. Orders were $499 million, and represented 103% of sales,
marking the first time since the second quarter of 2008 that orders exceeded
sales. Operating cash flow was $87 million, or 18% of revenue,
bringing year-to-date operating cash flow to $248 million. Free cash
flow (operating cash flow less capital expenditures) during the quarter was $81
million, representing 143% of net income in the quarter. Year-to-date
free cash flow is $229 million, or 137% of year-to-date net income.
“More
than half our businesses experienced greater than 10% growth in orders over the
second quarter, and this improvement in order momentum is expected to continue
in the fourth quarter,” said Brian Jellison, Roper’s Chairman, President and
CEO. “Although sales in the quarter were 4% lower than second quarter
levels, in part due to some orders shifting to the fourth quarter, we were
pleased with the performance of our businesses in terms of margins, cost
controls and cash flow. In addition, we increased cash and liquidity
during the quarter with a successful $500 million 10-year bond offering that
increases our flexibility as we pursue strategic acquisition
opportunities.”
Operating
margin was 18.9% in the quarter, or 19.5% excluding restructuring
costs. Decremental margin (change in operating profit divided by
change in sales), excluding the RF segment was 34% in the quarter, including the
cost of restructuring, and 31% excluding restructuring costs. “Our
decremental margin performance again demonstrated the success of our operating
model, with its focus on breakeven analysis and quick payback restructuring
actions,” Mr. Jellison concluded.
Outlook and
Guidance
Roper
expects full year operating cash flow to be in excess of $350
million. Adjusting for the additional interest costs related to
the recent bond offering, the Company now expects full-year earnings per diluted
share between $2.57 and $2.63, which excludes the impact of restructuring costs
and future acquisitions.
Table
1: Sequential Income Statement (Millions)
|
Q3 2009
|
Q2 2009
|
|
|
Net
Orders
|
$499
|
$489
|
|
Net
Sales
|
486
|
505
|
|
Cost
of Sales
|
240
|
250
|
|
Gross
Profit
|
$246
|
$255
|
|
Selling,
General & Administrative Expenses
|
154
|
159
|
|
Operating
Profit
|
$92
|
$96
|
Table
2: Operating Margin (Millions)
|
Q3 2009
|
||
|
(1)
|
Operating
Profit
|
$91.9
|
|
Restructuring
Costs, All Segments
|
2.7
|
|
|
(2)
|
Adjusted
Operating Profit
|
$94.6
|
|
(3)
|
Revenue
|
$486
|
|
Operating
Margin (1)/(3)
|
18.9%
|
|
|
Adjusted
Operating Margin (2)/(3)
|
19.5%
|
Table
3: Sales Growth
|
Q3 2009
|
|
|
Organic
Growth
|
(19%)
|
|
Acquisitions
/ Divestitures
|
2%
|
|
Foreign
Currency (FX)
|
(1%)
|
|
Total
Sales Growth
|
(18%)
|
Conference Call to be Held
at 8:30 AM (ET) October 26, 2009
A
conference call to discuss these results has been scheduled for 8:30 AM ET on
Monday, October 26, 2009. The call can be accessed via webcast or by
dialing +1 800-967-7141 (US/Canada) or +1 719-457-2638, using confirmation code
6889450. Webcast information and conference call materials will be
made available in the Investors section of Roper’s website (www.roperind.com)
prior to the start of the call. Telephonic replays will be available
for up to two weeks by calling +1 888-203-1112 (US/Canada) or +1 719-457-0820
and using the access code 6889450.
About Roper
Industries
Roper
Industries is a diversified growth company 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 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, general economic
conditions, 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)
|
||||||||
|
September
30,
|
December
31,
|
|||||||
|
ASSETS
|
2009
|
2008
|
||||||
|
CURRENT
ASSETS:
|
||||||||
|
Cash
and cash equivalents
|
$ | 256,024 | $ | 178,069 | ||||
|
Accounts
receivable
|
323,959 | 376,855 | ||||||
|
Inventories
|
174,055 | 185,919 | ||||||
|
Deferred
taxes
|
27,540 | 29,390 | ||||||
|
Unbilled
receivable
|
60,344 | 61,168 | ||||||
|
Other
current assets
|
65,572 | 26,906 | ||||||
|
Total
current assets
|
907,494 | 858,307 | ||||||
|
PROPERTY,
PLANT AND EQUIPMENT, NET
|
104,748 | 112,463 | ||||||
|
|
||||||||
|
OTHER
ASSETS:
|
||||||||
|
Goodwill
|
2,142,765 | 2,118,852 | ||||||
|
Other
intangible assets, net
|
759,241 | 804,020 | ||||||
|
Deferred
taxes
|
31,190 | 28,050 | ||||||
|
Other
assets
|
56,383 | 49,846 | ||||||
|
Total
other assets
|
2,989,579 | 3,000,768 | ||||||
|
TOTAL
ASSETS
|
$ | 4,001,821 | $ | 3,971,538 | ||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
CURRENT
LIABILITIES:
|
||||||||
|
Accounts
payable
|
$ | 100,561 | $ | 121,807 | ||||
|
Accrued
liabilities
|
224,483 | 261,682 | ||||||
|
Income
taxes payable
|
- | 1,892 | ||||||
|
Deferred
taxes
|
1,079 | - | ||||||
|
Current
portion of long-term debt
|
119,852 | 233,526 | ||||||
|
Total
current liabilities
|
445,975 | 618,907 | ||||||
|
NONCURRENT
LIABILITIES:
|
||||||||
|
Long-term
debt
|
1,004,357 | 1,033,689 | ||||||
|
Deferred
taxes
|
286,352 | 272,182 | ||||||
|
Other
liabilities
|
42,662 | 42,826 | ||||||
|
Total
liabilities
|
1,779,346 | 1,967,604 | ||||||
|
STOCKHOLDERS'
EQUITY:
|
||||||||
|
Common
stock
|
931 | 919 | ||||||
|
Additional
paid-in capital
|
846,966 | 815,736 | ||||||
|
Retained
earnings
|
1,332,555 | 1,187,467 | ||||||
|
Accumulated
other comprehensive earnings
|
63,425 | 21,513 | ||||||
|
Treasury
stock
|
(21,402 | ) | (21,701 | ) | ||||
|
Total
stockholders' equity
|
2,222,475 | 2,003,934 | ||||||
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 4,001,821 | $ | 3,971,538 | ||||
|
Roper
Industries, Inc. and Subsidiaries
|
||||||||||||||||
|
Condensed
Consolidated Statements of Earnings (unaudited)
|
||||||||||||||||
|
(Amounts
in thousands, except per share data)
|
||||||||||||||||
|
Three
months ended
|
Nine
months ended
|
|||||||||||||||
|
September
30,
|
September
30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Net
sales
|
$ | 485,676 | $ | 593,100 | $ | 1,496,030 | $ | 1,730,509 | ||||||||
|
Cost
of sales
|
240,156 | 284,340 | 744,304 | 840,029 | ||||||||||||
|
Gross
profit
|
245,520 | 308,760 | 751,726 | 890,480 | ||||||||||||
|
Selling,
general and administrative expenses
|
153,648 | 176,461 | 477,098 | 523,374 | ||||||||||||
|
Income
from operations
|
91,872 | 132,299 | 274,628 | 367,106 | ||||||||||||
|
Interest
expense
|
14,437 | 16,122 | 41,708 | 42,141 | ||||||||||||
|
Other
income (expense)
|
105 | (2,836 | ) | 2,917 | (1,695 | ) | ||||||||||
|
Earnings
from continuing operations before
|
||||||||||||||||
|
income
taxes
|
77,540 | 113,341 | 235,837 | 323,270 | ||||||||||||
|
Income
taxes
|
21,130 | 39,312 | 68,280 | 112,267 | ||||||||||||
|
Net
Earnings
|
$ | 56,410 | $ | 74,029 | $ | 167,557 | $ | 211,003 | ||||||||
|
Earnings
per share:
|
||||||||||||||||
|
Basic
|
$ | 0.62 | $ | 0.83 | $ | 1.85 | $ | 2.36 | ||||||||
|
Diluted
|
$ | 0.61 | $ | 0.79 | $ | 1.81 | $ | 2.24 | ||||||||
|
Weighted
average common and common
|
||||||||||||||||
|
equivalent
shares outstanding:
|
||||||||||||||||
|
Basic
|
90,877 | 89,629 | 90,526 | 89,381 | ||||||||||||
|
Diluted
|
92,908 | 94,251 | 92,635 | 94,026 | ||||||||||||
|
Roper
Industries, Inc. and Subsidiaries
|
||||||||||||||||||||||||||||||||
|
Selected
Segment Financial Data (unaudited)
|
||||||||||||||||||||||||||||||||
|
(Amounts
in thousands and percents of net sales)
|
||||||||||||||||||||||||||||||||
|
Three
months ended September 30,
|
Nine
months ended September 30,
|
|||||||||||||||||||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||||||||||||
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
|||||||||||||||||||||||||
|
Net
sales:
|
||||||||||||||||||||||||||||||||
|
Industrial
Technology
|
$ | 130,538 | $ | 169,065 | $ | 397,730 | $ | 525,929 | ||||||||||||||||||||||||
|
Energy
Systems & Controls
|
102,988 | 137,535 | 314,997 | 410,638 | ||||||||||||||||||||||||||||
|
Scientific
& Industrial Imaging
|
78,934 | 94,610 | 238,914 | 282,206 | ||||||||||||||||||||||||||||
|
RF
Technology
|
173,216 | 191,890 | 544,389 | 511,736 | ||||||||||||||||||||||||||||
|
Total
|
$ | 485,676 | $ | 593,100 | $ | 1,496,030 | $ | 1,730,509 | ||||||||||||||||||||||||
|
Gross
profit:
|
||||||||||||||||||||||||||||||||
|
Industrial
Technology
|
$ | 62,060 | 47.5 | % | $ | 82,215 | 48.6 | % | $ | 190,501 | 47.9 | % | $ | 253,719 | 48.2 | % | ||||||||||||||||
|
Energy
Systems & Controls
|
52,464 | 50.9 | % | 75,172 | 54.7 | % | 164,123 | 52.1 | % | 223,720 | 54.5 | % | ||||||||||||||||||||
|
Scientific
& Industrial Imaging
|
44,169 | 56.0 | % | 51,457 | 54.4 | % | 132,385 | 55.4 | % | 154,135 | 54.6 | % | ||||||||||||||||||||
|
RF
Technology
|
86,827 | 50.1 | % | 99,916 | 52.1 | % | 264,717 | 48.6 | % | 258,906 | 50.6 | % | ||||||||||||||||||||
|
Total
|
$ | 245,520 | 50.6 | % | $ | 308,760 | 52.1 | % | $ | 751,726 | 50.2 | % | $ | 890,480 | 51.5 | % | ||||||||||||||||
|
Operating
profit*:
|
||||||||||||||||||||||||||||||||
|
Industrial
Technology
|
$ | 30,547 | 23.4 | % | $ | 43,767 | 25.9 | % | $ | 91,614 | 23.0 | % | $ | 136,627 | 26.0 | % | ||||||||||||||||
|
Energy
Systems & Controls
|
19,214 | 18.7 | % | 32,541 | 23.7 | % | 59,926 | 19.0 | % | 96,359 | 23.5 | % | ||||||||||||||||||||
|
Scientific
& Industrial Imaging
|
14,818 | 18.8 | % | 18,746 | 19.8 | % | 43,300 | 18.1 | % | 54,091 | 19.2 | % | ||||||||||||||||||||
|
RF
Technology
|
38,918 | 22.5 | % | 50,191 | 26.2 | % | 115,724 | 21.3 | % | 119,902 | 23.4 | % | ||||||||||||||||||||
|
Total
|
$ | 103,497 | 21.3 | % | $ | 145,245 | 24.5 | % | $ | 310,564 | 20.8 | % | $ | 406,979 | 23.5 | % | ||||||||||||||||
|
Operating
profit excluding restructuring*:
|
||||||||||||||||||||||||||||||||
|
Industrial
Technology
|
$ | 31,494 | 24.1 | % | $ | 43,767 | 25.9 | % | $ | 95,931 | 24.1 | % | $ | 136,627 | 26.0 | % | ||||||||||||||||
|
Energy
Systems & Controls
|
20,503 | 19.9 | % | 32,541 | 23.7 | % | 63,739 | 20.2 | % | 96,359 | 23.5 | % | ||||||||||||||||||||
|
Scientific
& Industrial Imaging
|
15,195 | 19.3 | % | 18,746 | 19.8 | % | 44,797 | 18.8 | % | 54,091 | 19.2 | % | ||||||||||||||||||||
|
RF
Technology
|
38,976 | 22.5 | % | 50,191 | 26.2 | % | 116,542 | 21.4 | % | 119,902 | 23.4 | % | ||||||||||||||||||||
|
Total
|
$ | 106,168 | 21.9 | % | $ | 145,245 | 24.5 | % | $ | 321,009 | 21.5 | % | $ | 406,979 | 23.5 | % | ||||||||||||||||
|
Net
Orders:
|
||||||||||||||||||||||||||||||||
|
Industrial
Technology
|
$ | 125,776 | $ | 163,442 | $ | 391,049 | $ | 514,326 | ||||||||||||||||||||||||
|
Energy
Systems & Controls
|
104,593 | 134,970 | 298,551 | 402,553 | ||||||||||||||||||||||||||||
|
Scientific
& Industrial Imaging
|
84,329 | 102,933 | 235,433 | 289,606 | ||||||||||||||||||||||||||||
|
RF
Technology
|
184,243 | 179,274 | 534,251 | 538,624 | ||||||||||||||||||||||||||||
|
Total
|
$ | 498,941 | $ | 580,619 | $ | 1,459,284 | $ | 1,745,109 | ||||||||||||||||||||||||
|
* Operating
profit is before unallocated corporate general and administrative
expenses. These expenses
|
||||||||||||||||||||||||||||||||
|
were $11,625 and $12,946 for the three months ended September 30, 2009 and
2008, respectively, and
|
||||||||||||||||||||||||||||||||
|
$35,936 and $39,873 for the nine months ended September 30, 2009 and 2008,
respectively.
|
||||||||||||||||||||||||||||||||
|
Roper
Industries, Inc. and Subsidiaries
|
||||||||
|
Condensed
Consolidated Statements of Cash Flows (unaudited)
|
||||||||
|
(Amounts
in thousands)
|
||||||||
|
Nine
months ended
|
||||||||
|
September
30,
|
||||||||
|
2009
|
2008
|
|||||||
|
Net
earnings
|
$ | 167,557 | $ | 211,003 | ||||
|
Non-cash
items:
|
||||||||
|
Depreciation
|
25,828 | 24,775 | ||||||
|
Amortization
|
51,280 | 50,588 | ||||||
|
Stock-based
compensation expense
|
20,821 | 22,848 | ||||||
|
Income
taxes
|
(24,146 | ) | 2,602 | |||||
|
Changes
in assets and liabilities:
|
||||||||
|
Receivables
|
54,127 | (5,517 | ) | |||||
|
Inventory
|
14,496 | (12,157 | ) | |||||
|
Accounts
payable
|
(22,354 | ) | 5,358 | |||||
|
Accrued
liabilities
|
(42,375 | ) | 2,234 | |||||
|
Other,
net
|
2,615 | 3,805 | ||||||
|
Cash
provided by operating activities
|
247,849 | 305,539 | ||||||
|
Business
acquisitions, net of cash acquired
|
(1,248 | ) | (701,935 | ) | ||||
|
Capital
expenditures
|
(18,708 | ) | (20,787 | ) | ||||
|
Other,
net
|
6,983 | (4,084 | ) | |||||
|
Cash
used by investing activities
|
(12,973 | ) | (726,806 | ) | ||||
|
Principal
debt borrowings
|
500,000 | 850,000 | ||||||
|
Principal
debt payments
|
(466,186 | ) | (957,745 | ) | ||||
|
Revolver
borrowings (payments), net
|
(179,000 | ) | 393,000 | |||||
|
Debt
issuance costs
|
(4,310 | ) | (10,169 | ) | ||||
|
Dividends
|
(22,343 | ) | (19,393 | ) | ||||
|
Excess
tax benefit from share-based payment
|
1,055 | 4,688 | ||||||
|
Proceeds
from exercise of stock options
|
4,845 | 10,050 | ||||||
|
Other,
net
|
(604 | ) | 918 | |||||
|
Cash
provided by (used by) financing activities
|
(166,543 | ) | 271,349 | |||||
|
Effect
of exchange rate changes on cash
|
9,622 | (2,578 | ) | |||||
|
Net
increase (decrease) in cash and equivalents
|
77,955 | (152,496 | ) | |||||
|
Cash
and equivalents, beginning of period
|
178,069 | 308,768 | ||||||
|
Cash
and equivalents, end of period
|
$ | 256,024 | $ | 156,272 | ||||