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
February 3, 2010
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 February
3, 2010, Roper Industries, Inc. (the “Company”) issued a press release
containing information about the Company’s results of operations for
the fourth quarter and full year ended December 31, 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 February 3, 2010. |
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: February 3, 2010 |
EXHIBIT INDEX
| Exhibit No. | Description | |
|
|
|
|
| 99.1 | Press Release of the Company dated February 3, 2010 |
|
Contact
Information:
Investor
Relations
941-556-2601
investor-relations@roperind.com
|
 Roper
Industries, Inc.
|
Roper
Industries Announces Results For 2009 Fourth
Quarter and Full Year
Fourth
Quarter Net Earnings Per Diluted Share of $0.77
Orders
Increase Over Prior Year Period
Fourth
Quarter Operating Cash Flow of $120 Million
Full
Year Operating Cash Flow of $368 Million
Sarasota, Florida, February 3, 2010
.... Roper Industries, Inc. (NYSE: ROP) reported financial
results for the fourth quarter and full year ended December 31,
2009.
Net
earnings for the fourth quarter were $72 million, or $0.77 per diluted
share. Adjusted earnings per diluted share were $0.81, which excludes
$0.04 of restructuring and acquisition charges. Sales in the fourth
quarter were $554 million, a 4% decrease from the same period in 2008. Orders
were $565 million, an increase of 1% over the fourth quarter of the prior year,
marking the first time since the third quarter of 2008 that orders exceeded the
prior year. Operating margin was 21.8%, an increase of 110 basis
points from the prior year, and operating cash flow was $120 million,
representing 22% of revenue and 166% of net earnings.
Compared
sequentially to the third quarter, Roper’s fourth quarter performance reflected
a double digit increase in sales and orders, a 31% increase in operating profit
and margin expansion of 290 basis points.
For the
full year, net earnings were $239 million, or $2.58 per diluted share, including
$0.12 of restructuring and acquisition charges. Sales for the year
were $2.05 billion, down 11% from the prior year. Operating cash flow
was $368 million, representing 18% of revenue and 153% of net
earnings.
“Our
businesses performed very well during the fourth quarter, as we saw continued
improvement in order trends across all segments,” said Brian Jellison, Roper’s
Chairman, President and CEO. “Margins expanded as a result of strong
execution, favorable leverage on increased sales compared to the third quarter,
and the benefits of prior restructuring actions. Our consistent focus
on cash flow and working capital management resulted in exceptional cash
performance for 2009, the twelfth consecutive year that free cash flow exceeded
net income.”
“We
invested over $350 million in two acquisitions during the quarter,” continued
Mr. Jellison. “Verathon, a leading global provider of proprietary
medical devices and services, expands our medical platform and provides global
coverage to hospitals, primary care physicians, acute care and military end
markets with direct sales coverage. United Toll Systems, which
provides software and in-lane hardware systems for toll and traffic markets,
adds to our RF solutions for the toll industry. We are excited about
the contribution of these businesses to our growth in 2010 and expect to pursue
other strategic acquisitions during the year.”
2010 Outlook and
Guidance
The
Company expects full year diluted earnings per share (DEPS) to be between $2.83
and $3.03 with operating cash flow between $375 million and $400
million. First quarter DEPS are expected to be between $0.62 and
$0.65, which excludes an expected $0.03 impact from fair value adjustments to
acquisition-related inventory. The Company’s guidance excludes future
acquisitions.
Table
1: Sales Growth
|
Q4
2009 |
FY
2009 |
||
|
Organic
Growth
|
(8%)
|
(14%)
|
|
|
Acquisitions
/ Divestitures
|
2%
|
4%
|
|
|
Foreign
Currency
|
2%
|
(1%)
|
|
|
Total
Sales Growth
|
(4%)
|
(11%)
|
Table
2: Free Cash Flow (millions)
|
FY
2009 |
|
|
Operating
Cash Flow
|
$368
|
|
Less:
Capital Expenditures
|
(26)
|
|
Free
Cash Flow
|
$342
|
Conference Call to be Held
at 8:00 AM (ET) Today
A
conference call to discuss these results has been scheduled for 8:00 AM ET on
Wednesday, February 3, 2010. The call can be accessed via webcast or
by dialing +1 888-539-3679 (US/Canada) or +1 719-457-2638, using confirmation
code 1194375. 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 (719) 457-0820 and using the access code
1194375.
About Roper
Industries
Roper
Industries is a market-driven, diversified growth company and is a constituent
of the S&P 500, Fortune 1000, and the Russell 1000 indices. 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)
|
||||||||
|
December
31,
|
December
31,
|
|||||||
|
ASSETS
|
2009
|
2008
|
||||||
|
CURRENT
ASSETS:
|
||||||||
|
Cash
and cash equivalents
|
$ | 167,708 | $ | 178,069 | ||||
|
Accounts
receivable
|
381,658 | 376,855 | ||||||
|
Inventories
|
178,795 | 185,919 | ||||||
|
Deferred
taxes
|
27,306 | 29,390 | ||||||
|
Unbilled
receivable
|
57,153 | 61,168 | ||||||
|
Other
current assets
|
58,125 | 26,906 | ||||||
|
Total
current assets
|
870,745 | 858,307 | ||||||
|
PROPERTY,
PLANT AND EQUIPMENT, NET
|
109,493 | 112,463 | ||||||
|
|
||||||||
|
OTHER
ASSETS:
|
||||||||
|
Goodwill
|
2,388,432 | 2,118,852 | ||||||
|
Other
intangible assets, net
|
868,900 | 804,020 | ||||||
|
Deferred
taxes
|
33,123 | 28,050 | ||||||
|
Other
assets
|
57,043 | 49,846 | ||||||
|
Total
other assets
|
3,347,498 | 3,000,768 | ||||||
|
TOTAL
ASSETS
|
$ | 4,327,736 | $ | 3,971,538 | ||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
CURRENT
LIABILITIES:
|
||||||||
|
Accounts
payable
|
$ | 110,103 | $ | 121,807 | ||||
|
Accrued
liabilities
|
253,441 | 261,682 | ||||||
|
Income
taxes payable
|
- | 1,892 | ||||||
|
Deferred
taxes
|
1,671 | - | ||||||
|
Current
portion of long-term debt
|
112,796 | 233,526 | ||||||
|
Total
current liabilities
|
478,011 | 618,907 | ||||||
|
NONCURRENT
LIABILITIES:
|
||||||||
|
Long-term
debt
|
1,040,962 | 1,033,689 | ||||||
|
Deferred
taxes
|
328,299 | 272,182 | ||||||
|
Other
liabilities
|
58,974 | 42,826 | ||||||
|
Total
liabilities
|
1,906,246 | 1,967,604 | ||||||
|
STOCKHOLDERS'
EQUITY:
|
||||||||
|
Common
stock
|
958 | 919 | ||||||
|
Additional
paid-in capital
|
982,321 | 815,736 | ||||||
|
Retained
earnings
|
1,395,586 | 1,187,467 | ||||||
|
Accumulated
other comprehensive earnings
|
63,945 | 21,513 | ||||||
|
Treasury
stock
|
(21,320 | ) | (21,701 | ) | ||||
|
Total
stockholders' equity
|
2,421,490 | 2,003,934 | ||||||
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 4,327,736 | $ | 3,971,538 | ||||
|
Roper
Industries, Inc. and Subsidiaries
|
||||||||||||||||
|
Condensed
Consolidated Statements of Earnings (unaudited)
|
||||||||||||||||
|
(Amounts
in thousands, except per share data)
|
||||||||||||||||
|
Three
months ended
|
Twelve
months ended
|
|||||||||||||||
|
December
31,
|
December
31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Net
sales
|
$ | 553,638 | $ | 575,862 | $ | 2,049,668 | $ | 2,306,371 | ||||||||
|
Cost
of sales
|
262,226 | 278,054 | 1,006,530 | 1,118,083 | ||||||||||||
|
Gross
profit
|
291,412 | 297,808 | 1,043,138 | 1,188,288 | ||||||||||||
|
Selling,
general and administrative expenses
|
170,644 | 178,753 | 647,742 | 702,127 | ||||||||||||
|
Income
from operations
|
120,768 | 119,055 | 395,396 | 486,161 | ||||||||||||
|
Interest
expense
|
16,836 | 18,678 | 58,544 | 60,819 | ||||||||||||
|
Other
income (expense)
|
(1 | ) | 5,169 | 2,916 | 3,474 | |||||||||||
|
Earnings
from continuing operations before
|
||||||||||||||||
|
income
taxes
|
103,931 | 105,546 | 339,768 | 428,816 | ||||||||||||
|
Income
taxes
|
32,007 | 34,675 | 100,287 | 146,942 | ||||||||||||
|
Net
Earnings
|
$ | 71,924 | $ | 70,871 | $ | 239,481 | $ | 281,874 | ||||||||
|
Earnings
per share:
|
||||||||||||||||
|
Basic
|
$ | 0.79 | $ | 0.79 | $ | 2.64 | $ | 3.15 | ||||||||
|
Diluted
|
$ | 0.77 | $ | 0.77 | $ | 2.58 | $ | 3.01 | ||||||||
|
Weighted
average common and common
|
||||||||||||||||
|
equivalent
shares outstanding:
|
||||||||||||||||
|
Basic
|
91,156 | 89,726 | 90,685 | 89,468 | ||||||||||||
|
Diluted
|
93,370 | 92,336 | 92,820 | 93,699 | ||||||||||||
|
Roper
Industries, Inc. and Subsidiaries
|
||||||||
|
Condensed
Consolidated Statements of Cash Flows (unaudited)
|
||||||||
|
(Amounts
in thousands)
|
||||||||
|
Twelve
months ended
|
||||||||
|
December
31,
|
||||||||
|
2009
|
2008
|
|||||||
|
Net
earnings
|
$ | 239,481 | $ | 281,874 | ||||
|
Non-cash
items:
|
||||||||
|
Depreciation
|
34,163 | 33,900 | ||||||
|
Amortization
|
69,285 | 69,208 | ||||||
|
Stock-based
compensation expense
|
27,476 | 30,905 | ||||||
|
Income
taxes
|
(6,225 | ) | (2,675 | ) | ||||
|
Changes
in assets and liabilities:
|
||||||||
|
Receivables
|
30,993 | 13,659 | ||||||
|
Inventory
|
31,081 | (8,728 | ) | |||||
|
Accounts
payable
|
(17,011 | ) | 2,586 | |||||
|
Accrued
liabilities
|
(41,790 | ) | 6,623 | |||||
|
Other,
net
|
68 | 7,086 | ||||||
|
Cash
provided by operating activities
|
367,521 | 434,438 | ||||||
|
Business
acquisitions, net of cash acquired
|
(354,561 | ) | (704,764 | ) | ||||
|
Capital
expenditures
|
(25,885 | ) | (30,047 | ) | ||||
|
Other,
net
|
6,254 | (4,483 | ) | |||||
|
Cash
used by investing activities
|
(374,192 | ) | (739,294 | ) | ||||
|
Principal
debt borrowings
|
500,000 | 850,000 | ||||||
|
Principal
debt payments
|
(474,270 | ) | (957,745 | ) | ||||
|
Revolver
borrowings (payments), net
|
(139,000 | ) | 313,000 | |||||
|
Debt
issuance costs
|
(4,708 | ) | (10,226 | ) | ||||
|
Dividends
|
(29,823 | ) | (25,887 | ) | ||||
|
Excess
tax benefit from share-based payment
|
2,813 | 5,359 | ||||||
|
Proceeds
from issuance of common stock
|
121,427 | - | ||||||
|
Proceeds
from exercise of stock options
|
10,505 | 11,037 | ||||||
|
Other,
net
|
(563 | ) | 2,381 | |||||
|
Cash
provided by (used by) financing activities
|
(13,619 | ) | 187,919 | |||||
|
Effect
of exchange rate changes on cash
|
9,929 | (13,762 | ) | |||||
|
Net
increase (decrease) in cash and equivalents
|
(10,361 | ) | (130,699 | ) | ||||
|
Cash
and equivalents, beginning of period
|
178,069 | 308,768 | ||||||
|
Cash
and equivalents, end of period
|
$ | 167,708 | $ | 178,069 | ||||
|
Roper
Industries, Inc. and Subsidiaries
|
||||||||||||||||||||||||||||||||
|
Selected
Segment Financial Data (unaudited)
|
||||||||||||||||||||||||||||||||
|
(Amounts
in thousands and percents of net sales)
|
||||||||||||||||||||||||||||||||
|
Three
months ended December 31,
|
Twelve
months ended December 31,
|
|||||||||||||||||||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||||||||||||
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
|||||||||||||||||||||||||
|
Net
sales:
|
||||||||||||||||||||||||||||||||
|
Industrial
Technology
|
$ | 138,489 | $ | 161,693 | $ | 536,219 | $ | 687,622 | ||||||||||||||||||||||||
|
Energy
Systems & Controls
|
125,922 | 137,576 | 440,919 | 548,214 | ||||||||||||||||||||||||||||
|
Scientific
& Industrial Imaging
|
115,862 | 93,336 | 354,776 | 375,542 | ||||||||||||||||||||||||||||
|
RF
Technology
|
173,365 | 183,257 | 717,754 | 694,993 | ||||||||||||||||||||||||||||
|
Total
|
$ | 553,638 | $ | 575,862 | $ | 2,049,668 | $ | 2,306,371 | ||||||||||||||||||||||||
|
Gross
profit:
|
||||||||||||||||||||||||||||||||
|
Industrial
Technology
|
$ | 64,892 | 46.9 | % | $ | 79,985 | 49.5 | % | $ | 255,393 | 47.6 | % | $ | 333,704 | 48.5 | % | ||||||||||||||||
|
Energy
Systems & Controls
|
69,794 | 55.4 | % | 71,413 | 51.9 | % | 233,917 | 53.1 | % | 295,133 | 53.8 | % | ||||||||||||||||||||
|
Scientific
& Industrial Imaging
|
67,926 | 58.6 | % | 52,488 | 56.2 | % | 200,311 | 56.5 | % | 206,623 | 55.0 | % | ||||||||||||||||||||
|
RF
Technology
|
88,800 | 51.2 | % | 93,922 | 51.3 | % | 353,517 | 49.3 | % | 352,828 | 50.8 | % | ||||||||||||||||||||
|
Total
|
$ | 291,412 | 52.6 | % | $ | 297,808 | 51.7 | % | $ | 1,043,138 | 50.9 | % | $ | 1,188,288 | 51.5 | % | ||||||||||||||||
|
Operating
profit*:
|
||||||||||||||||||||||||||||||||
|
Industrial
Technology
|
$ | 32,345 | 23.4 | % | $ | 41,643 | 25.8 | % | $ | 123,959 | 23.1 | % | $ | 178,270 | 25.9 | % | ||||||||||||||||
|
Energy
Systems & Controls
|
32,862 | 26.1 | % | 30,250 | 22.0 | % | 92,788 | 21.0 | % | 126,609 | 23.1 | % | ||||||||||||||||||||
|
Scientific
& Industrial Imaging
|
30,883 | 26.7 | % | 20,648 | 22.1 | % | 74,183 | 20.9 | % | 74,739 | 19.9 | % | ||||||||||||||||||||
|
RF
Technology
|
38,706 | 22.3 | % | 39,885 | 21.8 | % | 154,430 | 21.5 | % | 159,787 | 23.0 | % | ||||||||||||||||||||
|
Total
|
$ | 134,796 | 24.3 | % | $ | 132,426 | 23.0 | % | $ | 445,360 | 21.7 | % | $ | 539,405 | 23.4 | % | ||||||||||||||||
|
Operating
profit excluding restructuring*:
|
||||||||||||||||||||||||||||||||
|
Industrial
Technology
|
$ | 32,394 | 23.4 | % | $ | 41,835 | 25.9 | % | $ | 128,325 | 23.9 | % | $ | 178,462 | 26.0 | % | ||||||||||||||||
|
Energy
Systems & Controls
|
34,557 | 27.4 | % | 32,172 | 23.4 | % | 98,296 | 22.3 | % | 128,531 | 23.4 | % | ||||||||||||||||||||
|
Scientific
& Industrial Imaging
|
31,032 | 26.8 | % | 20,946 | 22.4 | % | 75,829 | 21.4 | % | 75,037 | 20.0 | % | ||||||||||||||||||||
|
RF
Technology
|
38,800 | 22.4 | % | 40,105 | 21.9 | % | 155,342 | 21.6 | % | 160,007 | 23.0 | % | ||||||||||||||||||||
|
Total
|
$ | 136,783 | 24.7 | % | $ | 135,058 | 23.5 | % | $ | 457,792 | 22.3 | % | $ | 542,037 | 23.5 | % | ||||||||||||||||
|
Net
Orders:
|
||||||||||||||||||||||||||||||||
|
Industrial
Technology
|
$ | 137,159 | $ | 141,850 | $ | 528,208 | $ | 656,176 | ||||||||||||||||||||||||
|
Energy
Systems & Controls
|
128,452 | 138,919 | 427,003 | 541,472 | ||||||||||||||||||||||||||||
|
Scientific
& Industrial Imaging
|
113,699 | 93,937 | 349,132 | 383,543 | ||||||||||||||||||||||||||||
|
RF
Technology
|
185,415 | 184,046 | 719,666 | 722,670 | ||||||||||||||||||||||||||||
|
Total
|
$ | 564,725 | $ | 558,752 | $ | 2,024,009 | $ | 2,303,861 | ||||||||||||||||||||||||
|
* Operating
profit is before unallocated corporate general and administrative
expenses. These expenses
|
||||||||||||||||||||||||||||||||
|
were
$14,028 and $13,371 for the three months ended December 31, 2009 and 2008,
respectively, and
|
||||||||||||||||||||||||||||||||
|
$49,964
and $53,244 for the twelve months ended December 31, 2009 and 2008,
respectively.
|
||||||||||||||||||||||||||||||||