UNITED STATES
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
February 2, 2018
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)
ROPER TECHNOLOGIES, 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:
[ ] 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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02. Results of Operations and Financial Condition.
On February 2, 2018, Roper Technologies, Inc. (the "Company") issued a press release containing information about the Company's results of operations for the quarter ended December 31, 2017. A copy of the press release is furnished as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
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 Technologies, Inc. | |||||||
(Registrant) | |||||||
BY: | /s/ Robert Crisci | Date: | February 2, 2018 | ||||
Robert Crisci, Vice President and Chief Financial Officer | |||||||
Contact Information: Investor Relations 941-556-2601 investor-relations@ropertech.com |  Roper Technologies, Inc. |
Roper Technologies Announces Record 2017 Financial Results
Fourth Quarter Revenue Increased 21% and Operating Cash Flow Increased 36%
Full Year Operating Cash Flow Increased to $1.23 Billion
Sarasota, Florida, February 2, 2018 ... Roper Technologies, Inc. (NYSE: ROP), a diversified technology company, reported financial results for the fourth quarter and full year ended December 31, 2017.
Roper reports results - including revenue, gross margin, operating margin, net income, and diluted earnings per share (“DEPS”) - on a GAAP basis and an adjusted basis.
Fourth Quarter 2017
Fourth quarter GAAP and adjusted revenue increased 21% to $1.23 billion, and organic revenue grew 5%. GAAP gross margin expanded 40 basis points to 62.4% and adjusted gross margin expanded 30 basis points to 62.6%.
GAAP DEPS was $4.27, and adjusted DEPS was $2.70, a 23% increase. Adjusted results exclude a one-time net gain of $215 million resulting from the Tax Cuts and Jobs Act, in addition to customary adjustments.
Adjusted EBITDA grew 21% to $441 million. Operating cash flow and free cash flow both increased 36% to $369 million and $353 million, respectively.
Full Year 2017
Full year GAAP revenue increased 22% to $4.61 billion and adjusted revenue grew 23% to $4.67 billion. GAAP gross margin expanded 70 basis points to 62.2% and adjusted gross margin expanded 90 basis points to 62.6%.
Adjusted EBITDA grew 22% to $1.60 billion. Operating cash flow grew to $1.23 billion, a 28% increase and a 23% increase on an adjusted basis.
“2017 was a remarkable year for Roper as our strategic focus on asset-light diversified technology businesses continued to drive shareholder value,’’ said Brian Jellison, Roper’s Chairman, President and CEO. “Cash flow performance across our operations was outstanding, helping us reduce debt by $1.06 billion and operate with negative working capital for the first time. Our strong organic revenue growth was enhanced by contributions from our large 2016 software acquisitions, Deltek and ConstructConnect, which exceeded our initial revenue and cash flow expectations for the year.”
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2018 Outlook and Guidance
“The Tax Cuts and Jobs Act will provide significant benefits for Roper,” said Mr. Jellison. “The expected decrease in our effective tax rate will lead to increases in both earnings and cash flow in 2018 and beyond. Furthermore, our ability to better access our cash worldwide will enable us to accelerate investment and continue pursuing attractive acquisition opportunities from a robust pipeline.”
Roper expects full year adjusted DEPS between $10.88 and $11.20 with first quarter adjusted DEPS between $2.44 and $2.50.
The Company’s guidance excludes the impact of future acquisitions or divestitures.
Conference Call to be Held at 8:30 AM (ET) Today
A conference call to discuss these results has been scheduled for 8:30 AM ET on Friday, February 2, 2018. The call can be accessed via webcast or by dialing +1 888-455-2265 (US/Canada) or +1 719-325-4747, using confirmation code 1925510. Webcast information and conference call materials will be made available in the Investors section of Roper’s website (www.ropertech.com) prior to the start of the call. The webcast can also be accessed directly by using the following URL https://event.webcast. Telephonic replays will be available for up to two weeks and can be accessed by using the following registration URL https://event.replay with access code 1925510.
Use of Non-GAAP Financial Information
The Company supplements its consolidated financial statements presented on a GAAP basis with certain non-GAAP financial information to provide investors with greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial schedules or tables. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated.
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Table 1: Adjusted Operating Cash Flow Reconciliation ($M)
FY 2017 | FY 2016 | V% | ||||
GAAP Operating Cash Flow | $ 1,234 | $ 964 | 28% | |||
Cash taxes related to 2015 sale of Abel Pump | - | 37 | ||||
Adjusted Operating Cash Flow | $ 1,234 | $ 1,001 | 23% | |||
Table 2: Adjusted Revenue Reconciliation and Growth Detail ($M)
Q4 2017 | Q4 2016 | V % | |||||||||
GAAP Revenue | $ | 1,227 | $ | 1,011 | 21 | % | |||||
Purchase accounting adjustment to acquired deferred revenue | 8 | 7 | |||||||||
Adjusted Revenue | $ | 1,235 | $ | 1,018 | 21 | % | |||||
Components of Adjusted Revenue Growth | |||||||||||
Organic | 5 | % | |||||||||
Acquisitions/Divestitures | 15 | % | |||||||||
Foreign Exchange | 1 | % | |||||||||
Total Adjusted Revenue Growth | 21 | % | |||||||||
FY 2017 | FY 2016 | V % | |||||||||
GAAP Revenue | $ | 4,607 | $ | 3,790 | 22 | % | |||||
Purchase accounting adjustment to acquired deferred revenue | 57 | 15 | |||||||||
Rounding | 1 | - | |||||||||
Adjusted Revenue | $ | 4,665 | $ | 3,805 | 23 | % | |||||
Components of Adjusted Revenue Growth | |||||||||||
Organic | 5 | % | |||||||||
Acquisitions/Divestitures | 17 | % | |||||||||
Foreign Exchange | 0 | % | |||||||||
Rounding | 1 | % | |||||||||
Total Adjusted Revenue Growth | 23 | % | |||||||||
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Table 3: Adjusted Gross Margin Reconciliation ($M)
Q4 2017 | Q4 2016 | V Bps | ||||||||
GAAP Revenue | $ | 1,227 | $ | 1,011 | ||||||
Purchase accounting adjustment to acquired deferred revenue | 8 | 7 | ||||||||
Adjusted Revenue | $ | 1,235 | $ | 1,018 | ||||||
GAAP Gross Profit | $ | 765 | $ | 627 | ||||||
Purchase accounting adjustment to acquired deferred revenue | 8 | 7 | ||||||||
Adjusted Gross Profit | $ | 773 | $ | 634 | ||||||
GAAP Gross Margin | 62.4 | % | 62.0 | % | +40 bps | |||||
Adjusted Gross Margin | 62.6 | % | 62.3 | % | +30 bps | |||||
FY 2017 | FY 2016 | V Bps | ||||||||
GAAP Revenue | $ | 4,607 | $ | 3,790 | ||||||
Purchase accounting adjustment to acquired deferred revenue | 57 | 15 | ||||||||
Rounding | 1 | - | ||||||||
Adjusted Revenue | $ | 4,665 | $ | 3,805 | ||||||
GAAP Gross Profit | $ | 2,865 | $ | 2,332 | ||||||
Purchase accounting adjustment to acquired deferred revenue | 57 | 15 | ||||||||
Purchase accounting adjustment for commission expense and acquisition-related inventory step-up charge | (0) | 0 | ||||||||
Rounding | - | 1 | ||||||||
Adjusted Gross Profit | $ | 2,922 | $ | 2,348 | ||||||
GAAP Gross Margin | 62.2 | % | 61.5 | % | +70 bps | |||||
Adjusted Gross Margin | 62.6 | % | 61.7 | % | +90 bps | |||||
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Table 4: Adjusted DEPS ReconciliationA
Q4 2017 | Q4 2016 | V % | |||||||||
GAAP DEPS | $ | 4.27 | $ | 1.78 | 141 | % | |||||
Purchase accounting adjustment to acquired deferred revenue | 0.05 | 0.05 | |||||||||
Purchase accounting adjustment for commission expense | (0.01) | (0.00) | |||||||||
Acquisition-related expenses deemed significant | - | 0.04 | |||||||||
Amortization of acquisition-related intangible assetsB | 0.46 | 0.34 | |||||||||
One-time net gain resulting from the Tax Cuts and Jobs ActC | (2.07) | - | |||||||||
Rounding | - | (0.01) | |||||||||
Adjusted DEPS | $ | 2.70 | $ | 2.20 | 23 | % | |||||
FY 2017 | FY 2016 | V % | |||||||||
GAAP DEPS | $ | 9.39 | $ | 6.43 | 46 | % | |||||
Purchase accounting adjustment to acquired deferred revenue | 0.36 | 0.10 | |||||||||
Purchase accounting adjustment for commission expense | (0.03) | (0.00) | |||||||||
Acquisition-related expenses deemed significant | - | 0.04 | |||||||||
Amortization of acquisition-related intangible assetsB | 1.83 | 1.27 | |||||||||
Gain on sale of divested energy product line | (0.06) | - | |||||||||
Impairment charge on minority investment | 0.01 | - | |||||||||
Debt extinguishment charge | - | 0.01 | |||||||||
One-time net gain resulting from the Tax Cuts and Jobs ActC | (2.08) | - | |||||||||
Rounding | - | (0.01) | |||||||||
Adjusted DEPS | $ | 9.42 | $ | 7.84 | 20 | % | |||||
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Table 5A: Q4 Adjusted EBITDA Reconciliation ($M)
Q4 2017 | Q4 2016 | V% / Bps | |||||||||
GAAP Revenue | $ | 1,227 | $ | 1,011 | |||||||
Purchase accounting adjustment to acquired deferred revenue | 8 | 7 | |||||||||
Adjusted Revenue | $ | 1,235 | $ | 1,018 | |||||||
GAAP Net Earnings | $ | 444 | $ | 182 | |||||||
Taxes | (140) | 76 | |||||||||
Interest expense | 43 | 30 | |||||||||
Depreciation | 13 | 9 | |||||||||
Amortization | 74 | 54 | |||||||||
Rounding | (1) | 1 | |||||||||
EBITDA | $ | 433 | $ | 352 | |||||||
Purchase accounting adjustment to acquired deferred revenue | 8 | 7 | |||||||||
Purchase accounting adjustment for commission expense | (1) | (0) | |||||||||
Acquisition-related expenses deemed significant | - | 6 | |||||||||
Rounding | 1 | - | |||||||||
Adjusted EBITDA | $ | 441 | $ | 365 | 21 | % | |||||
% of Adjusted Revenue | 35.7 | % | 35.9 | % | (20) bps | ||||||
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Table 5B: Full Year Adjusted EBITDA Reconciliation ($M)
FY 2017 | FY 2016 | V% / Bps | |||||||||
GAAP Revenue | $ | 4,607 | $ | 3,790 | |||||||
Purchase accounting adjustment to acquired deferred revenue | 57 | 15 | |||||||||
Rounding | 1 | - | |||||||||
Adjusted Revenue | $ | 4,665 | $ | 3,805 | |||||||
GAAP Net Earnings | $ | 972 | $ | 659 | |||||||
Taxes | 63 | 282 | |||||||||
Interest expense | 181 | 112 | |||||||||
Depreciation | 50 | 37 | |||||||||
Amortization | 295 | 203 | |||||||||
Rounding | (1 | ) | - | ||||||||
EBITDA | $ | 1,560 | $ | 1,293 | |||||||
Purchase accounting adjustment to acquired deferred revenue | 57 | 15 | |||||||||
Purchase accounting adjustment for commission expense | (5 | ) | (0) | ||||||||
Acquisition-related inventory step-up charge | - | 0 | |||||||||
Acquisition-related expenses deemed significant | - | 6 | |||||||||
Gain on sale of divested Energy product line | (9 | ) | - | ||||||||
Impairment charge on minority investment | 2 | - | |||||||||
Debt extinguishment charge | - | 1 | |||||||||
Adjusted EBITDA | $ | 1,605 | $ | 1,315 | 22 | % | |||||
% of Adjusted Revenue | 34.4 | % | 34.6 | % | (20) bps | ||||||
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Table 6: Forecasted Adjusted DEPS ReconciliationA
Q1 2018 | Full Year 2018 | |||||||||||||||
Low End | High End | Low End | High End | |||||||||||||
GAAP DEPS | $ | 1.87 | $ | 1.93 | $ | 8.64 | $ | 8.96 | ||||||||
Purchase accounting adjustments to acquired deferred revenueD | 0.01 | 0.01 | 0.03 | 0.03 | ||||||||||||
Amortization of acquisition-related intangible assetsB | 0.56 | 0.56 | 2.21 | 2.21 | ||||||||||||
Adjustments to 2017 provisional income tax amounts resulting from the Tax Cuts and Jobs Act | TBD | TBD | TBD | TBD | ||||||||||||
Adjusted DEPS | $ | 2.44 | $ | 2.50 | $ | 10.88 | $ | 11.20 | ||||||||
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A. | All 2017 and 2016 adjustments taxed at 35%, all 2018 adjustments taxed at 21%. |
B. | Actual results and forecast of estimated amortization of acquisition-related intangible assets ($M, except per share data); for comparison purposes, prior period amounts are also shown below. Tax rate of 35% applied to amortization in 2016 and 2017, and a tax rate of 21% applied to amortization in 2018. |
Q4 2016A | FY 2016A | Q4 2017A | FY 2017A | Q1 2018E | FY 2018E | ||||||||||||||||||
Pretax | $ | 54 | $ | 201 | $ | 73 | $ | 292 | $ | 74 | $ | 292 | |||||||||||
After-tax | $ | 35 | $ | 131 | $ | 47 | $ | 190 | $ | 58 | $ | 231 | |||||||||||
Per share | $ | 0.34 | $ | 1.27 | $ | 0.46 | $ | 1.83 | $ | 0.56 | $ | 2.21 | |||||||||||
C. | One-time net gain resulting from the Tax Cuts and Jobs Act ($215.4M after-tax). |
D. | Forecasted acquisition-related fair value adjustments to acquired deferred revenue of Deltek and Onvia, as shown below ($M, except per share data). |
Q1 2018E | FY 2018E | ||||||
Pretax | $ | 2 | $ | 5 | |||
After-tax | $ | 2 | $ | 3 | |||
Per Share | $ | 0.01 | $ | 0.03 | |||
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About Roper Technologies
Roper Technologies is a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices. Roper designs and develops software (both software-as-a-service and licensed), and engineered products and solutions for healthcare, transportation, food, energy, water, education and other niche markets worldwide. 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.
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Roper Technologies, Inc. and Subsidiaries | |||||||
Condensed Consolidated Balance Sheets (unaudited) | |||||||
(Amounts in thousands) | |||||||
ASSETS: | December 31, 2017 | December 31, 2016 | |||||
Cash and cash equivalents | $ | 671,327 | $ | 757,200 | |||
Accounts receivable, net | 641,662 | 619,854 | |||||
Inventories, net | 204,933 | 181,952 | |||||
Unbilled receivables | 143,634 | 129,965 | |||||
Other current assets | 97,846 | 87,530 | |||||
Total current assets | 1,759,402 | 1,776,501 | |||||
Property, plant and equipment, net | 142,535 | 141,318 | |||||
Goodwill | 8,820,313 | 8,647,142 | |||||
Other intangible assets, net | 3,475,218 | 3,655,843 | |||||
Deferred taxes | 30,726 | 30,620 | |||||
Other assets | 88,219 | 73,503 | |||||
Total assets | $ | 14,316,413 | $ | 14,324,927 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||
Accounts payable | $ | 171,073 | $ | 152,067 | |||
Accrued compensation | 198,020 | 161,730 | |||||
Deferred revenue | 566,447 | 488,399 | |||||
Other accrued liabilities | 266,574 | 219,339 | |||||
Income taxes payable | 26,351 | 22,762 | |||||
Current portion of long-term debt, net | 800,944 | 400,975 | |||||
Total current liabilities | 2,029,409 | 1,445,272 | |||||
Long-term debt, net of current portion | 4,354,611 | 5,808,561 | |||||
Deferred taxes | 829,657 | 1,178,205 | |||||
Other liabilities | 239,172 | 104,024 | |||||
Total liabilities | 7,452,849 | 8,536,062 | |||||
Common stock | 1,044 | 1,036 | |||||
Additional paid-in capital | 1,602,869 | 1,489,067 | |||||
Retained earnings | 5,464,571 | 4,642,402 | |||||
Accumulated other comprehensive loss | (186,214 | ) | (324,739 | ) | |||
Treasury stock | (18,706 | ) | (18,901 | ) | |||
Total stockholders' equity | 6,863,564 | 5,788,865 | |||||
Total liabilities and stockholders' equity | $ | 14,316,413 | $ | 14,324,927 | |||
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Roper Technologies, Inc. and Subsidiaries | ||||||||||||||||
Condensed Consolidated Statements of Earnings (unaudited) | ||||||||||||||||
(Amounts in thousands, except per share data) | ||||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net revenues | $ | 1,226,583 | $ | 1,010,800 | $ | 4,607,471 | $ | 3,789,925 | ||||||||
Cost of sales | 461,471 | 383,922 | 1,742,675 | 1,457,515 | ||||||||||||
Gross profit | 765,112 | 626,878 | 2,864,796 | 2,332,410 | ||||||||||||
Selling, general and administrative expenses | 418,129 | 337,774 | 1,654,552 | 1,277,847 | ||||||||||||
Income from operations | 346,983 | 289,104 | 1,210,244 | 1,054,563 | ||||||||||||
Interest expense, net | 43,365 | 30,483 | 180,566 | 111,559 | ||||||||||||
Other income/(expense), net | (218 | ) | (355 | ) | 5,045 | (2,352 | ) | |||||||||
Earnings before income taxes | 303,400 | 258,266 | 1,034,723 | 940,652 | ||||||||||||
Income taxes | (140,472 | ) | 76,185 | 62,951 | 282,007 | |||||||||||
Net earnings | $ | 443,872 | $ | 182,081 | $ | 971,772 | $ | 658,645 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 4.33 | $ | 1.79 | $ | 9.51 | $ | 6.50 | ||||||||
Diluted | $ | 4.27 | $ | 1.78 | $ | 9.39 | $ | 6.43 | ||||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 102,395 | 101,469 | 102,168 | 101,291 | ||||||||||||
Diluted | 103,863 | 102,580 | 103,522 | 102,464 | ||||||||||||
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Roper Technologies, Inc. and Subsidiaries | ||||||||||||||||||||||||||||
Selected Segment Financial Data (unaudited) | ||||||||||||||||||||||||||||
(Amounts in thousands and percents of net revenues) | ||||||||||||||||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||||||||
RF Technology | $ | 491,438 | $ | 337,728 | $ | 1,862,126 | $ | 1,210,264 | ||||||||||||||||||||
Medical & Scientific Imaging | 367,711 | 351,987 | 1,410,349 | 1,362,813 | ||||||||||||||||||||||||
Industrial Technology | 206,994 | 178,446 | 783,707 | 706,625 | ||||||||||||||||||||||||
Energy Systems & Controls | 160,440 | 142,639 | 551,289 | 510,223 | ||||||||||||||||||||||||
Total | $ | 1,226,583 | $ | 1,010,800 | $ | 4,607,471 | $ | 3,789,925 | ||||||||||||||||||||
Gross profit: | ||||||||||||||||||||||||||||
RF Technology | $ | 306,833 | 62.4 | % | $ | 193,430 | 57.3 | % | $ | 1,136,929 | 61.1 | % | $ | 685,923 | 56.7 | % | ||||||||||||
Medical & Scientific Imaging | 262,104 | 71.3 | % | 256,941 | 73.0 | % | 1,015,200 | 72.0 | % | 997,666 | 73.2 | % | ||||||||||||||||
Industrial Technology | 102,778 | 49.7 | % | 90,683 | 50.8 | % | 396,188 | 50.6 | % | 357,362 | 50.6 | % | ||||||||||||||||
Energy Systems & Controls | 93,397 | 58.2 | % | 85,824 | 60.2 | % | 316,479 | 57.4 | % | 291,459 | 57.1 | % | ||||||||||||||||
Total | $ | 765,112 | 62.4 | % | $ | 626,878 | 62.0 | % | $ | 2,864,796 | 62.2 | % | $ | 2,332,410 | 61.5 | % | ||||||||||||
Operating profit*: | ||||||||||||||||||||||||||||
RF Technology | $ | 136,605 | 27.8 | % | $ | 99,562 | 29.5 | % | $ | 479,295 | 25.7 | % | $ | 372,467 | 30.8 | % | ||||||||||||
Medical & Scientific Imaging | 129,961 | 35.3 | % | 129,842 | 36.9 | % | 486,575 | 34.5 | % | 477,548 | 35.0 | % | ||||||||||||||||
Industrial Technology | 60,901 | 29.4 | % | 51,601 | 28.9 | % | 235,018 | 30.0 | % | 202,451 | 28.7 | % | ||||||||||||||||
Energy Systems & Controls | 51,709 | 32.2 | % | 45,874 | 32.2 | % | 151,163 | 27.4 | % | 129,602 | 25.4 | % | ||||||||||||||||
Total | $ | 379,176 | 30.9 | % | $ | 326,879 | 32.3 | % | $ | 1,352,051 | 29.3 | % | $ | 1,182,068 | 31.2 | % | ||||||||||||
Net Orders: | ||||||||||||||||||||||||||||
RF Technology | $ | 524,670 | $ | 378,587 | $ | 1,929,438 | $ | 1,278,246 | ||||||||||||||||||||
Medical & Scientific Imaging | 394,015 | 384,097 | 1,448,269 | 1,399,007 | ||||||||||||||||||||||||
Industrial Technology | 219,585 | 175,993 | 826,666 | 704,622 | ||||||||||||||||||||||||
Energy Systems & Controls | 166,258 | 146,008 | 556,692 | 514,300 | ||||||||||||||||||||||||
Total | $ | 1,304,528 | $ | 1,084,685 | $ | 4,761,065 | $ | 3,896,175 | ||||||||||||||||||||
*Segment operating profit is before unallocated corporate general and administrative expenses. These expenses were $32,193 and $37,775 for the three months ended December 31, 2017 and 2016, respectively, and $141,807 and $127,505 for the twelve months ended December 30, 2017 and 2016, respectively.
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Roper Technologies, Inc. and Subsidiaries | ||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) | ||||||||
(Amounts in thousands) | ||||||||
Years ended December 31, | ||||||||
2017 | 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 971,772 | $ | 658,645 | ||||
Adjustments to reconcile net earnings to cash flows from operating activities: | ||||||||
Depreciation and amortization of property, plant and equipment | 49,513 | 37,299 | ||||||
Amortization of intangible assets | 295,452 | 203,154 | ||||||
Amortization of deferred financing costs | 7,227 | 5,612 | ||||||
Non-cash stock compensation | 83,075 | 78,827 | ||||||
Gain on sale of assets | (9,393 | ) | — | |||||
Changes in operating assets and liabilities, net of acquired businesses: | ||||||||
Accounts receivable | (6,673 | ) | (20,734 | ) | ||||
Unbilled receivables | (13,493 | ) | (1,202 | ) | ||||
Inventories | (15,363 | ) | 6,353 | |||||
Accounts payable and accrued liabilities | 73,333 | 20,176 | ||||||
Deferred revenue | 74,881 | 25,190 | ||||||
Income taxes | (256,971 | ) | (47,589 | ) | ||||
Other, net | (18,878 | ) | (1,946 | ) | ||||
Cash provided by operating activities | 1,234,482 | 963,785 | ||||||
Cash flows from investing activities: | ||||||||
Acquisitions of businesses, net of cash acquired | (153,736 | ) | (3,721,758 | ) | ||||
Capital expenditures | (48,752 | ) | (37,305 | ) | ||||
Capitalized software expenditures | (10,784 | ) | (2,801 | ) | ||||
Proceeds from sale of assets | 10,628 | 870 | ||||||
Other, net | (6,932 | ) | 8,138 | |||||
Cash used in investing activities | (209,576 | ) | (3,752,856 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from senior notes | — | 1,200,000 | ||||||
Payment of senior notes | (400,000 | ) | — | |||||
Borrowings/(payments) under revolving line of credit, net | (660,000 | ) | 1,750,000 | |||||
Principal payments on convertible notes | — | (4,284 | ) | |||||
Debt issuance costs | — | (17,266 | ) | |||||
Cash dividends to stockholders | (142,753 | ) | (121,130 | ) | ||||
Treasury stock sales | 4,198 | 3,340 | ||||||
Proceeds from stock based compensation, net | 28,487 | 9,998 | ||||||
Redemption premium on convertible debt | — | (14,166 | ) | |||||
Other | 51 | (1,229 | ) | |||||
Cash provided by/(used in) financing activities | (1,170,017 | ) | 2,805,263 | |||||
Effect of exchange rate changes on cash | 59,238 | (37,503 | ) | |||||
Net increase/(decrease) in cash and cash equivalents | (85,873 | ) | (21,311 | ) | ||||
Cash and cash equivalents, beginning of year | 757,200 | 778,511 | ||||||
Cash and cash equivalents, end of year | $ | 671,327 | $ | 757,200 | ||||
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