View:
Download DOC
Download PDF
Download XLS
 

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

October 24, 2003

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.)
     
2160 SATELLITE BLVD., SUITE 200, DULUTH, GEORGIA   30097
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)   (ZIP CODE)

(770) 495-5100

(REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE)

160 BEN BURTON ROAD, BOGART, GEORGIA 30622

(FORMER ADDRESS)

 

 

ITEM 5.     OTHER EVENTS

As a result of the change in the Company’s fiscal year from October 31 to December 31, the Company’s 2004 Annual Meeting of Shareholders is scheduled, subject to change, to be held on May 14, 2004, as opposed to March 19, 2004, as previously disclosed in the Company’s proxy statement for the 2003 Annual Meeting of Shareholders. The Company intends to mail its proxy statement for the 2004 Annual Meeting of Shareholders on or about March 31, 2004.

If a Roper shareholder wishes to present a proposal for consideration at the 2004 Annual Meeting of Shareholders, the proposal must be sent by certified mail-return receipt requested and must be received at the Company’s corporate offices no later than December 2, 2003 for inclusion in the proxy statement if appropriate for consideration under applicable securities laws. Shareholder proposals should be sent to:

Roper Industries, Inc.
2160 Satellite Boulevard, Suite 200
Duluth, GA 30097
Attention: General Counsel

In addition, a shareholder may bring business before the 2004 Annual Meeting of Shareholders, other than a proposal included on the proxy statement, or may submit nominations for directors, if the shareholder complies with the requirements specified in the Company’s bylaws. Under the bylaws, in order to be considered or brought before the 2004 Annual Meeting of Shareholders, any such proposal or nomination must be received by February 14, 2004 at the Company's corporate offices. In addition, all proposals or nominations must contain the information specified in Article I, Section 8 of the bylaws.

ITEM 7.     FINANCIAL STATEMENTS AND EXHIBITS

     
(a)   Financial Statements of Business Acquired
     
    Not Applicable
     
(b)   Pro Forma Financial Statements
     
    Not Applicable
     
(c)   Exhibits
     
    99.1     Press Release of the Company dated October 24, 2003.

ITEM 12.     RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 24, 2003, Roper Industries, Inc. (“the Company”) issued the press release containing information about the Company’s results of operations for the third quarter ended September 30, 2003. A copy of the press release is furnished as Exhibit 99.1

 

SIGNATURE

     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/ Martin S. Headley  
     
      Martin S. Headley,
Vice President, Chief Financial Officer 		  Date: October 27, 2003


EXHIBIT INDEX

     
Exhibit No.   Description
 
99.1   Press Release of the Company dated October 24, 2003

 

Exhibit 99.1

Contact Information:

Chris Hix
Director of Investor Relations
+1 (770) 495-5100
investor-relations@roperind.com


FOR IMMEDIATE RELEASE


ROPER INDUSTRIES REPORTS RECORD RESULTS FOR ITS THIRD CALENDAR QUARTER

Diluted EPS from Continuing Operations Increase 27%;
Continued Organic Sales Growth Contributes to 8% Gain in Net Sales

Duluth, Georgia, October 24, 2003 ... Roper Industries, Inc. (NYSE: ROP) announced record results for its third quarter of calendar 2003, ended September 30, 2003. Diluted earnings per share (DEPS) from continuing operations for the third quarter rose 27% to $0.62 from $0.49 in the third quarter of 2002. Net DEPS including discontinued operations were $0.56 in the 2003 third quarter compared with $0.48 in the year-ago quarter, or up 17%. In September, Roper announced that it changed its fiscal year-end to December 31 to more closely align its reporting periods with its customers.

Net sales rose 8% in the third quarter to $172 million from $159 million in the third quarter of 2002. Excluding acquisitions made in 2002 (see Table 1) and net sales to Gazprom, Roper’s net sales in the fiscal 2003 third quarter increased 9% (see Table 2 for a reconciliation of net sales).

“We are pleased to report another quarter of organic growth, excluding Gazprom, a trend which began earlier this year and clearly reflects the positive results delivered by our market-focused structure,” said Brian Jellison, President and Chief Executive Officer. “Over the course of this year, our business segments have made significant strides in implementing initiatives designed to drive improved sales and profitability.” Operating margins expanded substantially with the Company reporting operating margins of 18.9% in the third quarter, or 19.5% before restructuring charges of approximately $1 million, compared with 17.2% in the prior year.

Mr. Jellison continued, “With this strong operational foundation, Roper is positioned to deliver further growth through our existing businesses and the successful execution of our strategic investment program. In this regard, we are excited about our announcement earlier this week that we have entered into a definitive agreement to acquire Neptune Technology Group Holdings Inc., which includes four businesses with excellent growth and cash generation potential.”

Roper reported cash flow from operating activities of $21 million in its third quarter and a net debt-to-net capital ratio of 38.3%, compared to 45.2% at the beginning of the calendar year (see Table 3 for a computation of net debt-to-net capital).

The Company commented that it still expects full year DEPS from continuing operations of $2.00 or more, which is an increase over the prior year, even after $6 to $6.5 million of expected 2003 restructuring costs and despite almost $30 million lower net sales to Gazprom in the current year.

Results by Segment

Energy Systems & Controls segment third quarter net sales of $42 million were 25% higher than sales in the prior year period, principally as a result of the 2002 acquisition of Zetec and higher net sales for oil & gas applications, partially offset by a 51% reduction in net sales to Gazprom. Operating profit increased 50% to over $10 million due to the full quarter contribution in 2003 from Zetec and higher net sales for oil & gas applications. Operating margins increased from 21% to 25%. Net orders of $38 million in the quarter were 2% lower than the prior year quarter due principally to a 31% decline in net orders from Gazprom. Excluding Gazprom, orders increased 17%.

The Industrial Technology segment reported net sales of $43 million in the third quarter, 4% lower than in the year-ago period primarily as a result of the timing of water/wastewater projects. Third quarter net orders improved 8% over the prior year to $40 million. Operating profit of $9 million was lower than the prior year mostly due to restructuring costs and lower net sales in this year’s third quarter. Third quarter operating margins were 22%; excluding restructuring charges, operating margins were 23%.

The Instrumentation segment posted $45 million of net sales, a 1% increase from the prior year period, and reported a 6% increase in operating profit. Benefits from the 2002 acquisition of Qualitek and foreign exchange rate changes more than offset lower sales into semiconductor, telecom and refining markets. Third quarter operating profit increased 57% sequentially from the second quarter due to the completion of restructuring activities.

Scientific & Industrial Imaging segment net sales rose 17% in the third quarter from the prior year to $43 million due to strong shipments for electron microscopy applications, the 2002 acquisition of QImaging and increased motion imaging sales. Net orders increased 4% in the third quarter. Operating profits increased 78% versus the prior year to over $8 million. Operating profit margins increased from 12% to 19% on higher net sales; excluding restructuring costs, operating profit margins increased to 20%.

Conference Call to be Held at 2:00 pm (ET) on Monday

The Company will conduct a webcasted conference call at 2:00 pm ET on Monday, October 27, 2003. The call can be accessed via webcast or by dialing (800) 810-0924 (US/Canada) or +1 (913) 981-4900, using confirmation code 203603. Webcast information and a copy of the Company’s presentation will be made available on Roper’s website prior to the start of the call at www.roperind.com. Telephonic replays of the conference call will be available for up to two weeks by calling +1 (719) 457-0820 and using the passcode 203603.

Table 1: Acquisitions

Qualitek, Instrumentation Segment, July 2002
Zetec, Energy Systems & Controls Segment, August 2002
QImaging, Scientific & Industrial Imaging Segment, August 2002
Duncan Technologies, Scientific & Industrial Imaging Segment, August 2002
Definitive Imaging, Scientific & Industrial Imaging Segment, September 2002

Table 2: Reconciliation of Net Sales (Millions)

Q3 2003
 Q3 2002
Net sales excluding 2002 acquisitions                
   and excluding net sales to Gazprom   $ 147   $ 135    +9%  
Add: Net sales from 2002 acquisitions    18    9      
Add: Net sales to Gazprom    7    15    -51%  
Equals: Net sales as reported   $ 172   $ 159    +8%  

Table 3: Computation of Net Debt-to-Net Capital (Millions)

September 30, 2003
 December 31,
2002
Total debt     $ 288   $ 329  
Less: Cash    (14 )  (15 )
Equals: Net debt    274    314  
Add: Shareholders' equity    442    381  
Equals: Net capital   $ 716   $ 695  
Net debt divided by Net capital    38.3 %  45.2 %

About Roper Industries

  Roper Industries is a diversified industrial growth company providing engineered products and solutions for global niche markets. Additional information about Roper Industries, including a glossary for terms used by the Company and registration for Company’s press releases via email, is available on the Company’s website, 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 our proposed acquisition of Neptune Technology Group Holdings Inc. (the acquisition), the terms of our financing plan, and the impact of our acquisition of the acquisition on our future results of operations and cash flows. These statements reflect management’s current beliefs and are not guarantees of performance. They involve risks and uncertainties, which could cause actual results to differ materially from those contained in any forward looking statement. Such risks and uncertainties include our ability to complete the acquisition, secure financing on favorable terms, integrate the acquisition and realize expected synergies. We also face other general risks, including reductions in our business with Gazprom, our ability to realize cost savings from our restructuring initiatives, unfavorable changes in foreign exchange rates, difficulties associated with exports, risks associated with our international operations, difficulties in making and integrating acquisitions, 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. Other important risk factors are discussed in our Annual Report on Form 10-K for the fiscal year ended October 31, 2002, and may be discussed in 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.
  We refer to certain non-GAAP financial measures in this presentation. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found within this press release.

Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(Amounts in thousands)

September 30,
2003
 October 31,
2002
ASSETS            
CURRENT ASSETS:  
  Cash and cash equivalents   $ 14,510   $ 12,422  
  Accounts receivable    120,344    138,290  
  Inventories    95,233    88,313  
  Other current assets    5,238    5,224  
  Assets held for sale    --    4,578  
    Total current assets    235,325    248,827  
PROPERTY, PLANT AND EQUIPMENT, NET    51,908    51,089  
OTHER ASSETS:  
  Goodwill    482,465    459,233  
  Other intangible assets, net    36,852    37,032  
  Other assets    29,127    32,792  
    Total other assets    548,444    529,057  
TOTAL ASSETS   $ 835,677   $ 828,973  
LIABILITIES AND STOCKHOLDERS' EQUITY  
CURRENT LIABILITIES:  
  Accounts payable   $ 33,791   $ 35,253  
  Accrued liabilities    54,732    65,153  
  Liabilities related to assets held for sale    --    1,698  
  Income taxes payable    3,093    7,618  
  Current portion of long-term debt    1,017    20,515  
    Total current liabilities    92,633    130,237  
NONCURRENT LIABILITIES:  
  Long-term debt    287,470    311,590  
  Other liabilities    13,846    11,134  
    Total liabilities    393,949    452,961  
STOCKHOLDERS' EQUITY:  
  Common stock    328    326  
  Additional paid-in capital    94,802    89,153  
  Retained earnings    338,159    304,995  
  Accumulated other comprehensive earnings    32,645    5,940  
  Treasury stock    (24,206 )  (24,402 )
    Total stockholders' equity    441,728    376,012  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 835,677   $ 828,973  




Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (unaudited)
(Amounts in thousands, except per share data)


Three months ended
September 30,
 Nine months ended
September 30,
2003
 2002
 2003
 2002
Net sales     $ 172,064   $ 159,285   $ 487,562   $ 455,375  
Cost of sales    78,894    73,953    230,504    210,448  
Gross profit    93,170    85,332    257,058    244,927  
Selling, general and administrative expenses    60,649    57,917    178,262    163,785  
Income from operations*    32,521    27,415    78,796    81,142  
Interest expense    4,018    4,682    12,653    13,703  
Euro debt currency exchange loss    --    --    --    4,093  
Other income (expense)    (239 )  (312 )  (195 )  1,795  
Earnings from continuing operations before  
  income taxes    28,264    22,421    65,948    65,141  
Income taxes    8,479    6,951    19,784    20,196  
Earnings from continuing operations    19,785    15,470    46,164    44,945  
Loss from discontinued operations, net of tax    (1,912 )  (242 )  (2,822 )  (330 )
Net earnings   $ 17,873   $ 15,228   $ 43,342   $ 44,615  
 
Earnings per share:  
  Basic:  
    Earnings from continuing operations before  
      change in accounting principle   $ 0.63   $ 0.49   $ 1.47   $ 1.44  
    Loss from discontinued operations    ( 0.06 )  ( 0.01 )  ( 0.09 )  ( 0.01 )
    Net Earnings   $ 0.57   $ 0.49   $ 1.38   $ 1.43  
  Diluted:  
    Earnings from continuing operations before  
      change in accounting principle   $ 0.62   $ 0.49   $ 1.45   $ 1.41  
    Loss from discontinued operations    ( 0.06 )  ( 0.01 )  ( 0.09 )  ( 0.01 )
    Net Earnings   $ 0.56   $ 0.48   $ 1.36   $ 1.40  
Weighted average common and common  
  equivalent shares outstanding:  
    Basic    31,571    31,323    31,482    31,257  
    Diluted    32,055    31,686    31,844    31,854  

*  Income from operations reflects $1,028 and $5,185 of restructuring costs incurred during the three and nine months ended September 30, 2003, respectively.





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,
2003
 2002
 2003
 2002
Amount
 %
 Amount
 %
 Amount
 %
 Amount
 %
Net sales:                                    
  Instrumentation   $ 44,607       $ 44,269       $ 130,445       $ 128,697      
  Industrial Technology    43,213        45,136        126,816        126,120      
  Energy Systems & Controls    41,621        33,367        105,260        91,669      
  Scientific & Industrial Imaging    42,623        36,513        125,041        108,889      
    Total   $ 172,064       $ 159,285       $ 487,562       $ 455,375      
Gross profit:  
  Instrumentation   $ 26,316    59.0   $ 25,787    58.3   $ 76,223    58.4   $ 73,919    57.4  
  Industrial Technology    19,926    46.1    21,163    46.9    58,576    46.2    58,295    46.2  
  Energy Systems & Controls    23,053    55.4    19,285    57.8    55,253    52.5    56,021    61.1  
  Scientific & Industrial Imaging    23,875    56.0    19,097    52.3    67,006    53.6    56,692    52.1  
    Total   $ 93,170    54.1   $ 85,332    53.6   $ 257,058    52.7   $ 244,927    53.8  
Operating profit*:  
  Instrumentation   $ 8,200    18.4   $ 7,714    17.4   $ 21,042    16.1   $ 21,896    17.0  
  Industrial Technology    9,394    21.7    10,935    24.2    27,586    21.8    29,287    23.2  
  Energy Systems & Controls    10,636    25.6    7,099    21.3    19,591    18.6    22,151    24.2  
  Scientific & Industrial Imaging    8,097    19.0    4,561    12.5    20,796    16.6    16,020    14.7  
    Total   $ 36,327    21.1   $ 30,309    19.0   $ 89,015    18.3   $ 89,354    19.6  
Bookings:  
  Instrumentation   $ 45,144       $ 44,260       $ 126,930       $ 123,625      
  Industrial Technology    40,315        37,434        127,892        120,828      
  Energy Systems & Controls    37,676        38,286        105,511        101,796      
  Scientific & Industrial Imaging    39,094        37,646        112,064        111,849      
    Total   $ 162,229       $ 157,626       $ 472,397       $ 458,098      

* Operating profit is before unallocated corporate general and administrative expenses. Such expenses were $3,806 and $2,894 for the three months
ended September 30, 2003 and 2002, respectively, and $10,219 and $8,212 for the nine months ended September 30, 2003 and 2002, respectively.





Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(Amounts in thousands)


Nine months ended
September 30,
2003
 2002
Net earnings     $ 43,342   $ 44,615  
Depreciation    8,556    8,350  
Amortization    3,550    2,516  
Other, net    2,322    10,029  
  Cash provided by operating activities    57,770    65,510  
Business acquisitions, net of cash acquired    (1,654 )  (70,452 )
Capital expenditures    (8,084 )  (4,502 )
Other, net    (1,969 )  (4,809 )
  Cash used by investing activities    (11,707 )  (79,763 )
Debt borrowings (payments), net    (45,800 )  14,736  
Dividends    (8,284 )  (7,749 )
Other, net    5,340    5,484  
  Cash used by financing activities    (48,744 )  12,471  
Effect of exchange rate changes on cash    1,921    1,198  
Net increase in cash and equivalents    (760 )  (584 )
Cash and equivalents, beginning of period    15,270    19,471  
Cash and equivalents, end of period   $ 14,510   $ 18,887