Table 1: Adjusted Revenue and EBITDA Reconciliation ($M) (From Continuing Operations) | |||||||||||||||||||||||||||||||||||
Q4 2021 | Q4 2022 | V % | FY 2021 | FY 2022 | V % | ||||||||||||||||||||||||||||||
Adjusted Revenue Reconciliation | |||||||||||||||||||||||||||||||||||
GAAP Revenue | $ | 1,257 | $ | 1,431 | 14 | % | $ | 4,834 | $ | 5,372 | 11 | % | |||||||||||||||||||||||
Purchase accounting adjustment to acquired deferred revenue | — | — | 1 | — | |||||||||||||||||||||||||||||||
Adjusted Revenue | $ | 1,257 | $ | 1,431 | 14 | % | $ | 4,835 | $ | 5,372 | 11 | % | |||||||||||||||||||||||
Components of Adjusted Revenue Growth | |||||||||||||||||||||||||||||||||||
Organic | 7 | % | 9 | % | |||||||||||||||||||||||||||||||
Acquisitions/Divestitures | 8 | % | 3 | % | |||||||||||||||||||||||||||||||
Foreign Exchange | (2) | % | (1) | % | |||||||||||||||||||||||||||||||
Total Adjusted Revenue Growth | 14 | % | 11 | % | |||||||||||||||||||||||||||||||
Adjusted EBITDA Reconciliation | |||||||||||||||||||||||||||||||||||
GAAP Net Earnings | $ | 167 | $ | 247 | $ | 805 | $ | 986 | |||||||||||||||||||||||||||
Taxes | 37 | 61 | 227 | 296 | |||||||||||||||||||||||||||||||
Interest Expense | 56 | 54 | 234 | 192 | |||||||||||||||||||||||||||||||
Depreciation | 10 | 9 | 44 | 37 | |||||||||||||||||||||||||||||||
Amortization | 143 | 174 | 572 | 613 | |||||||||||||||||||||||||||||||
EBITDA | $ | 413 | $ | 546 | 32 | % | $ | 1,882 | $ | 2,124 | 13 | % | |||||||||||||||||||||||
Purchase accounting adjustment to acquired deferred revenue and commission expense | (1) | (1) | A | (5) | (5) | A | |||||||||||||||||||||||||||||
Transaction-related expenses for completed acquisitions | — | 3 | B | — | 5 | B | |||||||||||||||||||||||||||||
Legal settlement charge | — | 45 | C | — | 45 | C | |||||||||||||||||||||||||||||
Impairment related to merger of CliniSys and Sunquest | 94 | — | 94 | — | |||||||||||||||||||||||||||||||
Gain on sale related to minority investment in Sedaru | — | — | (28) | — | |||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 506 | $ | 592 | 17 | % | $ | 1,944 | $ | 2,170 | 12 | % | |||||||||||||||||||||||
% of Adjusted Revenue | 40.3 | % | 41.4 | % | +110 bps | 40.2 | % | 40.4 | % | +20 bps | |||||||||||||||||||||||||
Table 2: Adjusted Cash Flow Reconciliation ($M) (From Continuing Operations) | |||||||||||||||||||||||||||||||||||
Q4 2021 | Q4 2022 | V % | FY 2021 | FY 2022 | V % | ||||||||||||||||||||||||||||||
Operating Cash Flow | $ | 513 | $ | 56 | $ | 1,656 | $ | 607 | |||||||||||||||||||||||||||
Taxes paid in period related to divestitures | — | 419 | — | 954 | |||||||||||||||||||||||||||||||
Adjusted Operating Cash Flow | $ | 513 | $ | 476 | (7) | % | $ | 1,656 | $ | 1,560 | (6) | % | |||||||||||||||||||||||
Table 3: Adjusted Diluted Earnings Per Share ("DEPS") Reconciliation (From Continuing Operations) | |||||||||||||||||||||||||||||||||||
Q4 2021 | Q4 2022 | V % | FY 2021 | FY 2022 | V % | ||||||||||||||||||||||||||||||
GAAP DEPS | $ | 1.57 | $ | 2.32 | 48 | % | $ | 7.56 | $ | 9.23 | 22 | % | |||||||||||||||||||||||
Purchase accounting adjustment to acquired deferred revenue and commission expense | (0.01) | (0.01) | A | (0.04) | (0.04) | A | |||||||||||||||||||||||||||||
Transaction-related expenses for completed acquisitions | — | 0.02 | B | — | 0.04 | B | |||||||||||||||||||||||||||||
Legal settlement charge | — | 0.33 | C | — | 0.33 | C | |||||||||||||||||||||||||||||
Amortization of acquisition-related intangible assets | 1.04 | 1.26 | D | 4.19 | 4.44 | D | |||||||||||||||||||||||||||||
Income tax restructuring expense associated with discontinued operations | 0.06 | — | 0.17 | 0.27 | |||||||||||||||||||||||||||||||
Impairment related to merger of CliniSys and Sunquest | 0.70 | — | 0.70 | — | |||||||||||||||||||||||||||||||
Gain on sale related to minority investment in Sedaru | — | — | (0.20) | — | |||||||||||||||||||||||||||||||
Adjusted DEPS | $ | 3.36 | $ | 3.92 | 17 | % | $ | 12.39 | $ | 14.28 | 15 | % |
Table 4: Forecasted Adjusted DEPS Reconciliation (From Continuing Operations) | |||||||||||||||||||||||
Q1 2023 | FY 2023 | ||||||||||||||||||||||
Low End | High End | Low End | High End | ||||||||||||||||||||
GAAP DEPS E | $ | 2.55 | $ | 2.59 | $ | 10.92 | $ | 11.22 | |||||||||||||||
Amortization of acquisition-related intangible assets D | 1.26 | 1.26 | 4.98 | 4.98 | |||||||||||||||||||
Financial impacts associated with the minority investment in Indicor | TBD | TBD | TBD | TBD | |||||||||||||||||||
Adjusted DEPS | $ | 3.80 | $ | 3.84 | $ | 15.90 | $ | 16.20 |
Q4 2021A | Q4 2022A | FY 2021A | FY 2022A | Q1 2023E | FY 2023E | ||||||||||||||||||||||||||||||||||||
Pretax | $ | 141 | $ | 171 | $ | 565 | $ | 600 | $ | 170 | $ | 676 | |||||||||||||||||||||||||||||
After-tax | $ | 111 | $ | 135 | $ | 446 | $ | 474 | $ | 135 | $ | 534 | |||||||||||||||||||||||||||||
Per share | $ | 1.04 | $ | 1.26 | $ | 4.19 | $ | 4.44 | $ | 1.26 | $ | 4.98 |
Roper Technologies, Inc. and Subsidiaries | |||||||||||
Condensed Consolidated Balance Sheets (unaudited) | |||||||||||
(Amounts in millions) | |||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||
ASSETS: | |||||||||||
Cash and cash equivalents | $ | 792.8 | $ | 351.5 | |||||||
Accounts receivable, net | 724.5 | 687.6 | |||||||||
Inventories, net | 111.3 | 69.2 | |||||||||
Income taxes receivable | 61.0 | 16.8 | |||||||||
Unbilled receivables | 91.5 | 81.9 | |||||||||
Other current assets | 151.3 | 136.1 | |||||||||
Current assets held for sale | — | 1,078.0 | |||||||||
Total current assets | 1,932.4 | 2,421.1 | |||||||||
Property, plant and equipment, net | 85.3 | 82.7 | |||||||||
Goodwill | 15,946.1 | 13,476.3 | |||||||||
Other intangible assets, net | 8,030.7 | 6,509.1 | |||||||||
Deferred taxes | 55.9 | 50.0 | |||||||||
Equity investment | 535.0 | — | |||||||||
Other assets | 395.4 | 369.8 | |||||||||
Assets held for sale | — | 804.9 | |||||||||
Total assets | $ | 26,980.8 | $ | 23,713.9 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||||||
Accounts payable | $ | 122.6 | $ | 98.3 | |||||||
Accrued compensation | 228.8 | 261.9 | |||||||||
Deferred revenue | 1,370.7 | 1,106.3 | |||||||||
Other accrued liabilities | 454.6 | 398.7 | |||||||||
Income taxes payable | 16.6 | 117.3 | |||||||||
Current portion of long-term debt, net | 699.2 | 799.2 | |||||||||
Current liabilities held for sale | — | 340.1 | |||||||||
Total current liabilities | 2,892.5 | 3,121.8 | |||||||||
Long-term debt, net of current portion | 5,962.5 | 7,122.6 | |||||||||
Deferred taxes | 1,676.8 | 1,466.2 | |||||||||
Other liabilities | 411.2 | 390.1 | |||||||||
Liabilities held for sale | — | 49.4 | |||||||||
Total liabilities | 10,943.0 | 12,150.1 | |||||||||
Common stock | 1.1 | 1.1 | |||||||||
Additional paid-in capital | 2,510.2 | 2,307.8 | |||||||||
Retained earnings | 13,730.7 | 9,455.6 | |||||||||
Accumulated other comprehensive loss | (187.0) | (183.1) | |||||||||
Treasury stock | (17.2) | (17.6) | |||||||||
Total stockholders' equity | 16,037.8 | 11,563.8 | |||||||||
Total liabilities and stockholders' equity | $ | 26,980.8 | $ | 23,713.9 |
Roper Technologies, Inc. and Subsidiaries | ||||||||||||||||||||||||||
Condensed Consolidated Statements of Earnings (unaudited) | ||||||||||||||||||||||||||
(Amounts in millions, except per share data) | ||||||||||||||||||||||||||
Three months ended | Year ended | |||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Net revenues | $ | 1,430.9 | $ | 1,256.6 | $ | 5,371.8 | $ | 4,833.8 | ||||||||||||||||||
Cost of sales | 428.6 | 376.2 | 1,619.0 | 1,426.2 | ||||||||||||||||||||||
Gross profit | 1,002.3 | 880.4 | 3,752.8 | 3,407.6 | ||||||||||||||||||||||
Selling, general and administrative expenses | 589.8 | 525.5 | 2,228.3 | 2,072.0 | ||||||||||||||||||||||
Impairment of intangible assets | — | 94.4 | — | 94.4 | ||||||||||||||||||||||
Income from operations | 412.5 | 260.5 | 1,524.5 | 1,241.2 | ||||||||||||||||||||||
Interest expense, net | 53.8 | 55.7 | 192.4 | 233.9 | ||||||||||||||||||||||
Other income (expense), net | (50.3) | (0.4) | (50.1) | 24.6 | ||||||||||||||||||||||
Earnings before income taxes | 308.4 | 204.4 | 1,282.0 | 1,031.9 | ||||||||||||||||||||||
Income taxes | 61.1 | 37.3 | 296.4 | 226.6 | ||||||||||||||||||||||
Net earnings from continuing operations | 247.3 | 167.1 | 985.6 | 805.3 | ||||||||||||||||||||||
Earnings from discontinued operations, net of tax | 32.5 | 64.8 | 202.8 | 291.4 | ||||||||||||||||||||||
Gain on disposition of discontinued operations, net of tax | 1,648.6 | 55.9 | 3,356.3 | 55.9 | ||||||||||||||||||||||
Net earnings from discontinued operations | 1,681.1 | 120.7 | 3,559.1 | 347.3 | ||||||||||||||||||||||
Net earnings | $ | 1,928.4 | $ | 287.8 | $ | 4,544.7 | $ | 1,152.6 | ||||||||||||||||||
Net earnings per share from continuing operations: | ||||||||||||||||||||||||||
Basic | $ | 2.33 | $ | 1.58 | $ | 9.31 | $ | 7.65 | ||||||||||||||||||
Diluted | $ | 2.32 | $ | 1.57 | $ | 9.23 | $ | 7.56 | ||||||||||||||||||
Net earnings per share from discontinued operations: | ||||||||||||||||||||||||||
Basic | $ | 15.85 | $ | 1.15 | $ | 33.61 | $ | 3.30 | ||||||||||||||||||
Diluted | $ | 15.74 | $ | 1.13 | $ | 33.32 | $ | 3.26 | ||||||||||||||||||
Net earnings per share: | ||||||||||||||||||||||||||
Basic | $ | 18.18 | $ | 2.73 | $ | 42.92 | $ | 10.95 | ||||||||||||||||||
Diluted | $ | 18.06 | $ | 2.70 | $ | 42.55 | $ | 10.82 | ||||||||||||||||||
Weighted-average common shares outstanding: | ||||||||||||||||||||||||||
Basic | 106.1 | 105.5 | 105.9 | 105.3 | ||||||||||||||||||||||
Diluted | 106.8 | 106.7 | 106.8 | 106.5 |
Roper Technologies, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||
Selected Segment Financial Data (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions; percentages of net revenues) | |||||||||||||||||||||||||||||||||||||||||||||||
Three months ended December 31, | Year ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||||||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Application Software | $ | 739.8 | $ | 605.5 | $ | 2,639.5 | $ | 2,366.7 | |||||||||||||||||||||||||||||||||||||||
Network Software | 350.5 | 322.5 | 1,378.5 | 1,223.8 | |||||||||||||||||||||||||||||||||||||||||||
Technology Enabled Products | 340.6 | 328.6 | 1,353.8 | 1,243.3 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,430.9 | $ | 1,256.6 | $ | 5,371.8 | $ | 4,833.8 | |||||||||||||||||||||||||||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||||||||||||||||||||
Application Software | $ | 509.8 | 68.9 | % | $ | 419.9 | 69.3 | % | $ | 1,816.3 | 68.8 | % | $ | 1,642.9 | 69.4 | % | |||||||||||||||||||||||||||||||
Network Software | 297.7 | 84.9 | % | 272.1 | 84.4 | % | 1,165.6 | 84.6 | % | 1,029.2 | 84.1 | % | |||||||||||||||||||||||||||||||||||
Technology Enabled Products | 194.8 | 57.2 | % | 188.4 | 57.3 | % | 770.9 | 56.9 | % | 735.5 | 59.2 | % | |||||||||||||||||||||||||||||||||||
Total | $ | 1,002.3 | 70.0 | % | $ | 880.4 | 70.1 | % | $ | 3,752.8 | 69.9 | % | $ | 3,407.6 | 70.5 | % | |||||||||||||||||||||||||||||||
Operating profit*: | |||||||||||||||||||||||||||||||||||||||||||||||
Application Software | $ | 202.6 | 27.4 | % | $ | 161.9 | 26.7 | % | $ | 714.0 | 27.1 | % | $ | 633.1 | 26.8 | % | |||||||||||||||||||||||||||||||
Network Software | 148.6 | 42.4 | % | 133.5 | 41.4 | % | 570.6 | 41.4 | % | 476.8 | 39.0 | % | |||||||||||||||||||||||||||||||||||
Technology Enabled Products | 111.5 | 32.7 | % | 103.6 | 31.5 | % | 449.1 | 33.2 | % | 415.6 | 33.4 | % | |||||||||||||||||||||||||||||||||||
Total | $ | 462.7 | 32.3 | % | $ | 399.0 | 31.8 | % | $ | 1,733.7 | 32.3 | % | $ | 1,525.5 | 31.6 | % | |||||||||||||||||||||||||||||||
*Segment operating profit is before unallocated corporate general and administrative expenses and non-cash impairment charges of intangible assets. Corporate general and administrative expenses were $50.2 and $44.1 for the three months ended December 31, 2022 and 2021, respectively, and $209.2 and $189.9 for the twelve months ended December 31, 2022 and 2021, respectively. Non-cash impairment charges were $94.4 for the three and twelve months ended December 31, 2021. |
Roper Technologies, Inc. and Subsidiaries | ||||||||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) | ||||||||||||||
(Amounts in millions) | ||||||||||||||
Year ended December 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net earnings from continuing operations | $ | 985.6 | $ | 805.3 | ||||||||||
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities: | ||||||||||||||
Depreciation and amortization of property, plant and equipment | 37.3 | 44.0 | ||||||||||||
Amortization of intangible assets | 612.8 | 571.9 | ||||||||||||
Amortization of deferred financing costs | 11.8 | 13.5 | ||||||||||||
Non-cash stock compensation | 118.5 | 123.0 | ||||||||||||
Impairment of intangible assets | — | 94.4 | ||||||||||||
Gain on disposal of assets, net of associated income tax | — | (21.6) | ||||||||||||
Income tax provision, excluding tax associated with gain on disposal of businesses and assets | 296.4 | 221.1 | ||||||||||||
Changes in operating assets and liabilities, net of acquired businesses: | ||||||||||||||
Accounts receivable | 2.5 | (73.7) | ||||||||||||
Unbilled receivables | (11.1) | (16.4) | ||||||||||||
Inventories | (43.1) | (0.3) | ||||||||||||
Accounts payable | 21.3 | 16.0 | ||||||||||||
Other accrued liabilities | (7.6) | 27.0 | ||||||||||||
Deferred revenue | 52.9 | 162.2 | ||||||||||||
Cash tax paid for gain on disposal of businesses | (953.8) | — | ||||||||||||
Cash income taxes paid, excluding tax associated with gain on disposal of businesses | (498.9) | (273.9) | ||||||||||||
Other, net | (18.0) | (36.7) | ||||||||||||
Cash provided by operating activities from continuing operations | 606.6 | 1,655.8 | ||||||||||||
Cash provided by operating activities from discontinued operations | 128.0 | 356.1 | ||||||||||||
Cash provided by operating activities | 734.6 | 2,011.9 | ||||||||||||
Cash flows from (used in) investing activities: | ||||||||||||||
Acquisitions of businesses, net of cash acquired | (4,280.1) | (217.0) | ||||||||||||
Capital expenditures | (40.1) | (28.5) | ||||||||||||
Capitalized software expenditures | (30.2) | (29.7) | ||||||||||||
Proceeds from sale of assets | — | 27.1 | ||||||||||||
Other, net | (1.4) | (1.1) | ||||||||||||
Cash used in investing activities from continuing operations | (4,351.8) | (249.2) | ||||||||||||
Proceeds from disposition of discontinued operations | 5,561.8 | 115.6 | ||||||||||||
Cash used in investing activities from discontinued operations | (0.5) | (9.3) | ||||||||||||
Cash provided by (used in) investing activities | 1,209.5 | (142.9) | ||||||||||||
(Continued) |
Roper Technologies, Inc. and Subsidiaries | ||||||||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) - Continued | ||||||||||||||
(Amounts in millions) | ||||||||||||||
Year ended December 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Cash flows from (used in) financing activities: | ||||||||||||||
Payment of senior notes | (800.0) | (500.0) | ||||||||||||
Payments under revolving line of credit, net | (470.0) | (1,150.0) | ||||||||||||
Debt issuance costs | (3.9) | — | ||||||||||||
Cash dividends to stockholders | (262.3) | (236.4) | ||||||||||||
Treasury stock sales | 14.3 | 15.1 | ||||||||||||
Proceeds from stock based compensation, net | 68.2 | 64.3 | ||||||||||||
Other, net | (0.2) | (0.1) | ||||||||||||
Cash used in financing activities from continuing operations | (1,453.9) | (1,807.1) | ||||||||||||
Cash used in financing activities from discontinued operations | (11.4) | (6.4) | ||||||||||||
Cash used in financing activities | (1,465.3) | (1,813.5) | ||||||||||||
Effect of exchange rate changes on cash | (37.5) | (12.3) | ||||||||||||
Net increase in cash and cash equivalents | 441.3 | 43.2 | ||||||||||||
Cash and cash equivalents, beginning of year | 351.5 | 308.3 | ||||||||||||
Cash and cash equivalents, end of year | $ | 792.8 | $ | 351.5 |