Table 1: Adjusted DEPS Reconciliation A (Including Recently Announced Divestiture of Industrial Businesses) | |||||||||||||||||
Q2 2021 | Q2 2022 | V % | |||||||||||||||
GAAP DEPS | $ | 2.69 | $ | 2.52 | (6) | % | |||||||||||
2021 Divestitures (TransCore, Zetec, CIVCO Radiotherapy) B | (0.31) | 0.10 | |||||||||||||||
Purchase accounting adjustment to acquired commission expense | (0.01) | (0.01) | C | ||||||||||||||
Amortization of acquisition-related intangible assets D | 1.08 | 1.07 | |||||||||||||||
Income tax restructuring expense associated with pending industrial sale | — | 0.27 | |||||||||||||||
Adjusted DEPS | $ | 3.44 | $ | 3.95 | 15 | % |
Table 2: Adjusted Revenue and EBITDA Reconciliation ($M) (From Continuing Operations) | |||||||||||||||||
Q2 2021 | Q2 2022 | V % | |||||||||||||||
Adjusted Revenue Reconciliation | |||||||||||||||||
GAAP Revenue | $ | 1,190 | $ | 1,311 | 10 | % | |||||||||||
Adjusted Revenue | $ | 1,190 | $ | 1,311 | 10 | % | |||||||||||
Components of Adjusted Revenue Growth | |||||||||||||||||
Organic | 11 | % | |||||||||||||||
Acquisitions/Divestitures | 1 | % | |||||||||||||||
Foreign Exchange | (1) | % | |||||||||||||||
Adjusted Revenue Growth | 10 | % | |||||||||||||||
Adjusted EBITDA Reconciliation | |||||||||||||||||
GAAP Net Earnings | $ | 204 | $ | 225 | |||||||||||||
Taxes | 52 | 92 | |||||||||||||||
Interest Expense | 59 | 45 | |||||||||||||||
Depreciation | 12 | 9 | |||||||||||||||
Amortization | 143 | 146 | |||||||||||||||
EBITDA | $ | 471 | $ | 516 | 10 | % | |||||||||||
Purchase accounting adjustment to acquired commission expense | (1) | (1) | C | ||||||||||||||
Adjusted EBITDA | $ | 469 | $ | 515 | 10 | % | |||||||||||
% of Adjusted Revenue | 39.4 | % | 39.3 | % | (10 bps) |
Table 3: Forecasted Adjusted DEPS Reconciliation A (From Continuing Operations) | |||||||||||||||||||||||
Q3 2022 | FY 2022 | ||||||||||||||||||||||
Low End | High End | Low End | High End | ||||||||||||||||||||
GAAP DEPS | $ | 2.37 | $ | 2.41 | $ | 9.00 | $ | 9.16 | |||||||||||||||
Purchase accounting adjustment to acquired commission expense C | (0.01) | (0.01) | (0.04) | (0.04) | |||||||||||||||||||
Amortization of acquisition-related intangible assets D | 1.06 | 1.06 | 4.23 | 4.23 | |||||||||||||||||||
Income tax restructuring expense associated with pending industrial sale | — | — | 0.27 | 0.27 | |||||||||||||||||||
Adjusted DEPS | $ | 3.42 | $ | 3.46 | $ | 13.46 | $ | 13.62 | |||||||||||||||
A. | All 2021 and 2022 adjustments taxed at 21%. | ||||||||||||||||||||||||||||
B. | 2021 adjusted for operations of divested businesses as filed in the 2021 10-K; 2022 adjusted for gain / (loss) on disposition of discontinued operations, net of tax, associated with the working capital true-up related to the TransCore divestiture. | ||||||||||||||||||||||||||||
C. | 2022 actual results and 2022 forecast of estimated acquisition-related fair value adjustments to commission expense related to the acquisition of Vertafore as shown below ($M, except per share data). | ||||||||||||||||||||||||||||
Q2 2021A | Q2 2022A | Q3 2022E | FY 2022E | ||||||||||||||||||||||||||
Pretax | $ | (1) | $ | (1) | $ | (1) | $ | (5) | |||||||||||||||||||||
After-tax | $ | (1) | $ | (1) | $ | (1) | $ | (4) | |||||||||||||||||||||
Per Share | $ | (0.01) | $ | (0.01) | $ | (0.01) | $ | (0.04) | |||||||||||||||||||||
D. | Actual results and forecast of estimated amortization of acquisition-related intangible assets as shown below ($M, except per share data). | ||||||||||||||||||||||||||||
Including Industrial Businesses | Continuing Operations | ||||||||||||||||||||||||||||
Q2 2021A | Q2 2022A | Q3 2022E | FY 2022E | ||||||||||||||||||||||||||
Pretax | $ | 145 | $ | 144 | $ | 144 | $ | 573 | |||||||||||||||||||||
After-tax | $ | 114 | $ | 114 | $ | 113 | $ | 452 | |||||||||||||||||||||
Per share | $ | 1.08 | $ | 1.07 | $ | 1.06 | $ | 4.23 | |||||||||||||||||||||
Roper Technologies, Inc. and Subsidiaries | |||||||||||
Condensed Consolidated Balance Sheets (unaudited) | |||||||||||
(Amounts in millions) | |||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||
ASSETS: | |||||||||||
Cash and cash equivalents | $ | 2,879.1 | $ | 351.5 | |||||||
Accounts receivable, net | 628.5 | 687.6 | |||||||||
Inventories, net | 92.5 | 69.2 | |||||||||
Income taxes receivable | 21.2 | 16.8 | |||||||||
Unbilled receivables | 105.4 | 81.9 | |||||||||
Other current assets | 154.0 | 136.1 | |||||||||
Current assets held for sale | 1,111.3 | 1,078.0 | |||||||||
Total current assets | 4,992.0 | 2,421.1 | |||||||||
Property, plant and equipment, net | 77.3 | 82.7 | |||||||||
Goodwill | 13,566.6 | 13,476.3 | |||||||||
Other intangible assets, net | 6,300.7 | 6,509.1 | |||||||||
Deferred taxes | 46.3 | 50.0 | |||||||||
Other assets | 367.4 | 369.8 | |||||||||
Assets held for sale | — | 804.9 | |||||||||
Total assets | $ | 25,350.3 | $ | 23,713.9 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||||||
Accounts payable | $ | 128.8 | $ | 98.3 | |||||||
Accrued compensation | 201.4 | 261.9 | |||||||||
Deferred revenue | 1,105.2 | 1,106.3 | |||||||||
Other accrued liabilities | 388.0 | 398.7 | |||||||||
Income taxes payable | 310.4 | 117.3 | |||||||||
Current portion of long-term debt, net | 799.9 | 799.2 | |||||||||
Current liabilities held for sale | 232.4 | 340.1 | |||||||||
Total current liabilities | 3,166.1 | 3,121.8 | |||||||||
Long-term debt, net of current portion | 6,657.1 | 7,122.6 | |||||||||
Deferred taxes | 1,408.1 | 1,466.2 | |||||||||
Other liabilities | 392.5 | 390.1 | |||||||||
Liabilities held for sale | — | 49.4 | |||||||||
Total liabilities | 11,623.8 | 12,150.1 | |||||||||
Common stock | 1.1 | 1.1 | |||||||||
Additional paid-in capital | 2,417.1 | 2,307.8 | |||||||||
Retained earnings | 11,613.5 | 9,455.6 | |||||||||
Accumulated other comprehensive loss | (287.8) | (183.1) | |||||||||
Treasury stock | (17.4) | (17.6) | |||||||||
Total stockholders' equity | 13,726.5 | 11,563.8 | |||||||||
Total liabilities and stockholders' equity | $ | 25,350.3 | $ | 23,713.9 |
Roper Technologies, Inc. and Subsidiaries | |||||||||||||||||||||||
Condensed Consolidated Statements of Earnings (unaudited) | |||||||||||||||||||||||
(Amounts in millions, except per share data) | |||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net revenues | $ | 1,310.8 | $ | 1,189.8 | $ | 2,590.6 | $ | 2,345.1 | |||||||||||||||
Cost of sales | 399.3 | 350.6 | 781.9 | 689.6 | |||||||||||||||||||
Gross profit | 911.5 | 839.2 | 1,808.7 | 1,655.5 | |||||||||||||||||||
Selling, general and administrative expenses | 548.6 | 523.0 | 1,089.9 | 1,021.7 | |||||||||||||||||||
Income from operations | 362.9 | 316.2 | 718.8 | 633.8 | |||||||||||||||||||
Interest expense, net | 44.7 | 59.5 | 97.3 | 120.0 | |||||||||||||||||||
Other (expense) income, net | (1.3) | (0.2) | (3.4) | 27.1 | |||||||||||||||||||
Earnings before income taxes | 316.9 | 256.5 | 618.1 | 540.9 | |||||||||||||||||||
Income taxes | 91.9 | 52.1 | 156.7 | 113.5 | |||||||||||||||||||
Net earnings from continuing operations | 225.0 | 204.4 | 461.4 | 427.4 | |||||||||||||||||||
Earnings from discontinued operations, net of tax | 54.5 | 81.9 | 121.3 | 147.9 | |||||||||||||||||||
Gain / (loss) on disposition of discontinued operations, net of tax | (10.7) | — | 1,706.6 | — | |||||||||||||||||||
Net earnings from discontinued operations | 43.8 | 81.9 | 1,827.9 | 147.9 | |||||||||||||||||||
Net earnings | $ | 268.8 | $ | 286.3 | $ | 2,289.3 | $ | 575.3 | |||||||||||||||
Net earnings per share from continuing operations: | |||||||||||||||||||||||
Basic | $ | 2.13 | $ | 1.94 | $ | 4.36 | $ | 4.06 | |||||||||||||||
Diluted | $ | 2.11 | $ | 1.92 | $ | 4.32 | $ | 4.03 | |||||||||||||||
Net earnings per share from discontinued operations: | |||||||||||||||||||||||
Basic | $ | 0.41 | $ | 0.78 | $ | 17.28 | $ | 1.41 | |||||||||||||||
Diluted | $ | 0.41 | $ | 0.77 | $ | 17.12 | $ | 1.39 | |||||||||||||||
Net earnings per share: | |||||||||||||||||||||||
Basic | $ | 2.54 | $ | 2.72 | $ | 21.64 | $ | 5.47 | |||||||||||||||
Diluted | $ | 2.52 | $ | 2.69 | $ | 21.44 | $ | 5.42 | |||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | 105.9 | 105.3 | 105.8 | 105.1 | |||||||||||||||||||
Diluted | 106.8 | 106.4 | 106.8 | 106.2 |
Roper Technologies, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||
Selected Segment Financial Data (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions; percentages of net revenues) | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||||||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Application Software | $ | 627.5 | $ | 587.9 | $ | 1,255.7 | $ | 1,161.0 | |||||||||||||||||||||||||||||||||||||||
Network Software | 342.9 | 297.8 | 681.4 | 585.3 | |||||||||||||||||||||||||||||||||||||||||||
Technology Enabled Products | 340.4 | 304.1 | 653.5 | 598.8 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,310.8 | $ | 1,189.8 | $ | 2,590.6 | $ | 2,345.1 | |||||||||||||||||||||||||||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||||||||||||||||||||
Application Software | $ | 430.9 | 68.7% | $ | 407.3 | 69.3% | $ | 866.3 | 69.0% | $ | 804.5 | 69.3% | |||||||||||||||||||||||||||||||||||
Network Software | 289.1 | 84.3% | 250.1 | 84.0% | 574.0 | 84.2% | 489.6 | 83.6% | |||||||||||||||||||||||||||||||||||||||
Technology Enabled Products | 191.5 | 56.3% | 181.8 | 59.8% | 368.4 | 56.4% | 361.4 | 60.4% | |||||||||||||||||||||||||||||||||||||||
Total | $ | 911.5 | 69.5% | $ | 839.2 | 70.5% | $ | 1,808.7 | 69.8% | $ | 1,655.5 | 70.6% | |||||||||||||||||||||||||||||||||||
Operating profit*: | |||||||||||||||||||||||||||||||||||||||||||||||
Application Software | $ | 165.3 | 26.3% | $ | 153.5 | 26.1% | $ | 337.6 | 26.9% | $ | 307.0 | 26.4% | |||||||||||||||||||||||||||||||||||
Network Software | 137.1 | 40.0% | 111.2 | 37.3% | 273.9 | 40.2% | 216.8 | 37.0% | |||||||||||||||||||||||||||||||||||||||
Technology Enabled Products | 111.4 | 32.7% | 102.3 | 33.6% | 211.1 | 32.3% | 207.9 | 34.7% | |||||||||||||||||||||||||||||||||||||||
Total | $ | 413.8 | 31.6% | $ | 367.0 | 30.8% | $ | 822.6 | 31.8% | $ | 731.7 | 31.2% | |||||||||||||||||||||||||||||||||||
*Segment operating profit is before unallocated corporate general and administrative expenses. These expenses were $50.9 and $50.8 for the three months ended June 30, 2022 and 2021, respectively, and $103.8 and $97.9 for the six months ended June 30, 2022 and 2021, respectively. |
Roper Technologies, Inc. and Subsidiaries | ||||||||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) | ||||||||||||||
(Amounts in millions) | ||||||||||||||
Six months ended June 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net earnings from continuing operations | $ | 461.4 | $ | 427.4 | ||||||||||
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities: | ||||||||||||||
Depreciation and amortization of property, plant and equipment | 18.7 | 23.5 | ||||||||||||
Amortization of intangible assets | 291.3 | 285.8 | ||||||||||||
Amortization of deferred financing costs | 6.3 | 6.8 | ||||||||||||
Non-cash stock compensation | 61.2 | 61.5 | ||||||||||||
Gain on sale of assets, net of tax | — | (21.6) | ||||||||||||
Income tax provision, excluding tax associated with gain on sale of assets | 156.7 | 108.1 | ||||||||||||
Changes in operating assets and liabilities, net of acquired businesses: | ||||||||||||||
Accounts receivable | 55.2 | 41.7 | ||||||||||||
Unbilled receivables | (24.7) | (14.1) | ||||||||||||
Inventories | (23.7) | 1.2 | ||||||||||||
Accounts payable | 30.9 | 24.3 | ||||||||||||
Other accrued liabilities | (64.7) | (16.4) | ||||||||||||
Deferred revenue | 38.6 | 39.9 | ||||||||||||
Cash tax paid for gain on disposal of businesses | (377.9) | — | ||||||||||||
Cash income taxes paid | (279.4) | (137.3) | ||||||||||||
Other, net | (18.9) | (25.3) | ||||||||||||
Cash provided by operating activities from continuing operations | 331.0 | 805.5 | ||||||||||||
Cash provided by operating activities from discontinued operations | 80.1 | 179.6 | ||||||||||||
Cash provided by operating activities | 411.1 | 985.1 | ||||||||||||
Cash flows from (used in) investing activities: | ||||||||||||||
Acquisitions of businesses, net of cash acquired | (258.9) | (15.5) | ||||||||||||
Capital expenditures | (13.7) | (12.8) | ||||||||||||
Capitalized software expenditures | (15.0) | (15.3) | ||||||||||||
Proceeds from sale of assets | — | 27.1 | ||||||||||||
Other, net | — | (1.6) | ||||||||||||
Cash used in investing activities from continuing operations | (287.6) | (18.1) | ||||||||||||
Proceeds from disposition of discontinued operations | 2,995.9 | — | ||||||||||||
Cash used in investing activities from discontinued operations | (3.3) | (4.1) | ||||||||||||
Cash provided by (used in) investing activities | 2,705.0 | (22.2) | ||||||||||||
Cash flows from (used in) financing activities: | ||||||||||||||
Borrowings (payments) under revolving line of credit, net | (470.0) | (870.0) | ||||||||||||
Cash dividends to stockholders | (130.7) | (117.8) | ||||||||||||
Proceeds from stock-based compensation, net | 40.9 | 45.2 | ||||||||||||
Treasury stock sales | 8.5 | 8.2 | ||||||||||||
Other | (0.2) | (0.1) | ||||||||||||
Cash flows used in financing activities from continuing operations | (551.5) | (934.5) | ||||||||||||
Cash flows used in financing activities from discontinued operations | (11.4) | (0.1) | ||||||||||||
Cash flows used in financing activities | (562.9) | (934.6) | ||||||||||||
(Continued) |
Roper Technologies, Inc. and Subsidiaries | ||||||||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) - (Continued) | ||||||||||||||
(Amounts in millions) | ||||||||||||||
Six months ended June 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Effect of foreign currency exchange rate changes on cash | (25.6) | 1.2 | ||||||||||||
Net increase in cash and cash equivalents | 2,527.6 | 29.5 | ||||||||||||
Cash and cash equivalents, beginning of period | 351.5 | 308.3 | ||||||||||||
Cash and cash equivalents, end of period | $ | 2,879.1 | $ | 337.8 |