Table 1: Adjusted Revenue and EBITDA Reconciliation ($M) (From Continuing Operations) | |||||||||||||||||
Q1 2021 | Q1 2022 | V % | |||||||||||||||
Adjusted Revenue Reconciliation | |||||||||||||||||
GAAP Revenue | $ | 1,376 | $ | 1,527 | 11 | % | |||||||||||
Purchase accounting adjustment to acquired deferred revenue | 1 | — | |||||||||||||||
Adjusted Revenue | $ | 1,377 | $ | 1,527 | 11 | % | |||||||||||
Components of Adjusted Revenue Growth | |||||||||||||||||
Organic | 11 | % | |||||||||||||||
Acquisitions/Divestitures | 1 | % | |||||||||||||||
Foreign Exchange | (1) | % | |||||||||||||||
Adjusted Revenue Growth | 11 | % | |||||||||||||||
Adjusted EBITDA Reconciliation | |||||||||||||||||
GAAP Net Earnings | $ | 270 | $ | 288 | |||||||||||||
Taxes | 71 | 79 | |||||||||||||||
Interest Expense | 61 | 53 | |||||||||||||||
Depreciation | 13 | 11 | |||||||||||||||
Amortization | 146 | 148 | |||||||||||||||
EBITDA | $ | 561 | $ | 578 | 3 | % | |||||||||||
Purchase accounting adjustment to acquired deferred revenue and commission expense | — | (1) | A | ||||||||||||||
Gain on sale related to minority investment in Sedaru | (28) | — | |||||||||||||||
Adjusted EBITDA | $ | 533 | $ | 577 | 8 | % | |||||||||||
% of Adjusted Revenue | 38.7 | % | 37.8 | % | (90 bps) |
Table 2: Adjusted DEPS Reconciliation B (From Continuing Operations) | |||||||||||||||||
Q1 2021 | Q1 2022 | V % | |||||||||||||||
GAAP DEPS | $ | 2.55 | $ | 2.70 | 6 | % | |||||||||||
Purchase accounting adjustment to acquired deferred revenue and commission expense | — | (0.01) | A | ||||||||||||||
Amortization of acquisition-related intangible assets C | 1.08 | 1.08 | |||||||||||||||
Gain on sale related to minority investment in Sedaru | (0.21) | — | |||||||||||||||
Adjusted DEPS | $ | 3.42 | $ | 3.77 | 10 | % |
Table 3: Free Cash Flow Reconciliation ($M) (From Continuing Operations) | |||||||||||||||||
Q1 2021 | Q1 2022 | V % | |||||||||||||||
Operating Cash Flow | $ | 526 | $ | 474 | (10) | % | |||||||||||
Capital Expenditures | (7) | (7) | |||||||||||||||
Capitalized Software Expenditures | (7) | (8) | |||||||||||||||
Free Cash Flow | $ | 512 | $ | 459 | (10) | % |
Table 4: Forecasted Adjusted DEPS Reconciliation B (From Continuing Operations) | |||||||||||||||||||||||
Q2 2022 | FY 2022 | ||||||||||||||||||||||
Low End | High End | Low End | High End | ||||||||||||||||||||
GAAP DEPS | $ | 2.74 | $ | 2.78 | $ | 11.24 | $ | 11.49 | |||||||||||||||
Purchase accounting adjustment to acquired commission expense A | (0.01) | (0.01) | (0.03) | (0.03) | |||||||||||||||||||
Amortization of acquisition-related intangible assets C | 1.07 | 1.07 | 4.29 | 4.29 | |||||||||||||||||||
Adjusted DEPS | $ | 3.80 | $ | 3.84 | $ | 15.50 | $ | 15.75 | |||||||||||||||
A. | 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). | ||||||||||||||||||||||||||||
Q1 2021A | Q1 2022A | Q2 2022E | FY 2022E | ||||||||||||||||||||||||||
Pretax | $ | — | $ | (1) | $ | (1) | $ | (5) | |||||||||||||||||||||
After-tax | $ | — | $ | (1) | $ | (1) | $ | (4) | |||||||||||||||||||||
Per Share | $ | — | $ | (0.01) | $ | (0.01) | $ | (0.03) | |||||||||||||||||||||
B. | All 2021 and 2022 adjustments taxed at 21%. | ||||||||||||||||||||||||||||
C. | Actual results and forecast of estimated amortization of acquisition-related intangible assets as shown below ($M, except per share data). | ||||||||||||||||||||||||||||
Q1 2021A | Q1 2022A | Q2 2022E | FY 2022E | ||||||||||||||||||||||||||
Pretax | $ | 145 | $ | 146 | $ | 145 | $ | 582 | |||||||||||||||||||||
After-tax | $ | 115 | $ | 115 | $ | 115 | $ | 459 | |||||||||||||||||||||
Per share | $ | 1.08 | $ | 1.08 | $ | 1.07 | $ | 4.29 |
Roper Technologies, Inc. and Subsidiaries | |||||||||||
Condensed Consolidated Balance Sheets (unaudited) | |||||||||||
(Amounts in millions) | |||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
ASSETS: | |||||||||||
Cash and cash equivalents | $ | 3,237.5 | $ | 351.5 | |||||||
Accounts receivable, net | 755.3 | 839.4 | |||||||||
Inventories, net | 202.7 | 176.1 | |||||||||
Income taxes receivable | 19.2 | 27.7 | |||||||||
Unbilled receivables | 110.0 | 95.3 | |||||||||
Other current assets | 160.9 | 142.5 | |||||||||
Current assets held for sale | — | 788.6 | |||||||||
Total current assets | 4,485.6 | 2,421.1 | |||||||||
Property, plant and equipment, net | 98.9 | 102.8 | |||||||||
Goodwill | 14,094.9 | 14,094.5 | |||||||||
Other intangible assets, net | 6,454.1 | 6,588.5 | |||||||||
Deferred taxes | 101.4 | 101.1 | |||||||||
Other assets | 400.9 | 405.9 | |||||||||
Total assets | $ | 25,635.8 | $ | 23,713.9 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||||||
Accounts payable | $ | 167.8 | $ | 150.8 | |||||||
Accrued compensation | 208.2 | 309.8 | |||||||||
Deferred revenue | 1,120.3 | 1,130.2 | |||||||||
Other accrued liabilities | 413.0 | 440.7 | |||||||||
Income taxes payable | 793.0 | 132.0 | |||||||||
Current portion of long-term debt, net | 799.5 | 799.2 | |||||||||
Current liabilities held for sale | — | 159.1 | |||||||||
Total current liabilities | 3,501.8 | 3,121.8 | |||||||||
Long-term debt, net of current portion | 6,654.8 | 7,122.6 | |||||||||
Deferred taxes | 1,476.1 | 1,479.5 | |||||||||
Other liabilities | 451.2 | 426.2 | |||||||||
Total liabilities | 12,083.9 | 12,150.1 | |||||||||
Common stock | 1.1 | 1.1 | |||||||||
Additional paid-in capital | 2,363.9 | 2,307.8 | |||||||||
Retained earnings | 11,410.4 | 9,455.6 | |||||||||
Accumulated other comprehensive loss | (206.0) | (183.1) | |||||||||
Treasury stock | (17.5) | (17.6) | |||||||||
Total stockholders' equity | 13,551.9 | 11,563.8 | |||||||||
Total liabilities and stockholders' equity | $ | 25,635.8 | $ | 23,713.9 |
Roper Technologies, Inc. and Subsidiaries | ||||||||||||||
Condensed Consolidated Statements of Earnings (unaudited) | ||||||||||||||
(Amounts in millions, except per share data) | ||||||||||||||
Three months ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net revenues | $ | 1,526.6 | $ | 1,376.1 | ||||||||||
Cost of sales | 496.5 | 440.1 | ||||||||||||
Gross profit | 1,030.1 | 936.0 | ||||||||||||
Selling, general and administrative expenses | 609.0 | 561.4 | ||||||||||||
Income from operations | 421.1 | 374.6 | ||||||||||||
Interest expense, net | 52.6 | 60.6 | ||||||||||||
Other income (expense), net | (1.9) | 27.1 | ||||||||||||
Earnings before income taxes | 366.6 | 341.1 | ||||||||||||
Income taxes | 79.0 | 71.2 | ||||||||||||
Net earnings from continuing operations | 287.6 | 269.9 | ||||||||||||
Earnings from discontinued operations, net of tax | 15.6 | 19.1 | ||||||||||||
Gain on disposition of discontinued operations, net of tax | 1,717.3 | — | ||||||||||||
Net earnings from discontinued operations | 1,732.9 | 19.1 | ||||||||||||
Net earnings | $ | 2,020.5 | $ | 289.0 | ||||||||||
Net earnings per share from continuing operations: | ||||||||||||||
Basic | $ | 2.72 | $ | 2.57 | ||||||||||
Diluted | $ | 2.70 | $ | 2.55 | ||||||||||
Net earnings per share from discontinued operations: | ||||||||||||||
Basic | $ | 16.41 | $ | 0.18 | ||||||||||
Diluted | $ | 16.24 | $ | 0.18 | ||||||||||
Net earnings per share: | ||||||||||||||
Basic | $ | 19.13 | $ | 2.75 | ||||||||||
Diluted | $ | 18.94 | $ | 2.73 | ||||||||||
Weighted average common shares outstanding: | ||||||||||||||
Basic | 105.6 | 105.0 | ||||||||||||
Diluted | 106.7 | 106.0 |
Roper Technologies, Inc. and Subsidiaries | ||||||||||||||||||||||||||
Selected Segment Financial Data (unaudited) | ||||||||||||||||||||||||||
(Amounts in millions; percentages of net revenues) | ||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||
Amount | % | Amount | % | |||||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||||||
Application Software | $ | 631.5 | $ | 576.6 | ||||||||||||||||||||||
Network Software & Systems | 368.7 | 314.2 | ||||||||||||||||||||||||
Measurement & Analytical Solutions | 392.4 | 369.6 | ||||||||||||||||||||||||
Process Technologies | 134.0 | 115.7 | ||||||||||||||||||||||||
Total | $ | 1,526.6 | $ | 1,376.1 | ||||||||||||||||||||||
Gross profit: | ||||||||||||||||||||||||||
Application Software | $ | 437.8 | 69.3% | $ | 398.7 | 69.1% | ||||||||||||||||||||
Network Software & Systems | 302.4 | 82.0% | 256.4 | 81.6% | ||||||||||||||||||||||
Measurement & Analytical Solutions | 217.6 | 55.5% | 218.2 | 59.0% | ||||||||||||||||||||||
Process Technologies | 72.3 | 54.0% | 62.7 | 54.2% | ||||||||||||||||||||||
Total | $ | 1,030.1 | 67.5% | $ | 936.0 | 68.0% | ||||||||||||||||||||
Operating profit*: | ||||||||||||||||||||||||||
Application Software | $ | 173.8 | 27.5% | $ | 153.7 | 26.7% | ||||||||||||||||||||
Network Software & Systems | 145.4 | 39.4% | 114.1 | 36.3% | ||||||||||||||||||||||
Measurement & Analytical Solutions | 115.9 | 29.5% | 121.5 | 32.9% | ||||||||||||||||||||||
Process Technologies | 41.8 | 31.2% | 35.1 | 30.3% | ||||||||||||||||||||||
Total | $ | 476.9 | 31.2% | $ | 424.4 | 30.8% | ||||||||||||||||||||
*Segment operating profit is before unallocated corporate general and administrative expenses. These expenses were $55.8 and $49.8 for the three months ended March 31, 2022 and 2021, respectively. |
Roper Technologies, Inc. and Subsidiaries | ||||||||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) | ||||||||||||||
(Amounts in millions) | ||||||||||||||
Three months ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net earnings from continuing operations | $ | 287.6 | $ | 269.9 | ||||||||||
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities: | ||||||||||||||
Depreciation and amortization of property, plant and equipment | 11.0 | 13.1 | ||||||||||||
Amortization of intangible assets | 148.1 | 146.3 | ||||||||||||
Amortization of deferred financing costs | 3.1 | 3.4 | ||||||||||||
Non-cash stock compensation | 35.9 | 31.6 | ||||||||||||
Gain on sale of assets, net of tax | — | (21.6) | ||||||||||||
Income tax provision, excluding tax associated with gain on sale of assets | 79.0 | 65.7 | ||||||||||||
Changes in operating assets and liabilities, net of acquired businesses: | ||||||||||||||
Accounts receivable | 82.0 | 54.3 | ||||||||||||
Unbilled receivables | (15.4) | (17.8) | ||||||||||||
Inventories | (27.7) | (2.1) | ||||||||||||
Accounts payable | 17.9 | 13.3 | ||||||||||||
Other accrued liabilities | (125.1) | (59.0) | ||||||||||||
Deferred revenue | 29.4 | 60.9 | ||||||||||||
Cash income taxes paid | (27.4) | (17.2) | ||||||||||||
Other, net | (24.6) | (14.9) | ||||||||||||
Cash provided by operating activities from continuing operations | 473.8 | 525.9 | ||||||||||||
Cash provided by operating activities from discontinued operations | 1.5 | 33.7 | ||||||||||||
Cash provided by operating activities | 475.3 | 559.6 | ||||||||||||
Cash flows from (used in) investing activities: | ||||||||||||||
Acquisitions of businesses, net of cash acquired | (53.2) | — | ||||||||||||
Capital expenditures | (7.1) | (7.1) | ||||||||||||
Capitalized software expenditures | (7.5) | (7.2) | ||||||||||||
Proceeds from sale of assets | — | 27.1 | ||||||||||||
Other, net | — | (0.1) | ||||||||||||
Cash (used in) provided by investing activities from continuing operations | (67.8) | 12.7 | ||||||||||||
Proceeds from disposition of discontinued operations | 3,006.2 | — | ||||||||||||
Cash used in investing activities from discontinued operations | (0.2) | (2.0) | ||||||||||||
Cash provided by investing activities | 2,938.2 | 10.7 | ||||||||||||
Cash flows from (used in) financing activities: | ||||||||||||||
Borrowings (payments) under revolving line of credit, net | (470.0) | (495.0) | ||||||||||||
Cash dividends to stockholders | (65.3) | (58.8) | ||||||||||||
Proceeds from stock-based compensation, net | 21.0 | 4.4 | ||||||||||||
Treasury stock sales | 5.5 | 4.7 | ||||||||||||
Other | — | (0.1) | ||||||||||||
Cash flows used in financing activities from continuing operations | (508.8) | (544.8) | ||||||||||||
Cash flows used in financing activities from discontinued operations | (11.4) | (0.4) | ||||||||||||
Cash flows used in financing activities | (520.2) | (545.2) | ||||||||||||
(Continued) |
Roper Technologies, Inc. and Subsidiaries | ||||||||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) - (Continued) | ||||||||||||||
(Amounts in millions) | ||||||||||||||
Three months ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Effect of foreign currency exchange rate changes on cash | (7.3) | (2.4) | ||||||||||||
Net increase in cash and cash equivalents | 2,886.0 | 22.7 | ||||||||||||
Cash and cash equivalents, beginning of period | 351.5 | 308.3 | ||||||||||||
Cash and cash equivalents, end of period | $ | 3,237.5 | $ | 331.0 |