Contact Information: Investor Relations 941-556-2601 investor-relations@ropertech.com | Roper Technologies, Inc. |
Table 1: Adjusted Revenue, Gross Profit and EBITDA Reconciliation ($M) | |||||||||||||||||
Q2 2020 | Q2 2021 | V % | |||||||||||||||
Adjusted Revenue Reconciliation | |||||||||||||||||
GAAP Revenue | $ | 1,305 | $ | 1,588 | 22 | % | |||||||||||
Purchase accounting adjustment to acquired deferred revenue | 1 | — | |||||||||||||||
Adjusted Revenue | $ | 1,306 | $ | 1,588 | 22 | % | |||||||||||
Components of Adjusted Revenue Growth | |||||||||||||||||
Organic | 7 | % | |||||||||||||||
Acquisitions/Divestitures | 12 | % | |||||||||||||||
Foreign Exchange | 2 | % | |||||||||||||||
Rounding | 1 | % | |||||||||||||||
Total Adjusted Revenue Growth | 22 | % | |||||||||||||||
Adjusted Gross Profit Reconciliation | |||||||||||||||||
GAAP Gross Profit | $ | 844 | $ | 1,034 | |||||||||||||
Purchase accounting adjustment to acquired deferred revenue | 1 | — | |||||||||||||||
Adjusted Gross Profit | $ | 845 | $ | 1,034 | 22 | % | |||||||||||
GAAP Gross Margin | 64.7 | % | 65.1 | % | +40 bps | ||||||||||||
Adjusted Gross Margin | 64.7 | % | 65.1 | % | +40 bps | ||||||||||||
Adjusted EBITDA Reconciliation | |||||||||||||||||
GAAP Net Earnings | $ | 219 | $ | 286 | |||||||||||||
Taxes | 65 | 73 | |||||||||||||||
Interest Expense | 47 | 60 | |||||||||||||||
Depreciation | 12 | 14 | |||||||||||||||
Amortization | 101 | 147 | |||||||||||||||
EBITDA | $ | 445 | $ | 580 | 30 | % | |||||||||||
Purchase accounting adjustment to acquired deferred revenue and commission expense | 1 | (1) | A | ||||||||||||||
Restructuring charge associated with certain Process Technologies businesses | 14 | — | |||||||||||||||
Transaction-related expenses for completed acquisitions | 1 | — | |||||||||||||||
Adjusted EBITDA | $ | 461 | $ | 579 | 26 | % | |||||||||||
% of Adjusted Revenue | 35.3 | % | 36.4 | % | +110 bps |
Table 2: Adjusted DEPS Reconciliation B | |||||||||||||||||
Q2 2020 | Q2 2021 | V % | |||||||||||||||
GAAP DEPS | $ | 2.08 | $ | 2.69 | 29 | % | |||||||||||
Purchase accounting adjustment to acquired deferred revenue and commission expense | 0.01 | (0.01) | A | ||||||||||||||
Restructuring charge associated with certain Process Technologies businesses | 0.10 | — | |||||||||||||||
Transaction-related expenses for completed acquisitions | 0.01 | — | |||||||||||||||
Amortization of acquisition-related intangible assets C | 0.75 | 1.08 | |||||||||||||||
Rounding | (0.01) | — | |||||||||||||||
Adjusted DEPS | $ | 2.94 | $ | 3.76 | 28 | % |
Table 3: Adjusted Cash Flow Reconciliation ($M) | |||||||||||||||||
Q2 2020 | Q2 2021 | V % | |||||||||||||||
Operating Cash Flow | $ | 449 | $ | 426 | (5) | % | |||||||||||
Deferred tax payments from Q2 to Q3 2020 | (124) | — | |||||||||||||||
Adjusted Operating Cash Flow | 325 | 426 | 31 | % | |||||||||||||
Capital Expenditures | (8) | (8) | |||||||||||||||
Capitalized Software Expenditures | (3) | (8) | |||||||||||||||
Adjusted Free Cash Flow | $ | 315 | $ | 409 | 30 | % |
Table 4: Forecasted Adjusted DEPS Reconciliation B | |||||||||||||||||||||||
Q3 2021 | FY 2021 | ||||||||||||||||||||||
Low End | High End | Low End | High End | ||||||||||||||||||||
GAAP DEPS | $ | 2.74 | $ | 2.78 | $ | 10.95 | $ | 11.15 | |||||||||||||||
Purchase accounting adjustment to acquired deferred revenue and commission expense A | (0.01) | (0.01) | (0.04) | (0.04) | |||||||||||||||||||
Amortization of acquisition-related intangible assets C | 1.07 | 1.07 | 4.30 | 4.30 | |||||||||||||||||||
Gain on sale related to minority investment in Sedaru | — | — | (0.21) | (0.21) | |||||||||||||||||||
Adjusted DEPS | $ | 3.80 | $ | 3.84 | $ | 15.00 | $ | 15.20 |
A. | 2021 actual results and forecast of estimated acquisition-related fair value adjustments to deferred revenue and commission expense related to the acquisition of Vertafore as shown below ($M except per share data). | ||||||||||||||||||||||||||||
Q2 2020A | Q2 2021A | Q3 2021E | FY 2021E | ||||||||||||||||||||||||||
Pretax | $ | 1 | $ | (1) | $ | (1) | $ | (5) | |||||||||||||||||||||
After-tax | $ | 1 | $ | (1) | $ | (1) | $ | (4) | |||||||||||||||||||||
Per Share | $ | 0.01 | $ | (0.01) | $ | (0.01) | $ | (0.04) | |||||||||||||||||||||
B. | All 2020 and 2021 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). | ||||||||||||||||||||||||||||
Q2 2020A | Q2 2021A | Q3 2021E | FY 2021E | ||||||||||||||||||||||||||
Pretax | $ | 100 | $ | 145 | $ | 145 | $ | 580 | |||||||||||||||||||||
After-tax | $ | 79 | $ | 115 | $ | 114 | $ | 458 | |||||||||||||||||||||
Per share | $ | 0.75 | $ | 1.08 | $ | 1.07 | $ | 4.30 |
Roper Technologies, Inc. and Subsidiaries | |||||||||||
Condensed Consolidated Balance Sheets (unaudited) | |||||||||||
(Amounts in millions) | |||||||||||
June 30, 2021 | December 31, 2020 | ||||||||||
ASSETS: | |||||||||||
Cash and cash equivalents | $ | 337.8 | $ | 308.3 | |||||||
Accounts receivable, net | 804.2 | 863.0 | |||||||||
Inventories, net | 212.7 | 198.4 | |||||||||
Income taxes receivable | 28.0 | 21.9 | |||||||||
Unbilled receivables | 275.3 | 241.7 | |||||||||
Other current assets | 138.7 | 119.0 | |||||||||
Total current assets | 1,796.7 | 1,752.3 | |||||||||
Property, plant and equipment, net | 125.3 | 140.6 | |||||||||
Goodwill | 14,430.0 | 14,395.2 | |||||||||
Other intangible assets, net | 6,936.8 | 7,206.9 | |||||||||
Deferred taxes | 104.3 | 104.0 | |||||||||
Other assets | 440.6 | 425.8 | |||||||||
Total assets | $ | 23,833.7 | $ | 24,024.8 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||||||
Accounts payable | $ | 209.6 | $ | 177.8 | |||||||
Accrued compensation | 283.4 | 286.1 | |||||||||
Deferred revenue | 1,010.6 | 994.6 | |||||||||
Other accrued liabilities | 444.6 | 457.0 | |||||||||
Income taxes payable | 52.5 | 26.9 | |||||||||
Current portion of long-term debt, net | 502.4 | 502.0 | |||||||||
Total current liabilities | 2,503.1 | 2,444.4 | |||||||||
Long-term debt, net of current portion | 8,199.5 | 9,064.5 | |||||||||
Deferred taxes | 1,550.6 | 1,562.5 | |||||||||
Other liabilities | 491.3 | 473.6 | |||||||||
Total liabilities | 12,744.5 | 13,545.0 | |||||||||
Common stock | 1.1 | 1.1 | |||||||||
Additional paid-in capital | 2,217.9 | 2,097.5 | |||||||||
Retained earnings | 9,003.1 | 8,546.2 | |||||||||
Accumulated other comprehensive loss | (115.1) | (147.0) | |||||||||
Treasury stock | (17.8) | (18.0) | |||||||||
Total stockholders' equity | 11,089.2 | 10,479.8 | |||||||||
Total liabilities and stockholders' equity | $ | 23,833.7 | $ | 24,024.8 |
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, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net revenues | $ | 1,587.6 | $ | 1,305.0 | $ | 3,116.2 | $ | 2,655.7 | |||||||||||||||
Cost of sales | 553.5 | 461.3 | 1,088.3 | 955.2 | |||||||||||||||||||
Gross profit | 1,034.1 | 843.7 | 2,027.9 | 1,700.5 | |||||||||||||||||||
Selling, general and administrative expenses | 616.1 | 510.1 | 1,209.4 | 1,017.7 | |||||||||||||||||||
Income from operations | 418.0 | 333.6 | 818.5 | 682.8 | |||||||||||||||||||
Interest expense, net | 59.5 | 47.5 | 120.1 | 92.9 | |||||||||||||||||||
Other income (expense), net | 0.9 | (2.0) | 27.9 | (1.2) | |||||||||||||||||||
Earnings before income taxes | 359.4 | 284.1 | 726.3 | 588.7 | |||||||||||||||||||
Income taxes | 73.1 | 64.9 | 151.0 | 129.2 | |||||||||||||||||||
Net earnings | $ | 286.3 | $ | 219.2 | $ | 575.3 | $ | 459.5 | |||||||||||||||
Net earnings per share: | |||||||||||||||||||||||
Basic | $ | 2.72 | $ | 2.10 | $ | 5.47 | $ | 4.40 | |||||||||||||||
Diluted | $ | 2.69 | $ | 2.08 | $ | 5.42 | $ | 4.36 | |||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | 105.3 | 104.5 | 105.1 | 104.4 | |||||||||||||||||||
Diluted | 106.4 | 105.5 | 106.2 | 105.4 |
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, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||||||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Application Software | $ | 591.6 | $ | 398.4 | $ | 1,168.2 | $ | 803.5 | |||||||||||||||||||||||||||||||||||||||
Network Software & Systems | 458.7 | 422.0 | 898.9 | 860.2 | |||||||||||||||||||||||||||||||||||||||||||
Measurement & Analytical Solutions | 397.0 | 363.9 | 778.0 | 729.1 | |||||||||||||||||||||||||||||||||||||||||||
Process Technologies | 140.3 | 120.7 | 271.1 | 262.9 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,587.6 | $ | 1,305.0 | $ | 3,116.2 | $ | 2,655.7 | |||||||||||||||||||||||||||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||||||||||||||||||||
Application Software | $ | 409.3 | 69.2% | $ | 273.8 | 68.7% | $ | 808.0 | 69.2% | $ | 544.2 | 67.7% | |||||||||||||||||||||||||||||||||||
Network Software & Systems | 318.8 | 69.5% | 284.8 | 67.5% | 618.2 | 68.8% | 578.0 | 67.2% | |||||||||||||||||||||||||||||||||||||||
Measurement & Analytical Solutions | 230.4 | 58.0% | 221.5 | 60.9% | 455.1 | 58.5% | 436.1 | 59.8% | |||||||||||||||||||||||||||||||||||||||
Process Technologies | 75.6 | 53.9% | 63.6 | 52.7% | 146.6 | 54.1% | 142.2 | 54.1% | |||||||||||||||||||||||||||||||||||||||
Total | $ | 1,034.1 | 65.1% | $ | 843.7 | 64.7% | $ | 2,027.9 | 65.1% | $ | 1,700.5 | 64.0% | |||||||||||||||||||||||||||||||||||
Operating profit*: | |||||||||||||||||||||||||||||||||||||||||||||||
Application Software | $ | 154.2 | 26.1% | $ | 113.4 | 28.5% | $ | 307.9 | 26.4% | $ | 211.0 | 26.3% | |||||||||||||||||||||||||||||||||||
Network Software & Systems | 150.5 | 32.8% | 130.6 | 30.9% | 286.0 | 31.8% | 269.3 | 31.3% | |||||||||||||||||||||||||||||||||||||||
Measurement & Analytical Solutions | 124.0 | 31.2% | 123.0 | 33.8% | 248.1 | 31.9% | 237.0 | 32.5% | |||||||||||||||||||||||||||||||||||||||
Process Technologies | 43.9 | 31.3% | 16.9 | 14.0% | 82.2 | 30.3% | 60.2 | 22.9% | |||||||||||||||||||||||||||||||||||||||
Total | $ | 472.6 | 29.8% | $ | 383.9 | 29.4% | $ | 924.2 | 29.7% | $ | 777.5 | 29.3% | |||||||||||||||||||||||||||||||||||
*Segment operating profit is before unallocated corporate general and administrative expenses. These expenses were $54.6 and $50.3 for the three months ended June 30, 2021 and 2020, respectively, and $105.7 and $94.7 for the six months ended June 30, 2021 and 2020, respectively. |
Roper Technologies, Inc. and Subsidiaries | ||||||||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) | ||||||||||||||
(Amounts in millions) | ||||||||||||||
Six months ended June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net earnings | $ | 575.3 | $ | 459.5 | ||||||||||
Adjustments to reconcile net earnings to cash flows from operating activities: | ||||||||||||||
Depreciation and amortization of property, plant and equipment | 29.2 | 25.1 | ||||||||||||
Amortization of intangible assets | 293.2 | 203.0 | ||||||||||||
Amortization of deferred financing costs | 6.8 | 4.3 | ||||||||||||
Non-cash stock compensation | 69.3 | 58.2 | ||||||||||||
Gain on sale of assets, net of tax | (21.6) | — | ||||||||||||
Income tax provision, excluding tax associated with gain on sale of assets | 145.5 | 129.2 | ||||||||||||
Changes in operating assets and liabilities, net of acquired businesses: | ||||||||||||||
Accounts receivable | 60.7 | 49.6 | ||||||||||||
Unbilled receivables | (29.4) | (42.3) | ||||||||||||
Inventories | (14.7) | (19.1) | ||||||||||||
Accounts payable and accrued liabilities | 17.5 | 18.8 | ||||||||||||
Deferred revenue | 40.2 | (4.3) | ||||||||||||
Cash tax paid for gain on disposal of businesses | — | (10.0) | ||||||||||||
Cash income taxes paid | (151.3) | (52.5) | ||||||||||||
Other, net | (35.6) | (6.5) | ||||||||||||
Cash provided by operating activities | 985.1 | 813.0 | ||||||||||||
Cash flows from (used in) investing activities: | ||||||||||||||
Acquisitions of businesses, net of cash acquired | (15.5) | (153.0) | ||||||||||||
Capital expenditures | (17.2) | (15.5) | ||||||||||||
Capitalized software expenditures | (15.3) | (5.2) | ||||||||||||
Proceeds used in disposal of businesses | (0.1) | (3.8) | ||||||||||||
Proceeds from sale of assets | 27.1 | — | ||||||||||||
Other, net | (1.2) | — | ||||||||||||
Cash used in investing activities | (22.2) | (177.5) | ||||||||||||
Cash flows from (used in) financing activities: | ||||||||||||||
Proceeds from senior notes | — | 600.0 | ||||||||||||
Borrowings (payments) under revolving line of credit, net | (870.0) | — | ||||||||||||
Debt issuance costs | — | (12.0) | ||||||||||||
Cash dividends to stockholders | (117.8) | (106.6) | ||||||||||||
Proceeds from stock-based compensation, net | 45.2 | 47.7 | ||||||||||||
Treasury stock sales | 8.2 | 4.5 | ||||||||||||
Other | (0.2) | (0.7) | ||||||||||||
Cash flows provided by (used in) financing activities | (934.6) | 532.9 | ||||||||||||
Effect of foreign currency exchange rate changes on cash | 1.2 | (7.3) | ||||||||||||
Net increase in cash and cash equivalents | 29.5 | 1,161.1 | ||||||||||||
Cash and cash equivalents, beginning of period | 308.3 | 709.7 | ||||||||||||
Cash and cash equivalents, end of period | $ | 337.8 | $ | 1,870.8 |