Contact Information: Investor Relations 941-556-2601 investor-relations@ropertech.com | Roper Technologies, Inc. |
Table 1: Adjusted Revenue, Gross Profit and EBITDA Reconciliation ($M) | |||||||||||||||||
Q1 2020 | Q1 2021 | V % | |||||||||||||||
Adjusted Revenue Reconciliation | |||||||||||||||||
GAAP Revenue | $ | 1,351 | $ | 1,529 | 13 | % | |||||||||||
Purchase accounting adjustment to acquired deferred revenue | 2 | 1 | A | ||||||||||||||
Adjusted Revenue | $ | 1,353 | $ | 1,530 | 13 | % | |||||||||||
Components of Adjusted Revenue Growth | |||||||||||||||||
Organic | (1) | % | |||||||||||||||
Acquisitions/Divestitures | 12 | % | |||||||||||||||
Foreign Exchange | 1 | % | |||||||||||||||
Rounding | 1 | % | |||||||||||||||
Total Adjusted Revenue Growth | 13 | % | |||||||||||||||
Adjusted Gross Profit Reconciliation | |||||||||||||||||
GAAP Gross Profit | $ | 857 | $ | 994 | |||||||||||||
Purchase accounting adjustment to acquired deferred revenue | 2 | 1 | A | ||||||||||||||
Adjusted Gross Profit | $ | 859 | $ | 995 | 16 | % | |||||||||||
GAAP Gross Margin | 63.4 | % | 65.0 | % | +160 bps | ||||||||||||
Adjusted Gross Margin | 63.5 | % | 65.0 | % | +150 bps | ||||||||||||
Adjusted EBITDA Reconciliation | |||||||||||||||||
GAAP Net Earnings | $ | 240 | $ | 289 | |||||||||||||
Taxes | 64 | 78 | |||||||||||||||
Interest Expense | 45 | 61 | |||||||||||||||
Depreciation | 13 | 15 | |||||||||||||||
Amortization | 102 | 147 | |||||||||||||||
EBITDA | $ | 465 | $ | 589 | 27 | % | |||||||||||
Purchase accounting adjustment to acquired deferred revenue and commission expense | 2 | — | A | ||||||||||||||
Gain on sale related to minority investment in Sedaru | — | (28) | |||||||||||||||
Adjusted EBITDA | $ | 467 | $ | 561 | 20 | % | |||||||||||
% of Adjusted Revenue | 34.5 | % | 36.7 | % | +220 bps |
Table 2: Adjusted DEPS Reconciliation B | |||||||||||||||||
Q1 2020 | Q1 2021 | V % | |||||||||||||||
GAAP DEPS | $ | 2.28 | $ | 2.73 | 20 | % | |||||||||||
Purchase accounting adjustment to acquired deferred revenue and commission expense | 0.02 | — | A | ||||||||||||||
Amortization of acquisition-related intangible assets C | 0.75 | 1.08 | |||||||||||||||
Gain on sale related to minority investment in Sedaru | — | (0.21) | |||||||||||||||
Adjusted DEPS | $ | 3.05 | $ | 3.60 | 18 | % |
Table 3: Free Cash Flow Reconciliation ($M) | |||||||||||||||||
Q1 2020 | Q1 2021 | V % | |||||||||||||||
Operating Cash Flow | $ | 364 | $ | 560 | 54 | % | |||||||||||
Capital Expenditures | (8) | (9) | |||||||||||||||
Capitalized Software Expenditures | (3) | (7) | |||||||||||||||
Free Cash Flow | $ | 353 | $ | 543 | 54 | % |
Table 4: Forecasted Adjusted DEPS Reconciliation B | |||||||||||||||||||||||
Q2 2021 | FY 2021 | ||||||||||||||||||||||
Low End | High End | Low End | High End | ||||||||||||||||||||
GAAP DEPS | $ | 2.54 | $ | 2.58 | $ | 10.70 | $ | 10.95 | |||||||||||||||
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 | 1.08 | 1.08 | 4.30 | 4.30 | |||||||||||||||||||
Gain on sale related to minority investment in Sedaru | — | — | (0.21) | (0.21) | |||||||||||||||||||
Adjusted DEPS | $ | 3.61 | $ | 3.65 | $ | 14.75 | $ | 15.00 |
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). | ||||||||||||||||||||||||||||
Q1 2020A | Q1 2021A | Q2 2021E | FY 2021E | ||||||||||||||||||||||||||
Pretax | $ | 2 | $ | — | $ | (1) | $ | (5) | |||||||||||||||||||||
After-tax | $ | 2 | $ | — | $ | (1) | $ | (4) | |||||||||||||||||||||
Per Share | $ | 0.02 | $ | — | $ | (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). | ||||||||||||||||||||||||||||
Q1 2020A | Q1 2021A | Q2 2021E | FY 2021E | ||||||||||||||||||||||||||
Pretax | $ | 101 | $ | 145 | $ | 145 | $ | 578 | |||||||||||||||||||||
After-tax | $ | 79 | $ | 115 | $ | 114 | $ | 457 | |||||||||||||||||||||
Per share | $ | 0.75 | $ | 1.08 | $ | 1.08 | $ | 4.30 |
Roper Technologies, Inc. and Subsidiaries | |||||||||||
Condensed Consolidated Balance Sheets (unaudited) | |||||||||||
(Amounts in millions) | |||||||||||
March 31, 2021 | December 31, 2020 | ||||||||||
ASSETS: | |||||||||||
Cash and cash equivalents | $ | 331.0 | $ | 308.3 | |||||||
Accounts receivable, net | 792.0 | 863.0 | |||||||||
Inventories, net | 206.0 | 198.4 | |||||||||
Income taxes receivable | 13.2 | 21.9 | |||||||||
Unbilled receivables | 268.0 | 241.7 | |||||||||
Other current assets | 129.2 | 119.0 | |||||||||
Total current assets | 1,739.4 | 1,752.3 | |||||||||
Property, plant and equipment, net | 134.6 | 140.6 | |||||||||
Goodwill | 14,405.3 | 14,395.2 | |||||||||
Other intangible assets, net | 7,066.8 | 7,206.9 | |||||||||
Deferred taxes | 102.3 | 104.0 | |||||||||
Other assets | 422.7 | 425.8 | |||||||||
Total assets | $ | 23,871.1 | $ | 24,024.8 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||||||
Accounts payable | $ | 190.9 | $ | 177.8 | |||||||
Accrued compensation | 234.0 | 286.1 | |||||||||
Deferred revenue | 1,023.4 | 994.6 | |||||||||
Other accrued liabilities | 448.5 | 457.0 | |||||||||
Income taxes payable | 64.0 | 26.9 | |||||||||
Current portion of long-term debt, net | 502.1 | 502.0 | |||||||||
Total current liabilities | 2,462.9 | 2,444.4 | |||||||||
Long-term debt, net of current portion | 8,571.8 | 9,064.5 | |||||||||
Deferred taxes | 1,571.6 | 1,562.5 | |||||||||
Other liabilities | 499.1 | 473.6 | |||||||||
Total liabilities | 13,105.4 | 13,545.0 | |||||||||
Common stock | 1.1 | 1.1 | |||||||||
Additional paid-in capital | 2,138.9 | 2,097.5 | |||||||||
Retained earnings | 8,776.0 | 8,546.2 | |||||||||
Accumulated other comprehensive loss | (132.4) | (147.0) | |||||||||
Treasury stock | (17.9) | (18.0) | |||||||||
Total stockholders' equity | 10,765.7 | 10,479.8 | |||||||||
Total liabilities and stockholders' equity | $ | 23,871.1 | $ | 24,024.8 |
Roper Technologies, Inc. and Subsidiaries | |||||||||||
Condensed Consolidated Statements of Earnings (unaudited) | |||||||||||
(Amounts in millions, except per share data) | |||||||||||
Three months ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net revenues | $ | 1,528.6 | $ | 1,350.7 | |||||||
Cost of sales | 534.8 | 493.9 | |||||||||
Gross profit | 993.8 | 856.8 | |||||||||
Selling, general and administrative expenses | 593.3 | 507.6 | |||||||||
Income from operations | 400.5 | 349.2 | |||||||||
Interest expense, net | 60.6 | 45.4 | |||||||||
Other income (expense), net | 27.0 | 0.8 | |||||||||
Earnings before income taxes | 366.9 | 304.6 | |||||||||
Income taxes | 77.9 | 64.3 | |||||||||
Net earnings | $ | 289.0 | $ | 240.3 | |||||||
Net earnings per share: | |||||||||||
Basic | $ | 2.75 | $ | 2.30 | |||||||
Diluted | $ | 2.73 | $ | 2.28 | |||||||
Weighted average common shares outstanding: | |||||||||||
Basic | 105.0 | 104.3 | |||||||||
Diluted | 106.0 | 105.3 |
Roper Technologies, Inc. and Subsidiaries | |||||||||||||||||||||||
Selected Segment Financial Data (unaudited) | |||||||||||||||||||||||
(Amounts in millions; percentages of net revenues) | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Amount | % | Amount | % | ||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||
Application Software | $ | 576.6 | $ | 405.1 | |||||||||||||||||||
Network Software & Systems | 440.2 | 438.2 | |||||||||||||||||||||
Measurement & Analytical Solutions | 381.0 | 365.2 | |||||||||||||||||||||
Process Technologies | 130.8 | 142.2 | |||||||||||||||||||||
Total | $ | 1,528.6 | $ | 1,350.7 | |||||||||||||||||||
Gross profit: | |||||||||||||||||||||||
Application Software | $ | 398.7 | 69.1 | % | $ | 270.4 | 66.7 | % | |||||||||||||||
Network Software & Systems | 299.4 | 68.0 | % | 293.2 | 66.9 | % | |||||||||||||||||
Measurement & Analytical Solutions | 224.7 | 59.0 | % | 214.6 | 58.8 | % | |||||||||||||||||
Process Technologies | 71.0 | 54.3 | % | 78.6 | 55.3 | % | |||||||||||||||||
Total | $ | 993.8 | 65.0 | % | $ | 856.8 | 63.4 | % | |||||||||||||||
Operating profit*: | |||||||||||||||||||||||
Application Software | $ | 153.7 | 26.7 | % | $ | 97.6 | 24.1 | % | |||||||||||||||
Network Software & Systems | 135.5 | 30.8 | % | 138.7 | 31.7 | % | |||||||||||||||||
Measurement & Analytical Solutions | 124.1 | 32.6 | % | 114.0 | 31.2 | % | |||||||||||||||||
Process Technologies | 38.3 | 29.3 | % | 43.3 | 30.5 | % | |||||||||||||||||
Total | $ | 451.6 | 29.5 | % | $ | 393.6 | 29.1 | % | |||||||||||||||
*Segment operating profit is before unallocated corporate general and administrative expenses. These expenses were $51.1 and $44.4 for the three months ended March 31, 2021 and 2020, respectively. |
Roper Technologies, Inc. and Subsidiaries | |||||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) | |||||||||||
(Amounts in millions) | |||||||||||
Three months ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings | $ | 289.0 | $ | 240.3 | |||||||
Adjustments to reconcile net earnings to cash flows from operating activities: | |||||||||||
Depreciation and amortization of property, plant and equipment | 14.7 | 12.8 | |||||||||
Amortization of intangible assets | 146.6 | 101.8 | |||||||||
Amortization of deferred financing costs | 3.4 | 2.1 | |||||||||
Non-cash stock compensation | 32.9 | 27.7 | |||||||||
Gain on sale of assets, net of tax | (21.6) | — | |||||||||
Income tax provision, excluding tax associated with gain on sale of assets | 72.4 | 64.3 | |||||||||
Changes in operating assets and liabilities, net of acquired businesses: | |||||||||||
Accounts receivable | 70.3 | 69.1 | |||||||||
Unbilled receivables | (22.2) | (43.1) | |||||||||
Inventories | (8.2) | (10.3) | |||||||||
Accounts payable and accrued liabilities | (46.4) | (70.2) | |||||||||
Deferred revenue | 60.5 | 3.6 | |||||||||
Cash income taxes paid | (17.8) | (24.1) | |||||||||
Other, net | (14.0) | (10.1) | |||||||||
Cash provided by operating activities | 559.6 | 363.9 | |||||||||
Cash flows from (used in) investing activities: | |||||||||||
Acquisitions of businesses, net of cash acquired | — | (2.8) | |||||||||
Capital expenditures | (9.1) | (7.9) | |||||||||
Capitalized software expenditures | (7.2) | (2.6) | |||||||||
Proceeds from (used in) disposal of businesses | (0.1) | (3.7) | |||||||||
Proceeds from sale of assets | 27.1 | — | |||||||||
Cash from (used in) investing activities | 10.7 | (17.0) | |||||||||
Cash flows from (used in) financing activities: | |||||||||||
Borrowings (payments) under revolving line of credit, net | (495.0) | — | |||||||||
Cash dividends to stockholders | (58.8) | (53.1) | |||||||||
Proceeds from stock-based compensation, net | 4.4 | 12.1 | |||||||||
Treasury stock sales | 4.7 | 2.8 | |||||||||
Other | (0.5) | (0.5) | |||||||||
Cash flows used in financing activities | (545.2) | (38.7) | |||||||||
Effect of foreign currency exchange rate changes on cash | (2.4) | (18.1) | |||||||||
Net increase in cash and cash equivalents | 22.7 | 290.1 | |||||||||
Cash and cash equivalents, beginning of period | 308.3 | 709.7 | |||||||||
Cash and cash equivalents, end of period | $ | 331.0 | $ | 999.8 |