Table 1: Revenue and adjusted EBITDA reconciliation ($M) (from continuing operations) | |||||||||||||||||
Q1 2022 | Q1 2023 | V % | |||||||||||||||
GAAP revenue | $ | 1,280 | $ | 1,470 | 15 | % | |||||||||||
Components of revenue growth | |||||||||||||||||
Organic | 8 | % | |||||||||||||||
Acquisitions/divestitures | 8 | % | |||||||||||||||
Foreign exchange | (1) | % | |||||||||||||||
Revenue growth | 15 | % | |||||||||||||||
Adjusted EBITDA reconciliation | |||||||||||||||||
GAAP net earnings | $ | 236 | $ | 284 | |||||||||||||
Taxes | 65 | 76 | |||||||||||||||
Interest expense | 53 | 37 | |||||||||||||||
Depreciation | 10 | 9 | |||||||||||||||
Amortization | 146 | 175 | |||||||||||||||
EBITDA | $ | 509 | $ | 581 | 14 | % | |||||||||||
Purchase accounting adjustment to acquired commission expense | (1) | — | |||||||||||||||
Financial impacts associated with the minority investment in Indicor | — | 1 | A | ||||||||||||||
Adjusted EBITDA | $ | 508 | $ | 582 | 15 | % | |||||||||||
% of revenue | 39.7 | % | 39.6 | % | (10 bps) |
Table 2: Adjusted DEPS reconciliation (from continuing operations) | |||||||||||||||||
Q1 2022 | Q1 2023 | V % | |||||||||||||||
GAAP DEPS | $ | 2.22 | $ | 2.66 | 20 | % | |||||||||||
Purchase accounting adjustment to acquired commission expense | (0.01) | — | |||||||||||||||
Financial impacts associated with the minority investment in Indicor | — | (0.02) | A | ||||||||||||||
Amortization of acquisition-related intangible assets | 1.06 | 1.26 | B | ||||||||||||||
Adjusted DEPS | $ | 3.27 | $ | 3.90 | 19 | % |
Table 3: Adjusted cash flow reconciliation ($M) (from continuing operations) | |||||||||||||||||
Q1 2022 | Q1 2023 | V % | |||||||||||||||
Operating cash flow | $ | 441 | $ | 465 | 5 | % | |||||||||||
Capital expenditures | (5) | (10) | |||||||||||||||
Capitalized software expenditures | (8) | (10) | |||||||||||||||
Free cash flow | $ | 428 | $ | 445 | 4 | % |
Table 4: Forecasted adjusted DEPS reconciliation (from continuing operations) | |||||||||||||||||||||||
Q2 2023 | FY 2023 | ||||||||||||||||||||||
Low end | High end | Low end | High end | ||||||||||||||||||||
GAAP DEPS C | $ | 2.71 | $ | 2.75 | $ | 11.11 | $ | 11.31 | |||||||||||||||
Financial impacts associated with the minority investment in Indicor A | TBD | TBD | TBD | TBD | |||||||||||||||||||
Amortization of acquisition-related intangible assets B | 1.25 | 1.25 | 4.99 | 4.99 | |||||||||||||||||||
Adjusted DEPS | $ | 3.96 | $ | 4.00 | $ | 16.10 | $ | 16.30 | |||||||||||||||
A. | Financial impacts associated with the minority investment in Indicor as shown below ($M, except per share data). | |||||||||||||||||||||||||||||||
Q1 2022A | Q1 2023A | Q2 2023E | FY 2023E | |||||||||||||||||||||||||||||
Pretax | $ | — | $ | 1 | TBD | TBD | ||||||||||||||||||||||||||
After-tax | $ | — | $ | (2) | TBD | TBD | ||||||||||||||||||||||||||
Per share | $ | — | $ | (0.02) | TBD | TBD | ||||||||||||||||||||||||||
B. | Actual results and forecast of estimated amortization of acquisition-related intangible assets as shown below ($M, except per share data). These adjustments are taxed at 21%. | |||||||||||||||||||||||||||||||
Q1 2022A | Q1 2023A | Q2 2023E | FY 2023E | |||||||||||||||||||||||||||||
Pretax | $ | 143 | $ | 170 | $ | 170 | $ | 678 | ||||||||||||||||||||||||
After-tax | $ | 113 | $ | 135 | $ | 134 | $ | 535 | ||||||||||||||||||||||||
Per share | $ | 1.06 | $ | 1.26 | $ | 1.25 | $ | 4.99 | ||||||||||||||||||||||||
C. | Forecasted results do not include any potential impact associated with our Indicor investment and will be adjusted out of all GAAP results in future periods. | |||||||||||||||||||||||||||||||
Roper Technologies, Inc. and Subsidiaries | |||||||||||
Condensed Consolidated Balance Sheets (unaudited) | |||||||||||
(Amounts in millions) | |||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
ASSETS: | |||||||||||
Cash and cash equivalents | $ | 1,181.6 | $ | 792.8 | |||||||
Accounts receivable, net | 629.1 | 724.5 | |||||||||
Inventories, net | 115.0 | 111.3 | |||||||||
Income taxes receivable | 25.5 | 61.0 | |||||||||
Unbilled receivables | 100.9 | 91.5 | |||||||||
Other current assets | 180.1 | 151.3 | |||||||||
Total current assets | 2,232.2 | 1,932.4 | |||||||||
Property, plant and equipment, net | 86.3 | 85.3 | |||||||||
Goodwill | 15,962.8 | 15,946.1 | |||||||||
Other intangible assets, net | 7,871.7 | 8,030.7 | |||||||||
Deferred taxes | 59.3 | 55.9 | |||||||||
Equity investment | 535.0 | 535.0 | |||||||||
Other assets | 387.5 | 395.4 | |||||||||
Total assets | $ | 27,134.8 | $ | 26,980.8 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||||||
Accounts payable | $ | 134.0 | $ | 122.6 | |||||||
Accrued compensation | 154.2 | 228.8 | |||||||||
Deferred revenue | 1,303.8 | 1,370.7 | |||||||||
Other accrued liabilities | 413.4 | 454.6 | |||||||||
Income taxes payable | 70.5 | 16.6 | |||||||||
Current portion of long-term debt, net | 699.5 | 699.2 | |||||||||
Total current liabilities | 2,775.4 | 2,892.5 | |||||||||
Long-term debt, net of current portion | 5,964.4 | 5,962.5 | |||||||||
Deferred taxes | 1,652.9 | 1,676.8 | |||||||||
Other liabilities | 409.4 | 411.2 | |||||||||
Total liabilities | 10,802.1 | 10,943.0 | |||||||||
Common stock | 1.1 | 1.1 | |||||||||
Additional paid-in capital | 2,570.4 | 2,510.2 | |||||||||
Retained earnings | 13,941.2 | 13,730.7 | |||||||||
Accumulated other comprehensive loss | (162.9) | (187.0) | |||||||||
Treasury stock | (17.1) | (17.2) | |||||||||
Total stockholders' equity | 16,332.7 | 16,037.8 | |||||||||
Total liabilities and stockholders' equity | $ | 27,134.8 | $ | 26,980.8 |
Roper Technologies, Inc. and Subsidiaries | ||||||||||||||
Condensed Consolidated Statements of Earnings (unaudited) | ||||||||||||||
(Amounts in millions, except per share data) | ||||||||||||||
Three months ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Net revenues | $ | 1,469.7 | $ | 1,279.8 | ||||||||||
Cost of sales | 451.1 | 382.6 | ||||||||||||
Gross profit | 1,018.6 | 897.2 | ||||||||||||
Selling, general and administrative expenses | 617.6 | 541.3 | ||||||||||||
Income from operations | 401.0 | 355.9 | ||||||||||||
Interest expense, net | 37.4 | 52.6 | ||||||||||||
Equity investment activity, net | (1.2) | — | ||||||||||||
Other expense, net | (2.3) | (2.1) | ||||||||||||
Earnings before income taxes | 360.1 | 301.2 | ||||||||||||
Income taxes | 75.8 | 64.8 | ||||||||||||
Net earnings from continuing operations | 284.3 | 236.4 | ||||||||||||
Earnings (loss) from discontinued operations, net of tax | (1.2) | 66.8 | ||||||||||||
Gain on disposition of discontinued operations, net of tax | — | 1,717.3 | ||||||||||||
Net earnings (loss) from discontinued operations | (1.2) | 1,784.1 | ||||||||||||
Net earnings | $ | 283.1 | $ | 2,020.5 | ||||||||||
Net earnings per share from continuing operations: | ||||||||||||||
Basic | $ | 2.67 | $ | 2.24 | ||||||||||
Diluted | $ | 2.66 | $ | 2.22 | ||||||||||
Net earnings (loss) per share from discontinued operations: | ||||||||||||||
Basic | $ | (0.01) | $ | 16.89 | ||||||||||
Diluted | $ | (0.01) | $ | 16.72 | ||||||||||
Net earnings per share: | ||||||||||||||
Basic | $ | 2.66 | $ | 19.13 | ||||||||||
Diluted | $ | 2.65 | $ | 18.94 | ||||||||||
Weighted average common shares outstanding: | ||||||||||||||
Basic | 106.3 | 105.6 | ||||||||||||
Diluted | 107.0 | 106.7 |
Roper Technologies, Inc. and Subsidiaries | |||||||||||||||||||||||
Selected Segment Financial Data (unaudited) | |||||||||||||||||||||||
(Amounts in millions; percentages of net revenues) | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Amount | % | Amount | % | ||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||
Application Software | $ | 761.4 | $ | 628.2 | |||||||||||||||||||
Network Software | 354.5 | 338.5 | |||||||||||||||||||||
Technology Enabled Products | 353.8 | 313.1 | |||||||||||||||||||||
Total | $ | 1,469.7 | $ | 1,279.8 | |||||||||||||||||||
Gross profit: | |||||||||||||||||||||||
Application Software | $ | 520.5 | 68.4% | $ | 435.4 | 69.3% | |||||||||||||||||
Network Software | 299.4 | 84.5% | 284.9 | 84.2% | |||||||||||||||||||
Technology Enabled Products | 198.7 | 56.2% | 176.9 | 56.5% | |||||||||||||||||||
Total | $ | 1,018.6 | 69.3% | $ | 897.2 | 70.1% | |||||||||||||||||
Operating profit*: | |||||||||||||||||||||||
Application Software | $ | 193.2 | 25.4% | $ | 172.3 | 27.4% | |||||||||||||||||
Network Software | 147.5 | 41.6% | 136.8 | 40.4% | |||||||||||||||||||
Technology Enabled Products | 115.5 | 32.6% | 99.7 | 31.8% | |||||||||||||||||||
Total | $ | 456.2 | 31.0% | $ | 408.8 | 31.9% | |||||||||||||||||
*Segment operating profit is before unallocated corporate general and administrative expenses and enterprise-wide stock-based compensation. These expenses were $55.2 and $52.9 for the three months ended March 31, 2023 and 2022, respectively. |
Roper Technologies, Inc. and Subsidiaries | ||||||||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) | ||||||||||||||
(Amounts in millions) | ||||||||||||||
Three months ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net earnings from continuing operations | $ | 284.3 | $ | 236.4 | ||||||||||
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities: | ||||||||||||||
Depreciation and amortization of property, plant and equipment | 8.6 | 9.6 | ||||||||||||
Amortization of intangible assets | 175.1 | 145.7 | ||||||||||||
Amortization of deferred financing costs | 2.6 | 3.1 | ||||||||||||
Non-cash stock compensation | 29.6 | 33.0 | ||||||||||||
Income tax provision, excluding tax associated with gain on sale of assets | 75.8 | 64.8 | ||||||||||||
Changes in operating assets and liabilities, net of acquired businesses: | ||||||||||||||
Accounts receivable | 98.0 | 85.6 | ||||||||||||
Unbilled receivables | (8.7) | (10.4) | ||||||||||||
Inventories | (3.8) | (13.0) | ||||||||||||
Accounts payable | 11.2 | 10.1 | ||||||||||||
Other accrued liabilities | (103.7) | (106.6) | ||||||||||||
Deferred revenue | (61.4) | 28.4 | ||||||||||||
Cash income taxes paid | (16.0) | (22.3) | ||||||||||||
Other, net | (26.7) | (23.1) | ||||||||||||
Cash provided by operating activities from continuing operations | 464.9 | 441.3 | ||||||||||||
Cash provided by (used in) operating activities from discontinued operations | (1.2) | 34.0 | ||||||||||||
Cash provided by operating activities | 463.7 | 475.3 | ||||||||||||
Cash flows from (used in) investing activities: | ||||||||||||||
Acquisitions of businesses, net of cash acquired | (1.1) | (53.2) | ||||||||||||
Capital expenditures | (9.8) | (5.4) | ||||||||||||
Capitalized software expenditures | (9.9) | (7.5) | ||||||||||||
Other, net | (2.8) | — | ||||||||||||
Cash used in investing activities from continuing operations | (23.6) | (66.1) | ||||||||||||
Proceeds from (used in) disposition of discontinued operations | (3.2) | 3,006.2 | ||||||||||||
Cash used in investing activities from discontinued operations | — | (1.9) | ||||||||||||
Cash provided by (used in) investing activities | (26.8) | 2,938.2 | ||||||||||||
Cash flows from (used in) financing activities: | ||||||||||||||
Borrowings (payments) under revolving line of credit, net | — | (470.0) | ||||||||||||
Cash dividends to stockholders | (72.3) | (65.3) | ||||||||||||
Proceeds from stock-based compensation, net | 15.1 | 21.0 | ||||||||||||
Treasury stock sales | 4.7 | 5.5 | ||||||||||||
Cash flows used in financing activities from continuing operations | (52.5) | (508.8) | ||||||||||||
Cash flows used in financing activities from discontinued operations | — | (11.4) | ||||||||||||
Cash flows used in financing activities | (52.5) | (520.2) | ||||||||||||
(Continued) |
Roper Technologies, Inc. and Subsidiaries | ||||||||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) - Continued | ||||||||||||||
(Amounts in millions) | ||||||||||||||
Three months ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Effect of foreign currency exchange rate changes on cash | 4.4 | (7.3) | ||||||||||||
Net increase in cash and cash equivalents | 388.8 | 2,886.0 | ||||||||||||
Cash and cash equivalents, beginning of period | 792.8 | 351.5 | ||||||||||||
Cash and cash equivalents, end of period | $ | 1,181.6 | $ | 3,237.5 |