Table 1: Adjusted DEPS Reconciliation (From Continuing Operations) | |||||||||||||||||
Q3 2021 | Q3 2022 | V % | |||||||||||||||
GAAP DEPS | $ | 1.97 | $ | 2.59 | 31 | % | |||||||||||
Purchase accounting adjustment to acquired commission expense | (0.01) | (0.01) | A | ||||||||||||||
Transaction-related expenses for completed acquisitions | — | 0.02 | B | ||||||||||||||
Amortization of acquisition-related intangible assets | 1.05 | 1.06 | C | ||||||||||||||
Income tax restructuring expense associated with discontinued operations | 0.11 | — | |||||||||||||||
Adjusted DEPS | $ | 3.12 | $ | 3.67 | 18 | % |
Table 2: Adjusted Revenue and EBITDA Reconciliation ($M) (From Continuing Operations) | |||||||||||||||||
Q3 2021 | Q3 2022 | V % | |||||||||||||||
Adjusted Revenue Reconciliation | |||||||||||||||||
GAAP Revenue | $ | 1,232 | $ | 1,350 | 10 | % | |||||||||||
Adjusted Revenue | $ | 1,232 | $ | 1,350 | 10 | % | |||||||||||
Components of Adjusted Revenue Growth | |||||||||||||||||
Organic | 10 | % | |||||||||||||||
Acquisitions/Divestitures | 1 | % | |||||||||||||||
Foreign Exchange | (2) | % | |||||||||||||||
Adjusted Revenue Growth | 10 | % | |||||||||||||||
Adjusted EBITDA Reconciliation | |||||||||||||||||
GAAP Net Earnings | $ | 211 | $ | 277 | |||||||||||||
Taxes | 76 | 78 | |||||||||||||||
Interest Expense | 58 | 41 | |||||||||||||||
Depreciation | 10 | 9 | |||||||||||||||
Amortization | 143 | 147 | |||||||||||||||
EBITDA | $ | 498 | $ | 553 | 11 | % | |||||||||||
Purchase accounting adjustment to acquired commission expense | (1) | (1) | A | ||||||||||||||
Transaction-related expenses for completed acquisitions | — | 3 | B | ||||||||||||||
Adjusted EBITDA | $ | 497 | $ | 555 | 12 | % | |||||||||||
% of Adjusted Revenue | 40.3 | % | 41.1 | % | +80 bps |
Table 3: Adjusted Cash Flow Reconciliation ($M) (From Continuing Operations) | |||||||||||||||||
Q3 2021 | Q3 2022 | V % | |||||||||||||||
Operating Cash Flow | $ | 337 | $ | 219 | |||||||||||||
Taxes paid in period related to divestitures | — | 157 | |||||||||||||||
Adjusted Operating Cash Flow | $ | 337 | $ | 376 | 12 | % | |||||||||||
Table 4: Forecasted Adjusted DEPS Reconciliation (From Continuing Operations) | |||||||||||||||||||||||
Q4 2022 | FY 2022 | ||||||||||||||||||||||
Low End | High End | Low End | High End | ||||||||||||||||||||
GAAP DEPS | $ | 2.48 | $ | 2.52 | $ | 9.41 | $ | 9.45 | |||||||||||||||
Purchase accounting adjustment to acquired commission expense A | (0.01) | (0.01) | (0.04) | (0.04) | |||||||||||||||||||
Transaction-related expenses for completed acquisitions B | — | — | 0.02 | 0.02 | |||||||||||||||||||
Amortization of acquisition-related intangible assets C | 1.25 | 1.25 | 4.43 | 4.43 | |||||||||||||||||||
Income tax restructuring expense associated with pending industrial sale | — | — | 0.27 | 0.27 | |||||||||||||||||||
Adjusted DEPS | $ | 3.72 | $ | 3.76 | $ | 14.09 | $ | 14.13 | |||||||||||||||
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). These adjustments are taxed at 21%. | |||||||||||||||||||||||||||||||
Q3 2021A | Q3 2022A | Q4 2022E | FY 2022E | |||||||||||||||||||||||||||||
Pretax | $ | (1) | $ | (1) | $ | (1) | $ | (5) | ||||||||||||||||||||||||
After-tax | $ | (1) | $ | (1) | $ | (1) | $ | (4) | ||||||||||||||||||||||||
Per Share | $ | (0.01) | $ | (0.01) | $ | (0.01) | $ | (0.04) | ||||||||||||||||||||||||
B. | Transaction-related expenses for the Frontline and viGlobal acquisitions. This adjustment is taxed at 21%. | |||||||||||||||||||||||||||||||
C. | 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%. | |||||||||||||||||||||||||||||||
Q3 2021A | Q3 2022A | Q4 2022E | FY 2022E | |||||||||||||||||||||||||||||
Pretax | $ | 141 | $ | 144 | $ | 170 | $ | 599 | ||||||||||||||||||||||||
After-tax | $ | 112 | $ | 114 | $ | 134 | $ | 474 | ||||||||||||||||||||||||
Per Share | $ | 1.05 | $ | 1.06 | $ | 1.25 | $ | 4.43 | ||||||||||||||||||||||||
Roper Technologies, Inc. and Subsidiaries | |||||||||||
Condensed Consolidated Balance Sheets (unaudited) | |||||||||||
(Amounts in millions) | |||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||
ASSETS: | |||||||||||
Cash and cash equivalents | $ | 1,894.5 | $ | 351.5 | |||||||
Accounts receivable, net | 630.3 | 687.6 | |||||||||
Inventories, net | 101.0 | 69.2 | |||||||||
Income taxes receivable | 33.5 | 16.8 | |||||||||
Unbilled receivables | 98.8 | 81.9 | |||||||||
Other current assets | 138.6 | 136.1 | |||||||||
Current assets held for sale | 1,094.7 | 1,078.0 | |||||||||
Total current assets | 3,991.4 | 2,421.1 | |||||||||
Property, plant and equipment, net | 83.2 | 82.7 | |||||||||
Goodwill | 13,672.8 | 13,476.3 | |||||||||
Other intangible assets, net | 6,243.5 | 6,509.1 | |||||||||
Deferred taxes | 47.2 | 50.0 | |||||||||
Other assets | 359.1 | 369.8 | |||||||||
Assets held for sale | — | 804.9 | |||||||||
Total assets | $ | 24,397.2 | $ | 23,713.9 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||||||
Accounts payable | $ | 121.2 | $ | 98.3 | |||||||
Accrued compensation | 225.6 | 261.9 | |||||||||
Deferred revenue | 1,048.8 | 1,106.3 | |||||||||
Other accrued liabilities | 365.6 | 398.7 | |||||||||
Income taxes payable | 159.9 | 117.3 | |||||||||
Current portion of long-term debt, net | 698.9 | 799.2 | |||||||||
Current liabilities held for sale | 220.4 | 340.1 | |||||||||
Total current liabilities | 2,840.4 | 3,121.8 | |||||||||
Long-term debt, net of current portion | 5,960.6 | 7,122.6 | |||||||||
Deferred taxes | 1,365.0 | 1,466.2 | |||||||||
Other liabilities | 373.4 | 390.1 | |||||||||
Liabilities held for sale | — | 49.4 | |||||||||
Total liabilities | 10,539.4 | 12,150.1 | |||||||||
Common stock | 1.1 | 1.1 | |||||||||
Additional paid-in capital | 2,467.9 | 2,307.8 | |||||||||
Retained earnings | 11,874.8 | 9,455.6 | |||||||||
Accumulated other comprehensive loss | (468.7) | (183.1) | |||||||||
Treasury stock | (17.3) | (17.6) | |||||||||
Total stockholders' equity | 13,857.8 | 11,563.8 | |||||||||
Total liabilities and stockholders' equity | $ | 24,397.2 | $ | 23,713.9 |
Roper Technologies, Inc. and Subsidiaries | |||||||||||||||||||||||
Condensed Consolidated Statements of Earnings (unaudited) | |||||||||||||||||||||||
(Amounts in millions, except per share data) | |||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net revenues | $ | 1,350.3 | $ | 1,232.1 | $ | 3,940.9 | $ | 3,577.2 | |||||||||||||||
Cost of sales | 408.5 | 360.4 | 1,190.4 | 1,050.0 | |||||||||||||||||||
Gross profit | 941.8 | 871.7 | 2,750.5 | 2,527.2 | |||||||||||||||||||
Selling, general and administrative expenses | 548.6 | 524.8 | 1,638.5 | 1,546.5 | |||||||||||||||||||
Income from operations | 393.2 | 346.9 | 1,112.0 | 980.7 | |||||||||||||||||||
Interest expense, net | 41.3 | 58.2 | 138.6 | 178.2 | |||||||||||||||||||
Other income (expense), net | 3.6 | (2.1) | 0.2 | 25.0 | |||||||||||||||||||
Earnings before income taxes | 355.5 | 286.6 | 973.6 | 827.5 | |||||||||||||||||||
Income taxes | 78.6 | 75.8 | 235.3 | 189.3 | |||||||||||||||||||
Net earnings from continuing operations | 276.9 | 210.8 | 738.3 | 638.2 | |||||||||||||||||||
Earnings from discontinued operations, net of tax | 49.0 | 78.7 | 170.3 | 226.6 | |||||||||||||||||||
Gain on disposition of discontinued operations, net of tax | 1.1 | — | 1,707.7 | — | |||||||||||||||||||
Net earnings from discontinued operations | 50.1 | 78.7 | 1,878.0 | 226.6 | |||||||||||||||||||
Net earnings | $ | 327.0 | $ | 289.5 | $ | 2,616.3 | $ | 864.8 | |||||||||||||||
Net earnings per share from continuing operations: | |||||||||||||||||||||||
Basic | $ | 2.61 | $ | 2.00 | $ | 6.97 | $ | 6.07 | |||||||||||||||
Diluted | $ | 2.59 | $ | 1.97 | $ | 6.91 | $ | 6.00 | |||||||||||||||
Net earnings per share from discontinued operations: | |||||||||||||||||||||||
Basic | $ | 0.47 | $ | 0.75 | $ | 17.74 | $ | 2.15 | |||||||||||||||
Diluted | $ | 0.47 | $ | 0.74 | $ | 17.59 | $ | 2.13 | |||||||||||||||
Net earnings per share: | |||||||||||||||||||||||
Basic | $ | 3.08 | $ | 2.75 | $ | 24.71 | $ | 8.22 | |||||||||||||||
Diluted | $ | 3.06 | $ | 2.71 | $ | 24.50 | $ | 8.13 | |||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | 106.0 | 105.4 | 105.9 | 105.2 | |||||||||||||||||||
Diluted | 106.8 | 106.7 | 106.8 | 106.4 |
Roper Technologies, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||
Selected Segment Financial Data (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions; percentages of net revenues) | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||||||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Application Software | $ | 644.0 | $ | 600.2 | $ | 1,899.7 | $ | 1,761.2 | |||||||||||||||||||||||||||||||||||||||
Network Software | 346.6 | 316.0 | 1,028.0 | 901.3 | |||||||||||||||||||||||||||||||||||||||||||
Technology Enabled Products | 359.7 | 315.9 | 1,013.2 | 914.7 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,350.3 | $ | 1,232.1 | $ | 3,940.9 | $ | 3,577.2 | |||||||||||||||||||||||||||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||||||||||||||||||||
Application Software | $ | 440.2 | 68.4% | $ | 418.5 | 69.7% | $ | 1,306.5 | 68.8% | $ | 1,223.0 | 69.4% | |||||||||||||||||||||||||||||||||||
Network Software | 293.9 | 84.8% | 267.5 | 84.7% | 867.9 | 84.4% | 757.1 | 84.0% | |||||||||||||||||||||||||||||||||||||||
Technology Enabled Products | 207.7 | 57.7% | 185.7 | 58.8% | 576.1 | 56.9% | 547.1 | 59.8% | |||||||||||||||||||||||||||||||||||||||
Total | $ | 941.8 | 69.7% | $ | 871.7 | 70.7% | $ | 2,750.5 | 69.8% | $ | 2,527.2 | 70.6% | |||||||||||||||||||||||||||||||||||
Operating profit*: | |||||||||||||||||||||||||||||||||||||||||||||||
Application Software | $ | 173.8 | 27.0% | $ | 164.2 | 27.4% | $ | 511.4 | 26.9% | $ | 471.2 | 26.8% | |||||||||||||||||||||||||||||||||||
Network Software | 148.1 | 42.7% | 126.5 | 40.0% | 422.0 | 41.1% | 343.3 | 38.1% | |||||||||||||||||||||||||||||||||||||||
Technology Enabled Products | 126.5 | 35.2% | 104.1 | 33.0% | 337.6 | 33.3% | 312.0 | 34.1% | |||||||||||||||||||||||||||||||||||||||
Total | $ | 448.4 | 33.2% | $ | 394.8 | 32.0% | $ | 1,271.0 | 32.3% | $ | 1,126.5 | 31.5% | |||||||||||||||||||||||||||||||||||
*Segment operating profit is before unallocated corporate general and administrative expenses. These expenses were $55.2 and $47.9 for the three months ended September 30, 2022 and 2021, respectively, and $159.0 and $145.8 for the nine months ended September 30, 2022 and 2021, respectively. |
Roper Technologies, Inc. and Subsidiaries | ||||||||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) | ||||||||||||||
(Amounts in millions) | ||||||||||||||
Nine months ended September 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net earnings from continuing operations | $ | 738.3 | $ | 638.2 | ||||||||||
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities: | ||||||||||||||
Depreciation and amortization of property, plant and equipment | 28.0 | 33.9 | ||||||||||||
Amortization of intangible assets | 438.4 | 429.0 | ||||||||||||
Amortization of deferred financing costs | 9.2 | 10.1 | ||||||||||||
Non-cash stock compensation | 90.8 | 93.5 | ||||||||||||
Gain on sale of assets, net of tax | — | (21.6) | ||||||||||||
Income tax provision, excluding tax associated with gain on sale of assets | 235.3 | 183.8 | ||||||||||||
Changes in operating assets and liabilities, net of acquired businesses: | ||||||||||||||
Accounts receivable | 48.3 | (0.3) | ||||||||||||
Unbilled receivables | (21.7) | (22.9) | ||||||||||||
Inventories | (33.6) | — | ||||||||||||
Accounts payable | 24.7 | 14.6 | ||||||||||||
Other accrued liabilities | (59.0) | 10.8 | ||||||||||||
Deferred revenue | (15.2) | 26.5 | ||||||||||||
Cash tax payments related to disposal of businesses | (534.6) | — | ||||||||||||
Cash income taxes paid | (397.5) | (223.8) | ||||||||||||
Other, net | (1.2) | (29.2) | ||||||||||||
Cash provided by operating activities from continuing operations | 550.2 | 1,142.6 | ||||||||||||
Cash provided by operating activities from discontinued operations | 112.7 | 289.8 | ||||||||||||
Cash provided by operating activities | 662.9 | 1,432.4 | ||||||||||||
Cash flows from (used in) investing activities: | ||||||||||||||
Acquisitions of businesses, net of cash acquired | (580.9) | (19.4) | ||||||||||||
Capital expenditures | (30.0) | (19.9) | ||||||||||||
Capitalized software expenditures | (21.9) | (22.2) | ||||||||||||
Proceeds from sale of assets | — | 27.1 | ||||||||||||
Other, net | (1.8) | (1.5) | ||||||||||||
Cash used in investing activities from continuing operations | (634.6) | (35.9) | ||||||||||||
Proceeds from disposition of discontinued operations | 2,997.1 | — | ||||||||||||
Cash used in investing activities from discontinued operations | (4.9) | (6.5) | ||||||||||||
Cash provided by (used in) investing activities | 2,357.6 | (42.4) | ||||||||||||
Cash flows from (used in) financing activities: | ||||||||||||||
Payments on senior notes | (800.0) | — | ||||||||||||
Borrowings (payments) under revolving line of credit, net | (470.0) | (1,240.0) | ||||||||||||
Debt issuance costs | (3.9) | — | ||||||||||||
Cash dividends to stockholders | (196.2) | (176.9) | ||||||||||||
Proceeds from stock-based compensation, net | 57.0 | 63.9 | ||||||||||||
Treasury stock sales | 11.6 | 11.8 | ||||||||||||
Other | (0.3) | — | ||||||||||||
Cash flows used in financing activities from continuing operations | (1,401.8) | (1,341.2) | ||||||||||||
Cash flows provided by (used in) financing activities from discontinued operations | (11.3) | 0.3 | ||||||||||||
Cash flows used in financing activities | (1,413.1) | (1,340.9) | ||||||||||||
(Continued) |
Roper Technologies, Inc. and Subsidiaries | ||||||||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) - (Continued) | ||||||||||||||
(Amounts in millions) | ||||||||||||||
Nine months ended September 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Effect of foreign currency exchange rate changes on cash | (64.4) | (4.9) | ||||||||||||
Net increase in cash and cash equivalents | 1,543.0 | 44.2 | ||||||||||||
Cash and cash equivalents, beginning of period | 351.5 | 308.3 | ||||||||||||
Cash and cash equivalents, end of period | $ | 1,894.5 | $ | 352.5 |