Roper (ROP) 8-K Roper Industries Announces Results For 2009 Fourth Quarter and Full Year

Contact Information: Investor Relations 941-556-2601 investor-relations@roperind.com   Roper Industries, Inc.

Roper Industries Announces Results For 2009 Fourth Quarter and Full Year

Fourth Quarter Net Earnings Per Diluted Share of $0.77

Orders Increase Over Prior Year Period

Fourth Quarter Operating Cash Flow of $120 Million

Full Year Operating Cash Flow of $368 Million

Sarasota, Florida, February 3, 2010 .... Roper Industries, Inc.  (NYSE: ROP) reported financial results for the fourth quarter and full year ended December 31, 2009.

Net earnings for the fourth quarter were $72 million, or $0.77 per diluted share.  Adjusted earnings per diluted share were $0.81, which excludes $0.04 of restructuring and acquisition charges.  Sales in the fourth quarter were $554 million, a 4% decrease from the same period in 2008. Orders were $565 million, an increase of 1% over the fourth quarter of the prior year, marking the first time since the third quarter of 2008 that orders exceeded the prior year.  Operating margin was 21.8%, an increase of 110 basis points from the prior year, and operating cash flow was $120 million, representing 22% of revenue and 166% of net earnings.

Compared sequentially to the third quarter, Roper’s fourth quarter performance reflected a double digit increase in sales and orders, a 31% increase in operating profit and margin expansion of 290 basis points.

For the full year, net earnings were $239 million, or $2.58 per diluted share, including $0.12 of restructuring and acquisition charges.  Sales for the year were $2.05 billion, down 11% from the prior year.  Operating cash flow was $368 million, representing 18% of revenue and 153% of net earnings.

“Our businesses performed very well during the fourth quarter, as we saw continued improvement in order trends across all segments,” said Brian Jellison, Roper’s Chairman, President and CEO.  “Margins expanded as a result of strong execution, favorable leverage on increased sales compared to the third quarter, and the benefits of prior restructuring actions.  Our consistent focus on cash flow and working capital management resulted in exceptional cash performance for 2009, the twelfth consecutive year that free cash flow exceeded net income.”

“We invested over $350 million in two acquisitions during the quarter,” continued Mr. Jellison.  “Verathon, a leading global provider of proprietary medical devices and services, expands our medical platform and provides global coverage to hospitals, primary care physicians, acute care and military end markets with direct sales coverage.  United Toll Systems, which provides software and in-lane hardware systems for toll and traffic markets, adds to our RF solutions for the toll industry.  We are excited about the contribution of these businesses to our growth in 2010 and expect to pursue other strategic acquisitions during the year.”

2010 Outlook and Guidance

The Company expects full year diluted earnings per share (DEPS) to be between $2.83 and $3.03 with operating cash flow between $375 million and $400 million.  First quarter DEPS are expected to be between $0.62 and $0.65, which excludes an expected $0.03 impact from fair value adjustments to acquisition-related inventory.  The Company’s guidance excludes future acquisitions.

Table 1:  Sales Growth

	Q4 2009	FY 2009
Organic Growth	(8%)	(14%)
Acquisitions / Divestitures	2%	4%
Foreign Currency	2%	(1%)
Total Sales Growth	(4%)	(11%)

Table 2:  Free Cash Flow (millions)

	FY 2009
Operating Cash Flow	$368
Less: Capital Expenditures	(26)
Free Cash Flow	$342

Conference Call to be Held at 8:00 AM (ET) Today

A conference call to discuss these results has been scheduled for 8:00 AM ET on Wednesday, February 3, 2010.  The call can be accessed via webcast or by dialing +1 888-539-3679 (US/Canada) or +1 719-457-2638, using confirmation code 1194375.  Webcast information and conference call materials will be made available in the Investors section of Roper’s website (www.roperind.com) prior to the start of the call.  Telephonic replays will be available for up to two weeks by calling +1 (719) 457-0820 and using the access code 1194375.

About Roper Industries

Roper Industries is a market-driven, diversified growth company and is a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices. Roper provides engineered products and solutions for global niche markets, including water, energy, radio frequency and research/medical applications.  Additional information about Roper Industries is available on the Company’s website at www.roperind.com.

The information provided in this press release contains forward looking statements within the meaning of the federal securities laws. These forward looking statements include, among others, statements regarding operating results, the success of our internal operating plans, and the prospects for newly acquired businesses to be integrated and contribute to future growth and profit expectations.  Forward looking statements may be indicated by words or phrases such as "anticipate," "estimate," "plans," "expects," "projects," "should," "will," "believes" or "intends" and similar words and phrases.  These statements reflect management's current beliefs and are not guarantees of future performance.  They involve risks and uncertainties that could cause actual results to differ materially from those contained in any forward looking statement. Such risks and uncertainties include our ability to integrate our acquisitions and realize expected synergies.  We also face other general risks, including our ability to realize cost savings from our operating initiatives, general economic conditions, unfavorable changes in foreign exchange rates, difficulties associated with exports, risks associated with our international operations, difficulties in making and integrating acquisitions, risks associated with newly acquired businesses, increased product liability and insurance costs, increased warranty exposure, future competition, changes in the supply of, or price for, parts and components, environmental compliance costs and liabilities, risks and cost associated with asbestos related litigation and potential write-offs of our substantial intangible assets, and risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products.  Important risks may be discussed in current and subsequent filings with the SEC.  You should not place undue reliance on any forward looking statements.  These statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

# # #

Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(Amounts in thousands)
	December 31,			December 31,
ASSETS	2009			2008
CURRENT ASSETS:
Cash and cash equivalents	$	167,708		$	178,069
Accounts receivable		381,658			376,855
Inventories		178,795			185,919
Deferred taxes		27,306			29,390
Unbilled receivable		57,153			61,168
Other current assets		58,125			26,906
Total current assets		870,745			858,307
PROPERTY, PLANT AND EQUIPMENT, NET		109,493			112,463
OTHER ASSETS:
Goodwill		2,388,432			2,118,852
Other intangible assets, net		868,900			804,020
Deferred taxes		33,123			28,050
Other assets		57,043			49,846
Total other assets		3,347,498			3,000,768
TOTAL ASSETS	$	4,327,736		$	3,971,538
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	110,103		$	121,807
Accrued liabilities		253,441			261,682
Income taxes payable		-			1,892
Deferred taxes		1,671			-
Current portion of long-term debt		112,796			233,526
Total current liabilities		478,011			618,907
NONCURRENT LIABILITIES:
Long-term debt		1,040,962			1,033,689
Deferred taxes		328,299			272,182
Other liabilities		58,974			42,826
Total liabilities		1,906,246			1,967,604
STOCKHOLDERS' EQUITY:
Common stock		958			919
Additional paid-in capital		982,321			815,736
Retained earnings		1,395,586			1,187,467
Accumulated other comprehensive earnings		63,945			21,513
Treasury stock		(21,320	)		(21,701	)
Total stockholders' equity		2,421,490			2,003,934
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	4,327,736		$	3,971,538

Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (unaudited)
(Amounts in thousands, except per share data)
	Three months ended					Twelve months ended
	December 31,					December 31,
	2009			2008		2009		2008
Net sales	$	553,638		$	575,862	$	2,049,668	$	2,306,371
Cost of sales		262,226			278,054		1,006,530		1,118,083
Gross profit		291,412			297,808		1,043,138		1,188,288
Selling, general and administrative expenses		170,644			178,753		647,742		702,127
Income from operations		120,768			119,055		395,396		486,161
Interest expense		16,836			18,678		58,544		60,819
Other income (expense)		(1	)		5,169		2,916		3,474
Earnings from continuing operations before
income taxes		103,931			105,546		339,768		428,816
Income taxes		32,007			34,675		100,287		146,942
Net Earnings	$	71,924		$	70,871	$	239,481	$	281,874
Earnings per share:
Basic	$	0.79		$	0.79	$	2.64	$	3.15
Diluted	$	0.77		$	0.77	$	2.58	$	3.01
Weighted average common and common
equivalent shares outstanding:
Basic		91,156			89,726		90,685		89,468
Diluted		93,370			92,336		92,820		93,699

Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(Amounts in thousands)
	Twelve months ended
	December 31,
	2009			2008
Net earnings	$	239,481		$	281,874
Non-cash items:
Depreciation		34,163			33,900
Amortization		69,285			69,208
Stock-based compensation expense		27,476			30,905
Income taxes		(6,225	)		(2,675	)
Changes in assets and liabilities:
Receivables		30,993			13,659
Inventory		31,081			(8,728	)
Accounts payable		(17,011	)		2,586
Accrued liabilities		(41,790	)		6,623
Other, net		68			7,086
Cash provided by operating activities		367,521			434,438
Business acquisitions, net of cash acquired		(354,561	)		(704,764	)
Capital expenditures		(25,885	)		(30,047	)
Other, net		6,254			(4,483	)
Cash used by investing activities		(374,192	)		(739,294	)
Principal debt borrowings		500,000			850,000
Principal debt payments		(474,270	)		(957,745	)
Revolver borrowings (payments), net		(139,000	)		313,000
Debt issuance costs		(4,708	)		(10,226	)
Dividends		(29,823	)		(25,887	)
Excess tax benefit from share-based payment		2,813			5,359
Proceeds from issuance of common stock		121,427			-
Proceeds from exercise of stock options		10,505			11,037
Other, net		(563	)		2,381
Cash provided by (used by) financing activities		(13,619	)		187,919
Effect of exchange rate changes on cash		9,929			(13,762	)
Net increase (decrease) in cash and equivalents		(10,361	)		(130,699	)
Cash and equivalents, beginning of period		178,069			308,768
Cash and equivalents, end of period	$	167,708		$	178,069

Roper Industries, Inc. and Subsidiaries
Selected Segment Financial Data (unaudited)
(Amounts in thousands and percents of net sales)
	Three months ended December 31,										Twelve months ended December 31,
	2009					2008					2009					2008
	Amount		%			Amount		%			Amount		%			Amount		%
Net sales:
Industrial Technology	$	138,489				$	161,693				$	536,219				$	687,622
Energy Systems & Controls		125,922					137,576					440,919					548,214
Scientific & Industrial Imaging		115,862					93,336					354,776					375,542
RF Technology		173,365					183,257					717,754					694,993
Total	$	553,638				$	575,862				$	2,049,668				$	2,306,371
Gross profit:
Industrial Technology	$	64,892		46.9	%	$	79,985		49.5	%	$	255,393		47.6	%	$	333,704		48.5	%
Energy Systems & Controls		69,794		55.4	%		71,413		51.9	%		233,917		53.1	%		295,133		53.8	%
Scientific & Industrial Imaging		67,926		58.6	%		52,488		56.2	%		200,311		56.5	%		206,623		55.0	%
RF Technology		88,800		51.2	%		93,922		51.3	%		353,517		49.3	%		352,828		50.8	%
Total	$	291,412		52.6	%	$	297,808		51.7	%	$	1,043,138		50.9	%	$	1,188,288		51.5	%
Operating profit*:
Industrial Technology	$	32,345		23.4	%	$	41,643		25.8	%	$	123,959		23.1	%	$	178,270		25.9	%
Energy Systems & Controls		32,862		26.1	%		30,250		22.0	%		92,788		21.0	%		126,609		23.1	%
Scientific & Industrial Imaging		30,883		26.7	%		20,648		22.1	%		74,183		20.9	%		74,739		19.9	%
RF Technology		38,706		22.3	%		39,885		21.8	%		154,430		21.5	%		159,787		23.0	%
Total	$	134,796		24.3	%	$	132,426		23.0	%	$	445,360		21.7	%	$	539,405		23.4	%
Operating profit excluding restructuring*:
Industrial Technology	$	32,394		23.4	%	$	41,835		25.9	%	$	128,325		23.9	%	$	178,462		26.0	%
Energy Systems & Controls		34,557		27.4	%		32,172		23.4	%		98,296		22.3	%		128,531		23.4	%
Scientific & Industrial Imaging		31,032		26.8	%		20,946		22.4	%		75,829		21.4	%		75,037		20.0	%
RF Technology		38,800		22.4	%		40,105		21.9	%		155,342		21.6	%		160,007		23.0	%
Total	$	136,783		24.7	%	$	135,058		23.5	%	$	457,792		22.3	%	$	542,037		23.5	%
Net Orders:
Industrial Technology	$	137,159				$	141,850				$	528,208				$	656,176
Energy Systems & Controls		128,452					138,919					427,003					541,472
Scientific & Industrial Imaging		113,699					93,937					349,132					383,543
RF Technology		185,415					184,046					719,666					722,670
Total	$	564,725				$	558,752				$	2,024,009				$	2,303,861
* Operating profit is before unallocated corporate general and administrative expenses. These expenses
were $14,028 and $13,371 for the three months ended December 31, 2009 and 2008, respectively, and
$49,964 and $53,244 for the twelve months ended December 31, 2009 and 2008, respectively.