Contact Information: Investor Relations 941-556-2601 investor-relations@roperind.com | Roper Industries, Inc. |
Roper Industries Announces 2010 First Quarter Results
Net Earnings Increase 16%; Orders Increase 20% to $567 Million;
Record First Quarter Operating Cash Flow of $95 Million
Sarasota, Florida, April 26, 2010 ... Roper Industries, Inc. (NYSE: ROP) reported financial results for its first quarter ended March 31, 2010.
Net earnings for the first quarter were $60 million, or $0.62 per diluted share. Adjusted earnings per diluted share were $0.65, which excludes a previously announced acquisition-related inventory charge of $0.03. Orders were a record $567 million, an increase of 20% over the first quarter of the prior year. Sales in the first quarter were $534 million, a 6% increase from the comparable period in 2009. Operating cash flow was a record $95 million, an increase of 88% over the prior year quarter.
Adjusted operating margin expanded 170 basis points to 19.6% and operating margin as reported expanded 160 basis points to 18.8%. During the quarter, EBITDA increased to $130 million, or 24.3% of sales. Free Cash Flow was $89 million, representing 17% of sales and 148% of net earnings.
“We are encouraged by both a 20% increase in orders and an acceleration of order growth during the quarter, putting us on track to generate record net earnings for the year,” said Brian Jellison, Roper’s Chairman, President and CEO. “In addition to the order growth, our businesses performed well in the quarter, with a consistent focus on cash and working capital management, resulting in record free cash flow. Gross margins increased to 52.3%, reflecting strong execution and growth in higher margin businesses.”
“Our Verathon acquisition performed very well in its first full quarter as part of our Scientific and Industrial Imaging segment, with continued double-digit sales growth,” continued Mr. Jellison. “During the quarter, we acquired the Heartscape product line, a technology we are enhancing to improve the speed and accuracy of detecting heart attacks. Our acquisition pipeline is exciting and we expect to complete additional acquisitions during the year.”
As a result of its strong first quarter performance and improving order trends, Roper is increasing its full year DEPS guidance to $2.95-$3.10 from $2.83-$3.03, and establishing second quarter DEPS guidance of $0.71-$0.75. The Company is also increasing its guidance for operating cash flow to $400-$425 million, up from $375-$400 million. The Company’s guidance excludes the first quarter impact of acquisition-related inventory charges and any future acquisitions.
Table 1:
| | Q1 Sales Growth | Q1 Orders Growth |
| Organic Growth | (3%) | 10% |
| Acquisitions / Divestitures | 7% | 8% |
| Foreign Currency | 2% | 2% |
| Total Sales Growth | 6% | 20% |
Table 2: Adjusted Operating Margin
| | Q1 2009 | Q1 2010 | Variance |
| Sales (A) | 505.4 | 534.4 | |
| Operating Income (B) | 86.8 | 100.7 | |
| Add: Restructuring Expenses | 3.8 | 0 | |
| Add: Acquisition-Related Inventory Charge | 0 | 3.9 | |
| Adjusted Operating Income (C) | 90.6 | 104.6 | |
| Operating Margin (B)/(A) | 17.2% | 18.8% | +160 bps |
| Adjusted Operating Margin (C)/(A) | 17.9% | 19.6% | +170 bps |
Table 3: Free Cash Flow (millions)
| | Q1 2010 |
| Operating Cash Flow | $95 |
| Less: Capital Expenditures | (6) |
| Free Cash Flow | $89 |
Conference Call to be Held at 8:30 AM (ET) Today
A conference call to discuss these results has been scheduled for 8:30 AM ET on Monday, April 26, 2010. The call can be accessed via webcast or by dialing +1 800-967-7184 (US/Canada) or +1 719-325-2100, using confirmation code 4432773. 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 4432773.
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.
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Roper Industries, Inc. and Subsidiaries
