Roper Technologies, Inc. · NASDAQ:ROP
Roper Technologies — Q1 2015 Earnings Presentation
26 slides from Roper Technologies's earnings presentation, Apr 27, 2015
Slide 1: Q1 2015 Financial Results
Roper Technologies, Inc. Q1 2015 Financial Results April 27, 2015
Slide 2: Safe Harbor Statement
Safe Harbor Statement The information provided in this presentation 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
Slide 3: Reg. G Disclosure
Reg. G Disclosure Today’s Conference Call will Discuss Income Statement Results Primarily on an Adjusted (Non-GAAP) Basis. The Q1 2015 Adjusted Results Exclude the Following Items: A Diversified Growth Company (1) Purchase Accounting Adjustment to Acquired Deferred Click to edit Master title style R
Slide 4: Q1 Enterprise Results
Q1 Enterprise Results 4
Slide 5: Roper Technologies, Inc.
Roper Technologies, Inc. » Name Changed to Roper Technologies, Inc. Effective April 24, 2015 A Diversified Growth Company » Stock Ticker Remains NYSE : ROP Click » Expect to edit to Begin TradingMaster title style as Roper Technologies, Inc. on April 29, 2015 » New Website Address: www.ropertech.com
Slide 6: Q1 2015 Enterprise Financial Results
Q1 2015 Enterprise Financial Results » Achieved Record First Quarter Results • Orders, Revenue, Net Earnings, EBITDA, Cash Flow » Organic Revenue +5% • Growth Led by Medical and RF Technology Segments • FX Headwind: (3%) » Gross Margin +140 Bps to 60.0% » Operating Margin +190 Bps to 28.7% » Net Ear
Slide 7: Q1 Income Statement
Q1 Income Statement In $ Millions Note: Amounts may not total due to rounding Q1’14 Q1’15 Orders $846 $849 Book-to-Bill: 0.98x Revenue A Diversified$834 Growth Company $867 Organic +5%, FX (3%) Gross Profit $489 $520 Gross Margin 58.6% 60.0% +140 Bps Click to edit Master Operating Income $223 title
Slide 8: Compounding Cash Flow
Compounding Cash Flow In $ Millions Q1 Operating Cash Flow » Q1 Operating Cash Flow: $260M • 22% Increase $260 » Q1 Free Cash Flow: $250M $213 • 24% Increase $171 • 161% Conversion » TTM Free Cash Flow: $851M • 24% of Revenue • 130% Conversion 2013 2014 2015 Note: Free Cash Flow = Operating Cash Flo
Slide 9: Asset-Light Business Model
Asset-Light Business Model Working Capital* as % of Q1 Annualized Net Sales 03/31/13 03/31/14 03/31/15 (270 Bps) (I) Inventory 6.8% 6.3% 5.7% 7.7% 6.3% (R) Receivables 19.3% 18.3% 17.3% 5.0% (P) Payables & 18.4% 18.2% 18.0% Accruals Total (I+R-P) 7.7% 6.3% 5.0% 2013 2014 2015 Note: Percentages may n
Slide 10: Strong Financial Position
Strong Financial Position In $ Millions 03/31/14 03/31/15 Cash $503 $615 Undrawn Revolver $1,400 $1,085 Cash and Undrawn Revolver $1,903 $1,700 Gross Debt $2,315 $2,625 Shareholders’ Equity $4,357 $4,807 Gross Debt to Capitalization 34.7% 35.3% TTM EBITDA $1,118 $1,223 Gross Debt-to-EBITDA (TTM) 2.1
Slide 11: Segment Detail & Outlook
Segment Detail & Outlook 11
Slide 12: Q1 2015 Segment Performance
Q1 2015 Segment Performance In $ Millions $293 $243 $191 Revenue $140 $135 EBITDA* $87 $63 $36 Energy Ind Tech RF Medical * Excludes Corporate Expenses Medical and RF Segments Represented 69% of Q1 EBITDA* Results are presented on an Adjusted (Non-GAAP) basis. See appendix of this presentation for r
Slide 13: Energy Systems & Controls
Energy Systems & Controls Q1 2015 • Organic Revenue (5%); FX (5%) ($M) Q1’15 V to PY • Oil & Gas Markets Weak as Expected A Diversified Growth Company Revenue $140 (10)% – Upstream Businesses Down Double Digits – Large Projects Remained Slow Op Profit $30 (18)% – Cost Actions Taken OP Margin Click t
Slide 14: Industrial Technology
Industrial Technology Q1 2015 ($M) Q1’15 V to PY • Organic Revenue +1%; FX (4%) • Share Gains at Roper Pump Drove Double Digit Revenue $191 A (3)% DiversifiedGrowth Growth Company Despite Declining Upstream Market • Neptune Toronto Projection Nears Successful Op Profit $58 +3% Completion • Growth at
Slide 15: RF Technology
RF Technology Q1 2015 • Organic Revenue +11%, FX (1%), Acq./Div. (2%) ($M) Q1’15 V to PY • Strong Growth in Toll and Traffic A Diversified Growth Company – Multiple Infinity Digital Lane SystemTM Revenue $243 +8% Projects Continue In Florida and Texas Op Profit $74 +19% – Significant Tag Shipments B
Slide 16: Medical Solutions
Medical Solutions Q1 2015 • Organic Revenue +7%, FX (3%), ($M) Q1’15 V to PY • MHA Double Digit Growth Driven by Market Conditions andGrowth A Diversified New Customer CompanyAdditions Revenue $293 +15% • Double Digit Growth at Verathon on New Product Op Profit $109 +22% Introductions and Strong Cha
Slide 17: Healthcare IT – 1st Quarter Acquisitions
Healthcare IT – 1st Quarter Acquisitions • SaaS Financial Analytics and Performance Platform for Hospitals • Enterprise-wide Solutions for Financial Planning, Decision Support and Continuous Cost Improvement A Diversified Growth Company • 1 Out of Every 5 U.S. Hospitals Uses One or More of Strata’s
Slide 18: Guidance Update
Guidance Update 18
Slide 19: Q2 and 2015 Guidance
Q2 and 2015 Guidance » Raising Full Year Adjusted DEPS: $6.75 – $6.95 • Previously $6.70 - $6.94 A Diversified Growth Company • Assumes End of March FX Rates: Full Year DEPS Headwind: ~ ($0.25) • Tax Rate: 30% to 31% Click • to edit Master title style Organic Revenue Growth: 3 - 5% » Raising Full Ye
Slide 20: Q1 2015 Summary
Q1 2015 Summary » Record First Quarter Results • Orders, Revenue, Net Earnings, EBITDA, Cash Flow » Organic Revenue +5% • Growth Led by Medical and RF Technology Segments » Operating Margin +190 Bps to 28.7% » DEPS $1.55 » Free Cash Flow +24% to $250M » Deployed $590M on 3 Acquisitions; Pipeline Rem
Slide 21: Appendix
Appendix 21
Slide 22: Reconciliations I
Reconciliations I Energy Medical & Q1 2015 Revenue Growth Industrial RF Systems & Scientific Roper Reconciliation Technology Technology Controls Imaging Organic Growth 1% (5)% 7% 11% 5% Acquisitions/Divestitures - A Diversified - Growth 10% Company (2)% 3% Foreign Exchange (4)% (5)% (3)% (1)% (3)% R
Slide 23: Reconciliations II
Reconciliations II (in Thousands) Q1 2015 Industrial Energy Systems & Medical & Scientific Margin Reconciliation RF Technology Technology Controls Imaging GAAP Revenue $190,728 $139,899 $291,700 $242,954 Add: DI / SHP / SoftWriters / Strata A Diversified Growth Company Purchase Accounting Adjustment
Slide 24: Reconciliations III
Reconciliations III Q1’15 TTM Reconciliation of GAAP to Adjusted; Revenue, Gross Profit, and EBITDA Adjustments Data SHP FoodLink SoftWriters Strata IPA Innovations Purchase Purchase Purchase Purchase Q1’15 TTM A Diversified Growth Company Accounting Acquisition Related Accounting Purchase Accountin
Slide 25: Reconciliations IV
Reconciliations IV Q1’14 TTM Reconciliation of GAAP to Adjusted; Revenue, Gross Profit, and EBITDA Adjustments MHA Purchase Sunquest Fair Accounting Vendor-Supplied Q1’14 TTM Value Adjustment Q1’14 TTM GAAP A Diversified Growth Company to Acquired Adjustment for Acquired Revenue Component Quality Is
Slide 26: Roper Technologies, Inc.
Roper Technologies, Inc.