Roper Technologies, Inc. · NASDAQ:ROP
Roper Technologies — Q2 2017 Earnings Presentation
21 slides from Roper Technologies's earnings presentation, Jul 31, 2017
Slide 1: Q2 2017 Financial Results
A Diversified Technology Company Q2 2017 Financial Results July 31, 2017
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 may include, among others, statements regarding operating results, the success of our internal operating plans,
Slide 3: Reg. G Disclosure
Reg. G Disclosure Today’s Conference Call Will Discuss Results Primarily on an Adjusted (Non-GAAP) Basis. The Q2 2017 Results are Adjusted for the Following Items: A Diversified Growth Company (1) Purchase Accounting Adjustment to Acquired Deferred Revenue Click to edit Master title style and Relate
Slide 4: Roper Conference Call
Roper Conference Call » Q2 2017 Enterprise Financial Results A Diversified Growth Company » Segment Detail & Outlook » Q3Click to edit and FY 2017 Master title style Guidance » Q&A 4
Slide 5: Q2 2017 Enterprise Highlights
Q2 2017 Enterprise Highlights » Record Q2 Results: Revenue, Net Earnings, EBITDA, Cash Flow – Asset-Light, Niche Market Strategy Continues to Drive Outstanding Performance » Revenue: +23% to $1,151M; Organic +6% – Broad-Based Growth Across All Four Reporting Segments – Recent Acquisitions, Deltek an
Slide 6: Q2 Income Statement Metrics
Q2 Income Statement Metrics (in $ millions, except Adjusted DEPS) Q2’16 Q2’17 Revenue $934 $1,151 +23%, Organic +6% A Diversified Growth Company Gross Profit $570 $722 +27% Gross Margin 61.0% 62.7% +170 bps EBITDA Click to edit $314 Master $394title style +26% EBITDA Margin 33.6% 34.3% +70 bps Inter
Slide 7: Compounding Cash Flow
Compounding Cash Flow YTD Operating Cash Flow (in $ millions) » YTD Operating Cash Flow: $550M – +33% vs Prior Year $550 +33% » YTD Free Cash Flow: $520M – 23% of Revenue $414 » Reduced Debt by $570M in 1st Half – Deleveraging Rapidly 06/30/16* 6/30/2017 Free Cash Flow = Operating Cash Flow less Cap
Slide 8: Asset-Light Business Model
Asset-Light Business Model Working Capital* as % of Q2 Annualized Net Sales 06/30/15 06/30/16 06/30/17 (I) Inventory 5.5% 5.1% 4.4% (710) Bps 4.7% (R) Receivables 16.6% 16.9% 15.9% 3.9% (P) Payables & 10.8% 10.6% 11.3% Accruals (D) Deferred 6.6% 7.5% 11.4% Revenue Total (I+R-P-D) 4.7% 3.9% (2.4)% (2
Slide 9: Segment Detail & Outlook
Segment Detail & Outlook 9
Slide 10: RF Technology & Software
RF Technology & Software Q2 Highlights Q2’17 V to PY (in $ millions) » Total Revenue +64%, Organic +6%, FX (1)% Revenue $477 +64% » Strong Performance from Recent Acquisitions Growth Company A Diversified Op Profit $134 +47% – Deltek Led by GovCon Growth; Launched Core: +100 bps New Software Targeti
Slide 11: Medical & Scientific Imaging
Medical & Scientific Imaging Q2 Highlights Q2’17 V to PY (in $ millions) » Organic Revenue +4%, FX (1)% Revenue $351 +3% » Medical Organic Growth +5% A (85% of Segment) Growth Company Diversified Op Profit $121 +6% – Broad-Based Medical Products Growth OP Margin 34.6% +90 bps Led by Northern Digital
Slide 12: Industrial Technology / Energy Systems
Industrial Technology / Energy Systems Industrial Segment Q2 Highlights Industrial Technology » Organic Revenue +9%, FX (1)% (in $ millions) Q2’17 V to PY » Neptune and Struers Remained Strong A Diversified Growth Company Revenue $193 +8% » Fluid Handling Growth From Share Gains and Better Upstream
Slide 13: Guidance Update
Guidance Update 13
Slide 14: Guidance Update
Guidance Update » Raising Full Year 2017 Guidance – Adjusted DEPS: $9.12 - $9.30 A Diversified Growth Company • Previously: $8.98 - $9.28 – Revenue: +22%, Organic: +5% » FYClick to Cash 2017 Operating edit Master Flow: > $1.15B title style » Establishing Q3 2017 Guidance – Adjusted DEPS: $2.24 - $2.
Slide 15: Q2 2017 Summary
Q2 2017 Summary » Record Q2 Results: Revenue, Net Earnings, EBITDA, Cash Flow – Asset-Light, Niche Market Strategy Continues to Drive Outstanding Performance – Cash Return on Investment Continues to Improve – 50% of EBITDA from Software and Network Businesses » Broad-Based Organic Growth Across All
Slide 16: Appendix
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Slide 17: Reconciliations I
Reconciliations I Revenue Detail Energy Medical & A Diversified Industrial Systems & Growth Scientific Company RF Q2 2017 Revenue Growth Technology Controls Imaging Technology Roper Organic Growth 9% 7% 4% 6% 6% Acquisitions/Divestitures - 0% - 59% 18% Click to edit Master title style Foreign Exchan
Slide 18: Reconciliations II
Reconciliations II (in $ thousands) Q2 2017 Margin Reconciliation Industrial Energy Systems Medical & Technology & Controls Scientific Imaging RF Technology GAAP Revenue $192,867 $130,543 $350,764 $460,497 Add: Construct Connect / Deltek A Diversified Growth 0 Company 0 0 16,168 Adjusted Revenue 192
Slide 19: Reconciliations III
Reconciliations III (in $ thousands) Q2 2016 Margin Reconciliation Industrial Energy Systems Medical & Technology & Controls Scientific Imaging RF Technology GAAP Revenue $178,627 $123,585 $340,585 $288,761 A Diversified Growth Company Add: Atlas / CliniSys / PCI Adj 0 0 288 0 Add: On Center / Adera
Slide 20: Reconciliations IV
Reconciliations IV Cash Flow Reconciliation (in $ thousands) YTD 2016 YTD 2017 Operating Cash Flow $376,832 $550,092 A Diversified Growth Company Cash Paid for Taxes on Sale of ABEL 37,429 - Adjusted Operating Cash Flow 414,261 550,092 Capital Expenditures (18,348) (24,797) Click to edit Master titl
Slide 21: A Diversified Technology Company
A Diversified Technology Company