Roper Technologies, Inc. · NASDAQ:ROP
Roper Technologies — Q1 2021 Earnings Presentation
22 slides from Roper Technologies's earnings presentation, Apr 27, 2021
Slide 1: Q1 2021 Financial Results
A DIVERSIFIED TECHNOLOGY COMPANY Q1 2021 FINANCIAL RESULTS APRIL 27, 2021 SIMPLE IDEAS. POWERFUL RESULTS.
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 Q1 Results are Adjusted for the Following Items: (1) Acquisition-Related Intangible Amortization Expense (2) Purchase Accounting Adjustments to Acquired Deferred Revenue and Related Commissi
Slide 4: Roper Conference Call
ROPER CONFERENCE CALL • Q1 Enterprise Highlights & Financial Results • Segment Detail & Outlook • Q2 & FY 2021 Enterprise Guidance • Q&A PAGE 4
Slide 5: Q1 Summary
Q1 SUMMARY • Strong Execution Across Our Portfolio of Niche Market Businesses • Continued Improvement in End Markets Impacted by Pandemic • Accelerating Software Recurring Revenue Growth • 2020 Acquisition Cohort (Vertafore, EPSi, etc.) Performing Very Well • Revenue, EBITDA, DEPS, and Cash Flow Gre
Slide 6: Q1 Financial Highlights
Q1 FINANCIAL HIGHLIGHTS • Revenue +13%; Organic Revenue (1)% vs +4% Comp • EBITDA +20%; EBITDA Margin +220 Bps to 36.7% • DEPS +18% to $3.60 • Free Cash Flow +54%; Net Working Capital (8)% of Q1 Annualized Revenue • Reduced Debt by ~$500M; Quickly Deleveraging After Acquisitions REVENUE EBITDA FREE
Slide 7: Deleveraging Update
DELEVERAGING UPDATE EBITDA (TTM) NET DEBT NET DEBT-TO-EBITDA (TTM) +$94 $(515) $1,981 $2,075 $9,258 $8,743 4.7x 4.2x 12/31/20 3/31/21 12/31/20 3/31/21 12/31/20 3/31/21 Cash Generation Enables Rapid Debt Reduction In $ millions. Numbers may not foot due to rounding. PAGE 7 Results are presented on an
Slide 8: Segment Performance
SEGMENT PERFORMANCE
Slide 9: Application Software
APPLICATION SOFTWARE Q1 HIGHLIGHTS REVENUE EBITDA • Consistent Organic Recurring Revenue Growth +43% +66% vs PY vs PY (~75% of Segment) _____ – Strong Renewals and SaaS Adoption +2% Organic – Last Quarter of Non-Recurring Declines • Strong Results from Deltek and Lab Software – Deltek Perpetual and
Slide 10: Network Software & Systems
NETWORK SOFTWARE & SYSTEMS Q1 HIGHLIGHTS REVENUE EBITDA • Network Software +4% Organic Flat (3)% vs PY vs PY (~65% of Segment) _____ – Consistent Recurring Revenue Strength (3)% Organic – Continued DAT Network Expansion – Accelerating Growth at ConstructConnect – Improved End Market Conditions and $
Slide 11: Measurement & Analytical Solutions
MEASUREMENT & ANALYTICAL SOLUTIONS Q1 HIGHLIGHTS REVENUE EBITDA • Medical Products Businesses Seeing +4% +8% vs PY Recovering Hospital Capital Spending and vs PY Elective Procedure Volumes _____ +2% – Verathon GlideScope (Systems & Organic Consumables) and BladderScan Growth – Other Medical Products
Slide 12: Process Technologies
PROCESS TECHNOLOGIES Q1 HIGHLIGHTS REVENUE EBITDA • Improving End Market Conditions; O&G Beginning to Improve after Two Years of (8)% Declines vs PY (12)% _____ vs PY • Resumption of Previously Deferred Projects (10)% and Field Services Beginning Organic • Increasing Demand for Cornell’s Connected I
Slide 13: 2021 Guidance
2021 GUIDANCE
Slide 14: Guidance Update
GUIDANCE UPDATE • Raising Full Year 2021 Guidance – Adjusted DEPS: $14.75 - $15.00 • Previously $14.35 - $14.75 – Organic: +6 – 7% • Establishing Q2 2021 Guidance – Adjusted DEPS: $3.61 - $3.65 Guidance excludes impact of unannounced future acquisitions or divestitures. PAGE 14 Results are presented
Slide 15: Summary
SUMMARY • Great Start to 2021; Increased Outlook for Year – Double-Digit Revenue, EBITDA, DEPS, and Cash Flow Growth – EBITDA Margin +220 Bps to 36.7% – Free Cash Flow +54% to $543M – Reduced Debt by ~$500M; Rapid Deleveraging Continues • Well Positioned for Continued Double-Digit Compounding – +HSD
Slide 16: Appendix
APPENDIX
Slide 17: Q1 Income Statement Metrics
Q1 INCOME STATEMENT METRICS Q1’20 Q1’21 Revenue $1,353 $1,530 +13%; Organic (1)% Gross Profit $859 $995 Gross Margin 63.5% 65.0% +150 Bps EBITDA $467 $561 +20% EBITDA Margin 34.5% 36.7% +220 Bps Interest Expense $45 $61 Tax Rate 21.1% 21.2% Net Earnings $322 $382 DEPS $3.05 $3.60 +18% In $ millions,
Slide 18: Reconciliations I
RECONCILIATIONS I Adjusted Revenue, Gross Profit and EBITDA Reconciliation ($M) Q1 2019 Q1 2020 Q1 2021 V% FY 2020 Q1 TTM Adjusted Revenue Reconciliation GAAP Revenue $ 1,287 $ 1,351 $ 1,529 13% $ 5,527 $ 5,705 Purchase accounting adjustment to acquired deferred A revenue 1 2 1 12 10 Adjusted Revenu
Slide 19: Reconciliations II
RECONCILIATIONS II Adjusted Revenue Growth Reconciliation Network Measurement Q1 2021 Application Software & & Analytical Process Software Systems Solutions Technologies Roper Organic 2% (3%) 2% (10%) (1%) Acquisitions/Divestitures 39% 2% - - 12% Foreign Exchange 1% 1% 2% 2% 1% Rounding 1% - - - 1%
Slide 20: Reconciliations III
RECONCILIATIONS III Adjusted Net Earnings Reconciliation ($M) B Q1 2020 Q1 2021 V% GAAP Net Earnings $ 240 $ 289 20% Purchase accounting adjustment to acquired deferred revenue and commission expense A 2 - C Amortization of acquisition-related intangible assets 79 115 Gain on sale related to minorit
Slide 21: Footnotes
FOOTNOTES A. 2021 actual results and forecast of estimated acquisition-related fair value adjustments to deferred revenue and commission expense related to the acquisition of Vertafore as shown below ($M except per share data). Q1 2020A Q1 2021A Q2 2021E FY 2021E Pretax $ 2 $ - $ (1) $ (5) After-tax
Slide 22: A Diversified Technology Company
A DIVERSIFIED TECHNOLOGY COMPANY