Roper Technologies, Inc. · NASDAQ:ROP
Roper Technologies — Q1 2017 Earnings Presentation
22 slides from Roper Technologies's earnings presentation, Apr 28, 2017
Slide 1: Q1 2017 Financial Results
A Diversified Technology Company Q1 2017 Financial Results April 28, 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 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 Results Primarily on an Adjusted (Non-GAAP) Basis. The Q1 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 » Q1 2017 Enterprise Financial Results A Diversified Growth Company » Segment Detail & Outlook » Q2Click to edit and FY 2017 Master title style Guidance » Q&A 4
Slide 5: Q1 2017 Enterprise Highlights
Q1 2017 Enterprise Highlights » Record Q1 Results: Revenue, Net Earnings, EBITDA, Cash Flow » Revenue: +22% to $1,108M; Organic +5% – Broad-Based Growth Across All Four Segments – Industrial and Energy End Markets Improving » DEPS + 17% to $2.11 » EBITDA +18% to $362M » Operating Cash Flow +55% to $
Slide 6: Q1 Income Statement Metrics
Q1 Income Statement Metrics (in $ millions, except Adjusted DEPS) Q1’16 Q1’17 Revenue $906 $1,108 +22%. Organic +5% A Diversified Growth Company Gross Profit $563 $689 +22% Gross Margin 62.1% 62.2% EBITDA Click to edit $307 Master $362title style +18% EBITDA Margin 34.0% 32.7% Interest Expense $27 $
Slide 7: Compounding Cash Flow
Compounding Cash Flow (in $ millions) TTM Operating Cash Flow » Q1 Operating Cash Flow: $378M $1,135 – Exceptional Start to the Year $913 $888 » Q1 Free Cash Flow: $360M » Reduced Debt by $370M in Quarter – Debt to EBITDA: 3.7x (per Credit Facility Definition) Q1 2015 Q1 2016* Q1 2017 Free Cash Flow
Slide 8: Asset-Light Business Model
Asset-Light Business Model Working Capital* as % of Q1 Annualized Net Sales 03/31/15 03/31/16 03/31/17 (I) Inventory 5.7% 5.5% 4.4% (860 Bps) 5.7% (R) Receivables 17.3% 17.4% 16.0% 4.8% (P) Payables & 11.3% 10.6% 11.5% Accruals (D) Deferred 5.9% 7.5% 11.8% Revenue Total (I+R-P-D) 5.7% 4.8% (2.9)% (2
Slide 9: Segment Detail & Outlook
Segment Detail & Outlook 9
Slide 10: Energy Systems / Industrial Technology
Energy Systems / Industrial Technology Energy Systems and Controls Energy Segment Q1 Highlights » Organic Revenue +7% Q1’17 V to PY (in $ millions) » Oil & Gas Markets Improved Revenue $125 A Diversified +5% Growth– Company Mid Single Digit Growth with Excellent Op Profit $30 +25% Operating Leverage
Slide 11: Medical & Scientific Imaging
Medical & Scientific Imaging Medical & Scientific Imaging Q1 2017 » Organic Revenue +5% (in $ millions) Q1’17 V to PY » All Medical Groups Grew Mid Single Digits: Revenue $348 +4% A Diversified Growth Company – Acute Care Software Growth From Decision Op Profit $120 +4% Support SaaS, Diagnostic Conn
Slide 12: RF Technology & Software
RF Technology & Software RF Technology & Software Q1 2017 » Total Revenue +60%, Organic Revenue +4% Q1’17 V to PY (in $ millions) » Strong Earnings and Cash Flow Contributions from Revenue $451 +60%A DiversifiedDeltek Growth Company and ConstructConnect; Both Businesses Off to Op Profit $109 +20% a
Slide 13: Guidance Update
Guidance Update 13
Slide 14: Guidance Update
Guidance Update » Raising Full Year 2017 Guidance: A Diversified Growth Company – Adjusted DEPS: $8.98 - $9.28 • Previously: $8.82 - $9.22 Click to edit Master title style – Revenue: +21 - 22%, Organic: +4 - 5% » FY 2017 Operating Cash Flow: ~$1.15B » Establishing Q2 2017 Guidance: – Adjusted DEPS:
Slide 15: Q1 2017 Summary
Q1 2017 Summary » Record Q1 Results: Revenue, Net Earnings, EBITDA, Cash Flow » Broad-Based Organic Growth Across All Four Segments » Software and Medical Businesses Remain Strong: Industrial and Energy Markets Improving » DEPS + 17% to $2.11 » EBITDA +18% to $362M » Operating Cash Flow +55% to $378
Slide 16: Q1 2017 Summary (Continued)
Q1 2017 Summary (Continued) » Benefiting from 2015 - 2016 Transformation of the Enterprise » 50% of EBITDA from Software and Network Businesses » Deferred Revenue Increasing our Ability to Compound Cash Flow » Net Working Capital Now in Negative Territory » Cash Return on Investment Rapidly Improvin
Slide 17: Appendix
Appendix 17
Slide 18: Reconciliations I
Reconciliations I Revenue Detail Energy Medical & A Diversified Industrial Systems & Growth Scientific Company RF Q1 2017 Revenue Growth Technology Controls Imaging Technology Roper Organic Growth 8% 7% 5% 4% 5% Acquisitions/Divestitures - - - 57% 18% Rounding Click to edit Master title style Foreig
Slide 19: Reconciliations II
Reconciliations II (in $ thousands) Q1 2017 Industrial Energy Systems Medical and Scientific Margin Reconciliation RF Technology Technology and Controls Imaging GAAP Revenue $183,404 $125,047 $348,235 $429,619 Add: CliniSys A Diversified 0 Growth Company 0 49 0 Add: Construct Connect / Deltek 0 0 0
Slide 20: Reconciliations III
Reconciliations III (in $ thousands) Q1 2016 Industrial Energy Systems & Medical & Scientific Margin Reconciliation Technology Controls Imaging RF Technology A Diversified Growth Company GAAP Revenue $171,235 $118,764 $332,214 $280,210 Add: DI / SWI / Strata / Atlas / CliniSys / PCI Adj 0 0 1,124 0
Slide 21: Reconciliations IV
Reconciliations IV Cash Flow Reconciliation (in $ thousands) Q1 2016 Q1 2017 TTM Q1 2015 TTM Q1 2016 TTM Q1 2017 Operating Cash Flow $207,072 $378,217 $888,212 $875,498 $1,134,932 A Diversified Growth Company Cash Paid for Taxes on Sale of ABEL 37,429 - - 37,429 - Adjusted Operating Cash Flow 244,50
Slide 22: A Diversified Technology Company
A Diversified Technology Company