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Section 1: 8-K (8-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
February 2, 2018 
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)
 
ROPER TECHNOLOGIES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
 
DELAWARE
(STATE OR OTHER JURISDICTION OF INCORPORATION)

1-12273
51-0263969
 
 
 
 
(COMMISSION FILE NUMBER)
(IRS EMPLOYER IDENTIFICATION NO.)
 
 
 
 
6901 PROFESSIONAL PKWY. EAST, SUITE 200, SARASOTA, FLORIDA
34240
 
 
 
 
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(ZIP CODE)

(941) 556-2601
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
(FORMER NAME OR ADDRESS, IF CHANGED SINCE LAST REPORT)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company [ ]
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]







Item 2.02. Results of Operations and Financial Condition.

On February 2, 2018, Roper Technologies, Inc. (the "Company") issued a press release containing information about the Company's results of operations for the quarter ended December 31, 2017. A copy of the press release is furnished as Exhibit 99.1.






Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.
 99.1
 






Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
 
Roper Technologies, Inc.
 
 
 
 
 
 
 
(Registrant)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BY:
/s/ Robert Crisci
 
Date:
February 2, 2018
 
 
 
 
Robert Crisci,
Vice President and Chief Financial Officer
 
 
 
 



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Contact Information: 
Investor Relations
941-556-2601 
investor-relations@ropertech.com
392028653_a180202q4earningsrele_image1.jpg
Roper Technologies, Inc.


Roper Technologies Announces Record 2017 Financial Results

Fourth Quarter Revenue Increased 21% and Operating Cash Flow Increased 36%
Full Year Operating Cash Flow Increased to $1.23 Billion

Sarasota, Florida, February 2, 2018 ... Roper Technologies, Inc. (NYSE: ROP), a diversified technology company, reported financial results for the fourth quarter and full year ended December 31, 2017.

Roper reports results - including revenue, gross margin, operating margin, net income, and diluted earnings per share (“DEPS”) - on a GAAP basis and an adjusted basis.

Fourth Quarter 2017

Fourth quarter GAAP and adjusted revenue increased 21% to $1.23 billion, and organic revenue grew 5%. GAAP gross margin expanded 40 basis points to 62.4% and adjusted gross margin expanded 30 basis points to 62.6%.

GAAP DEPS was $4.27, and adjusted DEPS was $2.70, a 23% increase. Adjusted results exclude a one-time net gain of $215 million resulting from the Tax Cuts and Jobs Act, in addition to customary adjustments.

Adjusted EBITDA grew 21% to $441 million. Operating cash flow and free cash flow both increased 36% to $369 million and $353 million, respectively.

Full Year 2017

Full year GAAP revenue increased 22% to $4.61 billion and adjusted revenue grew 23% to $4.67 billion. GAAP gross margin expanded 70 basis points to 62.2% and adjusted gross margin expanded 90 basis points to 62.6%.

Adjusted EBITDA grew 22% to $1.60 billion. Operating cash flow grew to $1.23 billion, a 28% increase and a 23% increase on an adjusted basis.

“2017 was a remarkable year for Roper as our strategic focus on asset-light diversified technology businesses continued to drive shareholder value,’’ said Brian Jellison, Roper’s Chairman, President and CEO. “Cash flow performance across our operations was outstanding, helping us reduce debt by $1.06 billion and operate with negative working capital for the first time. Our strong organic revenue growth was enhanced by contributions from our large 2016 software acquisitions, Deltek and ConstructConnect, which exceeded our initial revenue and cash flow expectations for the year.”


1


2018 Outlook and Guidance

“The Tax Cuts and Jobs Act will provide significant benefits for Roper,” said Mr. Jellison. “The expected decrease in our effective tax rate will lead to increases in both earnings and cash flow in 2018 and beyond. Furthermore, our ability to better access our cash worldwide will enable us to accelerate investment and continue pursuing attractive acquisition opportunities from a robust pipeline.”

Roper expects full year adjusted DEPS between $10.88 and $11.20 with first quarter adjusted DEPS between $2.44 and $2.50.

The Company’s guidance excludes the impact of future acquisitions or divestitures.

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 Friday, February 2, 2018. The call can be accessed via webcast or by dialing +1 888-455-2265 (US/Canada) or +1 719-325-4747, using confirmation code 1925510. Webcast information and conference call materials will be made available in the Investors section of Roper’s website (www.ropertech.com) prior to the start of the call. The webcast can also be accessed directly by using the following URL https://event.webcast. Telephonic replays will be available for up to two weeks and can be accessed by using the following registration URL https://event.replay with access code 1925510.


Use of Non-GAAP Financial Information

The Company supplements its consolidated financial statements presented on a GAAP basis with certain non-GAAP financial information to provide investors with greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial schedules or tables. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated.



2




Table 1: Adjusted Operating Cash Flow Reconciliation ($M)
 
FY 2017
 
FY 2016
 
V%
 
GAAP Operating Cash Flow
$ 1,234
 
$ 964
 
28%
 
Cash taxes related to 2015 sale of Abel Pump
-
 
37
 
 
 
Adjusted Operating Cash Flow
$ 1,234
 
$ 1,001
 
23%
 


Table 2: Adjusted Revenue Reconciliation and Growth Detail ($M)
 
Q4 2017
 
Q4 2016
 
V %
 
GAAP Revenue
$
1,227

 
$
1,011

 
21
%
 
Purchase accounting adjustment to acquired deferred revenue
8


7


 
 
Adjusted Revenue
$
1,235

 
$
1,018

 
21
%
 
 
 
 
 
 
 
 
Components of Adjusted Revenue Growth
 
 
 
 
 
 
Organic
 
 
 
 
5
%
 
Acquisitions/Divestitures
 
 
 
 
15
%
 
Foreign Exchange
 
 
 
 
1
%
 
Total Adjusted Revenue Growth
 
 
 
 
21
%
 

 
FY 2017
 
FY 2016
 
V %
 
GAAP Revenue
$
4,607

 
$
3,790

 
22
%
 
Purchase accounting adjustment to acquired deferred revenue
57

 
15

 
 
 
Rounding
1

 
-

 
 
 
Adjusted Revenue
$
4,665

 
$
3,805

 
23
%
 
 
 
 
 
 
 
 
Components of Adjusted Revenue Growth
 
 
 
 
 
 
Organic
 
 
 
 
5
%
 
Acquisitions/Divestitures
 
 
 
 
17
%
 
Foreign Exchange
 
 
 
 
0
%
 
Rounding
 
 
 
 
1
%
 
Total Adjusted Revenue Growth
 
 
 
 
23
%
 




3




Table 3: Adjusted Gross Margin Reconciliation ($M)
 
Q4 2017
 
Q4 2016
 
V Bps
 
GAAP Revenue
$
1,227

 
$
1,011

 
 
 
Purchase accounting adjustment to acquired deferred revenue
8

 
7

 
 
 
Adjusted Revenue
$
1,235

 
$
1,018

 
 
 
 
 
 
 
 
 
 
GAAP Gross Profit
$
765

 
$
627

 
 
 
Purchase accounting adjustment to acquired deferred revenue
8

 
7

 
 
 
Adjusted Gross Profit
$
773

 
$
634

 
 
 
 
 
 
 
 
 
 
GAAP Gross Margin
62.4
%
 
62.0
%
 
+40 bps
 
Adjusted Gross Margin
62.6
%
 
62.3
%
 
+30 bps
 

 
FY 2017
 
FY 2016
 
V Bps
 
GAAP Revenue
$
4,607

 
$
3,790

 
 
 
Purchase accounting adjustment to acquired deferred revenue
57

 
15

 
 
 
Rounding
1

 
-

 
 
 
Adjusted Revenue
$
4,665

 
$
3,805

 
 
 
 
 
 
 
 
 
 
GAAP Gross Profit
$
2,865

 
$
2,332

 
 
 
Purchase accounting adjustment to acquired deferred revenue
57

 
15

 
 
 
Purchase accounting adjustment for commission expense and acquisition-related inventory step-up charge
(0)

 
0

 
 
 
Rounding
-

 
1

 
 
 
Adjusted Gross Profit
$
2,922

 
$
2,348

 
 
 
 
 
 
 
 
 
 
GAAP Gross Margin
62.2
%
 
61.5
%
 
+70 bps
 
Adjusted Gross Margin
62.6
%
 
61.7
%
 
+90 bps
 




4


Table 4: Adjusted DEPS ReconciliationA 
 
Q4 2017
 
Q4 2016
 
V %
 
GAAP DEPS
$
4.27

 
$
1.78

 
141
%
 
Purchase accounting adjustment to acquired deferred revenue
0.05

 
0.05

 
 
 
Purchase accounting adjustment for commission expense
(0.01)

 
(0.00)

 
 
 
Acquisition-related expenses deemed significant
-

 
0.04

 
 
 
Amortization of acquisition-related intangible assetsB
0.46

 
0.34

 
 
 
One-time net gain resulting from the Tax Cuts and Jobs ActC
(2.07)

 
-

 
 
 
Rounding
-

 
(0.01)

 
 
 
Adjusted DEPS
$
2.70

 
$
2.20

 
23
%
 

 
FY 2017
 
FY 2016
 
V %
 
GAAP DEPS
$
9.39

 
$
6.43

 
46
%
 
Purchase accounting adjustment to acquired deferred revenue
0.36

 
0.10

 
 
 
Purchase accounting adjustment for commission expense
(0.03)

 
(0.00)

 
 
 
Acquisition-related expenses deemed significant
-

 
0.04

 
 
 
Amortization of acquisition-related intangible assetsB
1.83

 
1.27

 
 
 
Gain on sale of divested energy product line
(0.06)

 
-

 
 
 
Impairment charge on minority investment
0.01

 
-

 
 
 
Debt extinguishment charge
-

 
0.01

 
 
 
One-time net gain resulting from the Tax Cuts and Jobs ActC
(2.08)

 
-

 
 
 
Rounding
-

 
(0.01)

 
 
 
Adjusted DEPS
$
9.42

 
$
7.84

 
20
%
 


5



Table 5A: Q4 Adjusted EBITDA Reconciliation ($M)
 
Q4 2017
 
Q4 2016
 
V% / Bps
 
GAAP Revenue
$
1,227

 
$
1,011

 
 
 
Purchase accounting adjustment to acquired deferred revenue
8

 
7

 
 
 
Adjusted Revenue
$
1,235

 
$
1,018

 
 
 
 
 
 
 
 
 
 
GAAP Net Earnings
$
444

 
$
182

 
 
 
Taxes
(140)

 
76

 
 
 
Interest expense
43

 
30

 
 
 
Depreciation
13

 
9

 
 
 
Amortization
74

 
54

 
 
 
Rounding
(1)

 
1

 
 
 
EBITDA
$
433

 
$
352

 
 
 
 
 
 
 
 
 
 
Purchase accounting adjustment to acquired deferred revenue
8

 
7

 
 
 
Purchase accounting adjustment for commission expense
(1)

 
(0)

 
 
 
Acquisition-related expenses deemed significant
-

 
6

 
 
 
Rounding
1

 
-

 
 
 
Adjusted EBITDA
$
441

 
$
365

 
21
%
 
% of Adjusted Revenue
35.7
%
 
35.9
%
 
(20) bps

 

6



Table 5B: Full Year Adjusted EBITDA Reconciliation ($M)

 
FY 2017
 
FY 2016
 
V% / Bps
 
GAAP Revenue
$
4,607

 
$
3,790

 
 
 
Purchase accounting adjustment to acquired deferred revenue
57

 
15

 
 
 
Rounding
1

 
-

 
 
 
Adjusted Revenue
$
4,665

 
$
3,805

 
 
 
 
 
 
 
 
 
 
GAAP Net Earnings
$
972

 
$
659

 
 
 
Taxes
63

 
282

 
 
 
Interest expense
181

 
112

 
 
 
Depreciation
50

 
37

 
 
 
Amortization
295

 
203

 
 
 
Rounding
(1
)
 
-

 
 
 
EBITDA
$
1,560

 
$
1,293

 
 
 
 
 
 
 
 
 
 
Purchase accounting adjustment to acquired deferred revenue
57

 
15

 
 
 
Purchase accounting adjustment for commission expense
(5
)
 
(0)

 
 
 
Acquisition-related inventory step-up charge
-

 
0

 
 
 
Acquisition-related expenses deemed significant
-

 
6

 
 
 
Gain on sale of divested Energy product line
(9
)
 
-

 
 
 
Impairment charge on minority investment
2

 
-

 
 
 
Debt extinguishment charge
-

 
1

 
 
 
Adjusted EBITDA
$
1,605

 
$
1,315

 
22
%
 
% of Adjusted Revenue
34.4
%
 
34.6
%
 
(20) bps

 


7


Table 6: Forecasted Adjusted DEPS ReconciliationA 

 
Q1 2018
 
Full Year 2018
 
 
Low End
 
High End
 
Low End
 
High End
 
GAAP DEPS
$
1.87

 
$
1.93

 
$
8.64

 
$
8.96

 
Purchase accounting adjustments to acquired deferred revenueD
0.01

 
0.01

 
0.03

 
0.03

 
Amortization of acquisition-related intangible assetsB
0.56

 
0.56

 
2.21

 
2.21

 
Adjustments to 2017 provisional income tax amounts resulting from the Tax Cuts and Jobs Act
TBD

 
TBD

 
TBD

 
TBD

 
Adjusted DEPS
$
2.44

 
$
2.50

 
$
10.88

 
$
11.20

 


8



A.
All 2017 and 2016 adjustments taxed at 35%, all 2018 adjustments taxed at 21%.

B.
Actual results and forecast of estimated amortization of acquisition-related intangible assets ($M, except per share data); for comparison purposes, prior period amounts are also shown below. Tax rate of 35% applied to amortization in 2016 and 2017, and a tax rate of 21% applied to amortization in 2018.
 
Q4 2016A
 
FY 2016A
 
Q4 2017A
 
FY 2017A
 
Q1 2018E
 
FY 2018E
Pretax
$
54

 
$
201

 
$
73

 
$
292

 
$
74

 
$
292

After-tax
$
35

 
$
131

 
$
47

 
$
190

 
$
58

 
$
231

Per share
$
0.34

 
$
1.27

 
$
0.46

 
$
1.83

 
$
0.56

 
$
2.21


C.
One-time net gain resulting from the Tax Cuts and Jobs Act ($215.4M after-tax).

D.
Forecasted acquisition-related fair value adjustments to acquired deferred revenue of Deltek and Onvia, as shown below ($M, except per share data).
 
Q1 2018E
 
FY 2018E
Pretax
$
2

 
$
5

After-tax
$
2

 
$
3

Per Share
$
0.01

 
$
0.03



9



About Roper Technologies

Roper Technologies is a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices. Roper designs and develops software (both software-as-a-service and licensed), and engineered products and solutions for healthcare, transportation, food, energy, water, education and other niche markets worldwide. Additional information about Roper is available on the Company’s website at www.ropertech.com.

The information provided in this press release 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, and the prospects for newly acquired businesses to be integrated and contribute to future growth, profit and cash flow expectations. Forward-looking statements may be indicated by words or phrases such as "anticipate," "estimate," "plans," "expects," "projects," "should," "will," "believes," "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 identify and complete acquisitions consistent with our business strategies, integrate acquisitions that have been completed, realize expected benefits and synergies from, and manage other risks associated with, the newly acquired businesses. We also face other general risks, including our ability to realize cost savings from our operating initiatives, general economic conditions and the conditions of the specific markets in which we operate, changes in foreign exchange rates, difficulties associated with exports, risks associated with our international operations, 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, 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.



10


Roper Technologies, Inc. and Subsidiaries
 
 
 
Condensed Consolidated Balance Sheets (unaudited)
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
ASSETS:
December 31, 2017
 
December 31, 2016
Cash and cash equivalents
$
671,327

 
$
757,200

Accounts receivable, net
641,662

 
619,854

Inventories, net
204,933

 
181,952

Unbilled receivables
143,634

 
129,965

Other current assets
97,846

 
87,530

Total current assets
1,759,402

 
1,776,501

 
 
 
 
Property, plant and equipment, net
142,535

 
141,318

Goodwill
8,820,313

 
8,647,142

Other intangible assets, net
3,475,218

 
3,655,843

Deferred taxes
30,726

 
30,620

Other assets
88,219

 
73,503

Total assets
$
14,316,413

 
$
14,324,927

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY:
 

 
 

Accounts payable
$
171,073

 
$
152,067

Accrued compensation
198,020

 
161,730

Deferred revenue
566,447

 
488,399

Other accrued liabilities
266,574

 
219,339

Income taxes payable
26,351

 
22,762

Current portion of long-term debt, net
800,944

 
400,975

Total current liabilities
2,029,409

 
1,445,272

 
 
 
 
Long-term debt, net of current portion
4,354,611

 
5,808,561

Deferred taxes
829,657

 
1,178,205

Other liabilities
239,172

 
104,024

Total liabilities
7,452,849

 
8,536,062

 
 
 
 
Common stock
1,044

 
1,036

Additional paid-in capital
1,602,869

 
1,489,067

Retained earnings
5,464,571

 
4,642,402

Accumulated other comprehensive loss
(186,214
)
 
(324,739
)
Treasury stock
(18,706
)
 
(18,901
)
Total stockholders' equity
6,863,564

 
5,788,865

Total liabilities and stockholders' equity
$
14,316,413

 
$
14,324,927






11


Roper Technologies, Inc. and Subsidiaries
 
 
 
 
 
Condensed Consolidated Statements of Earnings (unaudited)
 
 
 
(Amounts in thousands, except per share data)
 
 
 
 
 
 
 
 
Three months ended December 31,
 
Twelve months ended December 31,
 
 
2017
 
2016
 
2017
 
2016
Net revenues
 
$
1,226,583

 
$
1,010,800

 
$
4,607,471

 
$
3,789,925

Cost of sales
 
461,471

 
383,922

 
1,742,675

 
1,457,515

Gross profit
 
765,112

 
626,878

 
2,864,796

 
2,332,410

Selling, general and administrative expenses
 
418,129

 
337,774

 
1,654,552

 
1,277,847

Income from operations
 
346,983

 
289,104

 
1,210,244

 
1,054,563

Interest expense, net
 
43,365

 
30,483

 
180,566

 
111,559

Other income/(expense), net
 
(218
)
 
(355
)
 
5,045

 
(2,352
)
Earnings before income taxes
 
303,400

 
258,266

 
1,034,723

 
940,652

Income taxes
 
(140,472
)
 
76,185

 
62,951

 
282,007

Net earnings
 
$
443,872

 
$
182,081

 
$
971,772

 
$
658,645

 
 
 
 
 
 
 
 
 
Earnings per share:
 
 

 
 

 
 

 
 

Basic
 
$
4.33

 
$
1.79

 
$
9.51

 
$
6.50

Diluted
 
$
4.27

 
$
1.78

 
$
9.39

 
$
6.43

 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding:
 
 
 
 
 
 
 
 

Basic
 
102,395

 
101,469

 
102,168

 
101,291

Diluted
 
103,863

 
102,580

 
103,522

 
102,464


12


Roper Technologies, Inc. and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
Selected Segment Financial Data (unaudited)
 
 
 
 
 
 
 
 
 
 
(Amounts in thousands and percents of net revenues)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended December 31,
 
Twelve months ended December 31,
 
 
2017
 
2016
 
2017
 
2016
 
 
Amount
 
%
 
Amount
 
%
 
Amount
 
%
 
Amount
 
%
Net revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  RF Technology
 
$
491,438

 
 
 
$
337,728

 
 
 
$
1,862,126

 
 
 
$
1,210,264

 
 
  Medical & Scientific Imaging
 
367,711

 
 
 
351,987

 
 
 
1,410,349

 
 
 
1,362,813

 
 
  Industrial Technology
 
206,994

 
 
 
178,446

 
 
 
783,707

 
 
 
706,625

 
 
  Energy Systems & Controls
 
160,440

 
 
 
142,639

 
 
 
551,289

 
 
 
510,223

 
 
    Total
 
$
1,226,583

 
 
 
$
1,010,800

 
 
 
$
4,607,471

 
 
 
$
3,789,925

 
 
Gross profit:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  RF Technology
 
$
306,833

 
62.4
%
 
$
193,430

 
57.3
%
 
$
1,136,929

 
61.1
%
 
$
685,923

 
56.7
%
  Medical & Scientific Imaging
 
262,104

 
71.3
%
 
256,941

 
73.0
%
 
1,015,200

 
72.0
%
 
997,666

 
73.2
%
  Industrial Technology
 
102,778

 
49.7
%
 
90,683

 
50.8
%
 
396,188

 
50.6
%
 
357,362

 
50.6
%
  Energy Systems & Controls
 
93,397

 
58.2
%
 
85,824

 
60.2
%
 
316,479

 
57.4
%
 
291,459

 
57.1
%
    Total
 
$
765,112

 
62.4
%
 
$
626,878

 
62.0
%
 
$
2,864,796

 
62.2
%
 
$
2,332,410

 
61.5
%
Operating profit*:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  RF Technology
 
$
136,605

 
27.8
%
 
$
99,562

 
29.5
%
 
$
479,295

 
25.7
%
 
$
372,467

 
30.8
%
  Medical & Scientific Imaging
 
129,961

 
35.3
%
 
129,842

 
36.9
%
 
486,575

 
34.5
%
 
477,548

 
35.0
%
  Industrial Technology
 
60,901

 
29.4
%
 
51,601

 
28.9
%
 
235,018

 
30.0
%
 
202,451

 
28.7
%
  Energy Systems & Controls
 
51,709

 
32.2
%
 
45,874

 
32.2
%
 
151,163

 
27.4
%
 
129,602

 
25.4
%
    Total
 
$
379,176

 
30.9
%
 
$
326,879

 
32.3
%
 
$
1,352,051

 
29.3
%
 
$
1,182,068

 
31.2
%
Net Orders:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  RF Technology
 
$
524,670

 
 
 
$
378,587

 
 
 
$
1,929,438

 
 
 
$
1,278,246

 
 
  Medical & Scientific Imaging
 
394,015

 
 
 
384,097

 
 
 
1,448,269

 
 
 
1,399,007

 
 
  Industrial Technology
 
219,585

 
 
 
175,993

 
 
 
826,666

 
 
 
704,622

 
 
  Energy Systems & Controls
 
166,258

 
 
 
146,008

 
 
 
556,692

 
 
 
514,300

 
 
    Total
 
$
1,304,528

 
 
 
$
1,084,685

 
 
 
$
4,761,065

 
 
 
$
3,896,175

 
 

*Segment operating profit is before unallocated corporate general and administrative expenses. These expenses were $32,193 and $37,775 for the three months ended December 31, 2017 and 2016, respectively, and $141,807 and $127,505 for the twelve months ended December 30, 2017 and 2016, respectively.

13


Roper Technologies, Inc. and Subsidiaries
 
Condensed Consolidated Statements of Cash Flows (unaudited)
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
Years ended December 31,
 
 
2017
 
2016
Cash flows from operating activities:
 
 
 
 
Net earnings
 
$
971,772

 
$
658,645

Adjustments to reconcile net earnings to cash flows from operating activities:
 
 
 
 

Depreciation and amortization of property, plant and equipment
 
49,513

 
37,299

Amortization of intangible assets
 
295,452

 
203,154

Amortization of deferred financing costs
 
7,227

 
5,612

Non-cash stock compensation
 
83,075

 
78,827

Gain on sale of assets
 
(9,393
)
 

Changes in operating assets and liabilities, net of acquired businesses:
 
 
 
 

Accounts receivable
 
(6,673
)
 
(20,734
)
Unbilled receivables
 
(13,493
)
 
(1,202
)
Inventories
 
(15,363
)
 
6,353

Accounts payable and accrued liabilities
 
73,333

 
20,176

Deferred revenue
 
74,881

 
25,190

Income taxes
 
(256,971
)
 
(47,589
)
Other, net
 
(18,878
)
 
(1,946
)
Cash provided by operating activities
 
1,234,482

 
963,785

Cash flows from investing activities:
 
 

 
 

Acquisitions of businesses, net of cash acquired
 
(153,736
)
 
(3,721,758
)
Capital expenditures
 
(48,752
)
 
(37,305
)
Capitalized software expenditures
 
(10,784
)
 
(2,801
)
Proceeds from sale of assets
 
10,628

 
870

Other, net
 
(6,932
)
 
8,138

Cash used in investing activities
 
(209,576
)
 
(3,752,856
)
Cash flows from financing activities:
 
 

 
 

Proceeds from senior notes
 

 
1,200,000

Payment of senior notes
 
(400,000
)
 

Borrowings/(payments) under revolving line of credit, net
 
(660,000
)
 
1,750,000

Principal payments on convertible notes
 

 
(4,284
)
Debt issuance costs
 

 
(17,266
)
Cash dividends to stockholders
 
(142,753
)
 
(121,130
)
Treasury stock sales
 
4,198

 
3,340

Proceeds from stock based compensation, net
 
28,487

 
9,998

Redemption premium on convertible debt
 

 
(14,166
)
Other
 
51

 
(1,229
)
Cash provided by/(used in) financing activities
 
(1,170,017
)
 
2,805,263

Effect of exchange rate changes on cash
 
59,238

 
(37,503
)
Net increase/(decrease) in cash and cash equivalents
 
(85,873
)
 
(21,311
)
Cash and cash equivalents, beginning of year
 
757,200

 
778,511

Cash and cash equivalents, end of year
 
$
671,327

 
$
757,200



14
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