Roper Industries Announces Record Results for Four
Roper Industries Announces Record Results for Fourth Quarter and Full Year 2012
Sarasota, Florida, January 28, 2013 ... Roper Industries, Inc. (NYSE: ROP), a diversified growth company, reported financial results for the fourth quarter and full year ended December 31, 2012.
Roper reports results, including revenue, operating margin, net income and diluted earnings per share, on a GAAP and non-GAAP basis. The company’s guidance is provided on a non-GAAP basis. Non-GAAP measures are reconciled to the corresponding GAAP measures at the end of this release.
Fourth Quarter 2012
Fourth quarter GAAP diluted earnings per share were $1.44 and non-GAAP diluted earnings per share were $1.48. GAAP revenue increased 10% to $810 million and non-GAAP revenue, which excludes a fair value adjustment to acquired deferred revenue, was $816 million. GAAP operating margin increased 250 basis points to 27.8%, while non-GAAP operating margin was 28.3%, a 300 basis point increase over the prior year. Operating cash flow in the quarter was $212 million.
“Our businesses performed exceptionally well in the fourth quarter, as we established records for revenue, orders, gross margin, operating profit, net earnings and cash flow,” said Brian Jellison, Roper’s Chairman, President and CEO. “EBITDA reached $275 million, or 33.7% of revenue, reflecting the contribution of Sunquest and strong operating leverage on organic growth.”
Full Year 2012
“Full year performance across the enterprise was outstanding throughout the year with record levels of revenue, income and cash flow,” said Mr. Jellison. “Operating margin expansion was consistent and broad-based, as margins expanded in each of our segments in every quarter of 2012, a reflection of the strength of our business leaders and our disciplined operating model. Gross margin expanded to 56% for the year. Our consistent focus on high margin businesses, differentiated technology and nimble execution continues to deliver exceptional results.”
GAAP diluted earnings per share for the year were $4.86 and non-GAAP diluted earnings per share were $4.96. GAAP revenue was $3.0 billion, up 7% over the prior year. GAAP operating margin increased 170 basis points to 25.3%, while non-GAAP operating margin was 25.7%, a 210 basis point increase over the prior year. Operating cash flow was a record $678 million. Free cash flow increased 14% to $639 million and represented 21% of GAAP revenue.
“We invested over $1.4 billion in acquisitions during 2012, adding Sunquest as a new growth platform, as well as attractive bolt-on businesses to our existing platforms,” said Mr. Jellison. “We successfully issued $900 million in senior notes during the fourth quarter and ended the year with a strong balance sheet, including over $1.5 billion in cash and available liquidity. We continue to have an attractive pipeline of opportunities and are well positioned as we enter 2013.”
2013 Outlook and Guidance
Roper expects 2013 full year non-GAAP diluted earnings per share (DEPS) between $5.60 - $5.82 with expected first quarter non-GAAP DEPS between $1.19 and $1.23.
The company’s guidance is provided on a non-GAAP basis, which excludes the fair value adjustment to acquired deferred revenue resulting from the Sunquest acquisition. The company’s guidance excludes future acquisitions.