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Roper Technologies Annual Report, Year Ended Oct 31, 1998

Filing Date
Filed January 20, 1999
Period End
October 31, 1998
Security
ROP
In the record · 2016–202610-K1110-Q338-K114

ROP filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 114 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Deal closed8-K · Aug ’19Aug ’19
  3. Leadership change8-K · Jun ’21Jun ’21
  4. Leadership change8-K · Apr ’25Apr ’25

01—Abstract

Summary

Summary of the 10-K filed January 20, 1999. Cited figures are marked; the original filing is the authoritative source.

Roper Industries, Inc. reported record fiscal 1998 results for the year ended October 31, 1998, with net sales of $389.2 milliona, up from $298.2 million in fiscal 1997, and net earnings of $39.3 million, or $1.24 per diluted share, compared with $36.4 million, or $1.16 per diluted share, a year earlier.

Income from operations was $66.1 millionb, and the company described this as the sixth consecutive year of record sales. Growth was driven largely by acquisitions, including Flow Technology, Acton Research, Photometrics and PMC/Beta, which together represented a combined investment of $64.3 million in cash and common stock, along with higher sales to Gazprom, which totaled $41.9 million for the year. Gross margin declined to 49.1% from 51.4%, reflecting lower margins from Petrotech and Compressor Controls, an inventory write-down at Roper Scientific, and SG&A expenses rising to 32.1% of sales, which included reserves taken in the fourth quarter for receivables in Russia and the region.

The balance sheet shows total debt of $126.1 millionc at October 31, 1998, against a $200 million credit agreement, and the debt-to-total-capitalization ratio rose to 39.0% from 36.5%. Cash flow from operating activities was $76.2 million, up from $35.4 million, and the board authorized a buy-back of up to 5% of outstanding common stock, with approximately 964,000 shares repurchased for $18.0 million before year-end. The quarterly dividend was raised to $0.065 per share in November 1998.

Management's outlook expects fiscal 1999 to be a seventh consecutive year of record sales and earnings, though it notes softness in demand in the oil and gas, power generation and semiconductor capital equipment markets, and that the first-quarter earnings will be below the prior year's first quarter due to unusually high Gazprom shipments in that period. Risks highlighted include the level and timing of Gazprom and other Eastern European business, interest rate changes, and Year 2000 effects.

02—Key points

Key Highlights

  1. Net sales rose to $389.2 million in fiscal 1998 from $298.2 million, the sixth consecutive year of record sales.
  2. Net earnings were $39.3 million, or $1.24 per diluted share, versus $36.4 million, or $1.16 per diluted share, in fiscal 1997.
  3. Gross profit margin fell to 49.1% from 51.4%, and SG&A rose to 32.1% of sales from 31.0%.
  4. Four acquisitions in fiscal 1998 represented a combined investment of $64.3 million in cash and common stock.
  5. Sales to Gazprom were $41.9 million in fiscal 1998, versus $14.7 million in fiscal 1997, and Gazprom accounted for 11% of consolidated net sales.
  6. Total debt was $126.1 million at October 31, 1998, and the debt-to-total-capitalization ratio increased to 39.0% from 36.5%.
  7. The company repurchased approximately 964,000 shares for $18.0 million under an August 1998 buy-back authorization, and raised its quarterly dividend to $0.065 per share.

03—Questions

Frequently Asked Questions

  1. What drove the revenue growth in fiscal 1998?

    Growth came mainly from acquisitions, including Flow Technology, Acton Research, Photometrics and PMC/Beta, and from higher sales to Gazprom. Industrial Controls sales rose 44%, Analytical Instrumentation sales rose 39%, and Fluid Handling sales rose 6%. Core sales excluding Gazprom increased 23%.

  2. Why did gross margin decline in fiscal 1998?

    The filing attributes the decline mainly to Petrotech, which historically has lower margins, to lower margins at Compressor Controls on Gazprom business, and to a roughly 2% inventory write-down at Roper Scientific. Analytical Instrumentation's gross margin fell to 54.6% from 59.8%.

  3. How did the company's financial position change?

    Total debt rose to $126.1 million from $102.1 million, and the debt-to-total-capitalization ratio rose to 39.0% from 36.5%. Operating cash flow increased to $76.2 million from $35.4 million, and working capital declined to $82.3 million from $87.0 million.

  4. What are the main risks for fiscal 1999?

    The company cites continued business with Gazprom and other Eastern European customers, which is subject to political and economic uncertainty in Russia. It also flags softness in demand in the oil and gas, power generation and semiconductor capital equipment markets, interest rate changes, and Year 2000 effects. First-quarter fiscal 1999 earnings are expected to be below the prior year's first quarter.

  5. What did the company say about its outlook and shareholder returns?

    Management expects fiscal 1999 to be a seventh consecutive year of record sales and earnings and plans to continue an active acquisition program. The board authorized repurchase of up to 5% of outstanding common stock over twelve months, and the quarterly dividend was increased to $0.065 per share.

04—Continue

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