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Roper Technologies Annual Report, Year Ended Oct 31, 2002

Filing Date
Filed January 15, 2003
Period End
October 31, 2002
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 15, 2003. Cited figures are marked; the original filing is the authoritative source.

Roper Industries, Inc. (now Roper Technologies, Inc.) reported fiscal 2002 (year ended October 31, 2002) net sales of $627.0 milliona, up 7% from $586.5 million in fiscal 2001, though the filing states sales declined 7% on a pro forma basis.

Earnings before the change in accounting principle were $66.0 millionb, or $2.08 diluted per share, compared with $55.8 million, or $1.77 diluted, in fiscal 2001. After a $26.0 million non-cash goodwill impairment charge recorded as a change in accounting principle upon adoption of SFAS 142, net earnings were $40.1 million, or $1.26 per diluted share. The company attributed the pro forma sales decline mainly to exiting Petrotech businesses, a depressed semiconductor market, and weakness in oil and gas exploration and certain industrial markets, partly offset by a 15% increase in sales to Gazprom.

Total debt was $332.1 millionc at October 31, 2002, representing 47% of total capital, and the company completed acquisitions costing $82.8 million in fiscal 2002, including Zetec, financed with borrowings. Backlog fell to $113.1 million from $115.5 million on an actual basis, and the filing notes that the prior-year backlog included a one-time Gazprom order. Management expects fiscal 2003 sales and net income to be higher than fiscal 2002, citing full-year contributions from acquired businesses and lower interest expense, while stating that semiconductor conditions remain poor and that it expects no meaningful recovery in that industry during fiscal 2003.

Risk factors highlighted in the filing include customer concentration with Gazprom, which accounted for approximately 28% of Industrial Controls segment sales, foreign exchange exposure, and asbestos-related lawsuits in which the company is a named defendant, with potential liability not determinable. The quarterly dividend was raised to $0.0875d per share from $0.0825, an increase of 6%.

02—Key points

Key Highlights

  1. Net sales rose to $627.0 million in fiscal 2002 from $586.5 million, a 7% increase, while pro forma net sales declined 7%.
  2. Earnings before the change in accounting principle increased to $66.0 million, or $2.08 diluted per share, from $55.8 million, or $1.77 diluted per share.
  3. A $26.0 million goodwill impairment charge, net of taxes, recorded as a change in accounting principle under SFAS 142 reduced net earnings to $40.1 million, or $1.26 diluted per share.
  4. Total debt was $332.1 million at October 31, 2002, or 47% of total capital, and fiscal 2002 acquisitions cost $82.8 million, mostly funded by borrowings.
  5. Gazprom was the largest single customer in Industrial Controls at approximately 28% of segment sales, and the company expects Gazprom sales in fiscal 2003 to be reduced.
  6. Management expects fiscal 2003 sales and net income to be higher than fiscal 2002, but does not expect a meaningful recovery in the semiconductor industry.
  7. The quarterly dividend was increased to $0.0875 per share from $0.0825, an increase of 6%.

03—Questions

Frequently Asked Questions

  1. How did Roper perform in fiscal 2002 compared with fiscal 2001?

    Net sales were $627.0 million, up 7% from $586.5 million, mainly due to full-year contributions from acquisitions. On a pro forma basis, sales fell 7%. Earnings before the change in accounting principle rose to $66.0 million, or $2.08 diluted per share, from $55.8 million, or $1.77 diluted per share. Net earnings were $40.1 million, or $1.26 diluted per share, after a goodwill impairment charge.

  2. Why did net earnings fall below earnings before the accounting change?

    The company adopted SFAS 142 effective November 1, 2001, and recorded a transitional goodwill impairment of $26.0 million, net of taxes of $11.1 million, reported as a change in accounting principle. The impairment related to the Redlake, Petrotech and Dynamco units.

  3. What is the company's debt position?

    Total debt was $332.1 million at October 31, 2002, or 47% of total capital, compared with $326.8 million, or 50% of total capital, a year earlier. The $275 million credit facility had $186.4 million outstanding under it and matures in May 2005. The company also had $125 million of senior notes due 2007 and 2010.

  4. What is the outlook for fiscal 2003?

    Management expects fiscal 2003 sales and net income to be higher than fiscal 2002, benefiting from full-year contributions from Zetec and other fiscal 2002 acquisitions, efficiency efforts, and lower interest expense. The company does not expect a meaningful recovery in the semiconductor industry during fiscal 2003 and cites sluggish U.S. and European economies and geopolitical risks.

  5. What are the main risks identified in the filing?

    Key risks include reduced business with Gazprom, which was about 28% of Industrial Controls sales; foreign exchange and international operations risks; acquisition integration difficulties; increased product liability and warranty exposure; and asbestos-related litigation, where the company says it cannot determine potential liability.

04—Continue

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