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Roper Technologies Annual Report, Year Ended Dec 31, 2010

Filing Date
Filed February 25, 2011
Period End
December 31, 2010
Security
ROP
One revenue dollarkept$0.14
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 February 25, 2011. Cited figures are marked; the original filing is the authoritative source.

Roper Industries, Inc. (ROP) reported record 2010 results as a diversified growth company that designs, manufactures and distributes medical and scientific imaging products and software, energy systems and controls, industrial technology products and radio frequency (RF) products and services.

Net sales rose to $2,386.1 milliona in 2010 from $2,049.7 million in 2009, an increase of 16.4%, with internal sales growth of 7.8% plus contributions from acquisitions. Net earnings were $322.6 million, or $3.34 per diluted share, compared with $239.5 million, or $2.58 per diluted share, in 2009. Gross profit margin improved to 53.4% from 50.9%, and income from operations reached $514.3 million.

The company grew its order book sharply, with total orders of $2,536.2 millionb, up 25.3%, and backlog of $785.4 million at December 31, 2010, up 38.9%. Growth was driven largely by acquisitions, including iTradeNetwork ($523 million gross purchase price) and Heartscape, and by a broad recovery in industrial and medical end markets. Operating cash flow was $499.5 million, and capital expenditures were $28.6 million.

Acquisitions consumed $536.4 millionc of cash in investing activities. Total debt was $1.34 billion at year-end, against $5.07 billion of total assets, with goodwill of $2.73 billion representing 54% of total assets. Stockholders' equity was $2.75 billion.

The company disclosed that its quarterly dividend was raised to $0.110d per share from $0.095, and it was in compliance with all debt covenants. Investors should weigh the company's dependence on acquisitions for growth and the substantial goodwill and intangible asset balance, which the filing notes could be subject to material write-offs if performance declines.

02—Key points

Key Highlights

  1. Net sales of $2.39 billion in 2010, up 16.4% from $2.05 billion in 2009; internal sales growth was 7.8%
  2. Net earnings of $322.6 million, or $3.34 diluted EPS, versus $239.5 million, or $2.58 diluted EPS, in 2009
  3. Gross profit percentage rose to 53.4% from 50.9%; income from operations was $514.3 million
  4. Total orders of $2.54 billion, up 25.3%, and backlog of $785.4 million at December 31, 2010, up 38.9%
  5. Operating cash flow of $499.5 million; acquisitions used $536.4 million of cash
  6. Total debt of $1.34 billion; goodwill of $2.73 billion equal to 54% of total assets of $5.07 billion
  7. Quarterly dividend increased to $0.110 per share from $0.095 per share, payable January 28, 2011

03—One dollar

Follow one dollar

Of each $1.00 of revenue in FY2010, Roper Technologies kept $0.14.

  1. Revenue$2.39B100.0%
  2. Cost of revenue−$1.11B46.6%
  3. Gross profit$1.28B53.4%
  4. Operating costs−$760.8M31.9%
  5. Operating income$514.3M21.6%
  6. Interest, other & tax−$191.7M8.0%
  7. Net income$322.6M13.5%
Computed from 10-KFY2010filed February 25, 2011Computed from this filing’s revenue, gross profit, operating income and net income · right columngrey figure: share of revenue

04—Financials

Financial Highlights

Figures from 10-KFY2010filed February 25, 2011
Revenue$2.39B53.4% Gross MarginNet Income$322.58M13.5% Net MarginEPS (Diluted)$3.34Total Assets$5.07BCash & Equivalents$270.39MFree Cash Flow$499.54M

Financial Statements

FY2010 against FY2009

Line itemFY2010FY2009Change
Revenue$2.39B$2.05B+16.4%
Cost of Revenue$1.11B$1.01B+10.4%
Gross Profit$1.28B$1.04B+22.2%
R&D Expenses$102.40M$83.40M+22.8%
SG&A Expenses$760.83M$647.74M+17.5%
Operating Income$514.29M$395.40M+30.1%
Interest Expense$66.53M$58.54M+13.6%
Net Income$322.58M$239.48M+34.7%
EPS (Basic)$3.42$2.64+29.5%
EPS (Diluted)$3.34$2.58+29.5%
Shares Outstanding (Basic)94.24M90.69M+3.9%
Shares Outstanding (Diluted)96.65M92.82M+4.1%

05—Questions

Frequently Asked Questions

  1. What drove revenue growth in 2010?

    Net sales grew 16.4% to $2.39 billion, with internal sales growth of 7.8% and about $179 million from 2009 acquisitions (UTS, Verathon and five months of iTrade). Medical and Scientific Imaging sales rose 54.7%, while Energy Systems and Controls rose 14.3% and Industrial Technology rose 13.3% on broad end-market recovery.

  2. How much debt does the company carry and how is it structured?

    Total debt was $1.34 billion at December 31, 2010. It consisted of $1.0 billion of senior notes (6.25% due 2019 and 6.625% due 2013, the latter swapped to variable rate), $91 million of 3.75% convertible notes due 2034, and $230 million drawn on a $750 million revolver with $468 million undrawn availability.

  3. What are the main risks highlighted in the filing?

    Key risks include indebtedness limiting operating flexibility, foreign exchange exposure (about 25% of sales from non-dollar functional currencies), reliance on acquisitions and their integration, cyclical end markets, intense competition, and a goodwill and intangible asset balance that could require write-offs if performance declines.

  4. Is the dividend growing?

    Yes. In November 2010 the Board increased the quarterly dividend to $0.110 per share from $0.095, an increase of 15.8%. Dividends declared for 2010 totaled $0.3950 per share, up from $0.3425 in 2009.

06—Continue

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