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Roper Technologies 8-K Report, Financial Results (Apr 26, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 26, 2024
Period End
April 26, 2024
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. Deal closed8-K · Jan ’17Jan ’17
  2. Deal closed8-K · Sep ’20Sep ’20
  3. Leadership change8-K · Jan ’23Jan ’23
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed April 26, 2024. Cited figures are marked; the original filing is the authoritative source.

Roper Technologies, Inc. (Nasdaq: ROP) reported first quarter 2024 results for the quarter ended March 31, 2024, in a press release furnished as Exhibit 99.1 to this Form 8-K.

Revenue increased 14% to $1.68 billiona, including 8% organic growth. GAAP net earnings increased 34% to $382 million, GAAP diluted EPS (DEPS) increased 33% to $3.54, and adjusted DEPS increased 13% to $4.41. Adjusted EBITDA increased 16% to $676 million, and operating cash flow increased 14% to $531 million.

The company stated a 31% free cash flow margin. Results include a $57.0 millionb equity investment gain tied to its minority stakes in Indicor and Certinia, which the company excludes from adjusted results. Roper raised its full-year 2024 adjusted DEPS guidance to $18.05 to $18.25, up from the prior $17.85 to $18.15 range, and guided second-quarter 2024 adjusted DEPS to $4.42 to $4.46.

Management cited strong first-quarter results, continued customer demand for mission-critical solutions, and growth in its recurring revenue base. The company completed its acquisition of Procare during the quarter, with acquisitions of businesses totaling $1,858.7 millionc in cash outflows. Guidance excludes unannounced future acquisitions or divestitures.

Balance sheet changes were significant. Long-term debt, net of current portion, rose to $7,222.3 milliond from $5,830.6 million at December 31, 2023, reflecting $1,390.0 million in net revolving line of credit borrowings.

Goodwill increased to $18,310.8 million and other intangible assets to $8,830.9 million, while cash and cash equivalents declined to $198.4 million. Management stated it has significant M&A capacity and a robust acquisition pipeline.

02—Key points

Key Highlights

  1. Revenue rose 14% to $1.68 billion (8% organic), with acquisitions contributing 6 percentage points of growth.
  2. GAAP net earnings increased 34% to $382 million; GAAP DEPS increased 33% to $3.54.
  3. Adjusted EBITDA increased 16% to $676 million, with adjusted EBITDA margin of 40.2% of revenue.
  4. Adjusted DEPS increased 13% to $4.41, and free cash flow increased 15% to $513 million.
  5. Full-year 2024 adjusted DEPS guidance raised to $18.05 to $18.25 from $17.85 to $18.15; Q2 2024 guidance of $4.42 to $4.46.
  6. Long-term debt rose to $7,222.3 million from $5,830.6 million, including $1,390.0 million in net revolver borrowings, while the company completed the Procare acquisition.
  7. Results include a $57.0 million equity investment gain from minority stakes in Indicor and Certinia, which are excluded from non-GAAP results going forward.

03—Questions

Frequently Asked Questions

  1. How did Roper perform in the first quarter of 2024?

    Revenue increased 14% to $1.68 billion, with 8% organic growth. GAAP net earnings rose 34% to $382 million, and adjusted EBITDA rose 16% to $676 million. Operating cash flow increased 14% to $531 million.

  2. Did Roper change its full-year 2024 outlook?

    Yes. The company increased full-year 2024 adjusted DEPS guidance to $18.05 to $18.25, from $17.85 to $18.15. It also guided second-quarter 2024 adjusted DEPS to $4.42 to $4.46. Guidance excludes unannounced future acquisitions or divestitures.

  3. Why do GAAP and adjusted EPS differ so much this quarter?

    GAAP DEPS was $3.54 versus adjusted DEPS of $4.41. The difference reflects amortization of acquisition-related intangible assets ($1.31 per share) and a $0.45 per share benefit from financial impacts of minority investments in Indicor and Certinia, which were a $57.0 million pretax gain. Adjusted DEPS removes these items.

  4. How did Roper's balance sheet and capital deployment change?

    Long-term debt, net of current portion, increased to $7,222.3 million from $5,830.6 million, including $1,390.0 million in net revolver borrowings. Acquisitions of businesses used $1,858.7 million in cash, and the company completed its Procare acquisition during the quarter. Cash and cash equivalents fell to $198.4 million.

04—Continue

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