Business News
Roper Industries Announces Record Results for 2007 Fourth Quarter and Full Year
Friday 22. February 2008 - Full Year Diluted Earnings Per Share of $2.68; Sales up 24% to $2.1 Billion; Net Earnings up 29% to $250 Million; Operating Cash Flow Increases 31% to $344 Million
Roper Industries, Inc. (NYSE:ROP) reported record financial results for the fourth quarter and full year ended December 31, 2007.
Fourth Quarter 2007
Fourth quarter diluted earnings per share (DEPS) were $0.77, up 24% from the comparable period in the prior year. Fourth quarter net earnings increased 27% to $72 million, and net sales were $560 million, an increase of 20% from the comparable period in the prior year. Excluding acquisitions, fourth quarter sales increased 14%, including a 3% benefit from foreign exchange. Operating cash flow of $117 million in the quarter established a record for any quarter in the company’s history.
Operating profit for the fourth quarter increased 27% to $124 million, or 22.1% of net sales, up 120 basis points from the comparable period in the prior year. EBITDA in the fourth quarter increased 23% to $146 million, and represented 26.1% of net sales.
Full Year 2007
For the full year, DEPS were $2.68. Net earnings were $250 million, representing 11.9% of net sales of $2.1 billion. Excluding acquisitions, sales increased 14% for the full year, including a 2% benefit from foreign exchange. Full year operating profit was $438 million, up 30% from 2006, and operating margins expanded 100 basis points to 20.9% of net sales. Operating cash flow was $344 million, an increase of 31% from 2006.
“We are delighted that Roper once again achieved record performance in 2007 with the highest sales, orders, net earnings, EBITDA and cash flow in our history,” said Brian Jellison, Roper’s Chairman, President and CEO. “EBITDA increased $109 million in 2007 to $529 million and EBITDA margins reached 25.2%, up 50 basis points from the prior year. Internal orders grew 10% during 2007, and we finished the year with a record backlog of $532 million. The company’s book-to-bill ratio remained strong despite an unprecedented fourth quarter in 2006 driven by our Middle East tolling win. Our operating margins continued to expand with record results in the fourth quarter and the full year. We are particularly pleased that our operating people made outstanding progress in reducing net working capital. These improvements, along with strong operating performance in our businesses, led to operating cash flow of $344 million in 2007, representing 16.4% of revenue and 137% of net earnings.”
Acquisition of CBORD
Separately, Roper announced today the acquisition of The CBORD Group, Inc., the leading provider of card systems and integrated security solutions to higher education, healthcare and other markets in a transaction valued at $367 million, including $23 million in tax benefits that can be utilized over time. CBORD extends the reach of Roper’s RF segment to the education and healthcare markets, and broadens the company’s cash generation solution technologies beyond the water utility and transportation markets. Roper expects the addition of CBORD to be immediately cash accretive, to add $0.02- $0.03 to 2008 diluted earnings per share and to increase 2009 diluted earnings per share by up to $0.10. Including the acquisition of CBORD, Roper has made acquisition investments in the last twelve months totaling $474 million.
2008 Guidance
“In 2007 we continued the transformation of Roper and finished the year with exceptional strength across our businesses. With a record year end backlog, strong order growth and excellent strategic positioning, we expect a strong first quarter and another record year in 2008,” Mr. Jellison added.
Roper expects 2008 net earnings of at least $294 million and EBITDA to exceed $600 million. The company expects to achieve first quarter DEPS of $0.65-$0.67 and full year 2008 DEPS of $3.10-$3.20, including the dilutive effect of the Company’s senior subordinated convertible notes based on the company’s stock price at the end of 2007.