2018 Q1 Form 10-Q Financial Statement

#000088283518000020 Filed on May 04, 2018

View on sec.gov

Income Statement

Concept 2018 Q1 2017 Q1
Revenue $1.203B $1.086B
YoY Change 10.7% 20.38%
Cost Of Revenue $452.0M $418.7M
YoY Change 7.95% 22.11%
Gross Profit $750.5M $667.6M
YoY Change 12.42% 19.32%
Gross Profit Margin 62.41% 61.46%
Selling, General & Admin $450.3M $409.3M
YoY Change 10.02% 30.14%
% of Gross Profit 60.0% 61.31%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $12.60M $12.40M
YoY Change 1.61% -79.05%
% of Gross Profit 1.68% 1.86%
Operating Expenses $450.3M $409.3M
YoY Change 10.02% 30.14%
Operating Profit $300.2M $258.3M
YoY Change 16.22% 5.43%
Interest Expense $43.20M $45.90M
YoY Change -5.88% -267.52%
% of Operating Profit 14.39% 17.77%
Other Income/Expense, Net -$1.700M -$1.100M
YoY Change 54.55% 1000.0%
Pretax Income $255.3M $211.3M
YoY Change 20.82% -2.81%
Income Tax $44.00M $53.20M
% Of Pretax Income 17.23% 25.18%
Net Earnings $211.3M $158.1M
YoY Change 33.65% 4.41%
Net Earnings / Revenue 17.57% 14.55%
Basic Earnings Per Share $2.05 $1.55
Diluted Earnings Per Share $2.03 $1.53
COMMON SHARES
Basic Shares Outstanding 102.9M shares 101.9M shares
Diluted Shares Outstanding 104.2M shares 103.1M shares

Balance Sheet

Concept 2018 Q1 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $366.0M $731.0M
YoY Change -49.93% 39.77%
Cash & Equivalents $366.2M $730.7M
Short-Term Investments
Other Short-Term Assets $72.50M $69.00M
YoY Change 5.07% 50.0%
Inventory $216.7M $191.0M
Prepaid Expenses
Receivables $631.2M $693.0M
Other Receivables $46.00M $29.00M
Total Short-Term Assets $1.502B $1.713B
YoY Change -12.32% 19.62%
LONG-TERM ASSETS
Property, Plant & Equipment $140.9M $144.0M
YoY Change -2.15% 35.85%
Goodwill $8.870B
YoY Change
Intangibles $3.438B
YoY Change
Long-Term Investments
YoY Change
Other Assets $91.50M $104.0M
YoY Change -12.02% 18.18%
Total Long-Term Assets $12.57B $12.52B
YoY Change 0.44% 42.37%
TOTAL ASSETS
Total Short-Term Assets $1.502B $1.713B
Total Long-Term Assets $12.57B $12.52B
Total Assets $14.07B $14.23B
YoY Change -1.1% 39.18%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $171.0M $153.0M
YoY Change 11.76% 9.29%
Accrued Expenses $423.0M $383.0M
YoY Change 10.44% 38.27%
Deferred Revenue $605.5M
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $801.3M $401.0M
YoY Change 99.83% 6583.33%
Total Short-Term Liabilities $2.048B $1.539B
YoY Change 33.04% 97.56%
LONG-TERM LIABILITIES
Long-Term Debt $3.821B $5.440B
YoY Change -29.77% 75.2%
Other Long-Term Liabilities $238.8M $112.0M
YoY Change 113.21% 55.56%
Total Long-Term Liabilities $4.060B $5.552B
YoY Change -26.88% 74.76%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.048B $1.539B
Total Long-Term Liabilities $4.060B $5.552B
Total Liabilities $6.919B $8.259B
YoY Change -16.23% 72.67%
SHAREHOLDERS EQUITY
Retained Earnings $5.479B
YoY Change
Common Stock $1.000M
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $18.60M
YoY Change
Treasury Stock Shares
Shareholders Equity $7.156B $5.971B
YoY Change
Total Liabilities & Shareholders Equity $14.07B $14.23B
YoY Change -1.1% 39.18%

Cashflow Statement

Concept 2018 Q1 2017 Q1
OPERATING ACTIVITIES
Net Income $211.3M $158.1M
YoY Change 33.65% 4.41%
Depreciation, Depletion And Amortization $12.60M $12.40M
YoY Change 1.61% -79.05%
Cash From Operating Activities $281.7M $378.2M
YoY Change -25.52% 82.62%
INVESTING ACTIVITIES
Capital Expenditures -$11.60M -$18.10M
YoY Change -35.91% 90.53%
Acquisitions $38.90M $2.800M
YoY Change 1289.29%
Other Investing Activities $1.000M $400.0K
YoY Change 150.0% -100.15%
Cash From Investing Activities -$51.50M -$21.30M
YoY Change 141.78% -92.23%
FINANCING ACTIVITIES
Cash Dividend Paid $42.10M $35.40M
YoY Change 18.93%
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$551.6M -$397.1M
YoY Change 38.91% 108.78%
NET CHANGE
Cash From Operating Activities $281.7M $378.2M
Cash From Investing Activities -$51.50M -$21.30M
Cash From Financing Activities -$551.6M -$397.1M
Net Change In Cash -$305.1M -$40.20M
YoY Change 658.96% -84.36%
FREE CASH FLOW
Cash From Operating Activities $281.7M $378.2M
Capital Expenditures -$11.60M -$18.10M
Free Cash Flow $293.3M $396.3M
YoY Change -25.99% 82.96%

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CY2018Q1 us-gaap Payments To Develop Software
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CY2018Q1 us-gaap Proceeds From Sale Of Treasury Stock
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CY2017Q4 us-gaap Product Warranty Accrual
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10600000 USD
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10200000 USD
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CY2018Q1 us-gaap Product Warranty Accrual Warranties Issued
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CY2018Q1 us-gaap Retained Earnings Accumulated Deficit
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CY2018Q1 us-gaap Revenue Remaining Performance Obligation
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CY2018Q1 us-gaap Selling General And Administrative Expense
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CY2017Q1 us-gaap Share Based Compensation
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CY2018Q1 us-gaap Share Based Compensation
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CY2018Q1 us-gaap Stock Issued During Period Value Share Based Compensation
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CY2018Q1 us-gaap Stockholders Equity
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CY2017Q4 us-gaap Treasury Stock Value
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CY2018Q1 us-gaap Treasury Stock Value
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CY2018Q1 us-gaap Unbilled Contracts Receivable
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CY2018Q1 us-gaap Unbilled Receivables Current
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CY2018Q1 us-gaap Unbilled Receivables Current
UnbilledReceivablesCurrent
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CY2017Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
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CY2018Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
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CY2017Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2018Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2018Q1 us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Contingencies</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Roper, in the ordinary course of business, is the subject of, or a party to, various pending or threatened legal actions, including product liability and employment practices that, in general, are based upon claims of the kind that have been customary over the past several years and which the Company is vigorously defending. After analyzing the Company's contingent liabilities on a gross basis and, based upon past experience with resolution of its product liability and employment practices claims and the limits of the primary, excess, and umbrella liability insurance coverages that are available with respect to pending claims, management believes that adequate provision has been made to cover any potential liability not covered by insurance, and that the ultimate liability, if any, arising from these actions should not have a material adverse effect on Roper's consolidated financial position, results of operations or cash flows.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Roper or its subsidiaries have been named defendants along with numerous industrial companies in asbestos-related litigation claims in certain U.S. states. No significant resources have been required by Roper to respond to these cases and Roper believes it has valid defenses to such claims and, if required, intends to defend them vigorously. Given the state of these claims, it is not possible to determine the potential liability, if any.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Roper's consolidated financial statements include accruals for potential product liability and warranty claims based on its claims experience. Such costs are accrued at the time revenue is recognized. A summary of the warranty accrual activity for the </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;"> is presented below:</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="4" rowspan="1"></td></tr><tr><td style="width:89%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:9%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Balance at December&#160;31, 2017</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">10.6</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Additions charged to costs and expenses</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">1.9</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Deductions</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(2.4</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-right:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Other</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">0.1</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Balance at March&#160;31, 2018</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">10.2</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr></table></div></div></div>
CY2018Q1 us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Deferred revenues - </font><font style="font-family:inherit;font-size:10pt;">We record deferred revenues when cash payments are received or due in advance of our performance. Our deferred revenues relate primarily to software and related services. In most cases we recognize these deferred revenues ratably over time as the SaaS or PCS performance obligation is satisfied. The non-current portion of deferred revenue is included in "Other liabilities" in our condensed consolidated balance sheets. </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our unbilled receivables and deferred revenues are reported in a net position on a contract-by-contract basis at the end of each reporting period. We classify these balances as current or non-current based on the timing of when we expect to recognize revenue.</font></div></div>

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