2018 Q4 Form 10-Q Financial Statement

#000088283518000067 Filed on November 05, 2018

View on sec.gov

Income Statement

Concept 2018 Q4 2018 Q3 2018 Q1
Revenue $1.376B $1.319B $1.203B
YoY Change 12.21% 13.69% 10.7%
Cost Of Revenue $503.2M $478.7M $452.0M
YoY Change 9.04% 10.43% 7.95%
Gross Profit $873.1M $840.0M $750.5M
YoY Change 14.12% 15.64% 12.42%
Gross Profit Margin 63.44% 63.7% 62.41%
Selling, General & Admin $508.7M $462.5M $450.3M
YoY Change 21.67% 11.28% 10.02%
% of Gross Profit 58.26% 55.06% 60.0%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $94.10M $94.70M $12.60M
YoY Change 8.54% 9.1% 1.61%
% of Gross Profit 10.78% 11.27% 1.68%
Operating Expenses $508.7M $462.5M $450.3M
YoY Change 21.67% 11.28% 10.02%
Operating Profit $364.4M $377.5M $300.2M
YoY Change 5.04% 21.46% 16.22%
Interest Expense -$47.30M $48.40M $43.20M
YoY Change 8.99% 6.37% -5.88%
% of Operating Profit -12.98% 12.82% 14.39%
Other Income/Expense, Net $1.000M -$1.600M -$1.700M
YoY Change -600.0% 128.57% 54.55%
Pretax Income $318.1M $311.6M $255.3M
YoY Change 4.85% 17.76% 20.82%
Income Tax $72.70M $64.00M $44.00M
% Of Pretax Income 22.85% 20.54% 17.23%
Net Earnings $257.1M $247.6M $211.3M
YoY Change -42.08% 30.11% 33.65%
Net Earnings / Revenue 18.68% 18.78% 17.57%
Basic Earnings Per Share $2.49 $2.39 $2.05
Diluted Earnings Per Share $2.46 $2.37 $2.03
COMMON SHARES
Basic Shares Outstanding 103.4M shares 103.4M shares 102.9M shares
Diluted Shares Outstanding 104.6M shares 104.2M shares

Balance Sheet

Concept 2018 Q4 2018 Q3 2018 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $364.0M $363.0M $366.0M
YoY Change -45.75% -40.1% -49.93%
Cash & Equivalents $364.4M $363.4M $366.2M
Short-Term Investments
Other Short-Term Assets $80.00M $83.30M $72.50M
YoY Change 8.84% -27.82% 5.07%
Inventory $190.8M $212.2M $216.7M
Prepaid Expenses
Receivables $700.8M $671.7M $631.2M
Other Receivables $22.00M $49.00M $46.00M
Total Short-Term Assets $1.611B $1.608B $1.502B
YoY Change -8.45% -4.97% -12.32%
LONG-TERM ASSETS
Property, Plant & Equipment $128.7M $130.2M $140.9M
YoY Change -9.68% -7.84% -2.15%
Goodwill $9.347B $9.401B $8.870B
YoY Change 5.97% 6.91%
Intangibles $3.842B $3.887B $3.438B
YoY Change 10.56% 10.97%
Long-Term Investments
YoY Change
Other Assets $101.1M $102.0M $91.50M
YoY Change 14.5% 21.09% -12.02%
Total Long-Term Assets $13.64B $13.64B $12.57B
YoY Change 8.62% 8.62% 0.44%
TOTAL ASSETS
Total Short-Term Assets $1.611B $1.608B $1.502B
Total Long-Term Assets $13.64B $13.64B $12.57B
Total Assets $15.25B $15.25B $14.07B
YoY Change 6.52% 7.01% -1.1%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $165.3M $164.0M $171.0M
YoY Change -3.39% 0.0% 11.76%
Accrued Expenses $258.0M $463.0M $423.0M
YoY Change -3.23% 7.67% 10.44%
Deferred Revenue $677.9M $649.1M $605.5M
YoY Change 19.69%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $1.500M $801.6M $801.3M
YoY Change -99.81% 99.63% 99.83%
Total Short-Term Liabilities $1.448B $2.119B $2.048B
YoY Change -28.64% 34.41% 33.04%
LONG-TERM LIABILITIES
Long-Term Debt $4.940B $4.414B $3.821B
YoY Change 13.45% -10.51% -29.77%
Other Long-Term Liabilities $191.5M $196.8M $238.8M
YoY Change -19.94% 71.4% 113.21%
Total Long-Term Liabilities $5.132B $4.611B $4.060B
YoY Change 11.71% -8.65% -26.88%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.448B $2.119B $2.048B
Total Long-Term Liabilities $5.132B $4.611B $4.060B
Total Liabilities $7.511B $7.690B $6.919B
YoY Change 0.78% -1.25% -16.23%
SHAREHOLDERS EQUITY
Retained Earnings $6.248B $6.038B $5.479B
YoY Change 14.33% 19.27%
Common Stock $1.100M $1.100M $1.000M
YoY Change -99.93% 5.47%
Preferred Stock
YoY Change
Treasury Stock (at cost) $18.50M $18.60M $18.60M
YoY Change -1.07% -0.78%
Treasury Stock Shares 1.900M shares
Shareholders Equity $7.739B $7.555B $7.156B
YoY Change
Total Liabilities & Shareholders Equity $15.25B $15.25B $14.07B
YoY Change 6.52% 7.01% -1.1%

Cashflow Statement

Concept 2018 Q4 2018 Q3 2018 Q1
OPERATING ACTIVITIES
Net Income $257.1M $247.6M $211.3M
YoY Change -42.08% 30.11% 33.65%
Depreciation, Depletion And Amortization $94.10M $94.70M $12.60M
YoY Change 8.54% 9.1% 1.61%
Cash From Operating Activities $464.1M $418.2M $281.7M
YoY Change 25.84% 32.51% -25.52%
INVESTING ACTIVITIES
Capital Expenditures -$17.20M -$13.90M -$11.60M
YoY Change 10.26% 3.73% -35.91%
Acquisitions $38.90M
YoY Change 1289.29%
Other Investing Activities -$87.50M -$5.900M $1.000M
YoY Change 33.38% -88.85% 150.0%
Cash From Investing Activities -$104.7M -$19.80M -$51.50M
YoY Change 28.78% -70.09% 141.78%
FINANCING ACTIVITIES
Cash Dividend Paid $42.10M
YoY Change 18.93%
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -347.3M -457.2M -$551.6M
YoY Change 58.01% 37.79% 38.91%
NET CHANGE
Cash From Operating Activities 464.1M 418.2M $281.7M
Cash From Investing Activities -104.7M -19.80M -$51.50M
Cash From Financing Activities -347.3M -457.2M -$551.6M
Net Change In Cash 12.10M -58.80M -$305.1M
YoY Change -82.13% -28.64% 658.96%
FREE CASH FLOW
Cash From Operating Activities $464.1M $418.2M $281.7M
Capital Expenditures -$17.20M -$13.90M -$11.60M
Free Cash Flow $481.3M $432.1M $293.3M
YoY Change 25.21% 31.34% -25.99%

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<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&#8217;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&#8217;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. In April 2018, a stockholder derivative complaint was filed in Sarasota County, Florida against the Company, nominally, and its directors and former chairman &amp; chief executive officer (&#8220;CEO&#8221;), alleging the directors breached their fiduciary duties and were unjustly enriched by the compensation earned by the nonexecutive directors and the CEO in 2015 and 2016. A motion to dismiss the complaint is pending.</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&#8217;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;">nine</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;"> is presented below:</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: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;">6.7</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;">(7.0</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;">Warranty related to liabilities held for sale</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;">(1.0</font></div></td><td style="vertical-align:bottom;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;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;">Other</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;">(0.1</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: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 September&#160;30, 2018</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;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;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;">9.2</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;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>
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72500000 USD
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88300000 USD
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67500000 USD
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us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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CY2017Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
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OtherLiabilitiesNoncurrent
196800000 USD
CY2018Q1 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
238800000 USD
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PaymentsForOtherOperatingActivities
17900000 USD
us-gaap Payments For Other Operating Activities
PaymentsForOtherOperatingActivities
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6900000 USD
us-gaap Payments For Proceeds From Other Investing Activities
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700000 USD
us-gaap Payments Of Debt Extinguishment Costs
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0 USD
us-gaap Payments Of Debt Extinguishment Costs
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15500000 USD
us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
0 USD
us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
12800000 USD
us-gaap Payments Of Dividends
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106500000 USD
us-gaap Payments Of Dividends
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126700000 USD
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88100000 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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1188300000 USD
us-gaap Payments To Acquire Productive Assets
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35900000 USD
us-gaap Payments To Acquire Productive Assets
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34200000 USD
us-gaap Payments To Develop Software
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8000000 USD
us-gaap Payments To Develop Software
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7200000 USD
CY2017Q4 us-gaap Prepaid Taxes
PrepaidTaxes
24400000 USD

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