Roper Technologies : Announces Third Quarter Results
October 28, 2020 at 10:13 am EDT
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Roper Technologies, Inc. (NYSE: ROP), a leading diversified technology company, reported financial results for the third quarter ended September 30, 2020.
Third quarter GAAP and adjusted revenue increased 1% to $1.37 billion and organic revenue decreased 3%. GAAP gross margin was 64.1% while adjusted gross margin was 64.2%. GAAP diluted earnings per share ('DEPS') was $2.21 and adjusted DEPS was $3.17. EBITDA increased 1% to $501 million and EBITDA margin decreased 10 basis points to 36.6%. GAAP operating cash flow decreased 66% to $138 million. Adjusted operating cash flow increased 12% to $454 million and adjusted free cash flow increased 14% to $442 million. 'We are very pleased with the continued strong execution by our business leaders this quarter,' said Neil Hunn, Roper's President and CEO. 'We once again benefited from our diverse and resilient portfolio, and saw improvement across many businesses. Importantly, we have seen an accelerated shift towards SaaS solutions and an expansion of our software networks. Notably, our laboratory software businesses and Verathon's video intubation solutions have been on the front lines of the battle against COVID-19.' 'We successfully deployed $5.8 billion over the past few months, led by our acquisition of Vertafore last month. These niche software acquisitions continue Roper's long-term transformation by enhancing the quality and resilience of our portfolio, increasing our mix of recurring revenue, and further strengthening our ability to consistently compound cash flow. We are well positioned for a strong fourth quarter and a great 2021,' concluded Mr. Hunn.
Use of Non-GAAP Financial Information
The Company supplements its consolidated financial statements presented on a GAAP basis with certain non-GAAP financial information to provide investors with greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated.
Roper Technologies Inc. is a diversified group organized around 4 families of products:
- scientific and industrial imaging products (29.7% of net sales): digital imaging products and software, medical products, handheld and vehicle mounted computers, etc.;
- industrial technology products (29.6%): industrial pumps, flow measurement and metering equipment, industrial valves and controls, equipment for materials analysis, etc.;
- radio frequency products (28.5%): toll systems and traffic control devices, security and access control systems, campus card systems, mobile asset tracking systems, remote temperature monitoring systems, etc.;
- energy and control systems (12.2%): control systems, fluid properties testing equipment, sensors, non-destructive inspection and measurement instruments, etc.
ROPER TECHNOLOGIES, INC. 
