ROPER TECHNOLOGIES, INC. (NYSE:ROP) Files An 8-K Results of Operations and Financial Condition
Item 2.02. Results of Operations and Financial Condition.
issued a press release containing information about the
Company’s results of operations for the quarter ended March 31,
2017. A copy of the press release is furnished as Exhibit
99.1. In the press release, the Company uses several non-GAAP
financial measures: Adjusted Revenue, Adjusted Gross Margin,
Adjusted Diluted Earnings per Share and Adjusted EBITDA.
for the fair value of deferred revenue assumed in connection with
the 2015 acquisitions of Data Innovations, SoftWriters, Strata
Decision Technology, OnCenter Software, Aderant and Atlas
Database Software and the 2016 acquisitions of CliniSys,
ConstructConnect and Deltek. The fair value is based on the
assumed cost of having a third-party provide the relevant support
services rather than the contracted amount under the contracts.
Because the fair value is less than the contracted amount,
Roper’s GAAP revenues for up to eighteen months subsequent to
the acquisitions will not reflect the full amount of revenue that
would have otherwise been recorded by the acquired companies had
they remained independent companies. The Adjusted Revenue measure
is intended to reflect the full amount that would have been
recognized as revenue, absent the fair value adjustment.
the carrying value of inventory acquired to fair value at the
date of purchase (inventory step-up). Roper’s GAAP gross profit
for the two quarters subsequent to the acquisition of PCI Medical
in the first quarter of 2016 did not reflect the full amount of
gross profit that would have otherwise been recorded by the
entities had they remained independent companies. The Adjusted
Gross Profit measure is intended to reflect the full amount that
would have been recognized by the company, absent the fair value
adjustment.
for the fair value of prepaid commissions related to deferred
revenue assumed in connection with the 2016 acquisition of
Deltek. The fair value of the commissions that had already been
paid at the time of the acquisition was determined to be zero;
therefore Roper’s GAAP results for up to eighteen months
subsequent to the acquisition will not reflect the full amount of
expense that would have otherwise been recorded by Deltek had
they remained an independent company.
Earnings per Share reflect these adjustments. The Company
believes these non-GAAP measures are useful to investors as a
measure of the ongoing performance of its business.
adjusted net earnings plus (a) interest expense, (b) income taxes
and (c) depreciation and amortization. The Company believes
EBITDA is an important indicator of operational performance of
the Company’s business. EBITDA as calculated by the Company is
not necessarily comparable to similarly titled measures reported
by other companies. In addition, EBITDA: (a) does not represent
net income or cash flows from operations as defined by GAAP; (b)
is not necessarily indicative of cash available to fund the
Company’s cash flow needs; and (c) should not be considered as
an alternative to net earnings, operating income, cash flows from
operating activities or the Company’s other financial
information determined under GAAP. The Company believes that the
line on the Company’s consolidated statement of operations
entitled net earnings is the most directly comparable GAAP
measure to EBITDA.
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99.1 Press Release of the Company dated April 28, 2017.
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About ROPER TECHNOLOGIES, INC. (NYSE:ROP)
Roper Technologies, Inc., formerly Roper Industries, Inc., is a technology company. The Company operates businesses that design and develop software and engineered products and solutions for a range of end markets, including healthcare, transportation, food, energy, water, education and academic research. It operates through four segments. The Medical and Scientific Imaging segment offers products and software in medical applications and high performance digital imaging products. The RF Technology segment provides radio frequency identification communication technology and software solutions. The Industrial Technology segment offerings include fluid handling pumps, materials analysis equipment and consumables, and leak testing equipment. The Energy Systems and Controls segment’s products include control systems, equipment and consumables for fluid properties testing, vibration sensors and other non-destructive inspection and measurement products and services. ROPER TECHNOLOGIES, INC. (NYSE:ROP) Recent Trading Information
ROPER TECHNOLOGIES, INC. (NYSE:ROP) closed its last trading session up +2.05 at 217.63 with 709,837 shares trading hands.
