Roper Technologies, Inc. (NYSE: ROP) reported financial results for the second quarter ended June 30, 2016.
Roper reports results, including revenue, operating margin, net income and diluted earnings per share, on both a GAAP basis and an adjusted basis. Adjusted measures are reconciled to the corresponding GAAP measures in the attached tables.
Second quarter GAAP revenue increased 5% to $932 million and adjusted revenue grew 5% to $934 million. GAAP diluted earnings per share (DEPS) were $1.54 and adjusted DEPS were $1.56. Orders increased 9% in the quarter to $956 million, and backlog was a record $1.14 billion.
GAAP gross margin increased to 60.9% and adjusted gross margin increased 90 basis points to 61.0 %. EBITDA increased 4% to $314 million.
"Continued weakness in oil and gas and some traffic project delays impacted our results, while the balance of our businesses performed well in the quarter," said Brian Jellison, Roper's Chairman, President and CEO. "Strong organic revenue growth in our medical, application software and water businesses coupled with our recent acquisitions resulted in 5% revenue growth in the quarter. Operating cash flow was $170 million in the quarter, bringing year to date adjusted operating cash flow to $414 million with cash conversion of 132%. Orders in the quarter were up 9% to a record $956 million, helping to build our momentum for a stronger second half of 2016."
"Our recent acquisitions performed well in the quarter. With our strong cash performance, ample liquidity and a full pipeline of attractive acquisition opportunities, we expect to invest over $1 billion this year," Mr. Jellison concluded.
2016 Guidance Update
In a somewhat lower global growth environment, and as a result of continued headwinds in energy end markets and delays in toll & traffic projects, Roper expects adjusted DEPS to be in the range of $6.57 - $6.71, with third quarter adjusted DEPS of $1.59 - $1.63. The Company expects revenue in the second half to increase between 7%-9%, including organic growth of 2%-4%. The Company's guidance excludes the impact of any future acquisitions or divestitures.
About Roper Technologies
Roper Technologies is a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices. Roper designs and develops software (both software-as-a-service and licensed), and engineered products and solutions for healthcare, transportation, food, energy, water, education and other niche markets worldwide. Additional information about Roper is available on the Company's website at www.ropertech.com.