Roper Technologies, Inc (ROP) has reported 12.71 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $182.08 million, or $1.78 a share in the quarter, compared with $208.60 million, or $2.05 a share for the same period last year. On an adjusted basis, earnings per share were at $1.86 for the quarter compared with $1.82 in the same period last year. Revenue during the quarter grew 7.12 percent to $1,010.80 million from $943.64 million in the previous year period. Gross margin for the quarter expanded 65 basis points over the previous year period to 62.02 percent. Total expenses were 71.40 percent of quarterly revenues, up from 70.47 percent for the same period last year. That has resulted in a contraction of 93 basis points in operating margin to 28.60 percent.
Operating income for the quarter was $289.10 million, compared with $278.68 million in the previous year period.
"We are very pleased with our fourth quarter performance," said Brian Jellison, Roper's Chairman, President and Chief executive officer. "The execution of our strategies continued to deliver impressive cash flow results as full year adjusted operating cash flow exceeded $1 billion for the first time. Revenue increased 7%, including 2% organic growth, and we delivered a record $365 million of EBITDA in the quarter, representing 36% of revenue. Importantly, fourth quarter orders increased 17% to a record $1.1 billion and our book-to-bill ratio was 1.07, giving us confidence as we enter 2017."
Roper Technologies, Inc expects adjusted revenue to grow in the range of 20 percent to 22 percent for for financial year 2017. The company projects diluted earnings per share to be in the range of $1.34 to $1.42 for the first-quarter. For financial year 2017, the company projects diluted earnings per share to be in the range of $6.68 to $7.08. On an adjusted basis, the company projects diluted earnings per share to be in the range of $1.92 to $2 for the first-quarter. For financial year 2017, the company projects diluted earnings per share to be in the range of $8.82 to $9.22 on adjusted basis.
Operating cash flow improves marginally
Roper Technologies, Inc has generated cash of $963.78 million from operating activities during the year, up 3.76 percent or $34.96 million, when compared with the last year. The company has spent $3,752.86 million cash to meet investing activities during the year as against cash outgo of $1,698.33 million in the last year.
Cash flow from financing activities was $2,805.26 million for the year, up 181.58 percent or $1,809.02 million, when compared with the last year.
Cash and cash equivalents stood at $757.20 million as on Dec. 31, 2016, down 2.74 percent or $21.31 million from $778.51 million on Dec. 31, 2015.
Working capital drops significantly
Roper Technologies, Inc has witnessed a decline in the working capital over the last year. It stood at $331.23 million as at Dec. 31, 2016, down 63.11 percent or $566.69 million from $897.92 million on Dec. 31, 2015. Current ratio was at 1.23 as on Dec. 31, 2016, down from 2.25 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 32 days for the quarter from 30 days for the last year period. Days sales outstanding went up to 28 days for the quarter compared with 24 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the quarter compared with 24 days for the previous year period. At the same time, days payable outstanding was almost stable at 18 days for the quarter, when compared with the previous year period.
Debt increases substantially
Roper Technologies, Inc has witnessed an increase in total debt over the last one year. It stood at $6,209.54 million as on Dec. 31, 2016, up 89.82 percent or $2,938.31 million from $3,271.22 million on Dec. 31, 2015. Total debt was 43.35 percent of total assets as on Dec. 31, 2016, compared with 32.17 percent on Dec. 31, 2015. Debt to equity ratio was at 1.07 as on Dec. 31, 2016, up from 0.62 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 9.48 for the quarter from 11.69 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
