Roper Industries Announces Results for 2009 Third Quarter

Orders Increased Sequentially; Net Earnings Were $56 Million; Operating Cash Flow Reached $87 Million


SARASOTA, Fla., Oct. 26  /PRNewswire-FirstCall/ -- Roper Industries, Inc. (NYSE:ROP) reported financial results for the third quarter ended September 30, 2009.

Net earnings for the third quarter were $56 million, or $0.61 per diluted share.  Excluding restructuring expenses, adjusted net earnings were $58 million, or $0.63 per diluted share.  Sales during the quarter were $486 million, an 18% decrease compared to the same period in 2008.  Orders were $499 million, and represented 103% of sales, marking the first time since the second quarter of 2008 that orders exceeded sales.  Operating cash flow was $87 million, or 18% of revenue, bringing year-to-date operating cash flow to $248 million.  Free cash flow (operating cash flow less capital expenditures) during the quarter was $81 million, representing 143% of net income in the quarter.  Year-to-date free cash flow is $229 million, or 137% of year-to-date net income.

"More than half our businesses experienced greater than 10% growth in orders over the second quarter, and this improvement in order momentum is expected to continue in the fourth quarter," said Brian Jellison, Roper's Chairman, President and CEO.  "Although sales in the quarter were 4% lower than second quarter levels, in part due to some orders shifting to the fourth quarter, we were pleased with the performance of our businesses in terms of margins, cost controls and cash flow.  In addition, we increased cash and liquidity during the quarter with a successful $500 million 10-year bond offering that increases our flexibility as we pursue strategic acquisition opportunities."

Operating margin was 18.9% in the quarter, or 19.5% excluding restructuring costs.  Decremental margin (change in operating profit divided by change in sales), excluding the RF segment was 34% in the quarter, including the cost of restructuring, and 31% excluding restructuring costs.  "Our decremental margin performance again demonstrated the success of our operating model, with its focus on breakeven analysis and quick payback restructuring actions," Mr. Jellison concluded.

Outlook and Guidance

Roper expects full year operating cash flow to be in excess of $350 million.   Adjusting for the additional interest costs related to the recent bond offering, the Company now expects full-year earnings per diluted share between $2.57 and $2.63, which excludes the impact of restructuring costs and future acquisitions.

  Table 1:  Sequential Income Statement (Millions)

                                               Q3 2009           Q2 2009

  Net Orders                                     $499              $489
  Net Sales                                       486               505
  Cost of Sales                                   240               250
  Gross Profit                                   $246              $255
  Selling, General & Administrative Expenses      154               159
  Operating Profit                                $92               $96



  Table 2:  Operating Margin (Millions)
                                                Q3 2009

  (1) Operating Profit                          $91.9
       Restructuring Costs, All Segments          2.7
  (2) Adjusted Operating Profit                 $94.6
  (3) Revenue                                    $486

      Operating Margin (1)/(3)                   18.9%
      Adjusted Operating Margin (2)/(3)          19.5%



  Table 3:  Sales Growth
                                               Q3 2009
  Organic Growth                                (19%)
  Acquisitions / Divestitures                     2%
  Foreign Currency (FX)                          (1%)
  Total Sales Growth                            (18%)


  Conference Call to be Held at 8:30 AM (ET) October 26, 2009



A conference call to discuss these results has been scheduled for 8:30 AM ET on Monday, October 26, 2009.  The call can be accessed via webcast or by dialing [phone] (US/Canada) or [phone], using confirmation code 6889450.  Webcast information and conference call materials will be made available in the Investors section of Roper's website (http://www.roperind.com/) prior to the start of the call.  Telephonic replays will be available for up to two weeks by calling [phone] (US/Canada) or [phone] and using the access code 6889450.

About Roper Industries

Roper Industries is a diversified growth company and is a component of the Fortune 1000, S&P MidCap 400 and the Russell 1000 Indexes. Roper provides engineered products and solutions for global niche markets, including water, energy, radio frequency and research/medical applications. Additional information about Roper Industries is available on the Company's website at http://www.roperind.com/.

The information provided in this press release contains forward looking statements within the meaning of the federal securities laws. These forward looking statements include, among others, statements regarding operating results, the success of our internal operating plans, and the prospects for newly acquired businesses to be integrated and contribute to future growth and profit expectations.  Forward looking statements may be indicated by words or phrases such as "anticipate," "estimate," "plans," "expects," "projects," "should," "will," "believes" or "intends" and similar words and phrases.  These statements reflect management's current beliefs and are not guarantees of future performance.  They involve risks and uncertainties that could cause actual results to differ materially from those contained in any forward looking statement. Such risks and uncertainties include our ability to integrate our acquisitions and realize expected synergies.  We also face other general risks, including our ability to realize cost savings from our operating initiatives, general economic conditions, unfavorable changes in foreign exchange rates, difficulties associated with exports, risks associated with our international operations, difficulties in making and integrating acquisitions, risks associated with newly acquired businesses, increased product liability and insurance costs, increased warranty exposure, future competition, changes in the supply of, or price for, parts and components, environmental compliance costs and liabilities, risks and cost associated with asbestos related litigation and potential write-offs of our substantial intangible assets, and risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products.  Important risks may be discussed in current and subsequent filings with the SEC.  You should not place undue reliance on any forward looking statements.  These statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

  Roper Industries, Inc. and Subsidiaries
  Condensed Consolidated Balance Sheets (unaudited)
  (Amounts in thousands)


                                                September 30,  December 31,
  ASSETS                                            2009          2008

  CURRENT ASSETS:
    Cash and cash equivalents                      $256,024      $178,069
    Accounts receivable                             323,959       376,855
    Inventories                                     174,055       185,919
    Deferred taxes                                   27,540        29,390
    Unbilled receivable                              60,344        61,168
    Other current assets                             65,572        26,906
      Total current assets                          907,494       858,307

  PROPERTY, PLANT AND EQUIPMENT, NET                104,748       112,463

  OTHER ASSETS:
    Goodwill                                      2,142,765     2,118,852
    Other intangible assets, net                    759,241       804,020
    Deferred taxes                                   31,190        28,050
    Other assets                                     56,383        49,846
      Total other assets                          2,989,579     3,000,768

  TOTAL ASSETS                                   $4,001,821    $3,971,538


  LIABILITIES AND STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES:
    Accounts payable                               $100,561      $121,807
    Accrued liabilities                             224,483       261,682
    Income taxes payable                                  -         1,892
    Deferred taxes                                    1,079             -
    Current portion of long-term debt               119,852       233,526
      Total current liabilities                     445,975       618,907

  NONCURRENT LIABILITIES:
    Long-term debt                                1,004,357     1,033,689
    Deferred taxes                                  286,352       272,182
    Other liabilities                                42,662        42,826
      Total liabilities                           1,779,346     1,967,604

  STOCKHOLDERS' EQUITY:
    Common stock                                        931           919
    Additional paid-in capital                      846,966       815,736
    Retained earnings                             1,332,555     1,187,467
    Accumulated other comprehensive earnings         63,425        21,513
    Treasury stock                                  (21,402)      (21,701)
      Total stockholders' equity                  2,222,475     2,003,934

  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $4,001,821    $3,971,538



  Roper Industries, Inc. and Subsidiaries
  Condensed Consolidated Statements of Earnings (unaudited)
  (Amounts in thousands, except per share data)


                           Three months ended    Nine months ended
                              September 30,        September 30,
                              2009     2008        2009       2008

  Net sales                $485,676 $593,100  $1,496,030 $1,730,509
  Cost of sales             240,156  284,340     744,304    840,029

  Gross profit              245,520  308,760     751,726    890,480

  Selling, general and
   administrative expenses  153,648  176,461     477,098    523,374

  Income from operations     91,872  132,299     274,628    367,106

  Interest expense           14,437   16,122      41,708     42,141
  Other income (expense)        105   (2,836)      2,917     (1,695)

  Earnings from continuing
   operations before
   income taxes              77,540  113,341     235,837    323,270

  Income taxes               21,130   39,312      68,280    112,267

  Net Earnings              $56,410  $74,029    $167,557   $211,003



  Earnings per share:
    Basic                     $0.62    $0.83       $1.85      $2.36
    Diluted                   $0.61    $0.79       $1.81      $2.24

  Weighted average
   common and common
   equivalent shares
   outstanding:
      Basic                  90,877   89,629      90,526     89,381
      Diluted                92,908   94,251      92,635     94,026



  Roper Industries, Inc. and Subsidiaries
  Selected Segment Financial Data (unaudited)
  (Amounts in thousands and percents of net sales)


                                        Three months ended September 30,
                                             2009               2008
                                        Amount     %     Amount      %
  Net sales:
    Industrial Technology              $130,538         $169,065
    Energy Systems & Controls           102,988          137,535
    Scientific & Industrial Imaging      78,934           94,610
    RF Technology                       173,216          191,890
      Total                            $485,676         $593,100


  Gross profit:
    Industrial Technology               $62,060   47.5%  $82,215   48.6%
    Energy Systems & Controls            52,464   50.9%   75,172   54.7%
    Scientific & Industrial Imaging      44,169   56.0%   51,457   54.4%
    RF Technology                        86,827   50.1%   99,916   52.1%
      Total                            $245,520   50.6% $308,760   52.1%


  Operating profit*:
    Industrial Technology               $30,547   23.4%  $43,767   25.9%
    Energy Systems & Controls            19,214   18.7%   32,541   23.7%
    Scientific & Industrial Imaging      14,818   18.8%   18,746   19.8%
    RF Technology                        38,918   22.5%   50,191   26.2%
      Total                            $103,497   21.3% $145,245   24.5%


  Operating profit excluding restructuring*:
    Industrial Technology               $31,494   24.1%  $43,767   25.9%
    Energy Systems & Controls            20,503   19.9%   32,541   23.7%
    Scientific & Industrial Imaging      15,195   19.3%   18,746   19.8%
    RF Technology                        38,976   22.5%   50,191   26.2%
      Total                            $106,168   21.9% $145,245   24.5%

  Net Orders:
    Industrial Technology              $125,776         $163,442
    Energy Systems & Controls           104,593          134,970
    Scientific & Industrial Imaging      84,329          102,933
    RF Technology                       184,243          179,274
      Total                            $498,941         $580,619



                                         Nine months ended September 30,
                                             2009             2008
                                         Amount    %     Amount      %
  Net sales:
    Industrial Technology              $397,730         $525,929
    Energy Systems & Controls           314,997          410,638
    Scientific & Industrial Imaging     238,914          282,206
    RF Technology                       544,389          511,736
      Total                          $1,496,030       $1,730,509


  Gross profit:
    Industrial Technology              $190,501   47.9% $253,719   48.2%
    Energy Systems & Controls           164,123   52.1%  223,720   54.5%
    Scientific & Industrial Imaging     132,385   55.4%  154,135   54.6%
    RF Technology                       264,717   48.6%  258,906   50.6%
      Total                            $751,726   50.2% $890,480   51.5%


  Operating profit*:
    Industrial Technology               $91,614   23.0% $136,627   26.0%
    Energy Systems & Controls            59,926   19.0%   96,359   23.5%
    Scientific & Industrial Imaging      43,300   18.1%   54,091   19.2%
    RF Technology                       115,724   21.3%  119,902   23.4%
      Total                            $310,564   20.8% $406,979   23.5%


  Operating profit excluding restructuring*:
    Industrial Technology               $95,931   24.1% $136,627   26.0%
    Energy Systems & Controls            63,739   20.2%   96,359   23.5%
    Scientific & Industrial Imaging      44,797   18.8%   54,091   19.2%
    RF Technology                       116,542   21.4%  119,902   23.4%
      Total                            $321,009   21.5% $406,979   23.5%

  Net Orders:
    Industrial Technology              $391,049         $514,326
    Energy Systems & Controls           298,551          402,553
    Scientific & Industrial Imaging     235,433          289,606
    RF Technology                       534,251          538,624
      Total                          $1,459,284       $1,745,109



  *  Operating profit is before unallocated corporate general and
     administrative expenses.  These expenses were $11,625 and $12,946
     for the three months ended September 30, 2009 and 2008, respectively,
     and $35,936 and $39,873 for the nine months ended September 30, 2009
     and 2008, respectively.



  Roper Industries, Inc. and Subsidiaries
  Condensed Consolidated Statements of Cash Flows (unaudited)
  (Amounts in thousands)


                                            Nine months ended
                                              September 30,
                                             2009      2008

  Net earnings                             $167,557  $211,003
  Non-cash items:
    Depreciation                             25,828    24,775
    Amortization                             51,280    50,588
    Stock-based compensation expense         20,821    22,848
  Income taxes                              (24,146)    2,602
  Changes in assets and liabilities:
    Receivables                              54,127    (5,517)
    Inventory                                14,496   (12,157)
    Accounts payable                        (22,354)    5,358
    Accrued liabilities                     (42,375)    2,234
  Other, net                                  2,615     3,805
    Cash provided by operating activities   247,849   305,539

  Business acquisitions, net of cash
   acquired                                  (1,248) (701,935)
  Capital expenditures                      (18,708)  (20,787)
  Other, net                                  6,983    (4,084)
    Cash used by investing activities       (12,973) (726,806)

  Principal debt borrowings                 500,000   850,000
  Principal debt payments                  (466,186) (957,745)
  Revolver borrowings (payments), net      (179,000)  393,000
  Debt issuance costs                        (4,310)  (10,169)
  Dividends                                 (22,343)  (19,393)
  Excess tax benefit from share-based
   payment                                    1,055     4,688
  Proceeds from exercise of stock options     4,845    10,050
  Other, net                                   (604)      918
    Cash provided by (used by) financing
     activities                            (166,543)  271,349

  Effect of exchange rate changes on cash     9,622    (2,578)

  Net increase (decrease) in cash and
   equivalents                               77,955  (152,496)
  Cash and equivalents, beginning of
   period                                   178,069   308,768

  Cash and equivalents, end of period      $256,024  $156,272


DATASOURCE: Roper Industries, Inc.



CONTACT:  Investor Relations, Roper Industries, Inc., [phone],





Web Site:  http://www.roperind.com/ 

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