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$ROP 1Q15 10-Q: Net working capital was $215MM at March 31, 2015 vs. $285MM at Dec. 31, 2014. Total debt was $2.63Bil at March 31, 2015 vs. $2.21Bil at Dec. 31, 2014. At March 31, 2015, there was $415MM of outstanding borrowings under credit facility. ROP recorded $418MM in goodwill & $212MM of other intangibles in connection with the acquisitions.
$ROP's BoD declared a quarterly cash dividend of $0.4125 per share. The dividend is payable on Jan. 23, 2018 to stockholders of record as of Jan. 9, 2018. This represents an increase of 18% over the dividend paid in each quarter of 2017, or an expected $0.25 increase on an annual basis ($0.0625 on a quarterly basis).
$ROP raised its FY17 guidance and now expects adjusted EPS of $9.27 to $9.33, compared to the prior guidance of $9.12 to $9.30. For 4Q17, the company expects adjusted EPS to be between $2.56 and $2.62. Adjusted EPS during 3Q17 stood at $2.36.
Diversified industrial company $ROP reported 3Q17 revenue growth of 23% to $1.16Bil, helped by growth in software and network businesses. Net income for the quarter grew to $190.3MM, or $1.84 per share, compared to $167.1MM, or $1.63 per share a year ago.
On the Deltek and ConstructConnect margins, $ROP said that from an EBITDA margin perspective, it's right in the sort of mid-30s. Deltek over-performed a bit in 2Q17 versus what the company thought it would do in Q3. So from a margin perspective, right in line with what the company expected.
$ROP raised its FY17 adjusted diluted EPS guidance to $9.12-9.30 from $8.98-9.28 announced earlier. In 3Q17, the company expects adjusted diluted EPS to be between $2.24-2.30. This guidance excludes the impact of future acquisitions or divestitures.
Deltek and ConstructConnect acquisitions, along with a 33% growth in YTD operating cash flow helped $ROP report a 13.87% growth in its 2Q17 earnings. Net income grew to $180MM, or $1.74 per share for the quarter. Additionally, revenue surged 21.83% to $1.13Bil, driven by organic revenue growth from all its segments.
$ROP completed its previously announced acquisition of Deltek. $ROP funded the acquisition with proceeds from its recent notes offering, borrowings under its credit facility and cash on hand. Deltek is the global provider of software and information solutions for project-based businesses serving niche markets.
$ROP priced its public offering of $500MM of 2.800% notes due 2021 and $700MM of 3.800% notes due 2026. The offering is expected to close on Dec. 19, 2016. Net proceeds will be used to fund the purchase price of the previously announced Deltek acquisition. Remaining net proceeds, if any, will be used for general corporate purposes.
$ROP agreed to buy Deltek. The deal is expected to be accretive to $ROP's 2017 cash flow. Including financing costs, deal is expected to add $80MM to $ROP's 2017 free cash flow. $ROP expects Deltek to deliver $535MM of revenue and $200MM of EBITDA in 2017. $ROP expects deal to have limited impact on 2017 EPS due to non-cash amortization expense.