Roper Technologies, Inc. (NYSE:ROP) Q4 2014 Earnings Conference Call - Final Transcript

Jan 26, 2015 • 08:30 am ET

Previous

Roper Technologies, Inc. (NYSE:ROP) Q4 2014 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
operator

The Roper Industries Fourth Quarter 2014 Financial Results Call will now begin. Today's conference is being recorded.

I will now turn the call over to John Humphrey, Chief Financial Officer.

Executive
John Humphrey

Thank you, (inaudible), and thank you all for joining us this morning as we discuss our fourth quarter and full year results. Joining me this morning is Brian Jellison, Chairman, President and Chief Executive Officer, Paul Soni, Vice President and Controller, and Rob Crisci, who Heads our Planning and Investor Relations for us.

Earlier this morning, we issued a press release announcing our financial results, that press release also includes replay information for today's call. We have prepared slides to accompany today's call, which are available through the webcast and also on our website at www.roperind.com. Operator please start slide two, we begin with our Safe Harbor statement. (Forward-Looking Cautionary Statement). Please start to slide three, today we will be discussing our income statement results for the quarter primarily on an adjusted basis. A full reconciliation between GAAP and adjusted measures is in our press release this morning and also included as a part of this presentation, which is available on our website.

For the fourth quarter the difference between GAAP and adjusted consists of two discrete items. First, a purchase accounting adjustment to acquire deferred revenue and our recent software acquisitions, FoodLink and SHP, which we completed in the third quarter that total is about $1.4 million. As a reminder this represents revenue that absent our acquisition those businesses would have recognized. In addition we had an inventory step-up charge for IPA for about $400,000.

And now if you'll please turn the slide four, I will turn the call over to Brian Jellison, Chairman, President and Chief Executive Officer and after his remarks, we'll take questions from our participants. Brian?

Executive
Brian Jellison

Thank you. John. Good morning, everyone. Well, I'll try to get

Executive
Brian Jellison

Get this call finished, for your (inaudible). So if we start with the Q4 enterprise financial results. We had a really terrific, terrific year with a great strong finish year in the fourth quarter we had all-time records for incoming orders, revenues that we've built, generating EBITDA cash flow. Organic revenue in the fourth quarter was up 7%. We had pretty much broad-based growth every place or operating margins in the quarter reached 30.1%, which was up by 110 basis points and the operating leverage was pretty spectacular in the quarter at 47%.

I will comment about leverage going forward with our guidance. Net earnings were up 13% to $187 billion or a $1.85 and operating cash flow was up sharply $1 billion run rate. There are $261 million in the quarter up 11% with free cash flow in that same kind of category. It's very little CapEx this year about 1% of revenue, so very strong fourth quarter.

Next slide, we look at the income statement, here you can see the orders were up 924 versus 900 a year ago, up 3% that book-to-bill was 0.98. But, so