Roper Technologies, Inc. (NYSE:ROP) Q4 2015 Earnings Conference Call - Final Transcript
Feb 01, 2016 • 08:30 am ET
Good day and welcome to the Roper Technologies' Fourth Quarter 2015 Financial Results Conference Call. Today's call is begin recorded.
I will now turn the call over to John Humphrey, Chief Financial Officer. Please go ahead, sir.
Thank you, Diana, and thank you all for joining us this morning as we discuss our fourth quarter financial results. Joining me this morning is Brian Jellison, Chairman, President and Chief Executive Officer; Paul Soni, Vice President and Controller; and Rob Crisci, Vice President of Planning and Investor Relations.
Earlier this morning, we issued a press release announcing our financial results. The 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.
Now, if you turn to slide two, we begin with our Safe Harbor statement. During the course of today's call, we will be making forward-looking statements, which are subject to risks and uncertainties as described on this page and as further detailed in our SEC filings. You should listen to today's call in the context of that information.
Next slide. Today, we will be discussing our income statement results for the quarter primarily on an adjusted non-GAAP 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 on our website. For the fourth quarter, the difference between our GAAP results and adjusted results consists of three items: First, we completed the divestiture of Abel Pumps during the fourth quarter, resulting in a pre-tax book gain of $70.9 million; this was partially offset by an impairment charge of $9.5 million relating to an imaging investment we made in 2007. Second, a $4 million purchase accounting adjustment to acquire deferred revenue relating to software acquisitions made in 2015. This represents revenue that those companies would have recognized if not for our acquisition. Finally, we have a $2.6 million inventory step-up expense relating to the acquisition of RF Ideas.
Now, if you please turn to slide four, I'll turn the call over to Brian Jellison, Chairman, President and Chief Executive Officer. And after his remarks, we will take questions from our telephone participants. Brian?
Thank you, John. Good morning everybody. So, we'll start off here with our Q4 results. They were flat to last year -- we'll talk a little bit about that -- at $948 million, it's exactly the same number as last year, but there is a lot of activity to get you there. We had another 2 points of FX headwind in the quarter and then the acquisitions net of the Abel divestiture offset the organic shortfall in Energy, primarily. The Industrial and Energy markets declined in the fourth quarter and really had less seasonal adjustment favorably in the fourth quarter than normally, and we'll talk about that when we get to that segment. But we had very strong growth in Medical and the RF segments.
Our gross margins