Roper Technologies, Inc. (NYSE:ROP) Q1 2019 Earnings Conference Call Transcript
Apr 25, 2019 • 08:30 am ET
Good day and welcome to the Roper Technologies First Quarter 2019 Financial Results Conference Call. Today's call is being recorded. I will now turn the call over to Zack Moxcey.
Good morning, and thank you all for joining us as we discuss the first quarter financial results for Roper Technologies.
Joining me on the call this morning are Neil Hunn, President and Chief Executive Officer; Rob Crisci, Executive Vice President and Chief Financial Officer; Jason Conley, Vice President and Controller; and Shannon O'Callaghan, Vice President of Finance.
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 are also available on our website.
Now if you'll please turn to Slide 2. We begin with our Safe Harbor statement. During the course of today's call, we will make forward-looking statements, which are subject to risks and uncertainties as described on this page in our press release and in our SEC filings. You should listen to today's call, in the context of that information.
And now, please turn to Slide 3. Today, we will discuss our results for the quarter, primarily on an adjusted non-GAAP basis. Reconciliations between GAAP and adjusted measures can be found in our press release and in the appendix of this presentation on our website. For the first quarter, the difference between our GAAP results and adjusted results consists of the following items: amortization of acquisition-related intangible assets; purchase accounting adjustments to acquired deferred revenue; and lastly, we have adjusted our income statement to exclude the gain on sale from the divestiture of our Scientific Imaging businesses. We've also adjusted our cash flow statement to exclude the cash taxes paid, as a result of the sale. GAAP requires this payment to be classified as an operating cash flow item, even though it is related to the divestiture.
And now, if you'll please turn to Slide 4, I will hand the call over to Neil. After our prepared remarks, we will take questions from our telephone participants. Neil?
Thanks, Zack, and good morning everyone. We'll start our call today with the Enterprise highlights and financial results for the quarter; we'll then turn to our segment detail and outlook, followed by an update to our 2019 guidance and the establishment of our second quarter guidance; and then turn it over to questions.
Next Page. We characterize the first quarter here, as a strong start to the year, with strong organic growth, operating leverage and cash flow, as well as capital deployment. Revenue grew 7% to $1.29 billion with organic growth coming in at 6%. EBITDA improved 13% to $438 million and margins expanded 170 basis points to 34%. Importantly, we saw margin expansion across all four segments, which indicates the breadth of the strength of the quarter.
Free cash flow improved 15% to $312 million or 24% or revenue. It's always great to see