SARASOTA, Fla., July 26 /PRNewswire-FirstCall/ -- Roper Industries, Inc. (NYSE: ROP) reported financial results for its second quarter ended June 30, 2010.

Net earnings for the second quarter were $71 million, a 20% increase over the second quarter of 2009, and diluted earnings per share (DEPS) were $0.74 compared to $0.64 in the prior year second quarter. Results for the quarter include a $1.9M pre-tax loss due to foreign exchange remeasurement. Sales increased 12% to $567 million and orders increased 27% to a record $619 million, representing a 1.09 book-to-bill ratio. Operating Cash Flow was $110 million, bringing year-to-date operating cash flow to a record $205 million.

Second quarter gross margin expanded to 53.2% and operating margin was 21.0%, an increase of 200 basis points over the prior year. During the quarter, EBITDA grew to $145 million, or 25.7% of sales. Free cash flow represented 18% of sales and 144% of net earnings.

"We are encouraged by the outstanding order growth in our businesses, driven by an 82% increase in Scientific Imaging/Medical, a 32% increase in Energy Systems & Controls and a 31% increase in Industrial Technology," said Brian Jellison, Roper's Chairman, President and CEO. "We were delighted to see organic sales growth return in the second quarter and, with record backlog, we now expect stronger organic sales growth in the second half."

Today, Roper announced the acquisition of iTradeNetwork, Inc. in a $525 million all-cash transaction. iTradeNetwork provides subscription-based hosted software solutions to the food industry that facilitate transactions between retail grocers, restaurant chain operators, foodservice distributors and their respective customers. The Company's SaaS (Software-as-a-Service) solutions serve over 6,200 customers transacting over $250 billion annually. Roper expects iTradeNetwork to generate more than $55 million of EBITDA in 2011.

"iTradeNetwork is an excellent addition to our growing SaaS businesses, complementing the outstanding software services platforms we have built with our CBORD/Horizon and Freight Matching businesses," said Mr. Jellison. "We are excited about the prospects for the year given our record backlog, strong order momentum during the first half, and the strategic acquisition of iTradeNetwork," continued Mr. Jellison.

Third Quarter and Full Year Guidance

Roper is increasing its full year DEPS guidance to $3.05-$3.15 from $2.95-$3.10, and establishing third quarter DEPS guidance of $0.75-$0.80. The Company is increasing its guidance for operating cash flow to $425-$450 million from $400-$425 million. The Company's guidance includes iTradeNetwork but excludes future acquisitions and the first quarter impact of acquisition-related inventory charges.

    Table 1:

                                                     Q2         Q2
                                                  Sales     Orders
                                                 Growth     Growth
                                                 ------     ------
    Total Growth                                   12.3%      26.7%
                                                   ====       ====
       Organic Growth                               5.1%      18.3%
       Acquisitions / Divestitures                  7.2%       8.2%
       Foreign Currency                             0.0%       0.2%

    Table 2:  Free Cash Flow (millions)

                                                     Q2
                                                   2010
                                                   ----
    Sales (A)                                     567.1
    Net Earnings (B)                               71.3

    Operating Cash Flow                          $110.3
    Less: Capital Expenditures                     (7.6)
    Rounding                                       (0.1)
                                                   ----
    Free Cash Flow (C)                           $102.6
                                                 ======

    Free Cash Flow as % of Net Earnings
     (C)/(B)                                        144%
                                                    ===
    Free Cash Flow as % of Q2 Revenue (C)/(A)        18%
                                                    ===

    Table 3:  EBITDA (millions)

                                                     Q2
                                                   2010
                                                   ----
    Net Earnings                                  $71.3
    Add: Interest Expense                          16.3
    Add: Income Taxes                              30.0
    Add: Depreciation and Amortization             27.9
                                                   ====
    EBITDA                                       $145.5
                                                 ======

Conference Call to be Held at 8:30 AM (ET) Today

A conference call to discuss these results has been scheduled for 8:30 AM ET on Monday, July 26, 2010. The call can be accessed via webcast or by dialing +1 888-282-4591 (US/Canada) or +1 719-457-2665, using confirmation code 2045224. Webcast information and conference call materials will be made available in the Investors section of Roper's website (www.roperind.com) prior to the start of the call. Telephonic replays will be available for up to two weeks by calling +1 (719) 457-0820 and using the access code 2045224.

About Roper Industries

Roper Industries is a market-driven, diversified growth company and is a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices. 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 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)

                                                               December
                                              June 30,            31,
    ASSETS                                         2010             2009
    ------                                         ----             ----

    CURRENT ASSETS:
      Cash and cash equivalents                $290,740         $167,708
      Accounts receivable                       347,681          381,658
      Inventories                               170,943          178,795
      Deferred taxes                             26,884           27,306
      Unbilled receivable                        80,327           57,153
      Other current assets                       68,893           58,125
        Total current assets                    985,468          870,745
        --------------------                    -------          -------

    PROPERTY, PLANT AND EQUIPMENT, NET          104,505          109,493
    ----------------------------------          -------          -------

    OTHER ASSETS:
      Goodwill                                2,365,297        2,388,432
      Other intangible assets, net              833,594          868,900
      Deferred taxes                             29,848           33,123
      Other assets                               68,615           57,043
        Total other assets                    3,297,354        3,347,498
        ------------------                    ---------        ---------

    TOTAL ASSETS                             $4,387,327       $4,327,736
    ============                             ==========       ==========


    LIABILITIES AND STOCKHOLDERS' EQUITY
    ------------------------------------

    CURRENT LIABILITIES:
      Accounts payable                         $120,313         $110,103
      Accrued liabilities                       240,393          253,441
      Income taxes payable                            -                -
      Deferred taxes                              1,446            1,671
      Current portion of long-term debt         112,028          112,796
      ---------------------------------         -------          -------
        Total current liabilities               474,180          478,011
        -------------------------               -------          -------

    NONCURRENT LIABILITIES:
      Long-term debt                          1,016,400        1,040,962
      Deferred taxes                            328,578          328,299
      Other liabilities                          60,692           58,974
        Total liabilities                     1,879,850        1,906,246
        -----------------                     ---------        ---------

    STOCKHOLDERS' EQUITY:
      Common stock                                  963              958
      Additional paid-in capital              1,003,289          982,321
      Retained earnings                       1,508,724        1,395,586
      Accumulated other comprehensive
       earnings                                  15,677           63,945
      Treasury stock                            (21,176)         (21,320)
      --------------                            -------          -------
        Total stockholders' equity            2,507,477        2,421,490
        --------------------------            ---------        ---------

    TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY                                  $4,387,327       $4,327,736
    ===================================      ==========       ==========

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

                               Three months
                                  ended             Six months ended
                                June 30,                June 30,
                                --------                --------
                                 2010      2009       2010            2009
                                 ----      ----       ----            ----

    Net sales            $567,104      $504,910 $1,101,545      $1,010,354
    Cost of sales         265,157       249,840    520,033         504,148
    -------------         -------       -------    -------         -------

    Gross profit          301,947       255,070    581,512         506,206

    Selling, general
     and
     administrative       182,760       159,106    361,609         323,450
      expenses            -------       -------    -------         -------
      --------

    Income from
     operations           119,187        95,964    219,903         182,756

    Interest expense       16,293        13,762     32,474          27,271
    Other income/
     (expense)             (1,657)        3,168     (1,210)          2,812
    -------------          ------         -----     ------           -----

     Earnings from
      continuing
      operations          101,237        85,370    186,219         158,297
       before income
        taxes

    Income taxes           29,956        25,782     55,213          47,150
    ------------           ------        ------     ------          ------

    Net Earnings          $71,281       $59,588   $131,006        $111,147
    ============          =======       =======   ========        ========





    Earnings per
     share:
      Basic                 $0.76         $0.66      $1.40           $1.23
      Diluted               $0.74         $0.64      $1.36           $1.20

     Weighted average
      common and common
       equivalent shares
        outstanding:
        Basic              94,011        90,562     93,911          90,348
        Diluted            96,449        92,712     96,235          92,508
        =======            ======        ======     ======          ======

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

                                      Three months ended June 30,
                                      ---------------------------
                                               2010                2009
                                               ----                ----
                                Amount          %         Amount    %
                                ------         ---        ------   ---
    Net sales:
      Industrial Technology     $145,490                  $136,551
      Energy Systems & Controls  119,387                   105,398
      Scientific & Industrial
       Imaging                   128,514                    75,860
      RF Technology              173,713                   187,101
                                 -------                   -------
        Total                   $567,104                  $504,910
        =====                   ========                  ========


    Gross profit:
      Industrial Technology      $73,930       50.8%       $65,732 48.1%
      Energy Systems & Controls   64,803       54.3%        56,296 53.4%
      Scientific & Industrial
       Imaging                    78,307       60.9%        42,466 56.0%
      RF Technology               84,907       48.9%        90,576 48.4%
                                  ------       ----         ------ ----
        Total                   $301,947       53.2%      $255,070 50.5%
        =====                   ========       ====       ======== ====


    Operating profit*:
      Industrial Technology      $38,742       26.6%       $32,484 23.8%
      Energy Systems & Controls   29,072       24.4%        23,193 22.0%
      Scientific & Industrial
       Imaging                    27,796       21.6%        12,401 16.3%
      RF Technology               34,704       20.0%        39,423 21.1%
                                  ------       ----         ------ ----
        Total                   $130,314       23.0%      $107,501 21.3%
        =====                   ========       ====       ======== ====


    Operating profit excluding
      restructuring*:
      Industrial Technology      $38,742       26.6%       $34,060 24.9%
      Energy Systems & Controls   29,072       24.4%        24,325 23.1%
      Scientific & Industrial
       Imaging                    27,796       21.6%        12,968 17.1%
      RF Technology               34,704       20.0%        40,084 21.4%
                                  ------       ----         ------ ----
        Total                   $130,314       23.0%      $111,437 22.1%
        =====                   ========       ====       ======== ====


    Net Orders:
      Industrial Technology     $164,685                  $125,880
      Energy Systems & Controls  126,960                    96,144
      Scientific & Industrial
       Imaging                   135,265                    74,505
      RF Technology              192,419                   192,225
                                 -------                   -------
        Total                   $619,329                  $488,754
        =====                   ========                  ========

                                          Six months ended June 30,
                                          -------------------------
                                                 2010                  2009
                                                 ----                  ----
                                  Amount          %           Amount    %
                                  ------         ---          ------   ---
    Net sales:
      Industrial Technology       $280,802                    $267,192
      Energy Systems & Controls    225,065                     212,009
      Scientific & Industrial
       Imaging                     258,758                     159,980
      RF Technology                336,920                     371,173
                                   -------                     -------
        Total                   $1,101,545                  $1,010,354
        =====                   ==========                  ==========


    Gross profit:
      Industrial Technology       $141,442       50.4%        $128,441 48.1%
      Energy Systems & Controls    118,294       52.6%         111,659 52.7%
      Scientific & Industrial
       Imaging                     155,817       60.2%          88,216 55.1%
      RF Technology                165,959       49.3%         177,890 47.9%
                                   -------       ----          ------- ----
        Total                     $581,512       52.8%        $506,206 50.1%
        =====                     ========       ====         ======== ====


    Operating profit*:
      Industrial Technology        $70,508       25.1%         $61,067 22.9%
      Energy Systems & Controls     47,995       21.3%          40,712 19.2%
      Scientific & Industrial
       Imaging                      57,130       22.1%          28,482 17.8%
      RF Technology                 66,905       19.9%          76,806 20.7%
                                    ------       ----           ------ ----
        Total                     $242,538       22.0%        $207,067 20.5%
        =====                     ========       ====         ======== ====


    Operating profit excluding
      restructuring*:
      Industrial Technology        $70,508       25.1%         $64,437 24.1%
      Energy Systems & Controls     47,995       21.3%          43,236 20.4%
      Scientific & Industrial
       Imaging                      57,130       22.1%          29,602 18.5%
      RF Technology                 66,905       19.9%          77,566 20.9%
                                    ------       ----           ------ ----
        Total                     $242,538       22.0%        $214,841 21.3%
        =====                     ========       ====         ======== ====


    Net Orders:
      Industrial Technology       $318,778                    $265,273
      Energy Systems & Controls    242,260                     193,958
      Scientific & Industrial
       Imaging                     266,375                     151,104
      RF Technology                359,162                     350,008
                                   -------                     -------
        Total                   $1,186,575                    $960,343
        =====                   ==========                    ========

      *  Operating profit is before unallocated corporate general and
      administrative expenses.  These expenses were $11,127 and $11,537
      for the three months ended June 30, 2010 and 2009, respectively and
      $22,635 and $24,311 for the six months ended June 30, 2010 and 2009,
      respectively.

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

                                                  Six months ended
                                                      June 30,
                                                      --------
                                                    2010            2009
                                                    ----            ----

    Net earnings                                $131,006        $111,147
    Non-cash items:
      Depreciation                                18,161          17,520
      Amortization                                38,289          34,308
      Stock-based compensation expense            13,118          14,081
    Income taxes                                   1,910         (16,102)
    Changes in assets and liabilities:
      Receivables                                 (5,000)         48,929
      Inventory                                     (998)          8,740
      Accounts payable                            12,856         (23,568)
      Accrued liabilities                          2,770         (38,828)
    Other, net                                    (6,757)          4,635
    ----------                                    ------           -----
      Cash provided by operating activities      205,355         160,862

    Business acquisitions, net of cash acquired  (14,651)         (1,248)
    Capital expenditures                         (14,113)        (12,359)
    Other, net                                     2,153           8,014
    ----------                                     -----           -----
      Cash used by investing activities          (26,611)         (5,593)

    Principal debt payments                       (3,013)        (86,104)
    Revolver borrowings (payments), net          (40,000)        (19,000)
    Debt issuance costs                                -            (404)
    Dividends                                    (17,793)        (14,850)
    Excess tax benefit from share-based payment    2,862             423
    Proceeds from exercise of stock options        8,489           3,038
    Other, net                                       890            (955)
    ----------                                       ---            ----
      Cash used by financing activities          (48,565)       (117,852)

    Effect of exchange rate changes on cash       (7,147)          5,340
    ---------------------------------------       ------           -----

    Net increase (decrease) in cash and
     equivalents                                 123,032          42,757
    Cash and equivalents, beginning of period    167,708         178,069
    -----------------------------------------    -------         -------

    Cash and equivalents, end of period         $290,740        $220,826
    ===================================         ========        ========

SOURCE Roper Industries, Inc.