Roper Technologies, Inc. (NYSE: ROP), a leading diversified technology company, reported financial results for the third quarter ended September 30, 2021.
Including discontinued operations, third quarter GAAP diluted earnings per share (“DEPS”) was $2.71, adjusted DEPS was $3.91, EBITDA was $602 million, and operating cash flow was $447 million.
During and subsequent to the third quarter, Roper signed definitive agreements to divest its TransCore, Zetec, and CIVCO Radiotherapy businesses. The financial results for these businesses are reported as discontinued operations for all periods presented.
On a continuing operations basis, GAAP and adjusted revenue increased 22% to $1.46 billion, while organic revenue grew 12%. EBITDA from continuing operations increased 21% to $558 million.
“Operationally, Roper delivered another excellent quarter of performance. Organic revenue growth was 12% and was underpinned by continued solid increases in software recurring revenue. In addition, demand was strong across our portfolio and our product businesses executed well through the global supply chain challenges,” said Neil Hunn, Roper Technologies’ President and CEO.
“Over the past several months, we announced three strategic divestitures that will accelerate the transformation of our portfolio. We anticipate redeploying the net proceeds from these transactions toward our robust pipeline of high-quality acquisition opportunities, enabling us to further enhance the quality of the enterprise,” concluded Mr. Hunn.
Initiating Continuing Operations Guidance:
Roper is initiating full year guidance for adjusted DEPS from continuing operations of $14.08 - $14.12.
Previous full year adjusted DEPS guidance was $15.00 - $15.20, which included the businesses now reported in discontinued operations (on a comparable basis, new guidance would be $15.26 - $15.30).
For the fourth quarter of 2021, the Company expects adjusted DEPS from continuing operations of $3.62 - $3.66.
The Company’s guidance excludes the impact of unannounced future acquisitions or divestitures, as well as any redeployment of proceeds from the announced divestitures.