Roper Industries Inc. (Bogart, GA) announced earnings for the quarter ended July 31, 2001 of $0.41 per share (diluted), an increase of 14% over the prior year quarter, ahead of the First Call consensus estimate of $0.39. Year-to-date earnings of $1.28 per share, before second quarter restructuring charges, represent a 16% increase over the $1.10 per share earned in the comparable period of 2000. In line with these results, the firm's Board of Directors has approved a dividend of $0.075 per share payable on October 31, 2001, to stockholders of record on October 17, 2001.
Roper management reports that Q3 sales of $138 million were 11% higher than the $125 million recorded in the third quarter of last year, while pro forma sales, which include acquisitions and exclude the discontinued divisions of Petrotech, increased 2%. Strength in research and energy markets contributed to the increase, which was moderated by weakness in the automotive, semiconductor and industrial markets. Sales for the first nine months of the year increased 18%, from $357 million in 2000 to $422 million.
Year-to-date pro forma sales increased 5%. Net bookings in the third quarter were $132 million, as compared with $139 million in the prior year period, a 5% decrease. Pro forma bookings in the third quarter decreased 11% from the prior year period, primarily on lower demand in the automotive and semiconductor sectors as well as an expected reduction in orders from RAO Gazprom. Year-to-date net bookings of $422 million represent an 11% increase over the $380 million for the same period last year. On a pro forma basis, bookings for the first nine months were 1% lower than the comparable figure last year.
According to Roper management, Q3 EBITDA increased 14% to $0.96 per share (diluted), or 22% of sales. EBITDA for the first three quarters of 2001, before restructuring charges, increased 19% to $2.95 per share, or 22% of sales. Third quarter cash flow from operations increased by 43%, as compared with the prior year period, to $25 million. On a year-to-date basis, the $72 million of cash flow from operations represents a 63% improvement.
“Strong digital imaging project shipments at the end of the quarter enabled Roper to exceed earnings expectations,” adds Derrick N. Key, Roper chairman, president, and CEO. “Our increasing involvement in high growth research markets, as well as our position in expanding energy markets, contributed to another quarter of revenue and earnings improvements. Our companies affected by the current economic downturn contributed by aggressively cutting costs, reducing working capital and trimming capital expenditures. As a result, we expanded our margins, improved working capital turns by 14% and generated a near-record amount of cash.
“We are now realizing the full value of our diversification strategy, with Roper generating earnings growth in difficult economic conditions. Many of our companies are increasing revenue, while others are streamlining operations to maximize cash flow and position themselves for an economic upturn. We continue to invest our strong cash flow to support the growth of our existing companies and acquire higher growth businesses that offer an attractive return, such as the recently announced acquisition of Struers Holdings A/S. When the Struers transaction closes, I expect it to be immediately accretive to our fourth quarter earnings. Through the disciplined execution of our business model, I expect Roper to continue its historic growth trends into the fourth quarter and next year.”