Roper Industries Conference Call Highlights

Roper Industries ROP reported its second quarter earnings on Monday. Shares of the company are up 2.08 percent.

Below are some key highlights and takeaways from its conference call:

• Operating profits up 18 percent to $247 million in the second quarter.
• Our revenue was up 13 percent in the quarter on a GAAP basis but 10 percent on an adjusted basis.
• Our first half operating cash flow you could see represents 21 percent of revenue at $353 million and our free cash flow at $333 million.
• $845 million of operating cash flow in the last 12 months and that's up from $620 million just two years ago.
• So that's a 35 percent improvement in just two years.
• The year ago, our cash was $375 million. Today it's $565 million.

Guidance:

• We think revenue growth should come in for the full year around 8 percent to 9 percent and organic growth should be around 6 percent to 7 percent now.
• The organic growth when we started the year at the end of 2013 here in the report, we established organic guidance at 4 percent to 7 percent.
• We move the organic guidance up to 5 percent to 7 percent.
• And then, now we're moving at up to 6 percent to 7 percent for the full-year, with 8 percent growth we enjoyed in the second quarter.
• Revenue growth in the third quarter though should be up 5 percent to 6 percent, so we established DEPS guidance here of $1.49 to $1.53.
• Our EBITDA was up 14 percent to $295 million and we've raised our full-year guidance.
• And we had just an excellent first half performance with these record margins organic growth.
• We think our full-year cash conversion will again be outstanding like it was last year.
• And our current acquisition discussions remain mostly in the Medical and Software.