Roper Technologies, Inc.

The Roper Technologies First Quarter 2020 Financial Results Conference call will now begin. I will now turn the call over to Mr. Zach Moxie, Vice President of Investor Relations. Please go ahead.

Good morning, and thank you all for joining us as we discuss the first quarter financial results for Roper Technologies. We hope everyone is staying safe and healthy. Joining me on the call this morning are Neil Hunn, President and Chief Executive Officer, Rob Cresci, 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 two. We begin with our safe harbor statement. During today's call, we will make forward-looking statements, which are subject to risks and uncertainties, including the impact of the COVID-19 pandemic. A description can be found 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 three. 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, and purchase accounting adjustments to acquire deferred revenue. And now, if you'll please turn to slide four, I will hand the call over to Neil. After our prepared remarks, we will take questions from our telephone participants. Neil?

Thanks, Zach, and good morning, everyone. First and most importantly, we hope that everyone that is joining us this morning and your families are staying safe and are in good health. With that in mind, our first quarter was quite good. Four percent organic revenue growth, expanding gross and EBITDA margins, and very strong cash flow coming in at 13% above last year. After a brief run-through of Q1's results, I'll turn the call to Rob, and he will discuss our P&L, our balance sheet, and our cash position. We find ourselves in the very fortunate position to have $1 billion of cash on the balance sheet and a completely undrawn $2.5 billion revolver. Then I'll turn to discuss our operational status and our response to the COVID-19 situation. To this end, all of our product businesses are deemed essential, and all our non-production workforce are being productive working remotely from home. As we turn to our segment discussion, the majority of our comments will focus on a detailed view of how our businesses and business models should perform through the current situation. The impacts we're seeing across our diverse set of businesses range from a pause in new license sales for some of our high recurring revenue software businesses, to a positive spike in demand for Verathon's critical medical products, to sharp declines in our industrial and process technology businesses. Following this, we'll break down our Q2 and full year organic revenue guides. In the midst of this global economic shutdown, we are guiding our full year organic revenues to be plus or minus flat. This is a remarkable testament to the durability of our business model. During the discussion of our guidance, we outlined for you the assumptions that would cause our earnings to be on the low or high end of our guidance range. I'll then turn to discuss our outlook for continued capital deployment and end with a summary of a few of the Roper companies that are on the front lines responding to the COVID-19 virus. Finally, we'll turn to your questions. Now let's turn to a brief run-through of our Q1 results. Next slide, please. Q1 was quite good for us. Our businesses continue to work hard to execute strategy and talent offenses, and Q1 is another good data point that what we're doing is taking hold. Revenue grew 4% organically with solid organic growth in three of our four segments. Gross margins and EBITDA margins expanded nicely, and depths came in at $3.05, a nickel above our guidance range. And as we've said for nearly 20 years, cash is the best performance measure, with free cash flow being up 13% in the quarter to $353 million, which was 26% of revenue and 76% of EBITDA. Now I'll turn the call over to Rob to discuss our detailed financial performance.