Roper Industries Earnings Call Nuggets: Organic Revenue Growth and Expanded EBITDA Margins
Organic Revenue Growth
Deane Dray – Citi Investment Research: On the Medical side, you were flat on organic revenue growth. Did you see pull in from some of the year-end business getting pulled in maybe related to the pending tax increase or any budget flush?
Brian D. Jellison – Chairman, President and CEO: No, we really didn’t see that at all, and most of our stuff is kind of going direct, so it’s not like a distributor pull in with standard products that some other people might have.
Deane Dray – Citi Investment Research: Then, Brian, when you talk about the acquisition, capacity approaching $2.5 billion for the Medical side, are you more apt to pursue adjacencies, new products, new platforms in SaaS, like you’ve done in Sunquest or would you be looking more on the device side like Verathon and Northern Digital where you can drop a product line into your sales force.
Brian D. Jellison – Chairman, President and CEO: Well, we would and are doing both. You just never know what you’re able to negotiate in terms of what’s the best use of fund. So, we’re always really looking at the asset velocity of things, so the software businesses that have easier hurdle because they always have less assets if the product businesses are such that we think they are well positioned and have great defense mechanisms we’re not opposed to adding to that. As a general rule, there are certainly some product transactions we are looking at now, but most of the things we’re looking at are related to software and service opportunities.