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Roper Technologies Inc  (NYSE:ROP)
Q1 2019 Earnings Call
April 25, 2019, 8:30 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good day and welcome to the Roper Technologies First Quarter 2019 Financial Results Conference Call. Today's call is being recorded. I will now turn the call over to Zack Moxcey.

Zack Moxcey -- Vice President, Investor Relations

Good morning, and thank you all for joining us as we discuss the first quarter financial results for Roper Technologies. Joining me on the call this morning are Neil Hunn, President and Chief Executive Officer; Rob Crisci, 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 2. We begin with our Safe Harbor statement. During the course of today's call, we will make forward-looking statements, which are subject to risks and uncertainties as described 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 3. 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; purchase accounting adjustments to acquired deferred revenue; and lastly, we have adjusted our income statement to exclude the gain on sale from the divestiture of our Scientific Imaging businesses. We've also adjusted our cash flow statement to exclude the cash taxes paid, as a result of the sale. GAAP requires this payment to be classified as an operating cash flow item, even though it is related to the divestiture.

And now, if you'll please turn to Slide 4, I will hand the call over to Neil. After our prepared remarks, we will take questions from our telephone participants. Neil?

Neil Hunn -- President and Chief Executive Officer

Thanks, Zack, and good morning everyone. We'll start our call today with the Enterprise highlights and financial results for the quarter; we'll then turn to our segment detail and outlook, followed by an update to our 2019 guidance and the establishment of our second quarter guidance; and then turn it over to questions.

Next Page. We characterize the first quarter here, as a strong start to the year, with strong organic growth, operating leverage and cash flow, as well as capital deployment. Revenue grew 7% to $1.29 billion with organic growth coming in at 6%. EBITDA improved 13% to $438 million and margins expanded 170 basis points to 34%. Importantly, we saw margin expansion across all four segments, which indicates the breadth of the strength of the quarter.

Free cash flow improved 15% to $312 million or 24% or revenue. It's always great to see the expansion down the P&L. Revenue grew 7%, EBITDA 13%, free cash flow grew 15%, so the leverage expansion down the P&L is always something we would like to see. Also in the quarter, we announced our new segmentation and we'll talk about that in a few slides. Importantly, we completed the sale of our Scientific Imaging Businesses on February 5th, and we also completed the acquisition of Foundry earlier this month. Certainly, a good quarter.

And now, I will turn it over to Rob to walk us through the P&L.

Robert Crisci -- Executive Vice President and Chief Financial Officer

Thanks, Neil. Good morning, everyone. Turning to the income statement metrics page, revenue grew 7%, 6% organically, as Neil mentioned to $1.288 billion. We had our three largest segments each grew organically between 6% and 9%. Our smallest segment, Process Technologies grew 1%, which did exceed our expectations for the quarter.

Gross margin expanded 50 basis points to 63%, as we continue to benefit from our increased mix of high-margin software businesses. So we are very well positioned should any macro headwinds build around tariffs and material cost inflation or anything like that, really would have minimal impacts for Roper, as they have historically had very minimal impact.

EBITDA grew 13% with EBITDA margin expanding to 34%. We really had very high leverage in the quarter aided by a couple of items, the timing of some perpetual software license wins, where revenue is recognized at the time of delivery, and also some compliance payments at our GPO network business that really come in at close to 100% margins, so that impacted the leverage in the quarter, which was very strong.

Earnings before taxes grew 15%. As you can see our tax rate was lower than expected at 9.7%. This includes a $43 million or $0.41 discrete benefit due to foreign interest tax rate (ph). We've been simplifying our legal entity structure to make it easier to access and repatriate our foreign cash, and as a result, we will be able to realize some net operating losses in the future. So overall, our DEPS of $3.30 was an increase of 26%. If we adjust out for the tax item, we were still at $2.89, which was a very strong quarter for Roper overall.

Moving on to the next Slide, always one of our favorites, the asset-light business model. So the net working capital position at the end of the first quarter, inventory 4.5% of revenue, receivables 16.6%, payables 10.8%, deferred revenue grew to 13.5%, so deferred revenue grew 19% on a year-over-year basis ending the quarter at $694 million. So if you add that altogether, we had negative 3% working capital really for the first quarter three years in a row down to 3.3%.

Foundry, our recent acquisition, which we'll talk more about shortly has a significant negative net working capital balance that will further enhance our position and continue to expand our ability to compound cash flow moving forward. The net working capital for Roper remains a source of cash.

Next Slide. On compounding cash flows, they were aided by our negative net working capital, organic growth, disciplined capital employment. We continue to produce excellent cash flow results and excellent cash flow compounding. The Q1 operating cash flow was $330 million, an increase of 17% versus prior year. As Zack mentioned at the beginning of the call, this excludes the $39 million cash payment related to the Scientific Imaging divestiture completed during the quarter.

Free cash flow, as Neil mentioned grew 15%, representing 24% of revenue. So if you look at it on a TTM basis, we're at nearly $1.5 billion of operating cash flow, up 30% versus prior year, really fantastic results and that represented 28% of revenue over the previous 12 months. So certainly, we believe that cash remains the best measure of performance.

Next Slide. So moving to the strong financial position and the balance sheet slide, we ended the first quarter with our gross debt of $4.5 billion, net debt of $4.1 billion against TTM. EBITDA now approaching $1.9 billion. So our gross debt-to-EBITDA of 2.4 and our net debt-to-EBITDA down always 2.2 times at the end of the quarter. Subsequent to the end of the quarter, we did closed and fund the Foundry acquisition, we really used a combination of cash and debt. So if we adjust for the Foundry acquisition, we are still down to 2.4 times net debt.

Furthermore, the Gatan divestiture would bring an additional $700 million of cash, when that closed, we are assuming in the end of the second quarter in the guidance, and so that would further decrease our leverage position. So in summary, we remain very well positioned to continue to deploy capital moving forward toward our pipeline of high-quality acquisition target.

So with that I will turn it back to Neil to review the segments.

Neil Hunn -- President and Chief Executive Officer

Thanks, Rob. If we can turn now to Page 11, where we're summarizing our new segments. Earlier in the quarter, we did announce the new segments. To remind everyone, our resegmentation process was not a portfolio or business review. Also the resegmentation does not have anything to do with how we run or operate our governance model, but rather how we summarize the activities of our 45 businesses in a manner that is more easily understood by investors and is more consistent with our strategy. So to this end, we chose to resegment based on a business model construct versus end market. As you know, as we deploy capital, we're not constrained by end market, as we are in pursuit of acquiring the best business models available, the essence of our cash return on investment-led strategy. Hence it makes the most sense to organize in this manner.

Starting with Application Software. This is the first of our two software segments. This segment has businesses that are delivering software applications to customers. You can see the businesses included in this segment, Aderant, Deltek, PowerPlan, Strata to name a few. Perhaps the easiest to understand is Aderant. Aderant delivers enterprise application software to law firm. These customers run their business on Aderant software. This segment represented 28% of our 2018 revenues, has gross margins of 67% and EBITDA margins of 40%.

Now turning to our Network, Software & Systems segment. This is our second software segment. These businesses are ones that have a network component to their business model. Think of situations, where the customers drive benefit not only from a software, but also being part of a broader network. An example of the network business is DAT. DAT is our two-sided network that matches thousands of brokers and tens of thousands of carriers in the full truckload spot freight market. This segment represented 26% of our 2018 revenues, has gross margins of 68% and EBITDA margins of 43%.

On the bottom left is our Measurement & Analytical Solutions segment. Think of this segment as one of our two product segments, is diversified in terms of end market and has quite stable long-term growth. This segment has our medical product portfolio, as well as our industrial test and measurement type business. This segment represented 33% of our 2018 revenues at gross margins of 59% and EBITDA margins of 33%.

And finally, on the bottom right is our Process Technologies segment by far our smallest segment and our second product segment. This segment has 10 businesses that are largely indexed to the oil and gas end markets. While this segment represents only 13% of our revenues last year, they have incredible business models, 56% gross margins and 36% EBITDA margin. Clearly, there is still our collection of assets in the space.

Turning to the next Page, Application Software. Revenue in the quarter, which represented 30% of our first quarter results was $382 million, an increase of 7% organically. EBITDA was $149 million, which grew 23% versus the prior year and represented a 39% margin. We saw continued strong performance at Deltek. They turned in high single-digit revenue growth with great operating leverage and multiple enterprise or large customer wins in the quarter. Importantly, we saw continued double-digit growth in our SaaS and subscription revenue streams based on acquiring net new customers and having successful conversions from on-premise to SaaS.

One thing, we may not talk enough about with Deltek is really the balance and durability of their growth drivers. There are many growth drivers for this business. They attack the small and medium-sized businesses, as well as large enterprise businesses. They have the government contracting business or product lines, as well as serve the professional services market. They have North American focus and the European and rest of the world focus. They certainly have an on-premise capability and a SaaS capability. So the business has had a great run of growth and it's not leveraged to one or a small number of growth vectors. It's really tied to a large breadth of opportunity. So great job by the team at Deltek.

We also saw in the quarter outstanding growth at Strata, which was led by strength in its hospital decision support SaaS bookings. We don't talk a lot about Strata. Just to remind you what they do is, this is a core solution used by hospitals and health systems, in particular the CFOs office, the model, the changing nature of hospitals economics. Over the last several years, hospitals have had to be more risk bearing in terms of the care they deliver and as a result, they need to more intimately understand the connections between their cost structure, their risk-based revenue contracts and Strata sells software that provides visibility to that for hospital CFOs and our financial staffs. So great job by Dan and John and the entire team at Strata for the growth they turned in.

We also continue to see share gains in large law coupled with a very successful attach rate of the new SaaS billing product at Aderant. Great job with the continuation of the execution there.

PowerPlan is focused on building pipeline in their core product offerings following a very strong lease accounting software demand over the past several quarters. And finally, we'll highlight CBORD's growth in their food and nutrition software sales to their healthcare end market.

As we turn to the outlook, for the balance of the year, we see 4% to 6% organic growth in this segment. The second quarter EBITDA margins we see coming in similar to that of the first quarter, as we expect a greater mix of SaaS versus perpetual in the second quarter, as compared to last year. This is particularly driven by our strategy of pacing our SaaS conversions at the pace of that our customers desire. So the results in sum (ph) will vary quarter-to-quarter or have some fluctuations quarter-to-quarter based on the mix between SaaS and on-premise. For instance, Deltek had very strong perpetual in the second quarter of last year and the first quarter of this year.

So before we turn to the next slide, last quarter, we talked generically about our SaaS or cloud migration strategy, the long-term benefits that will be enjoyed by our customers and the positive implications for our business model. To briefly summarize, first and importantly, we asked our businesses to move at the pace of our customers versus forcing the conversion on our timetable. Time and time again this has proven to be the winning strategy. In several cases, we've been the benefactor of competitors decisions to force the timetable, as our customers have migrated to our solutions. Next, we believe the SaaS deployment model has many inherent benefits for the customer, easier enablement of upgrades and new features, lower cost of total ownership, elimination of technical operations and a single (inaudible) to name a few.

Relative to our business model, the cloud transition greatly enhances the ability to sell and deploy add-on products, deploy new features more broadly and at a faster pace, drive increased back office and tech stack efficiencies, improved cash return on investment, all while being a net growth driver. Also, let's not forget that all our software solutions are very specific built for purpose solutions targeted at solving very specific customer pain points, the essence of our net strategy. All of our software businesses are in some phase of their cloud migration, again paced by our customers interest and moving to the cloud. One example, a good example of our cloud migration experience could be highlighted with Deltek.

Deltek launched its cloud offering in 2011 over eight years ago. Over this period, they deployed over 10,000 customers through their cloud offering. Importantly, during Roper's ownership, we've invested significantly north of 15% of revenue in R&D, much of which has been centered on user experience, building and launching new products, such as Vantagepoint and the continual migration of our tech stack to the cloud.

By pacing at their clients desire to move to the cloud, Deltek has been quite successful at keeping a very modern code base and tech stack, while building new products and delivering new product features. All of this has resulted in consistent high single-digit organic growth and increase in recurring revenue to be approximately 70% and the continuation of very high customer retention rates.

Next slide, please. Network, Software & Systems revenue in the quarter represented 27% of Roper's revenue and was $346 million, which indicated a 9% increase organically. EBITDA was $150 million and represented a 43.3% margin. In the quarter, we saw this excellent growth at DAT from continued net subscriber adds and increased revenue per customer. It's important to note that this network has value to its constituents in different macroeconomic environment. Regardless, the value is very strong whether the trucking and shipping market is running hot, there's value to the participants or if they cool off a little bit, as we saw in the second quarter, it still has tremendous value, as shippers and carriers were trying to match networks for the loads. So we saw very nice growth in the quarter at the DAT business.

We also saw strong performance at MHA from market share gains and vendor contract compliance. To remind you, MHA is our network that connects thousands of healthcare providers to hundreds of vendors in the marketplace in a procurement network. And so it's great to see the strong performance in MHA.

iTrade grew based on strong renewal activity in net subscriber additions. And late in the first quarter, iTrade announced a Blockchain initiative with the goal to increase safety, sustainability and visibility of the food supply chain. Using Blockchain or a decentralized ledger, iTrade will more easily enable interested parties to gain access to the relevant data. iTrade will leverage its network of over 5,000 growers, retailers, distributors, restaurant operators and logistics providers and building the network. Importantly, most of the data needed for this farm to fork traceability blockchain already exists natively within the iTrade applications. The iTrade blockchain is designed for interoperability using the same industry standards utilized by IBM Foot Trust and others. This is a great example of the leadership position that many of our businesses take within their industry niche.

We saw double-digit growth from RF IDeas in a secure print and identity management solution. This is a business we acquired a number of years ago. It's really a fantastic business. What they do is, think of the security badge you have to get into your building from a physical perspective. RF IDeas makes an integrated reader that readers the hundreds of protocols for the security badges and the readers used in non-security situations. So imagine, secure print, the printer companies OEMs embed our reader and the printers and then you can go use any of these security protocols to then credential (ph) you to have a secure print or in the healthcare setting think about secure sign-on for doctors and nurses relative to the electronic medical record instead of having to type their name and password and they can use their credential and allows them to see more patients. So the Company has done a great job at working with scores of OEMs embed their technology into their end application, and we've seen great growth over several quarters at RF IDeas.

When we turn to TransCore, they had again excellent execution on the back office software and services and they always do a great job with the tolling project execution and we saw low single-digit growth than that business. And as we mentioned earlier, we completed the acquisition of Foundry last week that business as a network, we will ascribe that here shortly. It will be housed into our Network Software & Systems segment.

So we turn to the outlook for the 2Q to 4Q, we see 4% to 6% organic growth for this segment for the balance of the year. We also see Q2, '19 EBITDA margins to be similar to that at Q1. And before we turn to the next slide and specific to a targeted TransCore pursuit, we'd be honored, if we were to be selected to be the technology and implementation partner for the Manhattan congestion pricing initiatives. While still in procurement, TransCore deployed it's very best team and look forward to working with the authority if given the opportunity.

Next slide, the Foundry acquisition. Boy, this is just a great acquisition for us and it meets all of our criteria. Starting it has tremendous cash flow characteristics and negative net working capital. So it checks the box clearly and unambiguously from a cash return point of view. The management team that we met is really feller. Often times, when you are meeting with management teams, they have six people or so, you are meeting during the process and you like the majority of them, but there's always one or two that you're not so sure about, in this case the entire team was just fantastic from top to bottom and we're excited to work with them. In a minute, we'll talk about in detail the niche orientation they have and the clear leadership position they have in that niche, but they are clearly the standard in what they do. And as a result, they have super deep domain experience, high recurring revenues given their long tenure and what they do and then multiple opportunities to grow.

The purchase price was GBP410 million and we view it to be immediately cash accretive. For the first 12 months of ownership, we expect there to be about $75 million of revenue come in roughly at 40% EBITDA margins. There'll be about $25 million of unlevered free cash flow, and we view this as a high single digit organic grower.

Foundry is a great niche software business that enjoys several network benefits and we're excited to have them joined the Roper family, but first what do they do? Foundry software is used to composite or combined visual effects, animation and 3D content in the media and entertainment and digital design industry. So what does this mean? By a way of examples, and if you're a Game of Thrones fan and no spoilers here, the compositing or combining of all the periods themes with computer generated Dragons with live-action fire with the computer generated legions of soldiers is enabled and completed by Foundry software solutions.

With its 20 years of history, Foundry has become the standard for compositing in the media and entertainment industry. In digital design, Foundry addresses the gap in the market for artist friendly, 3D software used in design. With Foundry software, their clients are able to create photo ready designs of new product concepts that massively reduce new product development timetables with significantly lower supply chain risk. Foundry's customers range from Pixar to Mercedes to New Balance. Importantly, the business has over 30,000 customers and has deeply embedded global ecosystem or network of evangelists. The vast majority of computer graphic art students are trained in college on Foundry's application. They learn to composite using Foundry. Given the increase in computer generated visual effects and virtually all media productions, the supply chain is developed in such a manner that Foundry is the communication standard for the outsourcing of visual effects. Foundry again is the standard tool used across the media and entertainment as we use for compositing. In fact, Foundry has been used on every VFX after award-winning film for the past decade. We believe Roper's long term ownership and investment model will help extend Foundry's network effects and industry-leading position. Foundry is another great net software business for Roper.

Next slide, and turning to our Measurement & Analytical Solutions segment. The revenues represented 31% of our aggregate revenues across the enterprise in the quarter and were $402 million, an increase of 6% organically. EBITDA came in at $128 million and represented a 31.9% margin. We will start as we always do with highlighting Neptune's continued high single-digit growth from their continued share gains driven by their customer-focused innovations. No weather impact there.

Verathon had very solid execution of its new product launch for its next generation GlideScope System. It's off to a good start from the launch perspective, but it's still early and we'll watch closely, as how it unfolds for the balance of the year.

We had a record quarter at Northern Digital driven by optical measurement systems and consumables growth. From time to time, we talk about Northern Digital, but just to remind you, this is our measurement science business that has two core technologies, electromagnetics and optical that's used principally in healthcare applications and embedded in OEMs solutions, and they measure with great precision, where the tip of a surgeon instrument might be in brain surgery or the tip of a catheter might be in the cardiac procedure and many other. So it's just a fantastic business there and clearly the world's best at what they do and that we see it in the finance results in consistent. So really great job by Dave and team up in Canada for doing a great job not just this quarter, but over a long period of time.

CIVCO Medical Solutions had very broad-based growth driven by channel investments that we made over the course of last year. So it's great to see that business get even more intimate with the customers and see the results financially. Struers growth came from sales of equipment and consumables to multiple industrial end markets. And to remind you Struers is our industrial materials prep and analysis business. Gatan saw double-digit growth from the delivery of its next-generation Cryo-EM backlog. As we mentioned at the onset of the call, we completed the divestiture of our Scientific Imaging Businesses, but we did so a bit earlier than expected actually provided between a $0.02 and a $0.03 headwind or impact versus what we thought was happened simply based on closing that transaction a bit earlier than we thought.

As we turn to the outlook, we see segment revenues plus 4% to 6% organically for the balance of the year. However, for the second quarter, we expect low single-digit growth due to the timing of Gatan shipments pushing out of the second quarter. This is a $0.05 (ph) DEPS negative impact as compared to our expectation from a quarter ago. Finally, we continue to assume Gatan sale to Thermo will close at the end of the second quarter.

Next slide. Process Technologies, which represented 12% of revenue in the quarter. Revenue was $158 million or an increase of 1% organic and EBITDA was $53 million or an margin of 33.5% just spectacular businesses here. Cornell grew double-digits from great performance in its industrial end markets, and we saw particular strength in its aftermarket activity. As we have highlighted in past quarters, CCC grew in this quarter high single-digits from execution against new LNG construction projects. Currently, there's 11 projects slated for construction around the globe. We're spec'd for of them and have a chance to be spec'd in the final one. So we believe there will be a series of quarters here of strong performance at CCC.

We saw declines as expected from our Upstream oil and gas businesses due principally to prior comps in the prior period. While Upstream oil and gas in this segment is about 25% of this segment. Based on this quarter's slightly better performance versus our expectation and our quarterly reviews with our businesses, we are modestly increasing our outlook to be down 1% to 3% organically for the balance of the year versus down 1% to 5% for the whole year. We expect the second quarter to be roughly sequentially flattish to that of the first quarter. This equates to the second quarter being down high single digits, which is consistent with our initial outlook and due principally to a plus 20% comp from a year ago. Again, we see flattish revenue sequentially. For the second half, we see the business roughly flat on a year-over-year basis based on easing comps. So we remain cautious in our outlook here. The planned takeaway capacity comes online, as expected, and/or energy prices remain higher than there may be some second half upside, we'll have to wait and see.

Now let's turn to our guidance. We continue to be positioned for a strong 2019 and as such, we're raising our full-year 2019 guidance. Adjusted DEPS is now $12.70 to $13.00, where previously it was $12.00 to $12.40. This includes the Foundry acquisition, which closed on April 18th. The guidance continues to assume June 30th Gatan close. We're also improving our organic growth outlook to be 4% to 5%, where previously it was 3% to 5%. Our tax rate, we assume is approximately 22% for the balance of the year. Also, we're establishing our second quarter 2019 guidance with adjusted DEPS in the range of $3.00 to $3.04.

Turn to the Q1 summary. Again, a great start. Our diversified portfolio of business delivered another excellent quarter. Record first quarter results. We saw organic revenue grew 6%, EBITDA grew 13% and importantly margins expanded in all four of our segments with very broad execution. Free cash flow grew 15% to $312 million, which represented 24% of revenue. So great to see the leverage down the P&L, again organic revenue plus 6%, EBITDA plus 13% and free cash flow plus 15%.

It always starts with our CRI discipline and we believe our proven business model provides a very scalable platform for continued growth. To this end, following our announcement of Satish Maripuri last quarter, we are delighted to share that Harold Flynn recently joined the Roper leadership team. Harold will focus his efforts on providing Group leadership to a number of our product businesses. Harold is a very seasoned executive with experience at IDEXX Laboratories, Abbott and Zimmer. The combination of Jeff Paulsen, Chris Krieps and Harold will provide leadership to our portfolio of product companies. Like Satish, Harold deeply understands Roper, our model, our approach. We are very excited to welcome Harold to our leadership team.

Now turning to capital deployment. We're excited to have closed the Foundry transaction earlier this month. As we described earlier, we view this to be a near-perfect fit against our niche strategy and our network strategy and are excited to welcome Craig, Martin, Jody and the entire Foundry team to the Roper family. Setting Foundry aside, we continue to be excited about our capital deployment prospects in 2019. As Rob mentioned, our balance sheet remains super well positioned for strong capital deployment for the balance of the year. The number of very high-quality assets we've seen in the last several months continues to be encouraging and our pipeline is quite full. Importantly, our CRI orientation and M&A process help us identify the very best businesses to acquire.

Now, as we turn to questions, we want to remind everyone that what we do is very simple. We compound cash flow by running a portfolio of operating businesses that have market-leading positions in niche industry. We provide the business leaders with socratic coaching about what great looks like relative to strategy, operations, innovation and talent development. We incent our management teams based on growth. We have a culture of mutual trust and transparency. And finally, we'll take our excess free cash flow and deploy it to buy businesses that have better cash returns than our existing company. These simple ideas deliver powerful results.

We'll now turn it over to question.

Questions and Answers:

Operator

Thank you. We will now go to our question-and-answer portion of the call. (Operator Instructions) We'll take our first question from Deane Dray with RBC Capital Markets.

Deane Dray -- RBC Capital Markets -- Analyst

Thank you. Good morning, everyone.

Neil Hunn -- President and Chief Executive Officer

Good morning, Dean.

Robert Crisci -- Executive Vice President and Chief Financial Officer

Good morning.

Deane Dray -- RBC Capital Markets -- Analyst

Hey wanted -- just start off with the comment that we appreciate all the hard work that went into the resegmentation and as promised this recasting just makes a lot of sense, and it's easier to see and explain the portfolio. So thank you for all that -- getting that to the finish line. And on Foundry, just your comments this morning, just let you know, you had me at Game of Thrones, so that -- that actually work for us. So first question is on Deltek and it was interesting that you recently had a big database software cloud provider actually call out Deltek as an opportunity for them. Our experience it's been a good businesses with attractive margins, can attract new competitors, but what do you make of this? And maybe some comments about the moat that Deltek has? And how you expect this to play out? Thanks.

Neil Hunn -- President and Chief Executive Officer

Yeah. I appreciate the question. The -- we read the same comments. There was a series of companies that were listed, so we'll talk specifically about Deltek. I can't comment at all about the other companies that were listed and we certainly highlighted a number of those when we went through the -- our SaaS strategy with Deltek. But I think perhaps the most important thing to start with is that not just Deltek, but all of our businesses are in niches and have very specific built for purpose software aimed at a specific user. And so, if you think about Deltek government contracting, right. It is a -- we are the acts (ph) in that space from a software perspective virtually every large enterprise uses our software because of -- it does what it does so well, you don't have to customize it or tweak it or tune it, it's both on premise and in the cloud, and then you have a considerable amount of R&D resources that are -- that are just 100% focused on making that product better.

Same thing can be said for the professional services end market. Deltek does not attack professional services broadly. They attack architects. They attack engineering firms. They attack marketing services firms, accounting firms, so very targeted. And the -- the way those businesses run their business are not just generic to professional services. And so you buy our software out of the box and a normal marketing services firm can actually deploy without any customizations at all in any way, shape or form, where the larger places (ph), you have to go through an SI layer and do sort of customizations, then you have to worry about upgradability of those and whatnot. So the core of what we do is preferred by our customers and that's seen time and time again with win rates in excess of 50% when you go head to head for net new opportunities against the larger players. And then from a code base, tech stack, cloud strategy, I think, we're as current as anybody can be in that business.

Deane Dray -- RBC Capital Markets -- Analyst

Okay. That's all really helpful. Appreciate it. And then just as a follow-up, can you clarify what the drivers are on the boost to the low end of organic revenue growth for the year?

Robert Crisci -- Executive Vice President and Chief Financial Officer

Yeah, sure. Good morning. This is Rob. I think overall, we certainly have some outperformance in the first quarter, and I think if we look at -- at all of our segments, we see sort of at least as good as originally planned or a little bit better, I think specifically in the Process Technology segment, which is the smallest segment. We -- we upped our outlook there, where we're not seeing sort of a downside as bad as we saw coming in, and so we just up the bottom of the range a little bit. I'd say overall, little bit of -- of outperformance everywhere and a little bit of better outlook everywhere.

Deane Dray -- RBC Capital Markets -- Analyst

Good to hear. Thank you.

Neil Hunn -- President and Chief Executive Officer

Thank you.

Operator

We will take our next question from Christopher Glynn with Oppenheimer.

Christopher Glynn -- Oppenheimer -- Analyst

So the -- some of the businesses you acquire a lot -- always interesting thing about the network effect clearly Foundry seems prohibitive of competitive risk. I'm wondering particularly with the Network segment. If any of these stronger results are kind of kicking into a higher gear, potentially you're accelerating network effect breakout? And I'll anchor the question around MHA and iTrade maybe suggest that dynamic?

Neil Hunn -- President and Chief Executive Officer

So I'll start broadly and then try to get specific to iTrade and MHA. So I would not characterize that -- it's like -- it's breakout of networks, right. We've seen that consistently at DAT. It's truly a two-sided network, where both sides incrementally gain more value, if the size and network improves. ConstructConnect, iTrade are examples of what we call one-sided networks, where you need sort of the anchor tenants and ConstructConnect, which is the general contractors and then -- and iTrade, the retailers to be in the network and then it drives supply chain efficiency through. So we've seen just good solid execution across those businesses. So it's not -- it is -- it has a network effect, but it's not one, where -- it's driven because of the execution of the software and the sales -- of the -- and the -- the distribution capabilities of the business.

On MHA, this is our group purchasing organization. They've continually done a great job of retaining their customers, adding customers, adding new products to the portfolio that our providers -- healthcare providers can -- can buy. And then there is, what we call compliance activities both Rob and I called it out, this is where you're just constantly monitoring make sure that both sides of the network pay what they need to pay in the network and there was a large amount of that activity in the quarter. So it's nice to see that.

Christopher Glynn -- Oppenheimer -- Analyst

Thank you.

Neil Hunn -- President and Chief Executive Officer

Yeah.

Operator

And with JPMorgan, we'll hear from Steve Tusa.

Patrick Baumann -- JPMorgan -- Analyst

Hi, guys, thanks for taking my question. This is actually Pat Baumann for Steve Tusa. A quick follow-up to Deane's question on the bridge -- on the organic raise. Can you bridge us on the EPS raise for the year -- for the year as well, the $0.65 at the midpoint?

Robert Crisci -- Executive Vice President and Chief Financial Officer

Sure. So the $0.41 discrete tax item we mentioned. If you look at M&A, it's -- we've got around $0.07 or so net of incremental M&A, while we had the call around $0.14 per Foundry. As Neil mentioned, we lost $0.02 or $0.03 from the Imaging transaction closing sooner than expected that actually hit in the first quarter. And then there's around $0.05 for the Gatan shipments, so they are -- they are slipping to the period, where we don't expect to own the business anymore. So if you net all that together, you get $0.07. And then the remainder $0.17 or so that's your -- your sort of just better operations, better margins and better organic growth throughout the portfolio.

Patrick Baumann -- JPMorgan -- Analyst

Got you. That's really helpful. Thanks for the color. And then maybe circling back to a lot of obviously commentary on Deltek given the comments from -- from that large company. You said it was up high single-digit organically in the quarter, just wanted to kind of step back and if you could offer some perspective on how has that business grown organically since you bought it back in 2016. I think you were kind of alluding to a high single-digit type growth rate, but just wanted to confirm that? And then --

Robert Crisci -- Executive Vice President and Chief Financial Officer

No, that's right. Yeah, it's been high single-digit organic since we bought it, which is better than we expected. We expected mid single.

Neil Hunn -- President and Chief Executive Officer

Yeah. And I -- we highlighted that when we talked about at the Deltek SaaS migration that's resulted in the high single-digit growth since we've owned it.

Patrick Baumann -- JPMorgan -- Analyst

Yeah. Yeah. And then -- and then also, just wondering if you guys done any deals there since acquiring it. Just curious like what kind of deals you've done to try to bolster the business if at all?

Neil Hunn -- President and Chief Executive Officer

There's been a couple of bolt-ons. Now, the high single-digit, we talk about is organic, right. So the -- the growth there is not --

Robert Crisci -- Executive Vice President and Chief Financial Officer

It's quite high, if you include the M&A that we've done. We've done --

Neil Hunn -- President and Chief Executive Officer

Exactly.

Robert Crisci -- Executive Vice President and Chief Financial Officer

Several acquisitions also to add to that business.

Neil Hunn -- President and Chief Executive Officer

Small tuck-ins, generally characterized as products that can be sold to the existing customer base. We talked about ConceptShare and WorkBook in the past to name a couple.

Patrick Baumann -- JPMorgan -- Analyst

So what is the revenue base now? If you don't mind sharing some -- some color on that?

Robert Crisci -- Executive Vice President and Chief Financial Officer

I mean, we don't like to give exact revenue numbers on our businesses. But I think we said it would be $550 million (ph) the first year we owned it way over $100 million on top of that $550 million.

Patrick Baumann -- JPMorgan -- Analyst

Okay, great. Thanks for the color and congrats on results.

Neil Hunn -- President and Chief Executive Officer

Thank you.

Operator

Next is Julian Mitchell with Barclays.

Lee Sandquist -- Barclays -- Analyst

Hey, good morning. This is Lee Sandquist on for Julian. You highlighted double digits SaaS growth at Application Software. How big is the SaaS business today? And secondly, can you just provide a little bit of color about the margin differential here versus other software models in your own portfolio?

Neil Hunn -- President and Chief Executive Officer

So I'll take the first part of this and let Rob follow up. So we talked about double-digit SaaS at Deltek, I just -- I want to be clear in our commentary there that's not a broad Roper statement. And I'll let Rob talk about the percentage of the total revenue of Roper that's software and SaaS.

Robert Crisci -- Executive Vice President and Chief Financial Officer

Yeah. So I mean where we sit today of the -- of the software revenue is pretty evenly split from a SaaS subscription model and a license on-prem model and that's been moving more toward SaaS and we'll -- we expect that to continue. But as we sit here today the business models are roughly the same about even. And then as we've talked about in the past EBITDA -- software EBITDA for Roper's is -- is in excess of 50% at this point and time.

Lee Sandquist -- Barclays -- Analyst

Okay. And then Compressor Controls has put together several nice quarters in a row now. How far below peak are we? And then secondly, how large is the LNG exposure since you called it out in that business?

Robert Crisci -- Executive Vice President and Chief Financial Officer

Yeah. So Compressor Controls is historically a late cycle business, so it just bottomed out later than the rest of the oil and gas businesses and it has begun growing since sometime late last year. And I think it's an opportunity there with lot of -- Neil mentioned a lot of LNG opportunities out there that we expect to get our fair share of. So this business is the size it, it's roughly 20% of our Process Technology segment. So I think those -- there is upside sort of tailwind opportunity there exciting, but again, it's a reasonably small part of the overall Roper portfolio and a small part of the segment.

Neil Hunn -- President and Chief Executive Officer

I would add. It's the -- it's obviously highly indexed to LNG is what they do, but it's not just tied to new. I mean, there is -- there is a lot of retrofit and brownfield activity as well that they consistently add channel capacity to identify and the capability to drive upgrades there.

Lee Sandquist -- Barclays -- Analyst

Great. Thanks a lot.

Neil Hunn -- President and Chief Executive Officer

Thanks.

Operator

And we'll hear from Robert McCarthy with Stephens.

Robert McCarthy -- Stephens -- Analyst

Hi, this is Robert McCarthy on for Robert McCarthy, how are you today?

Neil Hunn -- President and Chief Executive Officer

Thank you for joining.

Robert McCarthy -- Stephens -- Analyst

Well -- yeah no, well, I think a lot of people are trapped in, they can cross a lot of landmines right now across the bunch of different calls. So one thing, I wanted to catch up on in all seriousness is and I apologize if I missed this in your prepared remarks. What is the update you can provide with respect to Gatan and -- and the potential divestiture there?

Neil Hunn -- President and Chief Executive Officer

So the update is -- it's -- as we talked about it's in our guidance through the end of the second quarter. We're in along with Thermo. We've been working through the regulatory process with the UK CMA. And we're hopeful that concludes here at the end of the second quarter.

Robert McCarthy -- Stephens -- Analyst

Okay. So you're still confident that this can be done?

Neil Hunn -- President and Chief Executive Officer

Certainly, there's lots of resources working on -- on clearing the CMA's objections.

Robert McCarthy -- Stephens -- Analyst

Okay. No, well, thank you for that color. And then maybe you could talk about -- I think you mentioned is it Harold Flynn?

Neil Hunn -- President and Chief Executive Officer

Yes.

Robert McCarthy -- Stephens -- Analyst

Yeah. You could maybe give just -- amplify kind of what he is going to bring to the table, talk about as his background, his experience and what you're really looking for two or three key things that you think is really going to help you kind of use him to enhance the governance and -- and kind of coaching across the platform?

Neil Hunn -- President and Chief Executive Officer

Sure. So first, what is the role of the Group Executive here, right. The role is to help coach both the companies to become great and achieve greatness and help the leaders in the businesses become great leaders, right. Now, we think about that across many dimensions, but three principal ones are how do you develop strategy we want that to be very much outside in and focus on answering two questions, where to play and how to win. We care a lot about how that strategy is executed. We wanted to not be a project of the leadership teams or the companies. We want to be process enabling and so that it can endure a long period of time (technical difficulty). Third thing is we care a lot about how our teams develop their talent, engage their talent and run a talent offense. And so the Group Executive layer is focused on those three things, strategy, strategy, to deployment and talent broadly speaking in addition to the day-to-day and week-to-week things that come up.

So Harold, it's not just Harold, but in the product business, there is Chris and Jeff that I mentioned, their job is to do that. And Harold's case and I would say, this is the case for all of our Group people, they're very growth and process oriented. They have a strong orientation toward talent. They are super strong cultural fit. There is -- they are probably nothing more important in our vetting exercise here, where only 50 people in this office or 55 people in Sarasota, there is only a handful of these Group Executives and we need that cultural fit to be really tight, which it is with Harold.

And then a thing about Harold, and again, I wouldn't isolate him like Satish this way (ph) and the other team as well, as I would consider them sort of learning executives. So they're constantly learning and adapting their style and understanding what Roper is about, right. We want to Roperise (ph) them and have them take the Roper governance system out to the companies. And then, you certainly to be successful here, you have to be financially savvy. That's how I characterize the role and Harold and the team that he works with.

Robert McCarthy -- Stephens -- Analyst

If I could just sneak one more in, since I showed up in person, maybe you could just talk about level setting our expectations were acquisitions, in terms of firepower opportunity set. And maybe you could comment on the pricing of assets in a competitive environment?

Neil Hunn -- President and Chief Executive Officer

Okay. So as Rob and I both mentioned Foundry is just the beginning. We have a very strong balance sheet. We've worked hard to get the balance sheet to be offensively position, which it clearly is, and so, we feel great about that. The pipelines, we said it now for several quarters, it's very robust. The quality of the assets is quite high. As you know, we're always trying to buy things that are a little bit better than what we are. It's been the hallmark of our strategy for a long period of time.

So relative to the pricing, the assets we want, the things that have all the defensive characteristics, network characteristics, great management teams, the negative net working cash flow, mid to high single digit organic growers, low capital intensity, those assets are not inexpensive. But -- but CRI orientation is always value to be gained by our shareholders by deploying capital against those type of assets. So we feel very good about it. We feel very confident about our future here for the type of (inaudible).

Robert Crisci -- Executive Vice President and Chief Financial Officer

And on the balance sheet, I think we both mentioned in our comments earlier that the balance sheet is very well positioned. So in the low-2s from a net debt-to-EBITDA standpoint, we're obviously deeply committed to investment grade, but we also have TTM EBITDA approaching $2 billion. So we also have $700 million that would come in, as the -- as the Gatan deal closes. So with or without that $700 million, we can easily deploy $1.5 billion (ph) or more on M&A whenever the opportunity arises.

Neil Hunn -- President and Chief Executive Officer

Yeah. And from a competitive situation, I would say it's largely unchanged. If there is a super strategic that's going to bear a lot of synergies, we -- we are not and have never been a viable competitor for that target. We're almost always the feedstock of candid targets for us. It principally comes out of private equity. And then at the finish line, we are normally competing against private equity. And so -- and in the asset that we described, where the management teams are builders and growers and are attracted our model, we tend to compete and win at a very high clip when all the things lineup.

Robert McCarthy -- Stephens -- Analyst

Thanks very much. And I think you're going to get a nice flight to quality than today. Congrats on the quarter.

Neil Hunn -- President and Chief Executive Officer

Thank you so much.

Robert Crisci -- Executive Vice President and Chief Financial Officer

Thanks, Rob.

Operator

We'll hear from Joe Giordano with Cowen and Company.

Joseph Giordano -- Cowen and Company -- Analyst

Hi, guys, good morning.

Neil Hunn -- President and Chief Executive Officer

Good morning.

Joseph Giordano -- Cowen and Company -- Analyst

So I think when you announced Foundry, when you go through the financials of it, it clearly fits the profile, but I think there was at least some thought of OK now that -- now we're getting into like Pixar and some things that we're not used to like. Can you maybe just talk about how you guys conceptualize these things internally, as there are -- there are -- there almost seems like there is no bridge that's too far, when you're looking at it strictly from a financial standpoint? But how do you get comfortable with, you know, key man risk (ph) at those individual businesses and your ability to be able to run those businesses in that kind of framework things like that?

Neil Hunn -- President and Chief Executive Officer

Sure. So I might have misunderstood a part of that question, but I'll just -- I'll clarify it. So -- so it's on the record. So not a bridge too far financially. I mean, so these are always sort of processes --

Joseph Giordano -- Cowen and Company -- Analyst

No, no, definitely not, definitely not.

Neil Hunn -- President and Chief Executive Officer

But It's not -- it's not just fine. Okay. I understand. So we'll go through our process, right. So the process is doesn't meet our CRI thresholds, yes or no. This one clearly does. Then it's about, does the management team, are they going to really thrive in our environment and an easy simple way to think about that is, are they fundamentally about intrinsically motivated about building their business. So we're engaged with this team, which we are able to do a couple of times before the process started, it's very clear that this team is completely passion about what they do, they've been doing it for a very long period of time. The technology officers in this business actually have personal awards for what they've done in this animation sort of compositing space. And so they are built for purpose for this business.

Then we get into, is it a business we like and that's does it and it acts as a (ph) leader network effects, all things we've been through many, many times. And so one of the things we did as a team, think through is, hey it's meeting all these criteria, but is it -- does it do something that's sort of sexy and do we -- do we not like it because of that. And at the end of the day because it meet -- met all the criteria, so perfectly like hey, it's a software business at the end of the day. And what they do is, they do things that you can see on HBO and other places unlike things, the other things in Roper, but it's really at the end of the day, a pretty boring software business.

Joseph Giordano -- Cowen and Company -- Analyst

Is there maybe -- if I ask that a different way without naming any anything specific obviously. Are there examples that you can tell us of companies that have met the financial criteria, but when you -- you guys get in the room, you like, do we really even understand what's going on here at this business and maybe we -- maybe we're not the right owners?

Neil Hunn -- President and Chief Executive Officer

All the time, right. And so we see scores of amazing CRI businesses and then we start doing the work. I would say the number one reason, we walk away if it's a -- if it meets our financial criteria is just the management team. For one reason or another, they're just not about builders, so there is not good chemistry or you worry that they're going to leave in a short period of time.

And then if you're still comfortable there, if there is a product that we worry about could there be if there's -- if we view, there's any sort of zero in the Monte Carlo analysis, then we generally are walking away, right. Being long-term owners, we don't want to onboard any of that risk. So we spoke a lot of time about that.

Robert Crisci -- Executive Vice President and Chief Financial Officer

And if we -- if we don't yet know the industry well, we do a ton of work around the industry with outside consultants and there's a lot, lot of work that goes on and there is many readouts and if anything scares us away, we just say, no, we walk away and that happens all the time.

Joseph Giordano -- Cowen and Company -- Analyst

Thanks guys.

Neil Hunn -- President and Chief Executive Officer

Yeah. Thank you.

Operator

And we'll next hear from Joshua Aguilar of Morningstar.

Joshua Aguilar -- Morningstar -- Analyst

Hey, guys, can you hear me.

Neil Hunn -- President and Chief Executive Officer

Yes. Good morning.

Joshua Aguilar -- Morningstar -- Analyst

Yeah, hey, how is it going. Hey, we were, so I wanted to go back a little bit to like the annual contract values? I think you recently said at a conference that you've been reporting like 50% higher annual contract values in ConstructConnect and just the first year, 1.5 years of ownership alone. And so some of the internal debate we had was really around like was this more to maybe perhaps they were under pricing their product at the time or were you looking to cover the cost of the purchase sooner or like where would you push back on the somebody who had just heard something like that?

Neil Hunn -- President and Chief Executive Officer

Yeah. So appreciate the question on ConstructConnect. So as -- I think we've talked about a couple of times in the past ConstructConnect again to set the context is our network that connects general contractors and subcontractors, the building product manufacturers in its large network. And the strategy -- since we've owned this business since the fourth quarter of '16, has been to -- it basically drive habitualization of the core product to the contractor community.

And to do that we had to actually build and we've worked to do this, a number of software elements that go on top of and enter -- and enter with the content that we have. And so the increase in revenue per user at ConstructConnect early gains of our new product launches because we just have more value to sell is what it is. So it's not the construct. Like you said, they try to cover purchase price or anything like that. it's just a continuation of the strategy and the commitment we have to long-term ownership of the assets.

Joshua Aguilar -- Morningstar -- Analyst

Great. Thanks for that. And then I guess a little bit on TransCore, you're talking about that being more of a nationally interoperable solution coming online this year is, how -- what's the progress there. Maybe you can give me a little bit insight there? That's OK. Thanks.

Neil Hunn -- President and Chief Executive Officer

I think it's quite good. I think that's -- that can reflected in the recent wins we've had and the -- and the tolling projects that are ongoing. It's -- It's been good execution by the team.

Joshua Aguilar -- Morningstar -- Analyst

And last one from me, sorry about that. In terms of just like the organic growth guidance, is that just a function of the lower end of process solution, sorry -- yeah, process solutions is kind of moving up or is there something else there that I should be looking at in terms of the segments?

Robert Crisci -- Executive Vice President and Chief Financial Officer

Yeah. I think it's a combination of that and the combination of the outperformance in the first quarter building that into the full-year numbers. Maybe a little bit net, more good guys and bad guys, if you look everywhere else, but that's -- that's the majority of it.

Joshua Aguilar -- Morningstar -- Analyst

Thanks, guys. Congrats.

Neil Hunn -- President and Chief Executive Officer

Appreciate the questions. Thank you.

Operator

Next we'll hear from Alex Blanton with Clear Harbor Asset Management.

Alexander Blanton -- Clear Harbor Asset Management -- Analyst

Yes. Hi, can you hear me?

Neil Hunn -- President and Chief Executive Officer

Yes, sir. Good morning, Alex.

Robert Crisci -- Executive Vice President and Chief Financial Officer

Yeah. Good morning.

Alexander Blanton -- Clear Harbor Asset Management -- Analyst

Yeah. What was the dollar amount you paid for Foundry, you give it in pounds, but I want to know, what was in dollars?

Robert Crisci -- Executive Vice President and Chief Financial Officer

Yeah. So it -- it converted to $530 million (ph) or so in dollar, $535 million in dollars.

Alexander Blanton -- Clear Harbor Asset Management -- Analyst

$535 million. Okay. And on Compressor Controls, you mentioned that it's well below the peak. Is that right?

Robert Crisci -- Executive Vice President and Chief Financial Officer

I mean, certainly, if you look at the performance of the business over the past several years, they are just sort of on the way back up, given the fact there was no new construction for several quarters, and now the new construction business is starting to come back. As Neil mentioned, they've done well on retrofit and brownfield activity and doing a great job of covering their installed base and doing a lot of great things for customers. But the new construction projects are just now starting to ramp up with -- with LNG taking the lead.

Alexander Blanton -- Clear Harbor Asset Management -- Analyst

How much is that of the total? When that -- when you acquired that business in 1992 most of all -- all the business was retrofit because none of the OEMs were using their software, people would buy their compressors using the OEM software and then they would retrofitted with CCC. So but it sounds to me like that has changed and that you're getting a lot of business now with the -- with the OEMs delivering your software with their compresses, is that the case?

Robert Crisci -- Executive Vice President and Chief Financial Officer

Yeah. So Alex, I would say that the team over many years is built. It's -- it's an incredible capability of getting into this feed and this getting pre-feed and really specing projects, very, very, very early. it's a -- as you know, it's a multiple year process to get spec down these new projects. It's a true core capability of -- of that business now.

Alexander Blanton -- Clear Harbor Asset Management -- Analyst

And what percentage is pipeline? You used to do a lot of business on gas pipelines in fact (multiple speakers

Robert Crisci -- Executive Vice President and Chief Financial Officer

It's a -- yeah, it's a pretty small -- it's a pretty small percentage. I don't have the exact number, but it's pretty small.

Alexander Blanton -- Clear Harbor Asset Management -- Analyst

Because when you acquired the business, the first huge contract, you got was to equip Gazprom pipeline with your -- with your stuff. So that's pretty small now in relation to total?

Robert Crisci -- Executive Vice President and Chief Financial Officer

Yeah.

Alexander Blanton -- Clear Harbor Asset Management -- Analyst

Yeah. Okay.

Robert Crisci -- Executive Vice President and Chief Financial Officer

Yes.

Alexander Blanton -- Clear Harbor Asset Management -- Analyst

All right. Thank you.

Robert Crisci -- Executive Vice President and Chief Financial Officer

Thanks, Alex.

Operator

We will end our question-and-answer session for this call. We now return back to Zack Moxcey for closing remarks.

Zack Moxcey -- Vice President, Investor Relations

Thank you everyone for joining us today, and we look forward to speaking with you during our next earnings call.

Operator

This concludes today's conference. Thank you for your participation. You may now disconnect.

Duration: 59 minutes

Call participants:

Zack Moxcey -- Vice President, Investor Relations

Neil Hunn -- President and Chief Executive Officer

Robert Crisci -- Executive Vice President and Chief Financial Officer

Deane Dray -- RBC Capital Markets -- Analyst

Christopher Glynn -- Oppenheimer -- Analyst

Patrick Baumann -- JPMorgan -- Analyst

Lee Sandquist -- Barclays -- Analyst

Robert McCarthy -- Stephens -- Analyst

Joseph Giordano -- Cowen and Company -- Analyst

Joshua Aguilar -- Morningstar -- Analyst

Alexander Blanton -- Clear Harbor Asset Management -- Analyst

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