DOWNERS
GROVE, Ill., Oct. 24,
2024 /PRNewswire/ -- Dover (NYSE: DOV), a diversified
global manufacturer, announced its financial results for the third
quarter ended September 30, 2024. All comparisons are to the
comparable period of the prior fiscal year, unless otherwise
noted.
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
($ in millions,
except per share data)
|
|
2024
|
|
2023
|
|
%
Change*
|
|
2024
|
|
2023
|
|
%
Change*
|
|
U.S.
GAAP
|
|
Revenue
|
|
$
1,984
|
|
$
1,958
|
|
1 %
|
|
$
5,816
|
|
$
5,780
|
|
1 %
|
|
Earnings from
continuing operations
|
|
313
|
|
262
|
|
19 %
|
|
1,162
|
|
686
|
|
69 %
|
|
Diluted EPS from
continuing operations
|
|
2.26
|
|
1.86
|
|
22 %
|
|
8.37
|
|
4.88
|
|
72 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
Organic revenue
change
|
|
|
|
|
|
— %
|
|
|
|
|
|
— %
|
|
Adjusted earnings from
continuing operations 1
|
|
314
|
|
301
|
|
4 %
|
|
846
|
|
812
|
|
4 %
|
|
Adjusted diluted EPS
from continuing operations
|
|
2.27
|
|
2.14
|
|
6 %
|
|
6.09
|
|
5.78
|
|
5 %
|
|
|
1 Q3
and year-to-date 2024 and 2023 adjusted earnings from continuing
operations exclude after tax purchase accounting expenses and
restructuring and other costs. Q3 and year-to-date 2024 also
exclude an after-tax gain on disposition of a minority owned equity
method investment, and year-to-date 2024 excludes the after-tax
gain and post-closing adjustments on the disposition of
De-Sta-Co.
|
|
* Change may be
impacted by rounding.
|
For the quarter ended September 30,
2024, Dover generated revenue of $2.0
billion, an increase of 1%. GAAP earnings from continuing
operations of $313 million increased
19%, and GAAP diluted EPS from continuing operations of
$2.26 was up 22%. On an adjusted
basis, earnings from continuing operations of $314 million increased 4% and adjusted diluted
EPS from continuing operations of $2.27 was up 6%.
For the nine months ended September 30,
2024, Dover generated revenue of $5.8
billion, an increase of 1% compared to the prior year. GAAP
earnings from continuing operations of $1.2
billion increased by 69%, and GAAP diluted EPS from
continuing operations of $8.37 was up
72%. On an adjusted basis, earnings from continuing operations of
$846 million increased 4%, and
adjusted diluted EPS from continuing operations of $6.09 was up 5% compared to the prior year.
A full reconciliation between GAAP and adjusted measures and
definitions of non-GAAP and other performance measures are included
as an exhibit herein.
MANAGEMENT COMMENTARY:
Dover's President and Chief Executive Officer, Richard J. Tobin, said, "Dover's third quarter
results were in line with our expectations, driven by excellent
production performance and positive margin mix from our growth
platforms in clean energy, biopharma components, thermal
connectors, and CO2 refrigeration systems. Top line performance was
broad-based across the majority of the portfolio, more than
offsetting near-term headwinds in polymer processing, beverage
can-making, and heat exchangers for European heat pumps.
Consolidated bookings continued their positive trajectory, with
robust order rates in our secular-growth-exposed markets.
Our ongoing strategic portfolio evolution is aided by our strong
balance sheet position. We closed the divestiture of our
Environmental Solutions Group business in early October, reducing
our exposure to cyclical capital goods. We expect to end the year
with substantial firepower to pursue value-creating capital
deployment as we continue to expand our businesses in high growth,
high margin priority platforms.
We have a constructive outlook for the remainder of 2024 and for
next year. Underlying end market demand is very healthy across the
portfolio driven by our secular growth platforms, coupled with the
bottoming of our long-cycle-exposed end markets in 2024. We expect
to more than offset the dilution from the waste hauling equipment
divestiture next year through a combination of solid top line
organic growth, healthy margin accretion from positive mix and
productivity, and value creating capital deployment."
FULL YEAR 2024 GUIDANCE:
In 2024, Dover expects to generate GAAP EPS from continuing
operations in the range of $10.11 to
$10.21 (adjusted EPS from continuing
operations of $8.08 to $8.18), based on full year revenue growth of 1%
to 3%. Full year 2024 guidance excludes the impact of the
Environmental Solutions Group business unit, which was moved to
discontinued operations for reporting purposes.
CONFERENCE CALL INFORMATION:
Dover will host a webcast and conference call to discuss its
third quarter results at 9:30 A.M. Eastern
Time (8:30 A.M. Central Time)
on Thursday, October 24, 2024. The webcast can be accessed on
the Dover website at dovercorporation.com. The conference call will
also be made available for replay on the website. Additional
information on Dover's results and its operating segments can be
found on the Company's website.
ABOUT DOVER:
Dover is a diversified global manufacturer and solutions
provider with annual revenue of over $7
billion. We deliver innovative equipment and components,
consumable supplies, aftermarket parts, software and digital
solutions, and support services through five operating segments:
Engineered Products, Clean Energy & Fueling, Imaging &
Identification, Pumps & Process Solutions and Climate &
Sustainability Technologies. Dover combines global scale with
operational agility to lead the markets we serve. Recognized for
our entrepreneurial approach for over 65 years, our team of over
24,000 employees takes an ownership mindset, collaborating with
customers to redefine what's possible. Headquartered in
Downers Grove, Illinois, Dover
trades on the New York Stock Exchange under "DOV."
FORWARD-LOOKING STATEMENTS:
This press release contains "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended. All statements in this document other than
statements of historical fact are statements that are, or could be
deemed, "forward-looking" statements. Forward-looking statements
are subject to numerous important risks, uncertainties, assumptions
and other factors, some of which are beyond the Company's control.
Factors that could cause actual results to differ materially from
current expectations include, among other things, general economic
conditions and conditions in the particular markets we serve;
supply chain constraints and labor shortages that could result in
production stoppages, inflation in material input costs and freight
logistics; the impact of interest rate and currency exchange rate
fluctuations; the impacts of natural or human-induced disasters,
acts of war, terrorism, international conflicts, and public health
crises on the global economy and on our customers, suppliers,
employees, business and cash flows; changes in customer
demand and capital spending; competitive factors and pricing
pressures; our ability to develop and launch new products in a
cost-effective manner; our ability to identify, consummate and
successfully integrate acquisitions; acquisition valuation levels;
and our ability to derive expected benefits from restructuring,
productivity initiatives and other cost reduction actions. For
details on the risks and uncertainties that could cause our results
to differ materially from the forward-looking statements contained
herein, we refer you to the documents we file with the Securities
and Exchange Commission, including our Annual Report on Form 10-K
for the year ended December 31, 2023, and our Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. These
documents are available from the Securities and Exchange
Commission, and on our website, dovercorporation.com. The Company
undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
|
INVESTOR SUPPLEMENT
- THIRD QUARTER 2024
|
|
|
DOVER
CORPORATION
|
|
CONSOLIDATED
STATEMENTS OF EARNINGS
|
|
(unaudited)(in
thousands, except per share data*)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue
|
$
1,983,542
|
|
$
1,958,428
|
|
$
5,816,043
|
|
$
5,779,664
|
|
Cost of goods and
services
|
1,220,355
|
|
1,219,047
|
|
3,603,146
|
|
3,631,023
|
|
Gross
profit
|
763,187
|
|
739,381
|
|
2,212,897
|
|
2,148,641
|
|
Selling, general and
administrative expenses
|
429,570
|
|
402,838
|
|
1,301,606
|
|
1,234,223
|
|
Operating
earnings
|
333,617
|
|
336,543
|
|
911,291
|
|
914,418
|
|
Interest
expense
|
34,128
|
|
32,390
|
|
102,867
|
|
100,407
|
|
Interest
income
|
(5,176)
|
|
(3,808)
|
|
(14,013)
|
|
(8,552)
|
|
Gain on
dispositions
|
(68,633)
|
|
—
|
|
(597,913)
|
|
—
|
|
Other income,
net
|
(13,032)
|
|
(10,274)
|
|
(33,016)
|
|
(20,758)
|
|
Earnings before
provision for income taxes
|
386,330
|
|
318,235
|
|
1,453,366
|
|
843,321
|
|
Provision for income
taxes
|
73,434
|
|
56,252
|
|
291,781
|
|
157,636
|
|
Earnings from
continuing operations
|
312,896
|
|
261,983
|
|
1,161,585
|
|
685,685
|
|
Earnings from
discontinued operations, net
|
34,204
|
|
27,770
|
|
99,558
|
|
74,881
|
|
Net
earnings
|
$
347,100
|
|
$
289,753
|
|
$
1,261,143
|
|
$
760,566
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
2.28
|
|
$
1.87
|
|
$
8.42
|
|
$
4.90
|
|
Earnings from
discontinued operations, net
|
$
0.25
|
|
$
0.20
|
|
$
0.72
|
|
$
0.54
|
|
Net
earnings
|
$
2.53
|
|
$
2.07
|
|
$
9.14
|
|
$
5.44
|
|
Weighted average
shares outstanding
|
137,251
|
|
139,878
|
|
137,913
|
|
139,833
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
2.26
|
|
$
1.86
|
|
$
8.37
|
|
$
4.88
|
|
Earnings from
discontinued operations, net
|
$
0.25
|
|
$
0.20
|
|
$
0.72
|
|
$
0.53
|
|
Net
earnings
|
$
2.51
|
|
$
2.06
|
|
$
9.08
|
|
$
5.41
|
|
Weighted average
shares outstanding
|
138,223
|
|
140,615
|
|
138,830
|
|
140,603
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
$
0.515
|
|
$
0.51
|
|
$
1.54
|
|
$
1.52
|
|
|
|
|
|
|
|
|
|
* Per share data may be
impacted by rounding.
|
|
|
|
|
|
|
|
|
DOVER
CORPORATION
|
|
QUARTERLY SEGMENT
INFORMATION
|
|
(unaudited)(in
thousands)
|
|
|
2024
|
|
2023
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
Q4
|
FY
2023
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
$
332,820
|
$
285,297
|
$ 296,117
|
$ 914,234
|
|
$
325,955
|
$
287,408
|
$
309,431
|
$
922,794
|
$
328,131
|
$
1,250,925
|
|
Clean Energy &
Fueling
|
445,053
|
463,014
|
500,685
|
1,408,752
|
|
430,729
|
441,166
|
466,959
|
1,338,854
|
449,423
|
1,788,277
|
|
Imaging &
Identification
|
276,806
|
287,593
|
283,966
|
848,365
|
|
283,091
|
271,932
|
276,179
|
831,202
|
285,530
|
1,116,732
|
|
Pumps & Process
Solutions
|
465,729
|
477,239
|
472,463
|
1,415,431
|
|
413,881
|
465,626
|
431,373
|
1,310,880
|
444,811
|
1,755,691
|
|
Climate &
Sustainability Technologies
|
364,292
|
436,706
|
431,127
|
1,232,125
|
|
455,325
|
449,001
|
475,911
|
1,380,237
|
398,345
|
1,778,582
|
|
Intersegment
eliminations
|
(981)
|
(1,067)
|
(816)
|
(2,864)
|
|
(1,552)
|
(1,326)
|
(1,425)
|
(4,303)
|
(1,428)
|
(5,731)
|
|
Total consolidated
revenue
|
$
1,883,719
|
$
1,948,782
|
$
1,983,542
|
$
5,816,043
|
|
$
1,907,429
|
$
1,913,807
|
$
1,958,428
|
$
5,779,664
|
$
1,904,812
|
$
7,684,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS FROM
CONTINUING OPERATIONS
|
|
|
|
|
|
|
|
|
|
Segment
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
$ 62,532
|
$ 52,095
|
$
56,621
|
$ 171,248
|
|
$
54,064
|
$ 38,872
|
$ 63,525
|
$
156,461
|
$ 67,590
|
$ 224,051
|
|
Clean Energy &
Fueling
|
69,675
|
87,536
|
99,536
|
256,747
|
|
73,605
|
83,616
|
92,483
|
249,704
|
78,900
|
328,604
|
|
Imaging &
Identification
|
69,959
|
75,786
|
77,247
|
222,992
|
|
68,315
|
61,336
|
70,316
|
199,967
|
72,545
|
272,512
|
|
Pumps & Process
Solutions
|
118,737
|
137,217
|
138,277
|
394,231
|
|
115,244
|
129,337
|
117,907
|
362,488
|
121,917
|
484,405
|
|
Climate &
Sustainability Technologies
|
50,759
|
79,127
|
76,015
|
205,901
|
|
73,778
|
76,074
|
84,060
|
233,912
|
71,468
|
305,380
|
|
Total segment
earnings
|
371,662
|
431,761
|
447,696
|
1,251,119
|
|
385,006
|
389,235
|
428,291
|
1,202,532
|
412,420
|
1,614,952
|
|
Purchase
accounting
expenses
1
|
44,187
|
44,332
|
48,356
|
136,875
|
|
40,603
|
38,644
|
38,956
|
118,203
|
40,379
|
158,582
|
|
Restructuring and other
costs 2
|
23,971
|
11,590
|
16,581
|
52,142
|
|
14,053
|
18,143
|
11,581
|
43,777
|
19,150
|
62,927
|
|
Disposition costs
3
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
1,302
|
1,302
|
|
(Gain) loss on
dispositions 4
|
(529,943)
|
663
|
(68,633)
|
(597,913)
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Corporate expense /
other 5
|
42,159
|
39,526
|
36,110
|
117,795
|
|
40,301
|
34,138
|
30,937
|
105,376
|
45,957
|
151,333
|
|
Interest
expense
|
36,365
|
32,374
|
34,128
|
102,867
|
|
34,214
|
33,803
|
32,390
|
100,407
|
30,897
|
131,304
|
|
Interest
income
|
(4,756)
|
(4,081)
|
(5,176)
|
(14,013)
|
|
(2,091)
|
(2,653)
|
(3,808)
|
(8,552)
|
(4,944)
|
(13,496)
|
|
Earnings before
provision for income taxes
|
759,679
|
307,357
|
386,330
|
1,453,366
|
|
257,926
|
267,160
|
318,235
|
843,321
|
279,679
|
1,123,000
|
|
Provision for income
taxes 6
|
157,577
|
60,770
|
73,434
|
291,781
|
|
51,234
|
50,150
|
56,252
|
157,636
|
21,500
|
179,136
|
|
Earnings from
continuing operations
|
$
602,102
|
$
246,587
|
$ 312,896
|
$
1,161,585
|
|
$
206,692
|
$
217,010
|
$
261,983
|
$
685,685
|
$
258,179
|
$ 943,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT EARNINGS
MARGIN
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
18.8 %
|
18.3 %
|
19.1 %
|
18.7 %
|
|
16.6 %
|
13.5 %
|
20.5 %
|
17.0 %
|
20.6 %
|
17.9 %
|
|
Clean Energy &
Fueling
|
15.7 %
|
18.9 %
|
19.9 %
|
18.2 %
|
|
17.1 %
|
19.0 %
|
19.8 %
|
18.7 %
|
17.6 %
|
18.4 %
|
|
Imaging &
Identification
|
25.3 %
|
26.4 %
|
27.2 %
|
26.3 %
|
|
24.1 %
|
22.6 %
|
25.5 %
|
24.1 %
|
25.4 %
|
24.4 %
|
|
Pumps & Process
Solutions
|
25.5 %
|
28.8 %
|
29.3 %
|
27.9 %
|
|
27.8 %
|
27.8 %
|
27.3 %
|
27.7 %
|
27.4 %
|
27.6 %
|
|
Climate &
Sustainability Technologies
|
13.9 %
|
18.1 %
|
17.6 %
|
16.7 %
|
|
16.2 %
|
16.9 %
|
17.7 %
|
16.9 %
|
17.9 %
|
17.2 %
|
|
Total segment earnings
margin
|
19.7 %
|
22.2 %
|
22.6 %
|
21.5 %
|
|
20.2 %
|
20.3 %
|
21.9 %
|
20.8 %
|
21.7 %
|
21.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Purchase
accounting expenses are primarily comprised of amortization of
acquired intangible assets.
|
|
2
Restructuring and other costs relate to actions taken for headcount
reductions, facility consolidations and site closures, product line
exits, and other asset charges.
|
|
3 Q4 and FY
2023 disposition costs relate to the sale of De-Sta-Co in our
Engineered Products segment.
|
|
4 (Gain)
loss on dispositions including post-closing adjustments related to
the disposition of De-Sta-Co in Q1 2024 and the disposition of a
minority owned equity method investment in Q3 2024 in the
Engineered Products and Climate & Sustainability Technologies
segments, respectively.
|
|
5 Certain
expenses are maintained at the corporate level and not allocated to
the segments. These expenses include executive and functional
compensation costs, non-service pension costs, non-operating
insurance expenses, shared business services and digital overhead
costs, deal related expenses and various administrative expenses
relating to the corporate headquarters.
|
|
6 Q4 and FY
2023 include the net income tax benefit of internal reorganizations
executed in 2023.
|
|
DOVER
CORPORATION
|
|
QUARTERLY EARNINGS
PER SHARE
|
|
(unaudited)(in
thousands, except per share data*)
|
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
Q4
|
FY
2023
|
|
Basic earnings per
share:
|
|
Continuing
operations
|
$ 4.33
|
$ 1.79
|
$ 2.28
|
$
8.42
|
|
$ 1.48
|
$ 1.55
|
$ 1.87
|
$
4.90
|
$ 1.85
|
$
6.75
|
|
Discontinued
operations
|
$ 0.22
|
$ 0.26
|
$ 0.25
|
$
0.72
|
|
$ 0.16
|
$ 0.18
|
$ 0.20
|
$
0.54
|
$ 0.27
|
$
0.81
|
|
Net earnings
|
$ 4.55
|
$ 2.05
|
$ 2.53
|
$
9.14
|
|
$ 1.64
|
$ 1.73
|
$ 2.07
|
$
5.44
|
$ 2.12
|
$
7.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$ 4.30
|
$ 1.78
|
$ 2.26
|
$
8.37
|
|
$ 1.47
|
$ 1.54
|
$ 1.86
|
$
4.88
|
$ 1.84
|
$
6.71
|
|
Discontinued
operations
|
$ 0.22
|
$ 0.25
|
$ 0.25
|
$
0.72
|
|
$ 0.16
|
$ 0.18
|
$ 0.20
|
$
0.53
|
$ 0.27
|
$
0.80
|
|
Net earnings
|
$ 4.52
|
$ 2.04
|
$ 2.51
|
$
9.08
|
|
$ 1.63
|
$ 1.72
|
$ 2.06
|
$
5.41
|
$ 2.11
|
$
7.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings and
weighted average shares used in calculated earnings per share
amounts are as follows:
|
|
Continuing
operations
|
$
602,102
|
$
246,587
|
$ 312,896
|
$
1,161,585
|
|
$
206,692
|
$
217,010
|
$
261,983
|
$
685,685
|
$
258,179
|
$
943,864
|
|
Discontinued
operations
|
30,119
|
35,235
|
34,204
|
99,558
|
|
21,882
|
25,229
|
27,770
|
74,881
|
38,083
|
112,964
|
|
Net earnings
|
$
632,221
|
$
281,822
|
$ 347,100
|
$
1,261,143
|
|
$
228,574
|
$
242,239
|
$
289,753
|
$
760,566
|
$
296,262
|
$
1,056,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
139,051
|
137,443
|
137,251
|
137,913
|
|
139,757
|
139,862
|
139,878
|
139,833
|
139,893
|
139,848
|
|
Diluted
|
139,869
|
138,404
|
138,223
|
138,830
|
|
140,616
|
140,578
|
140,615
|
140,603
|
140,586
|
140,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Per share data may be
impacted by rounding.
|
|
|
|
DOVER
CORPORATION
|
|
QUARTERLY ADJUSTED
EARNINGS AND ADJUSTED EARNINGS PER SHARE (NON-GAAP)
|
|
(unaudited)(in
thousands, except per share data*)
|
|
Non-GAAP
Reconciliations
|
|
2024
|
|
2023
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
Q4
|
FY
2023
|
|
Adjusted earnings
from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
602,102
|
$
246,587
|
$ 312,896
|
$
1,161,585
|
|
$
206,692
|
$
217,010
|
$
261,983
|
$
685,685
|
$
258,179
|
$
943,864
|
|
Purchase accounting
expenses, pre-tax 1
|
44,187
|
44,332
|
48,356
|
136,875
|
|
40,603
|
38,644
|
38,956
|
118,203
|
40,379
|
158,582
|
|
Purchase accounting
expenses, tax impact 2
|
(9,711)
|
(9,760)
|
(10,633)
|
(30,104)
|
|
(9,140)
|
(8,671)
|
(8,670)
|
(26,481)
|
(8,847)
|
(35,328)
|
|
Restructuring and other
costs, pre-tax 3
|
23,971
|
11,590
|
16,581
|
52,142
|
|
14,053
|
18,143
|
11,581
|
43,777
|
19,150
|
62,927
|
|
Restructuring and other
costs, tax impact 2
|
(4,734)
|
(2,479)
|
(3,465)
|
(10,678)
|
|
(2,990)
|
(3,665)
|
(2,401)
|
(9,056)
|
(3,970)
|
(13,026)
|
|
Disposition costs,
pre-tax 4
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
1,302
|
1,302
|
|
Disposition costs, tax
impact 2
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
(270)
|
(270)
|
|
(Gain) loss on
dispositions, pre-tax 5
|
(529,943)
|
663
|
(68,633)
|
(597,913)
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
(Gain) loss on
dispositions, tax-impact 2
|
114,973
|
(144)
|
18,889
|
133,718
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Adjusted earnings from
continuing operations
|
$
240,845
|
$
290,789
|
$ 313,991
|
$
845,625
|
|
$
249,218
|
$
261,461
|
$
301,449
|
$
812,128
|
$
305,923
|
$
1,118,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share from continuing operations:
|
|
|
|
|
|
|
|
|
Diluted earnings from
continuing operations per share
|
$ 4.30
|
$ 1.78
|
$ 2.26
|
$
8.37
|
|
$ 1.47
|
$ 1.54
|
$ 1.86
|
$
4.88
|
$ 1.84
|
$
6.71
|
|
Purchase accounting
expenses, pre-tax 1
|
0.32
|
0.32
|
0.35
|
0.99
|
|
0.29
|
0.27
|
0.28
|
0.84
|
0.29
|
1.13
|
|
Purchase accounting
expenses, tax impact 2
|
(0.07)
|
(0.07)
|
(0.08)
|
(0.22)
|
|
(0.06)
|
(0.06)
|
(0.06)
|
(0.19)
|
(0.06)
|
(0.25)
|
|
Restructuring and other
costs, pre-tax 3
|
0.17
|
0.08
|
0.12
|
0.38
|
|
0.10
|
0.13
|
0.08
|
0.31
|
0.14
|
0.45
|
|
Restructuring and other
costs, tax impact 2
|
(0.03)
|
(0.02)
|
(0.03)
|
(0.08)
|
|
(0.02)
|
(0.03)
|
(0.02)
|
(0.06)
|
(0.03)
|
(0.09)
|
|
Disposition costs,
pre-tax 4
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
0.01
|
0.01
|
|
Disposition costs, tax
impact 2
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
(Gain) loss on
dispositions, pre-tax 5
|
(3.79)
|
—
|
(0.50)
|
(4.31)
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
(Gain) loss on
dispositions, tax-impact 2
|
0.82
|
—
|
0.14
|
0.96
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Adjusted diluted
earnings per share from continuing operations
|
$ 1.72
|
$ 2.10
|
$ 2.27
|
$
6.09
|
|
$ 1.77
|
$ 1.86
|
$ 2.14
|
$
5.78
|
$ 2.18
|
$
7.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Purchase
accounting expenses are primarily comprised of amortization of
acquired intangible assets.
|
|
2
Adjustments were tax effected using the statutory tax rates in the
applicable jurisdictions or the effective tax rate, where
applicable, for each period.
|
|
3
Restructuring and other costs relate to actions taken for headcount
reductions, facility consolidations and site closures, product line
exits, and other asset charges. Q1 and year-to-date 2024 include
$3.4 million and Q3 and FY 2023 include $3.3 million of non-cash
asset impairment charges for our Climate & Sustainability
Technologies segment.
|
|
4 Q4 and FY
2023 disposition costs relate to the sale of De-Sta-Co in our
Engineered Products segment.
|
|
5 (Gain)
loss on dispositions represents a $529.9 million gain recorded
during Q1 2024 and a $0.7 million post-closing adjustment recorded
in Q2 2024 on the disposition of De-Sta-Co in the Engineered
Products segment. Q3 2024 represents a $68.6 million gain primarily
on disposition of a minority owned equity method investment in the
Climate & Sustainability Technologies segment.
|
|
* Per share data and
totals may be impacted by rounding.
|
|
DOVER
CORPORATION
|
|
QUARTERLY ADJUSTED
SEGMENT EBITDA (NON-GAAP)
|
|
(unaudited)(in
thousands)
|
|
Non-GAAP
Reconciliations
|
|
2024
|
|
2023
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
Q4
|
FY
2023
|
|
ADJUSTED SEGMENT
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products:
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings
|
$
62,532
|
$
52,095
|
$
56,621
|
$
171,248
|
|
$
54,064
|
$
38,872
|
$
63,525
|
$
156,461
|
$
67,590
|
$
224,051
|
|
Other depreciation and
amortization 1
|
4,785
|
4,778
|
4,829
|
14,392
|
|
5,671
|
5,778
|
5,736
|
17,185
|
4,827
|
22,012
|
|
Adjusted segment EBITDA
2
|
67,317
|
56,873
|
61,450
|
185,640
|
|
59,735
|
44,650
|
69,261
|
173,646
|
72,417
|
246,063
|
|
Adjusted segment EBITDA
margin 2
|
20.2 %
|
19.9 %
|
20.8 %
|
20.3 %
|
|
18.3 %
|
15.5 %
|
22.4 %
|
18.8 %
|
22.1 %
|
19.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clean Energy &
Fueling:
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings
|
$
69,675
|
$
87,536
|
$
99,536
|
$
256,747
|
|
$
73,605
|
$
83,616
|
$
92,483
|
$
249,704
|
$
78,900
|
$
328,604
|
|
Other depreciation and
amortization 1
|
7,921
|
7,627
|
8,310
|
23,858
|
|
7,046
|
7,541
|
7,686
|
22,273
|
7,844
|
30,117
|
|
Adjusted segment EBITDA
2
|
77,596
|
95,163
|
107,846
|
280,605
|
|
80,651
|
91,157
|
100,169
|
271,977
|
86,744
|
358,721
|
|
Adjusted segment EBITDA
margin 2
|
17.4 %
|
20.6 %
|
21.5 %
|
19.9 %
|
|
18.7 %
|
20.7 %
|
21.5 %
|
20.3 %
|
19.3 %
|
20.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Imaging &
Identification:
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings
|
$
69,959
|
$
75,786
|
$
77,247
|
$
222,992
|
|
$
68,315
|
$
61,336
|
$
70,316
|
$
199,967
|
$
72,545
|
$
272,512
|
|
Other depreciation and
amortization 1
|
3,733
|
3,271
|
3,905
|
10,909
|
|
3,394
|
3,745
|
3,972
|
11,111
|
4,182
|
15,293
|
|
Adjusted segment EBITDA
2
|
73,692
|
79,057
|
81,152
|
233,901
|
|
71,709
|
65,081
|
74,288
|
211,078
|
76,727
|
287,805
|
|
Adjusted segment EBITDA
margin 2
|
26.6 %
|
27.5 %
|
28.6 %
|
27.6 %
|
|
25.3 %
|
23.9 %
|
26.9 %
|
25.4 %
|
26.9 %
|
25.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pumps & Process
Solutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings
|
$
118,737
|
$
137,217
|
$ 138,277
|
$
394,231
|
|
$
115,244
|
$
129,337
|
$
117,907
|
$
362,488
|
$
121,917
|
$
484,405
|
|
Other depreciation and
amortization 1
|
12,139
|
12,637
|
12,651
|
37,427
|
|
10,939
|
11,609
|
12,052
|
34,600
|
11,744
|
46,344
|
|
Adjusted segment EBITDA
2
|
130,876
|
149,854
|
150,928
|
431,658
|
|
126,183
|
140,946
|
129,959
|
397,088
|
133,661
|
530,749
|
|
Adjusted segment EBITDA
margin 2
|
28.1 %
|
31.4 %
|
31.9 %
|
30.5 %
|
|
30.5 %
|
30.3 %
|
30.1 %
|
30.3 %
|
30.0 %
|
30.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Climate &
Sustainability Technologies:
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings
|
$
50,759
|
$
79,127
|
$
76,015
|
$
205,901
|
|
$
73,778
|
$
76,074
|
$
84,060
|
$
233,912
|
$
71,468
|
$
305,380
|
|
Other depreciation and
amortization 1
|
7,275
|
7,220
|
7,048
|
21,543
|
|
6,624
|
6,895
|
6,954
|
20,473
|
7,084
|
27,557
|
|
Adjusted segment EBITDA
2
|
58,034
|
86,347
|
83,063
|
227,444
|
|
80,402
|
82,969
|
91,014
|
254,385
|
78,552
|
332,937
|
|
Adjusted segment EBITDA
margin 2
|
15.9 %
|
19.8 %
|
19.3 %
|
18.5 %
|
|
17.7 %
|
18.5 %
|
19.1 %
|
18.4 %
|
19.7 %
|
18.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment earnings
2, 3
|
$
371,662
|
$
431,761
|
$ 447,696
|
$
1,251,119
|
|
$
385,006
|
$
389,235
|
$
428,291
|
$
1,202,532
|
$
412,420
|
$
1,614,952
|
|
Other depreciation and
amortization 1
|
35,853
|
35,533
|
36,743
|
108,129
|
|
33,674
|
35,568
|
36,400
|
105,642
|
35,681
|
141,323
|
|
Total Adjusted segment
EBITDA 2
|
407,515
|
467,294
|
484,439
|
1,359,248
|
|
418,680
|
424,803
|
464,691
|
1,308,174
|
448,101
|
1,756,275
|
|
Total Adjusted segment
EBITDA margin 2
|
21.6 %
|
24.0 %
|
24.4 %
|
23.4 %
|
|
21.9 %
|
22.2 %
|
23.7 %
|
22.6 %
|
23.5 %
|
22.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Other
depreciation and amortization relates to property, plant, and
equipment and intangibles, and excludes amounts related to purchase
accounting expenses and restructuring and other costs.
|
|
2 Refer to
Non-GAAP Disclosures section for definition.
|
|
3 Refer to
Quarterly Segment Information section for reconciliation of total
segment earnings to earnings from continuing operations.
|
|
DOVER
CORPORATION
|
|
QUARTERLY EARNINGS
FROM CONTINUING OPERATIONS TO ADJUSTED SEGMENT EBITDA
RECONCILIATION (NON-GAAP)
|
|
(unaudited)(in
thousands)
|
|
Non-GAAP
Reconciliations
|
|
2024
|
|
2023
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
Q4
|
FY
2023
|
|
Earnings from
continuing operations
|
$
602,102
|
$
246,587
|
$
312,896
|
$
1,161,585
|
|
$
206,692
|
$
217,010
|
$
261,983
|
$
685,685
|
$
258,179
|
$
943,864
|
|
Provision for income
taxes 1
|
157,577
|
60,770
|
73,434
|
291,781
|
|
51,234
|
50,150
|
56,252
|
157,636
|
21,500
|
179,136
|
|
Earnings before
provision for income taxes
|
759,679
|
307,357
|
386,330
|
1,453,366
|
|
257,926
|
267,160
|
318,235
|
843,321
|
279,679
|
1,123,000
|
|
Interest
income
|
(4,756)
|
(4,081)
|
(5,176)
|
(14,013)
|
|
(2,091)
|
(2,653)
|
(3,808)
|
(8,552)
|
(4,944)
|
(13,496)
|
|
Interest
expense
|
36,365
|
32,374
|
34,128
|
102,867
|
|
34,214
|
33,803
|
32,390
|
100,407
|
30,897
|
131,304
|
|
Corporate expense /
other 2
|
42,159
|
39,526
|
36,110
|
117,795
|
|
40,301
|
34,138
|
30,937
|
105,376
|
45,957
|
151,333
|
|
Disposition costs
3
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
1,302
|
1,302
|
|
(Gain) loss on
dispositions 4
|
(529,943)
|
663
|
(68,633)
|
(597,913)
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Restructuring and other
costs 5
|
23,971
|
11,590
|
16,581
|
52,142
|
|
14,053
|
18,143
|
11,581
|
43,777
|
19,150
|
62,927
|
|
Purchase accounting
expenses 6
|
44,187
|
44,332
|
48,356
|
136,875
|
|
40,603
|
38,644
|
38,956
|
118,203
|
40,379
|
158,582
|
|
Total segment earnings
7
|
371,662
|
431,761
|
447,696
|
1,251,119
|
|
385,006
|
389,235
|
428,291
|
1,202,532
|
412,420
|
1,614,952
|
|
Add: Other depreciation
and amortization 8
|
35,853
|
35,533
|
36,743
|
108,129
|
|
33,674
|
35,568
|
36,400
|
105,642
|
35,681
|
141,323
|
|
Total adjusted segment
EBITDA 7
|
$
407,515
|
$
467,294
|
$
484,439
|
$
1,359,248
|
|
$
418,680
|
$
424,803
|
$
464,691
|
$
1,308,174
|
$
448,101
|
$
1,756,275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Q4 and FY
2023 include the net income tax benefit of internal reorganizations
executed in 2023.
|
|
2 Certain
expenses are maintained at the corporate level and not allocated to
the segments. These expenses include executive and functional
compensation costs, non-service pension costs, non-operating
insurance expenses, shared business services and digital overhead
costs, deal related expenses and various administrative expenses
relating to the corporate headquarters.
|
|
3 Q4 and FY
2023 disposition costs relate to the sale of De-Sta-Co in our
Engineered Products segment.
|
|
4 (Gain)
loss on dispositions including post-closing adjustments related to
the disposition of De-Sta-Co in Q1 2024 and the disposition of a
minority owned equity method investment in Q3 2024 in the
Engineered Products and Climate & Sustainability Technologies
segments, respectively.
|
|
5
Restructuring and other costs relate to actions taken for headcount
reductions, facility consolidations and site closures, product line
exits, and other asset charges.
|
|
6 Purchase
accounting expenses are primarily comprised of amortization of
acquired intangible assets.
|
|
7 Refer to
Non-GAAP Disclosures section for definition.
|
|
8 Other
depreciation and amortization relates to property, plant, and
equipment and intangibles, and excludes amounts related to purchase
accounting expenses and restructuring and other costs.
|
|
DOVER
CORPORATION
|
|
REVENUE GROWTH
FACTORS AND ADJUSTED EPS GUIDANCE RECONCILIATIONS
(NON-GAAP)
|
|
(unaudited)(in
thousands, except per share data*)
|
|
|
Non-GAAP
Reconciliations
|
|
|
Revenue Growth
Factors
|
|
2024
|
|
|
Q3
|
|
Q3
YTD
|
|
Organic
|
|
|
|
|
|
Engineered
Products
|
|
12.1 %
|
|
10.5 %
|
|
Clean Energy &
Fueling
|
|
(1.2) %
|
|
0.8 %
|
|
Imaging &
Identification
|
|
3.3 %
|
|
2.8 %
|
|
Pumps & Process
Solutions
|
|
1.9 %
|
|
1.0 %
|
|
Climate &
Sustainability Technologies
|
|
(9.4) %
|
|
(10.7) %
|
|
Total
Organic
|
|
0.3 %
|
|
— %
|
|
Acquisitions
|
|
3.8 %
|
|
2.8 %
|
|
Dispositions
|
|
(2.7) %
|
|
(1.8) %
|
|
Currency
translation
|
|
(0.1) %
|
|
(0.4) %
|
|
Total*
|
|
1.3 %
|
|
0.6 %
|
|
* Totals may be
impacted by rounding.
|
|
|
|
2024
|
|
|
Q3
|
|
Q3
YTD
|
|
Organic
|
|
|
|
|
|
United
States
|
|
8.4 %
|
|
5.0 %
|
|
Other
Americas
|
|
1.7 %
|
|
4.4 %
|
|
Europe
|
|
(4.6) %
|
|
(3.0) %
|
|
Asia
|
|
(9.5) %
|
|
(7.7) %
|
|
Other
|
|
(33.4) %
|
|
(28.2) %
|
|
Total
Organic
|
|
0.3 %
|
|
— %
|
|
Acquisitions
|
|
3.8 %
|
|
2.8 %
|
|
Dispositions
|
|
(2.7) %
|
|
(1.8) %
|
|
Currency
translation
|
|
(0.1) %
|
|
(0.4) %
|
|
Total*
|
|
1.3 %
|
|
0.6 %
|
|
* Totals may be
impacted by rounding.
|
|
Adjusted EPS
Guidance Reconciliation
|
|
Range
|
|
2024 Guidance for
Earnings per Share from Continuing Operations (GAAP)
|
$10.11
|
|
$10.21
|
|
Purchase accounting
expenses, net
|
|
1.01
|
|
|
Restructuring and other
costs, net
|
|
0.31
|
|
|
Gain on dispositions,
net
|
|
(3.35)
|
|
|
2024 Guidance for
Adjusted Earnings per Share from Continuing Operations
(Non-GAAP)
|
$8.08
|
|
$8.18
|
|
* Per share data and
totals may be impacted by rounding.
|
|
DOVER
CORPORATION
|
|
QUARTERLY CASH FLOW
AND FREE CASH FLOW (NON-GAAP)
|
|
(unaudited)(in
thousands)
|
|
|
Quarterly Cash
Flow
|
|
2024
|
|
2023
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
Q4
|
FY
2023
|
|
Net Cash Flows Provided
By (Used In):
|
|
|
|
|
|
|
|
|
|
Operating
activities
|
$
146,456
|
$
149,181
|
$
353,244
|
$
648,881
|
|
$ 220,240
|
$
168,947
|
$
331,795
|
$
720,982
|
$
498,564
|
$
1,219,546
|
|
Investing
activities
|
432,416
|
33,215
|
(402,512)
|
63,119
|
|
(41,952)
|
(40,591)
|
(48,529)
|
(131,072)
|
(586,643)
|
(717,715)
|
|
Financing
activities
|
(80,782)
|
(830,657)
|
92,994
|
(818,445)
|
|
(306,565)
|
(137,924)
|
(312,716)
|
(757,205)
|
189,149
|
(568,056)
|
|
|
Quarterly Free Cash
Flow (Non-GAAP)
|
|
2024
|
|
2023
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
Q4
|
FY
2023
|
|
Cash flow from
operating activities 1
|
$
146,456
|
$
149,181
|
$
353,244
|
$
648,881
|
|
$
220,240
|
$
168,947
|
$
331,795
|
$
720,982
|
$
498,564
|
$
1,219,546
|
|
Less: Capital
expenditures
|
(40,050)
|
(35,822)
|
(37,754)
|
(113,626)
|
|
(46,771)
|
(38,183)
|
(41,177)
|
(126,131)
|
(57,275)
|
(183,406)
|
|
Free cash
flow
|
$
106,406
|
$
113,359
|
$
315,490
|
$
535,255
|
|
$
173,469
|
$
130,764
|
$
290,618
|
$
594,851
|
$
441,289
|
$
1,036,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities as a percentage of revenue
|
7.8 %
|
7.7 %
|
17.8 %
|
11.2 %
|
|
11.5 %
|
8.8 %
|
16.9 %
|
12.5 %
|
26.2 %
|
15.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities as a percentage of adjusted earnings from
continuing operations
|
60.8 %
|
51.3 %
|
112.5 %
|
76.7 %
|
|
88.4 %
|
64.6 %
|
110.1 %
|
88.8 %
|
163.0 %
|
109.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow as a
percentage of revenue
|
5.6 %
|
5.8 %
|
15.9 %
|
9.2 %
|
|
9.1 %
|
6.8 %
|
14.8 %
|
10.3 %
|
23.2 %
|
13.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow as a
percentage of adjusted earnings from continuing
operations
|
44.2 %
|
39.0 %
|
100.5 %
|
63.3 %
|
|
69.6 %
|
50.0 %
|
96.4 %
|
73.2 %
|
144.2 %
|
92.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Q2 and Q3
2024 include income tax payments of $56.0 million and $24.0
million, respectively, related to the gain on the disposition of
De-Sta-Co. The remainder of the tax payments on the De-Sta-Co gain
will be made during the fourth quarter of 2024.
|
|
DOVER
CORPORATION
|
|
PERFORMANCE
MEASURES
|
|
(unaudited)(in
thousands)
|
|
|
2024
|
|
2023
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
Q4
|
FY
2023
|
|
BOOKINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
$
329,925
|
$
280,542
|
$
284,823
|
$
895,290
|
|
$
329,005
|
$
297,662
|
$
330,566
|
$
957,233
|
$
312,416
|
$
1,269,649
|
|
Clean Energy &
Fueling
|
471,610
|
442,086
|
507,329
|
1,421,025
|
|
454,526
|
440,137
|
449,663
|
1,344,326
|
401,195
|
1,745,521
|
|
Imaging &
Identification
|
278,433
|
288,641
|
281,289
|
848,363
|
|
290,712
|
262,092
|
271,113
|
823,917
|
297,312
|
1,121,229
|
|
Pumps & Process
Solutions
|
473,632
|
461,426
|
448,074
|
1,383,132
|
|
464,297
|
394,317
|
363,111
|
1,221,725
|
455,390
|
1,677,115
|
|
Climate &
Sustainability Technologies
|
453,086
|
406,269
|
332,503
|
1,191,858
|
|
371,643
|
310,911
|
340,474
|
1,023,028
|
325,625
|
1,348,653
|
|
Intersegment
eliminations
|
(791)
|
(1,591)
|
(1,065)
|
(3,447)
|
|
(1,530)
|
(1,913)
|
(848)
|
(4,291)
|
(2,100)
|
(6,391)
|
|
Total consolidated
bookings
|
$
2,005,895
|
$
1,877,373
|
$
1,852,953
|
$
5,736,221
|
|
$
1,908,653
|
$
1,703,206
|
$
1,754,079
|
$
5,365,938
|
$
1,789,838
|
$
7,155,776
|
|
2024
|
|
Q3
|
|
Q3
YTD
|
|
BOOKINGS GROWTH
FACTORS
|
|
|
|
|
|
|
|
|
Organic
|
|
|
|
|
Engineered
Products
|
— %
|
|
3.6 %
|
|
Clean Energy &
Fueling
|
7.0 %
|
|
2.3 %
|
|
Imaging &
Identification
|
4.3 %
|
|
3.8 %
|
|
Pumps & Process
Solutions
|
15.1 %
|
|
6.1 %
|
|
Climate &
Sustainability Technologies
|
(2.1) %
|
|
17.0 %
|
|
Total
Organic
|
5.1 %
|
|
6.5 %
|
|
Acquisitions
|
3.5 %
|
|
2.7 %
|
|
Dispositions
|
(2.9) %
|
|
(1.9) %
|
|
Currency
translation
|
(0.1) %
|
|
(0.4) %
|
|
Total*
|
5.6 %
|
|
6.9 %
|
|
* Totals may be
impacted by rounding.
|
|
|
|
Non-GAAP Measures Definitions
In an effort to provide investors with additional information
regarding our results as determined by GAAP, management also
discloses non-GAAP information that management believes provides
useful information to investors. Adjusted earnings from continuing
operations, adjusted diluted earnings per share from continuing
operations, total segment earnings, total segment earnings margin,
adjusted segment EBITDA, adjusted segment EBITDA margin, free cash
flow, free cash flow as a percentage of revenue, free cash flow as
a percentage of adjusted earnings from continuing operations, and
organic revenue growth are not financial measures under GAAP and
should not be considered as a substitute for earnings from
continuing operations, diluted earnings from continuing operations
per share, cash flows from operating activities, or revenue as
determined in accordance with GAAP, and they may not be comparable
to similarly titled measures reported by other companies.
The items described in our definitions herein, unless otherwise
noted, relate solely to our continuing operations.
Adjusted earnings from continuing operations represents earnings
from continuing operations adjusted for the effect of purchase
accounting expenses, restructuring and other costs/benefits,
disposition costs and gain/loss on dispositions. Purchase
accounting expenses are primarily comprised of amortization of
intangible assets. We exclude after-tax purchase accounting
expenses because the amount and timing of such charges are
significantly impacted by the timing, size, number and nature of
the acquisitions the Company consummates. While we have a history
of acquisition activity, our acquisitions do not happen in a
predictive cycle. Exclusion of purchase accounting expenses
facilitates more consistent comparisons of operating results over
time. We believe it is important to understand that such intangible
assets were recorded as part of purchase accounting and contribute
to revenue generation. We exclude the other items because they
occur for reasons that may be unrelated to the Company's commercial
performance during the period and/or management believes they are
not indicative of the Company's ongoing operating costs or gains in
a given period.
Adjusted diluted earnings per share from continuing operations
or adjusted earnings per share from continuing operations
represents diluted earnings from continuing operations per share
adjusted for the effect of purchase accounting expenses,
restructuring and other costs/benefits, disposition costs and
gain/loss on disposition.
Total segment earnings is defined as the sum of earnings before
purchase accounting expenses, restructuring and other
costs/benefits, disposition costs, gain/loss on dispositions,
corporate expenses/other, interest expense, interest income and
provision for income taxes for all segments. Total segment earnings
margin is defined as total segment earnings divided by revenue.
Adjusted segment EBITDA is defined as segment earnings plus
other depreciation and amortization expense, which relates to
property, plant, and equipment and intangibles, and excludes
amounts related to purchase accounting expenses and restructuring
and other costs/benefits. Adjusted segment EBITDA margin is defined
as adjusted segment EBITDA divided by revenue.
Management believes the non-GAAP measures above are useful to
investors to better understand the Company's ongoing profitability
as they better reflect the Company's core operating results, offer
more transparency and facilitate easier comparability to prior and
future periods and to its peers.
Free cash flow represents net cash provided by operating
activities minus capital expenditures. Free cash flow as a
percentage of revenue equals free cash flow divided by revenue.
Free cash flow as a percentage of adjusted earnings from continuing
operations equals free cash flow divided by adjusted earnings from
continuing operations. Management believes that free cash flow and
free cash flow ratios are important measures of liquidity because
they provide management and investors a measurement of cash
generated from operations that is available for mandatory payment
obligations and investment opportunities, such as funding
acquisitions, paying dividends, repaying debt and repurchasing our
common stock.
Management believes that reporting organic revenue growth, which
excludes the impact of foreign currency exchange rates and the
impact of acquisitions and dispositions, provides a useful
comparison of our revenue and trends between periods. We do not
provide a reconciliation of forward-looking organic revenue to the
most directly comparable GAAP financial measure pursuant to the
exception provided in Item 10(e)(1)(i)(B) of Regulation S-K because
we are not able to provide a meaningful or accurate compilation of
reconciling items. This is due to the inherent difficulty in
accurately forecasting the timing and amounts of the items that
would be excluded from the most directly comparable GAAP financial
measure or are out of our control. For the same reasons, we are
unable to address the probable significance of unavailable
information which may be material.
Performance Measures Definitions
Bookings represent total orders received from customers in the
current reporting period and exclude de-bookings related to orders
received in prior periods, if any. This metric is an important
measure of performance and an indicator of revenue order
trends.
Organic bookings represent bookings excluding the impact of
foreign currency exchange rates and the impact of acquisitions and
dispositions. This metric is an important measure of performance
and an indicator of revenue order trends.
We use the above operational metrics in monitoring the
performance of the business. We believe the operational metrics are
useful to investors and other users of our financial information in
assessing the performance of our segments.
|
Investor
Contact:
|
Media
Contact:
|
|
Jack Dickens
|
Adrian
Sakowicz
|
|
Senior Director -
Investor Relations
|
Vice President -
Communications
|
|
(630)
743-2566
|
(630)
743-5039
|
|
jdickens@dovercorp.com
|
asakowicz@dovercorp.com
|
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SOURCE Dover
