DOWNERS
GROVE, Ill., April 26,
2023 /PRNewswire/ -- Dover (NYSE: DOV), a diversified
global manufacturer, announced its financial results for the first
quarter ended March 31, 2023. All comparisons are to the
comparable period of the prior fiscal year, unless otherwise
noted.
|
|
Three Months Ended
March 31,
|
($ in millions,
except per share data)
|
|
2023
|
|
2022
|
|
%
Change
|
U.S.
GAAP
|
Revenue
|
|
$
2,079
|
|
$
2,052
|
|
1 %
|
Net
earnings
|
|
229
|
|
226
|
|
1 %
|
Diluted
EPS
|
|
1.63
|
|
1.56
|
|
4 %
|
|
|
|
|
|
|
|
Non-GAAP
|
Organic revenue
change
|
|
|
|
|
|
3 %
|
Adjusted net earnings
1
|
|
273
|
|
275
|
|
(1) %
|
Adjusted diluted
EPS
|
|
1.94
|
|
1.90
|
|
2 %
|
1
|
Q1 2023 and 2022
adjusted net earnings exclude after tax purchase accounting
expenses and restructuring and other costs.
|
For the quarter ended March 31, 2023, Dover generated
revenue of $2.1 billion, an increase
of 1% (+3% organic). GAAP net earnings of $229 million increased 1%, and GAAP diluted EPS
of $1.63 was up 4%. On an adjusted
basis, net earnings of $273 million
decreased 1% and adjusted diluted EPS of $1.94 was up 2%.
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 delivered solid
results in the first quarter, as strong execution more than offset
inflationary and foreign currency translation headwinds. Revenue
grew across the majority of our portfolio, enabled by the recovery
in global supply chains and solid demand across many of our end
markets. New order intake in the quarter was healthy and
encouraging for the rest of the year.
"Margin performance was as expected with four out of five
segments improving year-over-year margins meaningfully on volume
leverage, cost actions, and disciplined pricing. Margins in the
Pumps and Process Solutions segment were lower due to the mix
effect of lower biopharma volumes, though sequential order rates in
the quarter inflected positively leading us to expect the biopharma
business will improve sequentially from here and return to growth
in the second half.
"Our prior investments in automation, productivity projects, and
cost actions are delivering the benefits necessary to offset
inflationary input costs. We are in the process of completing
several capacity expansions in our secular growth businesses that
we highlighted at our recent investor day putting us in position to
win share in these attractive markets. The recent acquisition of
Witte in our plastics and polymers business is performing ahead of
expectations. Our strong financial position allows us to pursue our
healthy pipeline of attractive bolt-on acquisitions and to
opportunistically return capital to our shareholders.
"We are encouraged by the trends and performance so far in 2023,
and have a constructive but also watchful outlook for the remainder
of 2023. Overall demand conditions in our attractive industrial
markets remain solid, and our bookings are healthy. Our elevated
backlog levels, especially in some of our longer-cycle businesses,
provide good visibility to our full year forecast. We are on track
to deliver our full year cash flow target as we liquidate inventory
in concert with a normalization of our backlog. We are mindful of
the mixed macroeconomic backdrop and are diligently monitoring our
customers' plans, with available cost control levers and
operational flexibility positioning us to deliver results in
various macroeconomic environments. We maintain our full year
adjusted EPS guidance."
FULL YEAR 2023 GUIDANCE:
In 2023, Dover expects to generate GAAP EPS in the range of
$7.81 to $8.01 (adjusted EPS of $8.85 to $9.05),
based on full year revenue growth of 3% to 5% (all-in and
organic).
CONFERENCE CALL
INFORMATION:
Dover will host a webcast and conference call to discuss its
first quarter results at 9:00 A.M. Eastern
Time (8:00 A.M. Central Time)
on Wednesday, April 26, 2023. 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 first quarter 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 $8
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
25,000 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." Additional
information is available at dovercorporation.com.
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 in which we
operate, 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 COVID-19, or other
future pandemics, on the global economy and on our customers,
suppliers, employees, business and cash flows, the impact on global
or a regional economy due to the outbreak or escalation of
hostilities or war, 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 realize synergies from newly acquired businesses, 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, 2022, 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
- FIRST QUARTER 2023
|
|
DOVER
CORPORATION
|
CONSOLIDATED
STATEMENTS OF EARNINGS
|
(unaudited)(in
thousands, except per share data*)
|
|
|
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
Revenue
|
$
2,079,023
|
|
$
2,051,901
|
Cost of goods and
services
|
1,332,004
|
|
1,308,707
|
Gross
profit
|
747,019
|
|
743,194
|
Selling, general and
administrative expenses
|
432,414
|
|
443,843
|
Operating
earnings
|
314,605
|
|
299,351
|
Interest
expense
|
34,214
|
|
26,552
|
Interest
income
|
(2,091)
|
|
(775)
|
Other income,
net
|
(3,808)
|
|
(2,129)
|
Earnings before
provision for income taxes
|
286,290
|
|
275,703
|
Provision for income
taxes
|
57,716
|
|
49,550
|
Net
earnings
|
$
228,574
|
|
$
226,153
|
|
|
|
|
Net earnings per
share:
|
|
|
|
Basic
|
$
1.64
|
|
$
1.57
|
Diluted
|
$
1.63
|
|
$
1.56
|
Weighted average
shares outstanding:
|
|
|
|
Basic
|
139,757
|
|
144,087
|
Diluted
|
140,616
|
|
145,329
|
|
|
|
|
Dividends paid per
common share
|
$
0.505
|
|
$
0.500
|
|
|
|
|
* Per share data may be
impacted by rounding.
|
|
|
|
DOVER
CORPORATION
|
QUARTERLY SEGMENT
INFORMATION
|
(unaudited)(in
thousands)
|
|
|
2023
|
|
2022
|
|
Q1
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2022
|
REVENUE
|
|
|
|
|
|
|
|
Engineered
Products
|
$ 497,549
|
|
$ 487,647
|
$ 514,436
|
$ 516,501
|
$ 525,048
|
$
2,043,632
|
Clean Energy &
Fueling
|
430,729
|
|
458,395
|
494,075
|
464,022
|
462,015
|
1,878,507
|
Imaging &
Identification
|
283,091
|
|
272,255
|
275,951
|
282,371
|
293,238
|
1,123,815
|
Pumps & Process
Solutions
|
413,881
|
|
435,195
|
441,127
|
433,558
|
418,355
|
1,728,235
|
Climate &
Sustainability Technologies
|
455,325
|
|
399,078
|
434,164
|
462,671
|
441,811
|
1,737,724
|
Intersegment
eliminations
|
(1,552)
|
|
(669)
|
(1,038)
|
(832)
|
(1,286)
|
(3,825)
|
Total consolidated
revenue
|
$ 2,079,023
|
|
$ 2,051,901
|
$ 2,158,715
|
$ 2,158,291
|
$ 2,139,181
|
$
8,508,088
|
|
|
|
|
|
|
|
|
NET
EARNINGS
|
|
|
|
|
|
|
|
Segment
Earnings:
|
|
|
|
|
|
|
|
Engineered
Products
|
$
84,275
|
|
$
71,130
|
$
81,671
|
$
90,145
|
$ 103,573
|
$ 346,519
|
Clean Energy &
Fueling
|
73,605
|
|
72,962
|
99,034
|
90,208
|
90,789
|
352,993
|
Imaging &
Identification
|
68,315
|
|
58,598
|
61,392
|
74,477
|
73,617
|
268,084
|
Pumps & Process
Solutions
|
115,244
|
|
146,617
|
138,048
|
128,573
|
119,780
|
533,018
|
Climate &
Sustainability Technologies
|
73,778
|
|
53,609
|
64,181
|
75,190
|
61,504
|
254,484
|
Total segment
earnings
|
415,217
|
|
402,916
|
444,326
|
458,593
|
449,263
|
1,755,098
|
Purchase accounting
expenses 1
|
42,679
|
|
53,286
|
47,019
|
40,526
|
40,272
|
181,103
|
Restructuring and other
costs 2
|
14,053
|
|
10,552
|
7,944
|
8,613
|
11,881
|
38,990
|
Loss on dispositions
3
|
—
|
|
194
|
—
|
—
|
—
|
194
|
Corporate expense /
other 4,5
|
40,072
|
|
37,404
|
27,967
|
27,876
|
42,033
|
135,280
|
Interest
expense
|
34,214
|
|
26,552
|
26,989
|
29,789
|
33,126
|
116,456
|
Interest
income
|
(2,091)
|
|
(775)
|
(949)
|
(1,244)
|
(1,462)
|
(4,430)
|
Earnings before
provision for income taxes
|
286,290
|
|
275,703
|
335,356
|
353,033
|
323,413
|
1,287,505
|
Provision for income
taxes
|
57,716
|
|
49,550
|
45,738
|
67,007
|
59,834
|
222,129
|
Net earnings
|
$ 228,574
|
|
$ 226,153
|
$ 289,618
|
$ 286,026
|
$ 263,579
|
$
1,065,376
|
|
|
|
|
|
|
|
|
SEGMENT EARNINGS
MARGIN
|
|
|
|
|
|
|
Engineered
Products
|
16.9 %
|
|
14.6 %
|
15.9 %
|
17.5 %
|
19.7 %
|
17.0 %
|
Clean Energy &
Fueling
|
17.1 %
|
|
15.9 %
|
20.0 %
|
19.4 %
|
19.7 %
|
18.8 %
|
Imaging &
Identification
|
24.1 %
|
|
21.5 %
|
22.2 %
|
26.4 %
|
25.1 %
|
23.9 %
|
Pumps & Process
Solutions
|
27.8 %
|
|
33.7 %
|
31.3 %
|
29.7 %
|
28.6 %
|
30.8 %
|
Climate &
Sustainability Technologies
|
16.2 %
|
|
13.4 %
|
14.8 %
|
16.3 %
|
13.9 %
|
14.6 %
|
Total segment earnings
margin
|
20.0 %
|
|
19.6 %
|
20.6 %
|
21.2 %
|
21.0 %
|
20.6 %
|
|
|
|
|
|
|
|
|
1 Purchase
accounting expenses are primarily comprised of amortization of
intangible assets and charges related to fair value step-ups for
acquired inventory sold during the period.
|
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 Loss on
dispositions includes working capital adjustments related to
dispositions.
|
4 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.
|
5 Q4 and FY
2022 include a $6.3 million settlement charge related to our U.S.
qualified defined benefit plan.
|
DOVER
CORPORATION
|
QUARTERLY EARNINGS
PER SHARE
|
(unaudited)(in
thousands, except per share data*)
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
Q1
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2022
|
Net earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
1.64
|
|
$
1.57
|
$
2.01
|
$
2.01
|
$
1.88
|
$
7.47
|
Diluted
|
$
1.63
|
|
$
1.56
|
$
2.00
|
$
2.00
|
$
1.87
|
$
7.42
|
|
|
|
|
|
|
|
|
Net earnings and
weighted average shares used in calculated earnings per share
amounts are as follows:
|
Net earnings
|
$
228,574
|
|
$
226,153
|
$
289,618
|
$ 286,026
|
$
263,579
|
$
1,065,376
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
Basic
|
139,757
|
|
144,087
|
143,832
|
142,506
|
140,343
|
142,681
|
Diluted
|
140,616
|
|
145,329
|
144,669
|
143,257
|
141,168
|
143,595
|
|
|
|
|
|
|
|
|
* 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
|
|
2023
|
|
2022
|
|
Q1
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2022
|
Adjusted net
earnings:
|
|
|
|
|
|
|
|
Net earnings
|
$ 228,574
|
|
$ 226,153
|
$ 289,618
|
$ 286,026
|
$ 263,579
|
$
1,065,376
|
Purchase accounting
expenses, pre-tax 1
|
42,679
|
|
53,286
|
47,019
|
40,526
|
40,272
|
181,103
|
Purchase accounting
expenses, tax impact 2
|
(9,599)
|
|
(12,538)
|
(11,013)
|
(9,494)
|
(8,689)
|
(41,734)
|
Restructuring and other
costs, pre-tax 3
|
14,053
|
|
10,552
|
7,944
|
8,613
|
11,881
|
38,990
|
Restructuring and other
costs, tax impact 2
|
(2,990)
|
|
(2,191)
|
(1,803)
|
(1,921)
|
(2,311)
|
(8,226)
|
Loss on dispositions,
pre-tax 4
|
—
|
|
194
|
—
|
—
|
—
|
194
|
Loss on dispositions,
tax-impact 2
|
—
|
|
(27)
|
—
|
—
|
|
(27)
|
Tax Cuts and Jobs Act
5
|
—
|
|
—
|
(22,579)
|
—
|
—
|
(22,579)
|
Adjusted net
earnings
|
$ 272,717
|
|
$ 275,429
|
$ 309,186
|
$ 323,750
|
$ 304,732
|
$
1,213,097
|
|
|
|
|
|
|
|
|
Adjusted diluted net
earnings per share:
|
|
|
|
|
|
|
Diluted net earnings
per share
|
$
1.63
|
|
$
1.56
|
$
2.00
|
$
2.00
|
$
1.87
|
$
7.42
|
Purchase accounting
expenses, pre-tax 1
|
0.30
|
|
0.37
|
0.33
|
0.28
|
0.29
|
1.27
|
Purchase accounting
expenses, tax impact 2
|
(0.07)
|
|
(0.09)
|
(0.08)
|
(0.07)
|
(0.06)
|
(0.30)
|
Restructuring and other
costs, pre-tax 3
|
0.10
|
|
0.07
|
0.05
|
0.06
|
0.08
|
0.26
|
Restructuring and other
costs, tax impact 2
|
(0.02)
|
|
(0.02)
|
(0.01)
|
(0.01)
|
(0.02)
|
(0.06)
|
Loss on dispositions,
pre-tax 4
|
—
|
|
—
|
—
|
—
|
—
|
—
|
Loss on dispositions,
tax-impact 2
|
—
|
|
—
|
—
|
—
|
—
|
—
|
Tax Cuts and Jobs Act
5
|
—
|
|
—
|
(0.16)
|
—
|
—
|
(0.16)
|
Adjusted diluted net
earnings per share
|
$
1.94
|
|
$
1.90
|
$
2.14
|
$
2.26
|
$
2.16
|
$
8.45
|
|
|
|
|
|
|
|
|
1 Purchase
accounting expenses are primarily comprised of amortization of
intangible assets and charges related to fair value step-ups for
acquired inventory sold during the period. Q1, Q2, and FY 2022
include $12,487, $7,158, and $19,869 of amortization of inventory
step-up, respectively, primarily related to the Q4 2021
acquisitions within our Clean Energy & Fueling
segment.
|
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 FY 2022 include $5,457 of
non-cash foreign currency translation losses reclassified to
earnings included within restructuring and other costs and $2,117
related to write-off of assets due to an exit from certain Latin
America countries for our Climate & Sustainability Technologies
segment.
|
4 Q1 2022
and FY 2022 represents working capital adjustments related to the
disposition of Unified Brands and the Race Winning Brands equity
method investment in Q4 2021.
|
5 Q2 and FY
2022 represent a reduction to income taxes previously recorded
related to the Tax Cuts and Jobs Act.
|
|
|
|
|
|
|
|
|
* Per share data and
totals may be impacted by rounding.
|
DOVER
CORPORATION
|
QUARTERLY ADJUSTED
SEGMENT EBITDA (NON-GAAP)
|
(unaudited)(in
thousands)
|
|
Non-GAAP
Reconciliations
|
|
2023
|
|
2022
|
|
Q1
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2022
|
ADJUSTED SEGMENT
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products:
|
|
|
|
|
|
|
|
Segment
earnings
|
$
84,275
|
|
$
71,130
|
$
81,671
|
$
90,145
|
$
103,573
|
$
346,519
|
Other depreciation and
amortization 1
|
7,070
|
|
7,274
|
6,799
|
6,819
|
6,853
|
27,745
|
Adjusted segment EBITDA
2
|
91,345
|
|
78,404
|
88,470
|
96,964
|
110,426
|
374,264
|
Adjusted segment EBITDA
margin 2
|
18.4 %
|
|
16.1 %
|
17.2 %
|
18.8 %
|
21.0 %
|
18.3 %
|
|
|
|
|
|
|
|
|
Clean Energy &
Fueling:
|
|
|
|
|
|
|
|
Segment
earnings
|
$
73,605
|
|
$
72,962
|
$
99,034
|
$
90,208
|
$
90,789
|
$
352,993
|
Other depreciation and
amortization 1
|
7,046
|
|
8,466
|
6,533
|
6,893
|
6,923
|
28,815
|
Adjusted segment EBITDA
2
|
80,651
|
|
81,428
|
105,567
|
97,101
|
97,712
|
381,808
|
Adjusted segment EBITDA
margin 2
|
18.7 %
|
|
17.8 %
|
21.4 %
|
20.9 %
|
21.1 %
|
20.3 %
|
|
|
|
|
|
|
|
|
Imaging &
Identification:
|
|
|
|
|
|
|
|
Segment
earnings
|
$
68,315
|
|
$
58,598
|
$
61,392
|
$
74,477
|
$
73,617
|
$
268,084
|
Other depreciation and
amortization 1
|
3,394
|
|
3,497
|
3,496
|
3,372
|
3,820
|
14,185
|
Adjusted segment EBITDA
2
|
71,709
|
|
62,095
|
64,888
|
77,849
|
77,437
|
282,269
|
Adjusted segment EBITDA
margin 2
|
25.3 %
|
|
22.8 %
|
23.5 %
|
27.6 %
|
26.4 %
|
25.1 %
|
|
|
|
|
|
|
|
|
Pumps & Process
Solutions:
|
|
|
|
|
|
|
|
Segment
earnings
|
$
115,244
|
|
$
146,617
|
$
138,048
|
$
128,573
|
$
119,780
|
$
533,018
|
Other depreciation and
amortization 1
|
10,939
|
|
9,922
|
9,787
|
10,137
|
10,993
|
40,839
|
Adjusted segment EBITDA
2
|
126,183
|
|
156,539
|
147,835
|
138,710
|
130,773
|
573,857
|
Adjusted segment EBITDA
margin 2
|
30.5 %
|
|
36.0 %
|
33.5 %
|
32.0 %
|
31.3 %
|
33.2 %
|
|
|
|
|
|
|
|
|
Climate &
Sustainability Technologies:
|
|
|
|
|
|
|
Segment
earnings
|
$
73,778
|
|
$
53,609
|
$
64,181
|
$
75,190
|
$
61,504
|
$
254,484
|
Other depreciation and
amortization 1
|
6,624
|
|
6,495
|
6,443
|
6,736
|
6,530
|
26,204
|
Adjusted segment EBITDA
2
|
80,402
|
|
60,104
|
70,624
|
81,926
|
68,034
|
280,688
|
Adjusted segment EBITDA
margin 2
|
17.7 %
|
|
15.1 %
|
16.3 %
|
17.7 %
|
15.4 %
|
16.2 %
|
|
|
|
|
|
|
|
|
Total
Segments:
|
|
|
|
|
|
|
|
Total segment earnings
2, 3
|
$
415,217
|
|
$
402,916
|
$
444,326
|
$
458,593
|
$
449,263
|
$ 1,755,098
|
Other depreciation and
amortization 1
|
35,073
|
|
35,654
|
33,058
|
33,957
|
35,119
|
137,788
|
Total Adjusted segment
EBITDA 2
|
450,290
|
|
438,570
|
477,384
|
492,550
|
484,382
|
1,892,886
|
Total Adjusted segment
EBITDA margin 2
|
21.7 %
|
|
21.4 %
|
22.1 %
|
22.8 %
|
22.6 %
|
22.2 %
|
|
|
|
|
|
|
|
|
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 net earnings.
|
DOVER
CORPORATION
|
QUARTERLY NET
EARNINGS TO ADJUSTED SEGMENT EBITDA RECONCILIATION
(NON-GAAP)
|
(unaudited)(in
thousands)
|
|
Non-GAAP
Reconciliations
|
|
2023
|
|
2022
|
|
Q1
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2022
|
Net earnings
|
$
228,574
|
|
$
226,153
|
$
289,618
|
$
286,026
|
$
263,579
|
$ 1,065,376
|
Provision for income
taxes
|
57,716
|
|
49,550
|
45,738
|
67,007
|
59,834
|
222,129
|
Earnings before
provision for income taxes
|
286,290
|
|
275,703
|
335,356
|
353,033
|
323,413
|
1,287,505
|
Interest
income
|
(2,091)
|
|
(775)
|
(949)
|
(1,244)
|
(1,462)
|
(4,430)
|
Interest
expense
|
34,214
|
|
26,552
|
26,989
|
29,789
|
33,126
|
116,456
|
Corporate expense /
other 1,7
|
40,072
|
|
37,404
|
27,967
|
27,876
|
42,033
|
135,280
|
Loss on dispositions
2
|
—
|
|
194
|
—
|
—
|
—
|
194
|
Restructuring and other
costs 3
|
14,053
|
|
10,552
|
7,944
|
8,613
|
11,881
|
38,990
|
Purchase accounting
expenses 4
|
42,679
|
|
53,286
|
47,019
|
40,526
|
40,272
|
181,103
|
Total segment earnings
6
|
415,217
|
|
402,916
|
444,326
|
458,593
|
449,263
|
1,755,098
|
Add: Other depreciation
and amortization 5
|
35,073
|
|
35,654
|
33,058
|
33,957
|
35,119
|
137,788
|
Total adjusted segment
EBITDA 6
|
$
450,290
|
|
$
438,570
|
$
477,384
|
$
492,550
|
$
484,382
|
$ 1,892,886
|
|
|
|
|
|
|
|
|
1 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.
|
2 Loss on
dispositions includes working capital adjustments related to
dispositions.
|
3
Restructuring and other costs relate to actions taken for headcount
reductions, facility consolidations and site closures, exit costs,
and other asset charges.
|
4 Purchase
accounting expenses are primarily comprised of amortization of
intangible assets and charges related to fair value step-ups for
acquired inventory sold during the period.
|
5 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.
|
6 Refer to
Non-GAAP Disclosures section for definition.
|
7 Q4 and FY
2022 include a $6.3 million settlement charge related to our U.S.
qualified defined benefit plan.
|
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
|
|
|
2023
|
|
Q1
|
Organic
|
|
Engineered
Products
|
3.4 %
|
Clean Energy &
Fueling
|
(2.6) %
|
Imaging &
Identification
|
8.2 %
|
Pumps & Process
Solutions
|
(7.1) %
|
Climate &
Sustainability Technologies
|
16.2 %
|
Total
Organic
|
2.9 %
|
Acquisitions
|
0.9 %
|
Currency
translation
|
(2.5) %
|
Total*
|
1.3 %
|
|
* Totals may be
impacted by rounding.
|
|
|
2023
|
|
Q1
|
Organic
|
|
United
States
|
2.6 %
|
Other
Americas
|
16.8 %
|
Europe
|
(0.3) %
|
Asia
|
(3.9) %
|
Other
|
20.8 %
|
Total
Organic
|
2.9 %
|
Acquisitions
|
0.9 %
|
Currency
translation
|
(2.5) %
|
Total*
|
1.3 %
|
|
* Totals may be
impacted by rounding.
|
Adjusted EPS
Guidance Reconciliation
|
|
Range
|
2023 Guidance for
Earnings per Share (GAAP)
|
$
7.81
|
|
$
8.01
|
Purchase accounting
expenses, net
|
|
0.90
|
|
Restructuring and other
costs, net
|
|
0.14
|
|
2023 Guidance for
Adjusted Earnings per Share (Non-GAAP)
|
$
8.85
|
|
$
9.05
|
* 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
|
|
2023
|
|
2022
|
|
Q1
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2022
|
Net Cash Flows Provided
By (Used In):
|
|
|
|
|
|
|
Operating
activities
|
$
241,284
|
|
$
23,683
|
$
178,773
|
$
264,625
|
$
338,643
|
$
805,724
|
Investing
activities
|
(43,556)
|
|
(46,963)
|
(68,890)
|
(286,208)
|
(138,863)
|
(540,924)
|
Financing
activities
|
(306,565)
|
|
(75,204)
|
120,469
|
(178,844)
|
(126,686)
|
(260,265)
|
|
Quarterly Free Cash
Flow (Non-GAAP)
|
|
2023
|
|
2022
|
|
Q1
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2022
|
Cash flow from
operating activities
|
$
241,284
|
|
$
23,683
|
$
178,773
|
$
264,625
|
$
338,643
|
$
805,724
|
Less: Capital
expenditures
|
(48,375)
|
|
(50,381)
|
(50,196)
|
(65,462)
|
(54,923)
|
(220,962)
|
Free cash
flow
|
$
192,909
|
|
$
(26,698)
|
$
128,577
|
$
199,163
|
$
283,720
|
$
584,762
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities as a percentage
of revenue
|
11.6 %
|
|
1.2 %
|
8.3 %
|
12.3 %
|
15.8 %
|
9.5 %
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities as a percentage
of adjusted net earnings
|
88.5 %
|
|
8.6 %
|
57.8 %
|
81.7 %
|
111.1 %
|
66.4 %
|
|
|
|
|
|
|
|
|
Free cash flow as a
percentage of revenue
|
9.3 %
|
|
(1.3) %
|
6.0 %
|
9.2 %
|
13.3 %
|
6.9 %
|
|
|
|
|
|
|
|
|
Free cash flow as a
percentage of adjusted net
earnings
|
70.7 %
|
|
(9.7) %
|
41.6 %
|
61.5 %
|
93.1 %
|
48.2 %
|
DOVER
CORPORATION
|
PERFORMANCE
MEASURES
|
(unaudited)(in
thousands)
|
|
|
2023
|
|
2022
|
|
Q1
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2022
|
BOOKINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
$
536,472
|
|
$
541,035
|
$
452,668
|
$
512,374
|
$
498,249
|
$ 2,004,326
|
Clean Energy &
Fueling
|
454,526
|
|
501,491
|
487,861
|
432,259
|
399,414
|
1,821,025
|
Imaging &
Identification
|
290,712
|
|
307,104
|
292,136
|
281,789
|
273,170
|
1,154,199
|
Pumps & Process
Solutions
|
464,297
|
|
459,790
|
471,693
|
415,253
|
362,468
|
1,709,204
|
Climate &
Sustainability Technologies
|
300,014
|
|
444,852
|
403,574
|
422,820
|
388,527
|
1,659,773
|
Intersegment
eliminations
|
(1,530)
|
|
(2,295)
|
(1,207)
|
(423)
|
(1,391)
|
(5,316)
|
Total consolidated
bookings
|
$ 2,044,491
|
|
$ 2,251,977
|
$ 2,106,725
|
$ 2,064,072
|
$ 1,920,437
|
$ 8,343,211
|
|
|
|
|
|
|
|
|
ADJUSTED
BOOKINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
$
536,472
|
|
$
541,035
|
$
452,668
|
$
512,374
|
$
498,249
|
$ 2,004,326
|
Clean Energy &
Fueling
|
454,526
|
|
501,491
|
487,861
|
432,259
|
399,414
|
1,821,025
|
Imaging &
Identification
|
290,712
|
|
307,104
|
292,136
|
281,789
|
273,170
|
1,154,199
|
Pumps & Process
Solutions
|
464,297
|
|
459,790
|
471,693
|
415,253
|
362,468
|
1,709,204
|
Climate &
Sustainability Technologies1
|
390,814
|
|
444,852
|
477,674
|
422,820
|
388,527
|
1,733,873
|
Intersegment
eliminations
|
(1,530)
|
|
(2,295)
|
(1,207)
|
(423)
|
(1,391)
|
(5,316)
|
Total consolidated
adjusted bookings
|
$ 2,135,291
|
|
$ 2,251,977
|
$ 2,180,825
|
$ 2,064,072
|
$ 1,920,437
|
$ 8,417,311
|
1 Q1 2023
excludes a reversal of ~$90M of previously-booked orders from one
customer in food retail. Q2 2022 and FY 2022 excludes a reversal of
~$74M of previously-booked orders from one customer in beverage
can-making.
|
|
|
|
|
|
|
|
|
BACKLOG
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
$
755,442
|
|
$
830,135
|
$
759,589
|
$
742,766
|
$
720,114
|
|
Clean Energy &
Fueling
|
337,116
|
|
426,342
|
411,350
|
368,050
|
312,142
|
|
Imaging &
Identification
|
236,215
|
|
243,411
|
255,255
|
241,896
|
232,812
|
|
Pumps & Process
Solutions
|
742,890
|
|
704,935
|
715,646
|
679,955
|
686,512
|
|
Climate &
Sustainability Technologies
|
899,379
|
|
1,218,155
|
1,186,180
|
1,139,737
|
1,068,644
|
|
Intersegment
eliminations
|
(1,083)
|
|
(1,756)
|
(1,839)
|
(1,439)
|
(1,893)
|
|
Total consolidated
backlog
|
$ 2,969,959
|
|
$ 3,421,222
|
$ 3,326,181
|
$ 3,170,965
|
$ 3,018,331
|
|
|
2023
|
|
Q1
|
Q1
Adjusted
|
BOOKINGS AND
ADJUSTED BOOKINGS GROWTH FACTORS
|
|
|
|
|
|
Organic
|
|
|
Engineered
Products
|
0.9 %
|
0.9 %
|
Clean Energy &
Fueling
|
(6.1) %
|
(6.1) %
|
Imaging &
Identification
|
(1.8) %
|
(1.8) %
|
Pumps & Process
Solutions
|
(1.2) %
|
(1.2) %
|
Climate &
Sustainability Technologies
|
(30.6) %
|
(10.3) %
|
Total
Organic
|
(7.6) %
|
(3.7) %
|
Acquisitions
|
1.0 %
|
1.0 %
|
Currency
translation
|
(2.6) %
|
(2.6) %
|
Total*
|
(9.2) %
|
(5.3) %
|
* 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 net earnings, adjusted
diluted net earnings per share, 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 net earnings,
and organic revenue growth are not financial measures under GAAP
and should not be considered as a substitute for net earnings,
diluted net earnings 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.
Adjusted net earnings represents net earnings adjusted for the
effect of purchase accounting expenses, restructuring and other
costs/benefits, Tax Cuts and Jobs Act, and gain/loss on
dispositions. Purchase accounting expenses are primarily comprised
of amortization of intangible assets and charges related to fair
value step-ups for acquired inventory sold during the period. 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 net earnings per share or adjusted earnings per
share represent diluted EPS adjusted for the effect of purchase
accounting expenses, restructuring and other costs/benefits, Tax
Cuts and Jobs Act and gain/loss on dispositions.
Total segment earnings is defined as the sum of earnings before
purchase accounting expenses, restructuring and other
costs/benefits, 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 will 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 net earnings equals free
cash flow divided by adjusted net earnings. 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 bookings performance 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. This metric is an important measure of
performance and an indicator of revenue order trends.
Adjusted bookings represent bookings, excluding reversal of
$90 million of previously booked
orders from one customer in the first quarter of 2023 and
$74 million of previously booked
orders from one customer in the second quarter of 2022 within the
Climate & Sustainability Technologies segment. This metric is
useful for comparability with historical bookings.
Organic bookings represent total orders received from customers
in the current reporting period 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.
Adjusted organic bookings represent organic bookings, excluding
a reversal of $90 million of
previously booked orders from one customer within the Climate &
Sustainability Technologies segment. This metric is useful for
comparability with historical organic bookings.
Backlog represents an estimate of the total remaining bookings
at a point in time for which performance obligations have not yet
been satisfied. This metric is useful as it represents the
aggregate amount we expect to recognize as revenue in the
future.
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
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/dover-reports-first-quarter-2023-results-301807613.html
SOURCE Dover