DOWNERS
GROVE, Ill., April 25,
2024 /PRNewswire/ -- Dover (NYSE: DOV), a diversified
global manufacturer, announced its financial results for the first
quarter ended March 31, 2024. 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)
|
|
2024
|
|
2023
|
|
%
Change*
|
U.S.
GAAP
|
Revenue
|
|
$
2,094
|
|
$
2,079
|
|
1 %
|
Net
earnings
|
|
632
|
|
229
|
|
177 %
|
Diluted
EPS
|
|
4.52
|
|
1.63
|
|
177 %
|
|
|
|
|
|
|
|
Non-GAAP
|
Organic revenue
change
|
|
|
|
|
|
(1) %
|
Adjusted net earnings
1
|
|
273
|
|
273
|
|
— %
|
Adjusted diluted
EPS
|
|
1.95
|
|
1.94
|
|
1 %
|
1 Q1 2024 and 2023 adjusted
net earnings exclude after tax purchase accounting expenses and
restructuring and other costs. Q1 2024 also excludes the after tax
gain on the sale of De-Sta-Co.
|
* Change may be
impacted by rounding.
|
For the quarter ended March 31,
2024, Dover generated revenue of $2.1
billion, an increase of 1% (-1% organic). GAAP net earnings
of $632 million increased 177%, and
GAAP diluted EPS of $4.52 was up
177%. On an adjusted basis, net earnings of $273 million was approximately flat and adjusted
diluted EPS of $1.95 was up 1%.
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 first quarter
results were in line with our expectations. We are particularly
pleased with the success of our organic growth platforms, as well
as the order trends in the quarter, which validate the aggressive
working capital posture we adopted in 2023. Order momentum in the
quarter was strong and broad-based, particularly in our
shorter-cycle end markets, building off the prior year exit rate
and bolstering confidence in our full year outlook. Strong growth
in several key markets and improving performance in biopharma
components set us up for favorable sequential margin mix over the
balance of the year.
"We remained active in portfolio management and productive
capital deployment. During the quarter we completed two synergistic
bolt-on acquisitions in our Clean Energy and Fueling segment adding
attractive digital and recurring revenue streams to our car wash
and retail fueling platforms. We launched a $500 million accelerated share repurchase program
returning excess capital to shareholders. Our continued strong cash
flow generation, together with proceeds from the recently closed
De-Sta-Co divestiture, provide ample capacity for further capital
deployment in 2024.
"We are off to a solid start in 2024, and the setup for the
remainder of the year is encouraging. Our order rate momentum and
healthy underlying demand conditions across the portfolio support
the outlook for continued volume and profit improvement through the
year. We are narrowing our full year adjusted EPS guidance to the
higher end of the range, and will further evaluate our full year
targets as the year progresses should present demand trends
continue."
FULL YEAR 2024 GUIDANCE:
In 2024, Dover expects to generate GAAP EPS in the range of
$10.78 to $10.93 (adjusted EPS of $9.00 to $9.15),
based on full year revenue growth of 2% to 4% (1% to 3% on an
organic basis). Full year GAAP EPS includes the gain on sale of
De-Sta-Co.
CONFERENCE CALL INFORMATION:
Dover will host a webcast and conference call to discuss its
first quarter results at 9:30 A.M.
Eastern Time (8:30 A.M. Central
Time) on Thursday, April 25, 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 $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
approximately 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."
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 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 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, 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
- FIRST QUARTER 2024
|
|
DOVER
CORPORATION
|
CONSOLIDATED
STATEMENTS OF EARNINGS
|
(unaudited)(in
thousands, except per share data*)
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
Revenue
|
$
2,093,941
|
|
$
2,079,023
|
Cost of goods and
services
|
1,336,686
|
|
1,332,004
|
Gross
profit
|
757,255
|
|
747,019
|
Selling, general and
administrative expenses
|
463,124
|
|
432,414
|
Operating
earnings
|
294,131
|
|
314,605
|
Interest
expense
|
36,365
|
|
34,214
|
Interest
income
|
(4,757)
|
|
(2,091)
|
Gain on
disposition
|
(529,943)
|
|
—
|
Other income,
net
|
(6,416)
|
|
(3,808)
|
Earnings before
provision for income taxes
|
798,882
|
|
286,290
|
Provision for income
taxes
|
166,661
|
|
57,716
|
Net
earnings
|
$
632,221
|
|
$
228,574
|
|
|
|
|
Net earnings per
share:
|
|
|
|
Basic
|
$
4.55
|
|
$
1.64
|
Diluted
|
$
4.52
|
|
$
1.63
|
Weighted average
shares outstanding:
|
|
|
|
Basic
|
139,051
|
|
139,757
|
Diluted
|
139,869
|
|
140,616
|
|
|
|
|
Dividends paid per
common share
|
$
0.510
|
|
$
0.505
|
|
|
|
|
* Per share data may be
impacted by rounding.
|
|
|
|
DOVER
CORPORATION
|
QUARTERLY SEGMENT
INFORMATION
|
(unaudited)(in
thousands)
|
|
|
2024
|
|
2023
|
|
Q1
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2023
|
REVENUE
|
|
|
|
|
|
|
|
Engineered
Products
|
$
543,140
|
|
$
497,549
|
$
473,687
|
$
504,271
|
$
529,080
|
$ 2,004,587
|
Clean Energy &
Fueling
|
445,053
|
|
430,729
|
441,166
|
466,959
|
449,423
|
1,788,277
|
Imaging &
Identification
|
276,806
|
|
283,091
|
271,932
|
276,179
|
285,530
|
1,116,732
|
Pumps & Process
Solutions
|
465,729
|
|
413,881
|
465,626
|
431,373
|
444,811
|
1,755,691
|
Climate &
Sustainability Technologies
|
364,292
|
|
455,325
|
449,001
|
475,911
|
398,345
|
1,778,582
|
Intersegment
eliminations
|
(1,079)
|
|
(1,552)
|
(1,326)
|
(1,425)
|
(1,432)
|
(5,735)
|
Total consolidated
revenue
|
$
2,093,941
|
|
$
2,079,023
|
$
2,100,086
|
$
2,153,268
|
$
2,105,757
|
$ 8,438,134
|
|
|
|
|
|
|
|
|
NET
EARNINGS
|
|
|
|
|
|
|
|
Segment
Earnings:
|
|
|
|
|
|
|
|
Engineered
Products
|
$
103,969
|
|
$
84,275
|
$
73,076
|
$
101,610
|
$
118,464
|
$
377,425
|
Clean Energy &
Fueling
|
69,675
|
|
73,605
|
83,616
|
92,483
|
78,900
|
328,604
|
Imaging &
Identification
|
69,959
|
|
68,315
|
61,336
|
70,316
|
72,545
|
272,512
|
Pumps & Process
Solutions
|
118,737
|
|
115,244
|
129,337
|
117,907
|
121,917
|
484,405
|
Climate &
Sustainability Technologies
|
50,759
|
|
73,778
|
76,074
|
84,060
|
71,468
|
305,380
|
Total segment
earnings
|
413,099
|
|
415,217
|
423,439
|
466,376
|
463,294
|
1,768,326
|
Purchase
accounting
expenses
1
|
45,551
|
|
42,679
|
40,200
|
40,320
|
41,744
|
164,943
|
Restructuring and other
costs 2
|
24,684
|
|
14,053
|
18,143
|
12,327
|
19,150
|
63,673
|
Disposition costs
3
|
—
|
|
—
|
—
|
—
|
1,302
|
1,302
|
Gain on disposition
4
|
(529,943)
|
|
—
|
—
|
—
|
—
|
—
|
Corporate
expense
/ other
5
|
42,317
|
|
40,072
|
33,922
|
30,686
|
45,913
|
150,593
|
Interest
expense
|
36,365
|
|
34,214
|
33,804
|
32,389
|
30,898
|
131,305
|
Interest
income
|
(4,757)
|
|
(2,091)
|
(2,653)
|
(3,808)
|
(4,944)
|
(13,496)
|
Earnings before
provision for income taxes
|
798,882
|
|
286,290
|
300,023
|
354,462
|
329,231
|
1,270,006
|
Provision for income
taxes 6
|
166,661
|
|
57,716
|
57,784
|
64,709
|
32,969
|
213,178
|
Net earnings
|
$
632,221
|
|
$
228,574
|
$
242,239
|
$
289,753
|
$
296,262
|
$ 1,056,828
|
|
|
|
|
|
|
|
|
SEGMENT EARNINGS
MARGIN
|
|
|
|
|
|
|
Engineered
Products
|
19.1 %
|
|
16.9 %
|
15.4 %
|
20.1 %
|
22.4 %
|
18.8 %
|
Clean Energy &
Fueling
|
15.7 %
|
|
17.1 %
|
19.0 %
|
19.8 %
|
17.6 %
|
18.4 %
|
Imaging &
Identification
|
25.3 %
|
|
24.1 %
|
22.6 %
|
25.5 %
|
25.4 %
|
24.4 %
|
Pumps & Process
Solutions
|
25.5 %
|
|
27.8 %
|
27.8 %
|
27.3 %
|
27.4 %
|
27.6 %
|
Climate &
Sustainability Technologies
|
13.9 %
|
|
16.2 %
|
16.9 %
|
17.7 %
|
17.9 %
|
17.2 %
|
Total segment earnings
margin
|
19.7 %
|
|
20.0 %
|
20.2 %
|
21.7 %
|
22.0 %
|
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.
|
4
Gain on disposition due to the sale of
De-Sta-Co in the Engineered Products segment.
|
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
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2023
|
Net earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
4.55
|
|
$
1.64
|
$
1.73
|
$
2.07
|
$
2.12
|
$
7.56
|
Diluted
|
$
4.52
|
|
$
1.63
|
$
1.72
|
$
2.06
|
$
2.11
|
$
7.52
|
|
|
|
|
|
|
|
|
Net earnings and
weighted average shares used in calculated earnings per share
amounts are as follows:
|
Net earnings
|
$
632,221
|
|
$ 228,574
|
$ 242,239
|
$ 289,753
|
$ 296,262
|
$
1,056,828
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
Basic
|
139,051
|
|
139,757
|
139,862
|
139,878
|
139,893
|
139,848
|
Diluted
|
139,869
|
|
140,616
|
140,578
|
140,615
|
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
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2023
|
Adjusted net
earnings:
|
|
|
|
|
|
|
|
Net earnings
|
$ 632,221
|
|
$ 228,574
|
$ 242,239
|
$ 289,753
|
$ 296,262
|
$
1,056,828
|
Purchase accounting
expenses, pre-tax 1
|
45,551
|
|
42,679
|
40,200
|
40,320
|
41,744
|
164,943
|
Purchase accounting
expenses, tax impact 2
|
(10,005)
|
|
(9,599)
|
(9,012)
|
(8,966)
|
(9,143)
|
(36,720)
|
Restructuring and other
costs, pre-tax 3
|
24,684
|
|
14,053
|
18,143
|
12,327
|
19,150
|
63,673
|
Restructuring and other
costs, tax impact 2
|
(4,875)
|
|
(2,990)
|
(3,665)
|
(2,556)
|
(3,970)
|
(13,181)
|
Disposition costs,
pre-tax 4
|
—
|
|
—
|
—
|
—
|
1,302
|
1,302
|
Disposition costs, tax
impact 2
|
—
|
|
—
|
—
|
—
|
(270)
|
(270)
|
Gain on disposition,
pre-tax 5
|
(529,943)
|
|
—
|
—
|
—
|
—
|
—
|
Gain on disposition,
tax-impact 2
|
114,973
|
|
—
|
—
|
—
|
—
|
—
|
Adjusted net
earnings
|
$ 272,606
|
|
$ 272,717
|
$ 287,905
|
$ 330,878
|
$ 345,075
|
$
1,236,575
|
|
|
|
|
|
|
|
|
Adjusted diluted net
earnings per share:
|
|
|
|
|
|
|
Diluted net earnings
per share
|
$
4.52
|
|
$
1.63
|
$
1.72
|
$
2.06
|
$
2.11
|
$
7.52
|
Purchase accounting
expenses, pre-tax 1
|
0.33
|
|
0.30
|
0.29
|
0.29
|
0.30
|
1.18
|
Purchase accounting
expenses, tax impact 2
|
(0.07)
|
|
(0.07)
|
(0.06)
|
(0.06)
|
(0.07)
|
(0.26)
|
Restructuring and other
costs, pre-tax 3
|
0.18
|
|
0.10
|
0.13
|
0.09
|
0.14
|
0.46
|
Restructuring and other
costs, tax impact 2
|
(0.03)
|
|
(0.02)
|
(0.03)
|
(0.02)
|
(0.03)
|
(0.10)
|
Disposition costs,
pre-tax 4
|
—
|
|
—
|
—
|
—
|
0.01
|
0.01
|
Disposition costs, tax
impact 2
|
—
|
|
—
|
—
|
—
|
—
|
—
|
Gain on disposition,
pre-tax 5
|
(3.79)
|
|
—
|
—
|
—
|
—
|
—
|
Gain on disposition,
tax-impact 2
|
0.82
|
|
—
|
—
|
—
|
—
|
—
|
Adjusted diluted net
earnings per share
|
$
1.95
|
|
$
1.94
|
$
2.05
|
$
2.35
|
$
2.45
|
$
8.80
|
|
|
|
|
|
|
|
|
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 2024
includes $3.4M and Q3 and FY 2023 include $3.3M 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.
|
5
Gain on disposition due to the sale of
De-Sta-Co in the Engineered Products 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
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2023
|
ADJUSTED SEGMENT
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products:
|
|
|
|
|
|
|
|
Segment
earnings
|
$ 103,969
|
|
$
84,275
|
$
73,076
|
$ 101,610
|
$ 118,464
|
$ 377,425
|
Other depreciation and
amortization 1
|
6,361
|
|
7,070
|
7,300
|
7,306
|
6,397
|
28,073
|
Adjusted segment EBITDA
2
|
110,330
|
|
91,345
|
80,376
|
108,916
|
124,861
|
405,498
|
Adjusted segment EBITDA
margin 2
|
20.3 %
|
|
18.4 %
|
17.0 %
|
21.6 %
|
23.6 %
|
20.2 %
|
|
|
|
|
|
|
|
|
Clean Energy &
Fueling:
|
|
|
|
|
|
|
|
Segment
earnings
|
$
69,675
|
|
$
73,605
|
$
83,616
|
$
92,483
|
$
78,900
|
$ 328,604
|
Other depreciation and
amortization 1
|
7,921
|
|
7,046
|
7,541
|
7,686
|
7,844
|
30,117
|
Adjusted segment EBITDA
2
|
77,596
|
|
80,651
|
91,157
|
100,169
|
86,744
|
358,721
|
Adjusted segment EBITDA
margin 2
|
17.4 %
|
|
18.7 %
|
20.7 %
|
21.5 %
|
19.3 %
|
20.1 %
|
|
|
|
|
|
|
|
|
Imaging &
Identification:
|
|
|
|
|
|
|
|
Segment
earnings
|
$
69,959
|
|
$
68,315
|
$
61,336
|
$
70,316
|
$
72,545
|
$ 272,512
|
Other depreciation and
amortization 1
|
3,733
|
|
3,394
|
3,745
|
3,972
|
4,182
|
15,293
|
Adjusted segment EBITDA
2
|
73,692
|
|
71,709
|
65,081
|
74,288
|
76,727
|
287,805
|
Adjusted segment EBITDA
margin 2
|
26.6 %
|
|
25.3 %
|
23.9 %
|
26.9 %
|
26.9 %
|
25.8 %
|
|
|
|
|
|
|
|
|
Pumps & Process
Solutions:
|
|
|
|
|
|
|
|
Segment
earnings
|
$ 118,737
|
|
$
115,244
|
$ 129,337
|
$ 117,907
|
$ 121,917
|
$ 484,405
|
Other depreciation and
amortization 1
|
12,139
|
|
10,939
|
11,609
|
12,052
|
11,744
|
46,344
|
Adjusted segment EBITDA
2
|
130,876
|
|
126,183
|
140,946
|
129,959
|
133,661
|
530,749
|
Adjusted segment EBITDA
margin 2
|
28.1 %
|
|
30.5 %
|
30.3 %
|
30.1 %
|
30.0 %
|
30.2 %
|
|
|
|
|
|
|
|
|
Climate &
Sustainability Technologies:
|
|
|
|
|
|
|
Segment
earnings
|
$
50,759
|
|
$
73,778
|
$
76,074
|
$
84,060
|
$
71,468
|
$ 305,380
|
Other depreciation and
amortization 1
|
7,275
|
|
6,624
|
6,895
|
6,954
|
7,084
|
27,557
|
Adjusted segment EBITDA
2
|
58,034
|
|
80,402
|
82,969
|
91,014
|
78,552
|
332,937
|
Adjusted segment EBITDA
margin 2
|
15.9 %
|
|
17.7 %
|
18.5 %
|
19.1 %
|
19.7 %
|
18.7 %
|
|
|
|
|
|
|
|
|
Total
Segments:
|
|
|
|
|
|
|
|
Total segment earnings
2, 3
|
$ 413,099
|
|
$
415,217
|
$ 423,439
|
$ 466,376
|
$ 463,294
|
$
1,768,326
|
Other depreciation and
amortization 1
|
37,429
|
|
35,073
|
37,090
|
37,970
|
37,251
|
147,384
|
Total Adjusted segment
EBITDA 2
|
450,528
|
|
450,290
|
460,529
|
504,346
|
500,545
|
1,915,710
|
Total Adjusted segment
EBITDA margin 2
|
21.5 %
|
|
21.7 %
|
21.9 %
|
23.4 %
|
23.8 %
|
22.7 %
|
|
|
|
|
|
|
|
|
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
|
|
|
2024
|
|
2023
|
|
Q1
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2023
|
Net earnings
|
$ 632,221
|
|
$ 228,574
|
$ 242,239
|
$ 289,753
|
$ 296,262
|
$
1,056,828
|
Provision for income
taxes 1
|
166,661
|
|
57,716
|
57,784
|
64,709
|
32,969
|
213,178
|
Earnings before
provision for income taxes
|
798,882
|
|
286,290
|
300,023
|
354,462
|
329,231
|
1,270,006
|
Interest
income
|
(4,757)
|
|
(2,091)
|
(2,653)
|
(3,808)
|
(4,944)
|
(13,496)
|
Interest
expense
|
36,365
|
|
34,214
|
33,804
|
32,389
|
30,898
|
131,305
|
Corporate expense /
other 2
|
42,317
|
|
40,072
|
33,922
|
30,686
|
45,913
|
150,593
|
Disposition costs
3
|
—
|
|
—
|
—
|
—
|
1,302
|
1,302
|
Gain on disposition
4
|
(529,943)
|
|
—
|
—
|
—
|
—
|
—
|
Restructuring and other
costs 5
|
24,684
|
|
14,053
|
18,143
|
12,327
|
19,150
|
63,673
|
Purchase accounting
expenses 6
|
45,551
|
|
42,679
|
40,200
|
40,320
|
41,744
|
164,943
|
Total segment earnings
7
|
413,099
|
|
415,217
|
423,439
|
466,376
|
463,294
|
1,768,326
|
Add: Other depreciation
and amortization 8
|
37,429
|
|
35,073
|
37,090
|
37,970
|
37,251
|
147,384
|
Total adjusted segment
EBITDA 7
|
$ 450,528
|
|
$ 450,290
|
$ 460,529
|
$ 504,346
|
$ 500,545
|
$
1,915,710
|
|
|
|
|
|
|
|
|
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.
|
4
Gain on disposition due to the sale of
De-Sta-Co in the Engineered Products segment.
|
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
|
|
Q1
|
Organic
|
|
Engineered
Products
|
9.2 %
|
Clean Energy &
Fueling
|
1.4 %
|
Imaging &
Identification
|
(1.6) %
|
Pumps & Process
Solutions
|
4.5 %
|
Climate &
Sustainability Technologies
|
(20.3) %
|
Total
Organic
|
(1.3) %
|
Acquisitions
|
2.0 %
|
Currency
translation
|
— %
|
Total*
|
0.7 %
|
|
* Totals may be
impacted by rounding.
|
|
|
2024
|
|
Q1
|
Organic
|
|
United
States
|
1.3 %
|
Other
Americas
|
(5.5) %
|
Europe
|
(0.5) %
|
Asia
|
(4.9) %
|
Other
|
(21.7) %
|
Total
Organic
|
(1.3) %
|
Acquisitions
|
2.0 %
|
Currency
translation
|
— %
|
Total*
|
0.7 %
|
|
* Totals may be
impacted by rounding.
|
Adjusted EPS
Guidance Reconciliation
|
|
Range
|
2024 Guidance for
Earnings per Share (GAAP)
|
$10.78
|
|
$10.93
|
Purchase accounting
expenses, net
|
|
1.00
|
|
Restructuring and other
costs, net
|
|
0.22
|
|
Gain on disposition,
net
|
|
(3.00)
|
|
2024 Guidance for
Adjusted Earnings per Share (Non-GAAP)
|
$9.00
|
|
$9.15
|
|
* 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
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2023
|
Net Cash Flows Provided
By (Used In):
|
|
|
|
|
|
|
Operating
activities
|
$ 166,593
|
|
$ 241,284
|
$ 195,254
|
$ 383,457
|
$ 516,350
|
$
1,336,345
|
Investing
activities
|
429,851
|
|
(43,556)
|
(42,454)
|
(50,243)
|
(590,377)
|
(726,630)
|
Financing
activities
|
(80,782)
|
|
(306,565)
|
(137,924)
|
(312,716)
|
189,149
|
(568,056)
|
|
Quarterly Free Cash
Flow (Non-GAAP)
|
|
|
2024
|
|
2023
|
|
Q1
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2023
|
Cash flow from
operating activities
|
$ 166,593
|
|
$ 241,284
|
$ 195,254
|
$ 383,457
|
$ 516,350
|
$
1,336,345
|
Less: Capital
expenditures
|
(44,475)
|
|
(48,375)
|
(40,079)
|
(43,128)
|
(61,010)
|
(192,592)
|
Free cash
flow
|
$ 122,118
|
|
$ 192,909
|
$ 155,175
|
$ 340,329
|
$ 455,340
|
$
1,143,753
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities as a percentage of revenue
|
8.0 %
|
|
11.6 %
|
9.3 %
|
17.8 %
|
24.5 %
|
15.8 %
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities as a percentage of adjusted net
earnings
|
61.1 %
|
|
88.5 %
|
67.8 %
|
115.9 %
|
149.6 %
|
108.1 %
|
|
|
|
|
|
|
|
|
Free cash flow as a
percentage of revenue
|
5.8 %
|
|
9.3 %
|
7.4 %
|
15.8 %
|
21.6 %
|
13.6 %
|
|
|
|
|
|
|
|
|
Free cash flow as a
percentage of adjusted net earnings
|
44.8 %
|
|
70.7 %
|
53.9 %
|
102.9 %
|
132.0 %
|
92.5 %
|
DOVER
CORPORATION
|
PERFORMANCE
MEASURES
|
(unaudited)(in
thousands)
|
|
|
2024
|
|
2023
|
|
Q1
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2023
|
BOOKINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
$ 541,982
|
|
$ 536,472
|
$ 489,131
|
$ 576,641
|
$ 494,528
|
$
2,096,772
|
Clean Energy &
Fueling
|
471,610
|
|
454,526
|
440,137
|
449,663
|
401,195
|
1,745,521
|
Imaging &
Identification
|
278,433
|
|
290,712
|
262,092
|
271,113
|
297,312
|
1,121,229
|
Pumps & Process
Solutions
|
473,632
|
|
464,297
|
394,317
|
363,111
|
455,390
|
1,677,115
|
Climate &
Sustainability Technologies
|
453,086
|
|
371,643
|
310,911
|
340,474
|
325,625
|
1,348,653
|
Intersegment
eliminations
|
(1,107)
|
|
(1,530)
|
(1,918)
|
(849)
|
(2,125)
|
(6,422)
|
Total consolidated
bookings
|
$
2,217,636
|
|
$
2,116,120
|
$
1,894,670
|
$
2,000,153
|
$
1,971,925
|
$
7,982,868
|
|
2024
|
|
Q1
|
BOOKINGS GROWTH
FACTORS
|
|
|
|
Organic
|
|
Engineered
Products
|
1.0 %
|
Clean Energy &
Fueling
|
1.6 %
|
Imaging &
Identification
|
(3.4) %
|
Pumps & Process
Solutions
|
(4.6) %
|
Climate &
Sustainability Technologies
|
22.3 %
|
Total
Organic
|
3.0 %
|
Acquisitions
|
1.9 %
|
Currency
translation
|
(0.1) %
|
Total*
|
4.8 %
|
* 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, disposition costs and gain/loss on disposition.
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 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,
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 disposition,
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 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 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