Dover Reports First Quarter 2020 Diluted EPS Of $1.21 ($1.39 On An Adjusted Basis); Suspends 2020 Guidance With An Objective To Reinstate Next Quarter
DOWNERS GROVE, Ill., April 21, 2020 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the first quarter ended March 31, 2020.
Three Months Ended March 31,
($ in millions,
except per share
data) 2020 2019 % Change
U.S. GAAP
Revenue $
1,656 $
1,725 (4.0)
%
Net earnings 176 106 66.8
%
Diluted EPS 1.21 0.72 68.1
%
Non-GAAP
Organic revenue (2.7)
decline %
Adjusted net 203 182 11.4
earnings (1) %
Adjusted diluted 1.39 1.24 12.1
EPS %
(1) For the three months ended March 31, 2020 and 2019, adjusted net earnings excluded after tax acquisition-related amortization costs of
$25.7 million and $26.7 million, respectively, and rightsizing and other costs of $6.3 million and $3.1 million, respectively. In addition,
the three months ended March 31, 2020, also excluded a $5.0 million non-cash after-tax gain on the sale of the Chino branch of The AMS
Group, and the three months ended March 31, 2019 excluded a $46.9 million non-cash after-tax loss on assets held for sale related to
Finder.
For the quarter ended March 31, 2020, Dover generated revenue of $1.7 billion, a decline of 4% (-3% organic) compared to the first quarter of the prior year. GAAP net earnings of $176 million increased 67%, and GAAP diluted EPS of $1.21 was up 68%. On an adjusted basis, net earnings of $203 million grew 11%, and adjusted diluted EPS of $1.39 was up 12% versus the comparable quarter of 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, "Our first quarter results are entirely attributable to the perseverance of Dover's employees as they diligently continued to serve our customers in this challenging environment, which unfortunately deteriorated progressively through the quarter. We anticipate that the challenge will not be over soon, but we will gather the collective strength of our resilient business portfolio, sound financial position, and the resolve of our entire Dover team to continue to serve both our internal and external partners.
"As we expected, Q1 top-line was weaker year-over-year given a challenging comparable period, which was exacerbated by the pandemic-related challenges, particularly in China and Italy, and increasingly difficult trading conditions in the capital goods and textiles sectors of the global economy. Bookings were flat year-over-year in the quarter yielding an increased backlog compared to the same time last year, providing some support ahead of what we expect to be a difficult second quarter. Despite our lower revenue in the quarter, we increased segment margins and grew absolute net earnings as a result of carryover benefits from our productivity initiatives and prudent debt refinancing undertaken in late 2019. This has been augmented by additional cost actions carried out as the quarter progressed.
"In the first quarter we started facing headwinds associated with the outbreak of COVID-19, which led to operational interruptions and increased business uncertainty. Our foremost focus has been on the health and safety of our employees and partners, as well as on supporting the many important societal functions through our portfolio of businesses, such as retail fueling, food retail, food packaging, biopharma, municipal waste removal and many others. We remained largely operational in the US and most of Europe through Q1, although our facilities were down in China, Italy, India and Malaysia for several weeks during the quarter.
"We are approaching the uncertainty and challenges in the second quarter and the rest of 2020 with resolve and from a position of strength given our strong balance sheet and operational execution momentum, and we are taking additional steps to manage through these times. Where appropriate, our businesses are reducing production capacity to prevailing demand conditions and we have taken steps across the portfolio and at the corporate center to reduce our controllable costs. We are keenly focused on working capital management as demonstrated by our first quarter cash flow results and have initiated a capital spending plan review that has resulted in a materially lower full year capital expense forecast, without deferring strategic ongoing initiatives. Additionally, in the spirit of prudent liquidity management, we have drawn a $500M portion of our revolver facility considering the current commercial paper market conditions, even though we have no long-term debt maturities until 2025.
"We are confident in Dover's ability to navigate the challenging environment with a sense of responsibility to our teams, customers, partners and shareholders. Dover has a long and tested history of cash flow generation and we are further stepping up our capital management discipline without changing our strategic allocation priorities."
2020 GUIDANCE UPDATE:
Due to the COVID-19 pandemic and the resulting negative impact to the global demand environment we are unable to forecast with certainty the effect on Dover's financial and operational results, which could be material, and as such, Dover's previously communicated guidance for full year 2020 revenue growth and adjusted EPS has been suspended. Our objective is to reinstate guidance for the remainder of the year with our Q2 2020 earnings announcement.
CONFERENCE CALL INFORMATION:
Dover will host a webcast and conference call to discuss its first quarter 2020 results and outlook for 2020 at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Tuesday, April 21, 2020. 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 approximately $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, Fueling Solutions, Imaging & Identification, Pumps & Process Solutions and Refrigeration & Food Equipment. Dover combines global scale with operational agility to lead the markets we serve. Recognized for our entrepreneurial approach for over 60 years, our team of approximately 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." 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, the impacts of COVID-19 on the global economy and on our customers, suppliers, employees, operations, business, liquidity and cash flows, other general economic conditions and conditions in the particular markets in which we operate, 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, liquidity enhancing actions, 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, 2019, 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 2020
---
DOVER CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)(in thousands, except per share data)
Three Months Ended March 31,
2020 2019
Revenue $
1,655,939 $
1,724,757
Cost of goods and
services 1,043,696 1,101,215
Gross profit 612,243 623,542
Selling, general,
and administrative
expenses 386,941 408,466
Loss on assets held
for sale - 46,946
Operating earnings 225,302 168,130
Interest expense 27,268 31,808
Interest income (1,183) (890)
Gain on sale of a
business (6,551)
Other income, net (7,732) (1,106)
Earnings before
provision for
income taxes 213,500 138,318
Provision for income
taxes 37,221 32,613
Net earnings $
176,279 $
105,705
Net earnings per share:
Basic $
1.22 $
0.73
Diluted $
1.21 $
0.72
Weighted average shares outstanding:
Basic 144,259 145,087
Diluted 145,782 146,911
Dividends paid per
common share $
0.49 $
0.48
* Per share data may be impacted by
rounding.
DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited)(in thousands)
2020 2019
Q1 Q1 Q2 Q3 Q4 FY 2019
REVENUE
---
Engineered Products $
408,160 $
418,851 $
429,928 $
426,689 $
422,089 $
1,697,557
Fueling Solutions 359,982 373,050 390,586 411,769 444,772 1,620,177
Imaging & Identification 256,765 268,354 266,588 275,109 274,420 1,084,471
Pumps & Process Solutions 319,536 330,219 338,924 341,337 328,048 1,338,528
Refrigeration & Food Equipment 311,913 334,643 385,474 370,335 306,165 1,396,617
Intra-segment eliminations (417) (360) (794) 106 95 (953)
Total consolidated revenue $
1,655,939 $
1,724,757 $
1,810,706 $
1,825,345 $
1,775,589 $
7,136,397
NET EARNINGS
---
Segment Earnings:
Engineered Products $
69,094 $
67,119 $
77,129 $
74,367 $
73,233 $
291,848
Fueling Solutions 53,498 37,230 52,637 68,069 73,937 231,873
Imaging & Identification 51,482 55,955 54,641 61,655 57,233 229,484
Pumps & Process Solutions (1) 66,079 14,991 76,278 77,433 71,379 240,081
Refrigeration & Food Equipment (2) 23,529 24,807 44,375 35,211 14,439 118,832
Total segment earnings (EBIT) 263,682 200,102 305,060 316,735 290,221 1,112,118
Corporate expense / other (3) 24,097 30,866 24,512 28,658 63,781 147,817
Interest expense 27,268 31,808 31,754 31,410 30,846 125,818
Interest income (1,183) (890) (945) (1,263) (1,428) (4,526)
Earnings before provision for income taxes 213,500 138,318 249,739 257,930 197,022 843,009
Provision for income taxes 37,221 32,613 51,654 51,924 28,900 165,091
Net earnings $
176,279 $
105,705 $
198,085 $
206,006 $
168,122 $
677,918
SEGMENT MARGIN
---
Engineered Products 16.9
% 16.0
% 17.9
% 17.4
% 17.4
% 17.2
%
Fueling Solutions 14.9
% 10.0
% 13.5
% 16.5
% 16.6
% 14.3
%
Imaging & Identification 20.1
% 20.9
% 20.5
% 22.4
% 20.9
% 21.2
%
Pumps & Process Solutions (1) 20.7
% 4.5
% 22.5
% 22.7
% 21.8
% 17.9
%
Refrigeration & Food Equipment (2) 7.5
% 7.4
% 11.5
% 9.5
% 4.7
% 8.5
%
Total segment operating margin 15.9
% 11.6
% 16.8
% 17.4
% 16.3
% 15.6
%
DEPRECIATION AND AMORTIZATION EXPENSE
---
Engineered Products $
10,122 $
10,359 $
10,452 $
10,095 $
10,126 $
41,032
Fueling Solutions 18,339 17,879 18,945 18,744 19,477 75,045
Imaging & Identification 8,769 7,435 7,413 7,360 8,322 30,530
Pumps & Process Solutions 18,336 17,548 16,201 16,018 17,817 67,584
Refrigeration & Food Equipment 11,548 13,011 12,777 13,047 12,525 51,360
Corporate 1,638 1,506 1,981 1,523 1,726 6,736
Total depreciation and amortization expense $
68,752 $
67,738 $
67,769 $
66,787 $
69,993 $
272,287
(1) Q1 and FY 2019 include a $46,946 loss on assets held for sale for Finder Pompe S.r.l.
(2) Q1 2020 includes a $6,551 gain on the sale of the Chino, California branch of The AMS Group ("AMS Chino").
(3) Q4 and FY 2019 include a $23,543 loss on early extinguishment of debt.
DOVER CORPORATION
QUARTERLY EARNINGS PER SHARE
(unaudited)(in thousands, except per share data*)
Earnings Per Share
---
2020 2019
Q1 Q1 Q2 Q3 Q4 FY 2019
Net earnings per share:
Basic $
1.22 $
0.73 $
1.36 $
1.42 $
1.16 $
4.67
Diluted $
1.21 $
0.72 $
1.35 $
1.40 $
1.15 $
4.61
Net earnings and weighted average shares used in calculated earnings per share amounts are as follows:
Net earnings $
176,279 $
105,705 $
198,085 $
206,006 $
168,122 $
677,918
Weighted average shares outstanding:
Basic 144,259 145,087 145,366 145,372 144,966 145,198
Diluted 145,782 146,911 147,179 147,051 146,790 146,992
* 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
---
2020 2019
Q1 Q1 Q2 Q3 Q4 FY 2019
Adjusted net earnings:
Net earnings $
176,279 $
105,705 $
198,085 $
206,006 $
168,122 $
677,918
Acquisition-related amortization, pre-tax (1) 34,062 35,635 34,997 34,244 33,460 138,336
Acquisition-related amortization, tax impact (2) (8,411) (8,964) (8,777) (8,624) (8,403) (34,768)
Rightsizing and other costs, pre-tax (3) 7,859 3,963 6,457 3,807 17,926 32,153
Rightsizing and other costs, tax impact (2) (1,605) (861) (1,377) (806) (3,745) (6,789)
Loss on extinguishment of debt, pre-tax 4 - 23,543 23,543
Loss on extinguishment of debt, tax impact (2) - (5,163) (5,163)
Loss on assets held for sale 5 - 46,946 46,946
Gain on disposition, pre-tax 6 (6,551)
Gain on disposition, tax-impact (2) 1,592
Adjusted net earnings $
203,225 $
182,424 $
229,385 $
234,627 $
225,740 $
872,176
Adjusted diluted net earnings per share:
Diluted net earnings per share $
1.21 $
0.72 $
1.35 $
1.40 $
1.15 $
4.61
Acquisition-related amortization, pre-tax (1) 0.23 0.24 0.24 0.23 0.23 0.94
Acquisition-related amortization, tax impact (2) (0.06) (0.06) (0.06) (0.06) (0.06) (0.24)
Rightsizing and other costs, pre-tax (3) 0.05 0.03 0.04 0.03 0.12 0.22
Rightsizing and other costs, tax impact (2) (0.01) (0.01) (0.01) (0.01) (0.03) (0.06)
Loss on extinguishment of debt, pre-tax 4 - 0.16 0.16
Loss on extinguishment of debt, tax impact (2) - (0.04) (0.04)
Loss on assets held for sale 5 - 0.32 0.32
Gain on disposition, pre-tax 6 (0.04)
Gain on disposition, tax-impact (2) 0.01
Adjusted diluted net earnings per share $
1.39 $
1.24 $
1.56 $
1.60 $
1.54 $
5.93
(1) Includes amortization on acquisition-related intangible assets and inventory step-up.
(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) Rightsizing and other costs include actions taken on employee reductions, facility consolidations and site closures, product line exits and other associated asset charges.
4 Represents a loss on early extinguishment of EUR300,000 2.125% notes due 2020 and $450,000 4.30% notes due 2021.
5 Represents a loss on assets held for sale of Finder Pompe S.r.l. ("Finder"). Under local law, no tax benefit is realized from the loss on the sale of a wholly-owned business.
6 Represents a gain on the disposition of AMS Chino within the Refrigeration & Food Equipment segment.
* Per share data and totals may be impacted by rounding.
DOVER CORPORATION
QUARTERLY SEGMENT ADJUSTED EBIT AND ADJUSTED EBITDA (NON-GAAP)
(unaudited)(in thousands)
Non-GAAP Reconciliations
---
2020 2019
Q1 Q1 Q2 Q3 Q4 FY 2019
ADJUSTED SEGMENT EBIT AND ADJUSTED EBITDA
---
Engineered Products:
---
Segment earnings (EBIT) $
69,094 $
67,119 $
77,129 $
74,367 $
73,233 $
291,848
Rightsizing and other costs 361 80 1,125 590 1,355 3,150
Adjusted EBIT - Segment 69,455 67,199 78,254 74,957 74,588 294,998
Adjusted EBIT % 17.0
% 16.0
% 18.2
% 17.6 17.7
% 17.4
%
%
Adjusted D&A (2) 10,122 10,359 9,855 10,095 10,126 40,435
Adjusted EBITDA - segment $
79,577 $
77,558 $
88,109 $
85,052 $
84,714 $
335,433
Adjusted EBITDA % 19.5
% 18.5
% 20.5
% 19.9 20.1
% 19.8
%
%
Fueling Solutions:
---
Segment earnings (EBIT) $
53,498 $
37,230 $
52,637 $
68,069 $
73,937 $
231,873
Rightsizing and other costs 1,493 752 1,768 811 1,554 4,885
Adjusted EBIT - Segment 54,991 37,982 54,405 68,880 75,491 236,758
Adjusted EBIT % 15.3
% 10.2
% 13.9
% 16.7 17.0
% 14.6
%
%
Adjusted D&A (2) 18,339 17,879 18,945 18,744 19,477 75,045
Adjusted EBITDA - segment $
73,330 $
55,861 $
73,350 $
87,624 $
94,968 $
311,803
Adjusted EBITDA % 20.4
% 15.0
% 18.8
% 21.3 21.4
% 19.2
%
%
Imaging & Identification:
---
Segment earnings (EBIT) $
51,482 $
55,955 $
54,641 $
61,655 $
57,233 $
229,484
Rightsizing and other costs 264 389 1,268 301 4,392 6,350
Adjusted EBIT - Segment 51,746 56,344 55,909 61,956 61,625 235,834
Adjusted EBIT % 20.2
% 21.0
% 21.0
% 22.5 22.5
% 21.7
%
%
Adjusted D&A (2) 8,769 7,336 7,317 7,286 7,892 29,831
Adjusted EBITDA - segment $
60,515 $
63,680 $
63,226 $
69,242 $
69,517 $
265,665
Adjusted EBITDA % 23.6
% 23.7
% 23.7
% 25.2 25.3
% 24.5
%
%
Pumps & Process Solutions:
---
Segment earnings (EBIT) $
66,079 $
14,991 $
76,278 $
77,433 $
71,379 $
240,081
Rightsizing and other costs 3,846 414 903 943 3,868 6,128
Loss on assets held for sale (1) - 46,946 46,946
Adjusted EBIT - Segment 69,925 62,351 77,181 78,376 75,247 293,155
Adjusted EBIT % 21.9
% 18.9
% 22.8
% 23.0 22.9
% 21.9
%
%
Adjusted D&A (2) 16,230 17,548 16,199 16,018 17,004 66,769
Adjusted EBITDA - segment $
86,155 $
79,899 $
93,380 $
94,394 $
92,251 $
359,924
Adjusted EBITDA % 27.0
% 24.2
% 27.6
% 27.7 28.1
% 26.9
%
%
Refrigeration & Food Equipment:
---
Segment earnings (EBIT) $
23,529 $
24,807 $
44,375 $
35,211 $
14,439 $
118,832
Rightsizing and other costs 704 2,293 666 840 2,243 6,042
Gain on disposition (3) (6,551)
Adjusted EBIT - Segment 17,682 27,100 45,041 36,051 16,682 124,874
Adjusted EBIT % 5.7
% 8.1
% 11.7
% 9.7
% 5.4
% 8.9
%
Adjusted D&A (2) 11,548 13,011 12,777 13,047 12,525 51,360
Adjusted EBITDA - segment $
29,230 $
40,111 $
57,818 $
49,098 $
29,207 $
176,234
Adjusted EBITDA % 9.4
% 12.0
% 15.0
% 13.3 9.5
% 12.6
%
%
Total Segments:
---
Segment earnings (EBIT) 4 $
263,682 $
200,102 $
305,060 $
316,735 $
290,221 $
1,112,118
Rightsizing and other costs 6,668 3,928 5,730 3,485 13,412 26,555
Loss on assets held for sale (1) - 46,946 46,946
Gain on disposition (3) (6,551)
Adjusted EBIT - Segment 5 263,799 250,976 310,790 320,220 303,633 1,185,619
Adjusted EBIT % 4 15.9
% 14.5
% 17.2
% 17.5 17.1
% 16.6
%
%
Adjusted D&A (2) 65,008 66,133 65,093 65,190 67,024 263,440
Adjusted EBITDA - segment 5 $
328,807 $
317,109 $
375,883 $
385,410 $
370,657 $
1,449,059
Adjusted EBITDA % 5 19.9
% 18.4
% 20.7
% 21.1 20.9
% 20.3
%
%
(1) Q1 and FY 2019 include a $46,946 loss on assets held for sale for Finder.
(2) Adjusted D&A is depreciation and amortization expense, excluding depreciation and amortization included within rightsizing and other costs.
(3) Q1 2020 includes a $6,551 gain on sale of a business for AMS Chino.
4 Refer to Quarterly Segment Information section for reconciliation of total segment earnings (EBIT) to net earnings.
5 Refer to Non-GAAP Disclosures section for definition.
DOVER CORPORATION
REVENUE GROWTH FACTORS (NON-GAAP)
(unaudited)(in thousands, except per share data*)
Non-GAAP Reconciliations
---
Revenue Growth Factors
---
2020
Q1
Organic
Engineered Products (1.9)
%
Fueling Solutions (2.6)
%
Imaging & Identification (4.3)
%
Pumps & Process Solutions (1.1)
%
Refrigeration & Food Equipment (4.3)
%
Total Organic (2.7)
%
Acquisitions 0.8
%
Dispositions (0.7)
%
Currency translation (1.4)
%
Total* (4.0)
%
* Totals may be impacted by rounding.
2020
Q1
Organic
United States 3.5
%
Other Americas (4.7)
%
Europe (7.4)
%
Asia (19.2)
%
Other (8.8)
%
Total Organic (2.7)
%
Acquisitions 0.8
%
Dispositions (0.7)
%
Currency translation (1.4)
%
Total* (4.0)
%
* Totals may be impacted by rounding.
DOVER CORPORATION
QUARTERLY CASH FLOW AND FREE CASH FLOW (NON-GAAP)
(unaudited)(in thousands)
Quarterly Cash Flow
---
2020 2019
Q1 Q1 Q2 Q3 Q4 FY 2019
Net Cash Flows Provided By (Used In):
Operating activities $
75,863 $
24,524 $
208,709 $
350,865 $
361,208 $
945,306
Investing activities (230,511) (217,690) (69,755) (48,612) (48,198) (384,255)
Financing activities 280,954 36,067 (60,596) (277,901) (255,612) (558,042)
Quarterly Free Cash Flow (Non-GAAP)
---
2020 2019
Q1 Q1 Q2 Q3 Q4 FY 2019
Cash flow from operating activities $
75,863 $
24,524 $
208,709 $
350,865 $
361,208 $
945,306
Less: Capital expenditures (40,172) (37,122) (53,970) (46,184) (49,528) (186,804)
Free cash flow $
35,691 $
(12,598) $
154,739 $
304,681 $
311,680 $
758,502
Free cash flow as a percentage of revenue 2.2
% (0.7) 8.5
% 16.7 17.6
% 10.6
% %
%
Free cash flow as a percentage of net earnings 20.2 (11.9) 78.1
% 147.9 185.4 111.9
% % % %
%
DOVER CORPORATION
PERFORMANCE MEASURES
(unaudited)(in thousands)
2020 2019
Q1 Q1 Q2 Q3 Q4 FY 2019
BOOKINGS
---
Engineered Products $
414,972 $
427,697 $
397,420 $
426,059 $
457,145 $
1,708,321
Fueling Solutions 373,070 343,083 394,256 450,727 425,698 1,613,764
Imaging & Identification 272,604 267,762 264,175 284,527 276,451 1,092,915
Pumps & Process Solutions 369,403 369,801 375,905 329,642 318,482 1,393,830
Refrigeration & Food Equipment 355,157 376,998 384,365 323,422 361,970 1,446,755
Intra-segment eliminations (375) (725) (490) (528) 872 (871)
Total consolidated bookings $
1,784,831 $
1,784,616 $
1,815,631 $
1,813,849 $
1,840,618 $
7,254,714
BACKLOG
---
Engineered Products $
453,867 $
451,335 $
418,154 $
416,025 $
452,142
Fueling Solutions 211,518 185,847 186,202 223,081 205,842
Imaging & Identification 170,119 118,177 116,810 121,877 125,775
Pumps & Process Solutions 397,969 353,066 378,427 361,478 353,073
Refrigeration & Food Equipment 356,133 311,632 310,454 262,870 320,577
Intra-segment eliminations (159) (403) (141) (252) (249)
Total consolidated backlog $
1,589,447 $
1,419,654 $
1,409,906 $
1,385,079 $
1,457,160
Bookings Growth Factors
---
2020
Q1
Organic
Engineered Products (2.3)
%
Fueling Solutions 9.5
%
Imaging & Identification 0.3
%
Pumps & Process Solutions 2.2
%
Refrigeration & Food Equipment (4.2)
%
Total Organic 0.9
%
Acquisitions 1.0
%
Dispositions (0.7)
%
Currency translation (1.2)
%
Total* - %
* Totals may be impacted by rounding.
COVID-19
On March 11, 2020, the World Health Organization declared the outbreak of the novel coronavirus ("COVID-19") a pandemic. The COVID-19 outbreak and associated counter-acting measures implemented by governments around the world, as well as increased business uncertainty, are having an adverse impact on our financial results. Refer to our Quarterly Report on Form 10-Q filed with the SEC on April 21, 2020 for additional discussion.
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 (EBIT), adjusted EBIT by segment, adjusted EBIT margin by segment, adjusted EBITDA by segment, adjusted EBITDA margin by segment, free cash flow, free cash flow as a percentage of revenue, free cash flow as a percentage of 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 acquisition-related amortization, rightsizing and other costs, loss on extinguishment of debt, loss on assets held for sale, and a gain on disposition. We exclude after-tax acquisition-related amortization because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions the Company consummates. 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 represents adjusted net earnings divided by average diluted shares.
Total segment earnings (EBIT) is defined as net earnings before income taxes, net interest expense and corporate expenses. Total segment earnings (EBIT) margin is defined as total segment earnings (EBIT) divided by revenue.
Adjusted EBIT by Segment is defined as net earnings before income taxes, net interest expense, corporate expenses, rightsizing and other costs, a 2019 loss on assets held for sale and a 2020 gain on disposition. Adjusted EBIT Margin by Segment is defined as adjusted EBIT by segment divided by segment revenue.
Adjusted EBITDA by Segment is defined as adjusted EBIT by segment plus depreciation and amortization, excluding depreciation and amortization included within rightsizing and other costs. Adjusted EBITDA Margin by Segment is defined as adjusted EBITDA by segment divided by segment revenue.
Management believes these measures are useful to investors to better understand the Company's ongoing profitability as it 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 net earnings equals free cash flow divided by net earnings. Management believes that free cash flow and free cash flow ratios are important measures of operating performance because it provides 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.
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.
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 acquisition and dispositions. This metric is an important measure of performance and an indicator of revenue order trends.
Backlog represents an estimate of the total remaining bookings at a point in time for which performance obligations have not yet have 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:
Andrey Galiuk
Adrian Sakowicz
Vice President - Corporate Development
Vice President - Communications
and Investor Relations
(630) 743-5039
(630) 743-5131
asakowicz@dovercorp.com
agaliuk@dovercorp.com
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SOURCE Dover
