Dover Reports Second Quarter 2024 Results
DOWNERS GROVE, Ill., July 25, 2024 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the second quarter ended June 30, 2024. All comparisons are to the comparable period of the prior fiscal year, unless otherwise noted.
Three Months Ended June 30,
Six Months Ended June 30,
($ in millions, except per share data) 2024 2023 % Change* 2024 2023 % Change*
U.S. GAAP
Revenue $2,178 $2,100 4 % $4,272 $4,179 2 %
Net earnings 282 242 16 % 914 471 94 %
Diluted EPS 2.04 1.72 19 % 6.57 3.35 96 %
Non-GAAP
Organic revenue change 5 % 2 %
Adjusted net earnings (1) 327 288 14 % 600 561 7 %
Adjusted diluted EPS 2.36 2.05 15 % 4.31 3.99 8 %
(1) Q2 and year-to-date 2024 and 2023 adjusted net earnings exclude after tax purchase accounting expenses and restructuring and other costs. Year-to-date 2024 excludes the after tax gain on the sale of De-Sta-Co.
* Change may be impacted by rounding.
For the quarter ended June 30, 2024, Dover generated revenue of $2.2 billion, an increase of 4% (+5% organic). GAAP net earnings of $282 million increased 16%, and GAAP diluted EPS of $2.04 was up 19%. On an adjusted basis, net earnings of $327 million increased 14% and adjusted diluted EPS of $2.36 was up 15%.
For the six months ended June 30, 2024, Dover generated revenue of $4.3 billion, an increase of 2% (+2% organic) compared to the prior year. GAAP net earnings of $914 million increased by 94%, and GAAP diluted EPS of $6.57 was up 96%. On an adjusted basis, net earnings of $600 million increased 7%, and adjusted diluted EPS of $4.31 was up 8% compared to the prior year.
A full reconciliation between GAAP and adjusted measures and definitions of non-GAAP and other performance measures are included as an exhibit herein.
MANAGEMENT COMMENTARY:
Dover's President and Chief Executive Officer, Richard J. Tobin, said, "Dover's second quarter results were solid, driven by excellent production performance and strong shipment rates on orders received. Volume strength was broad-based across the portfolio, with four of our five operating segments posting top-line growth. Margin expansion was robust during the period due to previous portfolio additions, positive mix impact from our growth platforms, and our rigorous cost containment and productivity actions. Order trends continued their positive trajectory, bolstering our confidence in the second half outlook.
"Our strong operational results were complemented by ongoing portfolio actions. We completed two highly strategic bolt-on acquisitions that enhance our clean energy components platform, adding applications in highly attractive end markets and expanding our global reach and manufacturing base. We also announced the divestiture of our Environmental Solutions Group business unit, reducing our exposure to capital goods as we continue to migrate the portfolio toward high margin priority platforms. Based on the development of our inorganic pipeline over the last few months, we believe we are entering a market with a significant opportunity for capital deployment, with enhanced capacity and optionality from the divestiture proceeds.
"We are approaching the second half of 2024 constructively. Underlying end market demand is healthy and is supported by our sustained order rates. We are committed to achieving our full year guidance through a combination of organic growth, operational execution, and productive capital deployment."
FULL YEAR 2024 GUIDANCE:
In 2024, Dover expects to generate GAAP EPS in the range of $10.80 to $10.95 (adjusted EPS of $9.05 to $9.20), based on full year revenue growth of 3% to 4% (2% to 3% on an organic basis). Full year 2024 guidance includes the Environmental Solutions Group business unit.
CONFERENCE CALL INFORMATION:
Dover will host a webcast and conference call to discuss its second quarter results at 9:30 A.M. Eastern Time (8:30 A.M. Central Time) on Thursday, July 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 - SECOND QUARTER 2024
DOVER CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)(in thousands, except per share data*)
---
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Revenue $2,178,262 $2,100,086 $4,272,203 $4,179,109
Cost of goods and services 1,356,695 1,341,250 2,693,381 2,673,254
Gross profit 821,567 758,836 1,578,822 1,505,855
Selling, general and administrative expenses 452,193 434,340 915,317 866,754
Operating earnings 369,374 324,496 663,505 639,101
Interest expense 32,374 33,804 68,739 68,018
Interest income (4,080) (2,653) (8,837) (4,744)
Loss (gain) on disposition 663 (529,280)
Other income, net (12,872) (6,678) (19,288) (10,486)
Earnings before provision for income taxes 353,289 300,023 1,152,171 586,313
Provision for income taxes 71,467 57,784 238,128 115,500
Net earnings $281,822 $242,239 $914,043 $470,813
Net earnings per share:
Basic $2.05 $1.73 $6.61 $3.37
Diluted $2.04 $1.72 $6.57 $3.35
Weighted average shares outstanding:
Basic 137,443 139,862 138,247 139,810
Diluted 138,404 140,578 139,136 140,597
Dividends paid per common share $0.510 $0.505 $1.02 $1.01
* Per share data may be impacted by rounding.
DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited)(in thousands)
2024 2023
Q1 Q2 Q2 YTD Q1 Q2 Q2 YTD Q3 Q4 FY 2023
REVENUE
---
Engineered Products $543,140 $514,837 $1,057,977 $497,549 $473,687 $971,236 $504,271 $529,080 $2,004,587
Clean Energy & Fueling 445,053 463,014 908,067 430,729 441,166 871,895 466,959 449,423 1,788,277
Imaging & Identification 276,806 287,593 564,399 283,091 271,932 555,023 276,179 285,530 1,116,732
Pumps & Process Solutions 465,729 477,239 942,968 413,881 465,626 879,507 431,373 444,811 1,755,691
Climate & Sustainability 364,292 436,706 800,998 455,325 449,001 904,326 475,911 398,345 1,778,582
Technologies
Intersegment eliminations (1,079) (1,127) (2,206) (1,552) (1,326) (2,878) (1,425) (1,432) (5,735)
Total consolidated revenue $2,093,941 $2,178,262 $4,272,203 $2,079,023 $2,100,086 $4,179,109 $2,153,268 $2,105,757 $8,438,134
NET EARNINGS
---
Segment Earnings:
Engineered Products $103,969 $101,247 $205,216 $84,275 $73,076 $157,351 $101,610 $118,464 $377,425
Clean Energy & Fueling 69,675 87,536 157,211 73,605 83,616 157,221 92,483 78,900 328,604
Imaging & Identification 69,959 75,786 145,745 68,315 61,336 129,651 70,316 72,545 272,512
Pumps & Process Solutions 118,737 137,217 255,954 115,244 129,337 244,581 117,907 121,917 484,405
Climate & Sustainability 50,759 79,127 129,886 73,778 76,074 149,852 84,060 71,468 305,380
Technologies
Total segment earnings 413,099 480,913 894,012 415,217 423,439 838,656 466,376 463,294 1,768,326
Purchase accounting 45,551 45,697 91,248 42,679 40,200 82,879 40,320 41,744 164,943
expenses (1)
Restructuring and other costs (2) 24,684 11,590 36,274 14,053 18,143 32,196 12,327 19,150 63,673
Disposition costs (3) - 1,302 1,302
(Gain) loss on disposition 4 (529,943) 663 (529,280)
Corporate expense 42,317 41,380 83,697 40,072 33,922 73,994 30,686 45,913 150,593
/ other 5
Interest expense 36,365 32,374 68,739 34,214 33,804 68,018 32,389 30,898 131,305
Interest income (4,757) (4,080) (8,837) (2,091) (2,653) (4,744) (3,808) (4,944) (13,496)
Earnings before provision for 798,882 353,289 1,152,171 286,290 300,023 586,313 354,462 329,231 1,270,006
income taxes
Provision for income taxes 6 166,661 71,467 238,128 57,716 57,784 115,500 64,709 32,969 213,178
Net earnings $632,221 $281,822 $914,043 $228,574 $242,239 $470,813 $289,753 $296,262 $1,056,828
SEGMENT EARNINGS MARGIN
---
Engineered Products 19.1 % 19.7 % 19.4 % 16.9 % 15.4 % 16.2 % 20.1 % 22.4 % 18.8 %
Clean Energy & Fueling 15.7 % 18.9 % 17.3 % 17.1 % 19.0 % 18.0 % 19.8 % 17.6 % 18.4 %
Imaging & Identification 25.3 % 26.4 % 25.8 % 24.1 % 22.6 % 23.4 % 25.5 % 25.4 % 24.4 %
Pumps & Process Solutions 25.5 % 28.8 % 27.1 % 27.8 % 27.8 % 27.8 % 27.3 % 27.4 % 27.6 %
Climate & Sustainability 13.9 % 18.1 % 16.2 % 16.2 % 16.9 % 16.6 % 17.7 % 17.9 % 17.2 %
Technologies
Total segment earnings margin 19.7 % 22.1 % 20.9 % 20.0 % 20.2 % 20.1 % 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) loss 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 Q2 Q2 YTD Q1 Q2 Q2 YTD Q3 Q4 FY 2023
Net earnings per share:
Basic $4.55 $2.05 $6.61 $1.64 $1.73 $3.37 $2.07 $2.12 $7.56
Diluted $4.52 $2.04 $6.57 $1.63 $1.72 $3.35 $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 $281,822 $914,043 $228,574 $242,239 $470,813 $289,753 $296,262 $1,056,828
Weighted average shares outstanding:
Basic 139,051 137,443 138,247 139,757 139,862 139,810 139,878 139,893 139,848
Diluted 139,869 138,404 139,136 140,616 140,578 140,597 140,615 140,586 140,599
* 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 Q2 Q2 YTD Q1 Q2 Q2 YTD Q3 Q4 FY 2023
Adjusted net earnings:
Net earnings $632,221 $281,822 $914,043 $228,574 $242,239 $470,813 $289,753 $296,262 $1,056,828
Purchase accounting expenses, pre-tax (1) 45,551 45,697 91,248 42,679 40,200 82,879 40,320 41,744 164,943
Purchase accounting expenses, tax i (10,005) (10,053) (20,058) (9,599) (9,012) (18,611) (8,966) (9,143) (36,720)
mpact (2)
Restructuring and other costs, pre- 24,684 11,590 36,274 14,053 18,143 32,196 12,327 19,150 63,673
tax (3)
Restructuring and other costs, tax (4,875) (2,479) (7,354) (2,990) (3,665) (6,655) (2,556) (3,970) (13,181)
impact (2)
Disposition costs, pre-tax 4 - 1,302 1,302
Disposition costs, tax impact (2) - (270) (270)
(Gain) loss on disposition, pre-tax 5 (529,943) 663 (529,280)
(Gain) loss on disposition, tax- 114,973 (144) 114,829
impact (2)
Adjusted net earnings $272,606 $327,096 $599,702 $272,717 $287,905 $560,622 $330,878 $345,075 $1,236,575
Adjusted diluted net earnings per share:
Diluted net earnings per share $4.52 $2.04 $6.57 $1.63 $1.72 $3.35 $2.06 $2.11 $7.52
Purchase accounting expenses, pre-tax (1) 0.33 0.33 0.66 0.30 0.29 0.59 0.29 0.30 1.18
Purchase accounting expenses, tax (0.07) (0.07) (0.14) (0.07) (0.06) (0.13) (0.06) (0.07) (0.26)
impact (2)
Restructuring and other costs, pre- 0.18 0.08 0.26 0.10 0.13 0.23 0.09 0.14 0.46
tax (3)
Restructuring and other costs, tax (0.03) (0.02) (0.05) (0.02) (0.03) (0.05) (0.02) (0.03) (0.10)
impact (2)
Disposition costs, pre-tax 4 - 0.01 0.01
Disposition costs, tax impact (2) -
(Gain) loss on disposition, pre-tax 5 (3.79) (3.80)
(Gain) loss on disposition, tax- 0.82 0.83
impact (2)
Adjusted diluted net earnings per $1.95 $2.36 $4.31 $1.94 $2.05 $3.99 $2.35 $2.45 $8.80
share
(1) Purchase accounting expenses are primarily comprised of amortization of acquired intangible assets.
(2) Adjustments were tax effected using the statutory tax rates in the applicable jurisdictions or the effective tax rate, where applicable, for each period.
(3) Restructuring and other costs relate to actions taken for headcount reductions, facility consolidations and site closures, product line exits, and other asset charges. Q1 and Q2 YTD 2024 include $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) loss on disposition due to the sale of De-Sta-Co in the Engineered Products segment, including a $0.7M post-closing adjustment recorded in Q2 2024.
* Per share data and totals may be impacted by rounding.
DOVER CORPORATION
QUARTERLY ADJUSTED SEGMENT EBITDA (NON-GAAP)
(unaudited)(in thousands)
Non-GAAP Reconciliations
---
2024 2023
Q1 Q2 Q2 YTD Q1 Q2 Q2 YTD Q3 Q4 FY 2023
ADJUSTED SEGMENT EBITDA
---
Engineered Products:
---
Segment earnings $103,969 $101,247 $205,216 $84,275 $73,076 $157,351 $101,610 $118,464 $377,425
Other depreciation and amortization (1) 6,361 6,343 12,704 7,070 7,300 14,370 7,306 6,397 28,073
Adjusted segment EBITDA (2) 110,330 107,590 217,920 91,345 80,376 171,721 108,916 124,861 405,498
Adjusted segment EBITDA margin (2) 20.3 % 20.9 % 20.6 % 18.4 % 17.0 % 17.7 % 21.6 % 23.6 % 20.2 %
Clean Energy & Fueling:
---
Segment earnings $69,675 $87,536 $157,211 $73,605 $83,616 $157,221 $92,483 $78,900 $328,604
Other depreciation and amortization (1) 7,921 7,627 15,548 7,046 7,541 14,587 7,686 7,844 30,117
Adjusted segment EBITDA (2) 77,596 95,163 172,759 80,651 91,157 171,808 100,169 86,744 358,721
Adjusted segment EBITDA margin (2) 17.4 % 20.6 % 19.0 % 18.7 % 20.7 % 19.7 % 21.5 % 19.3 % 20.1 %
Imaging & Identification:
---
Segment earnings $69,959 $75,786 $145,745 $68,315 $61,336 $129,651 $70,316 $72,545 $272,512
Other depreciation and amortization (1) 3,733 3,271 7,004 3,394 3,745 7,139 3,972 4,182 15,293
Adjusted segment EBITDA (2) 73,692 79,057 152,749 71,709 65,081 136,790 74,288 76,727 287,805
Adjusted segment EBITDA margin (2) 26.6 % 27.5 % 27.1 % 25.3 % 23.9 % 24.6 % 26.9 % 26.9 % 25.8 %
Pumps & Process Solutions:
---
Segment earnings $118,737 $137,217 $255,954 $115,244 $129,337 $244,581 $117,907 $121,917 $484,405
Other depreciation and amortization (1) 12,139 12,637 24,776 10,939 11,609 22,548 12,052 11,744 46,344
Adjusted segment EBITDA (2) 130,876 149,854 280,730 126,183 140,946 267,129 129,959 133,661 530,749
Adjusted segment EBITDA margin (2) 28.1 % 31.4 % 29.8 % 30.5 % 30.3 % 30.4 % 30.1 % 30.0 % 30.2 %
Climate & Sustainability Technologies:
---
Segment earnings $50,759 $79,127 $129,886 $73,778 $76,074 $149,852 $84,060 $71,468 $305,380
Other depreciation and amortization (1) 7,275 7,220 14,495 6,624 6,895 13,519 6,954 7,084 27,557
Adjusted segment EBITDA (2) 58,034 86,347 144,381 80,402 82,969 163,371 91,014 78,552 332,937
Adjusted segment EBITDA margin (2) 15.9 % 19.8 % 18.0 % 17.7 % 18.5 % 18.1 % 19.1 % 19.7 % 18.7 %
Total Segments:
---
Total segment earnings 2, 3 $413,099 $480,913 $894,012 $415,217 $423,439 $838,656 $466,376 $463,294 $1,768,326
Other depreciation and amortization (1) 37,429 37,098 74,527 35,073 37,090 72,163 37,970 37,251 147,384
Total Adjusted segment EBITDA (2) 450,528 518,011 968,539 450,290 460,529 910,819 504,346 500,545 1,915,710
Total Adjusted segment EBITDA 21.5 % 23.8 % 22.7 % 21.7 % 21.9 % 21.8 % 23.4 % 23.8 % 22.7 %
margin (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
---
2024 2023
Q1 Q2 Q2 YTD Q1 Q2 Q2 YTD Q3 Q4 FY 2023
Net earnings $632,221 $281,822 $914,043 $228,574 $242,239 $470,813 $289,753 $296,262 $1,056,828
Provision for income taxes (1) 166,661 71,467 238,128 57,716 57,784 115,500 64,709 32,969 213,178
Earnings before provision for 798,882 353,289 1,152,171 286,290 300,023 586,313 354,462 329,231 1,270,006
income taxes
Interest income (4,757) (4,080) (8,837) (2,091) (2,653) (4,744) (3,808) (4,944) (13,496)
Interest expense 36,365 32,374 68,739 34,214 33,804 68,018 32,389 30,898 131,305
Corporate expense / other (2) 42,317 41,380 83,697 40,072 33,922 73,994 30,686 45,913 150,593
Disposition costs (3) - 1,302 1,302
(Gain) loss on disposition 4 (529,943) 663 (529,280)
Restructuring and other costs 5 24,684 11,590 36,274 14,053 18,143 32,196 12,327 19,150 63,673
Purchase accounting expenses 6 45,551 45,697 91,248 42,679 40,200 82,879 40,320 41,744 164,943
Total segment earnings 7 413,099 480,913 894,012 415,217 423,439 838,656 466,376 463,294 1,768,326
Add: Other depreciation and 37,429 37,098 74,527 35,073 37,090 72,163 37,970 37,251 147,384
amortization 8
Total adjusted segment EBITDA 7 $450,528 $518,011 $968,539 $450,290 $460,529 $910,819 $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) loss 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
Q2 Q2 YTD
Organic
Engineered Products 20.2 % 14.6 %
Clean Energy & Fueling 2.3 % 1.9 %
Imaging & Identification 6.9 % 2.6 %
Pumps & Process Solutions (3.1) % 0.5 %
Climate & Sustainability Technologies (2.3) % (11.4) %
Total Organic 4.8 % 1.8 %
Acquisitions 2.1 % 2.1 %
Dispositions (2.6) % (1.3) %
Currency translation (0.6) % (0.4) %
Total* 3.7 % 2.2 %
* Totals may be impacted by rounding.
2024
Q2 Q2 YTD
Organic
United States 11.4 % 6.3 %
Other Americas 17.6 % 5.9 %
Europe (3.8) % (2.2) %
Asia (8.5) % (6.8) %
Other (27.8) % (24.8) %
Total Organic 4.8 % 1.8 %
Acquisitions 2.1 % 2.1 %
Dispositions (2.6) % (1.3) %
Currency translation (0.6) % (0.4) %
Total* 3.7 % 2.2 %
* Totals may be impacted by rounding.
Adjusted EPS Guidance Reconciliation
---
Range
2024 Guidance for Earnings per Share (GAAP) $10.80 $10.95
Purchase accounting expenses, net 1.01
Restructuring and other costs, net 0.24
Gain on disposition, net (3.00)
2024 Guidance for Adjusted Earnings per Share (Non-GAAP) $9.05 $9.20
* Per share data and totals may be impacted by rounding.
DOVER CORPORATION
QUARTERLY CASH FLOW AND FREE CASH FLOW (NON-GAAP)
(unaudited)(in thousands)
Quarterly Cash Flow
---
2024 2023
Q1 Q2 Q2 YTD Q1 Q2 Q2 YTD Q3 Q4 FY 2023
Net Cash Flows Provided By (Used In):
Operating activities $166,593 $203,662 $370,255 $241,284 $195,254 $436,538 $383,457 $516,350 $1,336,345
Investing activities 429,851 28,165 458,016 (43,556) (42,454) (86,010) (50,243) (590,377) (726,630)
Financing activities (80,782) (830,657) (911,439) (306,565) (137,924) (444,489) (312,716) 189,149 (568,056)
Quarterly Free Cash Flow (Non-GAAP)
---
2024 2023
Q1 Q2 Q2 YTD Q1 Q2 Q2 YTD Q3 Q4 FY 2023
Cash flow from operating $166,593 $203,662 $370,255 $241,284 $195,254 $436,538 $383,457 $516,350 $1,336,345
activities (1)
Less: Capital expenditures (44,475) (40,872) (85,347) (48,375) (40,079) (88,454) (43,128) (61,010) (192,592)
Free cash flow $122,118 $162,790 $284,908 $192,909 $155,175 $348,084 $340,329 $455,340 $1,143,753
Cash flow from operating 8.0 % 9.3 % 8.7 % 11.6 % 9.3 % 10.4 % 17.8 % 24.5 % 15.8 %
activities as a percentage of
revenue
Cash flow from operating 61.1 % 62.3 % 61.7 % 88.5 % 67.8 % 77.9 % 115.9 % 149.6 % 108.1 %
activities as a percentage of
adjusted net earnings
Free cash flow as a percentage 5.8 % 7.5 % 6.7 % 9.3 % 7.4 % 8.3 % 15.8 % 21.6 % 13.6 %
of revenue
Free cash flow as a percentage 44.8 % 49.8 % 47.5 % 70.7 % 53.9 % 62.1 % 102.9 % 132.0 % 92.5 %
of adjusted net earnings
(1) Q2 and Q2 YTD 2024 include income tax payments of $56 million related to the gain on the disposition of De-Sta-Co. The remainder of the tax payments on the De-Sta-Co gain will be paid in quarterly installments throughout 2024.
DOVER CORPORATION
PERFORMANCE MEASURES
(unaudited)(in thousands)
2024 2023
Q1 Q2 Q2 YTD Q1 Q2 Q2 YTD Q3 Q4 FY 2023
BOOKINGS
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Engineered Products $541,982 $581,370 $1,123,352 $536,472 $489,131 $1,025,603 $576,641 $494,528 $2,096,772
Clean Energy & Fueling 471,610 442,086 913,696 454,526 440,137 894,663 449,663 401,195 1,745,521
Imaging & Identification 278,433 288,641 567,074 290,712 262,092 552,804 271,113 297,312 1,121,229
Pumps & Process Solutions 473,632 461,426 935,058 464,297 394,317 858,614 363,111 455,390 1,677,115
Climate & Sustainability 453,086 406,269 859,355 371,643 310,911 682,554 340,474 325,625 1,348,653
Technologies
Intersegment eliminations (1,107) (1,693) (2,800) (1,530) (1,918) (3,448) (849) (2,125) (6,422)
Total consolidated bookings $2,217,636 $2,178,099 $4,395,735 $2,116,120 $1,894,670 $4,010,790 $2,000,153 $1,971,925 $7,982,868
2024
Q2 Q2 YTD
BOOKINGS GROWTH FACTORS
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Organic
Engineered Products 29.3 % 14.5 %
Clean Energy & Fueling (1.6) % - %
Imaging & Identification 11.1 % 3.5 %
Pumps & Process Solutions 10.5 % 2.3 %
Climate & Sustainability Technologies 31.6 % 26.6 %
Total Organic 16.1 % 9.2 %
Acquisitions 2.1 % 2.0 %
Dispositions (2.7) % (1.3) %
Currency translation (0.5) % (0.3) %
Total* 15.0 % 9.6 %
* 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
