DOWNERS GROVE, Ill.,
Oct. 17, 2019 /PRNewswire/ -- Dover
(NYSE: DOV), a diversified global manufacturer, announced its
financial results for the third quarter ended September 30, 2019.
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Three Months
Ended
September 30,
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Nine Months
Ended
September 30,
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($ in millions,
except per share data)
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2019
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2018
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%
Change
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2019
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2018
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%
Change
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U.S. GAAP from
continuing operations
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Revenue
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$1,825
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$1,747
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4%
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$5,361
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$5,183
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3%
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Earnings
1
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206
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157
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31%
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510
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433
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18%
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Diluted EPS
1
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1.40
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1.05
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33%
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3.47
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2.82
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23%
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Non-GAAP from
continuing operations
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Adjusted
earnings
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235
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203
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15%
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646
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545
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19%
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Adjusted diluted
EPS
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1.60
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1.36
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18%
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4.40
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3.55
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24%
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1 Q1 2019
included a $46.9 million ($0.32 of EPS) non-cash after-tax loss on
assets held for sale related to Finder Pompe S.r.l.
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A full reconciliation between GAAP and adjusted measures is
included as an exhibit herein.
Third Quarter 2019 Financial Results:
For the third quarter ended September 30,
2019, revenue was $1.8
billion, an increase of 4.5% over the prior year. The
increase in the quarter was driven by organic growth of 5.6% and
acquisition growth of 1.0%, partially offset by a 1.6% unfavorable
impact from foreign exchange ("FX") and 0.5% due to
dispositions.
Earnings from continuing operations of $206.0 million included acquisition-related
amortization costs of $25.6 million
and rightsizing and other costs of $3.0
million, representing $0.17
and $0.02 of diluted earnings per
share from continuing operations ("EPS"), respectively. Excluding
these items, adjusted earnings from continuing operations for the
quarter were $234.6 million (+15%
over the comparable period in 2018), and adjusted EPS was
$1.60 (+18% over the comparable
period in 2018).
Year to Date 2019 Financial Results:
For the nine month period ended September
30, 2019, revenue was $5.4
billion, an increase of 3.4% over the comparable period in
the prior year. The increase was driven by organic growth of 5.5%
and acquisition growth of 0.8%, partially offset by a 2.5%
unfavorable impact from FX and 0.4% due to dispositions.
Earnings from continuing operations of $509.8 million included acquisition-related
amortization costs of $78.5 million
and rightsizing and other costs of $11.2
million, representing $0.53
and $0.08 of EPS, respectively. In
addition, the period included a $46.9
million, or $0.32 of EPS,
non-cash after-tax loss on assets held for sale related to Finder
Pompe S.r.l. (a supplier of pumps to the upstream oil & gas
industry), which was sold on April 2,
2019. Excluding these items, adjusted earnings from
continuing operations for the period were $646.4 million (+19% over the comparable period
in 2018), and adjusted EPS was $4.40
(+24% over the comparable period in 2018).
Management Commentary:
Dover's President and Chief Executive Officer, Richard J. Tobin, said, "The Dover portfolio
companies delivered solid third quarter results as organic growth
of 6% drove 180 bps of improvement in adjusted operating margins
over the comparable period in 2018 as a result of volume leverage
and solid operational execution.
"Our Fluids segment had another solid quarter with organic
growth of 10%, driven by robust trading conditions and solid
production performance in both our retail fueling business and
pumps and process solutions markets. Engineered Systems' organic
growth of 6% was driven by both the industrial and printing &
identification platforms, with our digital printing business
posting strong growth during the quarter. Refrigeration & Food
Equipment had a slower quarter due to reduced demand conditions in
food retail and heat exchangers, particularly in Asia.
"As we turn our attention to the fourth quarter, we are focused
on delivering on our objectives for both earnings and cash flow,
despite the uncertain demand and macro environment in several of
our businesses and operating geographies. As a result of our solid
third quarter performance, we are reaffirming and tightening our
full year 2019 adjusted EPS guidance to $5.82 to $5.85."
Conference Call Information:
Dover will host a webcast and conference call to discuss its
third quarter 2019 results at 10:00 A.M.
Eastern Time (9:00 A.M. Central
Time) on Thursday, October 17,
2019. 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 third quarter and year to date results and its operating
segments can be found on the Company's website.
About Dover:
Dover is a diversified global manufacturer with annual revenue
of approximately $7 billion. We
deliver innovative equipment and components, specialty systems,
consumable supplies, software and digital solutions, and support
services through three operating segments: Engineered Systems,
Fluids 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 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, 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 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, 2018, 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.
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INVESTOR
SUPPLEMENT - THIRD QUARTER 2019
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DOVER
CORPORATION
CONSOLIDATED
STATEMENTS OF EARNINGS
(unaudited)(in
thousands, except per share data)
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Three Months
Ended
September 30,
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Nine Months
Ended
September
30,
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2019
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2018
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2019
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2018
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Revenue
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$
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1,825,345
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$
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1,747,403
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$
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5,360,808
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$
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5,183,168
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Cost of goods and
services
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1,151,857
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1,100,883
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3,391,185
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3,268,583
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Gross
profit
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673,488
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646,520
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1,969,623
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1,914,585
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Selling, general, and
administrative expenses
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390,775
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426,445
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1,195,875
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1,290,246
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Loss on assets held
for sale
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—
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—
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46,946
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—
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Operating
earnings
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282,713
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220,075
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726,802
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624,339
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Interest
expense
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31,410
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31,192
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94,972
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98,957
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Interest
income
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(1,263)
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(2,060)
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(3,098)
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(6,680)
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Other income,
net
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(5,364)
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(2,073)
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(11,059)
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(6,641)
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Earnings before
provision for income taxes
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257,930
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193,016
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645,987
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538,703
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Provision for income
taxes
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51,924
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35,711
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136,191
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105,533
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Earnings from
continuing operations
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206,006
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157,305
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509,796
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433,170
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Loss from
discontinued operations, net
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—
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—
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—
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(4,472)
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Net
earnings
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$
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206,006
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$
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157,305
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$
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509,796
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$
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428,698
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Basic earnings
(loss) per share*:
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Earnings from
continuing operations
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$
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1.42
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$
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1.07
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$
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3.51
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$
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2.87
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Loss from discontinued
operations, net
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—
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—
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—
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(0.03)
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Net
earnings
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$
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1.42
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$
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1.07
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$
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3.51
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$
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2.84
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Weighted average
shares outstanding
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145,372
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147,344
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145,276
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151,177
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Diluted earnings
(loss) per common share*:
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Earnings from
continuing operations
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$
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1.40
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$
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1.05
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$
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3.47
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$
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2.82
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Loss from discontinued
operations, net
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—
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—
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—
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(0.03)
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Net
earnings
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$
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1.40
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$
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1.05
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$
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3.47
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$
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2.79
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Weighted average
shares outstanding
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147,051
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149,457
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147,053
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153,429
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Dividends paid per
common share
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$
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0.49
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$
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0.48
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$
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1.45
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$
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1.42
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* Per share data may
be impacted by rounding.
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DOVER
CORPORATION
QUARTERLY SEGMENT
INFORMATION
(unaudited)(in
thousands)
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2019
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2018
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Q1
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Q2
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Q3
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Q3
YTD
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Q1
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Q2
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Q3
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Q3
YTD
|
Q4
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FY
2018
|
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REVENUE
|
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Engineered
Systems
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Printing &
Identification
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$
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282,086
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$
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278,813
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$
|
287,157
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$
|
848,056
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$
|
282,522
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$
|
299,834
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$
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283,232
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$
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865,588
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$
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296,843
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$
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1,162,431
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Industrials
|
405,105
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417,688
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414,634
|
1,237,427
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|
389,104
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403,155
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388,302
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1,180,561
|
399,956
|
1,580,517
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|
687,191
|
696,501
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701,791
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2,085,483
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|
671,626
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702,989
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671,534
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2,046,149
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696,799
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2,742,948
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Fluids
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703,224
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729,433
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753,046
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2,185,703
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628,098
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693,666
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690,065
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2,011,829
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785,509
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2,797,338
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Refrigeration
& Food Equipment
|
334,643
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385,474
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370,335
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1,090,452
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|
338,235
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401,766
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386,214
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1,126,215
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326,878
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1,453,093
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Intra-segment
eliminations
|
(301)
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(702)
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173
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(830)
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(288)
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(327)
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(410)
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(1025)
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(236)
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(1,261)
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Total consolidated
revenue
|
$
|
1,724,757
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$
|
1,810,706
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$
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1,825,345
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$
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5,360,808
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$
|
1,637,671
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$
|
1,798,094
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$
|
1,747,403
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$
|
5,183,168
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$
|
1,808,950
|
$
|
6,992,118
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|
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|
|
|
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NET
EARNINGS
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Segment
Earnings:
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Engineered
Systems
|
$
|
123,074
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$
|
131,770
|
$
|
136,022
|
$
|
390,866
|
|
$
|
102,066
|
$
|
126,649
|
$
|
108,714
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$
|
337,429
|
$
|
113,841
|
$
|
451,270
|
|
Fluids
1
|
52,221
|
128,915
|
145,502
|
326,638
|
|
67,348
|
93,028
|
101,207
|
261,583
|
128,221
|
389,804
|
|
Refrigeration &
Food Equipment
|
24,807
|
44,375
|
35,211
|
104,393
|
|
29,182
|
51,372
|
42,434
|
122,988
|
13,131
|
136,119
|
|
Total
segments
|
200,102
|
305,060
|
316,735
|
821,897
|
|
198,596
|
271,049
|
252,355
|
722,000
|
255,193
|
977,193
|
|
Corporate expense /
other
|
30,866
|
24,512
|
28,658
|
84,036
|
|
30,763
|
30,050
|
30,207
|
91,020
|
38,704
|
129,724
|
|
Interest
expense
|
31,808
|
31,754
|
31,410
|
94,972
|
|
35,640
|
32,125
|
31,192
|
98,957
|
32,015
|
130,972
|
|
Interest
income
|
(890)
|
(945)
|
(1,263)
|
(3,098)
|
|
(2,057)
|
(2,563)
|
(2,060)
|
(6,680)
|
(2,201)
|
(8,881)
|
|
Earnings before
provision for income taxes
|
138,318
|
249,739
|
257,930
|
645,987
|
|
134,250
|
211,437
|
193,016
|
538,703
|
186,675
|
725,378
|
|
Provision for income
taxes
|
32,613
|
51,654
|
51,924
|
136,191
|
|
24,841
|
44,981
|
35,711
|
105,533
|
28,700
|
134,233
|
|
Earnings from
continuing operations
|
105,705
|
198,085
|
206,006
|
509,796
|
|
109,409
|
166,456
|
157,305
|
433,170
|
157,975
|
591,145
|
|
Earnings (loss) from
discontinued operations, net
|
—
|
—
|
—
|
—
|
|
22,025
|
(26,497)
|
—
|
(4,472)
|
(16,406)
|
(20,878)
|
|
Net
earnings
|
$
|
105,705
|
$
|
198,085
|
$
|
206,006
|
$
|
509,796
|
|
$
|
131,434
|
$
|
139,959
|
$
|
157,305
|
$
|
428,698
|
$
|
141,569
|
$
|
570,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
MARGIN
|
|
|
|
|
|
|
|
|
|
|
Engineered
Systems
|
17.9%
|
18.9%
|
19.4%
|
18.7%
|
|
15.2%
|
18.0%
|
16.2%
|
16.5%
|
16.3%
|
16.5%
|
|
Fluids
1
|
7.4%
|
17.7%
|
19.3%
|
14.9%
|
|
10.7%
|
13.4%
|
14.7%
|
13.0%
|
16.3%
|
13.9%
|
|
Refrigeration &
Food Equipment
|
7.4%
|
11.5%
|
9.5%
|
9.6%
|
|
8.6%
|
12.8%
|
11.0%
|
10.9%
|
4.0%
|
9.4%
|
|
Total segment
operating margin
|
11.6%
|
16.8%
|
17.4%
|
15.3%
|
|
12.1%
|
15.1%
|
14.4%
|
13.9%
|
14.1%
|
14.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND
AMORTIZATION EXPENSE
|
|
Engineered
Systems
|
$
|
17,795
|
$
|
17,865
|
$
|
17,455
|
$
|
53,115
|
|
$
|
19,239
|
$
|
19,203
|
$
|
18,204
|
$
|
56,646
|
$
|
19,233
|
$
|
75,879
|
|
Fluids
|
35,426
|
35,146
|
34,762
|
105,334
|
|
34,449
|
34,981
|
34,954
|
104,384
|
36,060
|
140,444
|
|
Refrigeration &
Food Equipment
|
13,011
|
12,777
|
13,047
|
38,835
|
|
13,579
|
13,524
|
13,533
|
40,636
|
19,841
|
60,477
|
|
Corporate
|
1,506
|
1,981
|
1,523
|
5,010
|
|
1,358
|
1,595
|
1,399
|
4,352
|
1,428
|
5,780
|
|
Total depreciation
and amortization expense
|
$
|
67,738
|
$
|
67,769
|
$
|
66,787
|
$
|
202,294
|
|
$
|
68,625
|
$
|
69,303
|
$
|
68,090
|
$
|
206,018
|
$
|
76,562
|
$
|
282,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Q1 and
Q3 YTD 2019 includes a $46,946 loss on assets held for sale for
Finder Pompe S.r.l. ("Finder"). Excluding this loss, Fluids segment
earnings was $99,167 and $373,584, respectively, and segment margin
was 14.1% and 17.1%, respectively.
|
|
|
|
DOVER
CORPORATION
QUARTERLY SEGMENT
INFORMATION
(continued)
(unaudited)(in
thousands)
|
|
|
2019
|
|
2018
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
Q4
|
FY
2018
|
|
BOOKINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Systems
|
|
|
|
|
|
|
|
|
|
|
|
|
Printing &
Identification
|
$
|
280,658
|
$
|
276,402
|
$
|
296,654
|
$
|
853,714
|
|
$
|
284,437
|
$
|
306,770
|
$
|
271,367
|
$
|
862,574
|
$
|
295,963
|
$
|
1,158,537
|
|
Industrials
|
414,786
|
385,181
|
413,925
|
1,213,892
|
|
466,722
|
412,780
|
390,606
|
1,270,108
|
481,172
|
1,751,280
|
|
695,444
|
661,583
|
710,579
|
2,067,606
|
|
751,159
|
719,550
|
661,973
|
2,132,682
|
777,135
|
2,909,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluids
|
712,856
|
770,091
|
780,320
|
2,263,267
|
|
703,461
|
737,340
|
723,996
|
2,164,797
|
734,943
|
2,899,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refrigeration
& Food Equipment
|
376,998
|
384,365
|
323,422
|
1,084,785
|
|
372,701
|
428,816
|
331,979
|
1,133,496
|
341,221
|
1,474,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intra-segment
eliminations
|
(682)
|
(408)
|
(472)
|
(1,562)
|
|
(624)
|
33
|
(549)
|
(1,140)
|
(584)
|
(1,724)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated
bookings
|
$
|
1,784,616
|
$
|
1,815,631
|
$
|
1,813,849
|
$
|
5,414,096
|
|
$
|
1,826,697
|
$
|
1,885,739
|
$
|
1,717,399
|
$
|
5,429,835
|
$
|
1,852,715
|
$
|
7,282,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BACKLOG
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Systems
|
|
|
|
|
|
|
|
|
|
|
|
|
Printing &
Identification
|
$
|
121,374
|
$
|
119,967
|
$
|
125,084
|
|
|
$
|
135,915
|
$
|
137,019
|
$
|
126,609
|
|
$
|
122,028
|
|
|
Industrials
|
448,137
|
414,996
|
412,817
|
|
|
376,474
|
372,525
|
367,963
|
|
438,546
|
|
|
569,511
|
534,963
|
537,901
|
|
|
512,389
|
509,544
|
494,572
|
|
560,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluids
|
538,888
|
564,603
|
584,539
|
|
|
544,250
|
564,959
|
588,632
|
|
523,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refrigeration
& Food Equipment
|
311,632
|
310,454
|
262,870
|
|
|
283,250
|
309,440
|
255,783
|
|
268,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intra-segment
eliminations
|
(377)
|
(114)
|
(231)
|
|
|
(389)
|
(134)
|
(58)
|
|
(185)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated
backlog
|
$
|
1,419,654
|
$
|
1,409,906
|
$
|
1,385,079
|
|
|
$
|
1,339,500
|
$
|
1,383,809
|
$
|
1,338,929
|
|
$
|
1,353,171
|
|
|
|
|
DOVER
CORPORATION
QUARTERLY EARNINGS
PER SHARE
(unaudited)(in
thousands, except per share data*)
|
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
Q 1
|
Q2
|
Q3
|
Q3
YTD
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
Q4
|
FY
2018
|
|
Basic earnings
(loss) per common share:
|
|
Continuing
operations
|
$
|
0.73
|
$
|
1.36
|
$
|
1.42
|
$
|
3.51
|
|
$
|
0.71
|
$
|
1.10
|
$
|
1.07
|
$
|
2.87
|
$
|
1.08
|
$
|
3.94
|
|
Discontinued
operations
|
—
|
—
|
—
|
—
|
|
0.14
|
(0.17)
|
—
|
(0.03)
|
(0.11)
|
(0.14)
|
|
Net
earnings
|
$
|
0.73
|
$
|
1.36
|
$
|
1.42
|
$
|
3.51
|
|
$
|
0.85
|
$
|
0.92
|
$
|
1.07
|
$
|
2.84
|
$
|
0.97
|
$
|
3.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.72
|
$
|
1.35
|
$
|
1.40
|
$
|
3.47
|
|
$
|
0.70
|
$
|
1.08
|
$
|
1.05
|
$
|
2.82
|
$
|
1.07
|
$
|
3.89
|
|
Discontinued
operations
|
—
|
—
|
—
|
—
|
|
0.14
|
(0.17)
|
—
|
(0.03)
|
(0.11)
|
(0.14)
|
|
Net
earnings
|
$
|
0.72
|
$
|
1.35
|
$
|
1.40
|
$
|
3.47
|
|
$
|
0.84
|
$
|
0.91
|
$
|
1.05
|
$
|
2.79
|
$
|
0.96
|
$
|
3.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) and weighted average shares used in calculated earnings per
share amounts are as follows:
|
|
Net earnings
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
105,705
|
$
|
198,085
|
$
|
206,006
|
$
|
509,796
|
|
$
|
109,409
|
$
|
166,456
|
$
|
157,305
|
$
|
433,170
|
$
|
157,975
|
$
|
591,145
|
|
Discontinued
operations
|
—
|
—
|
—
|
—
|
|
22,025
|
(26,497)
|
—
|
(4,472)
|
(16,406)
|
(20,878)
|
|
Net
earnings
|
$
|
105,705
|
$
|
198,085
|
$
|
206,006
|
$
|
509,796
|
|
$
|
131,434
|
$
|
139,959
|
$
|
157,305
|
$
|
428,698
|
$
|
141,569
|
$
|
570,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
145,087
|
145,366
|
145,372
|
145,276
|
|
154,520
|
151,744
|
147,344
|
151,177
|
146,007
|
149,874
|
|
Diluted
|
146,911
|
147,179
|
147,051
|
147,053
|
|
157,090
|
153,938
|
149,457
|
153,429
|
147,940
|
152,133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Per share data may
be impacted by rounding.
|
|
|
|
|
Non-GAAP
Reconciliations
|
|
|
Adjusted Earnings
Per Share (Non-GAAP)
|
|
Earnings from
continuing operations are adjusted by the effect of
acquisition-related amortization, rightsizing and other costs, loss
on assets held for sale, and the Tax Cuts and Jobs Act to derive
adjusted earnings from continuing operations and adjusted diluted
earnings per
common share as follows:
|
|
2019
|
|
2018
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
Q4
|
FY
2018
|
|
Adjusted
earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
|
105,705
|
$
|
198,085
|
$
|
206,006
|
$
|
509,796
|
|
$
|
109,409
|
$
|
166,456
|
$
|
157,305
|
$
|
433,170
|
$
|
157,975
|
$
|
591,145
|
|
Acquisition-related
amortization, pre-tax 1
|
35,635
|
34,997
|
34,244
|
104,876
|
|
38,150
|
38,072
|
34,997
|
111,219
|
35,078
|
146,297
|
|
Acquisition-related
amortization, tax impact 2
|
(8,964)
|
(8,777)
|
(8,624)
|
(26,365)
|
|
(9,716)
|
(9,683)
|
(8,785)
|
(28,184)
|
(8,817)
|
(37,001)
|
|
Rightsizing and other
costs, pre-tax 3
|
3,963
|
6,457
|
3,807
|
14,227
|
|
4,371
|
6,808
|
24,201
|
35,380
|
37,448
|
72,828
|
|
Rightsizing and other
costs, tax impact 2
|
(861)
|
(1,377)
|
(806)
|
(3,044)
|
|
(797)
|
(1,448)
|
(4,477)
|
(6,722)
|
(7,809)
|
(14,531)
|
|
Loss on assets held
for sale 4
|
46,946
|
—
|
—
|
46,946
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Tax Cuts and Jobs Act
5
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
(2,832)
|
(2,832)
|
|
Adjusted earnings
from continuing operations
|
$
|
182,424
|
$
|
229,385
|
$
|
234,627
|
$
|
646,436
|
|
$
|
141,417
|
$
|
200,205
|
$
|
203,241
|
$
|
544,863
|
$
|
211,043
|
$
|
755,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per common share*:
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share from continuing operations
|
$
|
0.72
|
$
|
1.35
|
$
|
1.40
|
$
|
3.47
|
|
$
|
0.70
|
$
|
1.08
|
$
|
1.05
|
$
|
2.82
|
$
|
1.07
|
$
|
3.89
|
|
Acquisition-related
amortization, pre-tax 1
|
0.24
|
0.24
|
0.23
|
0.71
|
|
0.24
|
0.25
|
0.23
|
0.72
|
0.24
|
0.96
|
|
Acquisition-related
amortization, tax impact 2
|
(0.06)
|
(0.06)
|
(0.06)
|
(0.18)
|
|
(0.06)
|
(0.06)
|
(0.06)
|
(0.18)
|
(0.06)
|
(0.24)
|
|
Rightsizing and other
costs, pre-tax 3
|
0.03
|
0.04
|
0.03
|
0.10
|
|
0.03
|
0.04
|
0.16
|
0.23
|
0.25
|
0.48
|
|
Rightsizing and other
costs, tax impact 2
|
(0.01)
|
(0.01)
|
(0.01)
|
(0.02)
|
|
(0.01)
|
(0.01)
|
(0.03)
|
(0.04)
|
(0.05)
|
(0.10)
|
|
Loss on assets held
for sale 4
|
0.32
|
—
|
—
|
0.32
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Tax Cuts and Jobs Act
5
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
(0.02)
|
(0.02)
|
|
Adjusted diluted
earnings per share from continuing operations
|
$
|
1.24
|
$
|
1.56
|
$
|
1.60
|
$
|
4.40
|
|
$
|
0.90
|
$
|
1.30
|
$
|
1.36
|
$
|
3.55
|
$
|
1.43
|
$
|
4.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 assets held for sale of Finder. Under local
law, no tax benefit is realized from the loss on the sale of a
wholly-owned business.
|
|
5 2018 tax
benefits related to additional Tax Cuts and Jobs Act regulatory
guidance covered by SAB 118.
|
|
* Per share data and
totals may be impacted by rounding.
|
|
|
Adjusted EPS from
Continuing Operations Guidance Reconciliation
|
|
Range
|
|
2019 Guidance for
Earnings per Share from Continuing Operations (GAAP)
|
$
|
4.69
|
|
$
|
4.72
|
|
Acquisition-related
amortization, net
|
|
0.71
|
|
|
Rightsizing and other
costs, net
|
|
0.10
|
|
|
Loss on assets held for
sale
|
|
0.32
|
|
|
2019 Guidance for
Adjusted Earnings per Share from Continuing Operations
(Non-GAAP)
|
$
|
5.82
|
|
$
|
5.85
|
|
|
|
DOVER
CORPORATION
ADDITIONAL
INFORMATION
(unaudited)(in
thousands)
|
|
|
Quarterly Cash
Flow
|
|
|
2019
|
|
2018
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
Q4
|
FY
2018
|
|
Net Cash Flows
Provided By (Used In):
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities
|
$
|
24,524
|
$
|
208,709
|
$
|
350,865
|
$
|
584,098
|
|
$
|
15,535
|
$
|
159,205
|
$
|
243,944
|
$
|
418,684
|
$
|
370,509
|
$
|
789,193
|
|
Investing
activities
|
(217,690)
|
(69,755)
|
(48,612)
|
(336,057)
|
|
(122,597)
|
(51,606)
|
(35,922)
|
(210,125)
|
(35,355)
|
(245,480)
|
|
Financing
activities
|
36,067
|
(60,596)
|
(277,901)
|
(302,430)
|
|
(289,103)
|
(227,734)
|
(232,476)
|
(749,313)
|
(148,525)
|
(897,838)
|
|
|
Quarterly Free
Cash Flow (Non-GAAP)
|
|
|
2019
|
|
2018
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
|
Q1
|
Q2
|
Q3
|
Q3
YTD
|
Q4
|
FY
2018
|
|
Cash flow from
operating activities
|
$
|
24,524
|
$
|
208,709
|
$
|
350,865
|
$
|
584,098
|
|
$
|
15,535
|
$
|
159,205
|
$
|
243,944
|
$
|
418,684
|
$
|
370,509
|
$
|
789,193
|
|
Less: Capital
expenditures
|
(37,122)
|
(53,970)
|
(46,184)
|
(137,276)
|
|
(44,678)
|
(51,686)
|
(38,192)
|
(134,556)
|
(36,438)
|
(170,994)
|
|
Free cash
flow
|
$
|
(12,598)
|
$
|
154,739
|
$
|
304,681
|
$
|
446,822
|
|
$
|
(29,143)
|
$
|
107,519
|
$
|
205,752
|
$
|
284,128
|
$
|
334,071
|
$
|
618,199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow as a
percentage of revenue
|
(0.7)%
|
8.5%
|
16.7%
|
8.3%
|
|
(1.8)%
|
6.0%
|
11.8%
|
5.5%
|
18.5%
|
8.8%
|
|
|
|
|
|
|
Revenue Growth
Factors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2019
|
|
|
Engineered
Systems
|
|
Fluids
|
|
Refrigeration
& Food
Equipment
|
|
Total
|
|
Organic
|
6.3
|
%
|
|
9.8
|
%
|
|
(3.2)
|
%
|
|
5.6
|
%
|
|
Acquisitions
|
—
|
%
|
|
2.6
|
%
|
|
—
|
%
|
|
1.0
|
%
|
|
Dispositions
|
—
|
%
|
|
(1.3)
|
%
|
|
—
|
%
|
|
(0.5)
|
%
|
|
Currency
translation
|
(1.8)
|
%
|
|
(2.0)
|
%
|
|
(0.9)
|
%
|
|
(1.6)
|
%
|
|
Total *
|
4.5
|
%
|
|
9.1
|
%
|
|
(4.1)
|
%
|
|
4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2019
|
|
|
Engineered
Systems
|
|
Fluids
|
|
Refrigeration
& Food
Equipment
|
|
Total
|
|
Organic
|
4.5
|
%
|
|
10.7
|
%
|
|
(1.9)
|
%
|
|
5.5
|
%
|
|
Acquisitions
|
—
|
%
|
|
2.0
|
%
|
|
—
|
%
|
|
0.8
|
%
|
|
Dispositions
|
—
|
%
|
|
(1.0)
|
%
|
|
—
|
%
|
|
(0.4)
|
%
|
|
Currency
translation
|
(2.6)
|
%
|
|
(3.1)
|
%
|
|
(1.3)
|
%
|
|
(2.5)
|
%
|
|
Total *
|
1.9
|
%
|
|
8.6
|
%
|
|
(3.2)
|
%
|
|
3.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Totals may be
impacted by rounding.
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Disclosures
In an effort to provide investors with additional information
regarding our results as determined by GAAP, Management also
discloses non-GAAP information that Management believes provides
useful information to investors. Adjusted earnings from continuing
operations, adjusted diluted earnings per share from continuing
operations, free cash flow, and organic revenue growth are not
financial measures under GAAP and should not be considered as a
substitute for earnings from continuing operations, diluted
earnings per share from continuing operations, 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 earnings from continuing operations represents earnings
from continuing operations adjusted for the effect of
acquisition-related amortization, rightsizing and other costs, loss
on assets held for sale, and the Tax Cuts and Jobs Act. 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. Management believes this information is 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. Adjusted diluted
earnings per share from continuing operations represents adjusted
earnings from continuing operations divided by average diluted
shares.
Free cash flow represents net cash provided by operating
activities minus capital expenditures. Management believes that
free cash flow is an important measure 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 performance and trends between
periods.
|
|
|
|
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