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
decline
|
|
|
|
|
|
(2.7)
|
%
|
Adjusted net earnings
1
|
|
203
|
|
|
182
|
|
|
11.4
|
%
|
Adjusted diluted
EPS
|
|
1.39
|
|
|
1.24
|
|
|
12.1
|
%
|
|
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 €300,000 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