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. | ||||||||||||
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 | |
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 | |
Total segment earnings | 413,099 | 480,913 | 894,012 | 415,217 | 423,439 | 838,656 | 466,376 | 463,294 | 1,768,326 | |
Purchase accounting expenses 1 | 45,551 | 45,697 | 91,248 | 42,679 | 40,200 | 82,879 | 40,320 | 41,744 | 164,943 | |
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 / other 5 | 42,317 | 41,380 | 83,697 | 40,072 | 33,922 | 73,994 | 30,686 | 45,913 | 150,593 | |
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 | |
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 % | |
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) | |
Restructuring and other costs, pre- | 24,684 | 11,590 | 36,274 | 14,053 | 18,143 | 32,196 | 12,327 | 19,150 | 63,673 | |
Restructuring and other costs, tax | (4,875) | (2,479) | (7,354) | (2,990) | (3,665) | (6,655) | (2,556) | (3,970) | (13,181) | |
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 | — | — | — | — | — | — | |
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) | |
Restructuring and other costs, pre- | 0.18 | 0.08 | 0.26 | 0.10 | 0.13 | 0.23 | 0.09 | 0.14 | 0.46 | |
Restructuring and other costs, tax | (0.03) | (0.02) | (0.05) | (0.02) | (0.03) | (0.05) | (0.02) | (0.03) | (0.10) | |
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 | — | — | — | — | — | — | |
Adjusted diluted net earnings per | $ 1.95 | $ 2.36 | $ 4.31 | $ 1.94 | $ 2.05 | $ 3.99 | $ 2.35 | $ 2.45 | $ 8.80 | |
1 Purchase accounting expenses are primarily comprised of amortization of acquired intangible assets. | ||||||||||
2 Adjustments were tax effected using the statutory tax rates in the applicable jurisdictions or the effective tax rate, where applicable, for each period. | ||||||||||
3 Restructuring and other costs relate to actions taken for headcount reductions, facility consolidations and site closures, product line exits, and other asset charges. Q1 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 % | |
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 | |
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 | |
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 | |
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 % | |
Cash flow from operating | 61.1 % | 62.3 % | 61.7 % | 88.5 % | 67.8 % | 77.9 % | 115.9 % | 149.6 % | 108.1 % | |
Free cash flow as a percentage | 5.8 % | 7.5 % | 6.7 % | 9.3 % | 7.4 % | 8.3 % | 15.8 % | 21.6 % | 13.6 % | |
Free cash flow as a percentage | 44.8 % | 49.8 % | 47.5 % | 70.7 % | 53.9 % | 62.1 % | 102.9 % | 132.0 % | 92.5 % | |
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 | ||||||||||
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 | |
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 | |||
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 |
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SOURCE Dover