Dover Reports First Quarter 2022 Results

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Dover Reports First Quarter 2022 Results

DOWNERS GROVE, Ill., April 21, 2022 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the first quarter ended March 31, 2022.

Three Months Ended March 31,

($ in millions, except per share data)

2022

2021

% Change

U.S. GAAP

Revenue

$      2,052

$      1,868

10 %

Net earnings 1

226

233

(3) %

Diluted EPS 

1.56

1.61

(3) %







Non-GAAP

Organic revenue change




9 %

Adjusted net earnings 2

275

263

5 %

Adjusted diluted EPS

1.90

1.81

5 %

1 Q1 2022 and 2021 net earnings include rightsizing and other costs of $8.4 million and $3.1 million, respectively. Q1 2022 also includes a $0.2 million adjustment for the dispositions of UB and RWB in Q4 2021.

2 Q1 2022 and 2021 adjusted net earnings exclude after tax acquisition-related amortization costs of $40.7 million and $26.8 million, respectively, and rightsizing and other costs of $8.4 million and $3.1 million, respectively. Q1 2022 also excludes a $0.2 million adjustment for the dispositions of UB and RWB in Q4 2021.

For the quarter ended March 31, 2022, Dover generated revenue of $2.1 billion, an increase of 10% (+9% organic) compared to the first quarter of the prior year. GAAP net earnings of $226 million decreased 3%, and GAAP diluted EPS of $1.56 was also down 3%. On an adjusted basis, net earnings of $275 million increased 5% and adjusted diluted EPS of $1.90 was also up 5% 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 results in the first quarter were in line with our expectations and reflect solid execution amidst an operating environment that remains challenging on many levels.

"Revenue grew across a majority of our businesses, buoyed by solid underlying demand and our ability to produce and ship despite numerous operational challenges, and a difficult macro backdrop in Eastern Europe and China. Backlogs and order rates remain robust across much of the portfolio. Operating margin performance for the quarter was satisfactory as volume leverage, productivity, and tight cost controls were able to dampen the negative impact of supply chain constraints, input inflation, and un-forecasted production interruptions. Our pricing versus cost spread improved from the previous quarter as we liquidated our older order book and inventory position; we expect this to further improve over the balance of the year, meaningfully contributing to profitability.

"We are investing in capacity expansions and productivity improvements to ensure we can continue to drive revenue growth and win in the marketplace. The acquisitions that we closed in the fourth quarter of 2021 in the Clean Energy and Fueling segment are performing above expectations, and we recently acquired unique electric refuse collection vehicle technology.

"We believe we are well-positioned to deliver solid performance in 2022. Demand conditions are constructive and our backlog remains at record levels, providing us with good revenue visibility and the ability to forecast production. We are taking active measures to counter persisting headwinds and are prudently evaluating various scenarios of macro and specific market developments. We are maintaining our 2022 adjusted full-year guidance and will continue evaluating it as the year unfolds."

FULL YEAR 2022 GUIDANCE:

In 2022, Dover expects to generate GAAP EPS in the range of $7.39 to $7.59 (adjusted EPS of $8.45 to $8.65), based on full year revenue growth of 8% to 10% (7% to 9% on an organic basis).

CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its first quarter 2022 results at 9:00 A.M. Eastern Time (8:00 A.M. Central Time) on Thursday, April 21, 2022. 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 $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 over 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." 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, or other future pandemics, on the global economy and on our customers, suppliers, employees, business and cash flows, supply chain constraints and labor shortages that could result in production stoppages, inflation in material input costs and freight logistics, other general economic conditions and conditions in the particular markets in which we operate, the impact on global or a regional economy due to the outbreak or escalation of hostilities or war, 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, 2021, 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 2022

DOVER CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

(unaudited)(in thousands, except per share data)


Three Months Ended March 31,

2022

2021

Revenue

$        2,051,901

$        1,867,901

Cost of goods and services

1,308,707

1,146,353

Gross profit

743,194

721,548

Selling, general, and administrative expenses

443,843

408,998

Operating earnings

299,351

312,550

Interest expense

26,552

26,823

Interest income

(775)

(680)

Other income, net

(2,129)

(2,843)

Earnings before provision for income taxes

275,703

289,250

Provision for income taxes

49,550

56,481

Net earnings

$          226,153

$          232,769




Net earnings per share:


     Basic

$                1.57

$                1.62

     Diluted

$                1.56

$                1.61

Weighted average shares outstanding:


     Basic

144,087

143,765

     Diluted

145,329

144,938




Dividends paid per common share

$               0.500

$               0.495




* Per share data may be impacted by rounding.


 

DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)


2022

2021

Q1

Q1

Q2

Q3

Q4

FY 2021

REVENUE






Engineered Products

$        487,647

$        428,127

$        442,091

$        447,798

$        462,811

$     1,780,827

Clean Energy & Fueling

458,395

389,678

437,042

410,561

410,872

1,648,153

Imaging & Identification

272,255

284,328

294,076

292,535

292,428

1,163,367

Pumps & Process Solutions

435,195

394,377

428,701

438,240

447,316

1,708,634

Climate & Sustainability Technologies

399,078

372,077

430,506

429,425

376,167

1,608,175

Intercompany eliminations

(669)

(686)

(740)

(290)

(359)

(2,075)

Total consolidated revenue

$     2,051,901

$     1,867,901

$     2,031,676

$     2,018,269

$     1,989,235

$     7,907,081








NET EARNINGS






Segment Earnings:






Engineered Products 1

$          66,134

$          68,779

$          62,720

$          71,717

$          82,295

$        285,511

Clean Energy & Fueling

41,442

66,480

78,755

65,593

60,560

271,388

Imaging & Identification

51,529

56,992

60,747

63,419

55,989

237,147

Pumps & Process Solutions

139,340

123,645

138,632

142,414

142,172

546,863

Climate & Sustainability Technologies 2

40,396

38,117

48,971

42,841

192,693

322,622

Total segment earnings (EBIT)

338,841

354,013

389,825

385,984

533,709

1,663,531

Corporate expense / other

37,361

38,620

40,762

33,498

47,947

160,827

Interest expense

26,552

26,823

26,661

26,433

26,402

106,319

Interest income

(775)

(680)

(942)

(1,466)

(1,353)

(4,441)

Earnings before provision for income taxes

275,703

289,250

323,344

327,519

460,713

1,400,826

Provision for income taxes

49,550

56,481

58,836

63,763

97,928

277,008

Net earnings

$        226,153

$        232,769

$        264,508

$        263,756

$        362,785

$     1,123,818








SEGMENT MARGIN





Engineered Products 1

13.6%

16.1%

14.2%

16.0%

17.8%

16.0%

Clean Energy & Fueling

9.0%

17.1%

18.0%

16.0%

14.7%

16.5%

Imaging & Identification

18.9%

20.0%

20.7%

21.7%

19.1%

20.4%

Pumps & Process Solutions

32.0%

31.4%

32.3%

32.5%

31.8%

32.0%

Climate & Sustainability Technologies 2

10.1%

10.2%

11.4%

10.0%

51.2%

20.1%

Total segment operating margin

16.5%

19.0%

19.2%

19.1%

26.8%

21.0%








DEPRECIATION AND AMORTIZATION EXPENSE

Engineered Products

$          11,699

$          14,047

$          11,981

$          11,123

$          11,493

$          48,644

Clean Energy & Fueling

27,699

19,269

19,475

19,920

19,346

78,010

Imaging & Identification

9,189

9,593

9,294

9,821

9,802

38,510

Pumps & Process Solutions

16,890

16,926

16,866

17,843

17,440

69,075

Climate & Sustainability Technologies

11,353

12,096

12,077

12,392

12,069

48,634

Corporate

2,173

1,875

1,826

1,812

1,737

7,250

Total depreciation and amortization expense

$          79,003

$          73,806

$          71,519

$          72,911

$          71,887

$        290,123








1 Q4 and FY2021 include a $24,723 gain related to the disposition of our Race Winning Brands ("RWB") equity method investment. Q3 and FY 2021 include a $9,078 payment received for previously incurred restructuring costs related to a product line exit.

2 Q1 2022 includes $5,457 of non-cash foreign currency translation losses reclassified to earnings included within restructuring costs and a $2,117 write-off of assets related to an exit from certain Latin America countries. Q4 and FY2021 include a $181,615 gain on the disposition of Unified Brands ("UB"), a $12,073 other than temporary impairment charge related to an equity method investment, and a $6,072 write-off of assets incurred in connection with an exit from certain Latin America countries.

 

DOVER CORPORATION

QUARTERLY EARNINGS PER SHARE

(unaudited)(in thousands, except per share data*)

Earnings Per Share







2022

2021

Q1

Q1

Q2

Q3

Q4

FY 2021

Net earnings per share:






Basic

$               1.57

$               1.62

$               1.84

$               1.83

$               2.52

$               7.81

Diluted

$               1.56

$               1.61

$               1.82

$               1.81

$               2.49

$               7.74








Net earnings and weighted average shares used in calculated earnings per share amounts are as follows:

Net earnings

$        226,153

$        232,769

$        264,508

$        263,756

$        362,785

$     1,123,818








Weighted average shares outstanding:





Basic

144,087

143,765

143,941

143,976

144,005

143,923

Diluted

145,329

144,938

145,118

145,440

145,460

145,273








* 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

2022

2021

Q1

Q1

Q2

Q3

Q4

FY 2021

Adjusted net earnings:






Net earnings

$        226,153

$        232,769

$        264,508

$        263,756

$        362,785

$     1,123,818

Acquisition-related amortization, pre-tax 1

53,286

35,516

35,162

35,587

35,715

141,980

Acquisition-related amortization, tax impact 2

(12,538)

(8,720)

(8,571)

(8,700)

(8,763)

(34,754)

Rightsizing and other costs (benefits), pre-tax 3

10,552

4,162

10,779

(3,201)

26,696

38,436

Rightsizing and other costs (benefits), tax impact 2

(2,191)

(1,031)

(2,597)

902

(4,610)

(7,336)

Loss (gain) on dispositions, pre-tax 4

194

—

—

—

(206,338)

(206,338)

Loss (gain) on dispositions, tax-impact 2

(27)

—

—

—

53,218

53,218

Adjusted net earnings

$        275,429

$        262,696

$        299,281

$        288,344

$        258,703

$     1,109,024








Adjusted diluted net earnings per share:





Diluted net earnings per share

$               1.56

$               1.61

$               1.82

$               1.81

$               2.49

$               7.74

Acquisition-related amortization, pre-tax 1

0.37

0.25

0.24

0.24

0.25

0.98

Acquisition-related amortization, tax impact 2

(0.09)

(0.06)

(0.06)

(0.06)

(0.06)

(0.24)

Rightsizing and other costs (benefits), pre-tax 3

0.07

0.03

0.07

(0.02)

0.18

0.26

Rightsizing and other costs (benefits), tax impact 2

(0.02)

(0.01)

(0.02)

0.01

(0.03)

(0.05)

(Gain) loss on dispositions, pre-tax 4

—

—

—

—

(1.42)

(1.42)

(Gain) loss on dispositions, tax-impact 2

—

—

—

—

0.37

0.37

Adjusted diluted net earnings per share

$               1.90

$               1.81

$               2.06

$               1.98

$               1.78

$               7.63








1 Includes amortization on acquisition-related intangible assets and inventory step-up. Q1 2022 includes $12,487 of amortization of inventory step-up primarily related to the Q4 2021 acquisitions within our Clean Energy & Fueling segment.

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 (benefits) include actions taken on employee reductions, facility consolidations and site closures, product line exits, and other asset charges. Q1 2022 includes $5,457 of non-cash foreign currency translation losses reclassified to earnings included within restructuring costs and a $2,117 write-off of assets related to an exit from certain Latin America countries for our Climate & Sustainability Technologies segment. Q4 and FY 2021 for our Climate & Sustainability Technologies segment include a $12,073 other than temporary impairment charge related to an equity method investment and a $6,072 write-off of assets incurred in connection with an exit from certain Latin America countries. Q3 and FY 2021 include a $9,078 payment received for previously incurred restructuring costs related to a product line exit in our Engineered Products segment.

4 Q1 2022 represents working capital adjustments related to the disposition of UB and the RWB equity method investment in Q4 2021. Q4 and FY2021 represent a $181,615 gain on disposition of UB in our Climate & Sustainability Technologies segment and a $24,723 gain on disposition of our RWB equity method investment in our Engineered Products 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

2022

2021

Q1

Q1

Q2

Q3

Q4

FY 2021

ADJUSTED SEGMENT EBIT AND ADJUSTED EBITDA





Engineered Products:








Segment earnings (EBIT)

$          66,134

$          68,779

$          62,720

$          71,717

$          82,295

$        285,511

   Rightsizing and other costs (benefits) 1

509

4,019

4,654

(8,332)

464

805

   Gain on disposition 2

(328)

—

—

—

(24,723)

(24,723)

Adjusted EBIT - Segment

66,315

72,798

67,374

63,385

58,036

261,593

   Adjusted EBIT %

13.6 %

17.0 %

15.2 %

14.2 %

12.5 %

14.7 %

   Adjusted D&A 3

11,699

10,594

9,695

11,123

11,493

42,905

Adjusted EBITDA - Segment

$          78,014

$          83,392

$          77,069

$          74,508

$          69,529

$        304,498

   Adjusted EBITDA %

16.0 %

19.5 %

17.4 %

16.6 %

15.0 %

17.1 %

Clean Energy & Fueling:






Segment earnings (EBIT)

$          41,442

$          66,480

$          78,755

$          65,593

$          60,560

$        271,388

   Rightsizing and other costs

190

58

1,657

1,584

548

3,847

Adjusted EBIT - Segment

41,632

66,538

80,412

67,177

61,108

275,235

   Adjusted EBIT %

9.1 %

17.1 %

18.4 %

16.4 %

14.9 %

16.7 %

   Adjusted D&A 3

27,699

19,180

19,475

19,335

19,346

77,336

 Adjusted EBITDA - Segment 4

$          69,331

$          85,718

$          99,887

$          86,512

$          80,454

$        352,571

   Adjusted EBITDA %

15.1 %

22.0 %

22.9 %

21.1 %

19.6 %

21.4 %

Imaging & Identification:






Segment earnings (EBIT)

$          51,529

$          56,992

$          60,747

$          63,419

$          55,989

$        237,147

   Rightsizing and other costs

1,377

682

178

1,291

4,326

6,477

Adjusted EBIT - Segment

52,906

57,674

60,925

64,710

60,315

243,624

   Adjusted EBIT %

19.4 %

20.3 %

20.7 %

22.1 %

20.6 %

20.9 %

   Adjusted D&A 3

9,189

9,218

9,184

9,821

9,274

37,497

Adjusted EBITDA - Segment

$          62,095

$          66,892

$          70,109

$          74,531

$          69,589

$        281,121

   Adjusted EBITDA %

22.8 %

23.5 %

23.8 %

25.5 %

23.8 %

24.2 %

Pumps & Process Solutions:






Segment earnings (EBIT)

$        139,340

$        123,645

$        138,632

$        142,414

$        142,172

$        546,863

   Rightsizing and other (benefits) costs

686

(2,006)

899

487

184

(436)

Adjusted EBIT - Segment

140,026

121,639

139,531

142,901

142,356

546,427

   Adjusted EBIT %

32.2 %

30.8 %

32.5 %

32.6 %

31.8 %

32.0 %

   Adjusted D&A 3

16,513

16,926

16,866

17,206

17,440

68,438

Adjusted EBITDA - Segment

$        156,539

$        138,565

$        156,397

$        160,107

$        159,796

$        614,865

   Adjusted EBITDA %

36.0 %

35.1 %

36.5 %

36.5 %

35.7 %

36.0 %

Climate & Sustainability Technologies:





Segment earnings (EBIT)

$          40,396

$          38,117

$          48,971

$          42,841

$        192,693

$        322,622

   Rightsizing and other (benefits) costs 5

7,833

(38)

2,539

1,520

19,193

23,214

   Loss (gain) on dispositions 6

522

—

—

—

(181,615)

(181,615)

Adjusted EBIT - Segment

48,751

38,079

51,510

44,361

30,271

164,221

   Adjusted EBIT %

12.2 %

10.2 %

12.0 %

10.3 %

8.0 %

10.2 %

   Adjusted D&A 3

11,353

11,745

12,077

12,392

12,069

48,283

Adjusted EBITDA - Segment

$          60,104

$          49,824

$          63,587

$          56,753

$          42,340

$        212,504

   Adjusted EBITDA %

15.1 %

13.4 %

14.8 %

13.2 %

11.3 %

13.2 %

Total Segments:





Segment earnings (EBIT) 7

$        338,841

$        354,013

$        389,825

$        385,984

$        533,709

$     1,663,531

   Rightsizing and other costs (benefits) 1, 5

10,595

2,715

9,927

(3,450)

24,715

33,907

   Loss (gain) on dispositions 2, 6

194

—

—

—

(206,338)

(206,338)

Adjusted EBIT - Segment 8

349,630

356,728

399,752

382,534

352,086

1,491,100

   Adjusted EBIT % 8

17.0 %

19.1 %

19.7 %

19.0 %

17.7 %

18.9 %

   Adjusted D&A 3

76,453

67,663

67,297

69,877

69,622

274,459

Adjusted EBITDA - Segment 4, 8

$        426,083

$        424,391

$        467,049

$        452,411

$        421,708

$     1,765,559

   Adjusted EBITDA % 8

20.8 %

22.7 %

23.0 %

22.4 %

21.2 %

22.3 %








1 Q3 and FY 2021 include a $9,078 payment received for previously incurred restructuring costs related to a product line exit.

2 Q1 2022 includes a $328 working capital adjustment related to the disposition of our RWB equity method investment in Q4 2021. Q4 and FY2021 include a related gain on disposition of $24,723.

3 Adjusted D&A is depreciation and amortization expense, excluding depreciation and amortization included within rightsizing and other costs.

4 Q1 2022 EBITDA includes $12,487 of acquisition-related amortization of inventory step-up.

5 Q1 2022 includes $5,457 of non-cash foreign currency translation losses reclassified to earnings included within restructuring costs and a $2,117 write-off of assets related to an exit from certain Latin America countries. Q4 and FY 2021 include a $12,073 other than temporary impairment charge related to an equity method investment and a $6,072 write-off of assets incurred in connection with an exit from certain Latin America countries.

6 Q1 2022 includes a $522 working capital adjustment related to the disposition of UB in Q4 2021. Q4 and FY2021 include a related gain on disposition of $181,615.

7 Refer to Quarterly Segment Information section for reconciliation of total segment earnings (EBIT) to net earnings.

8 Refer to Non-GAAP Disclosures section for definition.

 

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

2022

Q1

Organic

          Engineered Products

14.6%

          Clean Energy & Fueling

0.2%

          Imaging & Identification

(1.1)%

          Pumps & Process Solutions

12.6%

          Climate & Sustainability Technologies

17.4%

Total Organic

9.3%

Acquisitions

4.4%

Dispositions

(1.6)%

Currency translation

(2.2)%

Total*

9.9%

 * Totals may be impacted by rounding.


2022

Q1

Organic

          United States

9.0%

          Other Americas

11.0%

          Europe

5.8%

          Asia

18.9%

          Other

9.4%

Total Organic

9.3%

Acquisitions

4.4%

Dispositions

(1.6)%

Currency translation

(2.2)%

Total*

9.9%

* Totals may be impacted by rounding.

 

Adjusted EPS Guidance Reconciliation

Range

2022 Guidance for Earnings per Share (GAAP)

$          7.39

$          7.59

Acquisition-related amortization, net

0.91

Rightsizing and other costs, net

0.15

2022 Guidance for Adjusted Earnings per Share (Non-GAAP)

$          8.45

$          8.65

* 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


2022

2021

Q1

Q1

Q2

Q3

Q4

FY 2021

Net Cash Flows Provided By (Used In):





Operating activities

$          23,683

$        177,184

$        260,073

$        351,329

$        327,279

$     1,115,865

Investing activities

(46,963)

(29,572)

(121,631)

(135,439)

(706,111)

(992,753)

Financing activities

(75,204)

(124,239)

(75,949)

(74,610)

24,918

(249,880)

Quarterly Free Cash Flow (Non-GAAP)


2022

2021

Q1

Q1

Q2

Q3

Q4

FY 2021

Cash flow from operating activities

$          23,683

$        177,184

$        260,073

$        351,329

$        327,279

$     1,115,865

Less: Capital expenditures

(50,381)

(31,260)

(41,971)

(47,926)

(50,308)

(171,465)

Free cash flow

$         (26,698)

$        145,924

$        218,102

$        303,403

$        276,971

$        944,400








Cash flow from operating activities as a
percentage of revenue

1.2 %

9.5 %

12.8 %

17.4 %

16.5 %

14.1 %








Cash flow from operating activities as a
percentage of adjusted net earnings

8.6 %

67.4 %

86.9 %

121.8 %

126.5 %

100.6 %








Free cash flow as a percentage of revenue

-1.3 %

7.8 %

10.7 %

15.0 %

13.9 %

11.9 %








Free cash flow as a percentage of adjusted net
earnings

-9.7 %

55.5 %

72.9 %

105.2 %

107.1 %

85.2 %








 

DOVER CORPORATION

PERFORMANCE MEASURES

(unaudited)(in thousands)


2022

2021

Q1

Q1

Q2

Q3

Q4

FY 2021

BOOKINGS














Engineered Products

$        541,035

$        528,310

$        497,200

$        502,767

$        585,452

$     2,113,729

Clean Energy & Fueling

501,491

422,668

453,146

467,821

398,844

1,742,479

Imaging & Identification

307,104

293,614

299,608

293,782

303,400

1,190,404

Pumps & Process Solutions

459,790

551,365

521,010

490,581

460,105

2,023,061

Climate & Sustainability Technologies

444,852

537,326

606,545

540,280

632,849

2,317,000

Intercompany eliminations

(2,295)

(863)

(498)

(407)

(290)

(2,058)

Total consolidated bookings

$     2,251,977

$     2,332,420

$     2,377,011

$     2,294,824

$     2,380,360

$     9,384,615








BACKLOG














Engineered Products

$        830,135

$        562,557

$        613,517

$        662,834

$        785,085

Clean Energy & Fueling

426,342

238,822

256,497

312,176

383,572

Imaging & Identification

243,411

198,556

206,125

204,766

212,098

Pumps & Process Solutions

704,935

539,097

634,477

682,415

688,931

Climate & Sustainability Technologies

1,218,155

677,309

854,188

964,233

1,174,479

Intercompany eliminations

(1,756)

(544)

(262)

(252)

(225)

Total consolidated backlog

$     3,421,222

$     2,215,797

$     2,564,542

$     2,826,172

$     3,243,940








 

Bookings Growth Factors


2022

Q1

Organic

          Engineered Products

3.4%

          Clean Energy & Fueling

(2.7)%

          Imaging & Identification

7.7%

          Pumps & Process Solutions

(14.0)%

          Climate & Sustainability Technologies

(9.4)%

Total Organic

(4.3)%

Acquisitions

4.4%

Dispositions

(1.4)%

Currency translation

(2.1)%

Total*

(3.4)%

* 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 (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 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 acquisition-related amortization and inventory step-up, rightsizing and other costs/benefits, and a gain/loss 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. While we have a history of acquisition activity, our acquisitions do not happen in a predictive cycle. Exclusion of this amortization expense 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 represents diluted EPS adjusted for the effect of acquisition-related amortization and inventory step-up, rightsizing and other costs/benefits, and a gain/loss on disposition,

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/benefits, and a 2020 gain/loss 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/benefits. Adjusted EBITDA Margin by Segment is defined as adjusted EBITDA by segment divided by segment 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 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. We do not provide a reconciliation of forward-looking organic revenue to consolidated revenue (the most directly comparable GAAP financial measure) 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. 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:

Jack Dickens

Adrian Sakowicz

Senior Director - Investor Relations

Vice President - Communications

(630) 743-2566

(630) 743-5039

jdickens@dovercorp.com

asakowicz@dovercorp.com


 

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SOURCE Dover