Dover Reports First Quarter 2024 Results

Print Page Print PageRSS Feeds RSS FeedsE-mail Alerts E-mail Alerts

Press Release

  View printer-friendly version

<<  Back

Dover Reports First Quarter 2024 Results

DOWNERS GROVE, Ill., April 25, 2024 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the first quarter ended March 31, 2024. All comparisons are to the comparable period of the prior fiscal year, unless otherwise noted.

Three Months Ended March 31,

($ in millions, except per share data)

2024

2023

% Change*

U.S. GAAP

Revenue

$       2,094

$       2,079

1 %

Net earnings 

632

229

177 %

Diluted EPS 

4.52

1.63

177 %







Non-GAAP

Organic revenue change




(1) %

Adjusted net earnings 1

273

273

— %

Adjusted diluted EPS

1.95

1.94

1 %

1 Q1 2024 and 2023 adjusted net earnings exclude after tax purchase accounting expenses and restructuring and other costs. Q1 2024 also excludes the after tax gain on the sale of De-Sta-Co.

* Change may be impacted by rounding.

For the quarter ended March 31, 2024, Dover generated revenue of $2.1 billion, an increase of 1% (-1% organic). GAAP net earnings of $632 million increased 177%, and GAAP diluted EPS of $4.52 was up 177%. On an adjusted basis, net earnings of $273 million was approximately flat and adjusted diluted EPS of $1.95 was up 1%.

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 first quarter results were in line with our expectations. We are particularly pleased with the success of our organic growth platforms, as well as the order trends in the quarter, which validate the aggressive working capital posture we adopted in 2023. Order momentum in the quarter was strong and broad-based, particularly in our shorter-cycle end markets, building off the prior year exit rate and bolstering confidence in our full year outlook. Strong growth in several key markets and improving performance in biopharma components set us up for favorable sequential margin mix over the balance of the year.

"We remained active in portfolio management and productive capital deployment. During the quarter we completed two synergistic bolt-on acquisitions in our Clean Energy and Fueling segment adding attractive digital and recurring revenue streams to our car wash and retail fueling platforms. We launched a $500 million accelerated share repurchase program returning excess capital to shareholders. Our continued strong cash flow generation, together with proceeds from the recently closed De-Sta-Co divestiture, provide ample capacity for further capital deployment in 2024.

"We are off to a solid start in 2024, and the setup for the remainder of the year is encouraging. Our order rate momentum and healthy underlying demand conditions across the portfolio support the outlook for continued volume and profit improvement through the year. We are narrowing our full year adjusted EPS guidance to the higher end of the range, and will further evaluate our full year targets as the year progresses should present demand trends continue."

FULL YEAR 2024 GUIDANCE:

In 2024, Dover expects to generate GAAP EPS in the range of $10.78 to $10.93 (adjusted EPS of $9.00 to $9.15), based on full year revenue growth of 2% to 4% (1% to 3% on an organic basis). Full year GAAP EPS includes the gain on sale of De-Sta-Co.

CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its first quarter results at 9:30 A.M. Eastern Time (8:30 A.M. Central Time) on Thursday, April 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 - FIRST QUARTER 2024

DOVER CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

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


Three Months Ended March 31,

2024

2023

Revenue

$          2,093,941

$            2,079,023

Cost of goods and services

1,336,686

1,332,004

Gross profit

757,255

747,019

Selling, general and administrative expenses

463,124

432,414

Operating earnings

294,131

314,605

Interest expense

36,365

34,214

Interest income

(4,757)

(2,091)

Gain on disposition

(529,943)

—

Other income, net

(6,416)

(3,808)

Earnings before provision for income taxes

798,882

286,290

Provision for income taxes

166,661

57,716

Net earnings

$              632,221

$               228,574




Net earnings per share:


Basic

$                    4.55

$                      1.64

Diluted

$                    4.52

$                      1.63

Weighted average shares outstanding:


Basic

139,051

139,757

Diluted

139,869

140,616




Dividends paid per common share

$                  0.510

$                    0.505




* Per share data may be impacted by rounding.


 

DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)


2024

2023

Q1

Q1

Q2

Q3

Q4

FY 2023

REVENUE






Engineered Products

$       543,140

$       497,549

$       473,687

$       504,271

$       529,080

$     2,004,587

Clean Energy & Fueling

445,053

430,729

441,166

466,959

449,423

1,788,277

Imaging & Identification

276,806

283,091

271,932

276,179

285,530

1,116,732

Pumps & Process Solutions

465,729

413,881

465,626

431,373

444,811

1,755,691

Climate & Sustainability Technologies

364,292

455,325

449,001

475,911

398,345

1,778,582

Intersegment eliminations

(1,079)

(1,552)

(1,326)

(1,425)

(1,432)

(5,735)

Total consolidated revenue

$    2,093,941

$    2,079,023

$    2,100,086

$    2,153,268

$   2,105,757

$     8,438,134








NET EARNINGS






Segment Earnings:






Engineered Products

$       103,969

$         84,275

$         73,076

$       101,610

$       118,464

$        377,425

Clean Energy & Fueling

69,675

73,605

83,616

92,483

78,900

328,604

Imaging & Identification

69,959

68,315

61,336

70,316

72,545

272,512

Pumps & Process Solutions

118,737

115,244

129,337

117,907

121,917

484,405

Climate & Sustainability Technologies

50,759

73,778

76,074

84,060

71,468

305,380

Total segment earnings

413,099

415,217

423,439

466,376

463,294

1,768,326

Purchase accounting

expenses 1

45,551

42,679

40,200

40,320

41,744

164,943

Restructuring and other costs 2

24,684

14,053

18,143

12,327

19,150

63,673

Disposition costs 3

—

—

—

—

1,302

1,302

Gain on disposition 4

(529,943)

—

—

—

—

—

Corporate expense

 / other 5

42,317

40,072

33,922

30,686

45,913

150,593

Interest expense

36,365

34,214

33,804

32,389

30,898

131,305

Interest income

(4,757)

(2,091)

(2,653)

(3,808)

(4,944)

(13,496)

Earnings before provision for income taxes

798,882

286,290

300,023

354,462

329,231

1,270,006

Provision for income taxes 6

166,661

57,716

57,784

64,709

32,969

213,178

Net earnings

$       632,221

$       228,574

$       242,239

$       289,753

$       296,262

$     1,056,828








SEGMENT EARNINGS MARGIN





Engineered Products

19.1 %

16.9 %

15.4 %

20.1 %

22.4 %

18.8 %

Clean Energy & Fueling

15.7 %

17.1 %

19.0 %

19.8 %

17.6 %

18.4 %

Imaging & Identification

25.3 %

24.1 %

22.6 %

25.5 %

25.4 %

24.4 %

Pumps & Process Solutions

25.5 %

27.8 %

27.8 %

27.3 %

27.4 %

27.6 %

Climate & Sustainability Technologies

13.9 %

16.2 %

16.9 %

17.7 %

17.9 %

17.2 %

Total segment earnings margin

19.7 %

20.0 %

20.2 %

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 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

Q1

Q2

Q3

Q4

FY 2023

Net earnings per share:






Basic

$              4.55

$            1.64

$            1.73

$             2.07

$            2.12

$            7.56

Diluted

$              4.52

$            1.63

$            1.72

$             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

$     228,574

$     242,239

$      289,753

$     296,262

$  1,056,828








Weighted average shares outstanding:





Basic

139,051

139,757

139,862

139,878

139,893

139,848

Diluted

139,869

140,616

140,578

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

Q1

Q2

Q3

Q4

FY 2023

Adjusted net earnings:






Net earnings

$      632,221

$      228,574

$      242,239

$      289,753

$      296,262

$   1,056,828

Purchase accounting expenses, pre-tax 1

45,551

42,679

40,200

40,320

41,744

164,943

Purchase accounting expenses, tax impact 2

(10,005)

(9,599)

(9,012)

(8,966)

(9,143)

(36,720)

Restructuring and other costs, pre-tax 3

24,684

14,053

18,143

12,327

19,150

63,673

Restructuring and other costs, tax impact 2

(4,875)

(2,990)

(3,665)

(2,556)

(3,970)

(13,181)

Disposition costs, pre-tax 4

—

—

—

—

1,302

1,302

Disposition costs, tax impact 2

—

—

—

—

(270)

(270)

Gain on disposition, pre-tax 5

(529,943)

—

—

—

—

—

Gain on disposition, tax-impact 2

114,973

—

—

—

—

—

Adjusted net earnings

$      272,606

$      272,717

$      287,905

$      330,878

$      345,075

$   1,236,575








Adjusted diluted net earnings per share:





Diluted net earnings per share

$             4.52

$             1.63

$             1.72

$             2.06

$             2.11

$             7.52

Purchase accounting expenses, pre-tax 1

0.33

0.30

0.29

0.29

0.30

1.18

Purchase accounting expenses, tax impact 2

(0.07)

(0.07)

(0.06)

(0.06)

(0.07)

(0.26)

Restructuring and other costs, pre-tax 3

0.18

0.10

0.13

0.09

0.14

0.46

Restructuring and other costs, tax impact 2

(0.03)

(0.02)

(0.03)

(0.02)

(0.03)

(0.10)

Disposition costs, pre-tax 4

—

—

—

—

0.01

0.01

Disposition costs, tax impact 2

—

—

—

—

—

—

Gain on disposition, pre-tax 5

(3.79)

—

—

—

—

—

Gain on disposition, tax-impact 2

0.82

—

—

—

—

—

Adjusted diluted net earnings per share

$             1.95

$             1.94

$             2.05

$             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 2024 includes $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 on disposition due to the sale of De-Sta-Co in the Engineered Products segment.

* 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

Q1

Q2

Q3

Q4

FY 2023

ADJUSTED SEGMENT EBITDA














Engineered Products:








Segment earnings

$     103,969

$       84,275

$       73,076

$     101,610

$     118,464

$     377,425

Other depreciation and amortization 1

6,361

7,070

7,300

7,306

6,397

28,073

Adjusted segment EBITDA 2

110,330

91,345

80,376

108,916

124,861

405,498

Adjusted segment EBITDA margin 2

20.3 %

18.4 %

17.0 %

21.6 %

23.6 %

20.2 %








Clean Energy & Fueling:






Segment earnings

$       69,675

$       73,605

$       83,616

$       92,483

$       78,900

$     328,604

Other depreciation and amortization 1

7,921

7,046

7,541

7,686

7,844

30,117

Adjusted segment EBITDA 2

77,596

80,651

91,157

100,169

86,744

358,721

Adjusted segment EBITDA margin 2

17.4 %

18.7 %

20.7 %

21.5 %

19.3 %

20.1 %








Imaging & Identification:






Segment earnings

$       69,959

$       68,315

$       61,336

$       70,316

$       72,545

$     272,512

Other depreciation and amortization 1

3,733

3,394

3,745

3,972

4,182

15,293

Adjusted segment EBITDA 2

73,692

71,709

65,081

74,288

76,727

287,805

Adjusted segment EBITDA margin 2

26.6 %

25.3 %

23.9 %

26.9 %

26.9 %

25.8 %








Pumps & Process Solutions:






Segment earnings

$     118,737

$    115,244

$     129,337

$     117,907

$     121,917

$     484,405

Other depreciation and amortization 1

12,139

10,939

11,609

12,052

11,744

46,344

Adjusted segment EBITDA 2

130,876

126,183

140,946

129,959

133,661

530,749

Adjusted segment EBITDA margin 2

28.1 %

30.5 %

30.3 %

30.1 %

30.0 %

30.2 %








Climate & Sustainability Technologies:





Segment earnings

$       50,759

$       73,778

$       76,074

$       84,060

$       71,468

$     305,380

Other depreciation and amortization 1

7,275

6,624

6,895

6,954

7,084

27,557

Adjusted segment EBITDA 2

58,034

80,402

82,969

91,014

78,552

332,937

Adjusted segment EBITDA margin 2

15.9 %

17.7 %

18.5 %

19.1 %

19.7 %

18.7 %








Total Segments:






Total segment earnings 2, 3

$     413,099

$    415,217

$     423,439

$     466,376

$     463,294

$ 1,768,326

Other depreciation and amortization 1

37,429

35,073

37,090

37,970

37,251

147,384

Total Adjusted segment EBITDA 2

450,528

450,290

460,529

504,346

500,545

1,915,710

Total Adjusted segment EBITDA margin 2

21.5 %

21.7 %

21.9 %

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

Q1

Q2

Q3

Q4

FY 2023

Net earnings

$      632,221

$      228,574

$      242,239

$      289,753

$      296,262

$   1,056,828

Provision for income taxes 1

166,661

57,716

57,784

64,709

32,969

213,178

Earnings before provision for income taxes

798,882

286,290

300,023

354,462

329,231

1,270,006

Interest income

(4,757)

(2,091)

(2,653)

(3,808)

(4,944)

(13,496)

Interest expense

36,365

34,214

33,804

32,389

30,898

131,305

Corporate expense / other 2

42,317

40,072

33,922

30,686

45,913

150,593

Disposition costs 3

—

—

—

—

1,302

1,302

Gain on disposition 4

(529,943)

—

—

—

—

—

Restructuring and other costs 5

24,684

14,053

18,143

12,327

19,150

63,673

Purchase accounting expenses 6

45,551

42,679

40,200

40,320

41,744

164,943

Total segment earnings 7

413,099

415,217

423,439

466,376

463,294

1,768,326

Add: Other depreciation and amortization 8

37,429

35,073

37,090

37,970

37,251

147,384

Total adjusted segment EBITDA 7

$      450,528

$      450,290

$      460,529

$      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 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

Q1

Organic

Engineered Products

9.2 %

Clean Energy & Fueling

1.4 %

Imaging & Identification

(1.6) %

Pumps & Process Solutions

4.5 %

Climate & Sustainability Technologies

(20.3) %

Total Organic

(1.3) %

Acquisitions

2.0 %

Currency translation

— %

Total*

0.7 %

 * Totals may be impacted by rounding.


2024

Q1

Organic

United States

1.3 %

Other Americas

(5.5) %

Europe

(0.5) %

Asia 

(4.9) %

Other

(21.7) %

Total Organic

(1.3) %

Acquisitions

2.0 %

Currency translation

— %

Total*

0.7 %

 * Totals may be impacted by rounding.

 

Adjusted EPS Guidance Reconciliation

Range

2024 Guidance for Earnings per Share (GAAP)

$10.78

$10.93

Purchase accounting expenses, net

1.00

Restructuring and other costs, net

0.22

Gain on disposition, net

(3.00)

2024 Guidance for Adjusted Earnings per Share (Non-GAAP)

$9.00

$9.15

* 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

Q1

Q2

Q3

Q4

FY 2023

Net Cash Flows Provided By (Used In):





Operating activities

$      166,593

$      241,284

$      195,254

$      383,457

$      516,350

$   1,336,345

Investing activities

429,851

(43,556)

(42,454)

(50,243)

(590,377)

(726,630)

Financing activities

(80,782)

(306,565)

(137,924)

(312,716)

189,149

(568,056)

Quarterly Free Cash Flow (Non-GAAP)


2024

2023

Q1

Q1

Q2

Q3

Q4

FY 2023

Cash flow from operating activities

$      166,593

$      241,284

$      195,254

$      383,457

$      516,350

$   1,336,345

Less: Capital expenditures

(44,475)

(48,375)

(40,079)

(43,128)

(61,010)

(192,592)

Free cash flow

$      122,118

$      192,909

$      155,175

$      340,329

$      455,340

$   1,143,753








Cash flow from operating activities as a percentage of revenue

8.0 %

11.6 %

9.3 %

17.8 %

24.5 %

15.8 %








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

61.1 %

88.5 %

67.8 %

115.9 %

149.6 %

108.1 %








Free cash flow as a percentage of revenue

5.8 %

9.3 %

7.4 %

15.8 %

21.6 %

13.6 %








Free cash flow as a percentage of adjusted net earnings

44.8 %

70.7 %

53.9 %

102.9 %

132.0 %

92.5 %

 

DOVER CORPORATION

PERFORMANCE MEASURES

(unaudited)(in thousands)


2024

2023

Q1

Q1

Q2

Q3

Q4

FY 2023

BOOKINGS














Engineered Products

$      541,982

$      536,472

$      489,131

$      576,641

$      494,528

$   2,096,772

Clean Energy & Fueling

471,610

454,526

440,137

449,663

401,195

1,745,521

Imaging & Identification

278,433

290,712

262,092

271,113

297,312

1,121,229

Pumps & Process Solutions

473,632

464,297

394,317

363,111

455,390

1,677,115

Climate & Sustainability Technologies

453,086

371,643

310,911

340,474

325,625

1,348,653

Intersegment eliminations

(1,107)

(1,530)

(1,918)

(849)

(2,125)

(6,422)

Total consolidated bookings

$   2,217,636

$   2,116,120

$   1,894,670

$   2,000,153

$   1,971,925

$   7,982,868

 

2024

Q1

BOOKINGS GROWTH FACTORS


Organic

Engineered Products

1.0 %

Clean Energy & Fueling

1.6 %

Imaging & Identification

(3.4) %

Pumps & Process Solutions

(4.6) %

Climate & Sustainability Technologies

22.3 %

Total Organic

3.0 %

Acquisitions

1.9 %

Currency translation

(0.1) %

Total*

4.8 %

* Totals may be impacted by rounding.

Non-GAAP Measures Definitions

In an effort to provide investors with additional information regarding our results as determined by GAAP, management also discloses non-GAAP information that management believes provides useful information to investors. Adjusted net earnings, adjusted diluted net earnings per share, total segment earnings, total segment earnings margin, adjusted segment EBITDA, adjusted segment EBITDA margin, free cash flow, free cash flow as a percentage of revenue, free cash flow as a percentage of adjusted net earnings, and organic revenue growth are not financial measures under GAAP and should not be considered as a substitute for net earnings, diluted net earnings per share, cash flows from operating activities, or revenue as determined in accordance with GAAP, and they may not be comparable to similarly titled measures reported by other companies. 

Adjusted net earnings represents net earnings adjusted for the effect of purchase accounting expenses, restructuring and other costs/benefits, disposition costs and gain/loss on disposition. Purchase accounting expenses are primarily comprised of amortization of intangible assets. We exclude after-tax purchase accounting expenses because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions the Company consummates. While we have a history of acquisition activity, our acquisitions do not happen in a predictive cycle. Exclusion of purchase accounting expenses facilitates more consistent comparisons of operating results over time. We believe it is important to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. We exclude the other items because they occur for reasons that may be unrelated to the Company's commercial performance during the period and/or management believes they are not indicative of the Company's ongoing operating costs or gains in a given period.

Adjusted diluted net earnings per share or adjusted earnings per share represent diluted EPS adjusted for the effect of purchase accounting expenses, restructuring and other costs/benefits, disposition costs and gain/loss on disposition.

Total segment earnings is defined as the sum of earnings before purchase accounting expenses, restructuring and other costs/benefits, disposition costs, gain/loss on disposition, corporate expenses/other, interest expense, interest income and provision for income taxes for all segments. Total segment earnings margin is defined as total segment earnings divided by revenue.

Adjusted segment EBITDA is defined as segment earnings plus other depreciation and amortization expense, which relates to property, plant, and equipment and intangibles, and excludes amounts related to purchase accounting expenses and restructuring and other costs/benefits. Adjusted segment EBITDA margin is defined as adjusted segment EBITDA divided by revenue.

Management believes the non-GAAP measures above are useful to investors to better understand the Company's ongoing profitability as they will better reflect the Company's core operating results, offer more transparency and facilitate easier comparability to prior and future periods and to its peers.

Free cash flow represents net cash provided by operating activities minus capital expenditures. Free cash flow as a percentage of revenue equals free cash flow divided by revenue. Free cash flow as a percentage of adjusted net earnings equals free cash flow divided by adjusted net earnings. Management believes that free cash flow and free cash flow ratios are important measures of liquidity because they provide management and investors a measurement of cash generated from operations that is available for mandatory payment obligations and investment opportunities, such as funding acquisitions, paying dividends, repaying debt and repurchasing our common stock.

Management believes that reporting organic revenue growth, which excludes the impact of foreign currency exchange rates and the impact of acquisitions and dispositions, provides a useful comparison of our revenue and trends between periods. We do not provide a reconciliation of forward-looking organic revenue to the most directly comparable GAAP financial measure pursuant to the exception provided in Item 10(e)(1)(i)(B) of Regulation S-K because we are not able to provide a meaningful or accurate compilation of reconciling items. This is due to the inherent difficulty in accurately forecasting the timing and amounts of the items that would be excluded from the most directly comparable GAAP financial measure or are out of our control. For the same reasons, we are unable to address the probable significance of unavailable information which may be material.

Performance Measures Definitions

Bookings represent total orders received from customers in the current reporting period and exclude de-bookings related to orders received in prior periods, if any. This metric is an important measure of performance and an indicator of order trends.

Organic bookings represent bookings excluding the impact of foreign currency exchange rates and the impact of acquisitions and dispositions. This metric is an important measure of performance and an indicator of revenue order trends.

We use the above operational metrics in monitoring the performance of the business. We believe the operational metrics are useful to investors and other users of our financial information in assessing the performance of our segments.

Investor Contact:

Media Contact:

Jack Dickens

Adrian Sakowicz

Senior Director - Investor Relations

Vice President - Communications

(630) 743-2566

(630) 743-5039

jdickens@dovercorp.com

asakowicz@dovercorp.com

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/dover-reports-first-quarter-2024-results-302126870.html

SOURCE Dover