Dover Reports Fourth Quarter and Full Year 2023 Results

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Dover Reports Fourth Quarter and Full Year 2023 Results

DOWNERS GROVE, Ill., Feb. 1, 2024 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the fourth quarter and full year ended December 31, 2023. All comparisons are to the comparable period of the prior fiscal year, unless otherwise noted.



Three Months Ended December 31,


Years Ended December 31,

($ in millions, except per share data)


2023


2022


% Change


2023


2022


% Change

U.S. GAAP

Revenue


$       2,106


$       2,139


(2) %


$       8,438


$       8,508


(1) %

Net earnings 


296


264


12 %


1,057


1,065


(1) %

Diluted EPS 


2.11


1.87


13 %


7.52


7.42


1 %














Non-GAAP

Organic revenue change






(3) %






(1) %

Adjusted net earnings 1


345


305


13 %


1,237


1,213


2 %

Adjusted diluted EPS


2.45


2.16


13 %


8.80


8.45


4 %

1 Q4 and full year 2023 and 2022 adjusted net earnings exclude after tax purchase accounting expenses, disposition costs and restructuring and other costs. Q4 and full year 2023 include the net income tax benefit of an internal reorganization executed in 2023, and full year 2022 excludes a reduction to income taxes previously recorded related to the Tax Cuts and Jobs Act.

For the quarter ended December 31, 2023, Dover generated revenue of $2.1 billion, a decrease of 2% (-3% organic). GAAP net earnings of $296 million increased 12%, and GAAP diluted EPS of $2.11 was up 13%. On an adjusted basis, net earnings of $345 million increased 13% and adjusted diluted EPS of $2.45 was up 13%.

For the year ended December 31, 2023, Dover generated revenue of $8.4 billion, a decrease of 1% (-1% organic). GAAP net earnings of $1.1 billion decreased 1%, and GAAP diluted EPS of $7.52 was up 1%. On an adjusted basis, net earnings of $1.2 billion increased 2%, and adjusted diluted EPS of $8.80 was up 4%.

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, "The fourth quarter market conditions and our business posture were in line with our forecasts. In the end markets where secular demand trends inflected positively, such as CO2 refrigeration systems, waste handling and precision components, we were able to capitalize on the market conditions and drive margin mix higher benefiting the consolidated portfolio in the quarter. We reduced production volumes in certain product lines in line with our mid-year forecasts in response to destocking trends that resulted from lead time normalization and higher inventory carrying costs driven by interest rate increases. We believe these proactive actions balanced channel inventories in the majority of our markets with forecasted demand for 2024. This operating posture drove an exemplary operating cash flow performance in the quarter and positions us to match production performance with prevailing demand in the coming year.   

"Our solid operational execution was complemented by active portfolio enhancement in line with the priorities we reiterated at our investor day last March. In the past few months we completed several accretive and synergistic bolt-on acquisitions that improve our revenue mix with high-growth recurring and software revenue streams. We anticipate completing the De-Sta-Co sale by the end of the first quarter. Bolstered by our proactive working capital management and margin enhancement, we enter 2024 with a strong balance sheet and ample capacity to execute against a strong acquisition pipeline and pursue opportunistic capital return strategies, as we continue our portfolio enhancement strategy.

"We have a constructive outlook for 2024. We expect demand conditions to progressively improve from the fourth quarter exit rate through the year on solid underlying end markets across most of the portfolio, supported by the recent positive year-over-year order momentum. There is significant runway in our margin improvement plan with numerous cost and performance levers available to continue driving strong margin conversion. With this backdrop, we are confident in our ability to continue to deliver long-term value creation for our shareholders through a combination of accretive top line growth, capital allocation, and portfolio enhancement."

FULL YEAR 2024 GUIDANCE:

In 2024, Dover expects to generate GAAP EPS in the range of $7.90 to $8.10 (adjusted EPS of $8.95 to $9.15), based on full year revenue growth of 2% to 4% (1% to 3% on an organic basis).

CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its fourth quarter and full year 2023 results at 9:30 A.M. Eastern Time (8:30 A.M. Central Time) on Thursday, February 1, 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 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, 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, 2022, 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 - FOURTH QUARTER AND FULL YEAR 2023


DOVER CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

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



Three Months Ended December 31,


Years Ended December 31,


2023


2022


2023


2022

Revenue

$          2,105,757


$            2,139,181


$           8,438,134


$           8,508,088

Cost of goods and services

1,319,994


1,372,852


5,353,501


5,444,532

Gross profit

785,763


766,329


3,084,633


3,063,556

Selling, general and administrative expenses

431,291


413,611


1,718,290


1,684,226

Operating earnings

354,472


352,718


1,366,343


1,379,330

Interest expense

30,898


33,126


131,305


116,456

Interest income

(4,944)


(1,462)


(13,496)


(4,430)

Other income, net

(713)


(2,359)


(21,472)


(20,201)

Earnings before provision for income taxes

329,231


323,413


1,270,006


1,287,505

Provision for income taxes

32,969


59,834


213,178


222,129

Net earnings

$              296,262


$               263,579


$           1,056,828


$           1,065,376









Net earnings per share:








Basic

$                    2.12


$                      1.88


$                     7.56


$                     7.47

Diluted

$                    2.11


$                      1.87


$                     7.52


$                     7.42

Weighted average shares outstanding:








Basic

139,893


140,343


139,848


142,681

Diluted

140,586


141,168


140,599


143,595









Dividends paid per common share

$                    0.51


$                    0.505


$                     2.03


$                     2.01









* Per share data may be impacted by rounding.








 

DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)



2023


2022


Q1

Q2

Q3

Q4

FY 2023


Q1

Q2

Q3

Q4

FY 2022

REVENUE












Engineered Products

$    497,549

$   473,687

$   504,271

$    529,080

$    2,004,587


$   487,647

$    514,436

$   516,501

$   525,048

$   2,043,632

Clean Energy & Fueling

430,729

441,166

466,959

449,423

1,788,277


458,395

494,075

464,022

462,015

1,878,507

Imaging & Identification

283,091

271,932

276,179

285,530

1,116,732


272,255

275,951

282,371

293,238

1,123,815

Pumps & Process Solutions

413,881

465,626

431,373

444,811

1,755,691


435,195

441,127

433,558

418,355

1,728,235

Climate & Sustainability Technologies

455,325

449,001

475,911

398,345

1,778,582


399,078

434,164

462,671

441,811

1,737,724

Intersegment eliminations

(1,552)

(1,326)

(1,425)

(1,432)

(5,735)


(669)

(1,038)

(832)

(1,286)

(3,825)

Total consolidated revenue

$ 2,079,023

$  2,100,086

$  2,153,268

$ 2,105,757

$    8,438,134


$  2,051,901

$ 2,158,715

$  2,158,291

$  2,139,181

$   8,508,088













NET EARNINGS












Segment Earnings:












Engineered Products

$      84,275

$     73,076

$   101,610

$    118,464

$       377,425


$     71,130

$      81,671

$     90,145

$   103,573

$      346,519

Clean Energy & Fueling

73,605

83,616

92,483

78,900

328,604


72,962

99,034

90,208

90,789

352,993

Imaging & Identification

68,315

61,336

70,316

72,545

272,512


58,598

61,392

74,477

73,617

268,084

Pumps & Process Solutions

115,244

129,337

117,907

121,917

484,405


146,617

138,048

128,573

119,780

533,018

Climate & Sustainability Technologies

73,778

76,074

84,060

71,468

305,380


53,609

64,181

75,190

61,504

254,484

Total segment earnings

415,217

423,439

466,376

463,294

1,768,326


402,916

444,326

458,593

449,263

1,755,098

Purchase accounting

expenses 1

42,679

40,200

40,320

41,744

164,943


53,286

47,019

40,526

40,272

181,103

Restructuring and other costs 2

14,053

18,143

12,327

19,150

63,673


10,552

7,944

8,613

11,881

38,990

Disposition costs 3

1,302

1,302


194

194

Corporate expense

 / other 4

40,072

33,922

30,686

45,913

150,593


37,404

27,967

27,876

42,033

135,280

Interest expense

34,214

33,804

32,389

30,898

131,305


26,552

26,989

29,789

33,126

116,456

Interest income

(2,091)

(2,653)

(3,808)

(4,944)

(13,496)


(775)

(949)

(1,244)

(1,462)

(4,430)

Earnings before provision for income taxes

286,290

300,023

354,462

329,231

1,270,006


275,703

335,356

353,033

323,413

1,287,505

Provision for income taxes 5

57,716

57,784

64,709

32,969

213,178


49,550

45,738

67,007

59,834

222,129

Net earnings

$    228,574

$   242,239

$   289,753

$    296,262

$    1,056,828


$   226,153

$    289,618

$   286,026

$   263,579

$   1,065,376













SEGMENT EARNINGS MARGIN










Engineered Products

16.9 %

15.4 %

20.1 %

22.4 %

18.8 %


14.6 %

15.9 %

17.5 %

19.7 %

17.0 %

Clean Energy & Fueling

17.1 %

19.0 %

19.8 %

17.6 %

18.4 %


15.9 %

20.0 %

19.4 %

19.7 %

18.8 %

Imaging & Identification

24.1 %

22.6 %

25.5 %

25.4 %

24.4 %


21.5 %

22.2 %

26.4 %

25.1 %

23.9 %

Pumps & Process Solutions

27.8 %

27.8 %

27.3 %

27.4 %

27.6 %


33.7 %

31.3 %

29.7 %

28.6 %

30.8 %

Climate & Sustainability Technologies

16.2 %

16.9 %

17.7 %

17.9 %

17.2 %


13.4 %

14.8 %

16.3 %

13.9 %

14.6 %

Total segment earnings margin

20.0 %

20.2 %

21.7 %

22.0 %

21.0 %


19.6 %

20.6 %

21.2 %

21.0 %

20.6 %













1 Purchase accounting expenses are primarily comprised of amortization of intangible assets and charges related to fair value step-ups for acquired inventory sold during the period.

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 which is expected to close in Q1 2024. Q1 and FY 2022 represents working capital adjustments related to the disposition of Unified Brands and the Race Winning Brands equity method investment in Q4 2021.

4 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.

5 Q4 and FY 2023 include the net income tax benefit of internal reorganizations executed in 2023. Q2 and FY 2022 include a reduction to income taxes previously recorded related to the Tax Cuts and Jobs Act.

 

DOVER CORPORATION

QUARTERLY EARNINGS PER SHARE

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


Earnings Per Share













2023


2022


Q1

Q2

Q3

Q4

FY 2023


Q1

Q2

Q3

Q4

FY 2022

Net earnings per share:












Basic

$      1.64

$      1.73

$      2.07

$      2.12

$          7.56


$      1.57

$      2.01

$      2.01

$      1.88

$         7.47

Diluted

$      1.63

$      1.72

$      2.06

$      2.11

$          7.52


$      1.56

$      2.00

$      2.00

$      1.87

$         7.42













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

Net earnings

$  228,574

$  242,239

$  289,753

$  296,262

$  1,056,828


$  226,153

$  289,618

$  286,026

$  263,579

$  1,065,376













Weighted average shares outstanding:










Basic

139,757

139,862

139,878

139,893

139,848


144,087

143,832

142,506

140,343

142,681

Diluted

140,616

140,578

140,615

140,586

140,599


145,329

144,669

143,257

141,168

143,595













* Per share data may be impacted by rounding.



 

DOVER CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)(in thousands)



December 31, 2023


December 31, 2022

Assets:




Cash and cash equivalents

$                        398,561


$                        380,868

Receivables, net

1,432,040


1,516,871

Inventories, net

1,225,452


1,366,608

Prepaid and other current assets

141,538


159,118

Assets held for sale

192,644


Property, plant and equipment, net

1,031,816


1,004,825

Goodwill

4,881,687


4,669,494

Intangible assets, net

1,483,913


1,333,735

Other assets and deferred charges

560,862


465,000

Total assets

$                  11,348,513


$                  10,896,519





Liabilities and Stockholders' Equity:




Short-term borrowings

$                        468,282


$                        735,772

Payables, accrued expenses and other current liabilities

1,880,920


2,037,502

Liabilities held for sale

64,568


Deferred taxes and other non-current liabilities

836,379


894,366

Long-term debt

2,991,759


2,942,513

Stockholders' equity

5,106,605


4,286,366

Total liabilities and stockholders' equity

$                  11,348,513


$                  10,896,519

 

DOVER CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)(in thousands)



Years Ended December 31,


2023


2022

Operating activities:




Net earnings

$                 1,056,828


$                1,065,376

Depreciation and amortization

317,463


307,538

Stock-based compensation

31,465


30,821

Contributions to employee benefit plans

(16,098)


(12,890)

Net change in assets and liabilities

(53,313)


(585,121)

Net cash provided by operating activities

1,336,345


805,724





Investing activities:




Additions to property, plant and equipment

(192,592)


(220,962)

Acquisitions, net of cash and cash equivalents acquired

(533,623)


(312,855)

Proceeds from the sale of property, plant and equipment

4,234


6,061

Other

(4,649)


(13,168)

Net cash used in investing activities

(726,630)


(540,924)





Financing activities:




Change in commercial paper and other short-term borrowings, net

(267,490)


629,891

Dividends paid to stockholders

(284,297)


(287,551)

Repurchase of common stock, including accelerated share repurchase program


(585,000)

Payments to settle employee tax obligations on exercise of share-based awards

(12,137)


(14,637)

Other

(4,132)


(2,968)

Net cash used in financing activities

(568,056)


(260,265)





Effect of exchange rate changes on cash and cash equivalents

(6,666)


(9,171)





Net increase (decrease) in cash and cash equivalents, including cash held for sale

34,993


(4,636)

Cash and cash equivalents at beginning of year

380,868


385,504

Cash and cash equivalents, including cash held for sale at end of year

$                    415,861


$                    380,868



Years Ended December 31,


2023


2022

Cash and cash equivalents

$                    398,561


$                    380,868

Cash and cash equivalents held for sale

17,300


Cash and cash equivalents, including cash held for sale

$                    415,861


$                    380,868

 

DOVER CORPORATION

QUARTERLY ADJUSTED SEGMENT EBITDA (NON-GAAP)

(unaudited)(in thousands)


Non-GAAP Reconciliations



2023


2022


Q1

Q2

Q3

Q4

FY 2023


Q1

Q2

Q3

Q4

FY 2022

ADJUSTED SEGMENT EBITDA
























Engineered Products:












Segment earnings

$   84,275

$   73,076

$ 101,610

$ 118,464

$   377,425


$  71,130

$  81,671

$  90,145

$ 103,573

$   346,519

Other depreciation and amortization 1

7,070

7,300

7,306

6,397

28,073


7,274

6,799

6,819

6,853

27,745

Adjusted segment EBITDA 2

91,345

80,376

108,916

124,861

405,498


78,404

88,470

96,964

110,426

374,264

Adjusted segment EBITDA margin 2

18.4 %

17.0 %

21.6 %

23.6 %

20.2 %


16.1 %

17.2 %

18.8 %

21.0 %

18.3 %













Clean Energy & Fueling:












Segment earnings

$   73,605

$   83,616

$   92,483

$   78,900

$   328,604


$  72,962

$  99,034

$  90,208

$  90,789

$   352,993

Other depreciation and amortization 1

7,046

7,541

7,686

7,844

30,117


8,466

6,533

6,893

6,923

28,815

Adjusted segment EBITDA 2

80,651

91,157

100,169

86,744

358,721


81,428

105,567

97,101

97,712

381,808

Adjusted segment EBITDA margin 2

18.7 %

20.7 %

21.5 %

19.3 %

20.1 %


17.8 %

21.4 %

20.9 %

21.1 %

20.3 %













Imaging & Identification:












Segment earnings

$   68,315

$   61,336

$   70,316

$   72,545

$   272,512


$  58,598

$  61,392

$  74,477

$  73,617

$   268,084

Other depreciation and amortization 1

3,394

3,745

3,972

4,182

15,293


3,497

3,496

3,372

3,820

14,185

Adjusted segment EBITDA 2

71,709

65,081

74,288

76,727

287,805


62,095

64,888

77,849

77,437

282,269

Adjusted segment EBITDA margin 2

25.3 %

23.9 %

26.9 %

26.9 %

25.8 %


22.8 %

23.5 %

27.6 %

26.4 %

25.1 %













Pumps & Process Solutions:












Segment earnings

$ 115,244

$ 129,337

$ 117,907

$ 121,917

$   484,405


$  146,617

$  138,048

$  128,573

$ 119,780

$   533,018

Other depreciation and amortization 1

10,939

11,609

12,052

11,744

46,344


9,922

9,787

10,137

10,993

40,839

Adjusted segment EBITDA 2

126,183

140,946

129,959

133,661

530,749


156,539

147,835

138,710

130,773

573,857

Adjusted segment EBITDA margin 2

30.5 %

30.3 %

30.1 %

30.0 %

30.2 %


36.0 %

33.5 %

32.0 %

31.3 %

33.2 %













Climate & Sustainability Technologies:











Segment earnings

$   73,778

$   76,074

$   84,060

$   71,468

$   305,380


$  53,609

$  64,181

$  75,190

$  61,504

$   254,484

Other depreciation and amortization 1

6,624

6,895

6,954

7,084

27,557


6,495

6,443

6,736

6,530

26,204

Adjusted segment EBITDA 2

80,402

82,969

91,014

78,552

332,937


60,104

70,624

81,926

68,034

280,688

Adjusted segment EBITDA margin 2

17.7 %

18.5 %

19.1 %

19.7 %

18.7 %


15.1 %

16.3 %

17.7 %

15.4 %

16.2 %













Total Segments:












Total segment earnings 2, 3

$ 415,217

$ 423,439

$ 466,376

$ 463,294

$  1,768,326


$  402,916

$  444,326

$  458,593

$ 449,263

$  1,755,098

Other depreciation and amortization 1

35,073

37,090

37,970

37,251

147,384


35,654

33,058

33,957

35,119

137,788

Total Adjusted segment EBITDA 2

450,290

460,529

504,346

500,545

1,915,710


438,570

477,384

492,550

484,382

1,892,886

Total Adjusted segment EBITDA margin 2

21.7 %

21.9 %

23.4 %

23.8 %

22.7 %


21.4 %

22.1 %

22.8 %

22.6 %

22.2 %













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 ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE (NON-GAAP)

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


Non-GAAP Reconciliations



2023


2022


Q1

Q2

Q3

Q4

FY 2023


Q1

Q2

Q3

Q4

FY 2022

Adjusted net earnings:












Net earnings

$  228,574

$  242,239

$ 289,753

$ 296,262

$  1,056,828


$  226,153

$  289,618

$  286,026

$  263,579

$ 1,065,376

Purchase accounting expenses, pre-tax 1

42,679

40,200

40,320

41,744

164,943


53,286

47,019

40,526

40,272

181,103

Purchase accounting expenses, tax impact 2

(9,599)

(9,012)

(8,966)

(9,143)

(36,720)


(12,538)

(11,013)

(9,494)

(8,689)

(41,734)

Restructuring and other costs, pre-tax 3

14,053

18,143

12,327

19,150

63,673


10,552

7,944

8,613

11,881

38,990

Restructuring and other costs, tax impact 2

(2,990)

(3,665)

(2,556)

(3,970)

(13,181)


(2,191)

(1,803)

(1,921)

(2,311)

(8,226)

Disposition costs, pre-tax 4

1,302

1,302


194

194

Disposition costs, tax impact 2

(270)

(270)


(27)

(27)

Tax Cuts and Jobs Act 5


(22,579)

(22,579)

Adjusted net earnings

$  272,717

$  287,905

$ 330,878

$ 345,075

$  1,236,575


$  275,429

$  309,186

$  323,750

$  304,732

$ 1,213,097













Adjusted diluted net earnings per share:










Diluted net earnings per share

$       1.63

$       1.72

$       2.06

$       2.11

$          7.52


$       1.56

$       2.00

$       2.00

$       1.87

$           7.42

Purchase accounting expenses, pre-tax 1

0.30

0.29

0.29

0.30

1.18


0.37

0.33

0.28

0.29

1.27

Purchase accounting expenses, tax impact 2

(0.07)

(0.06)

(0.06)

(0.07)

(0.26)


(0.09)

(0.08)

(0.07)

(0.06)

(0.30)

Restructuring and other costs, pre-tax 3

0.10

0.13

0.09

0.14

0.46


0.07

0.05

0.06

0.08

0.26

Restructuring and other costs, tax impact 2

(0.02)

(0.03)

(0.02)

(0.03)

(0.10)


(0.02)

(0.01)

(0.01)

(0.02)

(0.06)

Disposition costs, pre-tax 4

0.01

0.01


Disposition costs, tax impact 2


Tax Cuts and Jobs Act 5


(0.16)

(0.16)

Adjusted diluted net earnings per share

$       1.94

$       2.05

$       2.35

$       2.45

$          8.80


$       1.90

$       2.14

$       2.26

$       2.16

$           8.45













1 Purchase accounting expenses are primarily comprised of amortization of intangible assets and charges related to fair value step-ups for acquired inventory sold during the period. Q1, Q2, and FY 2022 include $12,487, $7,158, and $19,869 of amortization of inventory step-up, respectively, 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 Restructuring and other costs relate to actions taken for headcount reductions, facility consolidations and site closures, product line exits, and other asset charges. Q3 and FY 2023 include $3,302 of non-cash asset impairment charges for our Climate & Sustainability Technologies segment. Q1 and FY 2022 include $5,457 of non-cash foreign currency translation losses reclassified to earnings included within restructuring and other costs and $2,117 related to write-off of assets due to an exit from certain Latin America countries for our Climate & Sustainability Technologies segment.

4 Q4 and FY 2023 disposition costs relate to the sale of De-Sta-Co which is expected to close in Q1 2024. Q1 and FY 2022 represents working capital adjustments related to the disposition of Unified Brands and the Race Winning Brands equity method investment in Q4 2021.

5 Q2 and FY 2022 represent a reduction to income taxes previously recorded related to the Tax Cuts and Jobs Act.

* Per share data and totals may be impacted by rounding.

 

DOVER CORPORATION

QUARTERLY NET EARNINGS TO ADJUSTED SEGMENT EBITDA RECONCILIATION (NON-GAAP)

(unaudited)(in thousands)


Non-GAAP Reconciliations



2023


2022


Q1

Q2

Q3

Q4

FY 2023


Q1

Q2

Q3

Q4

FY 2022

Net earnings

$  228,574

$  242,239

$  289,753

$  296,262

$  1,056,828


$  226,153

$  289,618

$  286,026

$  263,579

$  1,065,376

Provision for income taxes 1

57,716

57,784

64,709

32,969

213,178


49,550

45,738

67,007

59,834

222,129

Earnings before provision for income taxes

286,290

300,023

354,462

329,231

1,270,006


275,703

335,356

353,033

323,413

1,287,505

Interest income

(2,091)

(2,653)

(3,808)

(4,944)

(13,496)


(775)

(949)

(1,244)

(1,462)

(4,430)

Interest expense

34,214

33,804

32,389

30,898

131,305


26,552

26,989

29,789

33,126

116,456

Corporate expense / other 2

40,072

33,922

30,686

45,913

150,593


37,404

27,967

27,876

42,033

135,280

Disposition costs 3

1,302

1,302


194

194

Restructuring and other costs 4

14,053

18,143

12,327

19,150

63,673


10,552

7,944

8,613

11,881

38,990

Purchase accounting expenses 5

42,679

40,200

40,320

41,744

164,943


53,286

47,019

40,526

40,272

181,103

Total segment earnings 6

415,217

423,439

466,376

463,294

1,768,326


402,916

444,326

458,593

449,263

1,755,098

Add: Other depreciation and amortization 7

35,073

37,090

37,970

37,251

147,384


35,654

33,058

33,957

35,119

137,788

Total adjusted segment EBITDA 6

$  450,290

$  460,529

$  504,346

$  500,545

$  1,915,710


$  438,570

$  477,384

$  492,550

$  484,382

$  1,892,886













1 Q4 and FY 2023 include the net income tax benefit of internal reorganizations executed in 2023. Q2 and FY 2022 include a reduction to income taxes previously recorded related to the Tax Cuts and Jobs Act.

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 which is expected to close in Q1 2024. Q1 and FY 2022 represents working capital adjustments related to the disposition of Unified Brands and the Race Winning Brands equity method investment in Q4 2021.

4 Restructuring and other costs relate to actions taken for headcount reductions, facility consolidations and site closures, product line exits, and other asset charges.

5 Purchase accounting expenses are primarily comprised of amortization of intangible assets and charges related to fair value step-ups for acquired inventory sold during the period.

6 Refer to Non-GAAP Disclosures section for definition.

7 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



2023


Q1


Q2


Q3


Q4


Q4 YTD

Organic










Engineered Products

3.4 %


(7.7) %


(3.0) %


— %


(1.9) %

Clean Energy & Fueling

(2.6) %


(9.3) %


(0.2) %


(3.5) %


(4.0) %

Imaging & Identification

8.2 %


0.3 %


(3.6) %


(3.5) %


0.2 %

Pumps & Process Solutions

(7.1) %


0.9 %


(7.3) %


0.5 %


(3.3) %

Climate & Sustainability Technologies

16.2 %


4.0 %


1.8 %


(10.9) %


2.4 %

Total Organic

2.9 %


(3.0) %


(2.4) %


(3.4) %


(1.5) %

Acquisitions

0.9 %


0.9 %


1.0 %


0.9 %


0.9 %

Currency translation

(2.5) %


(0.6) %


1.2 %


0.9 %


(0.2) %

Total*

1.3 %


(2.7) %


(0.2) %


(1.6) %


(0.8) %


* Totals may be impacted by rounding.



2023


Q1


Q2


Q3


Q4


Q4 YTD

Organic










United States

2.6 %


(8.6) %


(7.3) %


1.7 %


(3.0) %

Other Americas

16.8 %


13.9 %


13.1 %


(22.5) %


3.4 %

Europe

(0.3) %


(0.9) %


(5.2) %


(16.1) %


(5.7) %

Asia 

(3.9) %


1.9 %


(3.4) %


4.9 %


(0.2) %

Other

20.8 %


33.0 %


72.8 %


26.8 %


38.5 %

Total Organic

2.9 %


(3.0) %


(2.4) %


(3.4) %


(1.5) %

Acquisitions

0.9 %


0.9 %


1.0 %


0.9 %


0.9 %

Currency translation

(2.5) %


(0.6) %


1.2 %


0.9 %


(0.2) %

Total*

1.3 %


(2.7) %


(0.2) %


(1.6) %


(0.8) %


* Totals may be impacted by rounding.

 

Adjusted EPS Guidance Reconciliation


2023 Actual


2024 Guidance

Adjusted net earnings per share*:




Net earnings (GAAP)

$            7.52


$7.90 - $8.10

Purchase accounting expenses, net

0.92


0.98

Restructuring and other costs, net

0.36


0.07

Adjusted net earnings per share (Non-GAAP)

$            8.80


$8.95 - $9.15


* Per share data and totals may be impacted by rounding.

 

DOVER CORPORATION

PERFORMANCE MEASURES

(unaudited)(in thousands)



2023


2022


Q1

Q2

Q3

Q4

FY 2023


Q1

Q2

Q3

Q4

FY 2022

BOOKINGS
























Engineered Products

$  536,472

$  489,131

$  576,641

$  494,528

$ 2,096,772


$  541,035

$  452,668

$  512,374

$  498,249

$ 2,004,326

Clean Energy & Fueling

454,526

440,137

449,663

401,195

1,745,521


501,491

487,861

432,259

399,414

1,821,025

Imaging & Identification

290,712

262,092

271,113

297,312

1,121,229


307,104

292,136

281,789

273,170

1,154,199

Pumps & Process Solutions

464,297

394,317

363,111

455,390

1,677,115


459,790

471,693

415,253

362,468

1,709,204

Climate & Sustainability Technologies1

371,643

310,911

340,474

325,625

1,348,653


430,465

458,181

404,150

377,120

1,669,916

Intersegment eliminations

(1,530)

(1,918)

(849)

(2,125)

(6,422)


(2,295)

(1,207)

(423)

(1,391)

(5,316)

Total consolidated bookings

$  2,116,120

$  1,894,670

$  2,000,153

$  1,971,925

$ 7,982,868


$  2,237,590

$  2,161,332

$  2,045,402

$  1,909,030

$ 8,353,354

1 For comparability, prior periods were revised to exclude non-binding orders and previously disclosed de-bookings. Refer to Performance Measures Definitions section.

 


2023


Q1


Q2


Q3


Q4


Q4 YTD

BOOKINGS GROWTH FACTORS




















Organic










Engineered Products

0.9 %


8.4 %


11.6 %


(1.6) %


4.7 %

Clean Energy & Fueling

(6.1) %


(8.4) %


3.5 %


(0.1) %


(3.1) %

Imaging & Identification

(1.8) %


(8.5) %


(5.4) %


7.7 %


(2.1) %

Pumps & Process Solutions

(1.2) %


(19.4) %


(15.6) %


22.6 %


(4.7) %

Climate & Sustainability Technologies1

(11.6) %


(31.5) %


(16.8) %


(14.8) %


(19.1) %

Total Organic

(3.9) %


(12.2) %


(3.5) %


2.0 %


(4.6) %

Acquisitions

1.0 %


0.7 %


0.3 %


0.4 %


0.6 %

Currency translation

(2.5) %


(0.8) %


1.0 %


0.9 %


(0.4) %

Total*

(5.4) %


(12.3) %


(2.2) %


3.3 %


(4.4) %

* Totals may be impacted by rounding.










1 For comparability, prior periods were revised to exclude non-binding orders and previously disclosed de-bookings. Refer to Performance Measures Definitions section.

ADDITIONAL INFORMATION
FOURTH QUARTER AND FULL YEAR 2023
(unaudited)(amounts in thousands except share data and where otherwise indicated)

Acquisitions

During the fourth quarter of 2023, the Company completed the acquisition of FW Murphy Production Controls, LLC, within the Pumps & Process Solutions segment for $526.5 million, subject to customary post-closing adjustments.

For the full year 2023, the Company acquired two businesses in separate transactions for total consideration of $535.3 million, net of cash acquired and including contingent consideration. The businesses were acquired to complement and expand upon existing operations within the Pumps & Process Solutions and Climate & Sustainability Technologies segments. The purchase price allocations for these acquisitions are preliminary and subject to change during the measurement period.

Dispositions

On October 11, 2023 the Company entered into a definitive agreement to sell De-Sta-Co, an operating company within the Engineered Products segment, for approximately $680.0 million enterprise value, subject to customary post-closing adjustments. De-Sta-Co's assets and liabilities are classified as held for sale in the condensed consolidated balance sheets as of December 31, 2023. The transaction is expected to close in Q1 2024, subject to customary closing conditions, including receipt of regulatory approvals.

Restructuring and Other Costs (Benefits)

During the fourth quarter and year ended December 31, 2023, restructuring and other costs (benefits) included restructuring charges of $16.6 million and $50.4 million, respectively, and other costs of $2.5 million and $13.2 million, respectively. The restructuring expenses incurred during the year ended December 31, 2023 were primarily related to headcount reductions and exit costs in the Clean Energy & Fueling, Engineered Products and Pumps & Process Solutions segments. These restructuring programs were initiated in 2022 and 2023 and were undertaken in light of current market conditions. Other costs (benefits) were primarily due to an asset impairment in our Climate & Sustainability Technologies segment and product line rationalization and footprint reduction in our Clean Energy & Fueling segment.

($ in millions)

2023


2022


Q4


FY


Q4


FY

Engineered Products

$                3.5


$                9.8


$                0.5


$                6.5

Clean Energy & Fueling

5.6


24.7


4.8


9.6

Imaging & Identification

4.8


7.1


2.9


6.4

Pumps & Process Solutions

1.5


7.9


2.0