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Dover Reports Full Year Diluted Earnings Per Share From Continuing Operations Of $4.61 ($5.93 On An Adjusted Basis); Provides 2020 Guidance
Three Months Ended |
Twelve Months Ended |
|||||||||||
($ in millions, except per share data) |
2019 |
2018 |
% |
2019 |
2018 |
% |
||||||
U.S. GAAP from continuing operations |
||||||||||||
Revenue |
$ 1,776 |
$ 1,809 |
(1.8)% |
$ 7,136 |
$ 6,992 |
2.1 % |
||||||
Earnings |
168 |
158 |
6.4 % |
678 |
591 |
14.7 % |
||||||
Diluted EPS |
1.15 |
1.07 |
7.5 % |
4.61 |
3.89 |
18.5 % |
||||||
Non-GAAP from continuing operations |
||||||||||||
Organic revenue growth |
(1.1)% |
3.8 % |
||||||||||
Adjusted earnings 1 |
226 |
211 |
7.0 % |
872 |
756 |
15.4 % |
||||||
Adjusted diluted EPS |
1.54 |
1.43 |
7.7 % |
5.93 |
4.97 |
19.3 % |
||||||
1 For the three months ended December 31, 2019 and 2018, adjusted earnings excluded after tax acquisition-related amortization costs of $25.1 million and $26.3 million, respectively, and rightsizing and other costs of $14.2 million and $29.6 million, respectively. In addition, the three months ended December 31, 2019, also excluded a $18.4 million loss on extinguishment of debt, and the three months ended December 31, 2018 excluded a $2.8 million net benefit from the Tax Cuts & Jobs Act. |
For the quarter ended
For the full year ended
A full reconciliation between GAAP and adjusted measures is included as an exhibit herein.
MANAGEMENT COMMENTARY:
Dover's President and Chief Executive Officer,
"During the fourth quarter, our Fueling Solutions segment grew despite a challenging comparable quarter in 2018, driven by strong global demand, most notably in
"The Imaging & Identification segment declined slightly in the quarter, a result of continued slower marking & coding activity in
"Overall, Dover delivered strong results for the full year 2019 despite an uncertain economic backdrop. Revenue growth was healthy across a majority of the portfolio and our businesses converted it well into earnings. Our strong operational execution delivered a significant increase in comparable cash flow and was complemented by value-creating and disciplined capital allocation, including large capital projects focused on growth and productivity, several attractive bolt-on acquisitions, and opportunistic share repurchases.
"As we enter 2020, most markets remain constructive. Order backlog is up year-over-year in four out of five segments, we are progressing well on multiple in-flight cost and productivity initiatives, and our M&A pipeline remains active. We are well-positioned to deliver top-line growth, margin expansion and solid EPS accretion in 2020, as outlined in our September investor meeting. Our strategy remains unchanged for 2020: drive value-creation through sustained growth, continued profitability improvement, strong cash flow and smart organic and inorganic capital deployment."
FULL YEAR 2020 GUIDANCE:
In 2020, Dover expects to generate GAAP EPS in the range of
SUBSEQUENT EVENTS:
On
On
CONFERENCE CALL INFORMATION:
Dover will host a webcast and conference call to discuss its fourth quarter and full year 2019 results and 2020 guidance at
ABOUT DOVER:
Dover is a diversified global manufacturer with annual revenue of over
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, 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
INVESTOR SUPPLEMENT - FOURTH QUARTER AND FULL YEAR 2019
DOVER CORPORATION |
|||||
Three Months Ended |
Years Ended December 31, |
||||
2019 |
2018 |
2019 |
2018 |
||
Revenue |
$ 1,775,589 |
$ 1,808,950 |
$ 7,136,397 |
$ 6,992,118 |
|
Cost of goods and services |
1,124,274 |
1,163,979 |
4,515,459 |
4,432,562 |
|
Gross profit |
651,315 |
644,971 |
2,620,938 |
2,559,556 |
|
Selling, general, and administrative expenses |
403,223 |
426,198 |
1,599,098 |
1,716,444 |
|
Loss on assets held for sale |
— |
— |
46,946 |
— |
|
Operating earnings |
248,092 |
218,773 |
974,894 |
843,112 |
|
Interest expense |
30,846 |
32,015 |
125,818 |
130,972 |
|
Interest income |
(1,428) |
(2,201) |
(4,526) |
(8,881) |
|
Loss on extinguishment of debt |
23,543 |
— |
23,543 |
— |
|
Other (income) loss, net |
(1,891) |
2,284 |
(12,950) |
(4,357) |
|
Earnings before provision for income taxes |
197,022 |
186,675 |
843,009 |
725,378 |
|
Provision for income taxes |
28,900 |
28,700 |
165,091 |
134,233 |
|
Earnings from continuing operations |
168,122 |
157,975 |
677,918 |
591,145 |
|
Loss from discontinued operations, net |
— |
(16,406) |
— |
(20,878) |
|
Net earnings |
$ 168,122 |
$ 141,569 |
$ 677,918 |
$ 570,267 |
|
Basic earnings (loss) per share*: |
|||||
Earnings from continuing operations |
$ 1.16 |
$ 1.08 |
$ 4.67 |
$ 3.94 |
|
Loss from discontinued operations, net |
— |
(0.11) |
— |
(0.14) |
|
Net earnings |
$ 1.16 |
$ 0.97 |
$ 4.67 |
$ 3.80 |
|
Weighted average shares outstanding |
144,966 |
146,007 |
145,198 |
149,874 |
|
Diluted earnings (loss) per common share*: |
|||||
Earnings from continuing operations |
$ 1.15 |
$ 1.07 |
$ 4.61 |
$ 3.89 |
|
Loss from discontinued operations, net |
— |
(0.11) |
— |
(0.14) |
|
Net earnings |
$ 1.15 |
$ 0.96 |
$ 4.61 |
$ 3.75 |
|
Weighted average shares outstanding |
146,790 |
147,940 |
146,992 |
152,133 |
|
Dividends paid per common share |
$ 0.49 |
$ 0.48 |
$ 1.94 |
$ 1.90 |
|
* Per share data may be impacted by rounding. |
DOVER CORPORATION |
||||||||||
2019 |
2018 |
|||||||||
Q1 |
Q2 |
Q3 |
Q4 |
FY |
Q1 |
Q2 |
Q3 |
Q4 |
FY |
|
REVENUE |
||||||||||
Engineered Products |
$ 418,851 |
$ 429,928 |
$ 426,689 |
$ 422,089 |
$ 1,697,557 |
$ 402,980 |
$ 416,552 |
$ 401,243 |
$ 412,372 |
$ 1,633,147 |
Fueling Solutions |
373,050 |
390,586 |
411,769 |
444,772 |
1,620,177 |
319,304 |
363,355 |
367,617 |
415,314 |
1,465,590 |
Imaging & Identification |
268,354 |
266,588 |
275,109 |
274,420 |
1,084,471 |
268,654 |
286,458 |
270,299 |
284,432 |
1,109,843 |
Pumps & Process Solutions |
330,219 |
338,924 |
341,337 |
328,048 |
1,338,528 |
308,840 |
330,337 |
322,506 |
370,210 |
1,331,893 |
Refrigeration & Food Equipment |
334,643 |
385,474 |
370,335 |
306,165 |
1,396,617 |
338,235 |
401,766 |
386,214 |
326,878 |
1,453,093 |
Intra-segment eliminations |
(360) |
(794) |
106 |
95 |
(953) |
(342) |
(374) |
(476) |
(256) |
(1,448) |
Total consolidated revenue |
$ 1,724,757 |
$ 1,810,706 |
$ 1,825,345 |
$ 1,775,589 |
$ 7,136,397 |
$ 1,637,671 |
$ 1,798,094 |
$ 1,747,403 |
$ 1,808,950 |
$ 6,992,118 |
NET EARNINGS |
||||||||||
Segment Earnings: |
||||||||||
Engineered Products |
$ 67,119 |
$ 77,129 |
$ 74,367 |
$ 73,233 |
$ 291,848 |
$ 59,363 |
$ 67,331 |
$ 64,570 |
$ 61,104 |
$ 252,368 |
Fueling Solutions |
37,230 |
52,637 |
68,069 |
73,937 |
231,873 |
22,709 |
35,342 |
40,615 |
53,589 |
152,255 |
Imaging & Identification |
55,955 |
54,641 |
61,655 |
57,233 |
229,484 |
42,703 |
59,318 |
44,144 |
52,737 |
198,902 |
Pumps & Process Solutions 1 |
14,991 |
76,278 |
77,433 |
71,379 |
240,081 |
44,639 |
57,686 |
60,592 |
74,632 |
237,549 |
Refrigeration & Food Equipment |
24,807 |
44,375 |
35,211 |
14,439 |
118,832 |
29,182 |
51,372 |
42,434 |
13,131 |
136,119 |
Total segment earnings (EBIT) |
200,102 |
305,060 |
316,735 |
290,221 |
1,112,118 |
198,596 |
271,049 |
252,355 |
255,193 |
977,193 |
Corporate expense / other 2 |
30,866 |
24,512 |
28,658 |
63,781 |
147,817 |
30,763 |
30,050 |
30,207 |
38,704 |
129,724 |
Interest expense |
31,808 |
31,754 |
31,410 |
30,846 |
125,818 |
35,640 |
32,125 |
31,192 |
32,015 |
130,972 |
Interest income |
(890) |
(945) |
(1,263) |
(1,428) |
(4,526) |
(2,057) |
(2,563) |
(2,060) |
(2,201) |
(8,881) |
Earnings before provision for |
138,318 |
249,739 |
257,930 |
197,022 |
843,009 |
134,250 |
211,437 |
193,016 |
186,675 |
725,378 |
Provision for income taxes |
32,613 |
51,654 |
51,924 |
28,900 |
165,091 |
24,841 |
44,981 |
35,711 |
28,700 |
134,233 |
Earnings from continuing operations |
105,705 |
198,085 |
206,006 |
168,122 |
677,918 |
109,409 |
166,456 |
157,305 |
157,975 |
591,145 |
Earnings (loss) from discontinued |
— |
— |
— |
— |
— |
22,025 |
26,497 |
— |
(16,406) |
(20,878) |
Net earnings |
$105,705 |
$198,085 |
$206,006 |
$168,122 |
$677,918 |
$131,434 |
$139,959 |
$157,305 |
$141,569 |
$570,267 |
SEGMENT MARGIN |
||||||||||
Engineered Products |
16.0 % |
17.9 % |
17.4 % |
17.4 % |
17.2 % |
14.7 % |
16.2 % |
16.1 % |
14.8 % |
15.5 % |
Fueling Solutions |
10.0 % |
13.5 % |
16.5 % |
16.6 % |
14.3 % |
7.1 % |
9.7 % |
11.0 % |
12.9 % |
10.4 % |
Imaging & Identification |
20.9 % |
20.5 % |
22.4 % |
20.9 % |
21.2 % |
15.9 % |
20.7 % |
16.3 % |
18.5 % |
17.9 % |
Pumps & Process Solutions 1 |
4.5 % |
22.5 % |
22.7 % |
21.8 % |
17.9 % |
14.5 % |
17.5 % |
18.8 % |
20.2 % |
17.8 % |
Refrigeration & Food Equipment |
7.4 % |
11.5 % |
9.5 % |
4.7 % |
8.5 % |
8.6 % |
12.8 % |
11.0 % |
4.0 % |
9.4 % |
Total segment operating margin |
11.6 % |
16.8 % |
17.4 % |
16.3 % |
15.6 % |
12.1 % |
15.1 % |
14.4 % |
14.1 % |
14.0 % |
DEPRECIATION AND AMORTIZATION EXPENSE |
||||||||||
Engineered Products |
$ 10,359 |
$ 10,452 |
$ 10,095 |
$ 10,126 |
$ 41,032 |
$ 11,443 |
$ 11,286 |
$ 10,528 |
$ 11,739 |
$ 44,996 |
Fueling Solutions |
17,879 |
18,945 |
18,744 |
19,477 |
75,045 |
17,017 |
17,241 |
16,877 |
17,328 |
68,463 |
Imaging & Identification |
7,435 |
7,413 |
7,360 |
8,322 |
30,530 |
7,797 |
7,916 |
7,675 |
7,494 |
30,882 |
Pumps & Process Solutions 1 |
17,548 |
16,201 |
16,018 |
17,817 |
67,584 |
17,431 |
17,741 |
18,078 |
18,732 |
71,982 |
Refrigeration & Food Equipment |
13,011 |
12,777 |
13,047 |
12,525 |
51,360 |
13,579 |
13,524 |
13,533 |
19,841 |
60,477 |
Corporate |
1,506 |
1,981 |
1,523 |
1,726 |
6,736 |
1,358 |
1,595 |
1,399 |
1,428 |
5,780 |
Total depreciation and amortization |
$ 67,738 |
$ 67,769 |
$ 66,787 |
$ 69,993 |
$ 272,287 |
$ 68,625 |
$ 69,303 |
$ 68,090 |
$ 76,562 |
$ 282,580 |
1 Q1 and FY 2019 include a $46,946 loss on assets held for sale for Finder Pompe S.r.l. ("Finder"). |
||||||||||
2 Q4 and FY 2019 include a $23,543 loss on early extinguishment of debt. |
DOVER CORPORATION |
|||||||||||
Earnings Per Share |
|||||||||||
2019 |
2018 |
||||||||||
Q1 |
Q2 |
Q3 |
Q4 |
FY 2019 |
Q1 |
Q2 |
Q3 |
Q4 |
FY 2018 |
||
Basic earnings (loss) per common share: |
|||||||||||
Continuing operations |
$ 0.73 |
$ 1.36 |
$ 1.42 |
$ 1.16 |
$ 4.67 |
$ 0.71 |
$ 1.10 |
$ 1.07 |
$ 1.08 |
$ 3.94 |
|
Discontinued operations |
— |
— |
— |
— |
— |
0.14 |
(0.17) |
— |
(0.11) |
(0.14) |
|
Net earnings |
$ 0.73 |
$ 1.36 |
$ 1.42 |
$ 1.16 |
$ 4.67 |
$ 0.85 |
$ 0.92 |
1.07 |
$ 0.97 |
$ 3.80 |
|
Diluted earnings (loss) per common share: |
|||||||||||
Continuing operations |
$ 0.72 |
$ 1.35 |
$ 1.40 |
$ 1.15 |
$ 4.61 |
$ 0.70 |
$ 1.08 |
$ 1.05 |
$ 1.07 |
$ 3.89 |
|
Discontinued operations |
— |
— |
— |
— |
— |
0.14 |
(0.17) |
— |
(0.11) |
(0.14) |
|
Net earnings |
$ 0.72 |
$ 1.35 |
$ 1.40 |
$ 1.15 |
$ 4.61 |
$ 0.84 |
$ 0.91 |
$ 1.05 |
$ 0.96 |
$ 3.75 |
|
Net earnings (loss) and weighted average shares used in calculated earnings per share amounts are as follows: |
|||||||||||
Net earnings (loss): |
|||||||||||
Continuing operations |
$105,705 |
$198,085 |
$206,006 |
$168,122 |
$677,918 |
$109,409 |
$166,456 |
$157,305 |
$157,975 |
$591,145 |
|
Discontinued operations |
— |
— |
— |
— |
— |
22,025 |
(26,497) |
— |
(16,406) |
(20,878) |
|
Net earnings |
$105,705 |
$198,085 |
$206,006 |
$168,122 |
$677,918 |
$131,434 |
$139,959 |
$157,305 |
$141,569 |
$570,267 |
|
Weighted average shares outstanding: |
|||||||||||
Basic |
145,087 |
145,366 |
145,372 |
144,966 |
145,198 |
154,520 |
151,744 |
147,344 |
146,007 |
149,874 |
|
Diluted |
146,911 |
147,179 |
147,051 |
146,790 |
146,992 |
157,090 |
153,938 |
149,457 |
147,940 |
152,133 |
|
* Per share data may be impacted by rounding. |
DOVER CORPORATION |
||
December 31, 2019 |
December 31, 2018 |
|
Assets: |
||
Cash and cash equivalents |
$ 397,253 |
$ 396,221 |
Receivables, net of allowances |
1,217,190 |
1,231,859 |
Inventories, net |
806,141 |
748,796 |
Prepaid and other current assets |
127,846 |
126,878 |
Property, plant and equipment, net |
842,318 |
806,497 |
Goodwill |
3,783,347 |
3,677,328 |
Intangible assets, net |
1,055,014 |
1,134,256 |
Other assets and deferred charges |
440,368 |
243,936 |
Total assets |
$ 8,669,477 |
$ 8,365,771 |
Liabilities and Stockholders' Equity: |
||
Notes payable |
$ 84,700 |
$ 220,318 |
Payables and accrued expenses |
1,665,191 |
1,607,103 |
Deferred taxes and other non-current liabilities |
901,210 |
826,024 |
Long-term debt |
2,985,716 |
2,943,660 |
Stockholders' equity |
3,032,660 |
2,768,666 |
Total liabilities and stockholders' equity |
$ 8,669,477 |
$ 8,365,771 |
DOVER CORPORATION |
||
Years Ended December 31, |
||
2019 |
2018 |
|
Operating activities: |
||
Net earnings |
$ 677,918 |
$ 570,267 |
Loss from discontinued operations, net |
— |
20,878 |
Loss on assets held for sale |
46,946 |
— |
Loss on extinguishment of debt |
23,543 |
— |
Depreciation and amortization |
272,287 |
282,580 |
Stock-based compensation |
29,702 |
23,698 |
Contributions to employee benefit plans |
(21,436) |
(25,933) |
Net change in assets and liabilities |
(83,654) |
(82,297) |
Net cash provided by operating activities |
945,306 |
789,193 |
Investing Activities |
||
Additions to property, plant and equipment |
(186,804) |
(170,994) |
Acquisitions (net of cash and cash equivalents acquired) |
(215,687) |
(68,557) |
Proceeds from the sale of property, plant and equipment |
4,168 |
5,908 |
Proceeds from the sale of businesses |
24,218 |
3,937 |
Other |
(10,150) |
(15,774) |
Net cash used in investing activities |
(384,255) |
(245,480) |
Financing Activities |
||
Cash received from Apergy, net of cash distributed |
— |
689,643 |
Change in commercial paper and notes payable, net |
(135,650) |
(10,722) |
Net increase (decrease) in long-term debt |
42,357 |
(350,000) |
Dividends to stockholders |
(282,197) |
(283,570) |
Purchase of common stock |
(143,280) |
(894,977) |
Payments to settle employee tax obligations on exercise |
(37,370) |
(46,254) |
Other |
(1,902) |
(1,958) |
Net cash used in financing activities |
(558,042) |
(897,838) |
Net cash used in discontinued operations |
— |
(14,263) |
Effect of exchange rate changes on cash |
(1,977) |
10,645 |
Net (decrease) increase in cash and cash equivalents |
1,032 |
(357,743) |
Cash and cash equivalents at beginning of period |
396,221 |
753,964 |
Cash and cash equivalents at end of period |
$ 397,253 |
$ 396,221 |
DOVER CORPORATION |
||||||||||
2019 |
2018 |
|||||||||
Q1 |
Q2 |
Q3 |
Q4 |
FY 2019 |
Q1 |
Q2 |
Q3 |
Q4 |
FY 2018 |
|
Adjusted earnings: |
||||||||||
Earnings from continuing operations |
$105,705 |
$198,085 |
$206,006 |
$168,122 |
$677,918 |
$109,409 |
$166,456 |
$157,305 |
$157,975 |
$591,145 |
Acquisition-related amortization, pre- |
35,635 |
34,997 |
34,244 |
33,460 |
138,336 |
38,150 |
38,072 |
34,997 |
35,078 |
$146,297 |
Acquisition-related amortization, tax |
(8,964) |
(8,777) |
(8,624) |
(8,403) |
(34,768) |
(9,716) |
(9,683) |
(8,785) |
(8,817) |
(37,001) |
Rightsizing and other costs, pre-tax 3 |
3,963 |
6,457 |
3,807 |
17,926 |
32,153 |
4,371 |
6,808 |
24,201 |
37,448 |
72,828 |
Rightsizing and other costs, tax |
(861) |
(1,377) |
(806) |
(3,745) |
(6,789) |
(797) |
(1,448) |
(4,477) |
(7,809) |
(14,531) |
Loss on extinguishment of debt, pre- |
— |
— |
— |
23,543 |
23,543 |
— |
— |
— |
— |
— |
Loss on extinguishment of debt, tax |
— |
— |
— |
(5,163) |
(5,163) |
— |
— |
— |
— |
— |
Loss on assets held for sale 5 |
46,946 |
— |
— |
— |
46,946 |
— |
— |
— |
— |
— |
Tax Cuts and Jobs Act 6 |
— |
— |
— |
— |
— |
— |
— |
— |
(2,832) |
(2,832) |
Adjusted earnings from continuing |
$182,424 |
$229,385 |
$234,627 |
$225,740 |
$872,176 |
$141,417 |
$200,205 |
$203,241 |
$211,043 |
$755,906 |
Adjusted diluted earnings per share: |
||||||||||
Diluted earnings per share from |
$ 0.72 |
$ 1.35 |
$ 1.40 |
$ 1.15 |
$ 4.61 |
$ 0.70 |
$ 1.08 |
$ 1.05 |
$ 1.07 |
$ 3.89 |
Acquisition-related amortization, pre- |
0.24 |
0.24 |
0.23 |
0.23 |
0.94 |
0.24 |
0.25 |
0.23 |
0.24 |
0.96 |
Acquisition-related amortization, tax |
(0.06) |
(0.06) |
(0.06) |
(0.06) |
(0.24) |
(0.06) |
(0.06) |
(0.06) |
(0.06) |
(0.24) |
Rightsizing and other costs, pre- |
0.03 |
0.04 |
0.03 |
0.12 |
0.22 |
0.03 |
0.04 |
0.16 |
0.25 |
0.48 |
Rightsizing and other costs, tax |
(0.01) |
(0.01) |
(0.01) |
(0.03) |
(0.06) |
(0.01) |
(0.01) |
(0.03) |
(0.05) |
(0.10) |
Loss on extinguishment of debt, pre- |
— |
— |
— |
0.16 |
0.16 |
— |
— |
— |
— |
— |
Loss on extinguishment of debt, tax |
— |
— |
— |
(0.04) |
(0.04) |
— |
— |
— |
— |
— |
Loss on assets held for sale 5 |
0.32 |
— |
— |
— |
0.32 |
— |
— |
— |
— |
— |
Tax Cuts and Jobs Act 6 |
— |
— |
— |
— |
— |
— |
— |
— |
(0.02) |
(0.02) |
Adjusted diluted earnings per share |
$ 1.24 |
$ 1.56 |
$ 1.60 |
$ 1.54 |
$ 5.93 |
$ 0.90 |
$ 1.30 |
$ 1.36 |
$ 1.43 |
$ 4.97 |
1 Includes amortization on acquisition-related intangible assets and inventory step-up. |
||||||||||
2 Adjustments were tax effected using the statutory tax rates in the applicable jurisdictions or the effective tax rate, where applicable, for each period. |
||||||||||
3 Rightsizing and other costs include actions taken on employee reductions, facility consolidations and site closures, product line exits and other associated asset charges. |
||||||||||
4 Represents a loss on early extinguishment of €300,000 2.125% notes due 2020 and $450,000 4.30% notes due 2021. |
||||||||||
5 Represents a loss on assets held for sale of Finder. Under local law, no tax benefit is realized from the loss on the sale of a wholly-owned business. |
||||||||||
6 2018 tax benefits related to additional Tax Cuts and Jobs Act regulatory guidance covered by SAB 118. |
||||||||||
* 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 |
|||||||||||
2019 |
2018 |
||||||||||
Q1 |
Q2 |
Q3 |
Q4 |
FY 2019 |
Q1 |
Q2 |
Q3 |
Q4 |
FY 2018 |
||
ADJUSTED SEGMENT EBIT AND ADJUSTED EBITDA |
|||||||||||
Engineered Products: |
|||||||||||
Segment earnings (EBIT) |
$ 67,119 |
$ 77,129 |
$ 74,367 |
$ 73,233 |
$ 291,848 |
$ 59,363 |
$ 67,331 |
$ 64,570 |
$ 61,104 |
$ 252,368 |
|
Rightsizing and other costs |
80 |
1,125 |
590 |
1,355 |
3,150 |
463 |
417 |
2,713 |
3,693 |
7,286 |
|
Adjusted EBIT - Segment |
67,199 |
78,254 |
74,957 |
74,588 |
294,998 |
59,826 |
67,748 |
67,283 |
64,797 |
259,654 |
|
Adjusted EBIT % |
16.0 % |
18.2 % |
17.6 % |
17.7 % |
17.4 % |
14.8 % |
16.3 % |
16.8 % |
15.7 % |
15.9 % |
|
Adjusted D&A 2 |
10,359 |
9,855 |
10,095 |
10,126 |
40,435 |
11,443 |
11,286 |
10,528 |
11,230 |
44,487 |
|
Adjusted EBITDA - segment |
$ 77,558 |
$ 88,109 |
$ 85,052 |
$ 84,714 |
$ 335,433 |
$ 71,269 |
$ 79,034 |
$ 77,811 |
$ 76,027 |
$ 304,141 |
|
Adjusted EBITDA % |
18.5 % |
20.5 % |
19.9 % |
20.1 % |
19.8 % |
17.7 % |
19.0 % |
19.4 % |
18.4 % |
18.6 % |
|
Fueling Solutions: |
|||||||||||
Segment earnings (EBIT) |
$ 37,230 |
$ 52,637 |
$ 68,069 |
$ 73,937 |
$ 231,873 |
$ 22,709 |
$ 35,342 |
$ 40,615 |
$ 53,589 |
$ 152,255 |
|
Rightsizing and other costs |
752 |
1,768 |
811 |
1,554 |
4,885 |
1,112 |
1,623 |
5,922 |
6,675 |
15,332 |
|
Adjusted EBIT - Segment |
37,982 |
54,405 |
68,880 |
75,491 |
236,758 |
23,821 |
36,965 |
46,537 |
60,264 |
167,587 |
|
Adjusted EBIT % |
10.2 % |
13.9 % |
16.7 % |
17.0 % |
14.6 % |
7.5 % |
10.2 % |
12.7 % |
14.5 % |
11.4 % |
|
Adjusted D&A 2 |
17,879 |
18,945 |
18,744 |
19,477 |
75,045 |
17,017 |
17,241 |
16,877 |
17,328 |
68,463 |
|
Adjusted EBITDA - segment |
$ 55,861 |
$ 73,350 |
$ 87,624 |
$ 94,968 |
$ 311,803 |
$ 40,838 |
$ 54,206 |
$ 63,414 |
$ 77,592 |
$ 236,050 |
|
Adjusted EBITDA % |
15.0 % |
18.8 % |
21.3 % |
21.4 % |
19.2 % |
12.8 % |
14.9 % |
17.3 % |
18.7 % |
16.1 % |
|
Imaging & Identification: |
|||||||||||
Segment earnings (EBIT) |
$ 55,955 |
$ 54,641 |
$ 61,655 |
$ 57,233 |
$ 229,484 |
$ 42,703 |
$ 59,318 |
$ 44,144 |
$ 52,737 |
$ 198,902 |
|
Rightsizing and other costs |
389 |
1,268 |
301 |
4,392 |
6,350 |
899 |
347 |
7,923 |
3,476 |
12,645 |
|
Adjusted EBIT - Segment |
56,344 |
55,909 |
61,956 |
61,625 |
235,834 |
43,602 |
59,665 |
52,067 |
56,213 |
211,547 |
|
Adjusted EBIT % |
21.0 % |
21.0 % |
22.5 % |
22.5 % |
21.7 % |
16.2 % |
20.8 % |
19.3 % |
19.8 % |
19.1 % |
|
Adjusted D&A 2 |
7,336 |
7,317 |
7,286 |
7,892 |
29,831 |
7,797 |
7,916 |
7,675 |
7,392 |
30,780 |
|
Adjusted EBITDA - segment |
$ 63,680 |
$ 63,226 |
$ 69,242 |
$ 69,517 |
$ 265,665 |
$ 51,399 |
$ 67,581 |
$ 59,742 |
$ 63,605 |
$ 242,327 |
|
Adjusted EBITDA % |
23.7 % |
23.7 % |
25.2 % |
25.3 % |
24.5 % |
19.1 % |
23.6 % |
22.1 % |
22.4 % |
21.8 % |
|
Pumps & Process Solutions: |
|||||||||||
Segment earnings (EBIT) |
$ 14,991 |
$ 76,278 |
$ 77,433 |
$ 71,379 |
$ 240,081 |
$ 44,639 |
$ 57,686 |
$ 60,592 |
$ 74,632 |
$ 237,549 |
|
Rightsizing and other costs |
414 |
903 |
943 |
3,868 |
6,128 |
653 |
2,071 |
4,552 |
6,099 |
13,375 |
|
Loss on assets held for sale 1 |
46,946 |
— |
— |
— |
46,946 |
— |
— |
— |
— |
— |
|
Adjusted EBIT - Segment |
62,351 |
77,181 |
78,376 |
75,247 |
293,155 |
45,292 |
59,757 |
65,144 |
80,731 |
250,924 |
|
Adjusted EBIT % |
18.9 % |
22.8 % |
23.0 % |
22.9 % |
21.9 % |
14.7 % |
18.1 % |
20.2 % |
21.8 % |
18.8 % |
|
Adjusted D&A 2 |
17,548 |
16,199 |
16,018 |
17,004 |
66,769 |
17,431 |
17,741 |
18,078 |
17,823 |
71,073 |
|
Adjusted EBITDA - segment |
$ 79,899 |
$ 93,380 |
$ 94,394 |
$ 92,251 |
$ 359,924 |
$ 62,723 |
$ 77,498 |
$ 83,222 |
$ 98,554 |
$ 321,997 |
|
Adjusted EBITDA % |
24.2 % |
27.6 % |
27.7 % |
28.1 % |
26.9 % |
20.3 % |
23.5 % |
25.8 % |
26.6 % |
24.2 % |
|
Refrigeration & Food Equipment: |
|||||||||||
Segment earnings (EBIT) |
$ 24,807 |
$ 44,375 |
$ 35,211 |
$ 14,439 |
$ 118,832 |
$ 29,182 |
$ 51,372 |
$ 42,434 |
$ 13,131 |
$ 136,119 |
|
Rightsizing and other costs |
2,293 |
666 |
840 |
2,243 |
6,042 |
— |
— |
451 |
9,498 |
9,949 |
|
Adjusted EBIT - Segment |
27,100 |
45,041 |
36,051 |
16,682 |
124,874 |
29,182 |
51,372 |
42,885 |
22,629 |
146,068 |
|
Adjusted EBIT % |
8.1 % |
11.7 % |
9.7 % |
5.4 % |
8.9 % |
8.6 % |
12.8 % |
11.1 % |
6.9 % |
10.1 % |
|
Adjusted D&A 2 |
13,011 |
12,777 |
13,047 |
12,525 |
51,360 |
13,579 |
13,524 |
13,533 |
13,541 |
54,177 |
|
Adjusted EBITDA - segment |
$ 40,111 |
$ 57,818 |
$ 49,098 |
$ 29,207 |
$ 176,234 |
$ 42,761 |
$ 64,896 |
$ 56,418 |
$ 36,170 |
$ 200,245 |
|
Adjusted EBITDA % |
12.0 % |
15.0 % |
13.3 % |
9.5 % |
12.6 % |
12.6 % |
16.2 % |
14.6 % |
11.1 % |
13.8 % |
|
Total Segments: |
|||||||||||
Segment earnings (EBIT) 3 |
$ 200,102 |
$ 305,060 |
$ 316,735 |
$ 290,221 |
$ 1,112,118 |
$ 198,596 |
$ 271,049 |
$ 252,355 |
$ 255,193 |
$ 977,193 |
|
Rightsizing and other costs |
3,928 |
5,730 |
3,485 |
13,412 |
26,555 |
3,127 |
4,458 |
21,561 |
29,441 |
58,587 |
|
Loss on assets held for sale 1 |
46,946 |
— |
— |
— |
46,946 |
— |
— |
— |
— |
— |
|
Adjusted EBIT - Segment 4 |
250,976 |
310,790 |
320,220 |
303,633 |
1,185,619 |
201,723 |
275,507 |
273,916 |
284,634 |
1,035,780 |
|
Adjusted EBIT % 4 |
14.5 % |
17.2 % |
17.5 % |
17.1 % |
16.6 % |
12.3 % |
15.3 % |
15.7 % |
15.7 % |
14.8 % |
|
Adjusted D&A 2 |
66,133 |
65,093 |
65,190 |
67,024 |
263,440 |
67,267 |
67,708 |
66,691 |
67,314 |
268,980 |
|
Adjusted EBITDA - segment 4 |
$ 317,109 |
$ 375,883 |
$ 385,410 |
$ 370,657 |
$ 1,449,059 |
$ 268,990 |
$ 343,215 |
$ 340,607 |
$ 351,948 |
$ 1,304,760 |
|
Adjusted EBITDA % 4 |
18.4 % |
20.7 % |
21.1 % |
20.9 % |
20.3 % |
16.4 % |
19.1 % |
19.5 % |
19.5 % |
18.7 % |
1 Q1 and FY 2019 include a $46,946 loss on assets held for sale for Finder Pompe S.r.l. ("Finder"). |
2 Adjusted D&A is depreciation and amortization expense, excluding depreciation and amortization included within rightsizing and other costs. |
3 Refer to Quarterly Segment Information section for reconciliation of total segment earnings (EBIT) to net earnings. |
4 Refer to Additional Information section for definition. |
DOVER CORPORATION |
|||||
REVENUE GROWTH FACTORS & ADJUSTED GUIDANCE (NON-GAAP) |
|||||
(unaudited)(in thousands, except per share data*) |
|||||
Other Non-GAAP Reconciliations |
|||||
Revenue Growth Factors |
|||||
2019 |
|||||
Q1 |
Q2 |
Q3 |
Q4 |
Full Year |
|
Organic |
|||||
Engineered Products |
6.1 % |
4.9 % |
7.4 % |
3.1 % |
5.4 % |
Fueling Solutions |
20.0 % |
8.3 % |
10.7 % |
5.0 % |
10.5 % |
Imaging & Identification |
5.5 % |
(3.1)% |
4.6 % |
(1.8)% |
1.2 % |
Pumps & Process Solutions |
10.0 % |
6.7 % |
8.7 % |
(8.0)% |
3.9 % |
Refrigeration & Food Equipment |
0.7 % |
(2.8)% |
(3.2)% |
(5.6)% |
(2.7)% |
Total Organic |
8.3 % |
2.9 % |
5.6 % |
(1.1)% |
3.8 % |
Acquisitions |
0.5 % |
0.8 % |
1.0 % |
0.9 % |
0.8 % |
Dispositions |
(0.1)% |
(0.5)% |
(0.5)% |
(0.6)% |
(0.5)% |
Currency translation |
(3.4)% |
(2.5)% |
(1.6)% |
(1.0)% |
(2.0)% |
Total* |
5.3 % |
0.7 % |
4.5 % |
(1.8)% |
2.1 % |
* Totals may be impacted by rounding. |
2019 |
||
Full Year |
||
Organic |
||
United States |
3.6 % |
|
Other Americas |
1.2 % |
|
Europe |
6.5 % |
|
Asia |
2.4 % |
|
Other |
2.3 % |
|
Total Organic |
3.8 % |
|
Acquisitions |
0.8 % |
|
Dispositions |
(0.5)% |
|
Currency translation |
(2.0)% |
|
Total* |
2.1 % |
|
* Totals may be impacted by rounding. |
||
Adjusted Guidance Reconciliation |
2019 Actual |
2020 Guidance |
Adjusted net earnings per share*: |
||
Net earnings (GAAP) |
$ 4.61 |
$ 5.48 - 5.68 |
Acquisition-related amortization, net |
0.70 |
0.66 |
Rightsizing and other costs, net |
0.16 |
0.06 |
Loss on extinguishment of debt |
0.12 |
— |
Loss on assets held for sale |
0.32 |
— |
Adjusted net earnings (Non-GAAP) |
$ 5.93 |
$ 6.20 - 6.40 |
* Per share data and totals may be impacted by rounding. |
DOVER CORPORATION |
|||||||||||
QUARTERLY SEGMENT INFORMATION |
|||||||||||
(unaudited)(in thousands) |
|||||||||||
2019 |
2018 |
||||||||||
Q1 |
Q2 |
Q3 |
Q4 |
FY 2019 |
Q1 |
Q2 |
Q3 |
Q4 |
FY 2018 |
||
BOOKINGS |
|||||||||||
Engineered Products |
$ 427,697 |
$ 397,420 |
$ 426,059 |
$ 457,145 |
$ 1,708,321 |
$ 480,513 |
$ 425,322 |
$ 403,098 |
$ 494,622 |
$ 1,803,555 |
|
Fueling Solutions |
343,083 |
394,256 |
450,727 |
425,698 |
1,613,764 |
360,519 |
392,100 |
383,749 |
376,651 |
1,513,019 |
|
Imaging & Identification |
267,762 |
264,175 |
284,527 |
276,451 |
1,092,915 |
270,653 |
294,248 |
258,883 |
282,519 |
1,106,303 |
|
Pumps & Process Solutions |
369,801 |
375,905 |
329,642 |
318,482 |
1,393,830 |
342,991 |
345,278 |
340,287 |
358,319 |
1,386,875 |
|
Refrigeration & Food Equipment |
376,998 |
384,365 |
323,422 |
361,970 |
1,446,755 |
372,701 |
428,816 |
331,979 |
341,221 |
1,474,717 |
|
Intra-segment eliminations |
(725) |
(490) |
(528) |
872 |
(871) |
(680) |
(25) |
(597) |
(617) |
(1,919) |
|
Total consolidated bookings |
$ 1,784,616 |
$ 1,815,631 |
$ 1,813,849 |
$ 1,840,618 |
$ 7,254,714 |
$ 1,826,697 |
$ 1,885,739 |
$ 1,717,399 |
$ 1,852,715 |
$ 7,282,550 |
BACKLOG |
|||||||||
Engineered Products |
$ 451,335 |
$ 418,154 |
$ 416,025 |
$ 452,142 |
$ 380,846 |
$ 375,975 |
$ 370,948 |
$ 442,519 |
|
Fueling Solutions |
185,847 |
186,202 |
223,081 |
205,842 |
229,234 |
246,087 |
251,212 |
208,574 |
|
Imaging & Identification |
118,177 |
116,810 |
121,877 |
125,775 |
131,544 |
133,570 |
123,624 |
118,057 |
|
Pumps & Process Solutions |
353,066 |
378,427 |
361,478 |
353,073 |
315,020 |
318,891 |
337,420 |
315,230 |
|
Refrigeration & Food Equipment |
311,632 |
310,454 |
262,870 |
320,577 |
283,250 |
309,440 |
255,783 |
268,991 |
|
Intra-segment eliminations |
(403) |
(141) |
(252) |
(249) |
(394) |
(154) |
(58) |
(200) |
|
Total consolidated backlog |
$ 1,419,654 |
$ 1,409,906 |
$ 1,385,079 |
$ 1,457,160 |
$ 1,339,500 |
$ 1,383,809 |
$ 1,338,929 |
$ 1,353,171 |
Bookings Growth Factors |
|||||
2019 |
|||||
Q1 |
Q2 |
Q3 |
Q4 |
Full Year |
|
Organic |
|||||
Engineered Products |
(9.3)% |
(4.9)% |
6.9 % |
(6.8)% |
(4.0)% |
Fueling Solutions |
(2.3)% |
1.9 % |
16.5 % |
11.0 % |
6.9 % |
Imaging & Identification |
4.5 % |
(6.4)% |
13.0 % |
(0.3)% |
2.3 % |
Pumps & Process Solutions |
11.0 % |
12.8 % |
(0.8)% |
(9.2)% |
3.3 % |
Refrigeration & Food Equipment |
2.8 % |
(9.2)% |
(1.5)% |
6.8 % |
(0.7)% |
Total Organic |
0.4 % |
(1.5)% |
6.8 % |
(0.1)% |
1.3 % |
Acquisitions |
0.6 % |
0.6 % |
0.9 % |
0.9 % |
0.8 % |
Dispositions |
(0.1)% |
(0.5)% |
(0.4)% |
(0.3)% |
(0.3)% |
Currency translation |
(3.2)% |
(2.3)% |
(1.7)% |
(1.2)% |
(2.1)% |
Total* |
(2.3)% |
(3.7)% |
5.6 % |
(0.7)% |
(0.4)% |
* Totals may be impacted by rounding. |
ADDITIONAL INFORMATION
FOURTH QUARTER AND FULL YEAR 2019
(Amounts in thousands except share data and where otherwise indicated)
Change in Segments
Effective
Acquisitions
The Company did not complete any acquisitions during the fourth quarter of 2019. For the full year 2019, the Company acquired three businesses in separate transactions for total consideration of
Discontinued and Disposed Businesses
The Company did not dispose of any businesses during the fourth quarter of 2019. For the full year 2019, the Company completed the sale of Finder, which generated total cash proceeds of
Rightsizing and Other Costs
During the year ended
($ in millions) |
2019 |
2018 |
|||||||||
Q4 |
FY |
Q4 |
FY |
||||||||
Engineered Products |
$ |
1.4 |
$ |
3.2 |
$ |
3.7 |
$ |
7.3 |
|||
Fueling Solutions |
1.6 |
4.9 |
6.7 |
15.3 |
|||||||
Imaging & Identification |
4.4 |
6.4 |
3.5 |
12.6 |
|||||||
Pumps & Process Solutions |
3.9 |
6.1 |
6.1 |
13.4 |
|||||||
Refrigeration & Food Equipment |
2.2 |
6.0 |
9.5 |
10.0 |
|||||||
Corporate |
4.5 |
5.6 |
8.0 |
14.2 |
|||||||
Total* |
$ |
17.9 |
$ |
32.2 |
$ |
37.4 |
$ |
72.8 |
* Totals may be impacted by rounding.
Tax Rate
The effective tax rate was 14.7% and 15.4% for the fourth quarters of 2019 and 2018, respectively. On a full year basis, the effective tax rate for 2019 and 2018 was 19.6% and 18.5%, respectively. The 2019 tax rate was primarily driven by the tax deduction for share-based awards and other favorable discrete items, partially offset by the exclusion of capital losses on a disposition of a business under local tax law. The 2018 tax rate was impacted by the tax deduction for share-based awards, the impact of SAB 118 from US Tax Reform, and other favorable discrete items.
ADDITIONAL INFORMATION (CONTINUED)
FOURTH QUARTER AND FULL YEAR 2019
(Amounts in thousands except share data and where otherwise indicated)
Share Repurchases
During the year ended
Borrowings
On
Capitalization
The following table provides a reconciliation of total debt and net debt to net capitalization to the most directly comparable GAAP measures:
Net Debt to Net Capitalization Ratio (Non-GAAP) |
December 31, 2019 |
December 31, 2018 |
Commercial paper |
84,700 |
220,318 |
Notes payable |
84,700 |
220,318 |
Long-term debt |
2,985,716 |
2,943,660 |
Total debt |
3,070,416 |
3,163,978 |
Less: Cash and cash equivalents |
(397,253) |
(396,221) |
Net debt |
2,673,163 |
2,767,757 |
Add: Stockholders' equity |
3,032,660 |
2,768,666 |
Net capitalization |
$ 5,705,823 |
$ 5,536,423 |
Net debt to net capitalization |
46.8% |
50.0 % |
Quarterly Cash Flow |
|||||||||||
2019 |
2018 |
||||||||||
Q1 |
Q2 |
Q3 |
Q4 |
FY 2019 |
Q1 |
Q2 |
Q3 |
Q4 |
FY 2018 |
||
Net Cash Flows Provided |
|||||||||||
Operating activities |
$ 24,524 |
$ 208,709 |
$ 350,865 |
$ 361,208 |
$ 945,306 |
$ 15,535 |
$ 159,205 |
$ 243,944 |
$ 370,509 |
$ 789,193 |
|
Investing activities |
(217,690) |
(69,755) |
(48,612) |
(48,198) |
(384,255) |
(122,597) |
(51,606) |
(35,922) |
(35,355) |
(245,480) |
|
Financing activities |
36,067 |
(60,596) |
(277,901) |
(255,612) |
(558,042) |
(289,103) |
(227,734) |
(232,476) |
(148,525) |
(897,838) |
|
Quarterly Free Cash Flow (Non-GAAP) |
|||||||||||
2019 |
2018 |
||||||||||
Q1 |
Q2 |
Q3 |
Q4 |
FY 2019 |
Q1 |
Q2 |
Q3 |
Q4 |
FY 2018 |
||
Cash flow from operating |
$ 24,524 |
$ 208,709 |
$ 350,865 |
$ 361,208 |
$ 945,306 |
$ 15,535 |
$ 159,205 |
$ 243,944 |
$ 370,509 |
$ 789,193 |
|
Less: Capital expenditures |
(37,122) |
(53,970) |
(46,184) |
(49,528) |
(186,804) |
(44,678) |
(51,686) |
(38,192) |
(36,438) |
(170,994) |
|
Free cash flow * |
$ (12,598) |
$ 154,739 |
$ 304,681 |
$ 311,680 |
$ 758,502 |
$ (29,143) |
$ 107,519 |
$ 205,752 |
$ 334,071 |
$ 618,199 |
|
Free cash flow as a |
(0.7)% |
8.5 % |
16.7 % |
17.6 % |
10.6 % |
(1.8)% |
6.0 % |
11.8 % |
18.5 % |
8.8 % |
|
Free cash flow as a |
(11.9)% |
78.1 % |
147.9 % |
185.4 % |
111.9 % |
(26.6)% |
64.6 % |
130.8 % |
211.5 % |
104.6 % |
* FY 2019 and 2018 free cash flow includes cash payments related to restructuring initiatives of
Non-GAAP Disclosures
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 earnings from continuing operations, adjusted diluted earnings per share from continuing operations, total segment earnings (EBIT), adjusted EBIT by segment, adjusted EBIT margin by segment, adjusted EBITDA by segment, adjusted EBITDA margin by segment, net debt, net capitalization, net debt to net capitalization ratios, free cash flow, free cash flow as a percentage of revenue, free cash flow as a percentage of earnings, and organic revenue growth are not financial measures under GAAP and should not be considered as a substitute for earnings from continuing operations, diluted earnings per share from continuing operations, debt or equity, 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 earnings from continuing operations represents earnings from continuing operations adjusted for the effect of acquisition- related amortization, rightsizing and other costs, loss on extinguishment of debt, loss on assets held for sale, and the Tax Cuts and Jobs Act. We exclude after-tax acquisition-related amortization because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions the Company consummates. We exclude the other items because they occur for reasons that may be unrelated to the Company's commercial performance during the period and/or Management believes they are not indicative of the Company's ongoing operating costs or gains in a given period.
Adjusted diluted earnings per share from continuing operations represents adjusted earnings from continuing operations divided by average diluted shares.
Total segment earnings (EBIT) is defined as earnings from continuing operations 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 earnings from continuing operations before income taxes, net interest expense, corporate expenses, rightsizing and other costs and a 2019 loss on assets held for sale. Adjusted EBIT Margin by Segment is defined as adjusted EBIT by segment divided by segment revenue.
Adjusted EBITDA by Segment is defined as adjusted EBIT by segment plus depreciation and amortization, excluding depreciation and amortization included within rightsizing and other costs. Adjusted EBITDA Margin by Segment is defined as adjusted EBITDA by segment divided by segment revenue.
Management believes these measures are useful to investors to better understand the Company's ongoing profitability as it will better reflect the Company's core operating results, offer more transparency and facilitate easier comparability to prior and future periods and to its peers.
Net debt represents total debt minus cash and cash equivalents. Net capitalization represents net debt plus stockholders' equity. Net debt to net capitalization ratio equals net debt divided by net capitalization. Management believes the net debt to net capitalization ratio is useful to assess our overall financial leverage and capacity.
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 earnings from continuing operations equals free cash flow divided by earnings from continuing operations. 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.
Investor Contact: |
Media Contact: |
Andrey Galiuk |
Adrian Sakowicz |
Vice President - Corporate Development |
Vice President - Communications and Investor Relations |
(630) 743-5039 |
(630) 743-5131 |
|
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SOURCE Dover