Dover Reports Second Quarter 2018 Results

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Dover Reports Second Quarter 2018 Results

- Reports quarterly revenue of $1.8 billion, an increase of 3% from the prior year
- Posts earnings from continuing operations of $166.5 million on a GAAP basis, up 17%; and adjusted diluted earnings per share from continuing operations of $1.30, an increase of 21% from the prior year
- Tightens 2018 guidance for full year adjusted diluted earnings per share from continuing operations to $4.75 to $4.85

DOWNERS GROVE, Ill., July 19, 2018 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the second quarter ended June 30, 2018.

Second Quarter 2018 Financial Results:

For the second quarter ended June 30, 2018, Dover's revenue was $1.8 billion, an increase of 3% from the prior year. The increase in the quarter was driven by organic growth of 3% and a favorable impact from foreign exchange ("FX") of 2%, partially offset by a net 2% impact from previous acquisitions and dispositions. Earnings from continuing operations were $166.5 million, an increase of 17% as compared to $142.5 million for the prior year period. Diluted earnings per share from continuing operations ("EPS") on a GAAP basis for the second quarter ended June 30, 2018, were $1.08, compared to $0.90 EPS in the prior year period, representing an increase of 20%.

For the second quarter ended June 30, 2018, EPS from continuing operations included acquisition-related amortization costs of $0.18 and rightsizing and other costs of $0.03. Excluding these costs, adjusted EPS for the second quarter ended June 30, 2018, was $1.30, an increase of 21% over an adjusted EPS of $1.07 in the prior year period, on a comparable basis.

In the second quarter, the Apergy spin-off was completed and its financial results are now reported as discontinued operations. Net earnings for the second quarter ended June 30, 2018, inclusive of a $26.5 million loss in discontinued operations, was $140.0 million, compared to net earnings of $164.1 million in the prior year period, which included earnings from discontinued operations of $21.6 million. The loss from discontinued operations of $26.5 million for the second quarter ended June 30, 2018 included Apergy-related separation costs of $34.6 million.

A reconciliation between GAAP and adjusted measures is included as an exhibit herein.

Full Year 2018 Guidance Update:

Dover tightened its guidance for adjusted diluted earnings per share from continuing operations to $4.75 to $4.85, representing an increase of approximately 16% over the prior year, on a comparable basis. This guidance is based on full year revenue growth of 2% to 3%, which is comprised of organic growth of 3% to 4%, acquisition growth of 1%, and a favorable impact from FX of 1%, partially offset by a 3% impact from dispositions.

Dover's updated 2018 guidance for adjusted EPS from continuing operations excludes acquisition-related amortization costs of $0.72, rightsizing and other costs of $0.06 and any additional second half cost reduction actions that may be undertaken. Additionally, Dover expects its full year effective tax rate to be in the range of 21% to 22%.

Management Commentary:

Dover's President and Chief Executive Officer, Richard J. Tobin, said, "As Dover posts its first quarterly results following the successful spin-off of Apergy, we are pleased to report total company revenue up 3%, an increase in adjusted net earnings of 19% to $200 million, with a corresponding increase in EPS of 21%. We were encouraged by the overall demand environment in the second quarter which drove revenue increases of 4% in Engineered Systems and 10% in Fluids, offsetting forecasted demand weakness in Refrigeration & Food Equipment. Second quarter bookings were strong giving us confidence in our earnings forecast for the full year.

"Dover recently completed a review of its company operating performance, competitive positioning, overhead structure and industrial footprint. This review validated our belief that our core business platforms are strong and well-positioned for growth.  The review also made it clear that actions are required to adjust our cost structure in certain businesses. Accordingly, Dover expects to undertake targeted cost reduction initiatives between now and the end of the year to reduce overhead and increase asset intensity, while preserving our ability to drive top line growth.  We will be announcing the estimated costs, benefits and timelines associated with these actions later in the third quarter. These actions, while difficult, are necessary so that we can fund initiatives in product digitization, e-commerce, new product development, and inorganic investment in our core business platforms."

Conference Call Information:

Dover will host a webcast and conference call to discuss its second quarter 2018 results and 2018 guidance at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Thursday, July 19, 2018. 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 second quarter results and its operating segments can be found on the Company's website.

About Dover:

Dover is a diversified global manufacturer with annual revenue of approximately $7 billion. We deliver innovative equipment and components, specialty systems, consumable supplies, software and digital solutions, and support services through three operating segments: Engineered Systems, Fluids and Refrigeration & Food Equipment. Dover combines global scale with operational agility to lead the markets we serve. Recognized for our entrepreneurial approach for over 60 years, our team of 26,000 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. All statements in this document other than statements of historical fact are statements that are, or could be deemed, "forward-looking" statements. Some of these statements may be indicated by words such as "may", "anticipate", "expect", believe", "intend", "guidance", "estimates", "suggest", "will", "plan", "should", "would", "could", "forecast" and other words and terms that use the future tense or have a similar meaning.  Forward-looking statements are based on current expectations and 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 identify and complete acquisitions and integrate and realize synergies from newly acquired businesses, the impact of interest rate and currency exchange rate fluctuations, capital allocation plans and changes in those plans, including with respect to dividends, share repurchases, investments in research and development, capital expenditures and acquisitions, changes in law, including the effect of U.S. tax reform and developments with respect to trade policy and tariffs, our ability to derive expected benefits from restructuring, productivity initiatives and other cost reduction actions, changes in sourcing input costs or the supply of input materials, the impact of legal compliance risks and litigation, including with respect to product quality and safety, cybersecurity and privacy, our ability to capture and protect intellectual property rights, and various other factors that are described in the Company's periodic reports filed with or furnished to the Securities and Exchange Commission, including our Annual Report on Form 10-K/A for the year ended December 31, 2017. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

 

 

INVESTOR SUPPLEMENT - SECOND QUARTER 2018

DOVER CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)(in thousands, except per share data)





Three Months Ended June 30,

Six Months Ended June 30,

2018

2017

2018

2017

Revenue

$

1,798,094

$

1,737,371

$

3,435,765

$

3,320,581

Cost of goods and services

1,132,858

1,083,263

2,167,700

2,090,620

Gross profit

665,236

654,108

1,268,065

1,229,961

Selling, general, and administrative expenses

428,775

421,270

863,801

846,987

Operating earnings

236,461

232,838

404,264

382,974

Interest expense

32,125

36,854

67,765

73,213

Interest income

(2,563)

(2,335)

(4,620)

(4,910)

Gain on sale of businesses

—

—

—

(90,093)

Other (income) expense, net

(4,538)

259

(4,568)

(171)

Earnings before provision for income taxes

211,437

198,060

345,687

404,935

Provision for income taxes

44,981

55,585

69,822

107,372

Earnings from continuing operations

166,456

142,475

275,865

297,563

(Loss) earnings from discontinued operations, net

(26,497)

21,583

(4,472)

38,742

Net earnings

$

139,959

$

164,058

$

271,393

$

336,305








Basic earnings per share:






Earnings from continuing operations

$

1.10

$

0.92

$

1.80

$

1.91

(Loss) earnings from discontinued operations, net

(0.17)

0.14

(0.03)

0.25

Net earnings

$

0.92

$

1.05

$

1.77

$

2.16








Weighted average shares outstanding

151,744

155,703

153,124

155,622

Diluted earnings per common share:






Earnings from continuing operations

$

1.08

$

0.90

$

1.77

$

1.89

(Loss) earnings from discontinued operations, net

(0.17)

0.14

(0.03)

0.25

Net earnings

$

0.91

$

1.04

$

1.74

$

2.14








Weighted average shares outstanding

153,938

157,513

155,573

157,457








Dividends paid per common share

$

0.47

$

0.44

$

0.94

$

0.88








 

DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited)(in thousands)





2018

2017

Q1

Q2

Q2 YTD

Q1

Q2

Q2 YTD

Q3

Q4

FY 2017

REVENUE









Engineered Systems









Printing & Identification

$

282,522

$

299,834

$

582,356

$

249,238

$

278,220

$

527,458

$

272,941

$

293,616

$

1,094,015

Industrials

389,104

403,155

792,259

379,634

400,065

779,699

398,058

396,212

1,573,969


671,626

702,989

1,374,615

628,872

678,285

1,307,157

670,999

689,828

2,667,984












Fluids

628,098

693,666

1,321,764

597,645

633,252

1,230,897

638,068

686,100

2,555,065












Refrigeration & Food Equipment

338,235

401,766

740,001

356,834

426,304

783,138

438,788

377,179

1,599,105












Intra-segment eliminations

(288)

(327)

(615)

(141)

(470)

(611)

(80)

(577)

(1,268)

Total consolidated revenue

$

1,637,671

$

1,798,094

$

3,435,765

$

1,583,210

$

1,737,371

$

3,320,581

$

1,747,775

$

1,752,530

$

6,820,886












NET EARNINGS









Segment Earnings:









Engineered Systems

$

102,066

$

126,649

$

228,715

$

177,207

$

110,103

$

287,310

$

102,767

$

214,407

$

604,484

Fluids

67,348

93,028

160,376

67,172

91,465

158,637

103,052

106,941

368,630

Refrigeration & Food Equipment

29,182

51,372

80,554

33,562

65,829

99,391

65,413

29,018

193,822

Total segments

198,596

271,049

469,645

277,941

267,397

545,338

271,232

350,366

1,166,936

Corporate expense / other

30,763

30,050

60,813

37,282

34,818

72,100

30,843

51,721

154,664

Interest expense

35,640

32,125

67,765

36,359

36,854

73,213

35,372

36,363

144,948

Interest income

(2,057)

(2,563)

(4,620)

(2,575)

(2,335)

(4,910)

(1,759)

(1,822)

(8,491)

Earnings before provision for income taxes

134,250

211,437

345,687

206,875

198,060

404,935

206,776

264,104

875,815

Provision (benefit) for income taxes

24,841

44,981

69,822

51,787

55,585

107,372

47,321

27,701

182,394

Earnings from continuing operations

109,409

166,456

275,865

155,088

142,475

297,563

159,455

236,403

693,421

Earnings (loss) from discontinued operations, net

22,025

(26,497)

(4,472)

17,159

21,583

38,742

19,457

60,045

118,244

Net earnings

$

131,434

$

139,959

$

271,393

$

172,247

$

164,058

$

336,305

$

178,912

$

296,448

$

811,665












SEGMENT MARGIN







Engineered Systems

15.2

%

18.0

%

16.6

%

28.2

%

16.2

%

22.0

%

15.3

%

31.1

%

22.7

%

Fluids

10.7

%

13.4

%

12.1

%

11.2

%

14.4

%

12.9

%

16.2

%

15.6

%

14.4

%

Refrigeration & Food Equipment

8.6

%

12.8

%

10.9

%

9.4

%

15.4

%

12.7

%

14.9

%

7.7

%

12.1

%

Total segment operating margin

12.1

%

15.1

%

13.7

%

17.6

%

15.4

%

16.4

%

15.5

%

20.0

%

17.1

%











DEPRECIATION AND AMORTIZATION EXPENSE






Engineered Systems

$

19,239

$

19,203

$

38,442

$

20,598

$

21,272

$

41,870

$

23,150

$

20,427

$

85,447

Fluids

34,449

34,981

69,430

32,454

33,362

65,816

34,211

35,794

135,821

Refrigeration & Food Equipment

13,579

13,524

27,103

15,035

14,522

29,557

14,093

13,557

57,207

Corporate

1,358

1,595

2,953

1,133

1,252

2,385

1,079

1,339

4,803

Total depreciation and amortization expense

$

68,625

$

69,303

$

137,928

$

69,220

$

70,408

$

139,628

$

72,533

$

71,117

$

283,278












































 

DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(continued)
(unaudited)(in thousands)





2018

2017

Q1

Q2

Q2 YTD

Q1

Q2

Q2 YTD

Q3

Q4

FY 2017

BOOKINGS









Engineered Systems









Printing & Identification

$

284,437

$

306,770

$

591,207

$

256,664

$

282,158

$

538,822

$

268,700

$

306,818

$

1,114,340

Industrials

466,722

412,780

879,502

444,058

392,816

836,874

390,254

397,053

1,624,181


751,159

719,550

1,470,709

700,722

674,974

1,375,696

658,954

703,871

2,738,521












Fluids

703,461

737,340

1,440,801

638,801

631,350

1,270,151

655,305

687,307

2,612,763












Refrigeration & Food Equipment

372,701

428,816

801,517

438,576

466,276

904,852

357,855

319,899

1,582,606












Intra-segment eliminations

(624)

33

(591)

(1,093)

(397)

(1,490)

(339)

(502)

(2,331)












Total consolidated bookings

$

1,826,697

$

1,885,739

$

3,712,436

$

1,777,006

$

1,772,203

$

3,549,209

$

1,671,775

$

1,710,575

$

6,931,559












BACKLOG









Engineered Systems









Printing & Identification

$

135,915

$

137,019


$

109,347

$

115,763

$

116,359

$

129,752


Industrials

376,474

372,525


327,180

321,315

316,835

329,575



512,389

509,544


436,527

437,078

433,194

459,327













Fluids

544,250

564,959


434,274

438,445

462,471

459,746













Refrigeration & Food Equipment

283,250

309,440


341,530

382,598

302,574

244,972













Intra-segment eliminations

(389)

(134)


(725)

(268)

(174)

(371)













Total consolidated backlog

$

1,339,500

$

1,383,809


$

1,211,606

$

1,257,853

$

1,198,065

$

1,163,674

































 

DOVER CORPORATION
QUARTERLY EARNINGS PER SHARE
(unaudited)(in thousands, except per share data*)











Earnings Per Share










2018

2017

Q1

Q2

Q2 YTD

Q1

Q2

Q2 YTD

Q3

Q4

FY 2017

Basic earnings (loss)

 per common share:






Continuing operations

$

0.71

$

1.10

$

1.80

$

1.00

$

0.92

$

1.91

$

1.02

$

1.52

$

4.45

Discontinued operations

0.14

(0.17)

(0.03)

0.11

0.14

0.25

0.12

0.39

0.76

Net earnings

$

0.85

$

0.92

1.77

$

1.11

$

1.05

$

2.16

$

1.15

$

1.90

$

5.21











Diluted earnings (loss)

 per common share:






Continuing operations

$

0.70

$

1.08

$

1.77

$

0.99

$

0.90

$

1.89

$

1.01

$

1.50

$

4.40

Discontinued operations

0.14

(0.17)

(0.03)

0.11

0.14

0.25

0.12

0.38

0.75

Net earnings

$

0.84

$

0.91

$

1.74

$

1.09

$

1.04

$

2.14

$

1.14

$

1.88

$

5.15











Net earnings (loss) and

 weighted average shares

 used in calculated earnings

 per share amounts are as follows:

Net earnings (loss):









Continuing operations

$

109,409

$

166,456

$

275,865

$

155,088

$

142,475

$

297,563

$

159,455

$

236,403

$

693,421

Discontinued operations

22,025

(26,497)

(4,472)

17,159

21,583

38,742

19,457

60,045

118,244

Net earnings

$

131,434

$

139,959

$

271,393

$

172,247

$

164,058

$

336,305

$

178,912

$

296,448

$

811,665











Weighted average shares outstanding:






Basic

154,520

151,744

153,124

155,540

155,703

155,622

155,757

155,734

155,685

Diluted

157,090

153,938

155,573

157,399

157,513

157,457

157,555

158,013

157,744











* Per share data may be impacted by rounding.

 

Non-GAAP Reconciliations

Adjusted Earnings Per Share (Non-GAAP)

Earnings from continuing operations are adjusted by the effect of acquisition-related amortization, the Tax Cuts and Jobs Act, gains on disposition of businesses, disposition costs, rightsizing and other costs and a product recall reserve charge and reversal to derive adjusted earnings from continuing operations and adjusted diluted earnings per common share as follows:

 

2018

2017

Q1

Q2

Q2 YTD

Q1

Q2

Q2 YTD

Q3

Q4

FY 2017

Adjusted earnings:









Earnings from continuing operations

$   109,409

$   166,456

$   275,865

$   155,088

$   142,475

$   297,563

$   159,455

$   236,403

$   693,421

Acquisition-related amortization, pre-tax ¹

38,150

38,072

76,222

38,996

37,620

76,616

37,553

37,108

151,277

Acquisition-related amortization, tax impact ²

(9,716)

(9,683)

(19,399)

(12,777)

(12,027)

(24,804)

(12,171)

(11,906)

(48,881)

Tax Cuts and Jobs Act ³

—

—

—

—

—

—

—

(1,666)

(1,666)

Gain on dispositions, pre-tax ⁴

—

—

—

(88,402)

—

(88,402)

—

(116,932)

(205,334)

Gain on dispositions, tax impact ²

—

—

—

26,682

—

26,682

—

6,071

32,753

Disposition costs, pre-tax ⁵

—

—

—

—

—

—

3,314

1,931

5,245

Disposition costs, tax impact ²

—

—

—

—

—

—

(964)

(1,051)

(2,015)

Rightsizing and other costs, pre-tax ⁶

4,371

6,808

11,179

—

—

—

—

49,379

49,379

Rightsizing and other costs, tax impact ²

(797)

(1,448)

(2,245)

—

—

—

—

(14,746)

(14,746)

Product recall reversal, pre-tax

—

—

—

—

—

—

—

(7,200)

(7,200)

Product recall reversal, tax impact ²

—

—

—

—

—

—

—

2,614

2,614

Adjusted earnings from continuing operations

$   141,417

$   200,205

$   341,622

$   119,587

$   168,068

$   287,655

$   187,187

$   180,005

$   654,847











Adjusted diluted earnings per common share*:








Diluted earnings per share from continuing operations

$        0.70

$        1.08

$        1.77

$        0.99

$        0.90

$        1.89

$        1.01

$        1.50

$        4.40

Acquisition-related amortization, pre-tax ¹

0.24

0.25

0.49

0.25

0.24

0.49

0.24

0.23

0.96

Acquisition-related amortization, tax impact ²

(0.06)

(0.06)

(0.12)

(0.08)

(0.08)

(0.16)

(0.08)

(0.08)

(0.31)

Tax Cuts and Jobs Act ³

—

—

—

—

—

—

—

(0.01)

(0.01)

Gain on dispositions, pre-tax ⁴

—

—

—

(0.56)

—

(0.56)

—

(0.74)

(1.30)

Gain on dispositions, tax impact ²

—

—

—

0.17

—

0.17

—

0.04

0.21

Disposition costs, pre-tax ⁵

—

—

—

—

—

—

0.02

0.01

0.03

Disposition costs, tax impact ²

—

—

—

—

—

—

(0.01)

(0.01)

(0.02)

Rightsizing and other costs, pre-tax ⁶

0.03

0.04

0.07

—

—

—

—

0.31

0.31

Rightsizing and other costs, tax impact ²

(0.01)

(0.01)

(0.01)

—

—

—

—

(0.09)

(0.09)

Product recall reversal, pre-tax

—

—

—

—

—

—

—

(0.05)

(0.05)

Product recall reversal, tax impact ²

—

—

—

—

—

—

—

0.02

0.02

Adjusted diluted earnings per share from continuing operations

$        0.90

$        1.30

$        2.20

$        0.76

$        1.07

$        1.83

$        1.19

$        1.14

$        4.15











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 Tax impact primarily related to the enactment of the Tax Cuts and Jobs Act. This benefit also includes decreases in statutory tax rates of foreign jurisdictions.

4 Includes gains from the sales of Performance Motorsports International and Warn Industries, Inc. in the first and fourth quarters of 2017, respectively.

5 Disposition costs include costs related to the fourth quarter sale of Warn Industries, Inc.

6 Rightsizing and other costs include actions taken on employee reductions, facility consolidations and site closures and product line divestitures and exits.

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







DOVER CORPORATION
ADDITIONAL INFORMATION
(unaudited)(in thousands)




 

Quarterly Cash Flow

 



2018

2017

Q1

Q2

Q2 YTD

Q1

Q2

Q2 YTD

Q3

Q4

FY 2017

Net Cash Flows Provided By

 (Used In):










Operating activities

$

15,535

$

159,205

$

174,740

$

45,726

$

152,506

$

198,232

$

255,765

$

285,412

$

739,409

Investing activities

(122,597)

296,800

174,203

86,429

(46,460)

39,969

(47,584)

215,950

208,335

Financing activities

(289,103)

805,940

516,837

(93,293)

(216,273)

(309,566)

(197,635)

(85,732)

(592,933)



































 

Quarterly Free Cash Flow (Non-GAAP)



2018

2017

Q1

Q2

Q2 YTD

Q1

Q2

Q2 YTD

Q3

Q4

FY 2017

Cash flow from operating activities

$

15,535

$

159,205

$

174,740

$

45,726

$

152,506

$

198,232

$

255,765

$

285,412

$

739,409

Less: Capital expenditures

(44,678)

(51,686)

(96,364)

(36,931)

(42,035)

(78,966)

(51,396)

(39,706)

(170,068)

Free cash flow

$

(29,143)

$

107,519

$

78,376

$

8,795

$

110,471

$

119,266

$

204,369

$

245,706

$

569,341













Free cash flow as a percentage of revenue

(1.8)%

6.0%

2.3%

0.6%

6.4%

3.6%

11.7%

14.0%

8.3%













Free cash flow as a percentage of earnings from continuing operations

(26.6)%

64.6%

28.4%

5.7%

77.5%

40.1%

128.2%

103.9%

82.1%

 

Revenue Growth Factors

Three Months Ended June 30, 2018

Engineered Systems

Fluids

Refrigeration & Food Equipment

Total

Organic

6%

7%

(6)%

3%

Acquisitions

—%

1%

1%

—%

Dispositions

(5)%

—%

(2)%

(3)%

Currency translation

3%

2%

1%

2%

Total **

4%

10%

(6)%

3%








** Totals may be impacted by rounding.






 

Six Months Ended June 30, 2018

Engineered Systems

Fluids

Refrigeration & Food Equipment

Total

Organic

7%

4%

(6)%

3%

Acquisitions

—%

1%

1%

1%

Dispositions

(6)%

—%

(2)%

(3)%

Currency translation

4%

3%

2%

3%

Total *

5%

7%

(6)%

3%








* Totals may be impacted by rounding.






 

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 net earnings, adjusted diluted earnings per common share, free cash flow, and organic revenue growth are not financial measures under GAAP and should not be considered as a substitute for net earnings, diluted earnings per common 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 earnings from continuing operations represents earnings from continuing operations adjusted for the effect of acquisition-related amortization, the Tax Cuts and Jobs Act, gains on disposition of businesses, disposition costs, rightsizing and other costs, and a product recall reserve reversal. 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. Management believes this information is 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. Adjusted diluted earnings per common share represents adjusted net earnings divided by average diluted shares.

Free cash flow represents net cash provided by operating activities minus capital expenditures. Management believes that free cash flow is an important measure 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 performance and trends between periods.

 

Investor Contact:

Media Contact:

Paul Goldberg

Adrian Sakowicz

Vice President - Investor Relations

Vice President - Communications

(630) 743-5180

(630) 743-5039

peg@dovercorp.com

asakowicz@dovercorp.com

Cision View original content:http://www.prnewswire.com/news-releases/dover-reports-second-quarter-2018-results-300683559.html

SOURCE Dover