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Dover Reports First Quarter 2016 Results And Updates Full Year Guidance
"In response to these historically weak oil & gas markets, we have lowered our full year revenue growth expectations for our Energy and Fluids segments, resulting in reduced EPS guidance for the full year. We have also increased our restructuring activities, and expect full year restructuring costs to be approximately
"In all, we expect full year revenue to decline 2% to 5%, a three point reduction from our previous forecast. Within this forecast, organic revenue is anticipated to decline 5% to 8%, four points below our prior expectations. Acquisition revenue, net of dispositions, is unchanged and will provide approximately 4% growth, while FX has been reduced a point and is now expected to be a 1% headwind. In total, full year EPS is expected to be in the range of
Net earnings for the first quarter ended March 31, 2016, were
About
Forward-Looking Statements:
This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements relate to, among other things, operating and strategic plans, income, earnings, cash flows, foreign exchange, changes in operations, acquisitions, industries in which
INVESTOR SUPPLEMENT - FIRST QUARTER 2016 |
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DOVER CORPORATION |
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CONSOLIDATED STATEMENTS OF EARNINGS |
|||||||
(unaudited)(in thousands, except per share data) |
|||||||
Three Months Ended March 31, |
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2016 |
2015 |
||||||
Revenue |
$ |
1,622,273 |
$ |
1,715,501 |
|||
Cost of goods and services |
1,033,009 |
1,088,342 |
|||||
Gross profit |
589,264 |
627,159 |
|||||
Selling and administrative expenses |
443,448 |
434,634 |
|||||
Operating earnings |
145,816 |
192,525 |
|||||
Interest expense, net |
31,714 |
32,037 |
|||||
Other income, net |
(13,522) |
(4,187) |
|||||
Earnings before provision for income taxes and discontinued operations |
127,624 |
164,675 |
|||||
Provision for income taxes |
28,268 |
47,485 |
|||||
Earnings from continuing operations |
99,356 |
117,190 |
|||||
Earnings from discontinued operations, net |
— |
92,320 |
|||||
Net earnings |
$ |
99,356 |
$ |
209,510 |
|||
Basic earnings per common share: |
|||||||
Earnings from continuing operations |
$ |
0.64 |
$ |
0.72 |
|||
Earnings from discontinued operations, net |
— |
0.57 |
|||||
Net earnings |
0.64 |
1.30 |
|||||
Weighted average shares outstanding |
155,064 |
161,650 |
|||||
Diluted earnings per common share: |
|||||||
Earnings from continuing operations |
$ |
0.64 |
$ |
0.72 |
|||
Earnings from discontinued operations, net |
— |
0.57 |
|||||
Net earnings |
0.64 |
1.28 |
|||||
Weighted average shares outstanding |
156,161 |
163,323 |
|||||
Dividends paid per common share |
$ |
0.42 |
$ |
0.40 |
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DOVER CORPORATION |
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QUARTERLY SEGMENT INFORMATION |
|||||||||||||||||||
(unaudited)(in thousands) |
|||||||||||||||||||
2016 |
2015 |
||||||||||||||||||
Q1 |
Q1 |
Q2 |
Q3 |
Q4 |
FY 2015 |
||||||||||||||
REVENUE |
|||||||||||||||||||
Energy |
$ |
283,230 |
$ |
430,423 |
$ |
366,044 |
$ |
363,872 |
$ |
323,341 |
$ |
1,483,680 |
|||||||
Engineered Systems |
|||||||||||||||||||
Printing & Identification |
239,681 |
230,181 |
229,934 |
227,992 |
255,563 |
943,670 |
|||||||||||||
Industrials |
337,314 |
343,015 |
363,157 |
351,404 |
341,667 |
1,399,243 |
|||||||||||||
576,995 |
573,196 |
593,091 |
579,396 |
597,230 |
2,342,913 |
||||||||||||||
Fluids |
399,062 |
340,236 |
351,511 |
352,018 |
355,508 |
1,399,273 |
|||||||||||||
Refrigeration & Food Equipment |
363,252 |
372,097 |
448,115 |
492,460 |
418,758 |
1,731,430 |
|||||||||||||
Intra-segment eliminations |
(266) |
(451) |
(133) |
(164) |
(237) |
(985) |
|||||||||||||
Total consolidated revenue |
$ |
1,622,273 |
$ |
1,715,501 |
$ |
1,758,628 |
$ |
1,787,582 |
$ |
1,694,600 |
$ |
6,956,311 |
|||||||
NET EARNINGS |
|||||||||||||||||||
Segment Earnings: |
|||||||||||||||||||
Energy |
$ |
11,244 |
$ |
52,305 |
$ |
40,909 |
$ |
48,726 |
$ |
31,250 |
$ |
173,190 |
|||||||
Engineered Systems |
93,748 |
88,149 |
96,702 |
102,866 |
89,244 |
376,961 |
|||||||||||||
Fluids |
46,047 |
54,634 |
70,168 |
74,911 |
62,404 |
262,117 |
|||||||||||||
Refrigeration & Food Equipment |
38,161 |
36,150 |
65,732 |
76,665 |
42,752 |
221,299 |
|||||||||||||
Total Segments |
189,200 |
231,238 |
273,511 |
303,168 |
225,650 |
1,033,567 |
|||||||||||||
Corporate expense / other |
29,862 |
34,526 |
20,382 |
25,881 |
24,911 |
105,700 |
|||||||||||||
Net interest expense |
31,714 |
32,037 |
31,988 |
31,983 |
31,249 |
127,257 |
|||||||||||||
Earnings from continuing operations before |
127,624 |
164,675 |
221,141 |
245,304 |
169,490 |
800,610 |
|||||||||||||
Provision for income taxes |
28,268 |
47,485 |
65,507 |
58,821 |
32,916 |
204,729 |
|||||||||||||
Earnings from continuing operations |
99,356 |
117,190 |
155,634 |
186,483 |
136,574 |
595,881 |
|||||||||||||
Earnings (loss) from discontinued operations, net |
— |
92,320 |
176,762 |
(385) |
5,251 |
273,948 |
|||||||||||||
Net earnings |
$ |
99,356 |
$ |
209,510 |
$ |
332,396 |
$ |
186,098 |
$ |
141,825 |
$ |
869,829 |
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SEGMENT OPERATING MARGIN |
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Energy |
4.0 |
% |
12.2 |
% |
11.2 |
% |
13.4 |
% |
9.7 |
% |
11.7 |
% |
|||||||
Engineered Systems |
16.2 |
% |
15.4 |
% |
16.3 |
% |
17.8 |
% |
14.9 |
% |
16.1 |
% |
|||||||
Fluids |
11.5 |
% |
16.1 |
% |
20.0 |
% |
21.3 |
% |
17.6 |
% |
18.7 |
% |
|||||||
Refrigeration & Food Equipment |
10.5 |
% |
9.7 |
% |
14.7 |
% |
15.6 |
% |
10.2 |
% |
12.8 |
% |
|||||||
Total Segment |
11.7 |
% |
13.5 |
% |
15.6 |
% |
17.0 |
% |
13.3 |
% |
14.9 |
% |
|||||||
DEPRECIATION AND AMORTIZATION EXPENSE |
|||||||||||||||||||
Energy |
$ |
34,160 |
$ |
34,427 |
$ |
32,740 |
$ |
31,858 |
$ |
42,754 |
$ |
141,779 |
|||||||
Engineered Systems |
16,036 |
14,526 |
14,392 |
14,503 |
16,493 |
59,914 |
|||||||||||||
Fluids |
20,511 |
13,848 |
13,648 |
13,367 |
15,215 |
56,078 |
|||||||||||||
Refrigeration & Food Equipment |
16,728 |
16,458 |
16,406 |
16,609 |
16,601 |
66,074 |
|||||||||||||
Corporate |
1,169 |
923 |
841 |
837 |
643 |
3,244 |
|||||||||||||
$ |
88,604 |
$ |
80,182 |
$ |
78,027 |
$ |
77,174 |
$ |
91,706 |
$ |
327,089 |
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DOVER CORPORATION |
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QUARTERLY SEGMENT INFORMATION |
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(continued) |
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(unaudited)(in thousands) |
|||||||||||||||||||
2016 |
2015 |
||||||||||||||||||
Q1 |
Q1 |
Q2 |
Q3 |
Q4 |
FY 2015 |
||||||||||||||
BOOKINGS |
|||||||||||||||||||
Energy |
$ |
273,445 |
$ |
416,628 |
$ |
345,079 |
$ |
351,557 |
$ |
315,996 |
$ |
1,429,260 |
|||||||
Engineered Systems |
|||||||||||||||||||
Printing & Identification |
242,569 |
235,617 |
224,203 |
226,756 |
250,639 |
937,215 |
|||||||||||||
Industrials |
329,957 |
337,070 |
336,173 |
338,744 |
357,451 |
1,369,438 |
|||||||||||||
572,526 |
572,687 |
560,376 |
565,500 |
608,090 |
2,306,653 |
||||||||||||||
Fluids |
418,345 |
339,310 |
333,695 |
357,032 |
321,154 |
1,351,191 |
|||||||||||||
Refrigeration & Food Equipment |
411,367 |
419,659 |
486,793 |
430,681 |
379,967 |
1,717,100 |
|||||||||||||
Intra-segment eliminations |
(90) |
(628) |
(417) |
(385) |
(486) |
(1,916) |
|||||||||||||
Total consolidated bookings |
$ |
1,675,593 |
$ |
1,747,656 |
$ |
1,725,526 |
$ |
1,704,385 |
$ |
1,624,721 |
$ |
6,802,288 |
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BACKLOG |
|||||||||||||||||||
Energy |
$ |
144,828 |
$ |
212,060 |
$ |
194,819 |
$ |
156,631 |
$ |
155,586 |
|||||||||
Engineered Systems |
|||||||||||||||||||
Printing & Identification |
102,640 |
108,151 |
103,403 |
100,476 |
98,288 |
||||||||||||||
Industrials |
235,384 |
276,598 |
248,592 |
236,298 |
250,725 |
||||||||||||||
338,024 |
384,749 |
351,995 |
336,774 |
349,013 |
|||||||||||||||
Fluids |
286,457 |
259,504 |
240,389 |
236,608 |
243,459 |
||||||||||||||
Refrigeration & Food Equipment |
303,479 |
337,084 |
373,193 |
307,351 |
247,352 |
||||||||||||||
Intra-segment eliminations |
(36) |
(595) |
(354) |
(598) |
(808) |
||||||||||||||
Total consolidated backlog |
$ |
1,072,752 |
$ |
1,192,802 |
$ |
1,160,042 |
$ |
1,036,766 |
$ |
994,602 |
DOVER CORPORATION |
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QUARTERLY EARNINGS PER SHARE |
|||||||||||||||||||
(unaudited)(in thousands, except per share data*) |
|||||||||||||||||||
2016 |
2015 |
||||||||||||||||||
Q1 |
Q1 |
Q2 |
Q3 |
Q4 |
FY 2015 |
||||||||||||||
Basic earnings (loss) per common share: |
|||||||||||||||||||
Continuing operations |
$ |
0.64 |
$ |
0.72 |
$ |
0.98 |
$ |
1.20 |
$ |
0.88 |
$ |
3.78 |
|||||||
Discontinued operations |
— |
0.57 |
1.11 |
— |
0.03 |
1.74 |
|||||||||||||
Net earnings |
$ |
0.64 |
$ |
1.30 |
$ |
2.10 |
$ |
1.20 |
$ |
0.92 |
$ |
5.52 |
|||||||
Diluted earnings (loss) per common share: |
|||||||||||||||||||
Continuing operations |
$ |
0.64 |
$ |
0.72 |
$ |
0.97 |
$ |
1.19 |
$ |
0.87 |
$ |
3.74 |
|||||||
Discontinued operations |
— |
0.57 |
1.10 |
— |
0.03 |
1.72 |
|||||||||||||
Net earnings |
$ |
0.64 |
$ |
1.28 |
$ |
2.07 |
$ |
1.19 |
$ |
0.91 |
$ |
5.46 |
|||||||
Adjusted diluted earnings per common share (calculated below): |
|||||||||||||||||||
Continuing operations |
$ |
0.52 |
$ |
0.72 |
$ |
0.97 |
$ |
1.14 |
$ |
0.81 |
$ |
3.63 |
|||||||
Net earnings (loss) and average shares used in calculated earnings (loss) per share amounts are as follows: |
|||||||||||||||||||
Net earnings (loss): |
|||||||||||||||||||
Continuing operations |
$ |
99,356 |
$ |
117,190 |
$ |
155,634 |
$ |
186,483 |
$ |
136,574 |
$ |
595,881 |
|||||||
Discontinued operations |
— |
92,320 |
176,762 |
(385) |
5,251 |
273,948 |
|||||||||||||
Net earnings |
$ |
99,356 |
$ |
209,510 |
$ |
332,396 |
$ |
186,098 |
$ |
141,825 |
$ |
869,829 |
|||||||
Average shares outstanding: |
|||||||||||||||||||
Basic |
155,064 |
161,650 |
158,640 |
155,300 |
154,986 |
157,619 |
|||||||||||||
Diluted |
156,161 |
163,323 |
160,398 |
156,560 |
156,254 |
159,172 |
|||||||||||||
Note: |
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Earnings from continuing operations are adjusted by discrete tax items to derive adjusted earnings from continuing operations and adjusted diluted earnings per common share as follows: |
|||||||||||||||||||
2016 |
2015 |
||||||||||||||||||
Q1 |
Q1 |
Q2 |
Q3 |
Q4 |
FY 2015 |
||||||||||||||
Adjusted earnings from continuing operations: |
|||||||||||||||||||
Earnings from continuing operations |
$ |
99,356 |
$ |
117,190 |
$ |
155,634 |
$ |
186,483 |
$ |
136,574 |
$ |
595,881 |
|||||||
Gains from discrete and other tax items |
7,348 |
— |
— |
8,131 |
9,382 |
17,513 |
|||||||||||||
Gain on disposition of business |
11,228 |
— |
— |
— |
— |
— |
|||||||||||||
Adjusted earnings from continuing operations |
$ |
80,780 |
$ |
117,190 |
$ |
155,634 |
$ |
178,352 |
$ |
127,192 |
$ |
578,368 |
|||||||
Adjusted diluted earnings per common share: |
|||||||||||||||||||
Earnings from continuing operations |
$ |
0.64 |
$ |
0.72 |
$ |
0.97 |
$ |
1.19 |
$ |
0.87 |
$ |
3.74 |
|||||||
Gains from discrete and other tax items |
0.05 |
— |
— |
0.05 |
0.06 |
0.11 |
|||||||||||||
Gain on disposition of business |
0.07 |
— |
— |
— |
— |
— |
|||||||||||||
Adjusted earnings from continuing operations |
$ |
0.52 |
$ |
0.72 |
$ |
0.97 |
$ |
1.14 |
$ |
0.81 |
$ |
3.63 |
|||||||
* Per share data may not add due to rounding. |
DOVER CORPORATION |
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ADDITIONAL INFORMATION |
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(unaudited)(in thousands) |
|||||||||||||||||||
Quarterly Free Cash Flow |
|||||||||||||||||||
2016 |
2015 |
||||||||||||||||||
Q1 |
Q1 |
Q2 |
Q3 |
Q4 |
FY 2015 |
||||||||||||||
Cash flow from operating activities |
$ |
133,413 |
$ |
131,332 |
$ |
218,911 |
$ |
282,213 |
$ |
316,603 |
$ |
949,059 |
|||||||
Less: Additions to property, plant and equipment |
(37,230) |
(27,956) |
(43,807) |
(39,516) |
(42,972) |
(154,251) |
|||||||||||||
Free cash flow |
$ |
96,183 |
$ |
103,376 |
$ |
175,104 |
$ |
242,697 |
$ |
273,631 |
$ |
794,808 |
|||||||
Free cash flow as a percentage of earnings from continuing operations |
96.8 |
% |
88.2 |
% |
112.5 |
% |
130.1 |
% |
200.4 |
% |
133.4 |
% |
|||||||
Free cash flow as a percentage of revenue |
5.9 |
% |
6.0 |
% |
10.0 |
% |
13.6 |
% |
16.1 |
% |
11.4 |
% |
Revenue Growth Factors |
|||||||||||||||
Three Months Ended March 31, 2016 |
|||||||||||||||
Energy |
Engineered Systems |
Fluids |
Refrigeration & Food Equipment |
Total |
|||||||||||
Organic |
(33) |
% |
3 |
% |
(3) |
% |
3 |
% |
(7) |
% |
|||||
Acquisitions |
— |
% |
3 |
% |
22 |
% |
— |
% |
6 |
% |
|||||
Dispositions |
— |
% |
(3) |
% |
— |
% |
(5) |
% |
(3) |
% |
|||||
Currency translation |
(1) |
% |
(2) |
% |
(2)% |
(1) |
% |
(1) |
% |
||||||
(34) |
% |
1 |
% |
17 |
% |
(3) |
% |
(5) |
% |
Non-GAAP Disclosures
This release and investor supplement contain non-GAAP measures of adjusted earnings from continuing operations used in calculating adjusted diluted earnings per common share, as management believes this information is useful to investors to better understand the company's ongoing profitability and facilitates easier comparisons of the company's profitability to prior and future periods and to its peers. The company has also disclosed herein a number of non-GAAP measures related to free cash flow and organic revenue growth. Management believes these metrics are important measures of the company's liquidity. Free cash flow information provides both management and investors a measurement of cash generated from operations that is available to fund acquisitions, pay dividends, repay debt and repurchase common stock. We believe that reporting organic revenue and organic revenue growth, which exclude the impact of foreign currency exchange rates and the impact of acquisitions and divestitures, provides a useful comparison of our revenue performance and trends between periods.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/dover-reports-first-quarter-2016-results-and-updates-full-year-guidance-300255216.html
SOURCE
Investor: Paul Goldberg, Vice President - Investor Relations, (212) 922-1640, peg@dovercorp.com, Media: Adrian Sakowicz, Vice President - Communications, (630) 743-5039, asakowicz@dovercorp.com