Dover Reports Second Quarter 2024 Results

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Dover Reports Second Quarter 2024 Results

DOWNERS GROVE, Ill., July 25, 2024 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the second quarter ended June 30, 2024. All comparisons are to the comparable period of the prior fiscal year, unless otherwise noted.

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions, except per share data)

2024

2023

% Change*

2024

2023

% Change*

U.S. GAAP

Revenue

$       2,178

$       2,100

4 %

$       4,272

$       4,179

2 %

Net earnings 

282

242

16 %

914

471

94 %

Diluted EPS 

2.04

1.72

19 %

6.57

3.35

96 %













Non-GAAP

Organic revenue change




5 %




2 %

Adjusted net earnings 1

327

288

14 %

600

561

7 %

Adjusted diluted EPS

2.36

2.05

15 %

4.31

3.99

8 %

1 Q2 and year-to-date 2024 and 2023 adjusted net earnings exclude after tax purchase accounting expenses and restructuring and other costs. Year-to-date 2024 excludes the after tax gain on the sale of De-Sta-Co.
* Change may be impacted by rounding.

 

For the quarter ended June 30, 2024, Dover generated revenue of $2.2 billion, an increase of 4% (+5% organic). GAAP net earnings of $282 million increased 16%, and GAAP diluted EPS of $2.04 was up 19%. On an adjusted basis, net earnings of $327 million increased 14% and adjusted diluted EPS of $2.36 was up 15%.

For the six months ended June 30, 2024, Dover generated revenue of $4.3 billion, an increase of 2% (+2% organic) compared to the prior year. GAAP net earnings of $914 million increased by 94%, and GAAP diluted EPS of $6.57 was up 96%. On an adjusted basis, net earnings of $600 million increased 7%, and adjusted diluted EPS of $4.31 was up 8% compared to the prior year.

A full reconciliation between GAAP and adjusted measures and definitions of non-GAAP and other performance measures are included as an exhibit herein.

MANAGEMENT COMMENTARY:

Dover's President and Chief Executive Officer, Richard J. Tobin, said, "Dover's second quarter results were solid, driven by excellent production performance and strong shipment rates on orders received. Volume strength was broad-based across the portfolio, with four of our five operating segments posting top-line growth. Margin expansion was robust during the period due to previous portfolio additions, positive mix impact from our growth platforms, and our rigorous cost containment and productivity actions. Order trends continued their positive trajectory, bolstering our confidence in the second half outlook.

"Our strong operational results were complemented by ongoing portfolio actions. We completed two highly strategic bolt-on acquisitions that enhance our clean energy components platform, adding applications in highly attractive end markets and expanding our global reach and manufacturing base. We also announced the divestiture of our Environmental Solutions Group business unit, reducing our exposure to capital goods as we continue to migrate the portfolio toward high margin priority platforms. Based on the development of our inorganic pipeline over the last few months, we believe we are entering a market with a significant opportunity for capital deployment, with enhanced capacity and optionality from the divestiture proceeds.

"We are approaching the second half of 2024 constructively. Underlying end market demand is healthy and is supported by our sustained order rates. We are committed to achieving our full year guidance through a combination of organic growth, operational execution, and productive capital deployment."

FULL YEAR 2024 GUIDANCE:

In 2024, Dover expects to generate GAAP EPS in the range of $10.80 to $10.95 (adjusted EPS of $9.05 to $9.20), based on full year revenue growth of 3% to 4% (2% to 3% on an organic basis). Full year 2024 guidance includes the Environmental Solutions Group business unit.

CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its second quarter results at 9:30 A.M. Eastern Time (8:30 A.M. Central Time) on Thursday, July 25, 2024. The webcast can be accessed on the Dover website at dovercorporation.com. The conference call will also be made available for replay on the website. Additional information on Dover's results and its operating segments can be found on the Company's website.

ABOUT DOVER:

Dover is a diversified global manufacturer and solutions provider with annual revenue of over $8 billion. We deliver innovative equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services through five operating segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions and Climate & Sustainability Technologies. Dover combines global scale with operational agility to lead the markets we serve. Recognized for our entrepreneurial approach for over 65 years, our team of approximately 25,000 employees takes an ownership mindset, collaborating with customers to redefine what's possible. Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under "DOV."

FORWARD-LOOKING STATEMENTS:

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements in this document other than statements of historical fact are statements that are, or could be deemed, "forward-looking" statements. Forward-looking statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control. Factors that could cause actual results to differ materially from current expectations include, among other things, general economic conditions and conditions in the particular markets in which we operate; supply chain constraints and labor shortages that could result in production stoppages, inflation in material input costs and freight logistics; the impact of interest rate and currency exchange rate fluctuations; the impacts of natural or human-induced disasters, acts of war, terrorism, international conflicts, and public health crises on the global economy and on our customers, suppliers, employees, business and cash flows;  changes in customer demand and capital spending; competitive factors and pricing pressures; our ability to develop and launch new products in a cost-effective manner; our ability to realize synergies from newly acquired businesses; and our ability to derive expected benefits from restructuring, productivity initiatives and other cost reduction actions. For details on the risks and uncertainties that could cause our results to differ materially from the forward-looking statements contained herein, we refer you to the documents we file with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2023, and our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These documents are available from the Securities and Exchange Commission, and on our website, dovercorporation.com. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

 

INVESTOR SUPPLEMENT - SECOND QUARTER 2024

 

DOVER CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

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


Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

Revenue

$          2,178,262

$            2,100,086

$           4,272,203

$           4,179,109

Cost of goods and services

1,356,695

1,341,250

2,693,381

2,673,254

Gross profit

821,567

758,836

1,578,822

1,505,855

Selling, general and administrative expenses

452,193

434,340

915,317

866,754

Operating earnings

369,374

324,496

663,505

639,101

Interest expense

32,374

33,804

68,739

68,018

Interest income

(4,080)

(2,653)

(8,837)

(4,744)

Loss (gain) on disposition

663

—

(529,280)

—

Other income, net

(12,872)

(6,678)

(19,288)

(10,486)

Earnings before provision for income taxes

353,289

300,023

1,152,171

586,313

Provision for income taxes

71,467

57,784

238,128

115,500

Net earnings

$              281,822

$               242,239

$               914,043

$               470,813








Net earnings per share:






Basic

$                    2.05

$                      1.73

$                     6.61

$                     3.37

Diluted

$                    2.04

$                      1.72

$                     6.57

$                     3.35

Weighted average shares outstanding:






Basic

137,443

139,862

138,247

139,810

Diluted

138,404

140,578

139,136

140,597








Dividends paid per common share

$                  0.510

$                    0.505

$                     1.02

$                     1.01








* Per share data may be impacted by rounding.






 

DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)


2024

2023

Q1

Q2

Q2 YTD

Q1

Q2

Q2 YTD

Q3

Q4

FY 2023

REVENUE









Engineered Products

$   543,140

$   514,837

$  1,057,977

$   497,549

$   473,687

$   971,236

$   504,271

$   529,080

$  2,004,587

Clean Energy & Fueling

445,053

463,014

908,067

430,729

441,166

871,895

466,959

449,423

1,788,277

Imaging & Identification

276,806

287,593

564,399

283,091

271,932

555,023

276,179

285,530

1,116,732

Pumps & Process Solutions

465,729

477,239

942,968

413,881

465,626

879,507

431,373

444,811

1,755,691

Climate & Sustainability
Technologies

364,292

436,706

800,998

455,325

449,001

904,326

475,911

398,345

1,778,582

Intersegment eliminations

(1,079)

(1,127)

(2,206)

(1,552)

(1,326)

(2,878)

(1,425)

(1,432)

(5,735)

Total consolidated revenue

$  2,093,941

$  2,178,262

$  4,272,203

$  2,079,023

$  2,100,086

$  4,179,109

$  2,153,268

$  2,105,757

$  8,438,134











NET EARNINGS









Segment Earnings:









Engineered Products

$   103,969

$   101,247

$   205,216

$     84,275

$     73,076

$   157,351

$   101,610

$   118,464

$   377,425

Clean Energy & Fueling

69,675

87,536

157,211

73,605

83,616

157,221

92,483

78,900

328,604

Imaging & Identification

69,959

75,786

145,745

68,315

61,336

129,651

70,316

72,545

272,512

Pumps & Process Solutions

118,737

137,217

255,954

115,244

129,337

244,581

117,907

121,917

484,405

Climate & Sustainability
Technologies

50,759

79,127

129,886

73,778

76,074

149,852

84,060

71,468

305,380

Total segment earnings

413,099

480,913

894,012

415,217

423,439

838,656

466,376

463,294

1,768,326

Purchase accounting

expenses 1

45,551

45,697

91,248

42,679

40,200

82,879

40,320

41,744

164,943

Restructuring and other costs 2

24,684

11,590

36,274

14,053

18,143

32,196

12,327

19,150

63,673

Disposition costs 3

—

—

—

—

—

—

—

1,302

1,302

(Gain) loss on disposition 4

(529,943)

663

(529,280)

—

—

—

—

—

—

Corporate expense

 / other 5

42,317

41,380

83,697

40,072

33,922

73,994

30,686

45,913

150,593

Interest expense

36,365

32,374

68,739

34,214

33,804

68,018

32,389

30,898

131,305

Interest income

(4,757)

(4,080)

(8,837)

(2,091)

(2,653)

(4,744)

(3,808)

(4,944)

(13,496)

Earnings before provision for
income taxes

798,882

353,289

1,152,171

286,290

300,023

586,313

354,462

329,231

1,270,006

Provision for income taxes 6

166,661

71,467

238,128

57,716

57,784

115,500

64,709

32,969

213,178

Net earnings

$   632,221

$   281,822

$   914,043

$   228,574

$   242,239

$   470,813

$   289,753

$   296,262

$  1,056,828











SEGMENT EARNINGS MARGIN







Engineered Products

19.1 %

19.7 %

19.4 %

16.9 %

15.4 %

16.2 %

20.1 %

22.4 %

18.8 %

Clean Energy & Fueling

15.7 %

18.9 %

17.3 %

17.1 %

19.0 %

18.0 %

19.8 %

17.6 %

18.4 %

Imaging & Identification

25.3 %

26.4 %

25.8 %

24.1 %

22.6 %

23.4 %

25.5 %

25.4 %

24.4 %

Pumps & Process Solutions

25.5 %

28.8 %

27.1 %

27.8 %

27.8 %

27.8 %

27.3 %

27.4 %

27.6 %

Climate & Sustainability
Technologies

13.9 %

18.1 %

16.2 %

16.2 %

16.9 %

16.6 %

17.7 %

17.9 %

17.2 %

Total segment earnings margin

19.7 %

22.1 %

20.9 %

20.0 %

20.2 %

20.1 %

21.7 %

22.0 %

21.0 %











1 Purchase accounting expenses are primarily comprised of amortization of acquired intangible assets.

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

3 Q4 and FY 2023 disposition costs relate to the sale of De-Sta-Co.

4 (Gain) loss on disposition due to the sale of De-Sta-Co in the Engineered Products segment.

5 Certain expenses are maintained at the corporate level and not allocated to the segments. These expenses include executive and functional compensation costs, non-service pension costs, non-operating insurance expenses, shared business services and digital overhead costs, deal-related expenses and various administrative expenses relating to the corporate headquarters.

6 Q4 and FY 2023 include the net income tax benefit of internal reorganizations executed in 2023.

 

DOVER CORPORATION

QUARTERLY EARNINGS PER SHARE

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

 

Earnings Per Share










2024

2023

Q1

Q2

Q2 YTD

Q1

Q2

Q2 YTD

Q3

Q4

FY 2023

Net earnings per share:









Basic

$          4.55

$          2.05

$          6.61

$          1.64

$          1.73

$          3.37

$          2.07

$          2.12

$          7.56

Diluted

$          4.52

$          2.04

$          6.57

$          1.63

$          1.72

$          3.35

$          2.06

$          2.11

$          7.52











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

Net earnings

$   632,221

$   281,822

$   914,043

$   228,574

$   242,239

$   470,813

$   289,753

$   296,262

$  1,056,828











Weighted average shares outstanding:






Basic

139,051

137,443

138,247

139,757

139,862

139,810

139,878

139,893

139,848

Diluted

139,869

138,404

139,136

140,616

140,578

140,597

140,615

140,586

140,599











* Per share data may be impacted by rounding.

 

DOVER CORPORATION

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

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

Non-GAAP Reconciliations


2024

2023

Q1

Q2

Q2 YTD

Q1

Q2

Q2 YTD

Q3

Q4

FY 2023

Adjusted net earnings:









Net earnings

$  632,221

$  281,822

$  914,043

$  228,574

$  242,239

$  470,813

$  289,753

$  296,262

$  1,056,828

Purchase accounting expenses, pre-tax 1

45,551

45,697

91,248

42,679

40,200

82,879

40,320

41,744

164,943

Purchase accounting expenses, tax i
mpact 2

(10,005)

(10,053)

(20,058)

(9,599)

(9,012)

(18,611)

(8,966)

(9,143)

(36,720)

Restructuring and other costs, pre-
tax 3

24,684

11,590

36,274

14,053

18,143

32,196

12,327

19,150

63,673

Restructuring and other costs, tax
impact 2

(4,875)

(2,479)

(7,354)

(2,990)

(3,665)

(6,655)

(2,556)

(3,970)

(13,181)

Disposition costs, pre-tax 4

—

—

—

—

—

—

—

1,302

1,302

Disposition costs, tax impact 2

—

—

—

—

—

—

—

(270)

(270)

(Gain) loss on disposition, pre-tax 5

(529,943)

663

(529,280)

—

—

—

—

—

—

(Gain) loss on disposition, tax-
impact 2

114,973

(144)

114,829

—

—

—

—

—

—

Adjusted net earnings

$  272,606

$  327,096

$  599,702

$  272,717

$  287,905

$  560,622

$  330,878

$  345,075

$  1,236,575











Adjusted diluted net earnings per share:







Diluted net earnings per share

$         4.52

$         2.04

$         6.57

$         1.63

$         1.72

$         3.35

$         2.06

$         2.11

$         7.52

Purchase accounting expenses, pre-tax 1

0.33

0.33

0.66

0.30

0.29

0.59

0.29

0.30

1.18

Purchase accounting expenses, tax
impact 2

(0.07)

(0.07)

(0.14)

(0.07)

(0.06)

(0.13)

(0.06)

(0.07)

(0.26)

Restructuring and other costs, pre-
tax 3

0.18

0.08

0.26

0.10

0.13

0.23

0.09

0.14

0.46

Restructuring and other costs, tax
impact 2

(0.03)

(0.02)

(0.05)

(0.02)

(0.03)

(0.05)

(0.02)

(0.03)

(0.10)

Disposition costs, pre-tax 4

—

—

—

—

—

—

—

0.01

0.01

Disposition costs, tax impact 2

—

—

—

—

—

—

—

—

—

(Gain) loss on disposition, pre-tax 5

(3.79)

—

(3.80)

—

—

—

—

—

—

(Gain) loss on disposition, tax-
impact 2

0.82

—

0.83

—

—

—

—

—

—

Adjusted diluted net earnings per
share

$         1.95

$         2.36

$         4.31

$         1.94

$         2.05

$         3.99

$         2.35

$         2.45

$         8.80











1 Purchase accounting expenses are primarily comprised of amortization of acquired intangible assets.

2 Adjustments were tax effected using the statutory tax rates in the applicable jurisdictions or the effective tax rate, where applicable, for each period.

3 Restructuring and other costs relate to actions taken for headcount reductions, facility consolidations and site closures, product line exits, and other asset charges. Q1 and Q2 YTD 2024 include $3.4M and Q3 and FY 2023 include $3.3M of non-cash asset impairment charges for our Climate & Sustainability Technologies segment.

4 Q4 and FY 2023 disposition costs relate to the sale of De-Sta-Co.

5 (Gain) loss on disposition due to the sale of De-Sta-Co in the Engineered Products segment, including a $0.7M post-closing adjustment recorded in Q2 2024.

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

 

DOVER CORPORATION

QUARTERLY ADJUSTED SEGMENT EBITDA (NON-GAAP)

(unaudited)(in thousands)

Non-GAAP Reconciliations

2024

2023

Q1

Q2

Q2 YTD

Q1

Q2

Q2 YTD

Q3

Q4

FY 2023

ADJUSTED SEGMENT EBITDA




















Engineered Products:











Segment earnings

$  103,969

$  101,247

$  205,216

$    84,275

$    73,076

$  157,351

$  101,610

$  118,464

$  377,425

Other depreciation and amortization 1

6,361

6,343

12,704

7,070

7,300

14,370

7,306

6,397

28,073

Adjusted segment EBITDA 2

110,330

107,590

217,920

91,345

80,376

171,721

108,916

124,861

405,498

Adjusted segment EBITDA margin 2

20.3 %

20.9 %

20.6 %

18.4 %

17.0 %

17.7 %

21.6 %

23.6 %

20.2 %











Clean Energy & Fueling:









Segment earnings

$    69,675

$    87,536

$  157,211

$    73,605

$    83,616

$  157,221

$    92,483

$    78,900

$  328,604

Other depreciation and amortization 1

7,921

7,627

15,548

7,046

7,541

14,587

7,686

7,844

30,117

Adjusted segment EBITDA 2

77,596

95,163

172,759

80,651

91,157

171,808

100,169

86,744

358,721

Adjusted segment EBITDA margin 2

17.4 %

20.6 %

19.0 %

18.7 %

20.7 %

19.7 %

21.5 %

19.3 %

20.1 %











Imaging & Identification:









Segment earnings

$    69,959

$    75,786

$  145,745

$    68,315

$    61,336

$  129,651

$    70,316

$    72,545

$  272,512

Other depreciation and amortization 1

3,733

3,271

7,004

3,394

3,745

7,139

3,972

4,182

15,293

Adjusted segment EBITDA 2

73,692

79,057

152,749

71,709

65,081

136,790

74,288

76,727

287,805

Adjusted segment EBITDA margin 2

26.6 %

27.5 %

27.1 %

25.3 %

23.9 %

24.6 %

26.9 %

26.9 %

25.8 %











Pumps & Process Solutions:









Segment earnings

$  118,737

$  137,217

$  255,954

$  115,244

$  129,337

$  244,581

$  117,907

$  121,917

$  484,405

Other depreciation and amortization 1

12,139

12,637

24,776

10,939

11,609

22,548

12,052

11,744

46,344

Adjusted segment EBITDA 2

130,876

149,854

280,730

126,183

140,946

267,129

129,959

133,661

530,749

Adjusted segment EBITDA margin 2

28.1 %

31.4 %

29.8 %

30.5 %

30.3 %

30.4 %

30.1 %

30.0 %

30.2 %











Climate & Sustainability Technologies:








Segment earnings

$    50,759

$    79,127

$  129,886

$    73,778

$    76,074

$  149,852

$    84,060

$    71,468

$  305,380

Other depreciation and amortization 1

7,275

7,220

14,495

6,624

6,895

13,519

6,954

7,084

27,557

Adjusted segment EBITDA 2

58,034

86,347

144,381

80,402

82,969

163,371

91,014

78,552

332,937

Adjusted segment EBITDA margin 2

15.9 %

19.8 %

18.0 %

17.7 %

18.5 %

18.1 %

19.1 %

19.7 %

18.7 %











Total Segments:









Total segment earnings 2, 3

$  413,099

$  480,913

$  894,012

$  415,217

$  423,439

$  838,656

$  466,376

$  463,294

$  1,768,326

Other depreciation and amortization 1

37,429

37,098

74,527

35,073

37,090

72,163

37,970

37,251

147,384

Total Adjusted segment EBITDA 2

450,528

518,011

968,539

450,290

460,529

910,819

504,346

500,545

1,915,710

Total Adjusted segment EBITDA
margin 2

21.5 %

23.8 %

22.7 %

21.7 %

21.9 %

21.8 %

23.4 %

23.8 %

22.7 %











1 Other depreciation and amortization relates to property, plant, and equipment and intangibles, and excludes amounts related to purchase accounting expenses and restructuring and other costs.

2 Refer to Non-GAAP Disclosures section for definition.

3 Refer to Quarterly Segment Information section for reconciliation of total segment earnings to net earnings.

 

DOVER CORPORATION

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

(unaudited)(in thousands)

Non-GAAP Reconciliations

2024

2023

Q1

Q2

Q2 YTD

Q1

Q2

Q2 YTD

Q3

Q4

FY 2023

Net earnings

$   632,221

$   281,822

$   914,043

$   228,574

$   242,239

$   470,813

$   289,753

$   296,262

$  1,056,828

Provision for income taxes 1

166,661

71,467

238,128

57,716

57,784

115,500

64,709

32,969

213,178

Earnings before provision for
income taxes

798,882

353,289

1,152,171

286,290

300,023

586,313

354,462

329,231

1,270,006

Interest income

(4,757)

(4,080)

(8,837)

(2,091)

(2,653)

(4,744)

(3,808)

(4,944)

(13,496)

Interest expense

36,365

32,374

68,739

34,214

33,804

68,018

32,389

30,898

131,305

Corporate expense / other 2

42,317

41,380

83,697

40,072

33,922

73,994

30,686

45,913

150,593

Disposition costs 3

—

—

—

—

—

—

—

1,302

1,302

(Gain) loss on disposition 4

(529,943)

663

(529,280)

—

—

—

—

—

—

Restructuring and other costs 5

24,684

11,590

36,274

14,053

18,143

32,196

12,327

19,150

63,673

Purchase accounting expenses 6

45,551

45,697

91,248

42,679

40,200

82,879

40,320

41,744

164,943

Total segment earnings 7

413,099

480,913

894,012

415,217

423,439

838,656

466,376

463,294

1,768,326

Add: Other depreciation and
amortization 8

37,429

37,098

74,527

35,073

37,090

72,163

37,970

37,251

147,384

Total adjusted segment EBITDA 7

$   450,528

$   518,011

$   968,539

$   450,290

$   460,529

$   910,819

$   504,346

$   500,545

$  1,915,710











1 Q4 and FY 2023 include the net income tax benefit of internal reorganizations executed in 2023.

2 Certain expenses are maintained at the corporate level and not allocated to the segments. These expenses include executive and functional compensation costs, non-service pension costs, non-operating insurance expenses, shared business services and digital overhead costs, deal-related expenses and various administrative expenses relating to the corporate headquarters.

3 Q4 and FY 2023 disposition costs relate to the sale of De-Sta-Co.

4 (Gain) loss on disposition due to the sale of De-Sta-Co in the Engineered Products segment.

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

6 Purchase accounting expenses are primarily comprised of amortization of acquired intangible assets.

7 Refer to Non-GAAP Disclosures section for definition.

8 Other depreciation and amortization relates to property, plant, and equipment and intangibles, and excludes amounts related to purchase accounting expenses and restructuring and other costs.

 

DOVER CORPORATION

REVENUE GROWTH FACTORS AND ADJUSTED EPS GUIDANCE RECONCILIATIONS (NON-GAAP)

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

Non-GAAP Reconciliations

Revenue Growth Factors

2024


Q2

Q2 YTD

Organic



Engineered Products

20.2 %

14.6 %

Clean Energy & Fueling

2.3 %

1.9 %

Imaging & Identification

6.9 %

2.6 %

Pumps & Process Solutions

(3.1) %

0.5 %

Climate & Sustainability Technologies

(2.3) %

(11.4) %

Total Organic

4.8 %

1.8 %

Acquisitions

2.1 %

2.1 %

Dispositions

(2.6) %

(1.3) %

Currency translation

(0.6) %

(0.4) %

Total*

3.7 %

2.2 %

* Totals may be impacted by rounding.



2024


Q2

Q2 YTD

Organic



United States

11.4 %

6.3 %

Other Americas

17.6 %

5.9 %

Europe

(3.8) %

(2.2) %

Asia 

(8.5) %

(6.8) %

Other

(27.8) %

(24.8) %

Total Organic

4.8 %

1.8 %

Acquisitions

2.1 %

2.1 %

Dispositions

(2.6) %

(1.3) %

Currency translation

(0.6) %

(0.4) %

Total*

3.7 %

2.2 %

* Totals may be impacted by rounding.

Adjusted EPS Guidance Reconciliation


Range

2024 Guidance for Earnings per Share (GAAP)

$10.80

$10.95

Purchase accounting expenses, net

1.01

Restructuring and other costs, net

0.24

Gain on disposition, net

(3.00)

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

$9.05

$9.20

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

 

DOVER CORPORATION

QUARTERLY CASH FLOW AND FREE CASH FLOW (NON-GAAP)

(unaudited)(in thousands)

 

Quarterly Cash Flow

2024

2023

Q1

Q2

Q2 YTD

Q1

Q2

Q2 YTD

Q3

Q4

FY 2023

Net Cash Flows Provided By (Used In):






Operating activities

$   166,593

$   203,662

$   370,255

$   241,284

$   195,254

$   436,538

$   383,457

$   516,350

$  1,336,345

Investing activities

429,851

28,165

458,016

(43,556)

(42,454)

(86,010)

(50,243)

(590,377)

(726,630)

Financing activities

(80,782)

(830,657)

(911,439)

(306,565)

(137,924)

(444,489)

(312,716)

189,149

(568,056)

Quarterly Free Cash Flow (Non-GAAP)

2024

2023

Q1

Q2

Q2 YTD

Q1

Q2

Q2 YTD

Q3

Q4

FY 2023

Cash flow from operating
activities 1

$   166,593

$   203,662

$   370,255

$   241,284

$   195,254

$   436,538

$   383,457

$   516,350

$  1,336,345

Less: Capital expenditures

(44,475)

(40,872)

(85,347)

(48,375)

(40,079)

(88,454)

(43,128)

(61,010)

(192,592)

Free cash flow

$   122,118

$   162,790

$   284,908

$   192,909

$   155,175

$   348,084

$   340,329

$   455,340

$  1,143,753











Cash flow from operating
activities as a percentage of
revenue

8.0 %

9.3 %

8.7 %

11.6 %

9.3 %

10.4 %

17.8 %

24.5 %

15.8 %











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

61.1 %

62.3 %

61.7 %

88.5 %

67.8 %

77.9 %

115.9 %

149.6 %

108.1 %











Free cash flow as a percentage
of revenue

5.8 %

7.5 %

6.7 %

9.3 %

7.4 %

8.3 %

15.8 %

21.6 %

13.6 %











Free cash flow as a percentage
of adjusted net earnings

44.8 %

49.8 %

47.5 %

70.7 %

53.9 %

62.1 %

102.9 %

132.0 %

92.5 %











1 Q2 and Q2 YTD 2024 include income tax payments of $56 million related to the gain on the disposition of De-Sta-Co. The remainder of the tax payments on the De-Sta-Co gain will be paid in quarterly installments throughout 2024.

 

DOVER CORPORATION

PERFORMANCE MEASURES

(unaudited)(in thousands)


2024

2023

Q1

Q2

Q2 YTD

Q1

Q2

Q2 YTD

Q3

Q4

FY 2023

BOOKINGS




















Engineered Products

$   541,982

$   581,370

$  1,123,352

$   536,472

$   489,131

$  1,025,603

$   576,641

$   494,528

$  2,096,772

Clean Energy & Fueling

471,610

442,086

913,696

454,526

440,137

894,663

449,663

401,195

1,745,521

Imaging & Identification

278,433

288,641

567,074

290,712

262,092

552,804

271,113

297,312

1,121,229

Pumps & Process Solutions

473,632

461,426

935,058

464,297

394,317

858,614

363,111

455,390

1,677,115

Climate & Sustainability
Technologies

453,086

406,269

859,355

371,643

310,911

682,554

340,474

325,625

1,348,653

Intersegment eliminations

(1,107)

(1,693)

(2,800)

(1,530)

(1,918)

(3,448)

(849)

(2,125)

(6,422)

Total consolidated bookings

$  2,217,636

$  2,178,099

$  4,395,735

$  2,116,120

$  1,894,670

$  4,010,790

$  2,000,153

$  1,971,925

$  7,982,868

 

2024

Q2

Q2 YTD

BOOKINGS GROWTH FACTORS






Organic


Engineered Products

29.3 %

14.5 %

Clean Energy & Fueling

(1.6) %

— %

Imaging & Identification

11.1 %

3.5 %

Pumps & Process Solutions

10.5 %

2.3 %

Climate & Sustainability Technologies

31.6 %

26.6 %

Total Organic

16.1 %

9.2 %

Acquisitions

2.1 %

2.0 %

Dispositions

(2.7) %

(1.3) %

Currency translation

(0.5) %

(0.3) %

Total*

15.0 %

9.6 %

* Totals may be impacted by rounding.


 

Non-GAAP Measures Definitions

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

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

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

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

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

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

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

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

Performance Measures Definitions

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

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

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

Investor Contact:

Media Contact:

Jack Dickens

Adrian Sakowicz

Senior Director - Investor Relations

Vice President - Communications

(630) 743-2566

(630) 743-5039

jdickens@dovercorp.com 

asakowicz@dovercorp.com 

 

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SOURCE Dover