EX-99.12a202410108-kex991prdiscops.htmEX-99.1 Document
DOVER CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)(in thousands, except per share data*)
2024
2023
Q1
Q2
Q2 YTD
Q1
Q2
Q3
Q4
FY 2023
Revenue
$
1,883,719
$
1,948,782
$
3,832,501
$
1,907,429
$
1,913,807
$
1,958,428
$
1,904,812
$
7,684,476
Cost of goods and services
1,186,532
1,196,259
2,382,791
1,205,044
1,206,932
1,219,047
1,185,909
4,816,932
Gross profit
697,187
752,523
1,449,710
702,385
706,875
739,381
718,903
2,867,544
Selling, general and administrative expenses
442,981
429,055
872,036
416,143
415,242
402,838
413,981
1,648,204
Operating earnings
254,206
323,468
577,674
286,242
291,633
336,543
304,922
1,219,340
Interest expense
36,365
32,374
68,739
34,214
33,803
32,390
30,897
131,304
Interest income
(4,756)
(4,081)
(8,837)
(2,091)
(2,653)
(3,808)
(4,944)
(13,496)
(Gain) loss on disposition
(529,943)
663
(529,280)
—
—
—
—
—
Other income, net
(7,139)
(12,845)
(19,984)
(3,807)
(6,677)
(10,274)
(710)
(21,468)
Earnings before provision for income taxes
759,679
307,357
1,067,036
257,926
267,160
318,235
279,679
1,123,000
Provision for income taxes
157,577
60,770
218,347
51,234
50,150
56,252
21,500
179,136
Earnings from continuing operations
602,102
246,587
848,689
206,692
217,010
261,983
258,179
943,864
Earnings from discontinued operations, net
30,119
35,235
65,354
21,882
25,229
27,770
38,083
112,964
Net earnings
$
632,221
$
281,822
$
914,043
$
228,574
$
242,239
$
289,753
$
296,262
$
1,056,828
Basic earnings per share:
Earnings from continuing operations
$
4.33
$
1.79
$
6.14
$
1.48
$
1.55
$
1.87
$
1.85
$
6.75
Earnings from discontinued operations, net
$
0.22
$
0.26
$
0.47
$
0.16
$
0.18
$
0.20
$
0.27
$
0.81
Net earnings
$
4.55
$
2.05
$
6.61
$
1.64
$
1.73
$
2.07
$
2.12
$
7.56
Weighted average shares outstanding
139,051
137,443
138,247
139,757
139,862
139,878
139,893
139,848
Diluted earnings per common share:
Earnings from continuing operations
$
4.30
$
1.78
$
6.10
$
1.47
$
1.54
$
1.86
$
1.84
$
6.71
Earnings from discontinued operations, net
$
0.22
$
0.25
$
0.47
$
0.16
$
0.18
$
0.20
$
0.27
$
0.80
Net earnings
$
4.52
$
2.04
$
6.57
$
1.63
$
1.72
$
2.06
$
2.11
$
7.52
Weighted average shares outstanding
139,869
138,404
139,136
140,616
140,578
140,615
140,586
140,599
Dividends paid per common share
$
0.51
$
0.51
$
1.02
$
0.505
$
0.505
$
0.51
$
0.51
$
2.03
* Per share data may be impacted by rounding.
IS - 1
DOVER CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)(in thousands, except per share data*)
FY 2022
FY 2021
Revenue
$
7,844,174
$
7,361,273
Cost of goods and services
4,939,221
4,522,425
Gross profit
2,904,953
2,838,848
Selling, general and administrative expenses
1,625,312
1,632,926
Operating earnings
1,279,641
1,205,922
Interest expense
116,456
106,316
Interest income
(4,429)
(4,439)
Gain on dispositions
—
(206,338)
Other income, net
(22,589)
(14,839)
Earnings before provision for income taxes
1,190,203
1,325,222
Provision for income taxes
200,291
259,902
Earnings from continuing operations
989,912
1,065,320
Earnings from discontinued operations, net
75,464
58,498
Net earnings
$
1,065,376
$
1,123,818
Basic earnings per share:
Earnings from continuing operations
$
6.94
$
7.40
Earnings from discontinued operations, net
$
0.53
$
0.41
Net earnings
$
7.47
$
7.81
Weighted average shares outstanding
142,681
143,923
Diluted earnings per common share:
Earnings from continuing operations
$
6.89
$
7.33
Earnings from discontinued operations, net
$
0.53
$
0.40
Net earnings
$
7.42
$
7.74
Weighted average shares outstanding
143,595
145,273
Dividends paid per common share
$
2.01
$
1.99
* Per share data may be impacted by rounding.
IS - 2
DOVER CORPORATION
SEGMENT INFORMATION
(unaudited)(in thousands)
2024
2023
Q1
Q2
Q2 YTD
Q1
Q2
Q3
Q4
FY 2023
REVENUE
Engineered Products
$
332,820
$
285,297
$
618,117
$
325,955
$
287,408
$
309,431
$
328,131
$
1,250,925
Clean Energy & Fueling
445,053
463,014
908,067
430,729
441,166
466,959
449,423
1,788,277
Imaging & Identification
276,806
287,593
564,399
283,091
271,932
276,179
285,530
1,116,732
Pumps & Process Solutions
465,729
477,239
942,968
413,881
465,626
431,373
444,811
1,755,691
Climate & Sustainability Technologies
364,292
436,706
800,998
455,325
449,001
475,911
398,345
1,778,582
Intersegment eliminations
(981)
(1,067)
(2,048)
(1,552)
(1,326)
(1,425)
(1,428)
(5,731)
Total consolidated revenue
$
1,883,719
$
1,948,782
$
3,832,501
$
1,907,429
$
1,913,807
$
1,958,428
$
1,904,812
$
7,684,476
EARNINGS FROM CONTINUING OPERATIONS
Segment Earnings:
Engineered Products
$
62,532
$
52,095
$
114,627
$
54,064
$
38,872
$
63,525
$
67,590
$
224,051
Clean Energy & Fueling
69,675
87,536
157,211
73,605
83,616
92,483
78,900
328,604
Imaging & Identification
69,959
75,786
145,745
68,315
61,336
70,316
72,545
272,512
Pumps & Process Solutions
118,737
137,217
255,954
115,244
129,337
117,907
121,917
484,405
Climate & Sustainability Technologies
50,759
79,127
129,886
73,778
76,074
84,060
71,468
305,380
Total segment earnings
371,662
431,761
803,423
385,006
389,235
428,291
412,420
1,614,952
Purchase accounting
expenses 1
44,187
44,332
88,519
40,603
38,644
38,956
40,379
158,582
Restructuring and other costs 2
23,971
11,590
35,561
14,053
18,143
11,581
19,150
62,927
Disposition costs 3
—
—
—
—
—
—
1,302
1,302
(Gain) loss on disposition 4
(529,943)
663
(529,280)
—
—
—
—
—
Corporate expense / other 5
42,159
39,526
81,685
40,301
34,138
30,937
45,957
151,333
Interest expense
36,365
32,374
68,739
34,214
33,803
32,390
30,897
131,304
Interest income
(4,756)
(4,081)
(8,837)
(2,091)
(2,653)
(3,808)
(4,944)
(13,496)
Earnings before provision for income taxes
759,679
307,357
1,067,036
257,926
267,160
318,235
279,679
1,123,000
Provision for income taxes 6
157,577
60,770
218,347
51,234
50,150
56,252
21,500
179,136
Earnings from continuing operations
$
602,102
$
246,587
$
848,689
$
206,692
$
217,010
$
261,983
$
258,179
$
943,864
SEGMENT EARNINGS MARGIN
Engineered Products
18.8 %
18.3 %
18.5 %
16.6 %
13.5 %
20.5 %
20.6 %
17.9 %
Clean Energy & Fueling
15.7 %
18.9 %
17.3 %
17.1 %
19.0 %
19.8 %
17.6 %
18.4 %
Imaging & Identification
25.3 %
26.4 %
25.8 %
24.1 %
22.6 %
25.5 %
25.4 %
24.4 %
Pumps & Process Solutions
25.5 %
28.8 %
27.1 %
27.8 %
27.8 %
27.3 %
27.4 %
27.6 %
Climate & Sustainability Technologies
13.9 %
18.1 %
16.2 %
16.2 %
16.9 %
17.7 %
17.9 %
17.2 %
Total segment earnings margin
19.7 %
22.2 %
21.0 %
20.2 %
20.3 %
21.9 %
21.7 %
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 in our Engineered Products segment.
4 (Gain) loss on disposition including working capital adjustments due to the sale of De-Sta-Co in our 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.
IS - 3
DOVER CORPORATION
SEGMENT INFORMATION
(unaudited)(in thousands)
FY 2022
FY 2021
REVENUE
Engineered Products
$
1,379,512
$
1,234,695
Clean Energy & Fueling
1,878,507
1,648,153
Imaging & Identification
1,123,815
1,163,367
Pumps & Process Solutions
1,728,235
1,708,634
Climate & Sustainability Technologies
1,737,724
1,608,175
Intersegment eliminations
(3,619)
(1,751)
Total consolidated revenue
$
7,844,174
$
7,361,273
EARNINGS FROM CONTINUING OPERATIONS
Segment Earnings:
Engineered Products
$
240,496
$
196,512
Clean Energy & Fueling
352,993
327,186
Imaging & Identification
268,084
266,932
Pumps & Process Solutions
533,018
575,593
Climate & Sustainability Technologies
254,484
185,517
Total segment earnings
1,649,075
1,551,740
Purchase accounting expenses 1
174,397
137,535
Restructuring and other costs 2
36,209
37,242
Loss (gain) on dispositions 3
194
(206,338)
Corporate expense / other 4, 5
136,045
156,202
Interest expense
116,456
106,316
Interest income
(4,429)
(4,439)
Earnings before provision for income taxes
1,190,203
1,325,222
Provision for income taxes
200,291
259,902
Earnings from continuing operations
$
989,912
$
1,065,320
SEGMENT EARNINGS MARGIN
Engineered Products
17.4 %
15.9 %
Clean Energy & Fueling
18.8 %
19.9 %
Imaging & Identification
23.9 %
22.9 %
Pumps & Process Solutions
30.8 %
33.7 %
Climate & Sustainability Technologies
14.6 %
11.5 %
Total segment earnings margin
21.0 %
21.1 %
1 Purchase accounting expenses are primarily comprised of amortization of acquired intangible assets and charges related to fair value step-ups for acquired inventory sold during the period.
2 Restructuring and other costs relate to actions taken for headcount reductions, facility consolidations and site closures, product line exits, and other asset charges.
3 Loss (gain) on dispositions including working capital adjustments related to the sale of Unified Brands in our Climate & Sustainability Technology segment and Race Winning Brands equity method investment in our Engineered Products segment.
4 Certain expenses are maintained at the corporate level and not allocated to the segments. These expenses include executive and functional compensation costs, non-service pension costs, non-operating insurance expenses, shared business services and digital overhead costs, deal-related expenses and various administrative expenses relating to the corporate headquarters.
5 FY 2022 includes a $6.3 million settlement charge related to our U.S qualified defined benefit plan.
IS - 4
DOVER CORPORATION
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
Q3
Q4
FY 2023
Adjusted earnings from continuing operations:
Earnings from continuing operations
$
602,102
$
246,587
$
848,689
$
206,692
$
217,010
$
261,983
$
258,179
$
943,864
Purchase accounting expenses, pre-tax 1
44,187
44,332
88,519
40,603
38,644
38,956
40,379
158,582
Purchase accounting expenses, tax impact 2
(9,711)
(9,760)
(19,471)
(9,140)
(8,671)
(8,670)
(8,847)
(35,328)
Restructuring and other costs, pre-tax 3
23,971
11,590
35,561
14,053
18,143
11,581
19,150
62,927
Restructuring and other costs, tax impact 2
(4,734)
(2,479)
(7,213)
(2,990)
(3,665)
(2,401)
(3,970)
(13,026)
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 earnings from continuing operations
$
240,845
$
290,789
$
531,634
$
249,218
$
261,461
$
301,449
$
305,923
$
1,118,051
Adjusted diluted earnings per share from continuing operations:
Diluted earnings from continuing operations per share
$
4.30
$
1.78
$
6.10
$
1.47
$
1.54
$
1.86
$
1.84
$
6.71
Purchase accounting expenses, pre-tax 1
0.32
0.32
0.64
0.29
0.27
0.28
0.29
1.13
Purchase accounting expenses, tax impact 2
(0.07)
(0.07)
(0.14)
(0.06)
(0.06)
(0.06)
(0.06)
(0.25)
Restructuring and other costs, pre-tax 3
0.17
0.08
0.26
0.10
0.13
0.08
0.14
0.45
Restructuring and other costs, tax impact 2
(0.03)
(0.02)
(0.05)
(0.02)
(0.03)
(0.02)
(0.03)
(0.09)
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 earnings per share from continuing operations
$
1.72
$
2.10
$
3.82
$
1.77
$
1.86
$
2.14
$
2.18
$
7.95
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 $3.4 million and Q3 and FY 2023 include $3.3 million 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 in our Engineered Products segment.
5 (Gain) loss on disposition due to the sale of De-Sta-Co in our Engineered Products segment, including a $0.7 million post-closing adjustment recorded in Q2 2024.
* Per share data and totals may be impacted by rounding.
IS - 5
DOVER CORPORATION
ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE (NON-GAAP)
(unaudited)(in thousands, except per share data*)
Non-GAAP Reconciliations
FY 2022
FY 2021
Adjusted earnings from continuing operations:
Earnings from continuing operations
$
989,912
$
1,065,320
Purchase accounting expenses, pre-tax 1
174,397
137,535
Purchase accounting expenses, tax impact 2
(40,151)
(33,695)
Restructuring and other costs, pre-tax 3
36,209
37,242
Restructuring and other costs, tax impact 2
(7,639)
(7,055)
Loss (gain) on dispositions, pre-tax 4
194
(206,338)
Loss (gain) on dispositions, tax-impact 2
(27)
53,218
Tax Cuts and Jobs Act 5
(22,579)
—
Adjusted earnings from continuing operations
$
1,130,316
$
1,046,227
Adjusted diluted earnings per share from continuing operations:
Diluted earnings from continuing operations per share
$
6.89
$
7.33
Purchase accounting expenses, pre-tax 1
1.21
0.95
Purchase accounting expenses, tax impact 2
(0.28)
(0.23)
Restructuring and other costs, pre-tax 3
0.25
0.26
Restructuring and other costs, tax impact 2
(0.05)
(0.05)
Loss (gain) on dispositions, pre-tax 4
—
(1.42)
Loss (gain) on dispositions, tax-impact 2
—
0.37
Tax Cuts and Jobs Act 5
(0.16)
—
Adjusted diluted earnings per share from continuing operations
$
7.87
$
7.20
1 Purchase accounting expenses are primarily comprised of amortization of intangible assets and charges related to fair value step-ups for acquired inventory sold during the period. FY 2022 includes $20.0 million of amortization of inventory step-up primarily related to the Q4 2021 acquisitions within our Clean Energy & Fueling segment.
2 Adjustments were tax effected using the statutory tax rates in the applicable jurisdictions or the effective tax rate, where applicable, for each period.
3 Restructuring and other costs relate to actions taken for headcount reductions, facility consolidations and site closures, product line exists, and other asset charges. FY 2022 includes $5.5 million of non-cash foreign currency translation losses reclassified to earnings included within restructuring and other costs and $2.1 million related to write-off of assets due to an exit from certain Latin America countries for our Climate & Sustainability Technologies segment. FY 2021 includes a $12.1 million other than temporary impairment charge related to an equity method investment and a $6.1 million write-off of assets incurred in connection with an exit from certain Latin America countries both for our Climate & Sustainability Technologies segment. FY 2021 also includes a $9.1 million payment received for previously incurred restructuring costs related to a product line exit in our Engineered Products segment.
4 FY 2021 represents gain on dispositions of $181.6 million and $24.7 million due to the sales of Unified Brands in our Climate & Sustainability Technologies segment and Race Winning Brands equity method investment in our Engineered Products segment, respectively. FY 2022 represents working capital adjustments related these dispositions.
5 FY 2022 represents a reduction to income taxes previously recorded related to the Tax Cuts and Jobs Act.
* Per share data and totals may be impacted by rounding.
IS - 6
DOVER CORPORATION
ADJUSTED SEGMENT EBITDA (NON-GAAP)
(unaudited)(in thousands)
Non-GAAP Reconciliations
2024
2023
Q1
Q2
Q2 YTD
Q1
Q2
Q3
Q4
FY 2023
ADJUSTED SEGMENT EBITDA
Engineered Products:
Segment earnings
$
62,532
$
52,095
$
114,627
$
54,064
$
38,872
$
63,525
$
67,590
$
224,051
Other depreciation and amortization 1
4,785
4,778
9,563
5,671
5,778
5,736
4,827
22,012
Adjusted segment EBITDA 2
67,317
56,873
124,190
59,735
44,650
69,261
72,417
246,063
Adjusted segment EBITDA margin 2
20.2 %
19.9 %
20.1 %
18.3 %
15.5 %
22.4 %
22.1 %
19.7 %
Clean Energy & Fueling:
Segment earnings
$
69,675
$
87,536
$
157,211
$
73,605
$
83,616
$
92,483
$
78,900
$
328,604
Other depreciation and amortization 1
7,921
7,627
15,548
7,046
7,541
7,686
7,844
30,117
Adjusted segment EBITDA 2
77,596
95,163
172,759
80,651
91,157
100,169
86,744
358,721
Adjusted segment EBITDA margin 2
17.4 %
20.6 %
19.0 %
18.7 %
20.7 %
21.5 %
19.3 %
20.1 %
Imaging & Identification:
Segment earnings
$
69,959
$
75,786
$
145,745
$
68,315
$
61,336
$
70,316
$
72,545
$
272,512
Other depreciation and amortization 1
3,733
3,271
7,004
3,394
3,745
3,972
4,182
15,293
Adjusted segment EBITDA 2
73,692
79,057
152,749
71,709
65,081
74,288
76,727
287,805
Adjusted segment EBITDA margin 2
26.6 %
27.5 %
27.1 %
25.3 %
23.9 %
26.9 %
26.9 %
25.8 %
Pumps & Process Solutions:
Segment earnings
$
118,737
$
137,217
$
255,954
$
115,244
$
129,337
$
117,907
$
121,917
$
484,405
Other depreciation and amortization 1
12,139
12,637
24,776
10,939
11,609
12,052
11,744
46,344
Adjusted segment EBITDA 2
130,876
149,854
280,730
126,183
140,946
129,959
133,661
530,749
Adjusted segment EBITDA margin 2
28.1 %
31.4 %
29.8 %
30.5 %
30.3 %
30.1 %
30.0 %
30.2 %
Climate & Sustainability Technologies:
Segment earnings
$
50,759
$
79,127
$
129,886
$
73,778
$
76,074
$
84,060
$
71,468
$
305,380
Other depreciation and amortization 1
7,275
7,220
14,495
6,624
6,895
6,954
7,084
27,557
Adjusted segment EBITDA 2
58,034
86,347
144,381
80,402
82,969
91,014
78,552
332,937
Adjusted segment EBITDA margin 2
15.9 %
19.8 %
18.0 %
17.7 %
18.5 %
19.1 %
19.7 %
18.7 %
Total Segments:
Total segment earnings 2, 3
$
371,662
$
431,761
$
803,423
$
385,006
$
389,235
$
428,291
$
412,420
$
1,614,952
Other depreciation and amortization 1
35,853
35,533
71,386
33,674
35,568
36,400
35,681
141,323
Total Adjusted segment EBITDA 2
407,515
467,294
874,809
418,680
424,803
464,691
448,101
1,756,275
Total Adjusted segment EBITDA margin 2
21.6 %
24.0 %
22.8 %
21.9 %
22.2 %
23.7 %
23.5 %
22.9 %
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 earnings from continuing operations.
IS - 7
DOVER CORPORATION
ADJUSTED SEGMENT EBITDA (NON-GAAP)
(unaudited)(in thousands)
Non-GAAP Reconciliations
FY 2022
FY 2021
ADJUSTED SEGMENT EBITDA
Engineered Products:
Segment earnings
$
240,496
$
196,512
Other depreciation and amortization 1
22,571
22,712
Adjusted segment EBITDA 2
263,067
219,224
Adjusted segment EBITDA margin 2
19.1 %
17.8 %
Clean Energy & Fueling:
Segment earnings 4
$
352,993
$
327,186
Other depreciation and amortization 1
28,815
25,842
Adjusted segment EBITDA 2
381,808
353,028
Adjusted segment EBITDA margin 2
20.3 %
21.4 %
Imaging & Identification:
Segment earnings
$
268,084
$
266,932
Other depreciation and amortization 1
14,185
14,189
Adjusted segment EBITDA 2
282,269
281,121
Adjusted segment EBITDA margin 2
25.1 %
24.2 %
Pumps & Process Solutions:
Segment earnings
$
533,018
$
575,593
Other depreciation and amortization 1
40,839
39,272
Adjusted segment EBITDA 2
573,857
614,865
Adjusted segment EBITDA margin 2
33.2 %
36.0 %
Climate & Sustainability Technologies:
Segment earnings
$
254,484
$
185,517
Other depreciation and amortization 1
26,204
26,987
Adjusted segment EBITDA 2
280,688
212,504
Adjusted segment EBITDA margin 2
16.2 %
13.2 %
Total Segments:
Total segment earnings 2, 3, 4
$
1,649,075
$
1,551,740
Other depreciation and amortization 1
132,614
129,002
Total Adjusted segment EBITDA 2
1,781,689
1,680,742
Total Adjusted segment EBITDA margin 2
22.7 %
22.8 %
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 earnings from continuing operations.
4 FY 2022 excludes $19.0 million of amortization of inventory step-up related to the Q4 2021 acquisitions within our Clean Energy & Fueling segment.
IS - 8
DOVER CORPORATION
EARNINGS FROM CONTINUING OPERATIONS TO ADJUSTED SEGMENT EBITDA RECONCILIATION (NON-GAAP)
(unaudited)(in thousands)
Non-GAAP Reconciliations
2024
2023
Q1
Q2
Q2 YTD
Q1
Q2
Q3
Q4
FY 2023
Earnings from continuing operations
$
602,102
$
246,587
$
848,689
$
206,692
$
217,010
$
261,983
$
258,179
$
943,864
Provision for income taxes 1
157,577
60,770
218,347
51,234
50,150
56,252
21,500
179,136
Earnings before provision for income taxes
759,679
307,357
1,067,036
257,926
267,160
318,235
279,679
1,123,000
Interest income
(4,756)
(4,081)
(8,837)
(2,091)
(2,653)
(3,808)
(4,944)
(13,496)
Interest expense
36,365
32,374
68,739
34,214
33,803
32,390
30,897
131,304
Corporate expense / other 2
42,159
39,526
81,685
40,301
34,138
30,937
45,957
151,333
Disposition costs 3
—
—
—
—
—
—
1,302
1,302
(Gain) loss on disposition 4
(529,943)
663
(529,280)
—
—
—
—
—
Restructuring and other costs 5
23,971
11,590
35,561
14,053
18,143
11,581
19,150
62,927
Purchase accounting expenses 6
44,187
44,332
88,519
40,603
38,644
38,956
40,379
158,582
Total segment earnings 7
371,662
431,761
803,423
385,006
389,235
428,291
412,420
1,614,952
Add: Other depreciation and amortization 8
35,853
35,533
71,386
33,674
35,568
36,400
35,681
141,323
Total adjusted segment EBITDA 7
$
407,515
$
467,294
$
874,809
$
418,680
$
424,803
$
464,691
$
448,101
$
1,756,275
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 in our Engineered Products segment.
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.
IS - 9
DOVER CORPORATION
EARNINGS FROM CONTINUING OPERATIONS TO ADJUSTED SEGMENT EBITDA RECONCILIATION (NON-GAAP)
(unaudited)(in thousands)
Non-GAAP Reconciliations
FY 2022
FY 2021
Earnings from continuing operations
$
989,912
$
1,065,320
Provision for income taxes
200,291
259,902
Earnings before provision for income taxes
1,190,203
1,325,222
Interest income
(4,429)
(4,439)
Interest expense
116,456
106,316
Corporate expense / other 1,2
136,045
156,202
Loss (gain) on dispositions 3
194
(206,338)
Restructuring and other costs 4
36,209
37,242
Purchase accounting expenses 5
174,397
137,535
Total segment earnings 6
1,649,075
1,551,740
Add: Other depreciation and amortization 7
132,614
129,002
Total adjusted segment EBITDA 6
$
1,781,689
$
1,680,742
1 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.
2 FY 22 includes a $6.3 million settlement charge related to our U.S. qualified benefit plan.
3 Loss (gain) on dispositions including working capital adjustments related to the sale of Unified Brands in our Climate & Sustainability Technology segment and Race Winning Brands equity method investment in our Engineered Products segment.
4 Restructuring and other costs relate to actions taken for headcount reductions, facility consolidations and site closures, product line exits, and other asset charges.
5 Purchase accounting expenses are primarily comprised of amortization of acquired intangible assets and charges related to fair value step-ups for acquired inventory sold during the period.
6 Refer to Non-GAAP Disclosures section for definition.
7 Other depreciation and amortization relates to property, plant, and equipment and intangibles, and excludes amounts related to purchase accounting expenses and restructuring and other costs.
IS - 10
DOVER CORPORATION
REVENUE GROWTH FACTORS RECONCILIATIONS (NON-GAAP)
(unaudited)(in thousands, except per share data*)
Non-GAAP Reconciliations
Revenue Growth Factors
2024
2023
Q1
Q2
Q2 YTD
Q1
Q2
Q3
Q4
FY 2023
Organic
Engineered Products
2.1
%
18.3
%
9.7
%
(0.7)
%
(16.6)
%
(12.0)
%
(7.7)
%
(9.3)
%
Clean Energy & Fueling
1.4
%
2.3
%
1.9
%
(2.6)
%
(9.3)
%
(0.2)
%
(3.5)
%
(4.0)
%
Imaging & Identification
(1.6)
%
6.9
%
2.6
%
8.2
%
0.3
%
(3.6)
%
(3.5)
%
0.2
%
Pumps & Process Solutions
4.5
%
(3.1)
%
0.5
%
(7.1)
%
0.9
%
(7.3)
%
0.5
%
(3.3)
%
Climate & Sustainability Technologies
(20.3)
%
(2.3)
%
(11.4)
%
16.2
%
4.0
%
1.8
%
(10.9)
%
2.4
%
Total Organic
(3.4)
%
3.0
%
(0.2)
%
2.2
%
(4.1)
%
(3.9)
%
(5.2)
%
(2.8)
%
Acquisitions
2.2
%
2.3
%
2.3
%
1.0
%
1.0
%
1.0
%
1.0
%
1.0
%
Dispositions
—
%
(2.8)
%
(1.4)
%
—
%
—
%
—
%
—
%
—
%
Currency translation
—
%
(0.7)
%
(0.4)
%
(2.8)
%
(0.7)
%
1.3
%
1.1
%
(0.2)
%
Total*
(1.2)
%
1.8
%
0.3
%
0.4
%
(3.8)
%
(1.6)
%
(3.1)
%
(2.0)
%
* Totals may be impacted by rounding.
2024
2023
Q1
Q2
Q2 YTD
Q1
Q2
Q3
Q4
FY 2023
Organic
United States
(2.3)
%
9.1
%
3.3
%
1.0
%
(11.5)
%
(10.8)
%
(0.5)
%
(5.7)
%
Other Americas
(6.1)
%
18.2
%
5.9
%
18.4
%
13.7
%
13.9
%
(23.4)
%
3.7
%
Europe
(0.5)
%
(3.8)
%
(2.2)
%
(0.3)
%
(0.9)
%
(5.2)
%
(16.1)
%
(5.7)
%
Asia
(4.8)
%
(8.6)
%
(6.8)
%
(4.0)
%
2.0
%
(3.4)
%
4.8
%
(0.2)
%
Other
(21.6)
%
(28.0)
%
(24.9)
%
20.6
%
32.8
%
72.7
%
26.7
%
38.4
%
Total Organic
(3.4)
%
3.0
%
(0.2)
%
2.2
%
(4.1)
%
(3.9)
%
(5.2)
%
(2.8)
%
Acquisitions
2.2
%
2.3
%
2.3
%
1.0
%
1.0
%
1.0
%
1.0
%
1.0
%
Dispositions
—
%
(2.8)
%
(1.4)
%
—
%
—
%
—
%
—
%
—
%
Currency translation
—
%
(0.7)
%
(0.4)
%
(2.8)
%
(0.7)
%
1.3
%
1.1
%
(0.2)
%
Total*
(1.2)
%
1.8
%
0.3
%
0.4
%
(3.8)
%
(1.6)
%
(3.1)
%
(2.0)
%
* Totals may be impacted by rounding.
IS - 11
DOVER CORPORATION
REVENUE GROWTH FACTORS RECONCILIATIONS (NON-GAAP)
(unaudited)(in thousands, except per share data*)
Non-GAAP Reconciliations
Revenue Growth Factors
FY 2022
FY 2021
Organic
Engineered Products
14.7
%
20.8
%
Clean Energy & Fueling
(0.3)
%
5.8
%
Imaging & Identification
2.9
%
8.0
%
Pumps & Process Solutions
4.1
%
26.6
%
Climate & Sustainability Technologies
18.5
%
22.0
%
Total Organic
7.8
%
16.5
%
Acquisitions
4.6
%
1.3
%
Dispositions
(1.6)
%
(0.2)
%
Currency translation
(4.2)
%
2.1
%
Total*
6.6
%
19.7
%
* Totals may be impacted by rounding.
FY 2022
FY 2021
Organic
United States
7.6
%
17.7
%
Other Americas
7.7
%
12.9
%
Europe
11.7
%
15.5
%
Asia
7.1
%
18.0
%
Other
(11.0)
%
11.6
%
Total Organic
7.8
%
16.5
%
Acquisitions
4.6
%
1.3
%
Dispositions
(1.6)
%
(0.2)
%
Currency translation
(4.2)
%
2.1
%
Total*
6.6
%
19.7
%
* Totals may be impacted by rounding.
IS - 12
DOVER CORPORATION
PERFORMANCE MEASURES
(unaudited)(in thousands)
2024
2023
Q1
Q2
Q2 YTD
Q1
Q2
Q3
Q4
FY 2023
BOOKINGS
Engineered Products
$
329,925
$
280,542
$
610,467
$
329,005
$
297,662
$
330,566
$
312,416
$
1,269,649
Clean Energy & Fueling
471,610
442,086
913,696
454,526
440,137
449,663
401,195
1,745,521
Imaging & Identification
278,433
288,641
567,074
290,712
262,092
271,113
297,312
1,121,229
Pumps & Process Solutions
473,632
461,426
935,058
464,297
394,317
363,111
455,390
1,677,115
Climate & Sustainability Technologies
453,086
406,269
859,355
371,643
310,911
340,474
325,625
1,348,653
Intersegment eliminations
(791)
(1,591)
(2,382)
(1,530)
(1,913)
(848)
(2,100)
(6,391)
Total consolidated bookings
$
2,005,895
$
1,877,373
$
3,883,268
$
1,908,653
$
1,703,206
$
1,754,079
$
1,789,838
$
7,155,776
2024
2023
Q1
Q2
Q2 YTD
Q1
Q2
Q3
Q4
FY 2023
BOOKINGS GROWTH FACTORS
Organic
Engineered Products
0.2
%
11.4
%
5.5
%
(5.8)
%
(9.2)
%
3.0
%
(2.3)
%
(3.7)
%
Clean Energy & Fueling
1.6
%
(1.6)
%
—
%
(6.1)
%
(8.4)
%
3.5
%
(0.1)
%
(3.1)
%
Imaging & Identification
(3.4)
%
11.1
%
3.5
%
(1.8)
%
(8.5)
%
(5.4)
%
7.7
%
(2.1)
%
Pumps & Process Solutions
(4.6)
%
10.5
%
2.3
%
(1.2)
%
(19.4)
%
(15.6)
%
22.6
%
(4.7)
%
Climate & Sustainability Technologies
22.3
%
31.6
%
26.6
%
(11.6)
%
(31.5)
%
(16.8)
%
(14.8)
%
(19.1)
%
Total Organic
3.2
%
11.5
%
7.1
%
(5.4)
%
(16.3)
%
(6.7)
%
2.2
%
(6.9)
%
Acquisitions
2.1
%
2.4
%
2.2
%
1.1
%
0.7
%
0.3
%
0.4
%
0.7
%
Dispositions
—
%
(3.0)
%
(1.4)
%
—
%
—
%
—
%
—
%
—
%
Currency translation
(0.2)
%
(0.7)
%
(0.4)
%
(2.9)
%
(0.8)
%
1.3
%
1.1
%
(0.5)
%
Total*
5.1
%
10.2
%
7.5
%
(7.2)
%
(16.4)
%
(5.1)
%
3.7
%
(6.7)
%
* Totals may be impacted by rounding.
IS - 13
DOVER CORPORATION
PERFORMANCE MEASURES
(unaudited)(in thousands)
FY 2022
FY 2021
BOOKINGS
Engineered Products
$
1,320,288
$
1,398,444
Clean Energy & Fueling
1,821,025
1,742,479
Imaging & Identification
1,154,199
1,190,404
Pumps & Process Solutions
1,709,204
2,023,061
Climate & Sustainability Technologies
1,669,916
2,317,000
Intersegment eliminations
(5,173)
(1,477)
Total consolidated bookings
$
7,669,459
$
8,669,911
FY 2022
FY 2021
BOOKINGS GROWTH FACTORS
Organic
Engineered Products
(4.8)
%
29.1
%
Clean Energy & Fueling
(8.8)
%
11.2
%
Imaging & Identification
2.6
%
7.7
%
Pumps & Process Solutions
(12.8)
%
48.2
%
Climate & Sustainability Technologies
(19.3)
%
53.3
%
Total Organic
(10.3)
%
31.1
%
Acquisitions
3.8
%
1.6
%
Dispositions
(1.6)
%
(0.3)
%
Currency translation
(3.4)
%
2.3
%
Total*
(11.5)
%
34.7
%
* Totals may be impacted by rounding.
IS - 14
DOVER CORPORATION
QUARTERLY CASH FLOW AND FREE CASH FLOW (NON-GAAP)
(unaudited)(in thousands)
Quarterly Cash Flow
2024
2023
2022
Q1
Q2
Q2 YTD
Q1
Q2
Q3
Q4
FY 2023
FY 2022
Net Cash Flows Provided By (Used In):
Operating activities
$
146,456
$
149,181
$
295,637
$
220,240
$
168,947
$
331,795
$
498,564
$
1,219,546
$
746,754
Investing activities
432,416
33,215
465,631
(41,952)
(40,591)
(48,529)
(586,643)
(717,715)
(520,844)
Financing activities
(80,782)
(830,657)
(911,439)
(306,565)
(137,924)
(312,716)
189,149
(568,056)
(260,265)
Quarterly Free Cash Flow (Non-GAAP)
2024
2023
2022
Q1
Q2
Q2 YTD
Q1
Q2
Q3
Q4
FY 2023
FY 2022
Cash flow from operating activities 1
$
146,456
$
149,181
$
295,637
$
220,240
$
168,947
$
331,795
$
498,564
$
1,219,546
$
746,754
Less: Capital expenditures
(40,050)
(35,822)
(75,872)
(46,771)
(38,183)
(41,177)
(57,275)
(183,406)
(211,082)
Free cash flow
$
106,406
$
113,359
$
219,765
$
173,469
$
130,764
$
290,618
$
441,289
$
1,036,140
$
535,672
Cash flow from operating activities as a percentage of revenue
7.8
%
7.7
%
7.7
%
11.5
%
8.8
%
16.9
%
26.2
%
15.9
%
9.5
%
Cash flow from operating activities as a percentage of adjusted earnings from continuing operations
60.8
%
51.3
%
55.6
%
88.4
%
64.6
%
110.1
%
163.0
%
109.1
%
66.1
%
Free cash flow as a percentage of revenue
5.6
%
5.8
%
5.7
%
9.1
%
6.8
%
14.8
%
23.2
%
13.5
%
6.8
%
Free cash flow as a percentage of adjusted earnings from continuing operations
44.2
%
39.0
%
41.3
%
69.6
%
50.0
%
96.4
%
144.2
%
92.7
%
47.4
%
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. FY 2022 includes income tax payments of $43.5 million related to the gain on the disposition of Unified Brands and $13.4 million related to an internal reorganization.
IS - 15
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 earnings from continuing operations, adjusted diluted earnings per share from continuing operations, 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 earnings from continuing operations, 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 from continuing operations 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.
The items described in our definitions herein, unless otherwise noted, relate solely to our continuing operations.
Adjusted earnings from continuing operations represents earnings from continuing operations adjusted for the effect of purchase accounting expenses, restructuring and other costs/benefits, Tax Cuts and Jobs Act, disposition costs and gain/loss on dispositions. 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 earnings per share from continuing operations or adjusted earnings per share from continuing operations represent diluted earnings from continuing operations per share adjusted for the effect of purchase accounting expenses, restructuring and other costs/benefits, Tax Cuts and Jobs Act, disposition costs and gain/loss on dispositions.
Total segment earnings is defined as the sum of earnings before purchase accounting expenses, restructuring and other costs/benefits, disposition costs, gain/loss on dispositions, 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 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 earnings from continuing operations equals free cash flow divided by adjusted earnings from continuing operations. 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.
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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 revenue 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.
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Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 34 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | — | — |
| Buybacks share repurchase, buyback program | 0 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor