Dover — Oct 10, 2024 release
Fiscal 2024 third-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0000029905-24-000037
No extracted guidance in this release.
All guidance in this release · 0
Exhibit 99.1 · the passage around this item
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. IS - 16 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. IS - 17
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.