Dover Corporation · NYSE:DOV
Dover — Q1 2019 Earnings Presentation
21 slides from Dover's earnings presentation, Apr 18, 2019
Slide 1: Earnings Conference Call First Quarter 2019
April 18, 2019 – 9:00am CT Earnings Conference Call First Quarter 2019
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures We want to remind everyone that our comments may contain forward-looking statements that are inherently subject to uncertainties and risks. We caution everyone to be guided in their analysis of Dover Corporation by referring to the documents we file f
Slide 3: Q1 2019 - Highlights
Q1 2019 - Highlights Revenue increases 5% to $1.7B Bookings down 2% to $1.8B Organic growth of 8% Organic bookings were flat Adjusted earnings from continuing Adjusted diluted EPS from continuing operations(1) increase 29% to $182M operations(2) at $1.24, up 38% Earnings from continuing operations o
Slide 4: Q1 2019 – Financial Summary
Q1 2019 – Financial Summary US GAAP from continuing operations Q1 2019 Q1 2018 ∆ Revenue ($M) 1,725 1,638 5% Earnings ($M) 106 109 (3%) Diluted EPS ($) 0.72 0.70 3% Non-GAAP(1) from continuing operations Adjusted EBIT – Segment ($M) 251 202 24% margin percent 14.6% 12.3% 230 bps Adjusted EBITDA – Se
Slide 5: Q1 2019 - Revenue & Bookings
Q1 2019 - Revenue & Bookings Revenue Split Revenue Change in Organic Revenue: +$136M, or 8.3% 4% 11% -2% -2% By 23% Region 54% 8% ($M) US 1,638 39 95 2 -55 6 1,725 OTHER AMER. Q1 2018 DES DF DRFE FX ACQ./ Q1 2019 ORG. ORG. ORG. DISP. (1) EUROPE ASIA OTHER Bookings Change in Organic Bookings: +$2M, o
Slide 6: Q1 2019 – Adj. Segment EBIT & EBITDA Walk, and Earnings
Q1 2019 – Adj. Segment EBIT & EBITDA Walk, and Earnings & Adj. Earnings Walk – (Continuing Operations basis) Change in Adjusted Segment EBIT (3) +$49M +24% 18.4% 16.4% 14.6% 12.3% 67 269 19 32 -3 317 -66 251 ($M) 202 ADJ. EBIT D&A (1) ADJ. EBITDA DES DF DRFE ADJ. EBITDA D&A (2) ADJ. EBIT Q1 2018 Q1
Slide 7: Q1 2019 – Free Cash Flow
Q1 2019 – Free Cash Flow $M Q1 2019 Q1 2018 ∆ Net earnings $106 $131 ($26) Earnings from disc. ops. 0 (22) 22 Loss on assets held for sale 47 0 47 D&A 68 69 (1) Chg. in working capital (138) (47) (90) Chg. in other(1) (58) (115) 59 Cash flow from operations $25 $16 $9 Capex (37) (45) 8 Free cash flo
Slide 8: Segment Information
Segment Information 8
Slide 9: Engineered Systems – Financial Results
Engineered Systems – Financial Results Printing & Identification Revenue Bookings ($M) Organic growth: 5.8% Organic decline: 4.4%, primarily driven by ESG 672 39 -24 0 687 751 -33 -23 0 695 ($M) Q1 2018 ORG. FX ACQ./ Q1 2019 Q1 2018 ORG. FX ACQ./ Q1 2019 DISP. DISP. Adjusted EBIT, EBITDA & Margi
Slide 10: Fluids – Financial Results
Fluids – Financial Results Fueling & Transport Revenue Bookings ($M) Organic growth: 15.1% Organic growth: 4.2% 628 95 -26 6 703 703 29 -29 9 713 ($M) Q1 2018 ORG. FX ACQ./ Q1 2019 Q1 2018 ORG. FX ACQ./ Q1 2019 Pumps DISP. (2) DISP. (3) Adjusted EBIT, EBITDA & Margin (1) 16.5% 19.3% Adjusted E
Slide 11: Refrigeration & Food Equipment – Financial Results
Refrigeration & Food Equipment – Financial Results Refrigeration Revenue Bookings ($M) Organic growth: 0.7% Organic growth: 1.6% 338 2 -6 0 335 373 6 -2 0 377 ($M) Q1 2018 ORG. FX ACQ./ Q1 2019 Q1 2018 ORG. FX ACQ./ Q1 2019 Food Equipment DISP. DISP. Adjusted EBIT, EBITDA & Margin (1) 12.6% 12.0
Slide 12: Q1 Adjusted EPS grew by 38%
Q1 Adjusted EPS grew by 38% Adjusted EPS(1) ($/share) $1.24 Q1 ’19 impact $0.06 from discrete $0.08 tax items $0.10 $0.01 $0.15 Q1 ‘18 $0.90 impact from discrete tax $0.03 items Q1 ’18 SG&A Rightsizing Belanger Revenue Growth Shares and ETR ’Q1 19 Adj. EPS Benefit Acquisition / Conversion Adj. EPS N
Slide 13: 2019 FY Guidance
2019 FY Guidance 13
Slide 14: Updated FY 2019F Guidance
Updated FY 2019F Guidance Engineered Refrigeration 2019 Systems Fluids & Food Equip Total Organic revenue 4% - 5% 4% - 5% 1% - 3% 3% - 5% Acquisitions - 2% - 1% Dispositions - (1%) - (0%) Currency (1%) - (2%) (1%) - (2%) (1%) (1%) - (2%) Total revenue 3% - 4% 4% - 5% 0% - 2% 3% - 4% Adjusted EPS: $5
Slide 15: Appendix
Appendix 15
Slide 16: Reconciliation of Q1 2019 Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q1 2019 Earnings from Continuing Operations to Adj. EBIT and Adj. EBITDA and calculation of Adj. EBIT margin and Adj. EBITDA margin by Segment (U.S. GAAP) Q1 2019 ($ in millions) DES DF DRFE Total Revenue 687 703 335 1,725 Earnings from continuing operations - - - 106 Add back: Cor
Slide 17: Reconciliation of Q1 2018 Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q1 2018 Earnings from Continuing Operations to Adj. EBIT and Adj. EBITDA and calculation of Adj. EBIT margin and Adj. EBITDA margin by Segment (U.S. GAAP) Q1 2018 ($ in millions) DES DF DRFE Total Revenue 672 628 338 1,638 Earnings from continuing operations - - - 109 Add back: Cor
Slide 18: Reconciliation of Adjusted Earnings and Adjusted diluted EPS
Reconciliation of Adjusted Earnings from Continuing Operations to Earnings from Continuing Operations and calculation of Adjusted diluted EPS under U.S. GAAP ($ in millions, except per share data) Q1 2019 Q1 2018 Earnings from continuing operations ($) 106 109 Acquisition-related amortization, pre t
Slide 19: Reconciliation of Free Cash Flow and Adjusted EPS
Reconciliation of Free Cash Flow; and EPS from Continuing Operations to Adjusted EPS from Continuing Operations Reconciliation Free Cash Flow Reconciliation Mar 31, Mar 31, ($ millions) 2019 2018 Net Cash Provided by Operating Activities 25 16 Capital Expenditures (37) (45) Free Cash Flow (13) (29)
Slide 20: Non-GAAP Definitions
Non-GAAP Definitions Definitions of Non-GAAP Measures: Adjusted Earnings from Continuing Operations: is defined as earnings from continuing operations adjusted for the effect of acquisition-related amortization, rightsizing and other costs, and a 2019 loss on assets held for sale. Adjusted Diluted E
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