Dover Corporation · NYSE:DOV
Dover — Q4 2019 Earnings Presentation
22 slides from Dover's earnings presentation, Jan 30, 2020
Slide 1: Earnings Conference Call Fourth Quarter and Full Year 2019
January 30, 2020 – 9:00am CT Earnings Conference Call Fourth Quarter and Full Year 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: Summary Corporate Results and Highlights
Summary Corporate Results and Highlights Q4 2019 FY 2019 Highlights and Comments . Q4 expectedly slower on challenging comparable All-in -2% +2% Revenue growth . Strong year despite macro uncertainty Organic(1) -1% +4% . FX impact: -1% in Q4; -2% for FY19 . Constructive activity across most end mark
Slide 4: Q4 and Full Year 2019 Adjusted Segment Results
Q4 and Full Year 2019 Adjusted Segment Results Q4 2019 (1) FY 2019 (1) Revenue Adj. Revenue Adj. ($M) / EBIT % / ($M) / EBIT % / Comments Segment Organic bps ∆ Organic bps ∆ Growth % Y-o-Y Growth% Y-o-Y . Strength in solid waste handling, vehicle services and aerospace $422 17.7% $1,698 17.4% & defe
Slide 5: Q4 and FY 2019 Revenue & Bookings Geographic Detail
Q4 and FY 2019 Revenue & Bookings Geographic Detail Revenue Change in Organic Revenue(1): -$19M, or -1.1% FY 2019 Organic Rev Growth(1) OTHER 4% 2% ASIA 12% 2% EUROPE 22% 6% 1,809 13 21 -5 -30 -18 -20 5 1,776 ($M) Q4 2018 DEP DFS DII DPPS DRFE FX ACQ./ Q4 2019 ORG. ORG. ORG. ORG. ORG. DISP. (2) OTHE
Slide 6: Q4 2019 Profitability Drivers
Q4 2019 Profitability Drivers Change in Adjusted Segment EBIT (3) +$19M +7% 20.9% 19.5% 17.1% 15.7% 285 67 352 9 17 6 -6 -7 371 -67 304 ($M) ADJ. EBIT D&A (1) ADJ. EBITDA DEP DFS DII DPPS DRFE ADJ. EBITDA D&A (2) ADJ. EBIT Q4 2018 Q4 2019 Change in Adjusted Earnings from Continuing Operations (3) +$
Slide 7: 2019 Free Cash Flow Increased $140 Million
2019 Free Cash Flow Increased $140 Million $M FY 2019 FY 2018 ∆ Net earnings $678 $570 +$108 Adjustments for losses(1) 71 21 +50 D&A 272 283 -10 Chg. in working capital (41) (62) +22 Chg. in other(2) (35) (23) -12 Cash flow from operations $945 $789 +$156 Capex (187) (171) -16 Free cash flow(4) $758
Slide 8: 2019 Adjusted EPS Bridge
2019 Adjusted EPS Bridge Adjusted EPS(1) ($/share) $5.93 ($0.13) $0.20 $0.81 $4.97 $0.08 2018 Acquisitions / Organic FX Corporate, Interest, 2019 Adj. EPS Dispositions Revenue Growth Shares, and ETR Adj. EPS / Conversion 2019 Adjusted EPS up 19% Year-over-Year Note: Numbers may not add due to roundi
Slide 9: FY 2020 Guidance
FY 2020 Guidance Revenue Growth CorporateCorporate Items Items . 2% - 3% all-in . Net interest expense: – Minimal impact from FX – ≈ $102 million and M&A . Tax rate: – ≈ 20% - 22% . 2% - 3% organic(3) . Corporate expenses: – ≈ $135 million EPS Free Cash Flow . Reported: $5.48 - $5.68 . 85 - 90% conv
Slide 10: FY 2020 Revenue Guidance Detail
FY 2020 Revenue Guidance Detail Pumps & Refrig Engineered Fueling Imaging Process & Food Total Products Solutions & ID Solutions Equip. Organic Guidance 3% - 5% 0% - 2% 2% - 3% 3% - 5% 0% - 2% 2% - 3% Acquisitions - 0% - 0% - 0% Dispositions - - - (1%) - 0% Currency 0% (1)% - 0% (1)% - 0% 0% 0% 0% T
Slide 11: Progress in Delivering on Our Commitments
Progress in Delivering on Our Commitments Improve Deploy Capital Maintain Reinvest in Margins and Smartly and Organic Growth the Business Execution Productively ’19 Results . ~$136M SG&A take-out . 4% organic growth(1) in . ~$30M of SG&A savings . Four bolt-on deals FY19 reinvested signed/closed (in
Slide 12: Appendix
Appendix 12
Slide 13: Q4 2018 to Q4 2019 Revenue and Bookings Bridges by Segment
Q4 2018 to Q4 2019 Revenue and Bookings Bridges by Segment Revenue Bridge by Segment ($ in millions) DEP DFS DII DPPS DRFE Total Q4 2018 Revenue 412 415 284 370 327 1,809 Organic Growth 13 21 (5) (30) (18) (19) FX (3) (5) (5) (4) (3) (20) Acquisitions / Dispositions - 14 - (9) - 5 Q4 2019 Revenue 42
Slide 14: FY 2019 Organic Revenue and Bookings Bridges
FY 2019 Organic Revenue and Bookings Bridges FY 2019 Segment Growth Factors Revenue Growth Bookings Growth Organic Engineered Products 5.4% -4.0% Fueling Solutions 10.5% 6.9% Imaging & Identification 1.2% 2.3% Pumps & Process Solutions 3.9% 3.3% Refrigeration & Food Equipment -2.7% -0.7% Total Organ
Slide 15: Reconciliation of Q4 2019 Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q4 2019 Earnings from Continuing Operations to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment Q4 2019 ($ in millions) DEP DFS DII DPPS DRFE Total Revenue 422 445 274 328 306 1,776 Earnings from continuing operations - - - - - 168 Add
Slide 16: Reconciliation of Q4 2018 Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q4 2018 Earnings from Continuing Operations to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment Q4 2018 ($ in millions) DEP DFS DII DPPS DRFE Total Revenue 412 415 284 370 327 1,809 Earnings from continuing operations - - - - - 158 Add
Slide 17: Reconciliation of FY 2019 Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of FY 2019 Earnings from Continuing Operations to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment FY 2019 ($ in millions) DEP DFS DII DPPS DRFE Total Revenue 1,698 1,620 1,084 1,339 1,397 7,136 Earnings from continuing operations - - - -
Slide 18: Reconciliation of FY 2018 Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of FY 2018 Earnings from Continuing Operations to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment FY 2018 ($ in millions) DEP DFS DII DPPS DRFE Total Revenue 1,633 1,466 1,110 1,332 1,453 6,992 Earnings from continuing operations - - - -
Slide 19: Reconciliation of Adjusted Earnings from Continuing Operations 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) Q4 2019 Q4 2018 FY 2019 FY 2018 Earnings from continuing operations ($) 168 158 678 591 Acquisition-rel
Slide 20: Reconciliation of Free Cash Flow and EPS to Adjusted EPS
Reconciliation of Free Cash Flow and EPS from Continuing Operations to Adjusted EPS from Continuing Operations Free Cash Flow Reconciliation ($ millions) Q4 2019 Q4 2018 FY 2019 FY 2018 Net Cash Provided by Operating Activities 361 371 945 789 Capital Expenditures (50) (36) (187) (171) Free Cash Flo
Slide 21: 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, a 2019 loss on debt extinguishment, a 2019 loss on assets h
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