Dover Corporation · NYSE:DOV
Dover — Q4 2017 Earnings Presentation
15 slides from Dover's earnings presentation, Jan 30, 2018
Slide 1: Earnings Conference Call Fourth Quarter 2017
Earnings Conference Call Fourth Quarter 2017 January 30, 2018 – 9:00am CT Exhibit 99.2
Slide 2: Forward Looking Statements and Non-GAAP Measures
2 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
Slide 3: Q4 2017 Performance
3 Revenue $2.0B 13% EPS $1.88 83% Adjusted EPS (a) $1.13 49% Bookings $2.0B 13% Segment margin 18.5% 270 bps Adj. seg. margin (b) 14.4% 210 bps Organic Rev. (c) 8% Net Acq. Growth (d) 3% Cash flow from Ops. $320M 11% Adjusted FCF (e) $303M 26% $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 Q1
Slide 4: Revenue Q4 2017
4 Revenue Q4 2017 Engineered Systems Fluids Refrigeration & Food Equip Energy Total Dover Organic 8% 4% 1% 23% 8% Acquisitions 1% 20% - 1% 6% Dispositions -6% - -2% - -3% Currency 4% 2% 1% - 2% Total 7% 26% Flat 24% 13% Note: Columns may not sum due to rounding
Slide 5: Engineered Systems
5 Engineered Systems Organic revenue growth of 8% – Printing & Identification’s solid growth led by marking & coding – Industrial’s strong growth driven by particularly strong shipments of waste handling equipment and robust vehicle service equipment activity Adjusted margin reflects the impact
Slide 6: Fluids
6 Fluids Revenue growth driven by acquisitions and 4% organic growth – Broad-based Pumps growth led by plastics & polymers markets – Hygienic & pharma markets remain strong – Solid global retail fueling markets, partially offset by soft Transport markets Adjusted margin improvement reflects volu
Slide 7: Refrigeration & Food Equipment
7 Refrigeration & Food Equipment Organic revenue growth reflects strong Food Equipment activity – Can-shaping equipment drives revenue growth – Within Refrigeration, Retail refrigeration activity was soft as anticipated, offset in part by strong heat exchanger markets Margin performance reflects
Slide 8: Energy
8 Energy Strong organic revenue growth continues: – Drilling & Production driven by continued improvement in U.S. rig count and increased well completions – Bearings & Compression growth reflects strong compression service activity – Automation driven by improved customer capex spending Adjusted
Slide 9: Q4 2017 Overview
9 Q4 2017 Overview 9 Q4 2017 Net Interest Expense $35 million Corporate Expense $65 million, includes Wellsite separation costs of $14 million and rightsizing and other costs of $16 million Effective Tax Rate (“ETR”) ETR was 24.1%, excluding a $51 million benefit from the Tax Cuts and Jobs Act, and
Slide 10: FY 2018F Guidance
10 FY 2018F Guidance Corporate expense: ≈ $122 million Net interest expense: ≈ $130 million Tax rate: ≈ 22% - 23% Capital expenditures: ≈ 2.4% of revenue Adj. Free cash flow: ≈ 10% - 11% of revenue 2018 Engineered Systems Fluids Refrigeration & Food Equip Energy Total Organic rev. 4% - 5%
Slide 11: Slide 11
Slide 12: Appendix
12 Appendix
Slide 13: 2018 EPS guidance bridge and reconciliation
13 2016 EPS - Continuing Ops (GAAP): $3.25 $3.25 Less: 2016 gain on dispositions (1): (0.44) (0.44) Plus: 2016 charges related to recall: 0.09 0.09 2016 Adjusted EPS: $2.90 $2.90 Lost earnings from 2016 dispositions (2): (0.05) (0.05) Net restructuring (3): 0.08 - .010 0.12 Performance including res
Slide 14: 2018F EPS guidance – Updated bridge and reconciliation
14 2017 Adj. EPS – Before acquisition-related amortization (as reported): $4.03 – Add back 2017 acquisition-related amortization (1): 0.86 2017 Adjusted EPS – New guidance basis $4.89 – Acquisition-related amortization (2): (0.93) – Performance including rightsizing costs & benefits (3): 0.84 -
Slide 15: Supplementary acquisition-related intangible amortization data
15 Supplementary acquisition-related intangible amortization data ACQUISITION-RELATED INTANGIBLES AMORTIZATION Q1 Q2 Q3 Q4 FY 2016 Q1 Q2 Q3 Q4 FY 2017 Engineered Systems $ 11.7 $ 9.5 $ 8.8 $ 17.4 $ 47.3 $ 11.5 $ 11.6 $ 11.4 $ 11.0 $ 45.4 Fluids 17.0 11.3 11.8 15.6 55.6 18.1 17.0 17.2 17.2 69.4 Refri