Dover Corporation · NYSE:DOV
Dover — Q2 2018 Earnings Presentation
21 slides from Dover's earnings presentation, Jul 19, 2018
Slide 1: Second Quarter 2018 Earnings Conference Call
July 19, 2018 – 9:00am CT Earnings Conference Call Second Quarter 2018
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: Q2 2018 - Highlights
Q2 2018 - Highlights Revenue increases 3% to $1.8B Bookings up 6% to $1.9B Organic growth of 3% Organic growth of 6% Adjusted earnings from continuing Adjusted diluted EPS from continuing operations(1) increases 19% to $200M operations(2) at $1.30, up 21% Earnings from continuing operations on a GAA
Slide 4: Q2 2018 – Financial Summary
Q2 2018 – Financial Summary US GAAP from continuing operations Q2 2018 Q2 2017 ∆ Revenue ($M) 1,798 1,737 3% Earnings ($M) 166 142 17% Diluted EPS ($) 1.08 0.90 20% Non-GAAP (1) from continuing operations Adjusted EBIT – Segment ($M) 276 267 3% margin percent 15.3% 15.4% (10 bps) Adjusted EBITDA – S
Slide 5: Q2 2018 - Revenue & Bookings
Q2 2018 - Revenue & Bookings Revenue Split Revenue Change in Organic Revenue: +$60M, or 3.5% 5% 12% By Region 52% 22% 9% ($M) US 1,737 39 44 -24 39 -38 1,798 OTHER AMER. Q2 2017 DES DF DRFE FX ACQ./ Q2 2018 ORG. ORG. ORG. DISP. (1) EUROPE ASIA OTHER Bookings Change in Organic Bookings: +$105M, or 5.
Slide 6: Q2 2018 – Adj. Segment EBIT & EBITDA Walk, and Earnings Walk
Q2 2018 – Adj. Segment EBIT & EBITDA Walk, and Earnings & Adj. Earnings Walk – (Continuing Operations basis) Change in Adjusted Segment EBIT (3) +$8M +3% A A D 19.1% D 19.4% 15.3% 15.4% 267 69 337 15 7 -15 343 -68 276 ($M) ADJ. EBIT D&A (1) ADJ. EBITDA DES DF DRFE ADJ. EBITDA D&A (2) ADJ. EBIT Q2 20
Slide 7: 1H 2018 – Free Cash Flow
1H 2018 – Free Cash Flow 1H 2018 1H 2017 ∆ Net earnings: $271 $336 ($65) Loss (earnings) from disc. ops.: 4 (39) 43 D&A: 138 140 (2) Gain on disposition: 0 (90) 90 Chg. in working capital: (129) (70) (59) Chg. in accrued & deferred taxes: 2 (23) 25 Chg. in other (1): (111) (56) (55) Cash flow from o
Slide 8: Share Repurchase Activity - $1 billion plan
Share Repurchase Activity - $1 billion plan Ending Weighted Average Open Market $ ASR $ Shares ($ in millions) ($ in millions) (Shares in 000’s) FY 2017 $105 $0 157,744 1H 2018 45 700 155,573 2H 2018F 150 0 ≈152,200 16.5% Total Plan $300 $700 12.3% • $1 billion repurchase plan will be completed in 2
Slide 9: Segment Information
Segment Information 9
Slide 10: Engineered Systems – Financial Results
Engineered Systems – Financial Results Revenue Bookings Printing & Identification ($M) . Organic growth: 5.8% . Organic growth: 9.3% 678 39 19 -34 703 675 62 19 -37 720 ($M) Q2 2017 ORG. FX ACQ./ Q2 2018 Q2 2017 ORG. FX ACQ./ Q2 2018 DISP. (2) DISP. (3) (1) Adjusted EBIT, EBITDA & Margin Industrial
Slide 11: Fluids – Financial Results
Fluids – Financial Results Revenue Bookings Fueling & Transport ($M) . . Organic growth: 7.0% Organic growth: 12.7% 633 44 14 3 694 631 80 22 4 737 ($M) Pumps Q2 2017 ORG. FX ACQ./ Q2 2018 Q2 2017 ORG. FX ACQ./ Q2 2018 DISP. (2) DISP. (3) Adjusted EBIT, EBITDA & Margin (1) A A D 19.7% D . Adjusted E
Slide 12: Refrigeration & Food Equipment – Financial Results
Refrigeration & Food Equipment – Financial Results Revenue Bookings Refrigeration ($M) . . Organic decline: (5.6%) Organic decline: (8.1%) 426 -24 6 -6 402 466 -38 4 -4 429 ($M) Q2 2017 ORG. FX ACQ./ Q2 2018 Q2 2017 ORG. FX ACQ./ Q2 2018 Food Equipment DISP. (2) DISP. (3) Adjusted EBIT, EBITDA & Mar
Slide 13: 2018 FY Guidance
2018 FY Guidance 13
Slide 14: Updated FY 2018F Guidance
Updated FY 2018F Guidance Engineered Refrigeration 2018 Systems Fluids & Food Equip Total Organic revenue 4% - 5% 5% - 6% (4% - 3%) 3% - 4% Acquisitions - 1% 1% 1% Dispositions (5%) - (3%) (3%) Currency (1) 2% 1% 1% 1% Total revenue 1% - 2% 7% - 8% (5% - 4%) 2% - 3% Adjusted EPS: $4.75 - $4.85 (2) (
Slide 15: Appendix
Appendix 15
Slide 16: Reconciliation of Q2 2018 Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q2 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) Q2 2018 $ in millions DES DF DRFE Total Revenue 703 694 402 1,798 Earnings from continuing operations - - - 166 Add back: Corpo
Slide 17: Reconciliation of Q2 2017 Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q2 2017 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) Q2 2017 $ in millions DES DF DRFE Total Revenue 678 633 426 1,738 Earnings from continuing operations - - - 142 Add back: Corpo
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 ($ millions) Q2 2018 Q2 2017 Earnings from continuing operations 166 142 Acquisition-related amortization, pre-tax 38 38 Acquisition-related a
Slide 19: Reconciliation of Free Cash Flow and Adjusted EPS Guidance
Reconciliation of Free Cash Flow; and EPS from Continuing Operations to Adjusted EPS from Continuing Operations Reconciliation Free Cash Flow Reconciliation Jun 30, June 30, $ in millions 2018 2017 Net Cash provided by Operating Activities 175 198 Capital Expenditures (96) (79) Free Cash Flow 79 119
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, the Tax Cuts and Jobs Act, gains on disposition of businesses, disposition costs, rights
Slide 21: Slide 21