Dover Corporation · NYSE:DOV
Dover — Q3 2018 Earnings Presentation
22 slides from Dover's earnings presentation, Oct 18, 2018
Slide 1: Earnings Conference Call Third Quarter 2018
Exhibit 99.1 October 18, 2018 – 9:00am CT Earnings Conference Call Third 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: Q3 2018 - Highlights
Q3 2018 - Highlights Revenue is flat at $1.7B Bookings up 3% to $1.7B Organic growth of 3% Organic growth of 6% Adjusted earnings from continuing Adjusted diluted EPS from continuing operations(1) operations(2) Increase of 9% to $203M $1.36 per share, up 14% Diluted EPS from continuing operations on
Slide 4: Q3 2018 – Financial Summary
Q3 2018 – Financial Summary US GAAP from continuing operations Q3 2018 Q3 2017 ∆ Revenue ($M) 1,747 1,748 - Earnings ($M) 157 159 (1%) Diluted EPS ($) 1.05 1.01 4% Non-GAAP (1) from continuing operations Adjusted EBIT – Segment ($M) 274 275 - margin percent 15.7% 15.7% - Adjusted EBITDA – Segment ($
Slide 5: Q3 2018 - Revenue & Bookings
Q3 2018 - Revenue & Bookings Revenue Split Revenue Change in Organic Revenue: +$54M, or 3.1% 4% 13% -2% 3% -1% By 2% -2% Region 53% 21% 9% ($M) US 1,748 35 58 -39 -10 -44 1,747 OTHER AMER. Q3 2017DES DF DRFE FX ACQ./ Q3 2018 ORG. ORG. ORG. DISP. (1) EUROPE ASIA OTHER Bookings Change in Organic Booki
Slide 6: Q3 2018 – Adj. Segment EBIT & EBITDA Walk, and Earnings Walk
Q3 2018 – Adj. Segment EBIT & EBITDA Walk, and Earnings & Adj. Earnings Walk – (Continuing Operations basis) Change in Adjusted Segment EBIT (3) -$1M (0%) A A D 19.5% D 19.8% 15.7% 15.7% 275 71 346 8 9 -23 341 -67 274 ($M) ADJ. EBIT D&A (1) ADJ. EBITDADESDF DRFE ADJ. EBITDA D&A (2) ADJ. EBIT Q3 2017
Slide 7: 9M 2018 – Free Cash Flow
9M 2018 – Free Cash Flow 9M 2018 9M 2017 ∆ Net earnings: $429 $515 ($86) Loss (earnings) from disc. ops.: 4 (58) 63 D&A: 206 212 (6) Gain on disposition: 0 (90) 90 Chg. in working capital: (162) (64) (98) Chg. in accrued & deferred taxes: 0 (38) 38 Chg. in other (1): (58) (23) (35) Cash flow from op
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 ≈152,300 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: 5.2% . Organic growth: 5.7% 671 35-1 -33 672 659 38 -2 -33 662 ($M) Q3 2017 ORG. FX ACQ./ Q3 2018 Q3 2017 ORG.FX ACQ./ Q3 2018 DISP. (2) DISP. (3) (1) Adjusted EBIT, EBITDA & Margin Industrial A
Slide 11: Fluids – Financial Results
Fluids – Financial Results Revenue Bookings Fueling & Transport ($M) . Organic growth: 9.1% . Organic growth: 11.7% 638 58 -8 2 690 655 77 -9 1 724 ($M) Q3 2017 ORG.FX ACQ./ Q3 2018 Q3 2017ORG. FX ACQ./ Q3 2018 Pumps DISP. (2) DISP. (3) Adjusted EBIT, EBITDA & Margin (1) A A D D 21.5% 21.2% . Adjust
Slide 12: Refrigeration & Food Equipment – Financial Results
Refrigeration & Food Equipment – Financial Results Revenue Bookings Refrigeration ($M) . Organic decline: (8.8%) . Organic decline: (4.0%) 439 -390 -13 386 358 -14 0 -11 332 ($M) Q3 2017ORG. FX ACQ./ Q3 2018 Q3 2017ORG. FX ACQ./ Q3 2018 Food Equipment DISP. (2) DISP. (3) Adjusted EBIT, EBITDA & Marg
Slide 13: SG&A Rightsizing update
SG&A Rightsizing update Program Update Q3 Update $ in millions 130 . On track to plan Full Plan % Mix of Gross 30 . $8M in rightsizing benefits Savings Non-Headcount 37% in Q3 SG&A 100 – $16M of incremental benefits expected in Q4 DES 40% Key areas for investment: . $21M(2) of rightsizing costs • Op
Slide 14: 2018 FY Guidance
2018 FY Guidance 14
Slide 15: Updated FY 2018F Guidance
Updated FY 2018F Guidance Engineered Refrigeration 2018 Systems Fluids & Food Equip Total Organic revenue 5% - 6% 6% - 7% (8% - 7%) ≈ 3% Acquisitions - 1% 1% 1% Dispositions (5%) - (2%) (3%) Currency (1) 2% 1% - 1% Total revenue 2% - 3% 8% - 9% (9% - 8%) ≈ 2% Adjusted EPS: $4.80 - $4.85 (1) Dollar/E
Slide 16: Appendix
Appendix 16
Slide 17: Reconciliation of Q3 2018 Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q3 2018 Earnings from Continuing Operations to Adj. EBIT and Adj. EBITDA and calculation of Adj. EBIT margin and Adj. EBITDA margin by Segment (U.S. GAAP) Q3 2018 ($ in millions) DES DF DRFE Total Revenue 672 690 386 1,748 Earnings from continuing operations - - - 157 Add back: Cor
Slide 18: Reconciliation of Q3 2017 Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q3 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) Q3 2017 ($ in millions) DES DF DRFE Total Revenue 671 638 439 1,748 Earnings from continuing operations - - - 159 Add back: Cor
Slide 19: 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) Q3 2018 Q3 2017 Earnings from continuing operations 157 159 Acquisition-related amortization, pre tax 35 38 Acquisition-relate
Slide 20: 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 Sep 30, Sep 30, ($ millions) 2018 2017 Net Cash Provided by Operating Activities 419 454 Capital Expenditures (135) (130) Free Cash Flow 284 32
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, gains on disposition of businesses, disposition costs, and rightsizing and other costs.
Slide 22: Slide 22