Slide 1: Earnings Conference Call First Quarter 2016
Earnings Conference Call First Quarter 2016 April 21, 2016 – 9:00am CT
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: Q1 2016 Performance
3 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 Q1 Q2 Q3* Q4* Q1* Q1 2016 Performance Adjusted Earnings Per Share* (continuing operations) Q1 Q1/Q1 * Excludes discrete tax benefits of $0.05 in Q3 2015, $0.06 in Q4 2015 and $0.05 in Q1 2016, and $0.07 gain on a disposition in Q1 2016 (b) See Press Releas
Slide 4: Revenue Q1 2016
4 Revenue Q1 2016 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Dover Organic -33% 3% -3% 3% -7% Acquisitions - 3% 22% - 6% Dispositions - -3% - -5% -3% Currency -1% -2% -2% -1% -1% Total -34% 1% 17% -3% -5% * Acquisition revenue less disposition revenue
Slide 5: Energy
5 Energy Revenue decrease driven by declines in oil & gas market fundamentals – US rig count at record lows – Reduced capex spending Adjusted margin of 6.0% reflects volume and price declines Bookings decline of 34% reflects weak market conditions Book-to-bill at 0.97 5 $ in millions * Q1 20
Slide 6: Engineered Systems
6 Engineered Systems Organic revenue growth of 3% – 1% organic growth in P & I driven by solid NA marking and coding markets, partially offset by timing of shipments in digital printing – Industrial’s organic growth of 4% was broad-based Adjusted margin of 16.6% reflects the benefits of producti
Slide 7: Fluids
7 Fluids Revenue growth driven by acquisitions and solid industrial, hygienic and pharma markets, partially offset by – Direct oil & gas exposure – Lower capital spending from integrated energy customers – Project timing Margin significantly impacted by acquisitions and restructuring costs Boo
Slide 8: Refrigeration & Food Equipment
8 Refrigeration & Food Equipment Organic revenue growth of 3% offset by dispositions and FX – Retail refrigeration wins driving organic growth – Glass door and can shaping businesses are solid Margin improvement reflects the benefits of productivity and leverage on organic revenue growth Organ
Slide 9: Q1 2016 Overview
9 Q1 2016 Overview 9 Q1 2016 Net Interest Expense $32 million, in-line with forecast Corporate Expense $30 million, in-line with forecast Effective Tax Rate (ETR) Q4 rate was 27.9%, excluding discrete tax benefits of $0.05 cents. Rate essentially in-line with forecast Capex $37 million, generally in
Slide 10: FY 2016 Guidance
10 FY 2016 Guidance Revenue – Organic revenue: (8% - 5%) – Net acquisitions(1) : ≈ 4% – FX impact: (1%) – Total revenue: (5% - 2%) Corporate expense: ≈ $120 million Interest expense: ≈ $128 million Full-year tax rate: ≈ 28% Capital expenditures: ≈ 2.3% of revenue FY free cash flow: ≈ 11%
Slide 11: 2016F EPS Guidance – Bridge
11 2016F EPS Guidance – Bridge 2015 EPS – Continuing Ops (GAAP) $ 3.74 – Less 2015 tax items(1): (0.11) 2015 Adjusted EPS $ 3.63 – Net restructuring(2): ≈ 0.07 – Performance including restructuring benefits(3): (0.17 - 0.09) – Compensation & investment: (0.22 - 0.19) – Net acquisitions(4): 0.16
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