Dover Corporation · NYSE:DOV
Dover — Q3 2020 Earnings Presentation
20 slides from Dover's earnings presentation, Oct 20, 2020
Slide 1: Earnings Conference Call Third Quarter 2020
Earnings Conference Call Third Quarter 2020 October 20, 2020 – 8:00am CT Exhibit 99.1
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, including the impacts of the novel coronavirus (COVID-19) on the global economy and on our customers, supplie
Slide 3: Summary Corporate Q3 Results and Highlights
3 Summary Corporate Q3 Results and Highlights Q3 2020 Highlights and Comments Revenue change (Y-o-Y) All-in Organic(1) -4% -5% Continued sequential improvement across all segments FX impact: +1%; acquisitions offset dispositions Bookings change (Y-o-Y) All-in Organic(2) -1% -1% Book-to-bill(2)
Slide 4: Segment Revenue, Organic Change and Adjusted EBIT
4 Segment Revenue ($M) / Organic Change % Adj. EBIT % / bps ∆ Y-o-Y Comments DEP $387 -10% 17.4% -20 bps Strength in aerospace & defense and strong recovery in vehicle aftermarket. Weakness in industrial winches. Difficult Y-o-Y comp in waste handling vs. all-time record in Q3 ’19 Modest margin
Slide 5: Revenue & Bookings
5 Q3 2019 Q3 2020 Revenue & Bookings Revenue Change in Organic Revenue(1): -$92M, or -5.1% FXDFS Q3 2020DII DPPS DRFE ACQ./ DISP. (2) Geographic Detail DEPQ3 2019 DFS DII DRFEDPPS FX ACQ./ DISP. (3) Q3 2020 Note: $ in millions. Numbers may not add due to rounding Bookings(4) Change in Organic Bookin
Slide 6: Q3 2020 Adjusted Segment EBIT and Adjusted Net Earnings
6 Q3 2020 Adjusted Segment EBIT and Adjusted Net Earnings SEGMENT EBIT ADJ. EARNINGS RIGHT SIZING GAAP EARNINGS ACQ. AMORT. INT./TAX EXPENSE CORP. EXPENSE ADJ. EARNINGS ACQ. AMORT. RIGHT SIZING ADJ. ON SALE OF CHINO GAAP EARNINGS Change in Adjusted Net Earnings (3) -$3M 206 3 26 235 -1 -6 5 232 -27
Slide 7: Year-to-Date Free Cash Flow
7 Year-to-Date Free Cash Flow 12.3% (1) Includes gain on disposition and loss on assets held for sale (2) Includes stock-based compensation and changes in other current and non-current assets and liabilities (3) Non-GAAP measures (reconciliation on this slide, definitions in appendix) $M YTD ’20 YTD
Slide 8: Trends and Business Outlook
8 Trends and Business Outlook Segment Comments DEP Trajectory stabilized but capital goods ex-auto remains subdued. Improving momentum in industrial automation and continued strength in defense & aerospace. Expect improved orders in waste handling after a market pause Good visibility with majori
Slide 9: FY2020 Guidance Update
9 FY2020 Guidance Update Expect full year Adjusted EBIT margin(2) to be approximately flat year-over-year – Expect favorable FY decremental margin(2) below 20-25% target range communicated previously ~$75M full year permanent cost reduction well above $50M goal at beginning of year – Approximate
Slide 10: Appendix
10 Appendix
Slide 11: Q3 2019 to Q3 2020 Revenue and Bookings Bridges by Segment
11 Q3 2019 to Q3 2020 Revenue and Bookings Bridges by Segment Note: Numbers may not add due to rounding DEP DFS DII DPPS DRFE Total 427 412 275 341 370 1,825 (44) (33) (21) (3) 10 (92) 3 1 - 5 3 12 1 - 12 4 (14) 3 387 381 266 348 368 1,748 DEP DFS DII DPPS DRFE Total 426 451 285 330 323 1,814 (50) (
Slide 12: Q3 2020 Organic Revenue and Bookings Bridges
12 Q3 2020 Organic Revenue and Bookings Bridges Note: Numbers may not add due to rounding Q3 2020 Segment Growth Factors Revenue Growth Bookings Growth -10.4% -11.6% -7.9% -14.2% -7.6% -9.9% -0.9% -3.7% 2.6% 41.3% -5.1% -1.1% 1.0% 0.8% -0.8% -0.6% 0.7% 0.4% Total -4.2% -0.5% Q3 2020 Geographic Reven
Slide 13: Reconciliation of Q3 2020 Net Earnings to Adj. EBIT and Adj. EBITDA
13 Reconciliation of Q3 2020 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment Note: Numbers may not add due to rounding (1) Adjusted depreciation and amortization expense excludes depreciation and amortization included within rightsizing
Slide 14: Reconciliation of Q3 2019 Net Earnings to Adj. EBIT and Adj. EBITDA
14 Reconciliation of Q3 2019 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment Note: Numbers may not add due to rounding DEP DFS DII DPPS DRFE Total 427 412 275 341 370 1,825 - - - - - 206 - - - - - 29 - - - - - 30 - - - - - 52 74 68 62 7
Slide 15: Reconciliation of Free Cash Flow and Decremental Margin
15 Reconciliation of Free Cash Flow and Decremental Margin Note: Numbers may not add due to rounding Decremental Margin Q3 '20 Q3 '19 ∆ 1,748 1,825 (77) 319 320 (1) 2%Decremental Margin ($ in millions) Revenue Adjusted EBIT - Segment ($ millions) Q3 2020 Q3 2019 Q3 YTD 2020 Q3 YTD 2019 Net Cash Prov
Slide 16: Reconciliation of Adjusted Net Earnings and Adjusted Diluted EPS
16 Reconciliation of Adjusted Net Earnings to Net Earnings and Calculation of Adjusted Diluted EPS under U.S. GAAP Note: Numbers may not add due to rounding ($ in millions, except per share data) Q3 2020 Q3 2019 Q3 YTD 2020 Q3 YTD 2019 Net earnings ($) 200 206 501 510 Acquisition-related amortizatio
Slide 17: Reconciliation of EPS to Adjusted EPS Range
17 Reconciliation of EPS to Adjusted EPS Range 2020 Guidance for Earnings per Share (GAAP) $4.52 $4.57 Acquisition-related amortization, net 0.72- Rightsizing and other costs, net 0.19- Gain on disposition, net (0.03) 2020 Guidance for Adjusted Earnings per Share (Non-GAAP) $5.40 $5.45 Note: Numbers
Slide 18: Non-GAAP Definitions
18 Non-GAAP Definitions Definitions of Non-GAAP Measures: Adjusted Net Earnings: is defined as net earnings adjusted for the effect of acquisition-related amortization, rightsizing and other costs, a 2019 loss on assets held for sale and a 2020 gain on disposition. Adjusted Net Earnings Margin: is d
Slide 19: Performance Measure Definitions
19 Performance Measure Definitions Definitions of Performance Measures: Bookings represent total orders received from customers in the current reporting period. This metric is an important measure of performance and an indicator of revenue order trends. Organic Bookings represent total orders receiv
Slide 20: Slide 20