Dover Corporation · NYSE:DOV
Dover — Q1 2018 Earnings Presentation
13 slides from Dover's earnings presentation, Apr 27, 2018
Slide 1: Earnings Conference Call First Quarter 2018
Earnings Conference Call First Quarter 2018 April 27, 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: Q1 2018 Performance
3 Revenue $1.9B 6% EPS $0.84 -23% Adjusted EPS (a) $1.16 26% Bookings $2.1B 4% Segment margin 12.3% -440 bps Adj. seg. margin (b) 12.5% 70 bps Organic Rev. (c) 4% Net Acq. Growth (d) -2% Cash flow from Ops. $35M -55% Adjusted FCF (e) ($3M) -107% $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00
Slide 4: Revenue Q1 2018
4 Revenue Q1 2018 Engineered Systems Fluids Refrigeration & Food Equip Energy Total Dover Organic 8% - -7% 17% 4% Acquisitions - 1% 1% - 1% Dispositions -8% - -1% - -3% Currency 6% 4% 2% 1% 4% Total 6% 5% -5% 18% 6% 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 ongoing conversion to digital printing technology and solid marking & coding markets – Industrial’s growth is broad- based with particularly strong shipments of waste handling equipment Adjusted m
Slide 6: Fluids
6 Fluids Organic revenue is flat – Pumps growth driven by industrial markets – Pharma markets remain very strong – Solid international retail fueling activity, offset by expected tough comps in US EMV activity and soft transport markets Adjusted margin impacted by temporary inefficiencies relate
Slide 7: Refrigeration & Food Equipment
7 Refrigeration & Food Equipment Organic revenue decline reflects tough comps and weak market conditions in retail refrigeration – Within Refrigeration, heat exchanger business performing well Margin reflects reduced volume Organic bookings decline primarily reflects soft retail refrigeration
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 – Automation driven by improved customer capex spending – Industrial winch business remains solid Margin reflects solid conversion on higher
Slide 9: Q1 2018 Overview
9 Q1 2018 Overview 9 Q1 2018 Net Interest Expense $34 million Corporate Expense $42 million, includes separation costs of $12 million and rightsizing Effective Tax Rate (“ETR”) ETR was 22.6%, excluding discrete tax benefits Capex $58 million Share Repurchases 441K shares for $45 million
Slide 10: Updated FY 2018F Guidance - Pro forma - Excluding Apergy
10 Updated FY 2018F Guidance - Pro forma - Excluding Apergy Corporate expense: ≈ $129 million Net interest expense: ≈ $125 million Tax rate: ≈ 22% Capital expenditures: ≈ 2.4% of revenue Adj. free cash flow: ≈ 10% of revenue 2018 Engineered Systems Fluids Refrigeration & Food Equip Total O
Slide 11: Slide 11
Slide 12: Appendix
12 Appendix
Slide 13: Updated Pro forma 2018F EPS guidance - Excluding Apergy
13 Updated Guide (including Apergy) - 2018F EPS Continuing Ops – GAAP: $4.82 - $4.97 – Add back 2018F rightsizing costs (1): 0.05 – Add back acquisition-related amortization (2): 0.95 Updated Guide (including Apergy) - 2018F Adjusted EPS – Continuing Ops: $5.82 - $5.97 – Less 2018F acquisition-r