Dover Corporation · NYSE:DOV
Dover — Q3 2019 Earnings Presentation
21 slides from Dover's earnings presentation, Oct 17, 2019
Slide 1: Earnings Conference Call Third Quarter 2019
Exhibit 99.2 October 17, 2019 – 9:00am CT Earnings Conference Call Third Quarter 2019
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 2019 - Highlights
Q3 2019 - Highlights Organic revenue growth of 6% Organic bookings growth of 7% Net of 2% unfavorable FX impact Net of 2% unfavorable FX impact Solid growth across DF and DES businesses DF and DES book-to-bill above 1 Adjusted earnings from continuing Adjusted diluted EPS from continuing operations(
Slide 4: Q3 2019 – Financial Summary
Q3 2019 – Financial Summary US GAAP from continuing operations Q3 2019 Q3 2018 ∆ Revenue ($M) 1,825 1,747 +4% Earnings ($M) 206 157 +31% Diluted EPS ($) 1.40 1.05 +33% Non-GAAP(1) from continuing operations Adjusted EBIT – Segment ($M) 320 274 +17% margin percent 17.5% 15.7% +180 bps Adjusted EBITDA
Slide 5: Q3 2019 - Revenue & Bookings
Q3 2019 - Revenue & Bookings Revenue Split Revenue Change in Organic Revenue: +$98M, or 5.6% 4% 13% By Region 54% 21% 8% ($M) US 1,747 42 68 -12 -29 9 1,825 OTHER AMER. Q3 2018 DES DF DRFE FX ACQ./ Q3 2019 ORG. ORG. ORG. DISP. (1) EUROPE ASIA OTHER Bookings Change in Organic Bookings: +$114M, or 6.7
Slide 6: Q3 2019 – Adj. Segment EBIT & EBITDA Walk, and Earnings & Adj. Earnings Walk
Q3 2019 – Adj. Segment EBIT & EBITDA Walk, and Earnings & Adj. Earnings Walk – (Continuing Operations basis) Change in Adjusted Segment EBIT (3) +$46M +17% 21.1% 19.5% 17.5% 15.7% 274 67 341 17 35 -7 385 -65 320 ($M) ADJ. EBIT D&A (1) ADJ. EBITDA DES DF DRFE ADJ. EBITDA D&A (2) ADJ. EBIT Q3 2018 Q3
Slide 7: 9M 2019 – Free Cash Flow
9M 2019 – Free Cash Flow $M 9M 2019 9M 2018 ∆ Net earnings $510 $429 $81 Loss from disc. ops. 0 4 (4) Loss on assets held for sale 47 0 47 D&A 202 206 (4) Chg. in working capital (146) (162) 16 Chg. in other(1) (29) (58) 29 Cash flow from operations $584 419 $165 Capex (137) (135) (3) Free cash flow
Slide 8: Segment Information
Segment Information 8
Slide 9: Engineered Systems – Financial Results
Engineered Systems – Financial Results Revenue Bookings Printing & Identification ($M) . Organic growth: 6.3% . Organic growth: 9.3% . Continued strength in ESG and . Driven by DDP and ESG expected acceleration in DDP 672 42 -12 0 702 662 61 -13 0 711 ($M) Q3 2018 ORG. FX ACQ./ Q3 2019 Q3 2018 ORG.
Slide 10: Fluids – Financial Results
Fluids – Financial Results Revenue Bookings Fueling & Transport ($M) . Organic growth: 9.8% . Organic growth: 8.4% . Continued strength across all businesses 690 68 -13 9 753 724 61 -13 9 780 ($M) Q3 2018 ORG. FX ACQ./ Q3 2019 Q3 2018 ORG. FX ACQ./ Q3 2019 Pumps DISP. (2) DISP. (3) Adjusted EBIT, EB
Slide 11: Refrigeration & Food Equipment – Financial Results
Refrigeration & Food Equipment – Financial Results Revenue Bookings Refrigeration ($M) . Organic change: -3.2% . Organic change: -2.3% . Soft demand in food retail and Asia heat exchangers 386 -12 -3 0 370 332 -8 -1 0 323 ($M) Q3 2018 ORG. FX ACQ./ Q3 2019 Q3 2018 ORG. FX ACQ./ Q3 2019 Food Equipmen
Slide 12: Q3 Adjusted EPS up 18%
Q3 Adjusted EPS up 18% Adjusted EPS(1) ($/share) $1.60 Q3 ’19 impact ($0.01) $0.04 from discrete tax items $0.23 $0.02 Q3 ‘18 $1.36 impact from $0.05 discrete tax items Q3 ’18 Acquisitions / Revenue Growth Corporate, Q3 ’19 Adj. EPS Dispositions / Conversion Shares, and ETR Adj. EPS 60% margin conve
Slide 13: 2019 FY Guidance
2019 FY Guidance 13
Slide 14: Updated FY 2019F Guidance
Updated FY 2019F Guidance Engineered Refrigeration 2019 Systems Fluids & Food Equip Total Organic revenue 4% - 5% ~5% ~Flat 3% - 5% Acquisitions - 2% - 1% Dispositions - (1%) - (0%) Currency (2%) (3%) (1%) (2%) Total revenue 2% - 3% ~4% ~(1%) 2% - 3% Adjusted EPS: $5.82 - $5.85(1) Dollar/Euro assump
Slide 15: Appendix
Appendix 15
Slide 16: Reconciliation of Q3 2019 Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q3 2019 Earnings from Continuing Operations to Adj. EBIT and Adj. EBITDA and calculation of Adj. EBIT margin and Adj. EBITDA margin by Segment (U.S. GAAP) Q3 2019 ($ in millions) DES DF DRFE Total Revenue 702 753 370 1,825 Earnings from continuing operations - - - 206 Add back: Cor
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 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, except per share data) Q3 2019 Q3 2018 Earnings from continuing operations ($) 206 157 Acquisition-related amortization, pre t
Slide 19: Reconciliation of Free Cash Flow and Adjusted EPS Guidance
Reconciliation of Free Cash Flow; and EPS from Continuing Operations to Adjusted EPS from Continuing Operations Reconciliation Free Cash Flow Reconciliation Sep 30, Sep 30, ($ millions) 2019 2018 Net Cash Provided by Operating Activities 584 419 Capital Expenditures (137) (135) Free Cash Flow 447 28
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, rightsizing and other costs and a 2019 loss on assets held for sale. Adjusted Diluted Ea
Slide 21: Slide 21