DOWNERS
GROVE, Ill., Feb. 1, 2024
/PRNewswire/ -- Dover (NYSE: DOV), a diversified global
manufacturer, announced its financial results for the fourth
quarter and full year ended December 31, 2023. All comparisons
are to the comparable period of the prior fiscal year, unless
otherwise noted.
|
|
Three Months Ended
December 31,
|
|
Years Ended December
31,
|
($ in millions,
except per share data)
|
|
2023
|
|
2022
|
|
%
Change
|
|
2023
|
|
2022
|
|
%
Change
|
U.S.
GAAP
|
Revenue
|
|
$
2,106
|
|
$
2,139
|
|
(2) %
|
|
$
8,438
|
|
$
8,508
|
|
(1) %
|
Net
earnings
|
|
296
|
|
264
|
|
12 %
|
|
1,057
|
|
1,065
|
|
(1) %
|
Diluted
EPS
|
|
2.11
|
|
1.87
|
|
13 %
|
|
7.52
|
|
7.42
|
|
1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
Organic revenue
change
|
|
|
|
|
|
(3) %
|
|
|
|
|
|
(1) %
|
Adjusted net earnings
1
|
|
345
|
|
305
|
|
13 %
|
|
1,237
|
|
1,213
|
|
2 %
|
Adjusted diluted
EPS
|
|
2.45
|
|
2.16
|
|
13 %
|
|
8.80
|
|
8.45
|
|
4 %
|
1 Q4 and full year 2023 and
2022 adjusted net earnings exclude after tax purchase accounting
expenses, disposition costs and restructuring and other costs. Q4
and full year 2023 include the net income tax benefit of an
internal reorganization executed in 2023, and full year 2022
excludes a reduction to income taxes previously recorded related to
the Tax Cuts and Jobs Act.
For the quarter ended December 31,
2023, Dover generated revenue of $2.1
billion, a decrease of 2% (-3% organic). GAAP net earnings
of $296 million increased 12%, and
GAAP diluted EPS of $2.11 was up 13%.
On an adjusted basis, net earnings of $345
million increased 13% and adjusted diluted EPS of
$2.45 was up 13%.
For the year ended December 31,
2023, Dover generated revenue of $8.4
billion, a decrease of 1% (-1% organic). GAAP net earnings
of $1.1 billion decreased 1%, and
GAAP diluted EPS of $7.52 was up 1%.
On an adjusted basis, net earnings of $1.2
billion increased 2%, and adjusted diluted EPS of
$8.80 was up 4%.
A full reconciliation between GAAP and adjusted measures and
definitions of non-GAAP and other performance measures are included
as an exhibit herein.
MANAGEMENT COMMENTARY:
Dover's President and Chief Executive Officer, Richard J. Tobin, said, "The fourth quarter
market conditions and our business posture were in line with our
forecasts. In the end markets where secular demand trends inflected
positively, such as CO2 refrigeration systems,
waste handling and precision components, we were able to capitalize
on the market conditions and drive margin mix higher benefiting the
consolidated portfolio in the quarter. We reduced production
volumes in certain product lines in line with our mid-year
forecasts in response to destocking trends that resulted from lead
time normalization and higher inventory carrying costs driven by
interest rate increases. We believe these proactive actions
balanced channel inventories in the majority of our markets with
forecasted demand for 2024. This operating posture drove an
exemplary operating cash flow performance in the quarter and
positions us to match production performance with prevailing demand
in the coming year.
"Our solid operational execution was complemented by active
portfolio enhancement in line with the priorities we reiterated at
our investor day last March. In the past few months we completed
several accretive and synergistic bolt-on acquisitions that improve
our revenue mix with high-growth recurring and software revenue
streams. We anticipate completing the De-Sta-Co sale by the end of
the first quarter. Bolstered by our proactive working capital
management and margin enhancement, we enter 2024 with a strong
balance sheet and ample capacity to execute against a strong
acquisition pipeline and pursue opportunistic capital return
strategies, as we continue our portfolio enhancement strategy.
"We have a constructive outlook for 2024. We expect demand
conditions to progressively improve from the fourth quarter exit
rate through the year on solid underlying end markets across most
of the portfolio, supported by the recent positive year-over-year
order momentum. There is significant runway in our margin
improvement plan with numerous cost and performance levers
available to continue driving strong margin conversion. With this
backdrop, we are confident in our ability to continue to deliver
long-term value creation for our shareholders through a combination
of accretive top line growth, capital allocation, and portfolio
enhancement."
FULL YEAR 2024 GUIDANCE:
In 2024, Dover expects to generate GAAP EPS in the range of
$7.90 to $8.10 (adjusted EPS of $8.95 to $9.15),
based on full year revenue growth of 2% to 4% (1% to 3% on an
organic basis).
CONFERENCE CALL INFORMATION:
Dover will host a webcast and conference call to discuss its
fourth quarter and full year 2023 results at 9:30 A.M. Eastern Time (8:30 A.M. Central Time) on Thursday,
February 1, 2024. The webcast can be accessed on the Dover
website at dovercorporation.com. The conference call will also be
made available for replay on the website. Additional information on
Dover's results and its operating segments can be found on the
Company's website.
ABOUT DOVER:
Dover is a diversified global manufacturer and solutions
provider with annual revenue of over $8
billion. We deliver innovative equipment and components,
consumable supplies, aftermarket parts, software and digital
solutions, and support services through five operating segments:
Engineered Products, Clean Energy & Fueling, Imaging &
Identification, Pumps & Process Solutions and Climate &
Sustainability Technologies. Dover combines global scale with
operational agility to lead the markets we serve. Recognized for
our entrepreneurial approach for over 65 years, our team of over
25,000 employees takes an ownership mindset, collaborating with
customers to redefine what's possible. Headquartered in
Downers Grove, Illinois, Dover
trades on the New York Stock Exchange under "DOV." Additional
information is available at dovercorporation.com.
FORWARD-LOOKING STATEMENTS:
This press release contains "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended. All statements in this document other than
statements of historical fact are statements that are, or could be
deemed, "forward-looking" statements. Forward-looking statements
are subject to numerous important risks, uncertainties, assumptions
and other factors, some of which are beyond the Company's control.
Factors that could cause actual results to differ materially from
current expectations include, among other things, general economic
conditions and conditions in the particular markets in which we
operate; supply chain constraints and labor shortages that could
result in production stoppages, inflation in material input costs
and freight logistics; the impact of interest rate and currency
exchange rate fluctuations; the impacts of natural or human-induced
disasters, acts of war, terrorism, international conflicts, and
public health crises on the global economy and on our customers,
suppliers, employees, business and cash flows; changes in
customer demand and capital spending; competitive factors and
pricing pressures; our ability to develop and launch new products
in a cost-effective manner; our ability to realize synergies from
newly acquired businesses; and our ability to derive expected
benefits from restructuring, productivity initiatives and other
cost reduction actions. For details on the risks and uncertainties
that could cause our results to differ materially from the
forward-looking statements contained herein, we refer you to the
documents we file with the Securities and Exchange Commission,
including our Annual Report on Form 10-K for the year ended
December 31, 2022, and our Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. These
documents are available from the Securities and Exchange
Commission, and on our website, dovercorporation.com. The Company
undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
INVESTOR SUPPLEMENT
- FOURTH QUARTER AND FULL YEAR 2023
|
|
DOVER
CORPORATION
|
CONSOLIDATED
STATEMENTS OF EARNINGS
|
(unaudited)(in
thousands, except per share data*)
|
|
|
Three Months Ended
December 31,
|
|
Years Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
$
2,105,757
|
|
$
2,139,181
|
|
$
8,438,134
|
|
$
8,508,088
|
Cost of goods and
services
|
1,319,994
|
|
1,372,852
|
|
5,353,501
|
|
5,444,532
|
Gross
profit
|
785,763
|
|
766,329
|
|
3,084,633
|
|
3,063,556
|
Selling, general and
administrative expenses
|
431,291
|
|
413,611
|
|
1,718,290
|
|
1,684,226
|
Operating
earnings
|
354,472
|
|
352,718
|
|
1,366,343
|
|
1,379,330
|
Interest
expense
|
30,898
|
|
33,126
|
|
131,305
|
|
116,456
|
Interest
income
|
(4,944)
|
|
(1,462)
|
|
(13,496)
|
|
(4,430)
|
Other income,
net
|
(713)
|
|
(2,359)
|
|
(21,472)
|
|
(20,201)
|
Earnings before
provision for income taxes
|
329,231
|
|
323,413
|
|
1,270,006
|
|
1,287,505
|
Provision for income
taxes
|
32,969
|
|
59,834
|
|
213,178
|
|
222,129
|
Net
earnings
|
$
296,262
|
|
$
263,579
|
|
$
1,056,828
|
|
$
1,065,376
|
|
|
|
|
|
|
|
|
Net earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
2.12
|
|
$
1.88
|
|
$
7.56
|
|
$
7.47
|
Diluted
|
$
2.11
|
|
$
1.87
|
|
$
7.52
|
|
$
7.42
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
139,893
|
|
140,343
|
|
139,848
|
|
142,681
|
Diluted
|
140,586
|
|
141,168
|
|
140,599
|
|
143,595
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
$
0.51
|
|
$
0.505
|
|
$
2.03
|
|
$
2.01
|
|
|
|
|
|
|
|
|
* Per share data may be
impacted by rounding.
|
|
|
|
|
|
|
|
DOVER
CORPORATION
|
QUARTERLY SEGMENT
INFORMATION
|
(unaudited)(in
thousands)
|
|
|
2023
|
|
2022
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2023
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2022
|
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
$
497,549
|
$
473,687
|
$
504,271
|
$
529,080
|
$
2,004,587
|
|
$
487,647
|
$
514,436
|
$
516,501
|
$
525,048
|
$
2,043,632
|
Clean Energy &
Fueling
|
430,729
|
441,166
|
466,959
|
449,423
|
1,788,277
|
|
458,395
|
494,075
|
464,022
|
462,015
|
1,878,507
|
Imaging &
Identification
|
283,091
|
271,932
|
276,179
|
285,530
|
1,116,732
|
|
272,255
|
275,951
|
282,371
|
293,238
|
1,123,815
|
Pumps & Process
Solutions
|
413,881
|
465,626
|
431,373
|
444,811
|
1,755,691
|
|
435,195
|
441,127
|
433,558
|
418,355
|
1,728,235
|
Climate &
Sustainability Technologies
|
455,325
|
449,001
|
475,911
|
398,345
|
1,778,582
|
|
399,078
|
434,164
|
462,671
|
441,811
|
1,737,724
|
Intersegment
eliminations
|
(1,552)
|
(1,326)
|
(1,425)
|
(1,432)
|
(5,735)
|
|
(669)
|
(1,038)
|
(832)
|
(1,286)
|
(3,825)
|
Total consolidated
revenue
|
$ 2,079,023
|
$
2,100,086
|
$
2,153,268
|
$ 2,105,757
|
$
8,438,134
|
|
$
2,051,901
|
$ 2,158,715
|
$
2,158,291
|
$
2,139,181
|
$
8,508,088
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
$ 84,275
|
$ 73,076
|
$
101,610
|
$
118,464
|
$
377,425
|
|
$ 71,130
|
$ 81,671
|
$ 90,145
|
$
103,573
|
$
346,519
|
Clean Energy &
Fueling
|
73,605
|
83,616
|
92,483
|
78,900
|
328,604
|
|
72,962
|
99,034
|
90,208
|
90,789
|
352,993
|
Imaging &
Identification
|
68,315
|
61,336
|
70,316
|
72,545
|
272,512
|
|
58,598
|
61,392
|
74,477
|
73,617
|
268,084
|
Pumps & Process
Solutions
|
115,244
|
129,337
|
117,907
|
121,917
|
484,405
|
|
146,617
|
138,048
|
128,573
|
119,780
|
533,018
|
Climate &
Sustainability Technologies
|
73,778
|
76,074
|
84,060
|
71,468
|
305,380
|
|
53,609
|
64,181
|
75,190
|
61,504
|
254,484
|
Total segment
earnings
|
415,217
|
423,439
|
466,376
|
463,294
|
1,768,326
|
|
402,916
|
444,326
|
458,593
|
449,263
|
1,755,098
|
Purchase
accounting
expenses
1
|
42,679
|
40,200
|
40,320
|
41,744
|
164,943
|
|
53,286
|
47,019
|
40,526
|
40,272
|
181,103
|
Restructuring and other
costs 2
|
14,053
|
18,143
|
12,327
|
19,150
|
63,673
|
|
10,552
|
7,944
|
8,613
|
11,881
|
38,990
|
Disposition costs
3
|
—
|
—
|
—
|
1,302
|
1,302
|
|
194
|
—
|
—
|
—
|
194
|
Corporate
expense
/ other
4
|
40,072
|
33,922
|
30,686
|
45,913
|
150,593
|
|
37,404
|
27,967
|
27,876
|
42,033
|
135,280
|
Interest
expense
|
34,214
|
33,804
|
32,389
|
30,898
|
131,305
|
|
26,552
|
26,989
|
29,789
|
33,126
|
116,456
|
Interest
income
|
(2,091)
|
(2,653)
|
(3,808)
|
(4,944)
|
(13,496)
|
|
(775)
|
(949)
|
(1,244)
|
(1,462)
|
(4,430)
|
Earnings before
provision for income taxes
|
286,290
|
300,023
|
354,462
|
329,231
|
1,270,006
|
|
275,703
|
335,356
|
353,033
|
323,413
|
1,287,505
|
Provision for income
taxes 5
|
57,716
|
57,784
|
64,709
|
32,969
|
213,178
|
|
49,550
|
45,738
|
67,007
|
59,834
|
222,129
|
Net earnings
|
$
228,574
|
$
242,239
|
$
289,753
|
$
296,262
|
$
1,056,828
|
|
$
226,153
|
$
289,618
|
$
286,026
|
$
263,579
|
$
1,065,376
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT EARNINGS
MARGIN
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
16.9 %
|
15.4 %
|
20.1 %
|
22.4 %
|
18.8 %
|
|
14.6 %
|
15.9 %
|
17.5 %
|
19.7 %
|
17.0 %
|
Clean Energy &
Fueling
|
17.1 %
|
19.0 %
|
19.8 %
|
17.6 %
|
18.4 %
|
|
15.9 %
|
20.0 %
|
19.4 %
|
19.7 %
|
18.8 %
|
Imaging &
Identification
|
24.1 %
|
22.6 %
|
25.5 %
|
25.4 %
|
24.4 %
|
|
21.5 %
|
22.2 %
|
26.4 %
|
25.1 %
|
23.9 %
|
Pumps & Process
Solutions
|
27.8 %
|
27.8 %
|
27.3 %
|
27.4 %
|
27.6 %
|
|
33.7 %
|
31.3 %
|
29.7 %
|
28.6 %
|
30.8 %
|
Climate &
Sustainability Technologies
|
16.2 %
|
16.9 %
|
17.7 %
|
17.9 %
|
17.2 %
|
|
13.4 %
|
14.8 %
|
16.3 %
|
13.9 %
|
14.6 %
|
Total segment earnings
margin
|
20.0 %
|
20.2 %
|
21.7 %
|
22.0 %
|
21.0 %
|
|
19.6 %
|
20.6 %
|
21.2 %
|
21.0 %
|
20.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Purchase
accounting expenses are primarily comprised of amortization of
intangible assets and charges related to fair value step-ups for
acquired inventory sold during the period.
|
2
Restructuring and other costs relate to actions taken for headcount
reductions, facility consolidations and site closures, product line
exits, and other asset charges.
|
3 Q4 and FY
2023 disposition costs relate to the sale of De-Sta-Co which is
expected to close in Q1 2024. Q1 and FY 2022 represents working
capital adjustments related to the disposition of Unified Brands
and the Race Winning Brands equity method investment in Q4
2021.
|
4 Certain
expenses are maintained at the corporate level and not allocated to
the segments. These expenses include executive and functional
compensation costs, non-service pension costs, non-operating
insurance expenses, shared business services and digital overhead
costs, deal-related expenses and various administrative expenses
relating to the corporate headquarters.
|
5 Q4 and FY
2023 include the net income tax benefit of internal reorganizations
executed in 2023. Q2 and FY 2022 include a reduction to income
taxes previously recorded related to the Tax Cuts and Jobs
Act.
|
DOVER
CORPORATION
|
QUARTERLY EARNINGS
PER SHARE
|
(unaudited)(in
thousands, except per share data*)
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2023
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2022
|
Net earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 1.64
|
$ 1.73
|
$ 2.07
|
$ 2.12
|
$
7.56
|
|
$ 1.57
|
$ 2.01
|
$ 2.01
|
$ 1.88
|
$
7.47
|
Diluted
|
$ 1.63
|
$ 1.72
|
$ 2.06
|
$ 2.11
|
$
7.52
|
|
$ 1.56
|
$ 2.00
|
$ 2.00
|
$ 1.87
|
$
7.42
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings and
weighted average shares used in calculated earnings per share
amounts are as follows:
|
Net earnings
|
$
228,574
|
$
242,239
|
$
289,753
|
$
296,262
|
$
1,056,828
|
|
$
226,153
|
$
289,618
|
$
286,026
|
$
263,579
|
$
1,065,376
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
139,757
|
139,862
|
139,878
|
139,893
|
139,848
|
|
144,087
|
143,832
|
142,506
|
140,343
|
142,681
|
Diluted
|
140,616
|
140,578
|
140,615
|
140,586
|
140,599
|
|
145,329
|
144,669
|
143,257
|
141,168
|
143,595
|
|
|
|
|
|
|
|
|
|
|
|
|
* Per share data may be
impacted by rounding.
|
|
|
DOVER
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(unaudited)(in
thousands)
|
|
|
December 31,
2023
|
|
December 31,
2022
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
398,561
|
|
$
380,868
|
Receivables,
net
|
1,432,040
|
|
1,516,871
|
Inventories,
net
|
1,225,452
|
|
1,366,608
|
Prepaid and other
current assets
|
141,538
|
|
159,118
|
Assets held for
sale
|
192,644
|
|
—
|
Property, plant and
equipment, net
|
1,031,816
|
|
1,004,825
|
Goodwill
|
4,881,687
|
|
4,669,494
|
Intangible assets,
net
|
1,483,913
|
|
1,333,735
|
Other assets and
deferred charges
|
560,862
|
|
465,000
|
Total
assets
|
$
11,348,513
|
|
$
10,896,519
|
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
Short-term
borrowings
|
$
468,282
|
|
$
735,772
|
Payables, accrued
expenses and other current liabilities
|
1,880,920
|
|
2,037,502
|
Liabilities held for
sale
|
64,568
|
|
—
|
Deferred taxes and
other non-current liabilities
|
836,379
|
|
894,366
|
Long-term
debt
|
2,991,759
|
|
2,942,513
|
Stockholders'
equity
|
5,106,605
|
|
4,286,366
|
Total liabilities
and stockholders' equity
|
$
11,348,513
|
|
$
10,896,519
|
DOVER
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(unaudited)(in
thousands)
|
|
|
Years Ended December
31,
|
|
2023
|
|
2022
|
Operating
activities:
|
|
|
|
Net
earnings
|
$
1,056,828
|
|
$
1,065,376
|
Depreciation and
amortization
|
317,463
|
|
307,538
|
Stock-based
compensation
|
31,465
|
|
30,821
|
Contributions to
employee benefit plans
|
(16,098)
|
|
(12,890)
|
Net change in assets
and liabilities
|
(53,313)
|
|
(585,121)
|
Net cash provided by
operating activities
|
1,336,345
|
|
805,724
|
|
|
|
|
Investing
activities:
|
|
|
|
Additions to property,
plant and equipment
|
(192,592)
|
|
(220,962)
|
Acquisitions, net of
cash and cash equivalents acquired
|
(533,623)
|
|
(312,855)
|
Proceeds from the sale
of property, plant and equipment
|
4,234
|
|
6,061
|
Other
|
(4,649)
|
|
(13,168)
|
Net cash used in
investing activities
|
(726,630)
|
|
(540,924)
|
|
|
|
|
Financing
activities:
|
|
|
|
Change in commercial
paper and other short-term borrowings, net
|
(267,490)
|
|
629,891
|
Dividends paid to
stockholders
|
(284,297)
|
|
(287,551)
|
Repurchase of common
stock, including accelerated share repurchase program
|
—
|
|
(585,000)
|
Payments to settle
employee tax obligations on exercise of share-based
awards
|
(12,137)
|
|
(14,637)
|
Other
|
(4,132)
|
|
(2,968)
|
Net cash used in
financing activities
|
(568,056)
|
|
(260,265)
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
(6,666)
|
|
(9,171)
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents, including cash held for
sale
|
34,993
|
|
(4,636)
|
Cash and cash
equivalents at beginning of year
|
380,868
|
|
385,504
|
Cash and cash
equivalents, including cash held for sale at end of year
|
$
415,861
|
|
$
380,868
|
|
|
Years Ended December
31,
|
|
2023
|
|
2022
|
Cash and cash
equivalents
|
$
398,561
|
|
$
380,868
|
Cash and cash
equivalents held for sale
|
17,300
|
|
—
|
Cash and cash
equivalents, including cash held for sale
|
$
415,861
|
|
$
380,868
|
DOVER
CORPORATION
|
QUARTERLY ADJUSTED
SEGMENT EBITDA (NON-GAAP)
|
(unaudited)(in
thousands)
|
|
Non-GAAP
Reconciliations
|
|
|
2023
|
|
2022
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2023
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2022
|
ADJUSTED SEGMENT
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products:
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings
|
$
84,275
|
$
73,076
|
$ 101,610
|
$ 118,464
|
$
377,425
|
|
$
71,130
|
$
81,671
|
$
90,145
|
$ 103,573
|
$
346,519
|
Other depreciation and
amortization 1
|
7,070
|
7,300
|
7,306
|
6,397
|
28,073
|
|
7,274
|
6,799
|
6,819
|
6,853
|
27,745
|
Adjusted segment EBITDA
2
|
91,345
|
80,376
|
108,916
|
124,861
|
405,498
|
|
78,404
|
88,470
|
96,964
|
110,426
|
374,264
|
Adjusted segment EBITDA
margin 2
|
18.4 %
|
17.0 %
|
21.6 %
|
23.6 %
|
20.2 %
|
|
16.1 %
|
17.2 %
|
18.8 %
|
21.0 %
|
18.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Clean Energy &
Fueling:
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings
|
$
73,605
|
$
83,616
|
$
92,483
|
$
78,900
|
$
328,604
|
|
$
72,962
|
$
99,034
|
$
90,208
|
$
90,789
|
$
352,993
|
Other depreciation and
amortization 1
|
7,046
|
7,541
|
7,686
|
7,844
|
30,117
|
|
8,466
|
6,533
|
6,893
|
6,923
|
28,815
|
Adjusted segment EBITDA
2
|
80,651
|
91,157
|
100,169
|
86,744
|
358,721
|
|
81,428
|
105,567
|
97,101
|
97,712
|
381,808
|
Adjusted segment EBITDA
margin 2
|
18.7 %
|
20.7 %
|
21.5 %
|
19.3 %
|
20.1 %
|
|
17.8 %
|
21.4 %
|
20.9 %
|
21.1 %
|
20.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Imaging &
Identification:
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings
|
$
68,315
|
$
61,336
|
$
70,316
|
$
72,545
|
$
272,512
|
|
$
58,598
|
$
61,392
|
$
74,477
|
$
73,617
|
$
268,084
|
Other depreciation and
amortization 1
|
3,394
|
3,745
|
3,972
|
4,182
|
15,293
|
|
3,497
|
3,496
|
3,372
|
3,820
|
14,185
|
Adjusted segment EBITDA
2
|
71,709
|
65,081
|
74,288
|
76,727
|
287,805
|
|
62,095
|
64,888
|
77,849
|
77,437
|
282,269
|
Adjusted segment EBITDA
margin 2
|
25.3 %
|
23.9 %
|
26.9 %
|
26.9 %
|
25.8 %
|
|
22.8 %
|
23.5 %
|
27.6 %
|
26.4 %
|
25.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Pumps & Process
Solutions:
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings
|
$ 115,244
|
$ 129,337
|
$ 117,907
|
$ 121,917
|
$
484,405
|
|
$
146,617
|
$
138,048
|
$
128,573
|
$ 119,780
|
$
533,018
|
Other depreciation and
amortization 1
|
10,939
|
11,609
|
12,052
|
11,744
|
46,344
|
|
9,922
|
9,787
|
10,137
|
10,993
|
40,839
|
Adjusted segment EBITDA
2
|
126,183
|
140,946
|
129,959
|
133,661
|
530,749
|
|
156,539
|
147,835
|
138,710
|
130,773
|
573,857
|
Adjusted segment EBITDA
margin 2
|
30.5 %
|
30.3 %
|
30.1 %
|
30.0 %
|
30.2 %
|
|
36.0 %
|
33.5 %
|
32.0 %
|
31.3 %
|
33.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Climate &
Sustainability Technologies:
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings
|
$
73,778
|
$
76,074
|
$
84,060
|
$
71,468
|
$
305,380
|
|
$
53,609
|
$
64,181
|
$
75,190
|
$
61,504
|
$
254,484
|
Other depreciation and
amortization 1
|
6,624
|
6,895
|
6,954
|
7,084
|
27,557
|
|
6,495
|
6,443
|
6,736
|
6,530
|
26,204
|
Adjusted segment EBITDA
2
|
80,402
|
82,969
|
91,014
|
78,552
|
332,937
|
|
60,104
|
70,624
|
81,926
|
68,034
|
280,688
|
Adjusted segment EBITDA
margin 2
|
17.7 %
|
18.5 %
|
19.1 %
|
19.7 %
|
18.7 %
|
|
15.1 %
|
16.3 %
|
17.7 %
|
15.4 %
|
16.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Segments:
|
|
|
|
|
|
|
|
|
|
|
|
Total segment earnings
2, 3
|
$ 415,217
|
$ 423,439
|
$ 466,376
|
$ 463,294
|
$
1,768,326
|
|
$
402,916
|
$
444,326
|
$
458,593
|
$ 449,263
|
$
1,755,098
|
Other depreciation and
amortization 1
|
35,073
|
37,090
|
37,970
|
37,251
|
147,384
|
|
35,654
|
33,058
|
33,957
|
35,119
|
137,788
|
Total Adjusted segment
EBITDA 2
|
450,290
|
460,529
|
504,346
|
500,545
|
1,915,710
|
|
438,570
|
477,384
|
492,550
|
484,382
|
1,892,886
|
Total Adjusted segment
EBITDA margin 2
|
21.7 %
|
21.9 %
|
23.4 %
|
23.8 %
|
22.7 %
|
|
21.4 %
|
22.1 %
|
22.8 %
|
22.6 %
|
22.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Other
depreciation and amortization relates to property, plant, and
equipment and intangibles, and excludes amounts related to purchase
accounting expenses and restructuring and other costs.
|
2 Refer to
Non-GAAP Disclosures section for definition.
|
3 Refer to
Quarterly Segment Information section for reconciliation of total
segment earnings to net earnings.
|
DOVER
CORPORATION
|
QUARTERLY ADJUSTED
EARNINGS AND ADJUSTED EARNINGS PER SHARE (NON-GAAP)
|
(unaudited)(in
thousands, except per share data*)
|
|
Non-GAAP
Reconciliations
|
|
|
2023
|
|
2022
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2023
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2022
|
Adjusted net
earnings:
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
$
228,574
|
$
242,239
|
$ 289,753
|
$ 296,262
|
$
1,056,828
|
|
$
226,153
|
$
289,618
|
$
286,026
|
$
263,579
|
$
1,065,376
|
Purchase accounting
expenses, pre-tax 1
|
42,679
|
40,200
|
40,320
|
41,744
|
164,943
|
|
53,286
|
47,019
|
40,526
|
40,272
|
181,103
|
Purchase accounting
expenses, tax impact 2
|
(9,599)
|
(9,012)
|
(8,966)
|
(9,143)
|
(36,720)
|
|
(12,538)
|
(11,013)
|
(9,494)
|
(8,689)
|
(41,734)
|
Restructuring and other
costs, pre-tax 3
|
14,053
|
18,143
|
12,327
|
19,150
|
63,673
|
|
10,552
|
7,944
|
8,613
|
11,881
|
38,990
|
Restructuring and other
costs, tax impact 2
|
(2,990)
|
(3,665)
|
(2,556)
|
(3,970)
|
(13,181)
|
|
(2,191)
|
(1,803)
|
(1,921)
|
(2,311)
|
(8,226)
|
Disposition costs,
pre-tax 4
|
—
|
—
|
—
|
1,302
|
1,302
|
|
194
|
—
|
—
|
—
|
194
|
Disposition costs, tax
impact 2
|
—
|
—
|
—
|
(270)
|
(270)
|
|
(27)
|
—
|
—
|
—
|
(27)
|
Tax Cuts and Jobs Act
5
|
—
|
—
|
—
|
—
|
—
|
|
—
|
(22,579)
|
—
|
—
|
(22,579)
|
Adjusted net
earnings
|
$
272,717
|
$
287,905
|
$ 330,878
|
$ 345,075
|
$
1,236,575
|
|
$
275,429
|
$
309,186
|
$
323,750
|
$
304,732
|
$
1,213,097
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net
earnings per share:
|
|
|
|
|
|
|
|
|
|
Diluted net earnings
per share
|
$ 1.63
|
$ 1.72
|
$ 2.06
|
$ 2.11
|
$
7.52
|
|
$ 1.56
|
$ 2.00
|
$ 2.00
|
$ 1.87
|
$
7.42
|
Purchase accounting
expenses, pre-tax 1
|
0.30
|
0.29
|
0.29
|
0.30
|
1.18
|
|
0.37
|
0.33
|
0.28
|
0.29
|
1.27
|
Purchase accounting
expenses, tax impact 2
|
(0.07)
|
(0.06)
|
(0.06)
|
(0.07)
|
(0.26)
|
|
(0.09)
|
(0.08)
|
(0.07)
|
(0.06)
|
(0.30)
|
Restructuring and other
costs, pre-tax 3
|
0.10
|
0.13
|
0.09
|
0.14
|
0.46
|
|
0.07
|
0.05
|
0.06
|
0.08
|
0.26
|
Restructuring and other
costs, tax impact 2
|
(0.02)
|
(0.03)
|
(0.02)
|
(0.03)
|
(0.10)
|
|
(0.02)
|
(0.01)
|
(0.01)
|
(0.02)
|
(0.06)
|
Disposition costs,
pre-tax 4
|
—
|
—
|
—
|
0.01
|
0.01
|
|
—
|
—
|
—
|
—
|
—
|
Disposition costs, tax
impact 2
|
—
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
—
|
Tax Cuts and Jobs Act
5
|
—
|
—
|
—
|
—
|
—
|
|
—
|
(0.16)
|
—
|
—
|
(0.16)
|
Adjusted diluted net
earnings per share
|
$ 1.94
|
$ 2.05
|
$ 2.35
|
$ 2.45
|
$
8.80
|
|
$ 1.90
|
$ 2.14
|
$ 2.26
|
$ 2.16
|
$
8.45
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Purchase
accounting expenses are primarily comprised of amortization of
intangible assets and charges related to fair value step-ups for
acquired inventory sold during the period. Q1, Q2, and FY 2022
include $12,487, $7,158, and $19,869 of amortization of inventory
step-up, respectively, primarily related to the Q4 2021
acquisitions within our Clean Energy & Fueling
segment.
|
2
Adjustments were tax effected using the statutory tax rates in the
applicable jurisdictions or the effective tax rate, where
applicable, for each period.
|
3
Restructuring and other costs relate to actions taken for headcount
reductions, facility consolidations and site closures, product line
exits, and other asset charges. Q3 and FY 2023 include $3,302 of
non-cash asset impairment charges for our Climate &
Sustainability Technologies segment. Q1 and FY 2022 include $5,457
of non-cash foreign currency translation losses reclassified to
earnings included within restructuring and other costs and $2,117
related to write-off of assets due to an exit from certain Latin
America countries for our Climate & Sustainability Technologies
segment.
|
4 Q4 and FY
2023 disposition costs relate to the sale of De-Sta-Co which is
expected to close in Q1 2024. Q1 and FY 2022 represents working
capital adjustments related to the disposition of Unified Brands
and the Race Winning Brands equity method investment in Q4
2021.
|
5 Q2 and FY
2022 represent a reduction to income taxes previously recorded
related to the Tax Cuts and Jobs Act.
|
* Per share data and
totals may be impacted by rounding.
|
DOVER
CORPORATION
|
QUARTERLY NET
EARNINGS TO ADJUSTED SEGMENT EBITDA RECONCILIATION
(NON-GAAP)
|
(unaudited)(in
thousands)
|
|
Non-GAAP
Reconciliations
|
|
|
2023
|
|
2022
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2023
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2022
|
Net earnings
|
$
228,574
|
$
242,239
|
$
289,753
|
$
296,262
|
$
1,056,828
|
|
$
226,153
|
$
289,618
|
$
286,026
|
$
263,579
|
$
1,065,376
|
Provision for income
taxes 1
|
57,716
|
57,784
|
64,709
|
32,969
|
213,178
|
|
49,550
|
45,738
|
67,007
|
59,834
|
222,129
|
Earnings before
provision for income taxes
|
286,290
|
300,023
|
354,462
|
329,231
|
1,270,006
|
|
275,703
|
335,356
|
353,033
|
323,413
|
1,287,505
|
Interest
income
|
(2,091)
|
(2,653)
|
(3,808)
|
(4,944)
|
(13,496)
|
|
(775)
|
(949)
|
(1,244)
|
(1,462)
|
(4,430)
|
Interest
expense
|
34,214
|
33,804
|
32,389
|
30,898
|
131,305
|
|
26,552
|
26,989
|
29,789
|
33,126
|
116,456
|
Corporate expense /
other 2
|
40,072
|
33,922
|
30,686
|
45,913
|
150,593
|
|
37,404
|
27,967
|
27,876
|
42,033
|
135,280
|
Disposition costs
3
|
—
|
—
|
—
|
1,302
|
1,302
|
|
194
|
—
|
—
|
—
|
194
|
Restructuring and other
costs 4
|
14,053
|
18,143
|
12,327
|
19,150
|
63,673
|
|
10,552
|
7,944
|
8,613
|
11,881
|
38,990
|
Purchase accounting
expenses 5
|
42,679
|
40,200
|
40,320
|
41,744
|
164,943
|
|
53,286
|
47,019
|
40,526
|
40,272
|
181,103
|
Total segment earnings
6
|
415,217
|
423,439
|
466,376
|
463,294
|
1,768,326
|
|
402,916
|
444,326
|
458,593
|
449,263
|
1,755,098
|
Add: Other depreciation
and amortization 7
|
35,073
|
37,090
|
37,970
|
37,251
|
147,384
|
|
35,654
|
33,058
|
33,957
|
35,119
|
137,788
|
Total adjusted segment
EBITDA 6
|
$
450,290
|
$
460,529
|
$
504,346
|
$
500,545
|
$
1,915,710
|
|
$
438,570
|
$
477,384
|
$
492,550
|
$
484,382
|
$
1,892,886
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Q4 and FY
2023 include the net income tax benefit of internal reorganizations
executed in 2023. Q2 and FY 2022 include a reduction to income
taxes previously recorded related to the Tax Cuts and Jobs
Act.
|
2 Certain
expenses are maintained at the corporate level and not allocated to
the segments. These expenses include executive and functional
compensation costs, non-service pension costs, non-operating
insurance expenses, shared business services and digital overhead
costs, deal-related expenses and various administrative expenses
relating to the corporate headquarters.
|
3 Q4 and FY
2023 disposition costs relate to the sale of De-Sta-Co which is
expected to close in Q1 2024. Q1 and FY 2022 represents working
capital adjustments related to the disposition of Unified Brands
and the Race Winning Brands equity method investment in Q4
2021.
|
4
Restructuring and other costs relate to actions taken for headcount
reductions, facility consolidations and site closures, product line
exits, and other asset charges.
|
5 Purchase
accounting expenses are primarily comprised of amortization of
intangible assets and charges related to fair value step-ups for
acquired inventory sold during the period.
|
6 Refer to
Non-GAAP Disclosures section for definition.
|
7 Other
depreciation and amortization relates to property, plant, and
equipment and intangibles, and excludes amounts related to purchase
accounting expenses and restructuring and other costs.
|
DOVER
CORPORATION
|
REVENUE GROWTH
FACTORS AND ADJUSTED EPS GUIDANCE RECONCILIATIONS
(NON-GAAP)
|
(unaudited)(in
thousands, except per share data*)
|
|
Non-GAAP
Reconciliations
|
|
Revenue Growth
Factors
|
|
|
2023
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Q4
YTD
|
Organic
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
3.4 %
|
|
(7.7) %
|
|
(3.0) %
|
|
— %
|
|
(1.9) %
|
Clean Energy &
Fueling
|
(2.6) %
|
|
(9.3) %
|
|
(0.2) %
|
|
(3.5) %
|
|
(4.0) %
|
Imaging &
Identification
|
8.2 %
|
|
0.3 %
|
|
(3.6) %
|
|
(3.5) %
|
|
0.2 %
|
Pumps & Process
Solutions
|
(7.1) %
|
|
0.9 %
|
|
(7.3) %
|
|
0.5 %
|
|
(3.3) %
|
Climate &
Sustainability Technologies
|
16.2 %
|
|
4.0 %
|
|
1.8 %
|
|
(10.9) %
|
|
2.4 %
|
Total
Organic
|
2.9 %
|
|
(3.0) %
|
|
(2.4) %
|
|
(3.4) %
|
|
(1.5) %
|
Acquisitions
|
0.9 %
|
|
0.9 %
|
|
1.0 %
|
|
0.9 %
|
|
0.9 %
|
Currency
translation
|
(2.5) %
|
|
(0.6) %
|
|
1.2 %
|
|
0.9 %
|
|
(0.2) %
|
Total*
|
1.3 %
|
|
(2.7) %
|
|
(0.2) %
|
|
(1.6) %
|
|
(0.8) %
|
|
* Totals may be
impacted by rounding.
|
|
|
2023
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Q4
YTD
|
Organic
|
|
|
|
|
|
|
|
|
|
United
States
|
2.6 %
|
|
(8.6) %
|
|
(7.3) %
|
|
1.7 %
|
|
(3.0) %
|
Other
Americas
|
16.8 %
|
|
13.9 %
|
|
13.1 %
|
|
(22.5) %
|
|
3.4 %
|
Europe
|
(0.3) %
|
|
(0.9) %
|
|
(5.2) %
|
|
(16.1) %
|
|
(5.7) %
|
Asia
|
(3.9) %
|
|
1.9 %
|
|
(3.4) %
|
|
4.9 %
|
|
(0.2) %
|
Other
|
20.8 %
|
|
33.0 %
|
|
72.8 %
|
|
26.8 %
|
|
38.5 %
|
Total
Organic
|
2.9 %
|
|
(3.0) %
|
|
(2.4) %
|
|
(3.4) %
|
|
(1.5) %
|
Acquisitions
|
0.9 %
|
|
0.9 %
|
|
1.0 %
|
|
0.9 %
|
|
0.9 %
|
Currency
translation
|
(2.5) %
|
|
(0.6) %
|
|
1.2 %
|
|
0.9 %
|
|
(0.2) %
|
Total*
|
1.3 %
|
|
(2.7) %
|
|
(0.2) %
|
|
(1.6) %
|
|
(0.8) %
|
|
* Totals may be
impacted by rounding.
|
Adjusted EPS
Guidance Reconciliation
|
|
2023
Actual
|
|
2024
Guidance
|
Adjusted net
earnings per share*:
|
|
|
|
Net earnings
(GAAP)
|
$
7.52
|
|
$7.90 -
$8.10
|
Purchase accounting
expenses, net
|
0.92
|
|
0.98
|
Restructuring and other
costs, net
|
0.36
|
|
0.07
|
Adjusted net
earnings per share (Non-GAAP)
|
$
8.80
|
|
$8.95 -
$9.15
|
|
* Per share data and
totals may be impacted by rounding.
|
DOVER
CORPORATION
|
PERFORMANCE
MEASURES
|
(unaudited)(in
thousands)
|
|
|
2023
|
|
2022
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2023
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2022
|
BOOKINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
$
536,472
|
$
489,131
|
$
576,641
|
$
494,528
|
$
2,096,772
|
|
$
541,035
|
$
452,668
|
$
512,374
|
$
498,249
|
$
2,004,326
|
Clean Energy &
Fueling
|
454,526
|
440,137
|
449,663
|
401,195
|
1,745,521
|
|
501,491
|
487,861
|
432,259
|
399,414
|
1,821,025
|
Imaging &
Identification
|
290,712
|
262,092
|
271,113
|
297,312
|
1,121,229
|
|
307,104
|
292,136
|
281,789
|
273,170
|
1,154,199
|
Pumps & Process
Solutions
|
464,297
|
394,317
|
363,111
|
455,390
|
1,677,115
|
|
459,790
|
471,693
|
415,253
|
362,468
|
1,709,204
|
Climate &
Sustainability Technologies1
|
371,643
|
310,911
|
340,474
|
325,625
|
1,348,653
|
|
430,465
|
458,181
|
404,150
|
377,120
|
1,669,916
|
Intersegment
eliminations
|
(1,530)
|
(1,918)
|
(849)
|
(2,125)
|
(6,422)
|
|
(2,295)
|
(1,207)
|
(423)
|
(1,391)
|
(5,316)
|
Total consolidated
bookings
|
$
2,116,120
|
$
1,894,670
|
$
2,000,153
|
$
1,971,925
|
$
7,982,868
|
|
$
2,237,590
|
$
2,161,332
|
$
2,045,402
|
$
1,909,030
|
$
8,353,354
|
1 For
comparability, prior periods were revised to exclude non-binding
orders and previously disclosed de-bookings. Refer to Performance
Measures Definitions section.
|
|
2023
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Q4
YTD
|
BOOKINGS GROWTH
FACTORS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
0.9 %
|
|
8.4 %
|
|
11.6 %
|
|
(1.6) %
|
|
4.7 %
|
Clean Energy &
Fueling
|
(6.1) %
|
|
(8.4) %
|
|
3.5 %
|
|
(0.1) %
|
|
(3.1) %
|
Imaging &
Identification
|
(1.8) %
|
|
(8.5) %
|
|
(5.4) %
|
|
7.7 %
|
|
(2.1) %
|
Pumps & Process
Solutions
|
(1.2) %
|
|
(19.4) %
|
|
(15.6) %
|
|
22.6 %
|
|
(4.7) %
|
Climate &
Sustainability Technologies1
|
(11.6) %
|
|
(31.5) %
|
|
(16.8) %
|
|
(14.8) %
|
|
(19.1) %
|
Total
Organic
|
(3.9) %
|
|
(12.2) %
|
|
(3.5) %
|
|
2.0 %
|
|
(4.6) %
|
Acquisitions
|
1.0 %
|
|
0.7 %
|
|
0.3 %
|
|
0.4 %
|
|
0.6 %
|
Currency
translation
|
(2.5) %
|
|
(0.8) %
|
|
1.0 %
|
|
0.9 %
|
|
(0.4) %
|
Total*
|
(5.4) %
|
|
(12.3) %
|
|
(2.2) %
|
|
3.3 %
|
|
(4.4) %
|
* Totals may be
impacted by rounding.
|
|
|
|
|
|
|
|
|
|
1 For
comparability, prior periods were revised to exclude non-binding
orders and previously disclosed de-bookings. Refer to Performance
Measures Definitions section.
|
ADDITIONAL INFORMATION
FOURTH
QUARTER AND FULL YEAR 2023
(unaudited)(amounts in thousands
except share data and where otherwise indicated)
Acquisitions
During the fourth quarter of 2023, the Company completed the
acquisition of FW Murphy Production Controls, LLC, within the Pumps
& Process Solutions segment for $526.5
million, subject to customary post-closing adjustments.
For the full year 2023, the Company acquired two businesses in
separate transactions for total consideration of $535.3 million, net of cash acquired and
including contingent consideration. The businesses were acquired to
complement and expand upon existing operations within the Pumps
& Process Solutions and Climate & Sustainability
Technologies segments. The purchase price allocations for these
acquisitions are preliminary and subject to change during the
measurement period.
Dispositions
On October 11, 2023 the Company entered into a definitive
agreement to sell De-Sta-Co, an operating company within the
Engineered Products segment, for approximately $680.0 million enterprise value, subject to
customary post-closing adjustments. De-Sta-Co's assets and
liabilities are classified as held for sale in the condensed
consolidated balance sheets as of December
31, 2023. The transaction is expected to close in Q1 2024,
subject to customary closing conditions, including receipt of
regulatory approvals.
Restructuring and Other Costs
(Benefits)
During the fourth quarter and year ended December 31, 2023, restructuring and other costs
(benefits) included restructuring charges of $16.6 million and $50.4
million, respectively, and other costs of $2.5 million and $13.2
million, respectively. The restructuring expenses incurred
during the year ended December 31,
2023 were primarily related to headcount reductions and exit
costs in the Clean Energy & Fueling, Engineered Products and
Pumps & Process Solutions segments. These restructuring
programs were initiated in 2022 and 2023 and were undertaken in
light of current market conditions. Other costs (benefits) were
primarily due to an asset impairment in our Climate &
Sustainability Technologies segment and product line
rationalization and footprint reduction in our Clean Energy &
Fueling segment.
($ in
millions)
|
2023
|
|
2022
|
|
Q4
|
|
FY
|
|
Q4
|
|
FY
|
Engineered
Products
|
$
3.5
|
|
$
9.8
|
|
$
0.5
|
|
$
6.5
|
Clean Energy &
Fueling
|
5.6
|
|
24.7
|
|
4.8
|
|
9.6
|
Imaging &
Identification
|
4.8
|
|
7.1
|
|
2.9
|
|
6.4
|
Pumps & Process
Solutions
|
1.5
|
|
7.9
|
|
2.0
|
|
4.7
|
Climate &
Sustainability Technologies
|
2.1
|
|
9.3
|
|
0.9
|
|
9.3
|
Corporate
|
1.6
|
|
4.9
|
|
0.8
|
|
2.6
|
Total*
|
$
19.2
|
|
$
63.7
|
|
$
11.9
|
|
$
39.0
|
* Totals may
be impacted by rounding.
|
Tax Rate
The effective tax rate was 10.0% and 18.5% for the fourth
quarters of 2023 and 2022, respectively. On a full year basis, the
effective tax rate for 2023 and 2022 was 16.8% and 17.3%,
respectively. The 2023 tax rate was primarily driven by the release
of a net valuation allowance against non-U.S. tax loss
carryforwards mainly related to an internal reorganization,
partially offset by an accrual of withholding taxes on current and
future repatriation of certain foreign earnings. The 2022 tax rate
was primarily driven by favorable audit resolutions, including a
reduction to income taxes previously recorded related to the Tax
Cut and Jobs Act.
ADDITIONAL INFORMATION
(CONTINUED)
FOURTH QUARTER AND FULL YEAR
2023
(unaudited)(amounts in thousands except share data and
where otherwise indicated)
Capitalization
The following table provides a reconciliation of total debt and
net debt to net capitalization to the most directly comparable GAAP
measures:
Net Debt to Net
Capitalization Ratio (Non-GAAP)
|
|
December 31,
2023
|
|
December 31,
2022
|
Commercial
paper
|
|
$
467,600
|
|
$
734,936
|
Other
|
|
682
|
|
836
|
Short-term
borrowings
|
|
$
468,282
|
|
$
735,772
|
Long-term
debt
|
|
2,991,759
|
|
2,942,513
|
Total debt
|
|
3,460,041
|
|
3,678,285
|
Less: Cash and cash
equivalents, including cash held for sale
|
|
(415,861)
|
|
(380,868)
|
Net debt
|
|
3,044,180
|
|
3,297,417
|
Add: Stockholders'
equity
|
|
5,106,605
|
|
4,286,366
|
Net
capitalization
|
|
$
8,150,785
|
|
$
7,583,783
|
Net debt to net
capitalization
|
|
37.3 %
|
|
43.5 %
|
Quarterly Cash
Flow
|
|
|
2023
|
|
2022
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2023
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2022
|
Net Cash Flows Provided
By (Used In):
|
|
|
|
|
|
|
|
|
|
Operating
activities
|
$
241,284
|
$
195,254
|
$
383,457
|
$
516,350
|
$
1,336,345
|
|
$
23,683
|
$
178,773
|
$
264,625
|
$
338,643
|
$
805,724
|
Investing
activities
|
(43,556)
|
(42,454)
|
(50,243)
|
(590,377)
|
(726,630)
|
|
(46,963)
|
(68,890)
|
(286,208)
|
(138,863)
|
(540,924)
|
Financing
activities
|
(306,565)
|
(137,924)
|
(312,716)
|
189,149
|
(568,056)
|
|
(75,204)
|
120,469
|
(178,844)
|
(126,686)
|
(260,265)
|
Quarterly Free Cash
Flow (Non-GAAP)
|
|
|
2023
|
|
2022
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2023
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
2022
|
Cash flow from
operating activities
|
$
241,284
|
$
195,254
|
$
383,457
|
$ 516,350
|
$
1,336,345
|
|
$ 23,683
|
$
178,773
|
$
264,625
|
$ 338,643
|
$
805,724
|
Less: Capital
expenditures
|
(48,375)
|
(40,079)
|
(43,128)
|
(61,010)
|
(192,592)
|
|
(50,381)
|
(50,196)
|
(65,462)
|
(54,923)
|
(220,962)
|
Free cash
flow
|
$
192,909
|
$
155,175
|
$
340,329
|
$ 455,340
|
$
1,143,753
|
|
$
(26,698)
|
$
128,577
|
$
199,163
|
$ 283,720
|
$
584,762
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
operating
activities as a percentage of
revenue
|
11.6 %
|
9.3 %
|
17.8 %
|
24.5 %
|
15.8 %
|
|
1.2 %
|
8.3 %
|
12.3 %
|
15.8 %
|
9.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
operating
activities as a percentage of
adjusted net earnings
|
88.5 %
|
67.8 %
|
115.9 %
|
149.6 %
|
108.1 %
|
|
8.6 %
|
57.8 %
|
81.7 %
|
111.1 %
|
66.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow as a
percentage of revenue
|
9.3 %
|
7.4 %
|
15.8 %
|
21.6 %
|
13.6 %
|
|
(1.3) %
|
6.0 %
|
9.2 %
|
13.3 %
|
6.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow as a
percentage of adjusted net
earnings
|
70.7 %
|
53.9 %
|
102.9 %
|
132.0 %
|
92.5 %
|
|
(9.7) %
|
41.6 %
|
61.5 %
|
93.1 %
|
48.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures
Definitions
In an effort to provide investors with additional information
regarding our results as determined by GAAP, management also
discloses non-GAAP information that management believes provides
useful information to investors. Adjusted net earnings, adjusted
diluted net earnings per share, total segment earnings, total
segment earnings margin, adjusted segment EBITDA, adjusted segment
EBITDA margin, free cash flow, free cash flow as a percentage of
revenue, free cash flow as a percentage of adjusted net earnings,
net debt, net capitalization, net debt to net capitalization ratio,
and organic revenue growth are not financial measures under GAAP
and should not be considered as a substitute for net earnings,
diluted net earnings per share, cash flows from operating
activities, or revenue as determined in accordance with GAAP, and
they may not be comparable to similarly titled measures reported by
other companies.
Adjusted net earnings represents net earnings adjusted for the
effect of purchase accounting expenses, restructuring and other
costs/benefits, Tax Cuts and Jobs Act, disposition costs and
gain/loss on dispositions. Purchase accounting expenses are
primarily comprised of amortization of intangible assets and
charges related to fair value step-ups for acquired inventory sold
during the period. We exclude after-tax purchase accounting
expenses because the amount and timing of such charges are
significantly impacted by the timing, size, number and nature of
the acquisitions the Company consummates. While we have a history
of acquisition activity, our acquisitions do not happen in a
predictive cycle. Exclusion of purchase accounting expenses
facilitates more consistent comparisons of operating results over
time. We believe it is important to understand that such intangible
assets were recorded as part of purchase accounting and contribute
to revenue generation. We exclude the other items because they
occur for reasons that may be unrelated to the Company's commercial
performance during the period and/or management believes they are
not indicative of the Company's ongoing operating costs or gains in
a given period.
Adjusted diluted net earnings per share or adjusted earnings per
share represent diluted EPS adjusted for the effect of purchase
accounting expenses, restructuring and other costs/benefits, Tax
Cuts and Jobs Act, disposition costs and gain/loss on
dispositions.
Total segment earnings is defined as the sum of earnings before
purchase accounting expenses, restructuring and other
costs/benefits, disposition costs, gain/loss on dispositions,
corporate expenses/other, interest expense, interest income and
provision for income taxes for all segments. Total segment earnings
margin is defined as total segment earnings divided by revenue.
Adjusted segment EBITDA is defined as segment earnings plus
other depreciation and amortization expense, which relates to
property, plant, and equipment and intangibles, and excludes
amounts related to purchase accounting expenses and restructuring
and other costs/benefits. Adjusted segment EBITDA margin is defined
as adjusted segment EBITDA divided by revenue.
Management believes the non-GAAP measures above are useful to
investors to better understand the Company's ongoing profitability
as they will better reflect the Company's core operating results,
offer more transparency and facilitate easier comparability to
prior and future periods and to its peers.
Net debt represents total debt minus cash and cash equivalents,
including cash held for sale. Net capitalization represents net
debt plus stockholders' equity. Net debt to net capitalization
ratio is net debt divided by net capitalization. Net debt to net
capitalization is helpful in evaluating our capital structure and
the amount of leverage we employ.
Free cash flow represents net cash provided by operating
activities minus capital expenditures. Free cash flow as a
percentage of revenue equals free cash flow divided by revenue.
Free cash flow as a percentage of adjusted net earnings equals free
cash flow divided by adjusted net earnings. Management believes
that free cash flow and free cash flow ratios are important
measures of liquidity because they provide management and investors
a measurement of cash generated from operations that is available
for mandatory payment obligations and investment opportunities,
such as funding acquisitions, paying dividends, repaying debt and
repurchasing our common stock.
Management believes that reporting organic revenue growth, which
excludes the impact of foreign currency exchange rates and the
impact of acquisitions and dispositions, provides a useful
comparison of our revenue and trends between periods. We do not
provide a reconciliation of forward-looking organic revenue to the
most directly comparable GAAP financial measure pursuant to the
exception provided in Item 10(e)(1)(i)(B) of Regulation S-K because
we are not able to provide a meaningful or accurate compilation of
reconciling items. This is due to the inherent difficulty in
accurately forecasting the timing and amounts of the items that
would be excluded from the most directly comparable GAAP financial
measure or are out of our control. For the same reasons, we are
unable to address the probable significance of unavailable
information which may be material.
Performance Measures
Definitions
Bookings represent total orders received from customers in the
current reporting period and now exclude de-bookings. This metric
is an important measure of performance and an indicator of order
trends.
Organic bookings represent bookings excluding the impact of
foreign currency exchange rates and the impact of acquisitions and
dispositions. This metric is an important measure of performance
and an indicator of order trends.
We use the above operational metrics in monitoring the
performance of the business. We believe the operational metrics are
useful to investors and other users of our financial information in
assessing the performance of our segments.
Investor
Contact:
|
Media
Contact:
|
Jack Dickens
|
Adrian
Sakowicz
|
Senior Director -
Investor Relations
|
Vice President -
Communications
|
(630)
743-2566
|
(630)
743-5039
|
jdickens@dovercorp.com
|
asakowicz@dovercorp.com
|
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SOURCE Dover