UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________
FORM 8-K
________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 25, 2012
________________________________
DOVER CORPORATION
(Exact Name of Registrant as Specified in Charter)
________________________________
|
Delaware
(State or other Jurisdiction
of Incorporation)
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1-4018
(Commission File Number)
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53-0257888
(I.R.S. Employer
Identification No.)
|
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3005 Highland Parkway, Suite 200
Downers Grove, Illinois 60515
(Address of Principal Executive Offices)
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(630) 541-1540
(Registrant’s telephone number, including area code)
______________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 Results of Operations and Financial Condition.
On January 25, 2012, Dover Corporation (i) issued the press release attached hereto as Exhibit 99.1 announcing its results of operations for the quarter and full year ended December 31, 2011; and (ii) posted on its website at http://www.dovercorporation.com the presentation slides attached hereto as Exhibit 99.2 for the quarter and year ended December 31, 2011.
The information in this Current Report on Form 8-K, including exhibits, is being furnished to the Securities and Exchange Commission (the “SEC”) and shall not be deemed to be incorporated by reference into any of Dover’s filings with the SEC under the Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits.
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(a)
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Financial statements of businesses acquired.
Not applicable.
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(b)
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Pro forma financial information.
Not applicable.
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(c)
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Shell company transactions.
Not applicable.
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(d)
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Exhibits.
The following exhibits are furnished as part of this report:
99.1 Press Release of Dover Corporation, dated January 25, 2012.
99.2 Presentation Slides Posted on Dover Corporation’s Website at http://www.dovercorporation.com.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: January 25, 2012 | DOVER CORPORATION | ||
| (Registrant) | |||
|
By:
|
/s/ Joseph W. Schmidt | ||
| Joseph W. Schmidt | |||
| Senior Vice President, General Counsel & Secretary | |||
EXHIBIT INDEX
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Number
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Exhibit
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|
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99.1
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Press Release of Dover Corporation, dated January 25, 2012.
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|
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99.2
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Presentation Slides Posted on Dover Corporation’s Website at http://www.dovercorporation.com
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Exhibit 99.1
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CONTACT:
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READ IT ON THE WEB
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Paul Goldberg
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www.dovercorporation.com
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Vice President - Investor Relations
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| (212) 922-1640 |
DOVER CORPORATION REPORTS FOURTH QUARTER AND FULL YEAR 2011 RESULTS
| ● | Reports quarterly revenue of $2.0 billion, an increase of 15% over the prior year |
| ● | Delivers quarterly diluted earnings per share from continuing operations of $1.12, up 15% over last year |
| ● | Achieves adjusted quarterly diluted earnings per share from continuing operations of $1.07, excluding tax benefits of $0.05, up 19% from an adjusted prior year |
| ● | Expects 2012 full year revenue growth of 7% - 10%, and diluted earnings per share from continuing operations in the range of $4.70 - $5.00 |
Downers Grove, Illinois, January 25, 2012 — Dover Corporation (NYSE: DOV) announced today that for the fourth quarter ended December 31, 2011, revenue was $2.0 billion, an increase of 15% over the prior-year period. The revenue increase was driven by organic growth of 6% and a 9% increase from acquisitions. Earnings from continuing operations for the fourth quarter of 2011 were $208.9 million, or diluted earnings per share (“EPS”) of $1.12, compared to $184.9 million, or $0.97 EPS, in the prior-year period, representing increases of 13% and 15%, respectively. Excluding the impact of tax benefits of $0.05 EPS recognized in the current quarter and $0.07 EPS recognized in the prior-year period, adjusted EPS from continuing operations for the fourth quarter of 2011 was $1.07, reflecting an increase of 19% over an adjusted EPS of $0.90 in the prior-year period.
Revenue for the year ended December 31, 2011 was $8.0 billion, an increase of 20% over the prior year, reflecting organic growth of 11%, a 7% increase from acquisitions and a 2% impact from foreign exchange. Earnings from continuing operations for the year ended December 31, 2011 were $846.4 million, or $4.48 EPS, compared to $690.8 million, or $3.65 EPS in the prior year, representing a 23% increase in both earnings and EPS. Excluding the impact of tax benefits of $0.22 EPS in the current year and $0.27 EPS in the prior year, adjusted EPS from continuing operations for the year ended December 31, 2011 was $4.26, an increase of 26% over an adjusted EPS of $3.38 in the prior year.
Commenting on the fourth quarter results, Dover’s President and Chief Executive Officer, Robert A. Livingston, said, “Capped off by a solid fourth quarter, Dover delivered a record setting 2011 in terms of revenue, earnings, EPS and bookings. Organic revenue growth in the fourth quarter of 6% was driven by broad-based strength in energy, handsets, fluids, and industrial end-markets. Our segment margin was 16.5%, where solid performances in our Energy, Communication Technologies and Engineered Systems segments partially offset weakness in Printing & Identification and acquisition-related costs. The majority of our businesses continued to book well as we ended the year with a seasonally normal book-to-bill of 1.00.”
“In addition to our strong financial results, we accomplished several important strategic initiatives in 2011. Importantly, we realigned our businesses into a new segment structure to more closely match our targeted growth markets. We also deployed $1.4 billion in 2011 on acquisitions and divested three businesses consistent with our strategy of focusing on our growth spaces. Lastly, we generated nearly $800 million in free cash flow, which enabled us to aggressively invest in higher growth economies and innovation, and to continue our long tradition of raising our annual dividend, now standing at 56 consecutive years.”
“Looking forward, we expect full year 2012 revenue growth of 7% - 10%, comprising organic revenue growth of 4% - 7%, plus growth from completed acquisitions of 3%. Based on this revenue assumption, we expect full-year diluted EPS from continuing operations to be in the range of $4.70 - $5.00.”
Net earnings for the fourth quarter of 2011 were $278.3 million, or $1.49 EPS, including net income from discontinued operations of $69.4 million, or $0.37 EPS (inclusive of a $0.34 EPS gain on the sale of a business), compared to net earnings of $198.3 million, or $1.04 EPS, for the same period of 2010, which included net income from discontinued operations of $13.4 million, or $0.07 EPS. Net earnings for the year ended December 31, 2011 were $895.2 million, or $4.74 EPS, including net income from discontinued operations of $48.9 million, or $0.26 EPS (inclusive of a $0.02 EPS net loss, primarily reflecting the sale of three businesses), compared to net earnings of $700.1 million, or $3.70 EPS for the year ended December 31, 2010, which included net income from discontinued operations of $9.4 million, or $0.05 EPS.
Dover will host a webcast of its fourth quarter 2011 conference call at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Wednesday, January 25, 2012. The webcast can be accessed at the Dover Corporation website at www.dovercorporation.com. The conference call will also be made available for replay on the website. Additional information on Dover’s fourth quarter and full year 2011 results and its operating companies can also be found on the company’s website.
About Dover:
Dover Corporation is a multi-billion dollar diversified global manufacturer. For over 50 years, Dover has been providing its customers with outstanding products and services that reflect the company’s commitment to operational excellence, innovation and market leadership. The company focuses on innovative equipment and components, specialty systems and support services through its four segments: Communication Technologies, Energy, Engineered Systems and Printing & Identification. Dover employs over 33,000 people worldwide. The company is headquartered in Downers Grove, Illinois. Additional information is available at www.dovercorporation.com.
Forward-Looking Statement:
This press release contains “forward-looking” statements within the meaning of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, income, earnings, cash flows, changes in operations, operating improvements, industries in which Dover companies operate and the U.S. and global economies. Statements in this press release that are not historical may be indicated by words or phrases such as “anticipates,” “expects,” “believes,” “indicates,” “suggests,” “will,” “plans,” “supports,” “projects,” “should,” “would,” “could,” “hope,” “forecast” and “management is of the opinion,” use of future tense and similar words or phrases. Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from current expectations, including, but not limited to, the state of the worldwide economy and sovereign credit, especially in Europe; political events that could impact the worldwide economy; the impact of natural disasters and their effect on global supply chains and energy markets; increases in the cost of raw materials; the Company’s ability to achieve expected savings from integration, synergy and other cost-control initiatives; the ability to identify and successfully consummate value-adding acquisition opportunities; increased competition and pricing pressures in the markets served by Dover’s operating companies; the ability of Dover’s companies to expand into new geographic markets and to anticipate and meet customer demands for new products and product enhancements; the impact of loss of a single-source manufacturing facility; changes in customer demand; current economic conditions and uncertainties in the credit and capital markets; a downgrade in Dover’s credit ratings; international economic conditions including interest rate and currency exchange rate fluctuations; the relative mix of products and services which impacts margins and operating efficiencies; short-term capacity constraints; domestic and foreign governmental and public policy changes including environmental regulations and tax policies (including domestic and international export subsidy programs, R&E credits and other similar programs); unforeseen developments in contingencies such as litigation; protection and validity of patent and other intellectual property rights; the cyclical nature of some of Dover’s companies; domestic housing industry weakness; instability in countries where Dover conducts business; and possible future terrorist threats and their effect on the worldwide economy. Dover Corporation refers you to the documents that it files from time to time with the Securities and Exchange Commission, such as its reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other risks and uncertainties that could cause its actual results to differ materially from its current expectations and from the forward-looking statements contained in this press release. Dover Corporation undertakes no obligation to update any forward-looking statement.
INVESTOR SUPPLEMENT - FOURTH QUARTER 2011
DOVER CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)(in thousands, except per share data)
|
Three Months Ended December 31,
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Year Ended Ended December 31,
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|||||||||||||||
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2011
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2010
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2011
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2010
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|||||||||||||
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Revenue
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$ | 2,004,486 | $ | 1,737,436 | $ | 7,950,140 | $ | 6,640,191 | ||||||||
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Cost of goods and services
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1,247,091 | 1,050,664 | 4,898,716 | 4,023,586 | ||||||||||||
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Gross profit
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757,395 | 686,772 | 3,051,424 | 2,616,605 | ||||||||||||
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Selling and administrative expenses
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462,143 | 427,198 | 1,840,609 | 1,607,327 | ||||||||||||
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Operating earnings
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295,252 | 259,574 | 1,210,815 | 1,009,278 | ||||||||||||
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Interest expense, net
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29,060 | 25,930 | 115,596 | 106,422 | ||||||||||||
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Other (income) expense, net
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(2,658 | ) | (237 | ) | 55 | 3,652 | ||||||||||
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Earnings before provision for income taxes and discontinued operations
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268,850 | 233,881 | 1,095,164 | 899,204 | ||||||||||||
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Provision for income taxes
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59,912 | 48,975 | 248,799 | 208,453 | ||||||||||||
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Earnings from continuing operations
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208,938 | 184,906 | 846,365 | 690,751 | ||||||||||||
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Earnings from discontinued operations, net
|
69,351 | 13,442 | 48,878 | 9,353 | ||||||||||||
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Net earnings
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$ | 278,289 | $ | 198,348 | $ | 895,243 | $ | 700,104 | ||||||||
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Basic earnings per common share:
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||||||||||||||||
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Earnings from continuing operations
|
$ | 1.13 | $ | 0.99 | $ | 4.55 | $ | 3.70 | ||||||||
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Earnings from discontinued operations, net
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0.38 | 0.07 | 0.26 | 0.05 | ||||||||||||
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Net earnings
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1.51 | 1.06 | 4.82 | 3.75 | ||||||||||||
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Weighted average shares outstanding
|
184,686 | 186,923 | 185,882 | 186,897 | ||||||||||||
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Diluted earnings per common share:
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||||||||||||||||
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Earnings from continuing operations
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$ | 1.12 | $ | 0.97 | $ | 4.48 | $ | 3.65 | ||||||||
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Earnings from discontinued operations, net
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0.37 | 0.07 | 0.26 | 0.05 | ||||||||||||
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Net earnings
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1.49 | 1.04 | 4.74 | 3.70 | ||||||||||||
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Weighted average shares outstanding
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187,208 | 189,863 | 188,887 | 189,170 | ||||||||||||
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Dividends paid per common share
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$ | 0.315 | $ | 0.275 | $ | 1.18 | $ | 1.07 | ||||||||
DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited)(in thousands)
|
2011
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2010
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|||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 |
FY 2011
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Q1 | Q2 | Q3 | Q4 |
FY 2010
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|||||||||||||||||||||||||||||||
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REVENUE
|
||||||||||||||||||||||||||||||||||||||||
|
Communication Technologies
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$ | 269,582 | $ | 288,843 | $ | 405,357 | $ | 396,295 | $ | 1,360,077 | $ | 246,531 | $ | 269,107 | $ | 280,031 | $ | 280,343 | $ | 1,076,012 | ||||||||||||||||||||
|
Energy
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425,424 | 454,327 | 510,608 | 510,390 | 1,900,749 | 296,792 | 319,305 | 326,149 | 361,261 | 1,303,507 | ||||||||||||||||||||||||||||||
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Engineered Systems
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||||||||||||||||||||||||||||||||||||||||
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Fluid Solutions
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163,196 | 178,031 | 173,804 | 162,590 | 677,621 | 134,542 | 139,218 | 150,302 | 143,852 | 567,914 | ||||||||||||||||||||||||||||||
|
Refrigeration & Industrial
|
560,453 | 645,573 | 649,768 | 568,844 | 2,424,638 | 487,588 | 581,187 | 620,030 | 531,039 | 2,219,844 | ||||||||||||||||||||||||||||||
|
Eliminations
|
(382 | ) | (424 | ) | (431 | ) | (287 | ) | (1,524 | ) | (252 | ) | (365 | ) | (354 | ) | (345 | ) | (1,316 | ) | ||||||||||||||||||||
| 723,267 | 823,180 | 823,141 | 731,147 | 3,100,735 | 621,878 | 720,040 | 769,978 | 674,546 | 2,786,442 | |||||||||||||||||||||||||||||||
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Printing & Identification
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394,627 | 429,497 | 400,515 | 368,325 | 1,592,964 | 316,472 | 356,732 | 381,636 | 421,990 | 1,476,830 | ||||||||||||||||||||||||||||||
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Intra-segment eliminations
|
(822 | ) | (877 | ) | (1,015 | ) | (1,671 | ) | (4,385 | ) | (618 | ) | (737 | ) | (541 | ) | (704 | ) | (2,600 | ) | ||||||||||||||||||||
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Total consolidated revenue
|
$ | 1,812,078 | $ | 1,994,970 | $ | 2,138,606 | $ | 2,004,486 | $ | 7,950,140 | $ | 1,481,055 | $ | 1,664,447 | $ | 1,757,253 | $ | 1,737,436 | $ | 6,640,191 | ||||||||||||||||||||
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NET EARNINGS
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||||||||||||||||||||||||||||||||||||||||
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Segment Earnings:
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||||||||||||||||||||||||||||||||||||||||
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Communication Technologies
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$ | 47,325 | $ | 54,527 | $ | 53,433 | $ | 71,097 | $ | 226,382 | $ | 46,125 | $ | 52,593 | $ | 55,852 | $ | 50,645 | $ | 205,215 | ||||||||||||||||||||
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Energy
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93,051 | 110,447 | 125,268 | 121,871 | 450,637 | 68,277 | 81,552 | 78,959 | 87,325 | 316,113 | ||||||||||||||||||||||||||||||
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Engineered Systems
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98,235 | 128,570 | 125,529 | 92,852 | 445,186 | 81,038 | 106,590 | 115,878 | 79,138 | 382,644 | ||||||||||||||||||||||||||||||
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Printing & Identification
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54,637 | 67,967 | 59,447 | 44,483 | 226,534 | 42,043 | 54,759 | 62,471 | 78,095 | 237,368 | ||||||||||||||||||||||||||||||
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Total Segments
|
293,248 | 361,511 | 363,677 | 330,303 | 1,348,739 | 237,483 | 295,494 | 313,160 | 295,203 | 1,141,340 | ||||||||||||||||||||||||||||||
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Corporate expense / other
|
36,112 | 35,391 | 34,083 | 32,393 | 137,979 | 33,325 | 32,444 | 34,553 | 35,392 | 135,714 | ||||||||||||||||||||||||||||||
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Net interest expense
|
28,318 | 28,157 | 30,061 | 29,060 | 115,596 | 27,188 | 26,955 | 26,349 | 25,930 | 106,422 | ||||||||||||||||||||||||||||||
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Earnings from continuing operations before provision for income taxes
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228,818 | 297,963 | 299,533 | 268,850 | 1,095,164 | 176,970 | 236,095 | 252,258 | 233,881 | 899,204 | ||||||||||||||||||||||||||||||
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Provision for income taxes
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54,027 | 58,765 | 76,095 | 59,912 | 248,799 | 54,682 | 68,869 | 35,927 | 48,975 | 208,453 | ||||||||||||||||||||||||||||||
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Earnings from continuing operations
|
174,791 | 239,198 | 223,438 | 208,938 | 846,365 | 122,288 | 167,226 | 216,331 | 184,906 | 690,751 | ||||||||||||||||||||||||||||||
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Earnings (loss) from discontinued operations, net
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20,114 | 10,571 | (51,158 | ) | 69,351 | 48,878 | (14,161 | ) | 2,644 | 7,428 | 13,442 | 9,353 | ||||||||||||||||||||||||||||
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Net earnings
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$ | 194,905 | $ | 249,769 | $ | 172,280 | $ | 278,289 | $ | 895,243 | $ | 108,127 | $ | 169,870 | $ | 223,759 | $ | 198,348 | $ | 700,104 | ||||||||||||||||||||
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SEGMENT OPERATING MARGIN
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||||||||||||||||||||||||||||||||||||||||
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Communication Technologies
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17.6 | % | 18.9 | % | 13.2 | % | 17.9 | % | 16.6 | % | 18.7 | % | 19.5 | % | 19.9 | % | 18.1 | % | 19.1 | % | ||||||||||||||||||||
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Energy
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21.9 | % | 24.3 | % | 24.5 | % | 23.9 | % | 23.7 | % | 23.0 | % | 25.5 | % | 24.2 | % | 24.2 | % | 24.3 | % | ||||||||||||||||||||
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Engineered Systems
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13.6 | % | 15.6 | % | 15.2 | % | 12.7 | % | 14.4 | % | 13.0 | % | 14.8 | % | 15.0 | % | 11.7 | % | 13.7 | % | ||||||||||||||||||||
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Printing & Identification
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13.8 | % | 15.8 | % | 14.8 | % | 12.1 | % | 14.2 | % | 13.3 | % | 15.4 | % | 16.4 | % | 18.5 | % | 16.1 | % | ||||||||||||||||||||
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Total Segment
|
16.2 | % | 18.1 | % | 17.0 | % | 16.5 | % | 17.0 | % | 16.0 | % | 17.8 | % | 17.8 | % | 17.0 | % | 17.2 | % | ||||||||||||||||||||
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DEPRECIATION AND AMORTIZATION EXPENSE
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||||||||||||||||||||||||||||||||||||||||
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Communication Technologies
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$ | 18,685 | $ | 18,533 | $ | 34,360 | $ | 30,261 | $ | 101,839 | $ | 17,345 | $ | 17,494 | $ | 18,081 | $ | 19,342 | $ | 72,262 | ||||||||||||||||||||
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Energy
|
18,573 | 18,765 | 19,399 | 21,082 | 77,819 | 11,511 | 12,349 | 11,942 | 13,040 | 48,842 | ||||||||||||||||||||||||||||||
|
Engineered Systems
|
18,415 | 18,816 | 18,332 | 19,213 | 74,776 | 18,194 | 17,775 | 18,434 | 18,123 | 72,526 | ||||||||||||||||||||||||||||||
|
Printing & Identification
|
11,372 | 11,685 | 11,548 | 11,543 | 46,148 | 11,857 | 11,556 | 11,322 | 11,567 | 46,302 | ||||||||||||||||||||||||||||||
|
Corporate
|
586 | 626 | 636 | 713 | 2,561 | 369 | 336 | 658 | 674 | 2,037 | ||||||||||||||||||||||||||||||
| $ | 67,631 | $ | 68,425 | $ | 84,275 | $ | 82,812 | $ | 303,143 | $ | 59,276 | $ | 59,510 | $ | 60,437 | $ | 62,746 | $ | 241,969 | |||||||||||||||||||||
DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(continued)
(unaudited)(in thousands)
|
2011
|
2010
|
|||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 |
FY 2011
|
Q1 | Q2 | Q3 | Q4 |
FY 2010
|
|||||||||||||||||||||||||||||||
|
BOOKINGS
|
||||||||||||||||||||||||||||||||||||||||
|
Communication Technologies
|
$ | 274,611 | $ | 309,734 | $ | 410,616 | $ | 349,579 | $ | 1,344,540 | $ | 257,767 | $ | 304,026 | $ | 278,686 | $ | 287,786 | $ | 1,128,265 | ||||||||||||||||||||
|
Energy
|
495,125 | 472,543 | 498,212 | 519,525 | 1,985,405 | 300,441 | 326,217 | 326,080 | 366,277 | 1,319,015 | ||||||||||||||||||||||||||||||
|
Engineered Systems
|
||||||||||||||||||||||||||||||||||||||||
|
Fluids
|
173,626 | 175,539 | 174,772 | 158,895 | 682,832 | 136,459 | 147,215 | 145,823 | 144,389 | 573,886 | ||||||||||||||||||||||||||||||
|
Refrigeration & Industrial
|
660,449 | 623,929 | 602,488 | 625,840 | 2,512,706 | 596,293 | 605,034 | 527,269 | 563,300 | 2,291,896 | ||||||||||||||||||||||||||||||
|
Eliminations
|
(733 | ) | (884 | ) | 179 | (1,378 | ) | (2,816 | ) | (486 | ) | (638 | ) | (640 | ) | (648 | ) | (2,412 | ) | |||||||||||||||||||||
| 833,342 | 798,584 | 777,439 | 783,357 | 3,192,722 | 732,266 | 751,611 | 672,452 | 707,041 | 2,863,370 | |||||||||||||||||||||||||||||||
|
Printing & Identification
|
438,526 | 386,259 | 384,085 | 353,849 | 1,562,719 | 370,598 | 404,088 | 399,788 | 398,570 | 1,573,044 | ||||||||||||||||||||||||||||||
|
Intra-segment eliminations
|
(2,736 | ) | (3,370 | ) | (2,452 | ) | (3,153 | ) | (11,711 | ) | (1,641 | ) | (2,317 | ) | (2,396 | ) | (2,689 | ) | (9,043 | ) | ||||||||||||||||||||
|
Total consolidated bookings
|
$ | 2,038,868 | $ | 1,963,750 | $ | 2,067,900 | $ | 2,003,157 | $ | 8,073,675 | $ | 1,659,431 | $ | 1,783,625 | $ | 1,674,610 | $ | 1,756,985 | $ | 6,874,651 | ||||||||||||||||||||
|
BACKLOG
|
||||||||||||||||||||||||||||||||||||||||
|
Communication Technologies
|
$ | 410,843 | $ | 431,558 | $ | 483,512 | $ | 437,320 | $ | 347,980 | $ | 381,828 | $ | 396,581 | $ | 404,374 | ||||||||||||||||||||||||
|
Energy
|
240,198 | 255,889 | 243,401 | 246,351 | 123,456 | 128,058 | 136,374 | 152,183 | ||||||||||||||||||||||||||||||||
|
Engineered Systems
|
||||||||||||||||||||||||||||||||||||||||
|
Fluids
|
57,357 | 54,945 | 55,230 | 54,194 | 42,882 | 50,346 | 46,556 | 47,123 | ||||||||||||||||||||||||||||||||
|
Refrigeration & Industrial
|
544,995 | 523,011 | 469,876 | 528,118 | 480,604 | 502,479 | 413,318 | 446,267 | ||||||||||||||||||||||||||||||||
|
Eliminations
|
(339 | ) | (526 | ) | (94 | ) | (177 | ) | (189 | ) | (324 | ) | (267 | ) | (315 | ) | ||||||||||||||||||||||||
| 602,013 | 577,430 | 525,012 | 582,135 | 523,297 | 552,501 | 459,607 | 493,075 | |||||||||||||||||||||||||||||||||
|
Printing & Identification
|
262,629 | 220,619 | 197,792 | 180,871 | 166,439 | 209,178 | 235,360 | 213,589 | ||||||||||||||||||||||||||||||||
|
Intra-segment eliminations
|
(704 | ) | (1,178 | ) | (891 | ) | (193 | ) | (362 | ) | (569 | ) | (483 | ) | (729 | ) | ||||||||||||||||||||||||
|
Total consolidated backlog
|
$ | 1,514,979 | $ | 1,484,318 | $ | 1,448,826 | $ | 1,446,484 | $ | 1,160,810 | $ | 1,270,996 | $ | 1,227,439 | $ | 1,262,492 | ||||||||||||||||||||||||
DOVER CORPORATION
QUARTERLY EARNINGS PER SHARE
(unaudited)(in thousands, except per share data)
|
2011
|
2010
|
|||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 |
FY 2011
|
Q1 | Q2 | Q3 | Q4 |
FY 2010
|
|||||||||||||||||||||||||||||||
|
Basic earnings (loss) per common share:
|
||||||||||||||||||||||||||||||||||||||||
|
Continuing operations
|
$ | 0.94 | $ | 1.28 | $ | 1.20 | $ | 1.13 | $ | 4.55 | $ | 0.65 | $ | 0.90 | $ | 1.16 | $ | 0.99 | $ | 3.70 | ||||||||||||||||||||
|
Discontinued operations
|
0.11 | 0.06 | (0.28 | ) | 0.38 | 0.26 | (0.08 | ) | 0.01 | 0.04 | 0.07 | 0.05 | ||||||||||||||||||||||||||||
|
Net earnings
|
1.04 | 1.34 | 0.93 | 1.51 | 4.82 | 0.58 | 0.91 | 1.20 | 1.06 | 3.75 | ||||||||||||||||||||||||||||||
|
Diluted earnings (loss) per common share:
|
||||||||||||||||||||||||||||||||||||||||
|
Continuing operations
|
$ | 0.92 | $ | 1.26 | $ | 1.19 | $ | 1.12 | $ | 4.48 | $ | 0.65 | $ | 0.89 | $ | 1.15 | $ | 0.97 | $ | 3.65 | ||||||||||||||||||||
|
Discontinued operations
|
0.11 | 0.06 | (0.27 | ) | 0.37 | 0.26 | (0.08 | ) | 0.01 | 0.04 | 0.07 | 0.05 | ||||||||||||||||||||||||||||
|
Net earnings
|
1.03 | 1.32 | 0.91 | 1.49 | 4.74 | 0.58 | 0.90 | 1.19 | 1.04 | 3.70 | ||||||||||||||||||||||||||||||
|
Adjusted diluted earnings per common share (calculated below):
|
||||||||||||||||||||||||||||||||||||||||
|
Continuing operations
|
$ | 0.88 | $ | 1.14 | $ | 1.18 | $ | 1.07 | $ | 4.26 | $ | 0.65 | $ | 0.89 | $ | 0.95 | $ | 0.90 | $ | 3.38 | ||||||||||||||||||||
|
Net earnings (loss) and average shares used in calculated earnings (loss) per share amounts are as follows:
|
||||||||||||||||||||||||||||||||||||||||
|
Net earnings (loss) :
|
||||||||||||||||||||||||||||||||||||||||
|
Continuing operations
|
$ | 174,791 | $ | 239,198 | $ | 223,438 | $ | 208,938 | $ | 846,365 | $ | 122,288 | $ | 167,226 | $ | 216,331 | $ | 184,906 | $ | 690,751 | ||||||||||||||||||||
|
Discontinued operations
|
20,114 | 10,571 | (51,158 | ) | 69,351 | 48,878 | (14,161 | ) | 2,644 | 7,428 | 13,442 | 9,353 | ||||||||||||||||||||||||||||
|
Net earnings
|
194,905 | 249,769 | 172,280 | 278,289 | 895,243 | 108,127 | 169,870 | 223,759 | 198,348 | 700,104 | ||||||||||||||||||||||||||||||
|
Average shares outstanding:
|
||||||||||||||||||||||||||||||||||||||||
|
Basic
|
186,659 | 186,443 | 185,770 | 184,686 | 185,882 | 187,093 | 186,823 | 186,721 | 186,923 | 186,897 | ||||||||||||||||||||||||||||||
|
Diluted
|
190,090 | 189,705 | 188,436 | 187,208 | 188,887 | 187,886 | 188,720 | 188,565 | 189,863 | 189,170 | ||||||||||||||||||||||||||||||
NOTE:
Earnings from continuing operations are adjusted by discrete and other tax items to derive adjusted earnings from continuing operations and adjusted diluted earnings per common share as follows:
|
2011
|
2010
|
|||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 |
FY 2011
|
Q1 | Q2 | Q3 | Q4 |
FY 2010
|
|||||||||||||||||||||||||||||||
|
Adjusted earnings from continuing operations:
|
||||||||||||||||||||||||||||||||||||||||
|
Earnings from continuing operations
|
$ | 174,791 | $ | 239,198 | $ | 223,438 | $ | 208,938 | $ | 846,365 | $ | 122,288 | $ | 167,226 | $ | 216,331 | $ | 184,906 | $ | 690,751 | ||||||||||||||||||||
|
Gains from discrete and other tax items
|
8,016 | 22,338 | 2,390 | 8,590 | 41,334 | - | - | 36,956 | 13,296 | 50,252 | ||||||||||||||||||||||||||||||
|
Adjusted earnings from continuing operations
|
$ | 166,775 | $ | 216,860 | $ | 221,048 | $ | 200,348 | $ | 805,031 | $ | 122,288 | $ | 167,226 | $ | 179,375 | $ | 171,610 | $ | 640,499 | ||||||||||||||||||||
|
Adjusted diluted earnings per common share:
|
||||||||||||||||||||||||||||||||||||||||
|
Earnings from continuing operations
|
$ | 0.92 | $ | 1.26 | $ | 1.19 | $ | 1.12 | $ | 4.48 | $ | 0.65 | $ | 0.89 | $ | 1.15 | $ | 0.97 | $ | 3.65 | ||||||||||||||||||||
|
Gains from discrete and other tax items
|
0.04 | 0.12 | 0.01 | 0.05 | 0.22 | - | - | 0.20 | 0.07 | 0.27 | ||||||||||||||||||||||||||||||
|
Adjusted earnings from continuing operations
|
$ | 0.88 | $ | 1.14 | $ | 1.18 | $ | 1.07 | $ | 4.26 | $ | 0.65 | $ | 0.89 | $ | 0.95 | $ | 0.90 | $ | 3.38 | ||||||||||||||||||||
DOVER CORPORATION
QUARTERLY FREE CASH FLOW
(unaudited)(in thousands)
|
2011
|
2010
|
|||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 |
FY 2011
|
Q1 | Q2 | Q3 | Q4 |
FY 2010
|
|||||||||||||||||||||||||||||||
|
Cash from operations
|
$ | 117,503 | $ | 205,260 | $ | 376,614 | $ | 358,852 | $ | 1,058,229 | $ | 77,127 | $ | 221,561 | $ | 183,444 | $ | 419,730 | $ | 901,862 | ||||||||||||||||||||
|
Less: Additions to property, plant and equipment
|
(51,379 | ) | (72,338 | ) | (65,000 | ) | (83,092 | ) | (271,809 | ) | (38,467 | ) | (45,642 | ) | (39,718 | ) | (51,018 | ) | (174,845 | ) | ||||||||||||||||||||
|
Free cash flow
|
$ | 66,124 | $ | 132,922 | $ | 311,614 | $ | 275,760 | $ | 786,420 | $ | 38,660 | $ | 175,919 | $ | 143,726 | $ | 368,712 | $ | 727,017 | ||||||||||||||||||||
|
Free cash flow as a percentage of earnings from continuing operations
|
37.8 | % | 55.6 | % | 139.5 | % | 132.0 | % | 92.9 | % | 31.6 | % | 105.2 | % | 66.4 | % | 199.4 | % | 105.3 | % | ||||||||||||||||||||
|
Free cash flow as a percentage of revenue
|
3.6 | % | 6.7 | % | 14.6 | % | 13.8 | % | 9.9 | % | 2.6 | % | 10.6 | % | 8.2 | % | 21.2 | % | 10.9 | % | ||||||||||||||||||||
DOVER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)(in thousands)
|
At December 31, 2011
|
At December 31, 2010
|
|||||||
|
Assets:
|
||||||||
|
Cash and cash equivalents
|
$ | 1,206,755 | $ | 1,189,079 | ||||
|
Short-term investments
|
- | 121,734 | ||||||
|
Receivables, net of allowances
|
1,190,265 | 1,023,099 | ||||||
|
Inventories, net
|
803,346 | 657,962 | ||||||
|
Deferred tax and other current assets
|
196,764 | 139,751 | ||||||
|
Property, plant and equipment, net
|
1,000,870 | 785,624 | ||||||
|
Goodwill
|
3,787,117 | 3,107,478 | ||||||
|
Intangible assets, net
|
1,207,084 | 799,281 | ||||||
|
Other assets
|
104,808 | 107,642 | ||||||
|
Assets of discontinued operations
|
4,441 | 627,093 | ||||||
| $ | 9,501,450 | $ | 8,558,743 | |||||
|
Liabilities and Stockholders' Equity
|
||||||||
|
Notes payable and current maturities of long-term debt
|
$ | 1,022 | $ | 16,590 | ||||
|
Payables and accrued expenses
|
1,201,959 | 1,128,458 | ||||||
|
Deferred taxes and other noncurrent liabilities
|
1,061,767 | 866,720 | ||||||
|
Long-term debt
|
2,186,230 | 1,790,886 | ||||||
|
Liabilities of discontinued operations
|
119,917 | 229,527 | ||||||
|
Stockholders' equity
|
4,930,555 | 4,526,562 | ||||||
| $ | 9,501,450 | $ | 8,558,743 | |||||
DOVER CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)(in thousands)
|
Year Ended December 31,
|
||||||||
|
2011
|
2010
|
|||||||
|
Operating activities:
|
||||||||
|
Net earnings
|
$ | 895,243 | $ | 700,104 | ||||
|
Gain from discontinued operations, net of tax
|
(48,878 | ) | (9,353 | ) | ||||
|
Depreciation and amortization
|
303,143 | 241,969 | ||||||
|
Stock-based compensation
|
25,991 | 21,207 | ||||||
|
Contributions to employee benefit plans
|
(63,567 | ) | (58,201 | ) | ||||
|
Net change in assets and liabilities
|
(53,703 | ) | 6,136 | |||||
|
Net cash provided by operating activities of continuing operations
|
1,058,229 | 901,862 | ||||||
|
Investing activities:
|
||||||||
|
Proceeds from sale of short-term investments
|
124,410 | 553,466 | ||||||
|
Purchase of short-term investments
|
- | (466,881 | ) | |||||
|
Proceeds from the sale of property and equipment
|
9,986 | 16,660 | ||||||
|
Additions to property, plant and equipment
|
(271,809 | ) | (174,845 | ) | ||||
|
Proceeds from sale of businesses
|
516,901 | 4,500 | ||||||
|
Settlement of net investment hedge
|
(18,211 | ) | - | |||||
|
Acquisitions (net of cash acquired)
|
(1,382,217 | ) | (104,418 | ) | ||||
|
Net cash used in investing activities of continuing operations
|
(1,020,940 | ) | (171,518 | ) | ||||
|
Financing activities:
|
||||||||
|
Increase (decrease) in debt, net
|
371,315 | (60,855 | ) | |||||
|
Purchase of common stock
|
(242,488 | ) | (123,555 | ) | ||||
|
Proceeds from exercise of stock options, including tax benefits
|
39,826 | 79,721 | ||||||
|
Dividends to stockholders
|
(219,154 | ) | (200,099 | ) | ||||
|
Net cash used in financing activities of continuing operations
|
(50,501 | ) | (304,788 | ) | ||||
|
Net cash provided by discontinued operations
|
14,898 | 37,079 | ||||||
|
Effect of exchange rate changes on cash
|
15,990 | 10,008 | ||||||
|
Net increase in cash and cash equivalents
|
17,676 | 472,643 | ||||||
|
Cash and cash equivalents at beginning of period
|
1,189,079 | 716,436 | ||||||
|
Cash and cash equivalents at end of period
|
$ | 1,206,755 | $ | 1,189,079 | ||||
ADDITIONAL INFORMATION
FOURTH QUARTER AND FULL YEAR 2011
Acquisitions
During the fourth quarter of 2011, the Company completed two add-on acquisitions in the Engineered Systems segment. For the full year 2011, Dover made a total of nine acquisitions for consideration totaling $1.4 billion. This included the acquisition of Harbison-Fischer within the Energy segment in the first quarter and the acquisition of Sound Solutions within the Communication Technologies segment in the third quarter.
Dispositions
In the fourth quarter of 2011, the Company completed the sale of Heil Trailer International, resulting in an after-tax gain of $0.34 diluted earnings per share ("EPS"). Fourth quarter net earnings from discontinued operations was $0.37 EPS, which includes income from the operations of Heil prior to sale as well as adjustments to other discontinued assets and liabilities. On a full-year basis, the Company generated a net loss on sale of $0.02 EPS, which includes the $0.35 EPS loss on the sale of Paladin and Crenlo in the third quarter and other adjustments for prior year dispositions. For the full year, net earnings from discontinued operations was $0.26 EPS, which includes income from the operations of the businesses sold in 2011 as well as adjustments to other discontinued assets and liabilities.
Tax Rate
The effective tax rate on continuing operations for the fourth quarter of 2011 was 22.3%, compared to the prior-year fourth quarter rate of 20.9%. On a full year basis, the effective tax rates on continuing operations for 2011 and 2010 were 22.7% and 23.2%, respectively. The 2011 and 2010 rates were favorably impacted by discrete and other items, as shown in the reconciliation for quarterly earnings per share included herein. After adjusting for discrete and other items, the full year rates of 26.5% for 2011 and 28.8% for 2010 primarily reflect the impact of changes in the geographic mix of earnings.
Revenue Growth Factors
|
2011
|
|||||||||||
|
Q1
|
Q2
|
Q3
|
Q4
|
Full Year
|
|||||||
|
Organic
|
17.5%
|
13.2%
|
9.7%
|
5.9%
|
11.3%
|
||||||
|
Acquisitions
|
4.1%
|
3.9%
|
9.2%
|
9.4%
|
6.8%
|
||||||
|
Currency translation
|
0.8%
|
2.8%
|
2.8%
|
0.1%
|
1.6%
|
||||||
|
22.4%
|
19.9%
|
21.7%
|
15.4%
|
19.7%
|
|||||||
Free Cash Flow
The following table is a reconciliation of free cash flow (a non-GAAP measure) from cash flow provided by operating activities:
|
Three Months Ended December 31,
|
Year Ended December 31,
|
|||||||||||||||
|
Free Cash Flow (in thousands)
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
|
Cash flow provided by operating activities
|
$ | 358,852 | $ | 419,730 | $ | 1,058,229 | $ | 901,862 | ||||||||
|
Less: Additions to property, plant and equipment
|
(83,092 | ) | (51,018 | ) | (271,809 | ) | (174,845 | ) | ||||||||
|
Free cash flow
|
$ | 275,760 | $ | 368,712 | $ | 786,420 | $ | 727,017 | ||||||||
|
Free cash flow as a percentage of revenue
|
13.8 | % | 21.2 | % | 9.9 | % | 10.9 | % | ||||||||
|
Free cash flow as a percentage of earnings from continuing operations
|
92.9 | % | 105.3 | % | ||||||||||||
The full year increase in 2011 free cash flow reflects higher earnings from continuing operations before depreciation and amortization and lower investment in working capital, partially offset by higher tax payments in 2011. In 2011, the Company made tax payments of approximately $280 million compared to $103 million in the prior year. Free cash flow is also impacted by higher capital expenditures in 2011 necessary to fund expansion in the Company’s high-growth businesses.
Share Repurchases
During the year ended December 31, 2011, pursuant to a five-year 10,000,000 share repurchase program authorized by the Board of Directors in May 2007, the Company purchased approximately 4.0 million shares of its common stock in the open market at an average price of $58.78 per share. Approximately 2.5 million shares remain authorized for repurchase under this five-year authorization as of December 31, 2011.
Capitalization
The following table provides a summary reconciliation of total debt and net debt to net capitalization to the most directly comparable GAAP measures:
|
Net Debt to Net Capitalization Ratio (in thousands)
|
At December 31, 2011
|
At December 31, 2010
|
|||
|
Current maturities of long-term debt
|
$ |
1,022
|
$ 1,590
|
||
|
Commercial paper
|
-
|
15,000
|
|||
|
Long-term debt
|
2,186,230
|
1,790,886
|
|||
|
Total debt
|
2,187,252
|
1,807,476
|
|||
|
Less: Cash, cash equivalents and short-term investments
|
(1,206,755)
|
(1,310,813)
|
|||
|
Net debt
|
980,497
|
496,663
|
|||
|
Add: Stockholders' equity
|
4,930,555
|
4,526,562
|
|||
|
Net capitalization
|
$ |
5,911,052
|
$ 5,023,225
|
||
|
Net debt to net capitalization
|
16.6%
|
9.9%
|
|||
The Company’s net debt to net capitalization ratio increased at December 31, 2011 primarily due to the use of cash and debt to fund acquisitions totaling $1.4 billion during the year. Total debt increased by $380 million during 2011, primarily due to net borrowings of $789 million under the 4.3% 10-year Notes due 2021 and 5.375% 30-year Notes due 2041 issued in February, part of which were used to repay $400 million of other borrowings, principally commercial paper used to repay the 6.50% 10-year Notes which came due earlier in February 2011. In 2011, the Company also received cash proceeds of $517 million primarily from the sale of three businesses.
Non-GAAP Information:
These Investor Supplement tables contain historical financial information presented under Dover’s new segment structure, as discussed within this release. These segment level disclosures are considered “Non-GAAP” financial information until such time that the new segment reporting structure is included within a periodic filing with the Securities and Exchange Commission. Management believes this non-GAAP financial information is useful to investors to better understand historical trends under the revised segment structure, which the company will be reporting under in its Form 10-K for the year ending December 31, 2011. Dover has disclosed herein non-GAAP measures of adjusted earnings from continuing operations used in calculating adjusted diluted earnings per common share, as management believes this information is useful to investors to better understand the company’s ongoing profitability and facilitates easier comparisons of the company’s profitability to prior and future periods and to its peers. The company has also disclosed herein the non-GAAP measure of free cash flow. Management believes free cash flow is an important measure of the company's operating performance and liquidity that provides both management and investors a measurement of cash generated from operations that is available to fund acquisitions, pay dividends, repay debt and repurchase its common stock.
Exhibit 99.2
