Attached files
file | filename |
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8-K - FORM 8-K - DOVER Corp | y89311e8vk.htm |
EX-99.1 - EX-99.1 - DOVER Corp | y89311exv99w1.htm |
EX-99.3 - EX-99.3 - DOVER Corp | y89311exv99w3.htm |
EXHIBIT 99.2
INVESTOR SUPPLEMENT
FOURTH QUARTER AND FULL YEAR 2010
Acquisitions
During the fourth quarter of 2010, the Company completed one add-on acquisition in the Fluid
Management segment. During 2010, Dover made a total of six add-on acquisitions for consideration
totaling $104.4 million, net of cash acquired. The full-year diluted earnings per share impact of
these 2010 acquisitions was $0.02, with minimal impact during the quarter.
Further, during the fourth quarter, the Company signed a definitive agreement to acquire the Sound
Solutions business of NXP Semiconductors. Sound Solutions is a leading manufacturer of speakers
and receivers for the cell phone market and will become part of Knowles Electronics. The purchase
price is $855 million, subject to customary regulatory approvals, and the deal is expected to close
around the end of the first quarter of 2011.
Effective January 3, 2011, the Company completed the acquisition of Harbison-Fischer, Inc., a
Texas-based leading designer and manufacturer of down-hole rod pumps and related products for
$402.5 million, subject to normal closing adjustments. Harbison-Fischers 2011 revenue is expected
to be approximately $160 million. The business will become part of Norris Production Solutions,
which is an operating unit of Dovers Fluid Management segment.
Dispositions
In 2010, the Company completed the sale of a line of business which was reported as a discontinued
operation, resulting in a loss of approximately $14.0 million.
In addition, during the third and fourth quarters of 2010, the Company reached final settlement on
certain discrete tax matters related to businesses previously discontinued and sold, which resulted
in tax benefits of $4.5 million and $7.1 million, respectively. These items, along with other
minor expense and accrual adjustments related to disposed businesses, drove a gain on discontinued
operations of $6.6 million in the fourth quarter and a full year loss of $7.8 million.
Tax Rate
The effective tax rate for continuing operations for the fourth quarter of 2010 was 21.4%, compared
to the prior year rate of 27.2%. The 2010 rate was favorably impacted by benefits recognized for
tax positions that were effectively settled. On a full year basis, the effective tax rates for
continuing operations for 2010 and 2009 were 23.5% and 24.4%, respectively. The full year rates
for 2010 and 2009 reflect the favorable impact of benefits recognized for tax positions that were
effectively settled, and the favorable impact of a higher percentage of non-U.S. earnings in low
tax rate jurisdictions.
Revenue Growth Factors
2010 | ||||||||||||||||||||
Revenue Growth | Q1 | Q2 | Q3 | Q4 | Full Year | |||||||||||||||
Organic |
7.0 | % | 23.7 | % | 24.7 | % | 23.3 | % | 20.2 | % | ||||||||||
Acquisitions |
5.1 | % | 3.9 | % | 2.7 | % | 2.5 | % | 3.5 | % | ||||||||||
Currency translation |
2.7 | % | 0.8 | % | -1.6 | % | -1.3 | % | -0.2 | % | ||||||||||
14.8 | % | 28.4 | % | 25.8 | % | 24.5 | % | 23.5 | % | |||||||||||
Cash Flow
The following table is a reconciliation of free cash flow (a non-GAAP measure) from cash flows from
operating activities.
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
Free Cash Flow (in thousands) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Cash flow provided by operating activities |
$ | 431,439 | $ | 247,947 | $ | 950,551 | $ | 802,060 | ||||||||
Less: Capital expenditures |
(53,380 | ) | (36,759 | ) | (183,217 | ) | (120,009 | ) | ||||||||
Free cash flow |
$ | 378,059 | $ | 211,188 | $ | 767,334 | $ | 682,051 | ||||||||
Free cash flow as a percentage of revenue |
20.2 | % | 14.0 | % | 10.8 | % | 11.8 | % | ||||||||
Free cash flow as a percentage of earnings from continuing operations |
108.4 | % | 183.4 | % | ||||||||||||
The full year increase in free cash flow reflects higher earnings from continuing operations before
depreciation and amortization. This was offset by an increase in Adjusted Working Capital (a
non-GAAP measure calculated as accounts receivable, plus inventory, less accounts payable), which
increased from the prior year end by $240.2 million, or 22% to $1,332.8 million which reflected an
increase in receivables of $209.0 million, an increase in inventory of $143.2 million and an
increase in accounts payable of $112.0 million. Excluding acquisitions and the effects of foreign
exchange translation, Adjusted Working Capital would have increased by $226.1 million, or 21%.
Average Annual Adjusted Working Capital as a percentage of revenue (a non-GAAP measure calculated
as the five-quarter average balance of accounts receivable, plus inventory, less accounts payable
divided by the trailing twelve months of revenue) decreased to 17.6% at December 31, 2010 from
19.9% at December 31, 2009 and inventory turns were 6.7 at December 31, 2010 compared to 6.2 at
December 31, 2009.
Share Repurchases
During the year ended December 31, 2010, pursuant to a five-year 10,000,000 share repurchase
program authorized by the Board of Directors in May 2007, the Company purchased approximately 2.3
million shares of its common stock in the open market at an average price of $51.13 per share.
Approximately 6.6 million shares remain authorized for repurchase under this five-year
authorization as of December 31, 2010.
Capitalization
The following table provides a summary reconciliation of total debt and net debt to total
capitalization to the most directly comparable GAAP measures:
At December 31, | At December 31, | |||||||
Net Debt to Total Capitalization Ratio (in thousands) | 2010 | 2009 | ||||||
Current maturities of long-term debt |
$ | 1,925 | $ | 35,624 | ||||
Commercial paper |
15,000 | | ||||||
Long-term debt |
1,790,886 | 1,825,260 | ||||||
Total debt |
1,807,811 | 1,860,884 | ||||||
Less: Cash, cash equivalents and short-term investments |
(1,309,095 | ) | (938,174 | ) | ||||
Net debt |
498,716 | 922,710 | ||||||
Add: Stockholders equity |
4,526,562 | 4,083,608 | ||||||
Total capitalization |
$ | 5,025,278 | $ | 5,006,318 | ||||
Net debt to total capitalization |
9.9 | % | 18.4 | % | ||||
Net debt at December 31, 2010 decreased $424.0 million primarily as a result of cash generated from
operations. The decrease in long-term debt is due to scheduled repayments, coupled with the early
extinguishment of a structured non-interest bearing loan in the third quarter. The decrease in net
debt to total capitalization reflects strong free cash flow from operations, which was used to fund
capital additions, acquisitions and share repurchases.
DOVER CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
(in thousands, except per share data)
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
(in thousands, except per share data)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue |
$ | 1,875,541 | $ | 1,506,661 | $ | 7,132,648 | $ | 5,775,689 | ||||||||
Cost of goods and services |
1,155,423 | 941,227 | 4,399,990 | 3,676,535 | ||||||||||||
Gross profit |
720,118 | 565,434 | 2,732,658 | 2,099,154 | ||||||||||||
Selling and administrative expenses |
450,721 | 400,635 | 1,697,721 | 1,511,111 | ||||||||||||
Operating earnings |
269,397 | 164,799 | 1,034,937 | 588,043 | ||||||||||||
Interest expense, net |
25,895 | 26,838 | 106,341 | 100,375 | ||||||||||||
Other expense (income), net |
(376 | ) | (2,825 | ) | 3,512 | (3,950 | ) | |||||||||
Earnings before provision for income
taxes and discontinued operations |
243,878 | 140,786 | 925,084 | 491,618 | ||||||||||||
Provision for income taxes |
52,107 | 38,346 | 217,176 | 119,724 | ||||||||||||
Earnings from continuing operations |
191,771 | 102,440 | 707,908 | 371,894 | ||||||||||||
Earnings (loss) from discontinued operations, net |
6,577 | (3,394 | ) | (7,804 | ) | (15,456 | ) | |||||||||
Net earnings |
$ | 198,348 | $ | 99,046 | $ | 700,104 | $ | 356,438 | ||||||||
Basic earnings (loss) per common share: |
||||||||||||||||
Earnings from continuing operations |
$ | 1.03 | $ | 0.55 | $ | 3.79 | $ | 2.00 | ||||||||
Gain (loss) from discontinued operations, net |
0.04 | (0.02 | ) | (0.04 | ) | (0.08 | ) | |||||||||
Net earnings |
1.06 | 0.53 | 3.75 | 1.91 | ||||||||||||
Weighted average shares outstanding |
186,923 | 186,310 | 186,897 | 186,136 | ||||||||||||
Diluted earnings (loss) per common share: |
||||||||||||||||
Earnings from continuing operations |
$ | 1.01 | $ | 0.55 | $ | 3.74 | $ | 1.99 | ||||||||
Gain (loss) from discontinued operations, net |
0.03 | (0.02 | ) | (0.04 | ) | (0.08 | ) | |||||||||
Net earnings |
1.04 | 0.53 | 3.70 | 1.91 | ||||||||||||
Weighted average shares outstanding |
189,863 | 187,212 | 189,170 | 186,736 | ||||||||||||
Dividends paid per common share |
$ | 0.275 | $ | 0.26 | $ | 1.07 | $ | 1.02 | ||||||||
DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited)
(in thousands)
QUARTERLY SEGMENT INFORMATION
(unaudited)
(in thousands)
2009 | 2010 | |||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY 2009 | Q1 | Q2 | Q3 | Q4 | FY 2010 | |||||||||||||||||||||||||||||||
REVENUE |
||||||||||||||||||||||||||||||||||||||||
Industrial Products |
||||||||||||||||||||||||||||||||||||||||
Material Handling |
$ | 186,651 | $ | 153,574 | $ | 154,238 | $ | 165,890 | $ | 660,353 | $ | 189,052 | $ | 214,295 | $ | 220,997 | $ | 229,987 | $ | 854,331 | ||||||||||||||||||||
Mobile Equipment |
248,293 | 229,521 | 242,011 | 242,352 | 962,177 | 240,138 | 248,523 | 250,664 | 255,834 | 995,159 | ||||||||||||||||||||||||||||||
Eliminations |
(152 | ) | (147 | ) | (209 | ) | (230 | ) | (738 | ) | (392 | ) | (432 | ) | (453 | ) | (402 | ) | (1,679 | ) | ||||||||||||||||||||
434,792 | 382,948 | 396,040 | 408,012 | 1,621,792 | 428,798 | 462,386 | 471,208 | 485,419 | 1,847,811 | |||||||||||||||||||||||||||||||
Engineered Systems |
||||||||||||||||||||||||||||||||||||||||
Product Identification |
177,357 | 193,019 | 211,952 | 219,948 | 802,276 | 212,500 | 219,551 | 221,677 | 236,743 | 890,471 | ||||||||||||||||||||||||||||||
Engineered Products |
223,426 | 274,398 | 308,741 | 253,095 | 1,059,660 | 271,773 | 357,570 | 398,685 | 311,176 | 1,339,204 | ||||||||||||||||||||||||||||||
400,783 | 467,417 | 520,693 | 473,043 | 1,861,936 | 484,273 | 577,121 | 620,362 | 547,919 | 2,229,675 | |||||||||||||||||||||||||||||||
Fluid Management |
||||||||||||||||||||||||||||||||||||||||
Energy |
176,334 | 138,415 | 144,664 | 164,798 | 624,211 | 205,327 | 216,020 | 220,001 | 244,234 | 885,582 | ||||||||||||||||||||||||||||||
Fluid Solutions |
154,488 | 156,897 | 164,604 | 170,860 | 646,849 | 175,504 | 187,759 | 196,554 | 194,833 | 754,650 | ||||||||||||||||||||||||||||||
Eliminations |
(51 | ) | (42 | ) | (21 | ) | (36 | ) | (150 | ) | (31 | ) | (105 | ) | (127 | ) | (179 | ) | (442 | ) | ||||||||||||||||||||
330,771 | 295,270 | 309,247 | 335,622 | 1,270,910 | 380,800 | 403,674 | 416,428 | 438,888 | 1,639,790 | |||||||||||||||||||||||||||||||
Electronic Technologies |
214,035 | 245,953 | 275,266 | 291,700 | 1,026,954 | 290,989 | 345,607 | 381,386 | 405,682 | 1,423,664 | ||||||||||||||||||||||||||||||
Intra-segment eliminations |
(1,295 | ) | (1,257 | ) | (1,635 | ) | (1,716 | ) | (5,903 | ) | (1,590 | ) | (2,092 | ) | (2,243 | ) | (2,367 | ) | (8,292 | ) | ||||||||||||||||||||
Total consolidated revenue |
$ | 1,379,086 | $ | 1,390,331 | $ | 1,499,611 | $ | 1,506,661 | $ | 5,775,689 | $ | 1,583,270 | $ | 1,786,696 | $ | 1,887,141 | $ | 1,875,541 | $ | 7,132,648 | ||||||||||||||||||||
NET EARNINGS |
||||||||||||||||||||||||||||||||||||||||
Segment Earnings: |
||||||||||||||||||||||||||||||||||||||||
Industrial Products |
$ | 34,544 | $ | 25,421 | $ | 38,119 | $ | 41,673 | $ | 139,757 | $ | 51,039 | $ | 61,635 | $ | 59,473 | $ | 54,238 | $ | 226,385 | ||||||||||||||||||||
Engineered Systems |
43,306 | 57,462 | 78,194 | 48,306 | 227,268 | 54,843 | 84,655 | 91,442 | 70,966 | 301,906 | ||||||||||||||||||||||||||||||
Fluid Management |
75,441 | 55,573 | 60,677 | 67,578 | 259,269 | 86,767 | 96,168 | 101,847 | 103,638 | 388,420 | ||||||||||||||||||||||||||||||
Electronic Technologies |
(12,110 | ) | 17,993 | 38,160 | 39,651 | 83,694 | 44,905 | 59,582 | 69,617 | 76,324 | 250,428 | |||||||||||||||||||||||||||||
Total Segments |
141,181 | 156,449 | 215,150 | 197,208 | 709,988 | 237,554 | 302,040 | 322,379 | 305,166 | 1,167,139 | ||||||||||||||||||||||||||||||
Corporate expense / other |
(24,691 | ) | (29,614 | ) | (34,106 | ) | (29,584 | ) | (117,995 | ) | (33,325 | ) | (32,443 | ) | (34,553 | ) | (35,393 | ) | (135,714 | ) | ||||||||||||||||||||
Net interest expense |
(22,398 | ) | (24,840 | ) | (26,299 | ) | (26,838 | ) | (100,375 | ) | (27,169 | ) | (26,942 | ) | (26,335 | ) | (25,895 | ) | (106,341 | ) | ||||||||||||||||||||
Earnings from continuing
operations before provision
for income taxes |
94,092 | 101,995 | 154,745 | 140,786 | 491,618 | 177,060 | 242,655 | 261,491 | 243,878 | 925,084 | ||||||||||||||||||||||||||||||
Provision for income taxes |
32,996 | 1,121 | 47,261 | 38,346 | 119,724 | 55,575 | 70,762 | 38,732 | 52,107 | 217,176 | ||||||||||||||||||||||||||||||
Earnings from
continuing operations |
61,096 | 100,874 | 107,484 | 102,440 | 371,894 | 121,485 | 171,893 | 222,759 | 191,771 | 707,908 | ||||||||||||||||||||||||||||||
Earnings (loss) from
discontinued operations, net |
(7,668 | ) | (3,794 | ) | (600 | ) | (3,394 | ) | (15,456 | ) | (13,358 | ) | (2,023 | ) | 1,000 | 6,577 | (7,804 | ) | ||||||||||||||||||||||
Net earnings |
$ | 53,428 | $ | 97,080 | $ | 106,884 | $ | 99,046 | $ | 356,438 | $ | 108,127 | $ | 169,870 | $ | 223,759 | $ | 198,348 | $ | 700,104 | ||||||||||||||||||||
SEGMENT OPERATING MARGIN |
||||||||||||||||||||||||||||||||||||||||
Industrial Products |
7.9 | % | 6.6 | % | 9.6 | % | 10.2 | % | 8.6 | % | 11.9 | % | 13.3 | % | 12.6 | % | 11.2 | % | 12.3 | % | ||||||||||||||||||||
Engineered Systems |
10.8 | % | 12.3 | % | 15.0 | % | 10.2 | % | 12.2 | % | 11.3 | % | 14.7 | % | 14.7 | % | 13.0 | % | 13.5 | % | ||||||||||||||||||||
Fluid Management |
22.8 | % | 18.8 | % | 19.6 | % | 20.1 | % | 20.4 | % | 22.8 | % | 23.8 | % | 24.5 | % | 23.6 | % | 23.7 | % | ||||||||||||||||||||
Electronic Technologies |
-5.7 | % | 7.3 | % | 13.9 | % | 13.6 | % | 8.1 | % | 15.4 | % | 17.2 | % | 18.3 | % | 18.8 | % | 17.6 | % | ||||||||||||||||||||
Total Segment |
10.2 | % | 11.3 | % | 14.3 | % | 13.1 | % | 12.3 | % | 15.0 | % | 16.9 | % | 17.1 | % | 16.3 | % | 16.4 | % |
DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(continued)
(unaudited)
(in thousands)
QUARTERLY SEGMENT INFORMATION
(continued)
(unaudited)
(in thousands)
2009 | 2010 | |||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY 2009 | Q1 | Q2 | Q3 | Q4 | FY 2010 | |||||||||||||||||||||||||||||||
BOOKINGS |
||||||||||||||||||||||||||||||||||||||||
Industrial Products |
||||||||||||||||||||||||||||||||||||||||
Material Handling |
$ | 118,344 | $ | 126,224 | $ | 162,759 | $ | 180,349 | $ | 587,676 | $ | 204,098 | $ | 223,787 | $ | 222,961 | $ | 248,948 | $ | 899,794 | ||||||||||||||||||||
Mobile Equipment |
210,558 | 245,937 | 191,539 | 253,130 | 901,164 | 231,128 | 288,887 | 233,731 | 279,368 | 1,033,114 | ||||||||||||||||||||||||||||||
Eliminations |
(23 | ) | (202 | ) | (337 | ) | (424 | ) | (986 | ) | (407 | ) | (303 | ) | (444 | ) | (976 | ) | (2,130 | ) | ||||||||||||||||||||
328,879 | 371,959 | 353,961 | 433,055 | 1,487,854 | 434,819 | 512,371 | 456,248 | 527,340 | 1,930,778 | |||||||||||||||||||||||||||||||
Engineered Systems |
||||||||||||||||||||||||||||||||||||||||
Product Identification |
175,680 | 205,736 | 212,642 | 223,301 | 817,359 | 220,410 | 223,203 | 218,213 | 241,048 | 902,874 | ||||||||||||||||||||||||||||||
Engineered Products |
236,354 | 259,868 | 258,634 | 263,211 | 1,018,067 | 368,134 | 379,048 | 329,119 | 332,142 | 1,408,443 | ||||||||||||||||||||||||||||||
412,034 | 465,604 | 471,276 | 486,512 | 1,835,426 | 588,544 | 602,251 | 547,332 | 573,190 | 2,311,317 | |||||||||||||||||||||||||||||||
Fluid Management |
||||||||||||||||||||||||||||||||||||||||
Energy |
142,721 | 132,855 | 157,763 | 176,706 | 610,045 | 208,669 | 226,301 | 213,247 | 247,143 | 895,360 | ||||||||||||||||||||||||||||||
Fluid Solutions |
150,375 | 159,483 | 165,601 | 169,639 | 645,098 | 179,037 | 192,035 | 195,865 | 191,065 | 758,002 | ||||||||||||||||||||||||||||||
Eliminations |
(43 | ) | (39 | ) | (41 | ) | (17 | ) | (140 | ) | (85 | ) | (51 | ) | (144 | ) | (895 | ) | (1,175 | ) | ||||||||||||||||||||
293,053 | 292,299 | 323,323 | 346,328 | 1,255,003 | 387,621 | 418,285 | 408,968 | 437,313 | 1,652,187 | |||||||||||||||||||||||||||||||
Electronic Technologies |
223,707 | 243,274 | 283,035 | 305,266 | 1,055,282 | 358,477 | 394,441 | 402,332 | 389,704 | 1,544,954 | ||||||||||||||||||||||||||||||
Intra-segment eliminations |
(1,290 | ) | (1,436 | ) | (1,790 | ) | (1,600 | ) | (6,116 | ) | (1,616 | ) | (2,244 | ) | (2,278 | ) | (2,644 | ) | (8,782 | ) | ||||||||||||||||||||
Total consolidated bookings |
$ | 1,256,383 | $ | 1,371,700 | $ | 1,429,805 | $ | 1,569,561 | $ | 5,627,449 | $ | 1,767,845 | $ | 1,925,104 | $ | 1,812,602 | $ | 1,924,903 | $ | 7,430,454 | ||||||||||||||||||||
BACKLOG |
||||||||||||||||||||||||||||||||||||||||
Industrial Products |
||||||||||||||||||||||||||||||||||||||||
Material Handling |
$ | 120,066 | $ | 93,247 | $ | 102,146 | $ | 116,658 | $ | 131,521 | $ | 140,452 | $ | 142,959 | $ | 165,505 | ||||||||||||||||||||||||
Mobile Equipment |
349,358 | 368,315 | 318,496 | 329,774 | 319,801 | 359,727 | 344,160 | 368,140 | ||||||||||||||||||||||||||||||||
Eliminations |
(48 | ) | (143 | ) | (170 | ) | (371 | ) | (386 | ) | (257 | ) | (248 | ) | (822 | ) | ||||||||||||||||||||||||
469,376 | 461,419 | 420,472 | 446,061 | 450,936 | 499,922 | 486,871 | 532,823 | |||||||||||||||||||||||||||||||||
Engineered Systems |
||||||||||||||||||||||||||||||||||||||||
Product Identification |
57,801 | 66,288 | 72,523 | 74,700 | 78,976 | 80,550 | 80,986 | 86,315 | ||||||||||||||||||||||||||||||||
Engineered Products |
196,394 | 245,165 | 199,888 | 218,520 | 314,465 | 334,971 | 267,545 | 288,969 | ||||||||||||||||||||||||||||||||
254,195 | 311,453 | 272,411 | 293,220 | 393,441 | 415,521 | 348,531 | 375,284 | |||||||||||||||||||||||||||||||||
Fluid Management |
||||||||||||||||||||||||||||||||||||||||
Energy |
58,771 | 54,734 | 66,043 | 77,173 | 76,844 | 84,800 | 84,659 | 94,113 | ||||||||||||||||||||||||||||||||
Fluid Solutions |
60,781 | 63,788 | 65,081 | 60,540 | 63,535 | 65,639 | 69,130 | 65,525 | ||||||||||||||||||||||||||||||||
Eliminations |
(5 | ) | (1 | ) | (21 | ) | (2 | ) | (55 | ) | (1 | ) | (17 | ) | (33 | ) | ||||||||||||||||||||||||
119,547 | 118,521 | 131,103 | 137,711 | 140,324 | 150,438 | 153,772 | 159,605 | |||||||||||||||||||||||||||||||||
Electronic Technologies |
186,850 | 185,512 | 194,414 | 206,893 | 271,340 | 318,450 | 357,800 | 342,578 | ||||||||||||||||||||||||||||||||
Intra-segment eliminations |
(42 | ) | (242 | ) | (426 | ) | (337 | ) | (362 | ) | (570 | ) | (490 | ) | (748 | ) | ||||||||||||||||||||||||
Total consolidated backlog |
$ | 1,029,926 | $ | 1,076,663 | $ | 1,017,974 | $ | 1,083,548 | $ | 1,255,679 | $ | 1,383,761 | $ | 1,346,484 | $ | 1,409,542 | ||||||||||||||||||||||||
ACQUISITION RELATED DEPRECIATION AND AMORTIZATION EXPENSE * | ||||||||||||||||||||||||||||||||||||||||
Industrial Products |
$ | 8,387 | $ | 7,709 | $ | 7,770 | $ | 8,182 | $ | 32,048 | $ | 7,575 | $ | 7,620 | $ | 7,774 | $ | 8,823 | $ | 31,792 | ||||||||||||||||||||
Engineered Systems |
6,070 | 6,437 | 6,580 | 7,579 | 26,666 | 7,915 | 7,057 | 6,838 | 6,878 | 28,688 | ||||||||||||||||||||||||||||||
Fluid Management |
4,828 | 4,592 | 4,432 | 4,537 | 18,389 | 5,429 | 5,591 | 5,222 | 5,768 | 22,010 | ||||||||||||||||||||||||||||||
Electronic Technologies |
8,286 | 8,217 | 8,268 | 8,432 | 33,203 | 8,370 | 8,540 | 8,480 | 8,608 | 33,998 | ||||||||||||||||||||||||||||||
$ | 27,571 | $ | 26,955 | $ | 27,050 | $ | 28,730 | $ | 110,306 | $ | 29,289 | $ | 28,808 | $ | 28,314 | $ | 30,077 | $ | 116,488 | |||||||||||||||||||||
* | Represents the pre-tax impact on earnings from the depreciation and amortization of acquisition accounting write-ups to reflect the fair value of inventory, property, plant and equipment and intangible assets. |
DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(continued)
(unaudited)
(in thousands)
QUARTERLY SEGMENT INFORMATION
(continued)
(unaudited)
(in thousands)
FREE
CASH FLOW
2009 | 2010 | |||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY 2009 | Q1 | Q2 | Q3 | Q4 | FY 2010 | |||||||||||||||||||||||||||||||
Cash From Operations |
$ | 114,866 | $ | 192,436 | $ | 246,811 | $ | 247,947 | $ | 802,060 | $ | 87,066 | $ | 231,199 | $ | 200,847 | $ | 431,439 | $ | 950,551 | ||||||||||||||||||||
CAPEX |
(31,475 | ) | (26,976 | ) | (24,799 | ) | (36,759 | ) | (120,009 | ) | (39,336 | ) | (46,945 | ) | (43,556 | ) | (53,380 | ) | (183,217 | ) | ||||||||||||||||||||
Free Cash Flow |
$ | 83,391 | $ | 165,460 | $ | 222,012 | $ | 211,188 | $ | 682,051 | $ | 47,730 | $ | 184,254 | $ | 157,291 | $ | 378,059 | $ | 767,334 | ||||||||||||||||||||
Free Cash Flow to
Earnings From
Continuing
Operations |
136.5 | % | 164.0 | % | 206.6 | % | 206.2 | % | 183.4 | % | 39.3 | % | 107.2 | % | 70.6 | % | 197.1 | % | 108.4 | % |
DOVER CORPORATION
QUARTERLY EARNINGS PER SHARE
(unaudited)
QUARTERLY EARNINGS PER SHARE
(unaudited)
2009 | 2010 | |||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY 2009 | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||||||||||||||||||
Basic earnings
(loss) per common
share: |
||||||||||||||||||||||||||||||||||||||||
Continuing
operations |
$ | 0.33 | $ | 0.54 | $ | 0.58 | $ | 0.55 | $ | 2.00 | $ | 0.65 | $ | 0.92 | $ | 1.19 | $ | 1.03 | $ | 3.79 | ||||||||||||||||||||
Discontinued
operations |
(0.04 | ) | (0.02 | ) | | (0.02 | ) | (0.08 | ) | (0.07 | ) | (0.01 | ) | 0.01 | 0.04 | (0.04 | ) | |||||||||||||||||||||||
Net earnings |
0.29 | 0.52 | 0.57 | 0.53 | 1.91 | 0.58 | 0.91 | 1.20 | 1.06 | 3.75 | ||||||||||||||||||||||||||||||
Diluted earnings
(loss) per common
share: |
||||||||||||||||||||||||||||||||||||||||
Continuing
operations |
$ | 0.33 | $ | 0.54 | $ | 0.58 | $ | 0.55 | $ | 1.99 | $ | 0.65 | $ | 0.91 | $ | 1.18 | $ | 1.01 | $ | 3.74 | ||||||||||||||||||||
Discontinued
operations |
(0.04 | ) | (0.02 | ) | | (0.02 | ) | (0.08 | ) | (0.07 | ) | (0.01 | ) | 0.01 | 0.03 | (0.04 | ) | |||||||||||||||||||||||
Net earnings |
0.29 | 0.52 | 0.57 | 0.53 | 1.91 | 0.58 | 0.90 | 1.19 | 1.04 | 3.70 |
NOTE:
Diluted earnings per share in the third and fourth quarters of 2010 and the second quarter of 2009 were
favorably impacted by discrete tax events. The third quarter of 2010 was additionally impacted by the
favorable resolution of a tax position in a foreign jurisdiction. As a result, the Companys effective tax
rates in the third and fourth quarters of 2010 and second quarter of
2009 were 14.8%, 21.4% and 1.1%,
respectively, which were lower than the Companys previously estimated tax rates of 29% for each of the
respective periods. These lower effective tax rates contributed incremental diluted earnings per share of
$0.20 and $0.07 in the third and fourth quarters of 2010, respectively, and $0.15 in the second quarter of
2009.
DOVER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)
(in thousands)
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)
(in thousands)
At December 31, | At December 31, | ||||||||
2010 | 2009 | ||||||||
Assets: |
|||||||||
Cash and cash equivalents |
$ | 1,187,361 | $ | 714,365 | |||||
Short-term investments |
121,734 | 223,809 | |||||||
Receivables, net of allowances |
1,087,704 | 878,754 | |||||||
Inventories, net |
714,110 | 570,858 | |||||||
Deferred tax and other current
assets |
150,962 | 134,921 | |||||||
Property, plant and equipment,
net |
847,189 | 828,922 | |||||||
Goodwill |
3,368,033 | 3,350,217 | |||||||
Intangible assets, net |
907,523 | 950,748 | |||||||
Other assets |
111,145 | 113,108 | |||||||
Assets of discontinued
operations |
67,133 | 116,701 | |||||||
$ | 8,562,894 | $ | 7,882,403 | ||||||
Liabilities and Stockholders
Equity |
|||||||||
Notes payable and current
maturities of long-term debt |
$ | 16,925 | $ | 35,624 | |||||
Payables and accrued expenses |
1,097,969 | 894,558 | |||||||
Taxes payable and other
deferrals |
1,024,910 | 904,475 | |||||||
Long-term debt |
1,790,886 | 1,825,260 | |||||||
Liabilities of discontinued
operations |
105,642 | 138,878 | |||||||
Stockholders equity |
4,526,562 | 4,083,608 | |||||||
$ | 8,562,894 | $ | 7,882,403 | ||||||
DOVER CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
(in thousands)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
(in thousands)
Year Ended December 31, | ||||||||
2010 | 2009 | |||||||
Operating activities: |
||||||||
Net earnings |
$ | 700,104 | $ | 356,438 | ||||
Loss from discontinued operations, net of tax |
7,804 | 15,456 | ||||||
Depreciation and amortization |
268,406 | 258,223 | ||||||
Stock-based compensation |
22,102 | 17,912 | ||||||
Contributions to employee benefit plans |
(58,201 | ) | (78,954 | ) | ||||
Net change in assets and liabilities |
10,336 | 232,985 | ||||||
Net cash provided by operating
activities of continuing
operations |
950,551 | 802,060 | ||||||
Investing activities: |
||||||||
Purchase of short-term investments |
(466,881 | ) | (348,439 | ) | ||||
Proceeds from sale of short-term investments |
553,466 | 406,033 | ||||||
Proceeds from the sale of property and equipment |
17,593 | 22,973 | ||||||
Additions to property, plant and equipment |
(183,217 | ) | (120,009 | ) | ||||
Proceeds from sale of businesses |
4,500 | 3,571 | ||||||
Acquisitions (net of cash acquired) |
(104,418 | ) | (221,994 | ) | ||||
Net cash used in investing activities of continuing operations |
(178,957 | ) | (257,865 | ) | ||||
Financing activities: |
||||||||
Decrease in debt, net |
(60,855 | ) | (226,657 | ) | ||||
Purchase of common stock |
(123,555 | ) | | |||||
Proceeds from exercise of stock options, including tax benefits |
79,721 | 26,578 | ||||||
Dividends to stockholders |
(200,099 | ) | (189,874 | ) | ||||
Net cash used in financing activities of continuing operations |
(304,788 | ) | (389,953 | ) | ||||
Net cash used in discontinued operations |
(3,840 | ) | (6,855 | ) | ||||
Effect of exchange rate changes on cash |
10,030 | 19,569 | ||||||
Net increase in cash and cash equivalents |
472,996 | 166,956 | ||||||
Cash and cash equivalents at beginning of period |
714,365 | 547,409 | ||||||
Cash and cash equivalents at end of period |
$ | 1,187,361 | $ | 714,365 | ||||