Second quarter sales were $876.7 million, up
5.8% compared with 2023
EPS of $0.81 up 15.9% versus 2023 GAAP EPS
and up 8.0% versus 2023 adjusted EPS
Raising fiscal 2024 operating margin and EPS
guidance
On track to deliver record full-year sales
and EPS
Donaldson Company, Inc. (NYSE: DCI) (Donaldson or the Company),
a global leader in technology-led filtration products and
solutions, today reported second quarter fiscal 2024 generally
accepted accounting principles (GAAP) net earnings of $98.7
million, compared with $86.0 million in fiscal 2023. Second quarter
2023 earnings include pre-tax restructuring and other charges of
$9.3 million largely related to the Company’s organizational
redesign. Second quarter 2024 GAAP earnings per share (EPS)1 were
$0.81 compared with 2023 GAAP and adjusted earnings per share of
$0.70 and $0.75, respectively. The tables attached to this press
release include a reconciliation of GAAP to non-GAAP measures.
“Our second quarter results reflect strength in several key
businesses across all three operating segments,” said Tod
Carpenter, chairman, president and chief executive officer.
“Through our diversified business model, we delivered solid sales
growth and gross margin expansion as we worked to meet the needs of
our customers and deliver on our purpose of Advancing Filtration
for a Cleaner World.”
“Given our confidence in executing on our strategic growth
initiatives while investing for future profitable growth for the
remainder of the year, we are increasing our earnings expectations
for fiscal 2024. Looking ahead, our commitment to delivering higher
levels of profitability on higher sales through our balanced growth
strategy will enable us to achieve our fiscal 2026 Investor Day
targets and continue to return value to our shareholders.”
________________________ 1 All EPS figures refer to diluted
EPS.
Second Quarter Operating
Results
Sales of $876.7 million were up 5.8% compared with 2023, driven
by volume growth and pricing benefits.
Three Months Ended
Six Months Ended
January 31, 2024
January 31, 2024
Reported % Change
Constant Currency %
Change
Reported % Change
Constant Currency %
Change
Mobile Solutions segment
Off-Road
(13.4
)%
(14.1
)%
(11.0
)%
(12.5
)%
On-Road
(3.0
)
(2.3
)
1.0
1.2
Aftermarket
11.3
10.7
4.4
3.6
Total Mobile Solutions segment
5.3
4.8
1.2
0.3
Industrial Solutions segment
Industrial Filtration Solutions
6.0
5.4
6.7
5.6
Aerospace and Defense
12.4
11.5
9.2
7.8
Total Industrial Solutions segment
6.9
6.2
7.0
5.9
Life Sciences segment
Total Life Sciences segment
6.0
5.1
0.8
(1.0
)
Total Company
5.8
%
5.3
%
2.8
%
1.8
%
Mobile Solutions segment (Mobile) sales increased 5.3% from
pricing and higher volumes. Aftermarket sales increased 11.3% as a
result of market share gains and elevated vehicle utilization
rates. On-Road sales decreased 3.0% and Off-Road sales decreased
13.4% due to lower global equipment production and weakness in
agriculture markets.
Industrial Solutions segment (Industrial) sales increased 6.9%
driven primarily by volume growth through market share gains and
solid end-market conditions. Aerospace and Defense sales grew 12.4%
from continued strength in Defense sales. Industrial Filtration
Solutions (IFS) sales grew 6.0% as a result of robust dust
collection and Power Generation sales.
Life Sciences segment (Life Sciences) sales increased 6.0% as
Disk Drive sales rebounded from weak prior year market
conditions.
Gross margin was 35.2%, up 90 basis points from 34.3% in 2023
driven by pricing benefits and deflation in freight and select
material costs. Second quarter 2023 adjusted gross margin was
34.5%.
Operating expenses as a percentage of sales were 20.4%, slightly
above 20.3% in the prior year, due to increased hiring and
investments in the scaling of acquired Life Sciences businesses.
Second quarter 2023 adjusted operating expenses as a percentage of
sales, which exclude restructuring and other charges, were
19.3%.
Operating income as a percentage of sales (operating margin) of
14.8% increased 80 basis points year over year from 14.0% in 2023
driven by gross margin improvement. Second quarter operating margin
was down 40 basis points versus adjusted operating margin of 15.2%
in the prior year due to investments in the scaling of acquired
Life Sciences businesses.
Interest expense was $5.6 million versus $4.6 million in the
prior year due to higher interest rates. Other income, net was $4.9
million compared with $1.6 million in 2023 as a result of higher
joint venture income and lower foreign exchange losses versus the
prior year period. The Company’s effective tax rate was 23.5%
versus 24.1% a year ago driven by a favorable shift in the mix of
global earnings and an increase in foreign tax credit benefits.
Year-to-date, Donaldson paid $60.3 million in dividends and
repurchased 1.2% of its outstanding shares for $87.1 million.
Fiscal 2024 Outlook
Full-year EPS is forecast to be between $3.24 and $3.32, up from
prior guidance of between $3.14 and $3.30 and compared with fiscal
2023 GAAP and adjusted EPS of $2.90 and $3.04, respectively. Sales
are expected to increase between 3% and 7% year over year, with a
pricing benefit of approximately 2% and a currency translation
tailwind of roughly 1%.
Mobile sales are forecast to increase between 1% and 5% versus
2023. Continued softening end-market conditions, including in the
agriculture markets and in China, are expected to drive a low
double-digit decrease in Off-Road sales. On-Road sales are
projected to be flat versus prior year. Aftermarket sales are
forecast to grow mid-single digits, benefitting from market share
gains and higher vehicle utilization rates.
Industrial sales are expected to increase between 3% and 7%
compared with prior year. Driven by strength in dust collection and
Power Generation, IFS sales are projected to increase mid-single
digits. Aerospace and Defense sales are expected to grow mid-single
digits from strong demand and end-market conditions.
Life Sciences sales, driven by increases in all businesses
including Food & Beverage, Bioprocessing Equipment and
Consumables, and Disk Drive, are forecast to grow approximately 20%
year over year.
Operating margin is expected to improve to between 15.0% and
15.4%, up from prior guidance of between 14.7% and 15.3% and versus
14.0%, or 14.6% on an adjusted basis, in 2023. Year over year gross
margin improvement is forecast to offset investments in the Life
Sciences segment.
Interest expense is forecast to be approximately $23 million and
other income is expected to be between $10 million and $12 million.
Donaldson projects a fiscal 2024 effective income tax rate of
between 24% and 25%.
Capital expenditures are forecast to be between $95 million and
$110 million and free cash flow conversion is expected to be
between 95% and 105%. For the full year, Donaldson anticipates
repurchasing approximately 2% of its shares outstanding.
Miscellaneous
The Company will webcast its second quarter fiscal 2024 earnings
conference call today at 9:00 a.m. CT. To listen to the webcast,
visit the “Events & Presentations” section of Donaldson’s
Investor Relations website (IR.Donaldson.com), and click on the
“listen to webcast” option. The webcast replay will be available at
approximately 12:00 p.m. CT today. Also available on the website is
the Company’s supplemental quarterly earnings presentation.
Statements in this release regarding future events and
expectations, such as forecasts, plans, trends and projections
relating to the Company’s business and financial performance, are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and are identified by
words or phrases such as “will likely result,” “are expected to,”
“will continue,” “will allow,” “estimate,” “project,” “believe,”
“expect,” “anticipate,” “forecast,” “plan” and similar expressions.
These forward-looking statements speak only as of the date such
statements are made and are subject to risks and uncertainties that
could affect the Company’s performance and could cause the
Company’s actual results for future periods to differ materially
from any opinions or statements expressed. These factors include,
but are not limited to, challenges in global operations; impacts of
global economic, industrial and political conditions on product
demand; impacts from unexpected events, including natural
disasters; effects of unavailable raw materials or material cost
inflation; inability to attract and retain qualified personnel;
inability to meet customer demand; inability to maintain
competitive advantages; threats from disruptive technologies;
effects of highly competitive markets with pricing pressure;
exposure to customer concentration in certain cyclical industries;
inability to manage productivity improvements; inability to achieve
commitments to ESG; results of execution of any acquisition,
divestiture and other strategic transactions; vulnerabilities
associated with information technology systems and security;
inability to protect and enforce intellectual property rights;
costs associated with governmental laws and regulations; impacts of
foreign currency fluctuations; and effects of changes in capital
and credit markets. These and other factors are described in Part
I, Item 1A, “Risk Factors” of the Company’s Annual Report on Form
10-K for the fiscal year ended July 31, 2023. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, unless required by law. The results
presented herein are preliminary, unaudited and subject to revision
until the Company files its results with the United States
Securities and Exchange Commission on Form 10-Q.
About Donaldson Company,
Inc.
Founded in 1915, Donaldson (NYSE: DCI) is a global leader in
technology-led filtration products and solutions, serving a broad
range of industries and advanced markets. Diverse, skilled
employees at over 140 locations on six continents partner with
customers—from small business owners to R&D organizations and
the world’s biggest OEM brands. Donaldson solves complex filtration
challenges through three primary segments: Mobile Solutions,
Industrial Solutions and Life Sciences. Additional information is
available at www.Donaldson.com.
DONALDSON COMPANY, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS
(In millions, except per share
amounts)
(Unaudited)
Three Months Ended
Six Months Ended
January 31,
January 31,
2024
2023
Change
2024
2023
Change
Net sales
$
876.7
$
828.3
5.8
%
$
1,723.0
$
1,675.6
2.8
%
Cost of sales
568.1
543.9
4.4
1,113.5
1,104.0
0.9
Gross profit
308.6
284.4
8.5
609.5
571.6
6.6
Selling, general and administrative
156.8
149.6
4.9
311.8
298.8
4.4
Research and development
22.1
18.5
19.0
43.4
37.2
16.5
Operating expenses
178.9
168.1
6.4
355.2
336.0
5.7
Operating income
129.7
116.3
11.5
254.3
235.6
8.0
Interest expense
5.6
4.6
20.3
11.1
9.2
20.5
Other income, net
(4.9
)
(1.6
)
NM(1)
(8.7
)
(3.4
)
NM(1)
Earnings before income taxes
129.0
113.3
13.9
251.9
229.8
9.6
Income taxes
30.3
27.3
11.0
61.1
56.6
7.7
Net earnings
$
98.7
$
86.0
14.8
%
$
190.8
$
173.2
10.2
%
Weighted average shares – basic
120.5
121.7
(0.9
)%
120.7
122.2
(1.2
)%
Weighted average shares – diluted
122.1
123.3
(1.0
)%
122.4
123.7
(1.1
)%
Net EPS – basic
$
0.82
$
0.71
15.9
%
$
1.58
$
1.42
11.5
%
Net EPS – diluted
$
0.81
$
0.70
15.9
%
$
1.56
$
1.40
11.4
%
Dividends paid per share
$
0.25
$
0.23
8.7
%
$
0.50
$
0.46
8.7
%
Note: Amounts may not foot due to
rounding.
(1) NM = not meaningful
DONALDSON COMPANY, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In millions)
(Unaudited)
January 31,
July 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
193.8
$
187.1
Accounts receivable, net
599.3
599.7
Inventories, net
433.4
418.1
Prepaid expenses and other current
assets
90.7
81.1
Total current assets
1,317.2
1,286.0
Property, plant and equipment, net
647.0
652.9
Goodwill
475.9
481.1
Intangible assets, net
179.4
188.1
Other long-term assets
164.0
162.4
Total assets
$
2,783.5
$
2,770.5
Liabilities and Stockholders’
Equity
Current liabilities:
Short-term borrowings
$
50.4
$
34.1
Current maturities of long-term debt
211.7
125.0
Accounts payable
325.8
304.9
Accrued employee compensation and related
taxes
110.3
119.4
Deferred revenue
29.7
25.3
Income taxes payable
37.1
32.3
Dividends payable
30.1
30.4
Other current liabilities
98.4
85.0
Total current liabilities
893.5
756.4
Long-term debt
352.0
496.6
Non-current income taxes payable
40.1
56.5
Deferred income taxes
21.9
32.3
Other long-term liabilities
100.2
108.0
Total liabilities
1,407.7
1,449.8
Total stockholders’ equity
1,375.8
1,320.7
Total liabilities and stockholders’
equity
$
2,783.5
$
2,770.5
DONALDSON COMPANY, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Six Months Ended
January 31,
2024
2023
Operating Activities
Net earnings
$
190.8
$
173.2
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization
48.9
44.8
Deferred income taxes
(10.3
)
(7.1
)
Stock-based compensation expense
14.5
13.7
Other, net
1.4
2.9
Changes in operating assets and
liabilities
(20.3
)
(7.0
)
Net cash provided by operating
activities
225.0
220.5
Investing Activities
Purchases of property, plant and
equipment
(44.5
)
(57.6
)
Net cash used in investing activities
(44.5
)
(57.6
)
Financing Activities
Proceeds from long-term debt
35.0
40.0
Repayments of long-term debt
(88.7
)
(65.0
)
Change in short-term borrowings
16.3
0.3
Purchase of treasury stock
(86.6
)
(115.2
)
Dividends paid
(60.3
)
(56.2
)
Exercise of stock options and other
12.6
19.3
Net cash used in financing activities
(171.7
)
(176.8
)
Effect of exchange rate changes on
cash
(2.1
)
—
Increase (decrease) in cash and cash
equivalents
6.7
(13.9
)
Cash and cash equivalents, beginning of
period
187.1
193.3
Cash and cash equivalents, end of
period
$
193.8
$
179.4
CONSOLIDATED RATE
ANALYSIS
(Unaudited)
Three Months Ended
Six Months Ended
January 31,
January 31,
2024
2023
2024
2023
Gross margin
35.2
%
34.3
%
35.4
%
34.1
%
Operating expenses
20.4
%
20.3
%
20.6
%
20.1
%
Operating margin
14.8
%
14.0
%
14.8
%
14.1
%
Other income, net
(0.5
)%
(0.2
)%
(0.5
)%
(0.2
)%
Depreciation and amortization
2.8
%
2.7
%
2.8
%
2.7
%
EBITDA
18.2
%
16.9
%
18.1
%
16.9
%
Effective tax rate
23.5
%
24.1
%
24.2
%
24.7
%
Earnings before income taxes - Mobile
Solutions
18.0
%
15.0
%
17.6
%
14.7
%
Earnings before income taxes - Industrial
Solutions
18.0
%
18.8
%
17.8
%
17.6
%
Earnings before income taxes - Life
Sciences
(9.2
)%
10.6
%
(8.1
)%
14.0
%
Cash conversion ratio
66.7
%
84.7
%
94.6
%
94.1
%
Three Months Ended
Six Months Ended
January 31,
January 31,
2024
2023
2024
2023
Adjusted Rates
Gross margin
35.2
%
34.5
%
35.4
%
34.2
%
Operating expenses
20.4
%
19.3
%
20.6
%
19.1
%
Operating margin
14.8
%
15.2
%
14.8
%
15.1
%
Other income, net
(0.5
)%
(0.2
)%
(0.5
)%
(0.2
)%
Depreciation and amortization
2.8
%
2.7
%
2.8
%
2.7
%
EBITDA
18.2
%
18.1
%
18.1
%
17.9
%
Effective tax rate
23.5
%
24.1
%
24.2
%
24.7
%
Earnings before income taxes - Mobile
Solutions
18.0
%
15.0
%
17.6
%
14.7
%
Earnings before income taxes - Industrial
Solutions
18.0
%
18.8
%
17.8
%
17.6
%
Earnings before income taxes - Life
Sciences
(9.2
)%
10.6
%
(8.1
)%
14.0
%
Cash conversion ratio
66.7
%
78.3
%
94.6
%
87.6
%
Note: Rate analysis metrics are computed
by dividing the applicable amount by net sales, and cash conversion
ratio reflects free cash flow divided by net earnings. Adjusted
rates exclude the impact of certain items not related to ongoing
operations. Adjusted rates are non-GAAP measures; see the
Reconciliation of Non-GAAP Financial Measures schedule for
additional information.
SEGMENT DETAIL
(In millions)
(Unaudited)
Three Months Ended January
31,
Six Months Ended January
31,
2024
2023
Change
2024
2023
Change
Net sales
Mobile Solutions segment
Off-Road
$
91.9
$
106.2
(13.4
)%
$
186.6
$
209.8
(11.0
)%
On-Road
33.5
34.5
(3.0
)
71.3
70.5
1.0
Aftermarket
424.9
381.8
11.3
832.4
797.1
4.4
Total Mobile Solutions segment
550.3
522.5
5.3
1,090.3
1,077.4
1.2
Industrial Solutions segment
Industrial Filtration Solutions
224.5
211.8
6.0
435.1
407.8
6.7
Aerospace and Defense
38.9
34.6
12.4
74.5
68.2
9.2
Total Industrial Solutions segment
263.4
246.4
6.9
509.6
476.0
7.0
Life Sciences segment
Total Life Sciences segment
63.0
59.4
6.0
123.1
122.2
0.8
Total Company
$
876.7
$
828.3
5.8
%
$
1,723.0
$
1,675.6
2.8
%
Earnings (loss) before income
taxes
Mobile Solutions segment
$
99.2
$
78.6
26.2
%
$
191.4
$
158.9
20.5
%
Industrial Solutions segment
47.4
46.3
2.4
90.7
83.9
8.1
Life Sciences segment
(5.8
)
6.3
NM(1)
(10.0
)
17.1
NM(1)
Corporate and unallocated
(11.8
)
(17.9
)
34.1
(20.2
)
(30.1
)
32.9
Total Company
$
129.0
$
113.3
13.9
%
$
251.9
$
229.8
9.6
%
Earnings before income taxes
percentage
Mobile Solutions segment
18.0
%
15.0
%
3.0
%
17.6
%
14.7
%
2.9
%
Industrial Solutions segment
18.0
%
18.8
%
(0.8
)%
17.8
%
17.6
%
0.2
%
Life Sciences segment
(9.2
)%
10.6
%
(19.8
)%
(8.1
)%
14.0
%
(22.1
)%
Note: Earnings before income taxes
percentage is calculated by dividing earnings before income taxes
by net sales. Amounts may not foot due to rounding.
(1) NM = not meaningful
SEGMENT SALES PERCENT CHANGE
FROM PRIOR PERIODS BY GEOGRAPHY, AS REPORTED
(Unaudited)
Three Months Ended January 31,
2024
TOTAL
U.S.(1)/CA(2)
EMEA(3)
APAC(4)
LATAM(5)
Mobile Solutions segment
Off-Road
(13.4
)%
(6.5
)%
(13.9
)%
(23.9
)%
(16.3
)%
On-Road
(3.0
)
—
22.0
(18.9
)
—
Aftermarket
11.3
12.3
3.3
14.8
16.7
Total Mobile Solutions segment
5.3
7.9
(1.5
)
2.5
14.3
Industrial Solutions segment
Industrial Filtration Solutions
6.0
15.7
(4.0
)
6.3
(10.1
)
Aerospace and Defense
12.4
12.6
7.7
142.6
N/A
Total Industrial Solutions segment
6.9
15.1
(2.8
)
7.7
(10.1
)
Life Sciences segment
Total Life Sciences segment
6.0
(37.6
)
16.7
19.5
11.1
Total Company
5.8
%
8.8
%
(0.2
)%
6.1
%
11.2
%
Six Months Ended January 31,
2024
TOTAL
U.S./CA
EMEA
APAC
LATAM
Mobile Solutions segment
Off-Road
(11.0
)%
(5.7
)%
(8.1
)%
(23.8
)%
(22.4
)%
On-Road
1.0
1.3
17.5
(4.7
)
(10.6
)
Aftermarket
4.4
4.9
0.3
8.7
5.1
Total Mobile Solutions segment
1.2
2.8
(1.7
)
—
3.2
Industrial Solutions segment
Industrial Filtration Solutions
6.7
13.0
2.8
(3.6
)
0.3
Aerospace and Defense
9.2
8.7
8.0
61.9
N/A
Total Industrial Solutions segment
7.0
12.1
3.4
(2.6
)
0.3
Life Sciences segment
Total Life Sciences segment
0.8
(23.2
)
14.8
(1.0
)
16.1
Total Company
2.8
%
5.1
%
1.5
%
(0.7
)%
3.0
%
Note: Amounts may not foot due to
rounding.
(1) United States (U.S.)
(2) Canada (CA)
(3) Europe, Middle East and Africa
(EMEA)
(4) Asia Pacific (APAC)
(5) Latin America (LATAM)
SEGMENT SALES PERCENT CHANGE
FROM PRIOR PERIODS BY GEOGRAPHY, CONSTANT CURRENCY
(Unaudited)
Three Months Ended January 31,
2024
TOTAL
U.S./CA
EMEA
APAC
LATAM
Mobile Solutions segment
Off-Road
(14.1
)%
(6.5
)%
(16.9
)%
(20.7
)%
(18.1
)%
On-Road
(2.3
)
—
19.4
(15.2
)
(3.4
)
Aftermarket
10.7
12.3
0.8
17.8
14.3
Total Mobile Solutions segment
4.8
7.9
(4.2
)
5.5
12.0
Industrial Solutions segment
Industrial Filtration Solutions
5.4
15.7
(6.5
)
9.1
(11.3
)
Aerospace and Defense
11.5
12.6
4.2
150.5
N/A
Total Industrial Solutions segment
6.2
15.1
(5.3
)
10.6
(11.3
)
Life Sciences segment
Total Life Sciences segment
5.1
(37.6
)
12.2
22.1
8.9
Total Company
5.3
%
8.8
%
(3.0
)%
9.1
%
9.0
%
Six Months Ended January 31,
2024
TOTAL
U.S./CA
EMEA
APAC
LATAM
Mobile Solutions segment
Off-Road
(12.5
)%
(5.7
)%
(13.1
)%
(21.1
)%
(24.3
)%
On-Road
1.2
1.3
12.5
(1.3
)
(13.4
)
Aftermarket
3.6
4.9
(3.7
)
11.6
3.3
Total Mobile Solutions segment
0.3
2.8
(6.0
)
2.9
1.3
Industrial Solutions segment
Industrial Filtration Solutions
5.6
13.0
(1.3
)
(1.0
)
(0.9
)
Aerospace and Defense
7.8
8.7
2.5
65.7
N/A
Total Industrial Solutions segment
5.9
12.1
(0.9
)
(0.1
)
(0.9
)
Life Sciences segment
Total Life Sciences segment
(1.0
)
(23.2
)
8.5
0.5
14.2
Total Company
1.8
%
5.1
%
(3.0
)%
1.9
%
1.2
%
Note: The constant currency presentation,
which is a non-GAAP measure, excludes the impact of fluctuations in
foreign currency exchange rates. The Company believes providing
constant currency information provides valuable supplemental
information regarding its results of operations. The Company
calculates constant currency percentages by converting its current
period local currency financial results using the prior period
exchange rates and compares these adjusted amounts to its prior
period reported results. Amounts may not foot due to rounding.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
(In millions)
(Unaudited)
Three Months Ended
Six Months Ended
January 31,
January 31,
2024
2023
2024
2023
Net cash provided by operating
activities
$
87.0
$
102.3
$
225.0
$
220.5
Net capital expenditures
(21.2
)
(29.5
)
(44.5
)
(57.6
)
Free cash flow
$
65.8
$
72.8
$
180.5
$
162.9
Net earnings
$
98.7
$
86.0
$
190.8
$
173.2
Income taxes
30.3
27.3
61.1
56.6
Interest expense
5.6
4.6
11.1
9.2
Depreciation and amortization
24.6
22.4
48.9
44.8
EBITDA
$
159.2
$
140.3
$
311.9
$
283.8
Adjusted net earnings
$
98.7
$
93.0
$
190.8
$
185.9
Adjusted income taxes
30.3
29.6
61.1
60.9
Interest expense
5.6
4.6
11.1
9.2
Depreciation and amortization
24.6
22.4
48.9
44.8
Adjusted EBITDA
$
159.2
$
149.6
$
311.9
$
300.8
Gross profit
$
308.6
$
284.4
$
609.5
$
571.6
Restructuring and other charges
—
1.5
—
1.5
Adjusted gross profit
$
308.6
$
285.9
$
609.5
$
573.1
Operating expense
$
178.9
$
168.1
$
355.2
$
336.0
Restructuring and other charges
—
(7.8
)
—
(15.4
)
Adjusted operating expense
$
178.9
$
160.2
$
355.2
$
320.5
Operating income
$
129.7
$
116.3
$
254.3
$
235.6
Restructuring and other charges
—
9.3
—
16.9
Adjusted operating income
$
129.7
$
125.7
$
254.3
$
252.6
Net earnings
$
98.7
$
86.0
$
190.8
$
173.2
Restructuring and other charges, net of
tax
—
7.0
—
12.7
Adjusted net earnings
$
98.7
$
93.0
$
190.8
$
185.9
Diluted EPS
$
0.81
$
0.70
$
1.56
$
1.40
Restructuring and other charges per
share
—
0.06
—
0.10
Adjusted diluted EPS
$
0.81
$
0.75
$
1.56
$
1.50
Note: Although free cash flow, EBITDA,
adjusted EBITDA, adjusted gross profit, adjusted operating expense,
adjusted operating income, adjusted net earnings and adjusted
diluted EPS are not measures of financial performance under GAAP,
the Company believes they are useful in understanding its financial
results. Free cash flow is a commonly used measure of a company’s
ability to generate cash in excess of its operating needs. EBITDA
is a commonly used measure of operating earnings less non-cash
expenses. The adjusted basis presentation excludes the impact of
certain matters not related to the Company’s ongoing operations.
Management believes that the adjusted basis presentation reflects
management’s performance in operating the Company and provides a
meaningful representation of the performance of the Company’s core
business and is useful to understanding its financial results. A
shortcoming of these financial measures is that they do not reflect
the Company’s actual results under GAAP. Management does not intend
these items to be considered in isolation or as a substitute for
the related GAAP measures. Amounts may not foot due to
rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240228087992/en/
Sarika Dhadwal (952) 887-3753 Sarika.Dhadwal@Donaldson.com
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