PR Newswire | Apr 20, 2021 06:31AM EDT

04/20 05:30 CDT

Dover Reports First Quarter 2021 Results; Raises 2021 Annual Guidance DOWNERS GROVE, Ill., April 20, 2021

DOWNERS GROVE, Ill., April 20, 2021 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the first quarter ended March 31, 2021.

Three Months Ended March 31,

($ in millions, except per share data) 2021 2020 % Change

U.S. GAAP

Revenue $1,868 $1,656 13 %

Net earnings^ 1 233 176 32 %

Diluted EPS 1.61 1.21 33 %



Non-GAAP

Organic revenue change 9 %

Adjusted net earnings ^2 263 203 29 %

Adjusted diluted EPS 1.81 1.39 30 %

^1 Q1 2021 and 2020 net earnings include rightsizing and other costs of $3.1million and $6.3 million, respectively. Q1 2020 also includes a $5.0 millionnon-cash after-tax gain on the sale of Chino.

^2 Q1 2021 and 2020 adjusted net earnings exclude after tax acquisition-relatedamortization costs of $26.8 million and $25.7 million, respectively, andrightsizing and other costs of $3.1 million and $6.3 million, respectively. Q12020 also excludes a $5.0 million non-cash after-tax gain on the sale of Chino.

For the quarter ended March 31, 2021, Dover generated revenue of $1.9 billion, an increase of 13% (+9% organic) compared to the first quarter of the prior year. GAAP net earnings of $233 million increased 32%, and GAAP diluted EPS of $1.61 was up 33%. On an adjusted basis, net earnings of $263 million increased 29% and adjusted diluted EPS of $1.81 was up 30% versus the comparable quarter of the prior year.

A full reconciliation between GAAP and adjusted measures and definitions of non-GAAP and other performance measures are included as an exhibit herein.

MANAGEMENT COMMENTARY:

Dover's President and Chief Executive Officer, Richard J. Tobin, said, "Overall, we are off to an encouraging start with first quarter results that exceeded our forecasts. Our businesses capitalized on the improving demand conditions in their markets and delivered strong volume growth despite some notable supply chain disruptions during the quarter. Comparable operating margins increased in the quarter on volume leverage, favorable product mix, and continued progress on our center-led efficiency initiatives.

"Order trends were strong and improved throughout the quarter across the majority of our businesses. We saw particularly healthy new order activity in biopharma connectors and pumps, plastics & polymer processing, food retail, industrial pumps, refuse collection, and automotive-exposed markets. Several markets that are still recovering, such as foodservice equipment, digital printing and industrial winches have also been posting encouraging trends. As a result of strong orders, our backlog at the end of the first quarter was substantially higher than the backlog we carried into the quarter.

"As we look forward, our strong end market demand, bookings rates, and robust backlog give us confidence that market demand for our products will remain durable as we progress through the year. There are challenges to navigate going forward such as material cost inflation, supply chain bottlenecks, and labor availability, but our first quarter performance gives us grounds for optimism that we are up to the challenge. Furthermore, our balance sheet remains healthy and we have substantial capacity for inorganic capital deployment to continue enhancing our portfolio.

"On the back of a strong first quarter and the current trading environment, we are raising our full year revenue and EPS guidance."

FULL YEAR 2021 GUIDANCE UPDATE:

Guidance for full year 2021 revenue growth was raised to 10% to 12%. EPS guidance for full year 2021 was raised to $5.92 to $6.02 ($6.75 to $6.85 on an adjusted basis).

CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its first quarter 2021 results and updated 2021 guidance at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Tuesday, April 20, 2021. The webcast can be accessed on the Dover website at dovercorporation.com. The conference call will also be made available for replay on the website. Additional information on Dover's first quarter results and its operating segments can be found on the Company's website.

ABOUT DOVER:

Dover is a diversified global manufacturer and solutions provider with annual revenue of approximately $7 billion. We deliver innovative equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services through five operating segments: Engineered Products, Fueling Solutions, Imaging & Identification, Pumps & Process Solutions and Refrigeration & Food Equipment. Dover combines global scale with operational agility to lead the markets we serve. Recognized for our entrepreneurial approach for over 60 years, our team of approximately 24,000 employees takes an ownership mindset, collaborating with customers to redefine what's possible. Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under "DOV." Additional information is available at dovercorporation.com.

FORWARD-LOOKING STATEMENTS:

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements in this document other than statements of historical fact are statements that are, or could be deemed, "forward-looking" statements. Forward-looking statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control. Factors that could cause actual results to differ materially from current expectations include, among other things, the impacts of COVID-19, or other future pandemics, on the global economy and on our customers, suppliers, employees, business and cash flows, other general economic conditions and conditions in the particular markets in which we operate, changes in customer demand and capital spending, competitive factors and pricing pressures, our ability to develop and launch new products in a cost-effective manner, our ability to realize synergies from newly acquired businesses, and our ability to derive expected benefits from restructuring, productivity initiatives and other cost reduction actions. For details on the risks and uncertainties that could cause our results to differ materially from the forward-looking statements contained herein, we refer you to the documents we file with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2020, and our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These documents are available from the Securities and Exchange Commission, and on our website, dovercorporation.com. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

INVESTOR SUPPLEMENT - FIRST QUARTER 2021



DOVER CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

(unaudited)(in thousands, except per share data)





Three Months Ended March 31,

2021 2020

Revenue $1,867,901 $1,655,939

Cost of goods and services 1,146,353 1,043,696

Gross profit 721,548 612,243

Selling, general, and administrative expenses408,998 386,941

Operating earnings 312,550 225,302

Interest expense 26,823 27,268

Interest income (680) (1,183)

Gain on sale of a business - (6,551)

Other income, net (2,843) (7,732)

Earnings before provision for income taxes 289,250 213,500

Provision for income taxes 56,481 37,221

Net earnings $232,769 $176,279



Net earnings per share:

Basic $1.62 $1.22

Diluted $1.61 $1.21

Weighted average shares outstanding:

Basic 143,765 144,259

Diluted 144,938 145,782



Dividends paid per common share $0.495 $0.49



* Per share data may be impacted by rounding.

DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)



2021 2020

Q1 Q1 Q2 Q3 Q4 FY 2020

REVENUE

Engineered Products $428,127 $408,160 $342,380 $386,562 $394,175 $1,531,277

Fueling Solutions 389,678 359,982 326,495 380,511 409,294 1,476,282

Imaging & Identification 284,328 256,765 227,977 265,690 287,746 1,038,178

Pumps & Process Solutions 394,377 319,536 309,095 347,875 347,497 1,324,003

Refrigeration & Food Equipment 372,077 311,913 293,527 368,395 342,255 1,316,090

Intra-segment eliminations (686) (417) (299) (777) (577) (2,070)

Total consolidated revenue $1,867,901$1,655,939$1,499,175$1,748,256$1,780,390$6,683,760



NET EARNINGS

Segment Earnings:

Engineered Products $68,779 $69,094 $47,702 $64,890 $56,481 $238,167

Fueling Solutions 66,480 53,498 47,214 66,601 69,661 236,974

Imaging & Identification 56,992 51,482 38,046 51,928 52,017 193,473

Pumps & Process Solutions 123,645 66,079 67,702 89,786 81,709 305,276

Refrigeration & Food Equipment ^1 38,117 23,529 11,459 40,159 27,725 102,872

Total segment earnings (EBIT) 354,013 263,682 212,123 313,364 287,593 1,076,762

Corporate expense / other 38,620 24,097 27,311 35,603 39,651 126,662

Interest expense 26,823 27,268 28,711 27,724 28,234 111,937

Interest income (680) (1,183) (728) (960) (700) (3,571)

Earnings before provision for income taxes 289,250 213,500 156,829 250,997 220,408 841,734

Provision for income taxes 56,481 37,221 32,063 50,697 38,302 158,283

Net earnings $232,769 $176,279 $124,766 $200,300 $182,106 $683,451



SEGMENT MARGIN

Engineered Products 16.1 % 16.9 % 13.9 % 16.8 % 14.3 % 15.6 %

Fueling Solutions 17.1 % 14.9 % 14.5 % 17.5 % 17.0 % 16.1 %

Imaging & Identification 20.0 % 20.1 % 16.7 % 19.5 % 18.1 % 18.6 %

Pumps & Process Solutions 31.4 % 20.7 % 21.9 % 25.8 % 23.5 % 23.1 %

Refrigeration & Food Equipment ^1 10.2 % 7.5 % 3.9 % 10.9 % 8.1 % 7.8 %

Total segment operating margin 19.0 % 15.9 % 14.1 % 17.9 % 16.2 % 16.1 %



DEPRECIATION AND AMORTIZATION EXPENSE

Engineered Products $14,047 $10,122 $9,722 $10,717 $12,042 $42,603

Fueling Solutions 19,269 18,339 17,968 18,014 18,482 72,803

Imaging & Identification 9,593 8,769 9,224 9,809 10,576 38,378

Pumps & Process Solutions 16,926 18,336 17,572 17,206 19,077 72,191

Refrigeration & Food Equipment 12,096 11,548 11,421 12,081 11,491 46,541

Corporate 1,875 1,638 1,696 1,662 1,539 6,535

Total depreciation and amortization expense$73,806 $68,752 $67,603 $69,489 $73,207 $279,051



^1 Q1, Q2, Q3, and FY 2020 include a $6,551 gain, a $781 expense, a $557 expense and a $5,213 net gain, respectively, on the sale of the Chino, California branch of The AMS Group ("AMS Chino"). Q2 and FY 2020 also include a $3,640 write-off of assets.

DOVER CORPORATION

QUARTERLY EARNINGS PER SHARE

(unaudited)(in thousands, except per share data*)



Earnings Per Share

2021 2020

Q1 Q1 Q2 Q3 Q4 FY 2020

Net earnings per share:

Basic $1.62 $1.22 $0.87 $1.39 $1.27 $4.74

Diluted $1.61 $1.21 $0.86 $1.38 $1.25 $4.70



Net earnings and weighted average shares used in calculated earnings per share amounts are as follows:

Net earnings $232,769$176,279$124,766$200,300$182,106$683,451



Weighted average shares outstanding:

Basic 143,765 144,259 143,955 144,032 143,954 144,050

Diluted 144,938 145,782 144,995 145,289 145,355 145,393



* Per share data may be impacted by rounding.

DOVER CORPORATION

QUARTERLY ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE (NON-GAAP)

(unaudited)(in thousands, except per share data*)



Non-GAAP Reconciliations



2021 2020

Q1 Q1 Q2 Q3 Q4 FY 2020

Adjusted net earnings:

Net earnings $232,769$176,279$124,766$200,300$182,106$683,451

Acquisition-related amortization, pre-tax ^1 35,516 34,062 34,101 35,325 35,027 138,515

Acquisition-related amortization, tax impact ^2(8,720) (8,411) (8,451) (8,810) (8,695) (34,367)

Rightsizing and other costs, pre-tax ^3 4,162 7,859 16,840 5,848 20,925 51,472

Rightsizing and other costs, tax impact ^2 (1,031) (1,605) (3,452) (1,343) (4,402) (10,802)

(Gain) loss on disposition, pre-tax ^4 - (6,551) 781 557 - (5,213)

(Gain) loss on disposition, tax-impact ^2 - 1,592 (190) (135) - 1,267

Adjusted net earnings $262,696$203,225$164,395$231,742$224,961$824,323



Adjusted diluted net earnings per share:

Diluted net earnings per share $1.61 $1.21 $0.86 $1.38 $1.25 $4.70

Acquisition-related amortization, pre-tax ^1 0.25 0.23 0.24 0.24 0.24 0.95

Acquisition-related amortization, tax impact ^2(0.06) (0.06) (0.06) (0.06) (0.06) (0.24)

Rightsizing and other costs, pre-tax ^3 0.03 0.05 0.12 0.04 0.14 0.35

Rightsizing and other costs, tax impact ^2 (0.01) (0.01) (0.02) (0.01) (0.03) (0.07)

(Gain) loss on disposition, pre-tax ^4 - (0.04) - - - (0.03)

(Gain) loss on disposition, tax-impact ^2 - 0.01 - - - 0.01

Adjusted diluted net earnings per share $1.81 $1.39 $1.13 $1.60 $1.55 $5.67



^1 Includes amortization on acquisition-related intangible assets and inventorystep-up.

^2 Adjustments were tax effected using the statutory tax rates in the applicable jurisdictions or the effective tax rate, where applicable, for each period.

^3 Rightsizing and other costs include actions taken on employee reductions, facility consolidations and site closures, product line exits and other asset charges.

^4 Represents a (gain) loss on the disposition of AMS Chino within the Refrigeration & Food Equipment segment, including working capital adjustments.



* Per share data and totals may be impacted by rounding.

DOVER CORPORATION

QUARTERLY SEGMENT ADJUSTED EBIT AND ADJUSTED EBITDA (NON-GAAP)

(unaudited)(in thousands)



Non-GAAP Reconciliations



2021 2020

Q1 Q1 Q2 Q3 Q4 FY 2020

ADJUSTED SEGMENT EBIT AND ADJUSTED EBITDA

Engineered Products:

Segment earnings (EBIT) $68,779 $69,094 $47,702 $64,890 $56,481 $238,167

Rightsizing and other costs 4,019 361 4,169 2,375 4,625 11,530

Adjusted EBIT - Segment 72,798 69,455 51,871 67,265 61,106 249,697

Adjusted EBIT % 17.0 % 17.0 % 15.2 % 17.4 % 15.5 % 16.3 %

Adjusted D&A ^1 10,594 10,122 9,722 10,651 10,193 40,688

Adjusted EBITDA - Segment $83,392 $79,577 $61,593 $77,916 $71,299 $290,385

Adjusted EBITDA % 19.5 % 19.5 % 18.0 % 20.2 % 18.1 % 19.0 %

Fueling Solutions:

Segment earnings (EBIT) $66,480 $53,498 $47,214 $66,601 $69,661 $236,974

Rightsizing and other costs 58 1,493 868 1,615 2,727 6,703

Adjusted EBIT - Segment 66,538 54,991 48,082 68,216 72,388 243,677

Adjusted EBIT % 17.1 % 15.3 % 14.7 % 17.9 % 17.7 % 16.5 %

Adjusted D&A ^1 19,180 18,339 17,783 18,014 18,225 72,361

Adjusted EBITDA - Segment $85,718 $73,330 $65,865 $86,230 $90,613 $316,038

Adjusted EBITDA % 22.0 % 20.4 % 20.2 % 22.7 % 22.1 % 21.4 %

Imaging & Identification:

Segment earnings (EBIT) $56,992 $51,482 $38,046 $51,928 $52,017 $193,473

Rightsizing and other costs 682 264 (527) 99 6,191 6,027

Adjusted EBIT - Segment 57,674 51,746 37,519 52,027 58,208 199,500

Adjusted EBIT % 20.3 % 20.2 % 16.5 % 19.6 % 20.2 % 19.2 %

Adjusted D&A ^1 9,218 8,769 9,224 9,809 10,201 38,003

Adjusted EBITDA - Segment $66,892 $60,515 $46,743 $61,836 $68,409 $237,503

Adjusted EBITDA % 23.5 % 23.6 % 20.5 % 23.3 % 23.8 % 22.9 %

Pumps & Process Solutions:

Segment earnings (EBIT) $123,645$66,079 $67,702 $89,786 $81,709 $305,276

Rightsizing and other (benefits) costs (2,006) 3,846 4,691 1,771 3,128 13,436

Adjusted EBIT - Segment 121,639 69,925 72,393 91,557 84,837 318,712

Adjusted EBIT % 30.8 % 21.9 % 23.4 % 26.3 % 24.4 % 24.1 %

Adjusted D&A ^1 16,926 16,230 16,816 17,206 17,565 67,817

Adjusted EBITDA - Segment $138,565$86,155 $89,209 $108,763$102,402$386,529

Adjusted EBITDA % 35.1 % 27.0 % 28.9 % 31.3 % 29.5 % 29.2 %

Refrigeration & Food Equipment:

Segment earnings (EBIT) $38,117 $23,529 $11,459 $40,159 $27,725 $102,872

Rightsizing and other (benefits) costs (38) 704 6,016 (971) 726 6,475

(Gain) loss on disposition ^2 - (6,551) 781 557 - (5,213)

Adjusted EBIT - Segment 38,079 17,682 18,256 39,745 28,451 104,134

Adjusted EBIT % 10.2 % 5.7 % 6.2 % 10.8 % 8.3 % 7.9 %

Adjusted D&A ^1 11,745 11,548 11,421 12,081 11,491 46,541

Adjusted EBITDA - Segment $49,824 $29,230 $29,677 $51,826 $39,942 $150,675

Adjusted EBITDA % 13.4 % 9.4 % 10.1 % 14.1 % 11.7 % 11.4 %

Total Segments:

Segment earnings (EBIT) ^3 $354,013$263,682$212,123$313,364$287,593$1,076,762

Rightsizing and other costs 2,715 6,668 15,217 4,889 17,397 44,171

(Gain) loss on disposition ^2 - (6,551) 781 557 - (5,213)

Adjusted EBIT - Segment ^4 356,728 263,799 228,121 318,810 304,990 1,115,720

Adjusted EBIT % ^4 19.1 % 15.9 % 15.2 % 18.2 % 17.1 % 16.7 %

Adjusted D&A ^1 67,663 65,008 64,966 67,761 67,675 265,410

Adjusted EBITDA - Segment ^4 $424,391$328,807$293,087$386,571$372,665$1,381,130

Adjusted EBITDA % ^4 22.7 % 19.9 % 19.5 % 22.1 % 20.9 % 20.7 %



^1 Adjusted D&A is depreciation and amortization expense, excluding depreciation and amortization included within rightsizing and other costs.

^2 Q1, Q2, Q3, and FY 2020 includes a $6,551 gain, a $781 expense, a $557 expense and a $5,213 net gain on the sale of a business for AMS Chino, respectively.

^3 Refer to Quarterly Segment Information section for reconciliation of total segment earnings (EBIT) to net earnings.

^4 Refer to Non-GAAP Disclosures section for definition.

DOVER CORPORATION

REVENUE GROWTH FACTORS (NON-GAAP)

(unaudited)(in thousands, except per share data*)



Non-GAAP Reconciliations



Revenue Growth Factors



2021

Q1

Organic

Engineered Products 2.3 %

Fueling Solutions 3.0 %

Imaging & Identification 3.7 %

Pumps & Process Solutions 18.4 %

Refrigeration & Food Equipment 18.3 %

Total Organic 8.8 %

Acquisitions 1.2 %

Dispositions (0.3) %

Currency translation 3.1 %

Total* 12.8 %



* Totals may be impacted by rounding.





2021

Q1

Organic

United States 6.9 %

Other Americas 3.0 %

Europe 12.7 %

Asia 19.8 %

Other (4.7) %

Total Organic 8.8 %

Acquisitions 1.2 %

Dispositions (0.3) %

Currency translation 3.1 %

Total* 12.8 %



* Totals may be impacted by rounding.

Adjusted EPS Guidance Reconciliation

Range

2021 Guidance for Earnings per Share (GAAP) $5.92 $6.02

Acquisition-related amortization, net 0.73

Rightsizing and other costs, net 0.10

2021 Guidance for Adjusted Earnings per Share (Non-GAAP)$6.75 $6.85

DOVER CORPORATION

QUARTERLY CASH FLOW AND FREE CASH FLOW (NON-GAAP)

(unaudited)(in thousands)



Quarterly Cash Flow



2021 2020

Q1 Q1 Q2 Q3 Q4 FY 2020

Net Cash Flows Provided By (Used In):

Operating activities $177,184$ 75,863$271,809$339,247$417,891$1,104,810

Investing activities (29,572) (230,511)(67,763) (64,724) (118,381)(481,379)

Financing activities (124,239)280,954 (67,458) (496,832)(222,954)(506,290)





Quarterly Free Cash Flow (Non-GAAP)



2021 2020

Q1 Q1 Q2 Q3 Q4 FY 2020

Cash flow from operating activities^1 $177,184$ 75,863$271,809$339,247$417,891$1,104,810

Less: Capital expenditures (31,260) (40,172) (38,999) (44,393) (42,128) (165,692)

Free cash flow $145,924$ 35,691$232,810$294,854$375,763$939,118



Free cash flow as a percentage of revenue 7.8 % 2.2 % 15.5 % 16.9 % 21.1 % 14.1 %



Free cash flow as a percentage of net earnings62.7 % 20.2 % 186.6 % 147.2 % 206.3 % 137.4 %



^1 FY 2020 cash flow from operating activities reflects benefits from permitteddeferrals of tax payments, most significantly in Q2, Q3, and Q4 and advancedpayments on contracts, most significantly in Q3.

DOVER CORPORATION

PERFORMANCE MEASURES

(unaudited)(in thousands)



2021 2020

Q1 Q1 Q2 Q3 Q4 FY 2020

BOOKINGS



Engineered Products $528,310 $414,972 $278,373 $381,139 $484,002 $1,558,486

Fueling Solutions 422,668 373,070 311,498 383,902 403,400 1,471,870

Imaging & Identification 293,614 272,604 221,315 266,423 304,756 1,065,098

Pumps & Process Solutions 551,365 369,403 275,872 323,801 365,262 1,334,338

Refrigeration & Food Equipment537,326 355,157 326,400 449,549 379,393 1,510,499

Intra-segment eliminations (863) (375) (460) (926) (425) (2,186)

Total consolidated bookings $2,332,420$1,784,831$1,412,998$1,803,888$1,936,388$6,938,105



BACKLOG



Engineered Products $562,557 $453,867 $378,874 $373,458 $463,701

Fueling Solutions 238,822 211,518 199,305 204,574 201,521

Imaging & Identification 198,556 170,119 168,904 171,158 192,785

Pumps & Process Solutions 539,097 397,969 379,090 361,631 390,238

Refrigeration & Food Equipment677,309 356,133 390,368 472,140 510,498

Intra-segment eliminations (544) (159) (367) (269) (192)

Total consolidated backlog $2,215,797$1,589,447$1,516,174$1,582,692$1,758,551



Bookings Growth Factors



2021

Q1

Organic

Engineered Products 24.8 %

Fueling Solutions 7.3 %

Imaging & Identification 0.1 %

Pumps & Process Solutions 44.0 %

Refrigeration & Food Equipment50.7 %

Total Organic 26.5 %

Acquisitions 1.5 %

Dispositions (0.3)%

Currency translation 3.0 %

Total* 30.7 %



* Totals may be impacted by rounding.

Non-GAAP Measures Definitions

In an effort to provide investors with additional information regarding our results as determined by GAAP, management also discloses non-GAAP information that management believes provides useful information to investors. Adjusted net earnings, adjusted diluted net earnings per share, total segment earnings (EBIT), adjusted EBIT by segment, adjusted EBIT margin by segment, adjusted EBITDA by segment, adjusted EBITDA margin by segment, free cash flow, free cash flow as a percentage of revenue, free cash flow as a percentage of net earnings, and organic revenue growth are not financial measures under GAAP and should not be considered as a substitute for net earnings, diluted net earnings per share, cash flows from operating activities, or revenue as determined in accordance with GAAP, and they may not be comparable to similarly titled measures reported by other companies.

Adjusted net earnings represents net earnings adjusted for the effect of acquisition-related amortization, rightsizing and other costs, and a gain/loss on disposition. We exclude after-tax acquisition-related amortization because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions the Company consummates. We exclude the other items because they occur for reasons that may be unrelated to the Company's commercial performance during the period and/or Management believes they are not indicative of the Company's ongoing operating costs or gains in a given period.

Adjusted diluted net earnings per share represents adjusted net earnings divided by average diluted shares.

Total segment earnings (EBIT) is defined as net earnings before income taxes, net interest expense and corporate expenses. Total segment earnings (EBIT) margin is defined as total segment earnings (EBIT) divided by revenue.

Adjusted EBIT by Segment is defined as net earnings before income taxes, net interest expense, corporate expenses, rightsizing and other costs, and a 2020 gain/loss on disposition. Adjusted EBIT Margin by Segment is defined as adjusted EBIT by segment divided by segment revenue.

Adjusted EBITDA by Segment is defined as adjusted EBIT by segment plus depreciation and amortization, excluding depreciation and amortization included within rightsizing and other costs. Adjusted EBITDA Margin by Segment is defined as adjusted EBITDA by segment divided by segment revenue.

Management believes these measures are useful to investors to better understand the Company's ongoing profitability as it will better reflect the Company's core operating results, offer more transparency and facilitate easier comparability to prior and future periods and to its peers.

Free cash flow represents net cash provided by operating activities minus capital expenditures. Free cash flow as a percentage of revenue equals free cash flow divided by revenue. Free cash flow as a percentage of net earnings equals free cash flow divided by net earnings. Management believes that free cash flow and free cash flow ratios are important measures of operating performance because it provides management and investors a measurement of cash generated from operations that is available for mandatory payment obligations and investment opportunities, such as funding acquisitions, paying dividends, repaying debt and repurchasing our common stock.

Management believes that reporting organic revenue growth, which excludes the impact of foreign currency exchange rates and the impact of acquisitions and dispositions, provides a useful comparison of our revenue and bookings performance and trends between periods.

Performance Measures Definitions

Bookings represent total orders received from customers in the current reporting period. This metric is an important measure of performance and an indicator of revenue order trends.

Organic bookings represent total orders received from customers in the current reporting period excluding the impact of foreign currency exchange rates and the impact of acquisition and dispositions. This metric is an important measure of performance and an indicator of revenue order trends.

Backlog represents an estimate of the total remaining bookings at a point in time for which performance obligations have not yet have satisfied. This metric is useful as it represents the aggregate amount we expect to recognize as revenue in the future.

We use the above operational metrics in monitoring the performance of the business. We believe the operational metrics are useful to investors and other users of our financial information in assessing the performance of our segments.

Investor Contact: Media Contact:

Andrey Galiuk Adrian Sakowicz

Vice President - Corporate DevelopmentVice President - Communications

and Investor Relations (630) 743-5039

(630) 743-5131 asakowicz@dovercorp.com

agaliuk@dovercorp.com

View original content to download multimedia: http://www.prnewswire.com/news-releases/dover-reports-first-quarter-2021-results-raises-2021-annual-guidance-301271925.html

SOURCE Dover