PR Newswire | Oct 19, 2021 06:31AM EDT

10/19 05:30 CDT

Dover Reports Third Quarter 2021 Results; Raises Full Year Guidance DOWNERS GROVE, Ill., Oct. 19, 2021

DOWNERS GROVE, Ill., Oct. 19, 2021 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the third quarter ended September 30, 2021.

Three Months Ended Nine Months Ended September 30, September 30,

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

U.S. GAAP

Revenue $2,018 $1,748 15 % $5,918$4,90321 %

Net earnings^ 1 264 200 32 % 761 501 52 %

Diluted EPS 1.81 1.38 31 % 5.24 3.45 52 %



Non-GAAP

Organic revenue change 13 % 17 %

Adjusted net earnings ^2 288 232 24 % 850 599 42 %

Adjusted diluted EPS 1.98 1.60 24 % 5.86 4.12 42 %



^1 Q3 2021 and 2020 net earnings include rightsizing and other (benefits) costs of $(2.3) million and $4.5 million, respectively. Q3 2020 also includes a $0.4 million expense related to the sale of AMS Chino. Year-to-date 2021 and 2020 net earnings include rightsizing and other costs of $9.0 million and $24.1 million, respectively. Year-to-date 2020 also includes a $3.9 million non-cash gain on the sale of AMS Chino.



^2 Q3 2021 and 2020 adjusted net earnings exclude after tax acquisition-related amortization costs of $26.9 million and $26.5 million, respectively, and rightsizing and other (benefits) costs of $(2.3) million and $4.5 million, respectively. Q3 2020 also excludes a $0.4 million expense related to the sale of AMS Chino. Year-to-date 2021 and 2020 adjusted net earnings exclude acquisition-related amortization costs of $80.3 million and $77.8 million, respectively, and rightsizing and other costs of $9.0 million and $24.1 million, respectively. Year-to-date 2020 also excludes a $3.9 million non-cash gain on the sale of AMS Chino.

For the quarter ended September 30, 2021, Dover generated revenue of $2.0 billion, an increase of 15% (+13% organic) compared to the third quarter of the prior year. GAAP net earnings of $264 million increased 32%, and GAAP diluted EPS of $1.81 was up 31%. On an adjusted basis, net earnings of $288 million increased 24% and adjusted diluted EPS of $1.98 was also up 24% versus the comparable quarter of the prior year.

For the nine months ended September 30, 2021, Dover generated revenue of $5.9 billion, an increase of 21% (+17% organic) compared to the first nine months of the prior year. GAAP net earnings of $761 million increased 52%, and GAAP diluted EPS of $5.24 was also up 52% year-over-year. On an adjusted basis, net earnings of $850 million increased 42%, and adjusted diluted EPS of $5.86 was also up 42% versus the comparable period 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, "Our results in the third quarter reflect continued robust demand and solid execution by our teams in an increasingly complex supply chain and labor environment.

"During the quarter we demonstrated the strength of our portfolio with revenue and new order growth across all five of our operating segments. We improved margins year-over-year despite well-advertised supply chain, logistics, and labor availability challenges that adversely impacted shipment timing and margin performance in several businesses, most notably in our Refrigeration and Food Equipment and Engineered Products segments. Overall, our diversified end market exposures, ongoing productivity initiatives and time-tested localized manufacturing and sourcing strategy provide us an advantage as we execute against record backlogs and deliver critical products to our customers.

"We also continued to enhance and invest behind our portfolio. We progressed necessary capacity expansion in several high-growth businesses to meet their prevailing demand forecasts. Recently we completed three highly-complementary bolt-on acquisitions in radio signal intelligence solutions, industrial 3D visualization software and fueling solutions for alternative fuels like LNG and hydrogen. We also agreed to sell Unified Brands, Dover's commercial foodservice business, to enable greater focus on our core growth platforms. Our balance sheet is healthy and we remain disciplined in pursuit of opportunities to further enhance our portfolio.

"As we enter the final quarter of the year, we do not anticipate the challenges from the third quarter to abate and therefore we remain focused on operational execution to deliver against robust demand in this strained operational environment. More positively, our high backlog levels provide beneficial near-term visibility for the remainder of the year and into 2022. As a result, we are raising our full year EPS guidance."

FULL YEAR 2021 GUIDANCE UPDATE:

EPS guidance for full year 2021 was raised to $6.64 to $6.69 ($7.45 to $7.50 on an adjusted basis).

CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its third quarter and year-to-date 2021 results as well as updated 2021 guidance at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Tuesday, October 19, 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 third 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 over $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 65 years, our team of over 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, supply chain constraints and labor shortages that could result in production stoppages, inflation in material input costs and freight logistics, 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 - THIRD QUARTER 2021 DOVER CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)(in thousands, except per share data)



Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

Revenue $2,018,269$1,748,256$5,917,846$4,903,370

Cost of goods and services 1,263,690 1,089,527 3,669,547 3,080,800

Gross profit 754,579 658,729 2,248,299 1,822,570

Selling, general, and administrative expenses412,553 381,831 1,249,593 1,135,512

Operating earnings 342,026 276,898 998,706 687,058

Interest expense 26,433 27,724 79,917 83,703

Interest income (1,466) (960) (3,088) (2,871)

Loss (gain) on sale of a business - 557 - (5,213)

Other income, net (10,460) (1,420) (18,236) (9,887)

Earnings before provision for income taxes 327,519 250,997 940,113 621,326

Provision for income taxes 63,763 50,697 179,080 119,981

Net earnings $263,756 $200,300 $761,033 $501,345



Net earnings per share:

Basic $1.83 $1.39 $5.29 $3.48

Diluted $1.81 $1.38 $5.24 $3.45

Weighted average shares outstanding:

Basic 143,976 144,032 143,895 144,082

Diluted 145,440 145,289 145,220 145,313



Dividends paid per common share $0.50 $0.495 $1.49 $1.475



* Per share data may be impacted by rounding.

DOVER CORPORATION QUARTERLY SEGMENT INFORMATION (unaudited)(in thousands)



2021 2020

Q1 Q2 Q3 Q3 YTD Q1 Q2 Q3 Q3 YTD Q4 FY 2020

REVENUE

Engineered Products $428,127 $442,091 $447,798 $1,318,016$408,160 $342,380 $386,562 $1,137,102$394,175 $1,531,277

Fueling Solutions 389,678 437,042 410,561 1,237,281 359,982 326,495 380,511 1,066,988 409,294 1,476,282

Imaging & Identification 284,328 294,076 292,535 870,939 256,765 227,977 265,690 750,432 287,746 1,038,178

Pumps & Process Solutions 394,377 428,701 438,240 1,261,318 319,536 309,095 347,875 976,506 347,497 1,324,003

Refrigeration & Food Equipment 372,077 430,506 429,425 1,232,008 311,913 293,527 368,395 973,835 342,255 1,316,090

Intra-segment eliminations (686) (740) (290) (1,716) (417) (299) (777) (1,493) (577) (2,070)

Total consolidated revenue $1,867,901$2,031,676$2,018,269$5,917,846$1,655,939$1,499,175$1,748,256$4,903,370$1,780,390$6,683,760



NET EARNINGS

Segment Earnings:

Engineered Products ^1 $68,779 $62,720 $71,717 $203,216 $69,094 $47,702 $64,890 $181,686 $56,481 $238,167

Fueling Solutions 66,480 78,755 65,593 210,828 53,498 47,214 66,601 167,313 69,661 236,974

Imaging & Identification 56,992 60,747 63,419 181,158 51,482 38,046 51,928 141,456 52,017 193,473

Pumps & Process Solutions 123,645 138,632 142,414 404,691 66,079 67,702 89,786 223,567 81,709 305,276

Refrigeration & Food Equipment ^2 38,117 48,971 42,841 129,929 23,529 11,459 40,159 75,147 27,725 102,872

Total segment earnings (EBIT) 354,013 389,825 385,984 1,129,822 263,682 212,123 313,364 789,169 287,593 1,076,762

Corporate expense / other 38,620 40,762 33,498 112,880 24,097 27,311 35,603 87,011 39,651 126,662

Interest expense 26,823 26,661 26,433 79,917 27,268 28,711 27,724 83,703 28,234 111,937

Interest income (680) (942) (1,466) (3,088) (1,183) (728) (960) (2,871) (700) (3,571)

Earnings before provision for income289,250 323,344 327,519 940,113 213,500 156,829 250,997 621,326 220,408 841,734 taxes

Provision for income taxes 56,481 58,836 63,763 179,080 37,221 32,063 50,697 119,981 38,302 158,283

Net earnings $232,769 $264,508 $263,756 $761,033 $176,279 $124,766 $200,300 $501,345 $182,106 $683,451



SEGMENT MARGIN

Engineered Products ^1 16.1 % 14.2 % 16.0 % 15.4 % 16.9 % 13.9 % 16.8 % 16.0 % 14.3 % 15.6 %

Fueling Solutions 17.1 % 18.0 % 16.0 % 17.0 % 14.9 % 14.5 % 17.5 % 15.7 % 17.0 % 16.1 %

Imaging & Identification 20.0 % 20.7 % 21.7 % 20.8 % 20.1 % 16.7 % 19.5 % 18.8 % 18.1 % 18.6 %

Pumps & Process Solutions 31.4 % 32.3 % 32.5 % 32.1 % 20.7 % 21.9 % 25.8 % 22.9 % 23.5 % 23.1 %

Refrigeration & Food Equipment ^2 10.2 % 11.4 % 10.0 % 10.5 % 7.5 % 3.9 % 10.9 % 7.7 % 8.1 % 7.8 %

Total segment operating margin 19.0 % 19.2 % 19.1 % 19.1 % 15.9 % 14.1 % 17.9 % 16.1 % 16.2 % 16.1 %



DEPRECIATION AND AMORTIZATION EXPENSE

Engineered Products $14,047 $11,981 $11,123 $37,151 $10,122 $9,722 $10,717 $30,561 $12,042 $42,603

Fueling Solutions 19,269 19,475 19,920 58,664 18,339 17,968 18,014 54,321 18,482 72,803

Imaging & Identification 9,593 9,294 9,821 28,708 8,769 9,224 9,809 27,802 10,576 38,378

Pumps & Process Solutions 16,926 16,866 17,843 51,635 18,336 17,572 17,206 53,114 19,077 72,191

Refrigeration & Food Equipment 12,096 12,077 12,392 36,565 11,548 11,421 12,081 35,050 11,491 46,541

Corporate 1,875 1,826 1,812 5,513 1,638 1,696 1,662 4,996 1,539 6,535

Total depreciation and amortization $73,806 $71,519 $72,911 $218,236 $68,752 $67,603 $69,489 $205,844 $73,207 $279,051 expense



^1 Q3 2021 includes a $9,078 payment received for previously incurred restructuring costs related to a product line exit.

^2 Q1, Q2, Q3, 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, Q3 YTD 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 Q2 Q3 Q3 YTD Q1 Q2 Q3 Q3 YTD Q4 FY 2020

Net earnings per share:

Basic $1.62 $1.84 $1.83 $5.29 $1.22 $0.87 $1.39 $3.48 $1.27 $4.74

Diluted $1.61 $1.82 $1.81 $5.24 $1.21 $0.86 $1.38 $3.45 $1.25 $4.70



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

Net earnings $232,769$264,508$263,756$761,033$176,279$124,766$200,300$501,345$182,106$683,451



Weighted average shares outstanding:

Basic 143,765 143,941 143,976 143,895 144,259 143,955 144,032 144,082 143,954 144,050

Diluted 144,938 145,118 145,440 145,220 145,782 144,995 145,289 145,313 145,355 145,393



* 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 Q2 Q3 Q3 YTD Q1 Q2 Q3 Q3 YTD Q4 FY 2020

Adjusted net earnings:

Net earnings $232,769$264,508$263,756$761,033$176,279$124,766$200,300$501,345$182,106$683,451

Acquisition-related amortization, pre-tax ^1 35,516 35,162 35,587 106,265 34,062 34,101 35,325 103,488 35,027 138,515

Acquisition-related amortization, tax impact ^(8,720) (8,571) (8,700) (25,991) (8,411) (8,451) (8,810) (25,672) (8,695) (34,367) 2

Rightsizing and other costs (benefits), 4,162 10,779 (3,201) 11,740 7,859 16,840 5,848 30,547 20,925 51,472 pre-tax ^3

Rightsizing and other costs (benefits), tax (1,031) (2,597) 902 (2,726) (1,605) (3,452) (1,343) (6,400) (4,402) (10,802) impact ^2

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

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

Adjusted net earnings $262,696$299,281$288,344$850,321$203,225$164,395$231,742$599,362$224,961$824,323



Adjusted diluted net earnings per share:

Diluted net earnings per share $1.61 $1.82 $1.81 $5.24 $1.21 $0.86 $1.38 $3.45 $1.25 $4.70

Acquisition-related amortization, pre-tax ^1 0.25 0.24 0.24 0.73 0.23 0.24 0.24 0.71 0.24 0.95

Acquisition-related amortization, tax impact ^(0.06) (0.06) (0.06) (0.18) (0.06) (0.06) (0.06) (0.18) (0.06) (0.24) 2

Rightsizing and other costs (benefits), 0.03 0.07 (0.02) 0.08 0.05 0.12 0.04 0.21 0.14 0.35 pre-tax ^3

Rightsizing and other costs (benefits), tax (0.01) (0.02) 0.01 (0.02) (0.01) (0.02) (0.01) (0.04) (0.03) (0.07) impact ^2

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

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

Adjusted diluted net earnings per share $1.81 $2.06 $1.98 $5.86 $1.39 $1.13 $1.60 $4.12 $1.55 $5.67



^1 Includes amortization on acquisition-related intangible assets and inventory step-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 (benefits) include actions taken on employee reductions, facility consolidations and site closures, product line exits, and other asset charges. Q3 2021 includes a $9,078 payment received for previously incurred restructuring costs related to a product line exit in our Engineered Products segment.

^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 Q2 Q3 Q3 YTD Q1 Q2 Q3 Q3 YTD Q4 FY 2020

ADJUSTED SEGMENT EBIT AND ADJUSTED EBITDA

Engineered Products:

Segment earnings (EBIT) $68,779 $62,720 $71,717 $203,216 $69,094 $47,702 $64,890 $181,686 $56,481 $238,167

Rightsizing and other costs 4,019 4,654 (8,332) 341 361 4,169 2,375 6,905 4,625 11,530 (benefits) ^1

Adjusted EBIT - Segment 72,798 67,374 63,385 203,557 69,455 51,871 67,265 188,591 61,106 249,697

Adjusted EBIT % 17.0 % 15.2 % 14.2 % 15.4 % 17.0 % 15.2 % 17.4 % 16.6 % 15.5 % 16.3 %

Adjusted D&A ^2 10,594 9,695 11,123 31,412 10,122 9,722 10,651 30,495 10,193 40,688

Adjusted EBITDA - Segment $83,392 $77,069 $74,508 $234,969 $79,577 $61,593 $77,916 $219,086 $71,299 $290,385

Adjusted EBITDA % 19.5 % 17.4 % 16.6 % 17.8 % 19.5 % 18.0 % 20.2 % 19.3 % 18.1 % 19.0 %

Fueling Solutions:

Segment earnings (EBIT) $66,480 $78,755 $65,593 $210,828 $53,498 $47,214 $66,601 $167,313 $69,661 $236,974

Rightsizing and other costs 58 1,657 1,584 3,299 1,493 868 1,615 3,976 2,727 6,703

Adjusted EBIT - Segment 66,538 80,412 67,177 214,127 54,991 48,082 68,216 171,289 72,388 243,677

Adjusted EBIT % 17.1 % 18.4 % 16.4 % 17.3 % 15.3 % 14.7 % 17.9 % 16.1 % 17.7 % 16.5 %

Adjusted D&A ^2 19,180 19,475 19,335 57,990 18,339 17,783 18,014 54,136 18,225 72,361

Adjusted EBITDA - Segment $85,718 $99,887 $86,512 $272,117 $73,330 $65,865 $86,230 $225,425 $90,613 $316,038

Adjusted EBITDA % 22.0 % 22.9 % 21.1 % 22.0 % 20.4 % 20.2 % 22.7 % 21.1 % 22.1 % 21.4 %

Imaging & Identification:

Segment earnings (EBIT) $56,992 $60,747 $63,419 $181,158 $51,482 $38,046 $51,928 $141,456 $52,017 $193,473

Rightsizing and other costs 682 178 1,291 2,151 264 (527) 99 (164) 6,191 6,027 (benefits)

Adjusted EBIT - Segment 57,674 60,925 64,710 183,309 51,746 37,519 52,027 141,292 58,208 199,500

Adjusted EBIT % 20.3 % 20.7 % 22.1 % 21.0 % 20.2 % 16.5 % 19.6 % 18.8 % 20.2 % 19.2 %

Adjusted D&A ^2 9,218 9,184 9,821 28,223 8,769 9,224 9,809 27,802 10,201 38,003

Adjusted EBITDA - Segment $66,892 $70,109 $74,531 $211,532 $60,515 $46,743 $61,836 $169,094 $68,409 $237,503

Adjusted EBITDA % 23.5 % 23.8 % 25.5 % 24.3 % 23.6 % 20.5 % 23.3 % 22.5 % 23.8 % 22.9 %

Pumps & Process Solutions:

Segment earnings (EBIT) $123,645$138,632$142,414$404,691 $66,079 $67,702 $89,786 $223,567 $81,709 $305,276

Rightsizing and other (benefits) (2,006) 899 487 (620) 3,846 4,691 1,771 10,308 3,128 13,436 costs

Adjusted EBIT - Segment 121,639 139,531 142,901 404,071 69,925 72,393 91,557 233,875 84,837 318,712

Adjusted EBIT % 30.8 % 32.5 % 32.6 % 32.0 % 21.9 % 23.4 % 26.3 % 24.0 % 24.4 % 24.1 %

Adjusted D&A ^2 16,926 16,866 17,206 50,998 16,230 16,816 17,206 50,252 17,565 67,817

Adjusted EBITDA - Segment $138,565$156,397$160,107$455,069 $86,155 $89,209 $108,763$284,127 $102,402$386,529

Adjusted EBITDA % 35.1 % 36.5 % 36.5 % 36.1 % 27.0 % 28.9 % 31.3 % 29.1 % 29.5 % 29.2 %

Refrigeration & Food Equipment:

Segment earnings (EBIT) $38,117 $48,971 $42,841 $129,929 $23,529 $11,459 $40,159 $75,147 $27,725 $102,872

Rightsizing and other (benefits) (38) 2,539 1,520 4,021 704 6,016 (971) 5,749 726 6,475 costs

(Gain) loss on disposition ^3 - - - - (6,551) 781 557 (5,213) - (5,213)

Adjusted EBIT - Segment 38,079 51,510 44,361 133,950 17,682 18,256 39,745 75,683 28,451 104,134

Adjusted EBIT % 10.2 % 12.0 % 10.3 % 10.9 % 5.7 % 6.2 % 10.8 % 7.8 % 8.3 % 7.9 %

Adjusted D&A ^2 11,745 12,077 12,392 36,214 11,548 11,421 12,081 35,050 11,491 46,541

Adjusted EBITDA - Segment $49,824 $63,587 $56,753 $170,164 $29,230 $29,677 $51,826 $110,733 $39,942 $150,675

Adjusted EBITDA % 13.4 % 14.8 % 13.2 % 13.8 % 9.4 % 10.1 % 14.1 % 11.4 % 11.7 % 11.4 %

Total Segments:

Segment earnings (EBIT) ^4 $354,013$389,825$385,984$1,129,822$263,682$212,123$313,364$789,169 $287,593$1,076,762

Rightsizing and other costs 2,715 9,927 (3,450) 9,192 6,668 15,217 4,889 26,774 17,397 44,171 (benefits) ^1

(Gain) loss on disposition ^3 - - - - (6,551) 781 557 (5,213) - (5,213)

Adjusted EBIT - Segment ^5 356,728 399,752 382,534 1,139,014 263,799 228,121 318,810 810,730 304,990 1,115,720

Adjusted EBIT % ^5 19.1 % 19.7 % 19.0 % 19.2 % 15.9 % 15.2 % 18.2 % 16.5 % 17.1 % 16.7 %

Adjusted D&A ^2 67,663 67,297 69,877 204,837 65,008 64,966 67,761 197,735 67,675 265,410

Adjusted EBITDA - Segment ^5 $424,391$467,049$452,411$1,343,851$328,807$293,087$386,571$1,008,465$372,665$1,381,130

Adjusted EBITDA % ^5 22.7 % 23.0 % 22.4 % 22.7 % 19.9 % 19.5 % 22.1 % 20.6 % 20.9 % 20.7 %



^1 Q3 2021 includes a $9,078 payment received for previously incurred restructuring costs related to a product line exit.

^2 Adjusted D&A is depreciation and amortization expense, excluding depreciation and amortization included within rightsizing and other costs.

^3 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.

^4 Refer to Quarterly Segment Information section for reconciliation of total segment earnings (EBIT) to net earnings.

^5 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

Q3 Q3 YTD

Organic

Engineered Products 14.2%13.3 %

Fueling Solutions 3.0 %9.7 %

Imaging & Identification 7.4 %10.0 %

Pumps & Process Solutions 24.6%25.4 %

Refrigeration & Food Equipment 16.0%25.1 %

Total Organic 13.2%16.8 %

Acquisitions 1.1 %1.2 %

Dispositions - %(0.1)%

Currency translation 1.1 %2.8 %

Total* 15.4%20.7 %



* Totals may be impacted by rounding.

2021

Q3 Q3 YTD

Organic

United States 15.7%15.6 %

Other Americas 8.7 %18.9 %

Europe 15.5%18.9 %

Asia 4.6 %19.4 %

Other 0.1 %10.9 %

Total Organic 13.2%16.8 %

Acquisitions 1.1 %1.2 %

Dispositions - %(0.1)%

Currency translation 1.1 %2.8 %

Total* 15.4%20.7 %



* Totals may be impacted by rounding.

Adjusted EPS Guidance Reconciliation

Range

2021 Guidance for Earnings per Share (GAAP) $6.64 $6.69

Acquisition-related amortization, net 0.74

Rightsizing and other costs, net 0.07

2021 Guidance for Adjusted Earnings per Share $7.45 $7.50(Non-GAAP)



Note: The above guidance reflects on going results of Unified Brands business within the Refrigeration & Food Equipment segment and, therefore, excludes the impact of the pending sale which is expected to close in Q4 2021.

DOVER CORPORATION QUARTERLY CASH FLOW AND FREE CASH FLOW (NON-GAAP) (unaudited)(in thousands)



Quarterly Cash Flow



2021 2020

Q1 Q2 Q3 Q3 YTD Q1 Q2 Q3 Q3 YTD Q4 FY 2020

Net Cash Flows Provided By (Used In):

Operating activities$177,184$260,073$351,329$788,586$ 75,863$271,809$339,247$686,919$417,891$1,104,810

Investing activities(29,572) (121,631)(135,439)(286,642)(230,511)(67,763) (64,724) (362,998)(118,381)(481,379)

Financing activities(124,239)(75,949) (74,610) (274,798)280,954 (67,458) (496,832)(283,336)(222,954)(506,290)

Quarterly Free Cash Flow (Non-GAAP)



2021 2020

Q1 Q2 Q3 Q3 YTD Q1 Q2 Q3 Q3 YTD Q4 FY 2020

Cash flow from operating $177,184$260,073$351,329$788,586$75,863$271,809$339,247$686,919$417,891$1,104,810activities^1

Less: Capital expenditures(31,260) (41,971) (47,926) (121,157)(40,172)(38,999) (44,393) (123,564)(42,128) (165,692)

Free cash flow $145,924$218,102$303,403$667,429$35,691$232,810$294,854$563,355$375,763$939,118



Free cash flow as a 7.8 % 10.7 % 15.0 % 11.3 % 2.2 % 15.5 % 16.9 % 11.5 % 21.1 % 14.1 % percentage of revenue



Free cash flow as a 62.7 % 82.5 % 115.0 % 87.7 % 20.2 % 186.6 % 147.2 % 112.4 % 206.3 % 137.4 % percentage of net earnings



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

DOVER CORPORATION PERFORMANCE MEASURES (unaudited)(in thousands)



2021 2020

Q1 Q2 Q3 Q3 YTD Q1 Q2 Q3 Q3 YTD Q4 FY 2020

BOOKINGS



Engineered Products $528,310 $497,200 $502,767 $1,528,277$414,972 $278,373 $381,139 $1,074,484$484,002 $1,558,486

Fueling Solutions 422,668 453,146 467,821 1,343,635 373,070 311,498 383,902 1,068,470 403,400 1,471,870

Imaging & Identification 293,614 299,608 293,782 887,004 272,604 221,315 266,423 760,342 304,756 1,065,098

Pumps & Process Solutions 551,365 521,010 490,581 1,562,956 369,403 275,872 323,801 969,076 365,262 1,334,338

Refrigeration & Food 537,326 606,545 540,280 1,684,151 355,157 326,400 449,549 1,131,106 379,393 1,510,499 Equipment

Intra-segment eliminations(863) (498) (407) (1,768) (375) (460) (926) (1,761) (425) (2,186)

Total consolidated $2,332,420$2,377,011$2,294,824$7,004,255$1,784,831$1,412,998$1,803,888$5,001,717$1,936,388$6,938,105bookings



BACKLOG



Engineered Products $562,557 $613,517 $662,834 $453,867 $378,874 $373,458 $463,701

Fueling Solutions 238,822 256,497 312,176 211,518 199,305 204,574 201,521

Imaging & Identification 198,556 206,125 204,766 170,119 168,904 171,158 192,785

Pumps & Process Solutions 539,097 634,477 682,415 397,969 379,090 361,631 390,238

Refrigeration & Food 677,309 854,188 964,233 356,133 390,368 472,140 510,498 Equipment

Intra-segment eliminations(544) (262) (252) (159) (367) (269) (192)

Total consolidated backlog$2,215,797$2,564,542$2,826,172 $1,589,447$1,516,174$1,582,692 $1,758,551



Bookings Growth Factors



2021

Q3 Q3 YTD

Organic

Engineered Products 30.3%39.4 %

Fueling Solutions 15.8%18.0 %

Imaging & Identification 7.5 %10.4 %

Pumps & Process Solutions 50.1%56.5 %

Refrigeration & Food Equipment19.7%47.8 %

Total Organic 24.8%35.6 %

Acquisitions 1.1 %1.6 %

Dispositions - %(0.1)%

Currency translation 1.3 %2.9 %

Total* 27.2%40.0 %



* 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/benefits, 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/benefits, 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/benefits. 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 Contacts: Media Contact:

Andrey Galiuk Adrian Sakowicz

Vice President - Corporate Development and Vice President - Investor Relations Communications

(630) 743-5131 (630) 743-5039

agaliuk@dovercorp.com asakowicz@dovercorp.com



Jack Dickens

Director - Corporate Development and Investor Relations

(630) 743-2566

jdickens@dovercorp.com

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SOURCE Dover