Dover Reports Second Quarter 2021 Results; Raises Full Year Guidance

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Last update: Jul 20, 2021

DOWNERS GROVE, Ill., July 20, 2021 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the second quarter ended June 30, 2021.

	Three Months Ended June 30,						Six Months Ended June 30,
($ in millions, except per share data)	2021		2020		% Change		2021		2020		% Change
U.S. GAAP
Revenue	$	2,032	$	1,499	36	%	$	3,900	$	3,155	24	%
Net earnings¹	265		125		112	%	497		301		65	%
Diluted EPS	1.82		0.86		112	%	3.43		2.07		66	%

Non-GAAP
Organic revenue change					30	%					19	%
Adjusted net earnings ²	299		164		82	%	562		368		53	%
Adjusted diluted EPS	2.06		1.13		82	%	3.87		2.53		53	%

¹ Q2 2021 and 2020 net earnings include rightsizing and other costs of $8.2 million and $13.4 million, respectively. Q2 2020 also includes a $0.6 million expense related to the sale of AMS Chino. Year-to-date 2021 and 2020 net earnings include rightsizing and other costs of $11.3 million and $19.6 million, respectively. Year-to-date 2020 also includes a $4.4 million non-cash gain on the sale of AMS Chino.

² Q2 2021 and 2020 adjusted net earnings exclude after tax acquisition-related amortization costs of $26.6 million and $25.7 million, respectively, and rightsizing and other costs of $8.2 million and $13.4 million, respectively. Q2 2020 also excludes a $0.6 million expense related to the sale of AMS Chino. Year-to-date 2021 and 2020 adjusted net earnings exclude acquisition-related amortization costs of $53.4 million and $51.3 million, respectively, and rightsizing and other costs of $11.3 million and $19.6 million, respectively. Year-to-date 2020 also excludes a $4.4 million non-cash gain on the sale of AMS Chino.

For the quarter ended June 30, 2021, Dover generated revenue of $2.0 billion, an increase of 36% (+30% organic) compared to the second quarter of the prior year. GAAP net earnings of $265 million increased 112%, and GAAP diluted EPS of $1.82 was also up 112%. On an adjusted basis, net earnings of $299 million increased 82% and adjusted diluted EPS of $2.06 was also up 82% versus the comparable quarter of the prior year.

For the six months ended June 30, 2021, Dover generated revenue of $3.9 billion, an increase of 24% (+19% organic) compared to the first six months of the prior year. GAAP net earnings of $497 million increased by 65%, and GAAP diluted EPS of $3.43 was up 66% year-over-year. On an adjusted basis, net earnings of $562 million increased 53%, and adjusted diluted EPS of $3.87 was also up 53% 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, "We performed well again this quarter as new order activity remained strong and margin improvement continued its solid trajectory across all segments. Our portfolio is performing above pre-pandemic levels in terms of revenue and margin, and our record-high backlog provides visibility into the second half of the year, and in some of our businesses into 2022.

"During the quarter we saw top-line growth across all of our segments, with the largest contributions to the year-over-year increase from pumps and process solutions, fueling solutions, food retail, marking & coding and automotive aftermarket businesses. We are encouraged by the demand growth in compressor components, foodservice, and textile printing, and we expect continued recovery in these markets over the balance of the year.

"Our teams have done a commendable job in the first half navigating logistics bottlenecks, component and labor shortages, and cost inflation to meet end market demand and drive solid margin conversion. Our forecast for the balance of the year reflects the expectation that logistics constraints and input cost inflation will neither deteriorate nor improve materially. Despite this dynamic, we believe that our localized manufacturing and sourcing strategy and diverse business mix give us distinct advantages to win in the current demand environment.

"We also have continued to invest organically in capacity expansions in our high-growth businesses and productivity improvements across our portfolio. Our center-led initiatives are continuing to drive cost synergies across our portfolio companies allowing them to concentrate on winning in the marketplace and driving growth. Acquisition activity remains robust and we recently acquired three attractive bolt-on businesses in single-use pumps, brand protection software and IoT dispensing solutions.

"As we look toward the second half of the year, our robust backlog levels and sustained strong bookings pace give us confidence in our durable top-line trajectory. We also remain confident in our ability to execute operationally to drive portfolio profitability. As a result, 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 15% to 17%. EPS guidance for full year 2021 was raised to $6.45 to $6.55 ($7.30 to $7.40 on an adjusted basis).

CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its second 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, July 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 second 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, 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 - SECOND QUARTER 2021

DOVER CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)(in thousands, except per share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenue	$	2,031,676	$	1,499,175	$	3,899,577	$	3,155,114
Cost of goods and services	1,259,504		947,577		2,405,857		1,991,273
Gross profit	772,172		551,598		1,493,720		1,163,841
Selling, general, and administrative expenses	428,042		366,740		837,040		753,681
Operating earnings	344,130		184,858		656,680		410,160
Interest expense	26,661		28,711		53,484		55,979
Interest income	(942)		(728)		(1,622)		(1,911)
Gain on sale of a business	—		781		—		(5,770)
Other income, net	(4,933)		(735)		(7,776)		(8,467)
Earnings before provision for income taxes	323,344		156,829		612,594		370,329
Provision for income taxes	58,836		32,063		115,317		69,284
Net earnings	$	264,508	$	124,766	$	497,277	$	301,045

Net earnings per share:
Basic	$	1.84	$	0.87	$	3.46	$	2.09
Diluted	$	1.82	$	0.86	$	3.43	$	2.07
Weighted average shares outstanding:
Basic	143,941		143,955		143,854		144,107
Diluted	145,118		144,995		145,040		145,359

Dividends paid per common share	$	0.495	$	0.49	$	0.99	$	0.98

* Per share data may be impacted by rounding.

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

	2021						2020
	Q1		Q2		Q2 YTD		Q1		Q2		Q2 YTD		Q3		Q4		FY 2020
REVENUE
Engineered Products	$	428,127	$	442,091	$	870,218	$	408,160	$	342,380	$	750,540	$	386,562	$	394,175	$	1,531,277
Fueling Solutions	389,678		437,042		826,720		359,982		326,495		686,477		380,511		409,294		1,476,282
Imaging & Identification	284,328		294,076		578,404		256,765		227,977		484,742		265,690		287,746		1,038,178
Pumps & Process Solutions	394,377		428,701		823,078		319,536		309,095		628,631		347,875		347,497		1,324,003
Refrigeration & Food Equipment	372,077		430,506		802,583		311,913		293,527		605,440		368,395		342,255		1,316,090
Intra-segment eliminations	(686)		(740)		(1,426)		(417)		(299)		(716)		(777)		(577)		(2,070)
Total consolidated revenue	$	1,867,901	$	2,031,676	$	3,899,577	$	1,655,939	$	1,499,175	$	3,155,114	$	1,748,256	$	1,780,390	$	6,683,760

NET EARNINGS
Segment Earnings:
Engineered Products	$	68,779	$	62,720	$	131,499	$	69,094	$	47,702	$	116,796	$	64,890	$	56,481	$	238,167
Fueling Solutions	66,480		78,755		145,235		53,498		47,214		100,712		66,601		69,661		236,974
Imaging & Identification	56,992		60,747		117,739		51,482		38,046		89,528		51,928		52,017		193,473
Pumps & Process Solutions	123,645		138,632		262,277		66,079		67,702		133,781		89,786		81,709		305,276
Refrigeration & Food Equipment ¹	38,117		48,971		87,088		23,529		11,459		34,988		40,159		27,725		102,872
Total segment earnings (EBIT)	354,013		389,825		743,838		263,682		212,123		475,805		313,364		287,593		1,076,762
Corporate expense / other	38,620		40,762		79,382		24,097		27,311		51,408		35,603		39,651		126,662
Interest expense	26,823		26,661		53,484		27,268		28,711		55,979		27,724		28,234		111,937
Interest income	(680)		(942)		(1,622)		(1,183)		(728)		(1,911)		(960)		(700)		(3,571)
Earnings before provision for income taxes	289,250		323,344		612,594		213,500		156,829		370,329		250,997		220,408		841,734
Provision for income taxes	56,481		58,836		115,317		37,221		32,063		69,284		50,697		38,302		158,283
Net earnings	$	232,769	$	264,508	$	497,277	$	176,279	$	124,766	$	301,045	$	200,300	$	182,106	$	683,451

SEGMENT MARGIN
Engineered Products	16.1 %		14.2 %		15.1 %		16.9 %		13.9 %		15.6 %		16.8 %		14.3 %		15.6 %
Fueling Solutions	17.1 %		18.0 %		17.6 %		14.9 %		14.5 %		14.7 %		17.5 %		17.0 %		16.1 %
Imaging & Identification	20.0 %		20.7 %		20.4 %		20.1 %		16.7 %		18.5 %		19.5 %		18.1 %		18.6 %
Pumps & Process Solutions	31.4 %		32.3 %		31.9 %		20.7 %		21.9 %		21.3 %		25.8 %		23.5 %		23.1 %
Refrigeration & Food Equipment ¹	10.2 %		11.4 %		10.9 %		7.5 %		3.9 %		5.8 %		10.9 %		8.1 %		7.8 %
Total segment operating margin	19.0 %		19.2 %		19.1 %		15.9 %		14.1 %		15.1 %		17.9 %		16.2 %		16.1 %

DEPRECIATION AND AMORTIZATION EXPENSE
Engineered Products	$	14,047	$	11,981	$	26,028	$	10,122	$	9,722	$	19,844	$	10,717	$	12,042	$	42,603
Fueling Solutions	19,269		19,475		38,744		18,339		17,968		36,307		18,014		18,482		72,803
Imaging & Identification	9,593		9,294		18,887		8,769		9,224		17,993		9,809		10,576		38,378
Pumps & Process Solutions	16,926		16,866		33,792		18,336		17,572		35,908		17,206		19,077		72,191
Refrigeration & Food Equipment	12,096		12,077		24,173		11,548		11,421		22,969		12,081		11,491		46,541
Corporate	1,875		1,826		3,701		1,638		1,696		3,334		1,662		1,539		6,535
Total depreciation and amortization expense	$	73,806	$	71,519	$	145,325	$	68,752	$	67,603	$	136,355	$	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		Q2		Q2 YTD		Q1		Q2		Q2 YTD		Q3		Q4		FY 2020
Net earnings per share:
Basic	$	1.62	$	1.84	$	3.46	$	1.22	$	0.87	$	2.09	$	1.39	$	1.27	$	4.74
Diluted	$	1.61	$	1.82	$	3.43	$	1.21	$	0.86	$	2.07	$	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	$	264,508	$	497,277	$	176,279	$	124,766	$	301,045	$	200,300	$	182,106	$	683,451

Weighted average shares outstanding:
Basic	143,765		143,941		143,854		144,259		143,955		144,107		144,032		143,954		144,050
Diluted	144,938		145,118		145,040		145,782		144,995		145,359		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		Q2		Q2 YTD		Q1		Q2		Q2 YTD		Q3		Q4		FY 2020
Adjusted net earnings:
Net earnings	$	232,769	$	264,508	$	497,277	$	176,279	$	124,766	$	301,045	$	200,300	$	182,106	$	683,451
Acquisition-related amortization, pre-tax ¹	35,516		35,162		70,678		34,062		34,101		68,163		35,325		35,027		138,515
Acquisition-related amortization, tax impact ²	(8,720)		(8,571)		(17,291)		(8,411)		(8,451)		(16,862)		(8,810)		(8,695)		(34,367)
Rightsizing and other costs, pre-tax ³	4,162		10,779		14,941		7,859		16,840		24,699		5,848		20,925		51,472
Rightsizing and other costs, tax impact ²	(1,031)		(2,597)		(3,628)		(1,605)		(3,452)		(5,057)		(1,343)		(4,402)		(10,802)
(Gain) loss on disposition, pre-tax ⁴	—		—		—		(6,551)		781		(5,770)		557		—		(5,213)
(Gain) loss on disposition, tax-impact ²	—		—		—		1,592		(190)		1,402		(135)		—		1,267
Adjusted net earnings	$	262,696	$	299,281	$	561,977	$	203,225	$	164,395	$	367,620	$	231,742	$	224,961	$	824,323

Adjusted diluted net earnings per share:
Diluted net earnings per share	$	1.61	$	1.82	$	3.43	$	1.21	$	0.86	$	2.07	$	1.38	$	1.25	$	4.70
Acquisition-related amortization, pre-tax ¹	0.25		0.24		0.49		0.23		0.24		0.47		0.24		0.24		0.95
Acquisition-related amortization, tax impact ²	(0.06)		(0.06)		(0.12)		(0.06)		(0.06)		(0.12)		(0.06)		(0.06)		(0.24)
Rightsizing and other costs, pre-tax ³	0.03		0.07		0.10		0.05		0.12		0.17		0.04		0.14		0.35
Rightsizing and other costs, tax impact ²	(0.01)		(0.02)		(0.03)		(0.01)		(0.02)		(0.03)		(0.01)		(0.03)		(0.07)
(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	$	3.87	$	1.39	$	1.13	$	2.53	$	1.60	$	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 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		Q2		Q2 YTD		Q1		Q2		Q2 YTD		Q3		Q4		FY 2020
ADJUSTED SEGMENT EBIT AND ADJUSTED EBITDA
Engineered Products:
Segment earnings (EBIT)	$	68,779	$	62,720	$	131,499	$	69,094	$	47,702	$	116,796	$	64,890	$	56,481	$	238,167
Rightsizing and other costs	4,019		4,654		8,673		361		4,169		4,530		2,375		4,625		11,530
Adjusted EBIT - Segment	72,798		67,374		140,172		69,455		51,871		121,326		67,265		61,106		249,697
Adjusted EBIT %	17.0 %		15.2 %		16.1 %		17.0 %		15.2 %		16.2 %		17.4 %		15.5 %		16.3 %
Adjusted D&A ¹	10,594		9,695		20,289		10,122		9,722		19,844		10,651		10,193		40,688
Adjusted EBITDA - Segment	$	83,392	$	77,069	$	160,461	$	79,577	$	61,593	$	141,170	$	77,916	$	71,299	$	290,385
Adjusted EBITDA %	19.5 %		17.4 %		18.4 %		19.5 %		18.0 %		18.8 %		20.2 %		18.1 %		19.0 %
Fueling Solutions:
Segment earnings (EBIT)	$	66,480	$	78,755	$	145,235	$	53,498	$	47,214	$	100,712	$	66,601	$	69,661	$	236,974
Rightsizing and other costs	58		1,657		1,715		1,493		868		2,361		1,615		2,727		6,703
Adjusted EBIT - Segment	66,538		80,412		146,950		54,991		48,082		103,073		68,216		72,388		243,677
Adjusted EBIT %	17.1 %		18.4 %		17.8 %		15.3 %		14.7 %		15.0 %		17.9 %		17.7 %		16.5 %
Adjusted D&A ¹	19,180		19,475		38,655		18,339		17,783		36,122		18,014		18,225		72,361
Adjusted EBITDA - Segment	$	85,718	$	99,887	$	185,605	$	73,330	$	65,865	$	139,195	$	86,230	$	90,613	$	316,038
Adjusted EBITDA %	22.0 %		22.9 %		22.5 %		20.4 %		20.2 %		20.3 %		22.7 %		22.1 %		21.4 %
Imaging & Identification:
Segment earnings (EBIT)	$	56,992	$	60,747	$	117,739	$	51,482	$	38,046	$	89,528	$	51,928	$	52,017	$	193,473
Rightsizing and other costs	682		178		860		264		(527)		(263)		99		6,191		6,027
Adjusted EBIT - Segment	57,674		60,925		118,599		51,746		37,519		89,265		52,027		58,208		199,500
Adjusted EBIT %	20.3 %		20.7 %		20.5 %		20.2 %		16.5 %		18.4 %		19.6 %		20.2 %		19.2 %
Adjusted D&A ¹	9,218		9,184		18,402		8,769		9,224		17,993		9,809		10,201		38,003
Adjusted EBITDA - Segment	$	66,892	$	70,109	$	137,001	$	60,515	$	46,743	$	107,258	$	61,836	$	68,409	$	237,503
Adjusted EBITDA %	23.5 %		23.8 %		23.7 %		23.6 %		20.5 %		22.1 %		23.3 %		23.8 %		22.9 %
Pumps & Process Solutions:
Segment earnings (EBIT)	$	123,645	$	138,632	$	262,277	$	66,079	$	67,702	$	133,781	$	89,786	$	81,709	$	305,276
Rightsizing and other (benefits) costs	(2,006)		899		(1,107)		3,846		4,691		8,537		1,771		3,128		13,436
Adjusted EBIT - Segment	121,639		139,531		261,170		69,925		72,393		142,318		91,557		84,837		318,712
Adjusted EBIT %	30.8 %		32.5 %		31.7 %		21.9 %		23.4 %		22.6 %		26.3 %		24.4 %		24.1 %
Adjusted D&A ¹	16,926		16,866		33,792		16,230		16,816		33,046		17,206		17,565		67,817
Adjusted EBITDA - Segment	$	138,565	$	156,397	$	294,962	$	86,155	$	89,209	$	175,364	$	108,763	$	102,402	$	386,529
Adjusted EBITDA %	35.1 %		36.5 %		35.8 %		27.0 %		28.9 %		27.9 %		31.3 %		29.5 %		29.2 %
Refrigeration & Food Equipment:
Segment earnings (EBIT)	$	38,117	$	48,971	$	87,088	$	23,529	$	11,459	$	34,988	$	40,159	$	27,725	$	102,872
Rightsizing and other (benefits) costs	(38)		2,539		2,501		704		6,016		6,720		(971)		726		6,475
(Gain) loss on disposition ²	—		—		—		(6,551)		781		(5,770)		557		—		(5,213)
Adjusted EBIT - Segment	38,079		51,510		89,589		17,682		18,256		35,938		39,745		28,451		104,134
Adjusted EBIT %	10.2 %		12.0 %		11.2 %		5.7 %		6.2 %		5.9 %		10.8 %		8.3 %		7.9 %
Adjusted D&A ¹	11,745		12,077		23,822		11,548		11,421		22,969		12,081		11,491		46,541
Adjusted EBITDA - Segment	$	49,824	$	63,587	$	113,411	$	29,230	$	29,677	$	58,907	$	51,826	$	39,942	$	150,675
Adjusted EBITDA %	13.4 %		14.8 %		14.1 %		9.4 %		10.1 %		9.7 %		14.1 %		11.7 %		11.4 %
Total Segments:
Segment earnings (EBIT) ³	$	354,013	$	389,825	$	743,838	$	263,682	$	212,123	$	475,805	$	313,364	$	287,593	$	1,076,762
Rightsizing and other costs	2,715		9,927		12,642		6,668		15,217		21,885		4,889		17,397		44,171
(Gain) loss on disposition ²	—		—		—		(6,551)		781		(5,770)		557		—		(5,213)
Adjusted EBIT - Segment ⁴	356,728		399,752		756,480		263,799		228,121		491,920		318,810		304,990		1,115,720
Adjusted EBIT % ⁴	19.1 %		19.7 %		19.4 %		15.9 %		15.2 %		15.6 %		18.2 %		17.1 %		16.7 %
Adjusted D&A ¹	67,663		67,297		134,960		65,008		64,966		129,974		67,761		67,675		265,410
Adjusted EBITDA - Segment ⁴	$	424,391	$	467,049	$	891,440	$	328,807	$	293,087	$	621,894	$	386,571	$	372,665	$	1,381,130
Adjusted EBITDA % ⁴	22.7 %		23.0 %		22.9 %		19.9 %		19.5 %		19.7 %		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
	Q2		Q2 YTD
Organic
Engineered Products	25.4	%	12.9	%
Fueling Solutions	24.9	%	13.4	%
Imaging & Identification	20.2	%	11.4	%
Pumps & Process Solutions	33.6	%	25.8	%
Refrigeration & Food Equipment	43.5	%	30.5	%
Total Organic	29.7	%	18.7	%
Acquisitions	1.3	%	1.3	%
Dispositions	—	%	(0.2)	%
Currency translation	4.5	%	3.8	%
Total*	35.5	%	23.6	%

* Totals may be impacted by rounding.

	2021
	Q2
Organic
United States	25.0	%
Other Americas	49.6	%
Europe	29.8	%
Asia	37.6	%
Other	43.0	%
Total Organic	29.7	%
Acquisitions	1.3	%
Dispositions	—	%
Currency translation	4.5	%
Total*	35.5	%

* Totals may be impacted by rounding.

Adjusted EPS Guidance Reconciliation
	Range
2021 Guidance for Earnings per Share (GAAP)	$	6.45		$	6.55
Acquisition-related amortization, net			0.74
Rightsizing and other costs, net			0.11
2021 Guidance for Adjusted Earnings per Share (Non-GAAP)	$	7.30		$	7.40

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

Quarterly Cash Flow
	2021						2020
	Q1		Q2		Q2 YTD		Q1		Q2		Q2 YTD		Q3		Q4		FY 2020
Net Cash Flows Provided By (Used In):
Operating activities	$	177,184	$	260,073	$	437,257	$	75,863	$	271,809	$	347,672	$	339,247	$	417,891	$	1,104,810
Investing activities	(29,572)		(121,631)		(151,203)		(230,511)		(67,763)		(298,274)		(64,724)		(118,381)		(481,379)
Financing activities	(124,239)		(75,949)		(200,188)		280,954		(67,458)		213,496		(496,832)		(222,954)		(506,290)

Quarterly Free Cash Flow (Non-GAAP)
	2021						2020
	Q1		Q2		Q2 YTD		Q1		Q2		Q2 YTD		Q3		Q4		FY 2020
Cash flow from operating activities¹	$	177,184	$	260,073	$	437,257	$	75,863	$	271,809	$	347,672	$	339,247	$	417,891	$	1,104,810
Less: Capital expenditures	(31,260)		(41,971)		(73,231)		(40,172)		(38,999)		(79,171)		(44,393)		(42,128)		(165,692)
Free cash flow	$	145,924	$	218,102	$	364,026	$	35,691	$	232,810	$	268,501	$	294,854	$	375,763	$	939,118

Free cash flow as a percentage of revenue	7.8 %		10.7 %		9.3 %		2.2 %		15.5 %		8.5 %		16.9 %		21.1 %		14.1 %

Free cash flow as a percentage of net earnings	62.7 %		82.5 %		73.2 %		20.2 %		186.6 %		89.2 %		147.2 %		206.3 %		137.4 %

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		Q2 YTD		Q1		Q2		Q2 YTD		Q3		Q4		FY 2020
BOOKINGS

Engineered Products	$	528,310	$	497,200	$	1,025,510	$	414,972	$	278,373	$	693,345	$	381,139	$	484,002	$	1,558,486
Fueling Solutions	422,668		453,146		875,814		373,070		311,498		684,568		383,902		403,400		1,471,870
Imaging & Identification	293,614		299,608		593,222		272,604		221,315		493,919		266,423		304,756		1,065,098
Pumps & Process Solutions	551,365		521,010		1,072,375		369,403		275,872		645,275		323,801		365,262		1,334,338
Refrigeration & Food Equipment	537,326		606,545		1,143,871		355,157		326,400		681,557		449,549		379,393		1,510,499
Intra-segment eliminations	(863)		(498)		(1,361)		(375)		(460)		(835)		(926)		(425)		(2,186)
Total consolidated bookings	$	2,332,420	$	2,377,011	$	4,709,431	$	1,784,831	$	1,412,998	$	3,197,829	$	1,803,888	$	1,936,388	$	6,938,105

BACKLOG

Engineered Products	$	562,557	$	613,517			$	453,867	$	378,874			$	373,458	$	463,701
Fueling Solutions	238,822		256,497				211,518		199,305				204,574		201,521
Imaging & Identification	198,556		206,125				170,119		168,904				171,158		192,785
Pumps & Process Solutions	539,097		634,477				397,969		379,090				361,631		390,238
Refrigeration & Food Equipment	677,309		854,188				356,133		390,368				472,140		510,498
Intra-segment eliminations	(544)		(262)				(159)		(367)				(269)		(192)
Total consolidated backlog	$	2,215,797	$	2,564,542			$	1,589,447	$	1,516,174			$	1,582,692	$	1,758,551

Bookings Growth Factors
	2021
	Q2		Q2 YTD
Organic
Engineered Products	73.5	%	44.4	%
Fueling Solutions	33.5	%	19.2	%
Imaging & Identification	26.6	%	12.0	%
Pumps & Process Solutions	81.7	%	59.7	%
Refrigeration & Food Equipment	83.1	%	66.2	%
Total Organic	61.2	%	41.7	%
Acquisitions	2.0	%	1.8	%
Dispositions	—	%	(0.2)	%
Currency translation	5.0	%	4.0	%
Total*	68.2	%	47.3	%

* 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 Development		Vice President - Communications
and Investor Relations		(630) 743-5039
(630) 743-5131		asakowicz@dovercorp.com
agaliuk@dovercorp.com

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SOURCE Dover