Dover Reports Third Quarter 2021 Results; Raises Full Year Guidance

Published: Oct. 6, 2021 at 12:15 PM AKDT|Updated: Oct. 19, 2021 at 2:30 AM AKDT

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.

(PRNewsfoto/Dover)
(PRNewsfoto/Dover)


Three Months Ended
September 30,


Nine Months Ended
September 30,

($ in millions, except per share data)


2021


2020


%
Change


2021


2020


%
Change

U.S. GAAP

Revenue


$

2,018



$

1,748



15

%


$

5,918



$

4,903



21

%

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
September 30,


Nine Months Ended
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 expenses

412,553



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 income taxes

289,250


323,344


327,519


940,113



213,500


156,829


250,997


621,326


220,408


841,734


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 expense

$

73,806


$

71,519


$

72,911


$

218,236



$

68,752


$

67,603


$

69,489


$

205,844


$

73,207


$

279,051














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 2

(8,720)


(8,571)


(8,700)


(25,991)



(8,411)


(8,451)


(8,810)


(25,672)


(8,695)


(34,367)


Rightsizing and other costs (benefits), pre-tax 3

4,162


10,779


(3,201)


11,740



7,859


16,840


5,848


30,547


20,925


51,472


Rightsizing and other costs (benefits), tax impact 2

(1,031)


(2,597)


902


(2,726)



(1,605)


(3,452)


(1,343)


(6,400)


(4,402)


(10,802)


(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 2

(0.06)


(0.06)


(0.06)


(0.18)



(0.06)


(0.06)


(0.06)


(0.18)


(0.06)


(0.24)


Rightsizing and other costs (benefits), pre-tax 3

0.03


0.07


(0.02)


0.08



0.05


0.12


0.04


0.21


0.14


0.35


Rightsizing and other costs (benefits), tax impact 2

(0.01)


(0.02)


0.01


(0.02)



(0.01)


(0.02)


(0.01)


(0.04)


(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


$

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
(benefits) 1

4,019


4,654


(8,332)


341



361


4,169


2,375


6,905


4,625


11,530


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 (benefits)

682


178


1,291


2,151



264


(527)


99


(164)


6,191


6,027


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) costs

(2,006)


899


487


(620)



3,846


4,691


1,771


10,308


3,128


13,436


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) costs

(38)


2,539


1,520


4,021



704


6,016


(971)


5,749


726


6,475


(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 (benefits) 1

2,715


9,927


(3,450)


9,192



6,668


15,217


4,889


26,774


17,397


44,171


(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 (Non-GAAP)

$

7.45



$

7.50



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 activities1

$

177,184


$

260,073


$

351,329


$

788,586



$

75,863


$

271,809


$

339,247


$

686,919


$

417,891


$

1,104,810


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 percentage of revenue

7.8 %

10.7 %

15.0 %

11.3 %


2.2 %

15.5 %

16.9 %

11.5 %

21.1 %

14.1 %













Free cash flow as a percentage of net earnings

62.7 %

82.5 %

115.0 %

87.7 %


20.2 %

186.6 %

147.2 %

112.4 %

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

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 Equipment

537,326


606,545


540,280


1,684,151



355,157


326,400


449,549


1,131,106


379,393


1,510,499


Intra-segment eliminations

(863)


(498)


(407)


(1,768)



(375)


(460)


(926)


(1,761)


(425)


(2,186)


Total consolidated bookings

$

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


$

6,938,105














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 Equipment

677,309


854,188


964,233




356,133


390,368


472,140



510,498



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 Equipment

19.7

%


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 Investor Relations

Vice President - 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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